Millet and Shun for the capital joint announced, Millet and the capital with 1.8 billion yuan strategic stake in Archie Art

Tiger Sniff: Yesterday (November 19), Millet and shun for the capital jointly announced, Millet and the capital to 1.8 billion yuan (300 million U.S. dollars) strategic stake in Archie Art, the investment is millet since its inception the largest single investment.

The millet system--and further--the LEI has extended its new tentacles.

"New Fortune" magazine recently published a cover article "Lei department", the Lei Angel investment, Jinshan software, millet layout was presented. The tiger sniffed the manuscript and edited it.

Angel Lei

October 2007 Jinshan Software listing to the July 2011 return to Jinshan in this period, Lei transformation all day to make investors, his style homeopathy, as the fund's name. Shun for the fund was established in 2011, the first phase of the fund of 225 million U.S. dollars, two-phase funds collected April 11, 2014 completed, the scale of 315 million U.S. dollars.

During this period, Lei command shun for the fund to invest in all customers sincere products, play, excellent as technology, Lakara, UC, street Network, the Great Wall will and see more than a number of companies. The vast number of companies are largely among the three promising areas that Lei 5 years ago.

The first is the mobile internet field, "Mobile internet size is more than 10 times times the size of the PC Internet," UC gifted, see more science and technology, 7k7k chat, the United States, too beautiful, I Speak, YY, work together, Wisdom Valley, Kaka Mobile, good news, thunder and Skynet belong to this area. " The second is E-commerce, Lei investment companies include excellence nets, Shang nets, where customers prudential products, Amoy, and I have a network. The third is the Internet community, including the carefree network, the music community, playing games Network (the original "Gathering Time"), green People's network, Tech Web, the Great Wall, Lei Feng and the street network.

In addition, Lei in other areas have also dabbled in, investment projects have Lakara, can cow, good doctor, Zealer, Jinshan more benefits, as well as the recent investment in the building block box, into the Peer-to-peer. October 2014, it also through the Beijing-Wally participation in listed companies Huayi film and television targeted additional, investment 50 million yuan.

Lei in the investment adhere to the "do not invest" and "only vote for people" two major principles. He says the investment is only for people who do not vote, and only for acquaintances and acquaintances. "I don't care what your project is, I think in China, in today's China's entrepreneurial market, the lack of executive power is not an idea." "such as Lakara Suntaujan, UC gifted Yu, good Doctor Wang are Lei friends, where the aging of the excellent products is its old colleagues, street Network Xiujuan is its alumni.

In addition to the listing of the gathering era, UC gifted as another Lei investment victory case. Alibaba invested in UC two times in March 2013 and December, with a holding ratio of 66%. June 11, 2014, UC Ali was acquired after the valuation of up to 5 billion U.S. dollars, far more than the year when Baidu bought 91 mobile phone aides 1.9 billion U.S. dollars.

Of course, Lei's men had their own failings. 2012 Shun for the fund investment footwear Consumer Lok Tao, in the D round of financing with Germany and the capital jointly invested 30 million U.S. dollars; April 2014 Amoy was Guangdong Crown Peng Shoes and a Hong Kong investment agency acquisition, the price is only tens of millions of yuan.

Jinshan Department: Revival and hidden worries

September 2010, Lei returned as chairman of Jinshan software. At this time of Lei, Nirvana Rebirth, October 2007 from the stage fade from Jinshan, transformed into angel investors, has invested more than 20 mobile internet, e-commerce and internet community companies. July 5, 2011, begged Baijun abdication, Lei formally took over, began to use their own mobile internet sentiment to transform Jinshan. At the same time, rushed to the introduction of Tencent Holdings (00700. HK) is the first major shareholder of Jinshan Software.

Under the leadership of Lei, Jinshan Software's complex business unit, eventually integrated into the "3+1" Structure, "3" refers to Jinshan Office (WPS) + Jinshan game (West Mountain) + Jinshan Network (KIS, now for the cheetah Move), "1" for Jin Shanyun. July 2012, Jinshan WPS Office subsidiary closely follow the Jinshan network and West Hill home, the completion of MBO, Lei gladly announced the "3+1" strategy, that is, three major existing lines of business plus a strategic new line of business has been formed. At the same time, the management of the four subsidiaries also finalized, Fu Helm Jinshan network, Zhanghongjiang for Jinshan Software CEO and responsible for Jin Shanyun, Zou as the West Hill CEO, Geck responsible for WPS.

--Reggie Fu rate Cheetah mobile breakthrough

Follow Zhou all the way through 3721 and 360 Fu, was "Zhou Lord" under the best product Manager, the Internet products have a keen sense of smell and decisive execution, and "master" after a break into Jingwei China, and then set up a cattle network. October 2010 spin-off of the Golden Hill security, with its 18.75% shares for stock Exchange can be cattle network, set up Jinshan network.

For Lei, Jinshan Security and the combination of cattle network, the most critical is to obtain FU this member Reggie. In the growth of the cheetah, Fu seize the opportunity to resist foreign enemies, transforms, wonderful colorful. With the help of the 3Q war with Tencent, and then get Tencent or the support of the dark; catch Sogou and search merge, Qihoo (Qihu.nyse) Tired of the opportunity to respond to new Sogou, get the development of time window; With Bat Alliance, the key moment to get the giant instrumental.

Facts have proved that "yield" FU is the most wise decision of Lei, and Ren left is called "Zhou Lord" Zhou the most should not make mistakes. When the merger can be cattle, Jinshan network (listed after the name of "Cheetah Mobile", hereinafter called "Cheetah Mobile") valuation of about 500 million yuan. By October 23, 2014, the Cheetah's mobile market value of 2.43 billion U.S. dollars, converted exchange rate after 30 times times. On August 11, 2014, the Cheetah's mobile market value reached a peak of $3.918 billion trillion, making it nearly 50 times times the maximum value added.

--Establishing a strategic partnership with bat

Jinshan growth process, there has been no lack of support of the Giants. Back in 2005, Microsoft defeated by the Kingsoft software, get Lenovo's "injection of blood" just survived. Then, all the way to get bat, millet helping. The Cheetah Mobile prospectus shows that 25%, 19% and 14% of its revenues in 2013 were from Alibaba, Baidu and Tencent. This contrasts with the odd tigers that make enemies. As a strategic partner of bat, Cheetahs provide value-added services to bat, such as malicious Web site filtering or security software modules, in exchange for referral traffic, thereby increasing the exposure rate of its app.

2011, Jinshan Software received from Tencent's marketing revenue of 7.01 million yuan, 2012 years ago 8 months to 38.03 million yuan; September 27, 2012, the two sides will increase the 2012 marketing costs to 120 million yuan, 2013 limit of 200 million yuan. According to the December 27, 2013 Tencent and Cheetah Jinshan reached a strategic cooperation agreement, Tencent to the Cheetah 2014 and 2015, the promotion cost of the upper limit of 22 million and 33 million yuan respectively, This ceiling was revised in the supplementary agreement of July 31, 2014: The maximum promotional costs for 2014 and 2015 were revised to 100 million and 105 million.

Tencent has a stake in Kingsoft software and Cheetah Mobile. June 25, 2013, Jinshan Software Bulletin, and Tencent jointly increase the cheetah Mobile, Tencent spent 46.98 million U.S. dollars, Jinshan $5.22 million, the acquisition of Jinshan Network B series Preferred shares, the new shares accounted for the total share capital after the acquisition of 10%, of which Jinshan software accounted for 1%, Tencent accounted for 9%. So far, Tencent holds the 7.77%,b series preferred shares of the Cheetah Mobile common 1.22%,a Series Preferred stock 9%, a total of 17.99%. Before the Tencent investment cheetah moves, the Gold Mountain software to the Cheetah movement's shareholding ratio is 72.22%, after Tencent invests, Jinshan Software's shareholding ratio reduces to 54.9%. At this point, the cheetah mobile valued more than 500 million dollars.

April 2014, Baidu, Kingsoft software, millet and Cheetah Mobile jointly signed shares subscription agreement; Kingsoft software will be the highest subscription of 10 million U.S. dollars of shares, Baidu will be the highest subscription of 20 million U.S. dollars of shares, Millet investment company Xiaomi Ventures will be the highest subscription of 20 million U.S. dollars in shares , becoming the cornerstone investor of the independent spin-off of the Cheetah Mobile IPO, has further strengthened the existing strategic cooperative partnership.

--Jinshan software stock price "halved" behind

Jinshan Software stock set a record high of HK $33.5/share, is on April 2, 2014, this day is just the cheetah move the first announcement of the split-listing of the days before. October 14, 2014, Jinshan software shares under the 17.74 Hong Kong dollar/unit, followed by October 23, its earnings warning, the share price of the next 16.88 Hong Kong dollar/share. The price was halved, and the market questioned the second round of the Kingsoft software reform.

First, the mobile strategy is in full swing and the investment period drags on net profit margin. In 2011-2013, the net profit margin of Kingsoft was maintained at more than 32%, and by the middle of 2014, its net profit margin fell to 26.62%. At the same time, research and development costs and marketing costs soared. In particular, the proportion of marketing costs to total revenue soared, from 12.33% in 2011 to 22.69% in the middle of 2014. The cost of research and development has remained stable at nearly 30% per cent. Ke, vice president of Western Hills, said that 2014 alone in the research and development of funds will be spent billion. In the October 23 profit warning, Jinshan Software said that because of research and development costs, marketing costs, options costs significantly increased, net profit fell sharply. The next day, Jinshan software shares fell 11.92%, the capital market is always to the lower EPS to vote with their feet.

Second, the nature of the Cheetah Movement is the spin-off effect of the listing. Cheetah Mobile Spin-off After the listing, Jinshan software on the Cheetah Mobile still has control, but the shareholding ratio from 54% to 47%, is still a consolidated report. On the surface, in terms of revenues and profits, Jinshan software has not been adversely affected by the break-up, and has thus gained development capital and increased market capitalisation. But from the perspective of P/E, there may be different interpretations. Jinshan software will rise the best Cheetah Mobile spin-off listing, the equivalent of the high PE business split out, and left the low PE business, then the parent company's PE will also pull low. Reflected in the share price, is naturally the cheetah mobile share price rose, while Jinshan software stock fell. Notably, on the day before the first announcement about the cheetah's move to split the listing, April 2, 2014, Jinshan Software hit a record high of HK $33.5/shares, and then fell all the way.

Word, the report combines the earnings and net profits of the cheetah's movements, not its P/E. The cheetah moves at an annual rate of over 100%, and the network game and WPS steady growth, growth rate of less than 40%, then before and after the break-up, the valuation of Jinshan software, perhaps 50 times times PE and 20 times times PE difference, unless in the existing department of Jinshan software, and cultivate a new "cheetah" stand out, Jinshan's share price can regain momentum.

Cheetah Mobile spin-off after listing, Jinshan software hands still have Xishan Habitat, WPS and Jin Shanyun three major business. has been proven capable of a good work of the West Hill, with Millet, cheetah and Thunderbolt Three promotion channels, however, "12 of the Hand tour has failed" worries lingering. WPS relies on government orders and free strategy to occupy the mobile side, which shakes Microsoft's monopoly position, but the iOS version of the decision-making error, resulting in missed the best development period. Jin Shanyun stripped Jinshan Quick disk personal version, focus on the enterprise market, 2014 into the game cloud performance dazzling, however, Jin Shanyun still belong to the stage of burning money, the future pattern remains to be seen.

The most critical controversy lies with the helm. If said Kingsoft Software's gorgeous turn lies in the Lei charm, the cheetah moves the breakthrough by the Fu color promotion, but along the established mobile Internet strategy advance WPS, the West Mountain Mountain, the Jin Shanyun, appears to be lack a banner more vivid leader.

-Jin Shanyun, where to go?

January 2012, Kingsoft Software split Jinshan fast-disk business, set up an independent subsidiary Jin Shanyun. Jinshan Fast Disk since the launch of 2010 has been more than 3 years, the official data show, as of April 2014, Jinshan Fast disk personal version of the user has exceeded 45 million, the number of active users reached millions of. At this point, the Jin Shanyun includes two parts: the Jin Shanyun storage platform and the Jinshan fast disk.

Inside the Jinshan, Jin Shanyun is also regarded as a start-up company, external financing. November 30, 2012, Jinshan software and millet technology to reach a stake sale agreement, Jinshan subsidiary Jin Shanyun, will be 1.82 million U.S. dollars price will be 9.87% Shares sold to Millet (0.02 U.S. dollars per share to millet distribution and sale of 91 million shares, 2012 valuation of 18.4397 million U.S. dollars), after the completion of the transaction, Jinshan, Millet and Jin Shanyun management, respectively, holding Jin Shanyun 72.56%, 9.87% and 17.57% of the shares.

August 13, 2013, Jin Shanyun announced the completion of the 20 million U.S. dollar a round of financing, by Milner (Yuri Milner) funds from the investment. Mr Milner is a well-known Russian investor, in charge of DST and another fund. DST, which focuses on late-stage investments, has invested in Facebook three times and has invested in millet technology, which is more focused on early investment and has invested in Jingdong Mall, Jin Shanyun. However, the Fund's shareholding ratio has not been disclosed, Jin SHANYUN ownership structure will not change fundamentally, Jinshan software is still maintained Jin Shanyun equity control.

At present, Jin Shanyun is still in the stage of burning money. 2012 years ago three quarters, Jin Shanyun net loss of about 18 million yuan, 2013 years loss 61 million yuan. At the beginning of 2013 Jin Shanyun President of the Wang Yulin analysis, Jin Shanyun storage platform is the shortest profit cycle of the business, Jinshan fast-disk Enterprise version, and Jinshan fast-disk personal version of the need for the longest profit.

Jinshan Quick Disk Personal version of the revenue from two parts: paid users and advertising. Jinshan fast disk to provide 15GB free space, more than this capacity to buy space coupons, 10GB a year's cost of 40 yuan. At the beginning of 2013, Wang Yulin predicted that when the number of users of Kingsoft's personal edition reached 100 million, the ratio of paid users to more than 1% would make them profitable. According to the average consumption of 40 yuan per user, Jinshan Fast disk personal version of the revenue of about 40 million yuan to offset the cost of investment. However, now the individual cloud 100G storage space, Jinshan fast disk personal version obviously has no advantage. August 2013, Jin Shanyun announced the "100G Space Permanent Free" program for the Personal edition of Jinshan fast disk. Obviously, Wang Yu-lin's previous calculation of the 40 million yuan income break-even point can not be achieved.

Having redefined the positioning of the platform service base provider, Jin Shanyun began stripping out the most difficult 2C business. September 2014, Jinshan Fast disk personal version of 33 million U.S. dollars sold to the Thunderbolt, at that time, the number of subscribers has been exceeding 120 million.

On the other hand, the game cloud that cut in early 2014, performance dazzling. In the first half of 2014, China's hand tour market size of 11.78 billion yuan, hand tour users 448 million, is expected to 2014 market size of 28 billion to 30 billion yuan, the first half of 2017, hand tour market share may reach 100 billion yuan. Wang Yulin in his speech on October 10, 2014 GITC General Assembly pointed out the importance of cloud architecture to the game, he said, a dau (day active users) to achieve 200,000 of the game, can have tens of millions of water in one months, usually after 15 days still not worth seeing will be melted down. However, in order to achieve this 200,000 dau need to build a server, input at least 3 million yuan, and time is at least 3 months, and 3 months later, the game's life cycle has passed. At present, there are no more than 5 service providers that can provide professional bottom cloud architecture to the game research and development team. Jinshan Game Cloud with the help of Millet and 7k7k and other "lei" game distributors, the odds are high. If the rapid growth of millet users into the cloud services, Jin Shanyun can also achieve rapid user growth, but there is no profit schedule. In addition to the game cloud, WPS fast-growing mobile end-month active users can also quickly import Jin Shanyun.

Millet and Jinshan clouds between the frequent interaction, so that the millet strengthened the control of the Jin Shanyun, the future does not exclude Jin Shanyun and millet cloud. August 21, 2014, millet through the Apoletto 2¥q acquisition of Jin Shanyun 161.688 million shares, after the completion of the acquisition, Millet will hold about 20.76% equity, Jinshan Software Holdings 63.83%. Jinshan Cloud Company agreed to grant Jinshan software and millet company warrants, allowing the two companies to 0.0742 U.S. dollars/shares of the exercise price of no more than 24.948 million shares (the total price of about 2 million U.S. dollars) and 162 million shares (the total cost of 12 million U.S. dollars) Jin Shanyun preferred Stock. Warrants are valid for a period of 18 months from August 21, 2014.

In the future, millet company is expected to hold up to 30.06% stake in Jinshan Cloud Group, and Jinshan software to Jin Shanyun's shareholding will fall to 56.34%. And if both sides exercise the shareholding, then to Jinshan Cloud Company's shareholding ratio will become: Jinshan Software holds 57.18%, millet Company holds 29.48%. If only Jinshan software exercise the right to share, then Jinshan Software's shareholding rose to 64.61%, and millet company's shareholding ratio fell to 20.31%.

--Jinshan software will become the son of the Thunder Army?

The answer is naturally negative. Jinshan Software as the "four carriages" of the Thunder Army, its position can not be shaken.

First of all, Jinshan software is the deepest love of thunder. 1992-2007, Lei has been fighting in Jinshan, because unable to truly display their ambitions and choose to "retire" 3 years. April 2010, he with a deep understanding of the mobile Internet, the creation of the most important mobile internet portal-smart phone, namely, millet, and then in the Baijun and Zhang Yi to persuade the dragon, back to Jinshan to mobile Internet genetic transformation Jinshan software.

Secondly, from the mutual infiltration of equity and business, millet and Jinshan software links more closely. Millet has a stake in Jinshan software subsidiaries Jin Shanyun, Jinshan Office and Cheetah Mobile, the future of Millet and Jinshan major business unit integration will be further deepened. Jinshan Personal Cloud sold to Millet also shares of the Thunderbolt, the same is a double win. There are "deep business considerations", "Zhou" is the evaluation.

Third, the Cheetah Mobile cleaning master, battery doctor and still in Kingsoft software within the WPS, have the value of the entrance. It seems that there is no reason why the mobile end, which has accumulated a large number of users, is discarded.

Lei Inventory

Jinshan software, gathering times, the Cheetah Mobile and thunderbolt, known as the Lei "four carriages." With the stock price and exchange rate of October 27, 2014, Lei 1.545 billion dollars in wealth controlled by the four-horse wagon.

Lei 1 million dollar angel investment in the gathering era, in the multi-round financing process, the value of investment by various agencies mining, the free voice software for network anchors, 90% of income from music anchors, game anchors and various dues. In October 2014, it was worth more than 4 billion dollars. At the beginning of the IPO, Lei held 215.24 million shares of the era, accounting for 23.8%. The February 14, 2014 announcement showed that LEI held 214.89 million shares, the proportion of shares dropped to 19.4%. Lei's investment earned a full pot of money, adding nearly 1 billion dollars to its wealth.

The Thunder prospectus shows, millet through its investment company Xiaomi Ventures 2¥q hold Thunderbolt 27.2% shares, for the largest shareholder, Jinshan Software holds 12.2% shares, Thunder CEO Shenglong and President Chen respectively hold 12.6% and 5%. Lei through Millet and Jinshan software has a total of 39.4% of the shares of Thunder, the control of the Thunderbolt more than the thunder of all directors and senior executives, the latter holds the Thunderbolt 34.5% of the shares. The equivalent of lei individual to the Thunderbolt's shareholding at least in 9.96% (=27.2%x30%+12.2%x14.79%). Millet co-founder Flood Peak, Chuan has joined the Thunder board, plus Jinshan Software CEO Zhanghongjiang, "Lei department" in the Thunder board has occupied 3 seats.

Before the Cheetah Mobile listing, Lei through Jinshan Software holdings of its 4.7% a common stock, 54.1% B common stock, a total of 53.5% voting rights, Cheetah Mobile listing after the stock down to 47%. The equivalent of lei individual holds Cheetah Mobile 6.95% Equity (=0.47*0.1479). Cheetah listing process, millet, Baidu and Jinshan Software as cornerstone investors invest 50 million U.S. dollars, equity ratio is still small, not counted into Lei shareholding.

In addition, lei individual and through its wholly-owned subsidiaries hold Jinshan software 14.79% of the shares.

"Golden egg" millet

Lei hands at present the most resounding signboard, of course, not millet mo genus. May 2012 Jinshan Software disclosed to HKEx documents that it holds more than 30% of Millet has issued shares.

In Lei's own set-up, the value of the Millet rocket-like ascension. At the end of 2010, the fund was valued at $250 million, at the end of 2011 at $1 billion, at the end of June 2012 at $4 billion and 10 billion in August 2013 (schedule). The value of millet is now more than 30 billion dollars. March 2014 rumors Tencent 2 billion dollar stake in millet, millet valuation soared to 30.9 billion U.S. dollars. However, then Lei denied Tencent shares in Millet. According to Isuppli Corp, China research director Wang Weibo, millet recently melted a round of capital, valued as high as 40 billion U.S. dollars.

The integration and extension of LEI system

"Focus, Ultimate, Word-of-mouth, fast."

These 7 words proverbs are the essence of the lei of the internet for nearly 10 years. And the April 6, 2010 set up Millet is lei with this set of thinking armed masterpiece. From the initial mobile phone system to the mobile phone to the tablet, from the TV to the box to the router to the smart parts, Lei will be packaged into "Apple +facebook", trying to get through the "Software + hardware + services" of the entire industry chain.

The transformation of Kingsoft Software is another classic case of lei practice of 7 words. July 2011 Lei formally return to Jinshan software, immediately start reform. Under the constant catalysis of "lei premium", the reform finally ended up with a 10 times-fold surge in the price of Jinshan software and a split listing of the cheetah's movements.

With Lei more energy in its ecosystem core millet, Jinshan software "lei premium" is constantly weakening. However, from the overall perspective, the "Lei system" integration is expected to become increasingly strong. To millet as the top layer, Jinshan software, gathering time, thunder, Cheetah Mobile "four carriages" as the backbone, more than 20 invested companies for the community "lei", whether the equity or business, are beginning to penetrate each other. Millet buy a leopard move, West Mountain, Jin Shanyun Equity, Jin Shanyun of the Quick disk personal version of the Thunderbolt, Lei investment more see and the integration into millet. The future, Jin Shanyun and millet cloud of the unity, millet and Jinshan software further integration, everything is possible.

Mr Liu, who created Lenovo, once said the millet model: "Millet is almost also belong to the model can not be reproduced, must be lei this person by what way to do to make, millet operating cost is very low, very low is directly control several levels, rather than using multi-level management methods, making operating costs lower. ”

However, with the growing line of millet, it is inevitable to worry that competitors will always find the weak point of the Millet Empire, and then burst.

First, the millet mobile phone is being attacked by rivals such as Huawei and the Charm clan. Millet took the lead in Low-cost High-quality quickly capture the user group, and then joined the competition of Huawei and the Charm clan, especially Huawei, a great catch up. This is the mobile phone as the core of the Millet Empire, is undoubtedly a great challenge.

Second, the content-side structure of millet needs to be further strengthened. February 2014 Millet Technology wholly-owned holding tile power network, will be rice chat, games, video and other business integration, the formation of "Millet Mutual Entertainment," by the original Kylin game CEO Shang as the general manager of Millet Mutual Entertainment. Millet Mutual entertainment personnel structure also includes the network, rice Chat team and some of the original Kylin game employees. "Rebels" has apparently begun to consolidate the weak links of the Millet Empire. (Tiger sniff: "New Wealth" released this article, Millet announced the introduction of Chen, give him 1 billion dollars to carry out content construction. ）