Everyone's performance lead to shareholder dissatisfaction, Chen a boat was shouted class

The performance of Nyse:renn has obviously made shareholders dissatisfied, and some investors have even shouted "dismissed" requests to Chen a boat at an analyst meeting.

Renren's fourth-quarter net revenue was 17.2 million U.S. dollars, down 38.5% from a year earlier, and a net profit of $35 million, down 65% from a year earlier, according to the 2014 quarterly report released yesterday (March 19).

You might say that it's not still making money, though it's going down? But you know, everyone early not rely on main to make money.

Since 2011, everyone company's main business is weak, continuous operating loss. The company achieved several profits in 2014, mainly from the following:

The return on short-term investment was $139.3 million trillion, which was $56 million in 2013, mainly from securities trading.

Long-term equity investment income of 49 million U.S. dollars, 2013 to 20.3 million U.S. dollars, mainly from Japan Macro Opportunities Offshore, LP's investment income.

2014 Sub-business spin-off generated by 500,000 U.S. dollars for the 56 network business spin-off one-time benefit. The gain was $132.7 million in 2013.

After deducting the income tax, the sale of long-term equity investment proceeds to 57 million U.S. dollars, which is the one-time gain of selling the residual stock of glutinous rice net.

In 2014, everyone's operating loss was 159.4 million dollars.

After the earnings release, executives such as chairman and CEO of Chen, COO and CFO Huang attended the subsequent earnings call, interpreting the earnings points and answering analyst questions.

Among them, a personal investor identity background, called Jerry Jeffuri people to Chen a boat fired directly:

Mr. Chen (a boat) Sir, I can understand that investment is risky, but over the past few years, people have been making excuses for one quarter after another, wasting one more chance to become China's leading social network, and you're still busy making excuses when your competitors are successful in moving the mobile side. You said that in contrast to social network advertising, customers prefer online video ads, but, you sell your online video business, you also sold a group buying business, the original glutinous rice still has potential, you except for excuses simply did not explain why sold glutinous rice. Quarter after quarter, year after year, Chen (a boat) Sir, should you take the responsibility to resign?

Chen one boat responded as follows:

As an observer of the Chinese Internet industry, I think China's Internet market competition is different from the United States, we and the United States and Facebook faces a completely different competition, despite our high user usage, but with the rise of mobile social software micro-letter, our competitive situation has become difficult.

In addition, the things you mentioned about our selling video and group buying business, we found that under our management video is very difficult to realize, the main reason is 56 network focus on the development of UGC (user-created content), although at random in the development of the 56 network of everyone, but compared to other video sites to realize it is not easy, One is that other video sites are bigger than 56 nets, and the second is that they spend a lot of money to buy the popular content of the "card House", the content of these video site procurement costs as much as hundreds of millions of U.S. dollars, we can not compete with it. Although we also have a lot of quality content, but advertisers are inclined to be in these hit content to invest money, this is our 56 network video business is not ideal for the current situation.

As for the group buying business, you are right, this is a very fast growing business for us, but on the other hand, this is also a very obvious area of network effect, when we quit, glutinous rice is the industry's third-largest group buying site, and the top two compared to glutinous rice has more money to develop, they have in many cities to form a monopolistic position , so we feel it is a right choice to quit buying business and sell it to Baidu. The development of glutinous rice is more favorable, but, in time under the management of Baidu, glutinous rice is still the third place, compared to the first two still have a small gap.

So, what I want to say is that the industry environment in China is different from that in the United States, and I think the ideas you just mentioned are mainly based on the United States, hoping to understand where we are.

I wonder if Mr. Jefferies's answer to Chen's boat is satisfactory.
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