NET Dragon CEO Liu Luyuan: Sell 91 after the focus of mining online education

After selling 91 wireless, what is the net dragon doing? Perhaps this is outside to Pianan corner of the net dragon biggest curiosity. With this curiosity, a year later, the reporter came to Fujian network Dragon is located in the Hot Spring Branch office building. The difference is, the Net Dragon CEO Liu Luyuan has moved to the building opposite the 851 Building office, and the original 851 building is still 91 wireless office location, at this moment, 91 wireless subordinate to the Baidu under. July 2013, the net Dragon announced 1.9 billion U.S. dollars in price, will be at the peak of the business accounted for nearly half of the 91 wireless sales to Baidu, the internet history of the largest amount of mergers and acquisitions immediately set off a stir. Overnight, the network Dragon fame Big Noise. The sound of discussion, speculation and questioning followed, "What can be sold after the net Dragon sells 91?" "In the eyes of the outside world, the net dragon seems to be very good for the internet giant to do" wedding clothes ", as the 2003 Cyber Dragon will be 17173 to 20.5 million U.S. dollars to sell the same price to Sohu. The same is, 17173 and 91 wireless is the net Dragon extremely good "banknote printing machine"; The difference is, that year to sell 17173 is to raise funds to develop online games business, to promote the successful transformation of the company. And this time to sell 91 have huge cash flow of the net Dragon and then plan the layout of a big game? Do not rule out further cooperation with Baidu Network Dragon will be in the network education, SME applications with Baidu to seek cooperation opportunities. "The Internet and mobile internet opportunities are very many, especially mobile games, education, small and medium-sized Enterprises Cloud Office is the most valued by the company, hope that through this more successful mergers and acquisitions, can draw more funds and technical force." "In the simple meeting room, a casual plaid shirt, a very simple Liu Luyuan Smile explained the original intention of selling 91 wireless, compared with last year, with tired Liu Luyuan seems more emaciated, he has no CEO's shelf, more like a standard it male." Liu Luyuan admits selling 91 wireless is really a good deal, because whether it is from the IPO point of view, or direct cash purchase, for 91 of the original shareholders, is a good return. Indeed, in addition to the 91 wireless 57.4% shares of the net dragon can directly obtain 1.06 billion of dollars in cash, 91 wireless investors also earn a full pot. Among them, Mr Li invested 113 million yuan in January, flashing more than 500 million in six months, and Singapore Temasek in December 2011 to share 91 wireless, carrying a profit of 9.8 times times, "the father of Red chip" Leung profit more than 50 million yuan. And the biggest winner is the former Alibaba chief executive David Wei (currently the founding partner of the Royal Fund), according to the net Dragon this March announcement, Wei Jieo to 9.75 million yuan for shares 91 wireless 3.43% stake, Baidu bid has risen to more than 500 million yuan, return more than 50 times times. Market Analysis Network Dragon sold 91 wireless on the one hand, because of the 360 competition, may encounter development bottlenecks, on the other hand, 91 wireless and Baidu's resources are highly complementary and can achieve better development. In this respect, Liu Luyuan said that the more important reason is the latter, because originally planned to split 91 wireless IndependentOn the market, the goal is to make 91 wireless access to better development opportunities, "in this case, and Baidu's cooperation can better achieve the target at that time, and the net Dragon and Baidu will have more opportunities for cooperation in the future." NET Dragon Company Chairman Liu Dejian also become the director of Baidu Company. Liu Luyuan to the financial weekly reporter revealed not to rule out further cooperation with Baidu May. Earlier, the net Dragon former chief financial officer Hu Zemin (current 91 wireless CEO) said after the sale of network Dragon will follow the network education, SME applications and Baidu to seek cooperation opportunities. No 91 wireless network dragon, the game is still the main revenue, in the end of the development gradually mature into a slow development period, Liu Road far more attention to two or three years ago began to layout the hand tour development, has launched a number of products. Liu Luyuan said the network Dragon on the boutique mobile game more attention, such as the early launch of the "Crazy Tribe", Liu Luyuan revealed that the next month or two will also launch the Korean version. "This kind of hand tour is more in line with the concept of hand tour that we are trying to create, more exquisite, globalized and cross-platform." Liu Luyuan told the Financial weekly reporter. But for the current achievements of the tour, Liu Luyuan said that the financial results did not come out, specifically not say, but is expected to promote a first hand tour ranks. The week after the interview, the Net Dragon third quarter earnings release, it seems not very optimistic. After the close of November 28, the net Dragon announced the third quarter as of this year September 30, this is the first report after the sale of 91 wireless, the next day the net Dragon shares fell nearly 7%. According to the results: 2013, the total income of the net dragon in the third quarter is RMB 481 million, the chain growth of 12.8%, year-on-year growth of 65.7%; In the third quarter of 2013 has terminated business (ie 91 wireless) revenue for the RMB 262 million yuan, the chain growth of 29.5%, year-on-year growth of 203.8%, profit for the renminbi 106 million yuan, the chain growth of 39%, year-on-year growth of 1451.1%. However, in the third quarter, the net profit was $97.23 million, down 22% from the last quarter, as a result of the decrease in revenue from online games and the sharp increase in expenditure. In addition to Baidu this season to sell the "91 wireless" business profits, its main online gaming business profits more in the quarter fell 52.8% to 36.96 million yuan. The Bank of America Merrill Lynch then lowered its target price from 22 yuan to 18 yuan, maintaining a "neutral" rating. In addition, the financial results also mentioned how to use the $1.06 billion of the 91 wireless revenue, of which 50% has been used for the distribution of special dividends; the balance will be used to further invest in existing businesses, mobile gaming business potential mergers and acquisitions and research and development. Emphasis on the distribution of education "We are not to do simple textbooks or teaching-assisted electronic, but to the teaching methods and breakthroughs." "Net Dragon is best at doing innovation constantly, we are constantly looking for new innovative business." Liu Luyuan told the financial weekly reporter very confidently. Therefore, in the main business game, the net Dragon found another gold mine-online education. According to Liu LuyuanIntroduction, in the education industry, only the teaching, one year there are 200 billion, and the game market a year of net income is 60 billion. Greater market space means more nuggets opportunities. Attention to the field of education originated in the development of the network Dragon talent problem. Liu Luyuan that the current education system to cultivate students are likely to score well, but to work after the face of the work of various skills, learning ability, especially innovative ability is very inadequate, can only rely on enterprises to spend heavily retraining. To solve the talent problem, the network Dragon in the company founded the "Net Dragon University." Since then, many colleges and universities have adopted long-term cooperation in various ways, including the establishment of cooperative laboratories, directional training, subject research and the provision of internship base, the use of various means to try to break through this problem, although the effect is not obvious, but accumulated a lot of experience. Liu Luyuan that the time is right to develop online education, more resources to promote the network Dragon in the field of education to make a truly competitive cross-era products. "The education we want to do is not to put the textbooks electronically, simply to pad or PC, what we really want to do is through technical reserves, knowledge of the mobile Internet, and our in-depth research into the game, through our transformation to change the way we learn in the future." Let students by parents forced learning passive learning, become active learning, experience the fun of learning. In a word, we are not to do simple textbooks or teaching-supplemented electronic, but to the teaching method of trial and breakthrough. "To subvert today's educational model, Liu Lu's ambitions are evident." There are many classifications of education, Liu Luyuan it into four categories, one is the K12, that is, from kindergarten to high school graduate of basic education, the second is including college and even graduate students and other institutions of higher learning; third, vocational education, vocational skills training, four is lifelong learning. And the network Dragon is paying special attention to is K12 and vocational education. Want to let the Student initiative study seems to be a kind of "plump ideal", the Liu Road lets the study put on the game "The coat", seems to set up the bridge which realizes the ideal. In the game, Liu Luyuan found an interesting phenomenon: each person is willing to take a knife to cut a monster, or do the same task, complete the initiative to complete the task. The root of the game is the "clear incentive mechanism". But in the school study is not so, many students do not know why to learn a boring point of knowledge. In addition, Liu Luyuan found: Free game clothing can sell a lot of money, because we all want to personalized, will show off and compare. According to the nature of the exposed people in the game, the Network Dragon in the field of education research and development focus on stimulating everyone's learning power, the external pressure into internal power. For example, the development of the "reversal of the classroom", that is, the starters Society of students when the teacher told other students did not learn, this is not only the reversal of the role of students is also the reversal of classroom functions. "The education sector now has a lot of new ideas about sharing educational information and resources through the Internet and mobile terminals at a time when educational resources are unfair," he said. And for all we have to do is to turn the idea into reality and not just stay at the stage of the paper. We are happyWould like to do such things, but also want to enter the industry. "When it comes to education, Liu Luyuan. On the basis of active and happy learning, the educational software developed by Liu Lu pays more attention to the training of students ' thinking mode, including the improvement of analysis and problem-solving ability, especially the training of students ' innovative ability. In Liu Luyuan's view, the Net Dragon is a company full of innovative ability, the development of the network Dragon has proved that innovation is not an inspiration, but a way to improve through the ability to train. The concept is very good, how to land implementation? Liu Luyuan said that in the hardware, the network dragon has a lot of important cooperation, but currently has not officially announced. In the teaching concept, the network Dragon also has a very strong partner in the country. In the recent release of the financial results seem to be able to see the net Dragon in the education field two new moves, according to the earnings show: First, the company is actively building an area of 536 acres of Fuzhou software vocational and technical college changle New campus. Project planning, design and site selection have been completed and are planned to be completed and put into operation by the end of 2014. In the future, the college enrollment size of 8000 people. Second, October 30, NetDragon BVI, Hon Hai Precision Industrial Co., Ltd. Indirect wholly-owned subsidiary Foxteq Holding Inc. and the Royal (China) investment Fund I entered into a memorandum of understanding to jointly operate and develop online education applications and related user markets. As for the layout of the education field, Liu Luyuan said that the net Dragon has done quite a long preparation, including capital investment, personnel input, technical input and partners, and now the cooperation resources are gradually in place, some experiments have begun, including from the company itself to do experiments. But for the specific development of time, Liu Road is far from giving a specific timetable. The Dragon is never a game company. "The game is just a carrier of what we want to do, the things we choose look across the field and actually have the same support point behind them." Although from the current earnings, the game is the source of the net Dragon revenue, but outside the game, Liu Luyuan has laid out a huge network, he called the "Five Strategies": Page tour, hand tour, online education, small and medium Enterprises Cloud Office, Community mode. In addition to the traditional games, online education, small and medium Enterprises cloud Office and Community model is far away from the current carefully nurtured new products. Now the staff of the network dragon to use "Shift-class system", that is, colleagues can not work at the same time, but does not delay the work of collaborative processing. This is the Internet dragon has been the development of the "cloud Office" in the tip of the iceberg. 2003, the network Dragon began to develop their OA office automation system, after constant modification, now has been for other enterprises to provide two or three years of service. From a small enterprise to today, the network Dragon is aware of China's many small and medium-sized enterprises in the development of the problems faced. When the small enterprise solves the most basic product market question, the promotion enterprise management ability and the personnel efficiency becomes the first question, the solution is carries on the informationization transformation. But the information transformation one is buys the expensive solution product, two is the staff level must raise to adaptshould be product. And for small and medium-sized enterprises, some even do not have many computers, the road of information is even more difficult. But the network Dragon found many small and medium-sized enterprises thirst for information, hope to reduce costs, improve efficiency, enhance staff learning ability, become knowledge-based learning-oriented enterprises. So, the network Dragon seize this business opportunity, in mobile phone on the article, because compared to computers, smartphones more popular. The network Dragon uses oneself in the mobile internet superiority development one set of OA system, the main carrier for the handset, also may use in the computer, is the Cross-platform system, in order to help the small and medium-sized enterprise solves the real problem, realizes the real time office. "We are different from some companies that specialize in OA office systems, they make money by selling this product, and we make money by the service behind it, which makes a big difference," he said. Liu Luyuan Such evaluation of the OA system, he believes that the market on the product can only achieve a single function, can not adapt to the personalized needs of enterprises, and mixed. The fifth strategic direction is the new Community model. "Once we can develop a new social model and community concept, it's equal to all the social opportunities we see now," he said. The implication is that Liu Luyuan seems to be trying to subvert the existing social model. For these five strategic directions, Liu Luyuan said are very optimistic, it is difficult to say which one will focus on investment, and with 1.9 billion dollars has no direct relationship. "We've been doing what we want to do, and 1.9 billion dollars in just gives us a lot more power to push these things faster and do better." "For the 1.9 billion dollars that the outside world has been concerned about, Liu Luyuan explains. Online education, cloud office, social model, some people may think that the game company Network Dragon, but in the eyes of Liu Luyuan, "net Dragon is never a game company." "The game is just a carrier of what we want to do, and what we've always wanted to do is push the world to become happier through technology." The things we choose seem to span the field and actually have this support point behind them. We can solve the user's pain point, because many things can be very happy to do, but also in line with our vision. Our vision is to do the largest wireless platform, hope to change the world faster, hope that the company become the most innovative enterprises. "From this self-confidence, Liu Luyuan bluntly:" From the past the net dragon can only be a platform 17173 hatch out to hatch out of 1.9 billion U.S. dollars of 91, perhaps in the future we can hatch the value of tens of billions of dollars platform. In short, the Net Dragon is in step by step bigger, more influential, can capture bigger opportunity. ”