The war of the Chinese net: The profit model is a mishap

China Network has many subsidiaries. CFP Yeckyon, founder of China Net. CFP China Net Investment Group (CDC Corporation) formally filed for bankruptcy protection in the Bankruptcy Court of Atlanta, United States, in Beijing October 6.　　Affected, its listed company China Network (code: Chinese) and its subsidiaries CDC software (code: CDCS) was suspended on the same day by the exchange. As China's first Internet company to be listed on the Nasdaq, the Chinese network is now the first Chinese internet company to be listed in the U.S. for bankruptcy.　　These 12 years of "life and death" reincarnation can not help but everyone sigh unceasingly. From 220 to 0.42 in July 1999, while the dotcom bubble has not burst, the Chinese net has landed on Nasdaq at $20 a share, becoming the first Internet company to go to the US Nasdaq listing. The first day of the IPO, closed at a high price of 67.11 dollars.　　After that, in 2000 it had rose to $220.3 trillion, the total market value of which was once as high as $5 billion. China's IPO has been an unprecedented success.　　This daily average visit is only 200,000, the annual revenue of only 3.5 million U.S. dollars portal, in the revenue model although has been a rising star of Sina, NetEase and Sohu and other companies left behind, but its share price performance in the dotcom bubble on the eve of the collapse has been above these companies.　　There is no doubt that, compared to the other three portals, the Chinese network is a veteran of the playing capital. In the 2004, the China Network, which was marginalized in the portal area, began to spin off the listing. 2005, the Chinese network renamed the China Net Investment group, and began a new round of business expansion, the way is still a takeover. CDC software, CDC Global Services, CDC games and china.com (Hong Kong Stock China Network) Four blocks were officially released in 2006. CDC software was listed on the Nasdaq (NASDAQ:CDCS) in August 2009, financing 57.6 million dollars.　　By the end of 2010, CDC software had acquired nearly 20 companies in a row.　　However, the operation of capital has brought fatal sequelae to the Chinese network. Long Wen Interactive Marketing Research Institute Dean introduce in an interview, said: "The Chinese network mainstream business model has been lagging behind the times." News, forums, blogs, SNS, microblogging this is the order of development. China NET is just news, forum is good, it still stay in advertisement and game, but support the core competition of advertisement and game revenue-user, but lack too many. "After 10 years, the company's share price has fallen from the top 220 to $0.42," he said.　　This year, in particular, the company's share price has tumbled 88%. "Unfortunately, although the Chinese network is a pioneer, but the profit model is relatively backward, in its business development also has no characteristics to say." Blindly imitation, lack of innovation, lack of reasonable management, is the cause of the decline of the Chinese network. "Leisurely Travel NetworkCEO Li Daishan that.　　Is it difficult to be reborn?　　Although, the Chinese network's loneliness has its intrinsic root cause, but this Chinese net applies for the bankruptcy protection The direct reason is 2006 a paper to gamble agreement.　　November 2006, the China Net Investment Group issued a 168 million dollar convertible priority bonds, the annual interest rate of 3.75%, 2011, the buyer for 12 institutional investors, hedge fund company Evolution Capital is one of them. When the convertible priority bonds were issued by China Net Investment Group, the buyer entered into a "gambling agreement" with the purchaser: The two sides stipulated that if CDC software and CDC games could not complete the IPO by November 13, 2009, bondholders would be entitled to require the company to redeem the bonds, and the redemption price should be added to the accrued and unpaid　　Interest is paid on the November 13, 2006 to redemption date, with a punitive annual interest rate of 12.5%. However, the CDC gaming market ended up failing. As of December 31, 2009, Delaw are, a subsidiary of China Net Investment Group, which owns the 75.2%,evolution capital, holds the remaining 24.8%. As the last investor in the bond, Evolutioncapital decided to prosecute the CDC group in March 2010, accusing it of violating multiple confidentiality agreements and unsecured corporate bond trading agreements, interfering in corporate business relations and claiming USD 295 million, and then suing the CDC and its affiliates , the claim amounted to USD 65.4 million.　　After more than a year of negotiations, the lawsuit eventually ended with the CDC group, triggering the filing of the bankruptcy protection. It should be noted that there is an essential difference between bankruptcy protection and bankruptcy in the United States. Bankruptcy protection is applicable to enterprises with assets exceeding liabilities, and they can use the protection procedure to let enterprises deal with the assets in order to repay the debts. In the United States, many large companies have used bankruptcy protection to deal with debt and restructure their businesses.　　America's biggest carmaker, for example, has filed for bankruptcy protection from New York's courts, successfully restructuring its debt and getting new developments.　　So the Nasdaq-listed China network is just filing for bankruptcy protection and will its future rally? "The negative impact of the CDC filing for bankruptcy protection on 2 other listed companies is naturally inevitable," Li Daishan said. This unexpected incident, let out of people's view of the Chinese network, back to the forefront of public opinion. People know of such a website, but seldom patronize it. Therefore, if the Chinese network eventually declined, the CDC's application for bankruptcy protection is only a catalyst. And ultimately the decisive factor is that it has been difficult to adapt to the development of the Internet industry now. Although according to the China net announcement, the China Net Investment Group (CDC Corporation) filed for bankruptcy protection, has no direct impact on the operation of the Chinese network, the Chinese network will continue to carry out day-to-day business, but with the suspension of the Chinese network, Hong Kong stock market is also falling continuouslyhas created a new low of HK $2 in recent years.　　China-China Investment group's future is still an uncertain fate, but this year has suffered many rounds of shorting the many Chinese concept stocks is a small blow. However, Li Daishan said: "The bankruptcy of the market for foreign investors, it is not flattering." Originally, the influence of the Chinese net is not big. "In addition, many analysts pointed out that the Chinese network of bankruptcy protection should belong to an individual event."　　In addition, the Chinese concept stocks have suffered many rounds of shorting this year mainly based on corporate credit problems, rather than the company's profit model problems. Introduce also pointed out that the decline of the Chinese network is not an Internet enterprise inevitable, the current seemingly booming Chinese Internet industry, in fact, there have been many forgotten names such as 263, 21CN and so on. Of course, even if the Chinese network from the collapse, it does not mean that this is the fate of internet companies. Sina has a wide audience, and the industry occupies an absolute advantage of micro-blog, NetEase has online games, Tencent has QQ chat tools, Sohu has video.　　These portals are very good at touching the needs of users in a Mengmen, and this is the Chinese network and many other Internet companies lack of kung fu. Li Daishan pointed out: "This also alert Internet enterprises, homogenization phenomenon has seriously threatened the healthy development of the industry, enterprises need in how to provide users with ' unique ' characteristics of the service." "(Zhang Yi) to share: