Zhanghongjiang: Millet shares Jin Shanyun is a strategic investment game transformation

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Jinshan CEO Zhanghongjiang

Tencent Science and Technology Lei Jianping December 19 Report

Although Beijing into the cold winter, located in the small Camp West Road Jinshan Building Hall is more than ever more bright atmosphere, Jinshan staff a few days ago to complete the renovation of the hall, and the two founders of Jinshan begged Baijun and Zhang Yi Dragon to establish a bronze statue. Retired more than a year of Baijun and years of partner Zhang Yi Dragon recently also interested in the bronze statue before the photo.

All this seems to show the past of Jinshan old times, the advent of a new era. Only more than a year ago, Jinshan is still in the darkest period since the IPO: in charge of game operation when the president of Jinshan game Wu Ying Min and director of research and Development of Jinshan game CEO Zou Contradictions, spent 6 years of research and development of the "sword Net 3" after the launch of the market suffered a major setback.

Security business is 360 step by step press, hit morale. Jinshan 2011 Third quarter revenue of 242 million yuan, an increase of 6%, the chain down 8%, net profit of 74.89 million yuan, down 12% year-on-year decline 28%.

Just over a year later, Zhanghongjiang's reign of Jinshan has changed dramatically. Today, Jinshan only 2012 years in the third quarter from the net game income of 211 million yuan, is close to the same period last year Jinshan revenue combined. WPS achieved a growth of 60% to 70%, the security business increased by 100%, and the revenue from web site navigation increased markedly.

Not only that, Jinshan has completed the transition to the Internet, but also to the Internet. Zhanghongjiang publicly said that the Golden Hill game will be a comprehensive transition to the mobile Internet, the new project is all page and mobile games, no longer have a end of the tour. Jin Shanyun also in vigorously, although still burning money, but Jinshan Hope Jin Shanyun become a pillar of future business.

When it comes to planning for the coming year, Zhanghongjiang stresses 3 points: the future will continue to shift to the mobile internet, the new business investment emphasis on market share and revenue, the profit will slow; in the game will be more pages and hand tour.

As a company with a history of 24 years, Jinshan employees have been carrying the glory of Jinshan, history and dreams, but also a heavy burden, Jinshan chairman Lei has said in the interior, people will not because of the long history of Jinshan and respect Jinshan, only the scale to do enough to win the industry respect, Jinshan to do large-scale efforts. Today, Jinshan Business Line MBO has been completed, has restarted the road, exudes a new flavor.

Golden Hill old tree hair sprout business back to growth

This is the top of the Chinese internet company Whampoa Military Academy, and Microsoft struggle for many years of National Enterprise Award, is considered to have been arrogant, what is not a business or still? The answer is clearly negative. In the face of the decline of the status of Lei Era Jinshan is Golden Hill CEO Zhanghongjiang bring catch-up, games, security to the mobile Internet transformation, training of new business Jin Shanyun continue to expand users, but also won millet investment, and seek new financing.

Jinshan performance improved in recent quarters (Tencent Science and technology mapping)

The latest results show that Kingsoft software in the third quarter of 2012 revenue of 365 million yuan, an increase of 51%; net profit of 119 million yuan, up 42% over the same period in the previous year. Jinshan Office software and the performance of online games have significantly improved, which not only changed the performance of Jinshan decline, but also for 3 consecutive quarters of continuous improvement in performance. Jinshan CEO Office for more than a year Zhanghongjiang have reason mood good, recently in its office readily accepted Tencent technology this visit.

Zhanghongjiang revealed that the transformation of Jinshan is experiencing changes, not gaming business revenue for the first time in total revenue accounted for more than 40%. Benefited from the Government's continued promotion of genuine and the central authorities provincial level to strengthen the genuine, so that WPS in the past three quarters of revenue than expected, third-quarter revenue from the same period last year, 60% to 70% of growth. For WPS, the Government to promote the legitimate another good thing is that WPS only sold three years of authorization, policies and laws have three-year renewals, and not only in the provincial and ministerial level, the central implementation, now also to the city of the county to push office software to be genuine.

"People's impression of WPS also stopped in 2005 2006, when the government bought the past, the real use of few people." But today in fact WPS Monthly active can reach 50 million. I last on the microblog said WPS month active to 50 million, some people still lukewarm to say, I don't seem to feel around me what people are using. Those who are not used may be the people around them, and those who use them may be around. ”

Zhanghongjiang pointed out that WPS to today, we must tell you WPS is not a person used to block Microsoft's legitimate offensive tools, today's WPS is very good office software. Not only that, the WPS Android version of the online download more than the domestic download volume, the Japanese WPS business in the WPS total revenue accounted for in the 20% or so, but the overseas consumers not too much prejudice.

Safety is another fast-growing business in Jinshan. In the face of the drug free labor pains, Jinshan network to find the road to development. Jinshan Network revenue this year will be far more than 200 million yuan, and achieve quarterly profits. According to Jinshan Network CEO Fu previously disclosed that the main revenue from the electricity business and search. Jinshan Network is the first major partner search, Baidu is the top five partners, Taobao is also an important partner, the future will also cooperate with the brothers to expand the game in the field of income.

People familiar with the matter to Tencent Technology revealed that the Jinshan network is similar to the Model 360, its more than 60% of the revenue from the Web site navigation, poison overlord to do installation, there are still a small portion of member income. Surprisingly, cheetah browsers have become a revenue source for the Kingsoft network and will be the future revenue booster. Although the browser is the Red Sea market, but Zhanghongjiang, Fu are full of expectations of cheetah browsers.

Zhanghongjiang earlier in the conference call pointed out that Jinshan June this year released Cheetah browser, up to now, Cheetah Browser active users up to 5 million, and the number of daily growth. Jinshan is optimistic about the future prospects of this browser. Although the browser market is the Red Sea, but the Red Sea is characterized by the reduction of ordinary products, Leopard browser itself has some characteristics, such as the design interface elegant, user experience and reaction speed are good, coupled with security and stability.

In addition, Jinshan has 150 million users, and a lot of user loyalty is very high, and many internet giants, as long as the product is good enough, coupled with the market power of Jinshan, this loyalty can convert a large part of the browser users.

Jinshan's gaming business has also changed the continuing decline in history. Not only that, the third quarter of the Golden Hill Game quarterly revenue breakthrough 200 million yuan, the year-on-year growth of 28%, a new high since the IPO. The main product of the West Hill home, "Jian Net 3" with the new information film "Erhai Lake," the release of the game to bring the number of active users and three-digit year-on-year increase in income. Jinshan two new online games products "Moon Shadow Legends" and "Legend of the Saints" has contributed to the third quarter income.

Only two years ago, when the younger generations like Tencent, Baidu has become the industry giants, Jinshan was plunged into an irreversible decline.

Worst of all, in the first quarter of 2010, Jinshan dropped 19% on its most critical gaming business compared to the previous quarter. This is in the golden age of online games, can be described with incredible. Because in addition to the loss of "World of Warcraft" agent power and led to nearly "collapse" of the nine cities, is the most serious decline in Jinshan. In addition, gentleman Jinshan face "Kaniko dozen" of the 360, but also step back. 360 Zhou, chairman of the board, said that a few micro-blogs let Jinshan share price fell 12%, the market value of 600 million.

Jinshan Most gloomy period than this, people think change, eager lei return. Lei has disclosed in the internal speech, Jinshan Network Shield Encounter 360 "two choose one" interception, Jinshan network Vice President Chen in front of himself to cry, to resign threatened, himself was deeply touched. "From that moment, I said to myself, no matter how much I have to pay, I must help you." ”

The reform pains old Jinshan people endure the humiliation "bleeds" to flee

With Lei as chairman of Jinshan, and dug up as the president of the Microsoft Asian Engineering Institute Zhanghongjiang, Jinshan situation began to reform.

Of course, reform is painful. Take Jinshan Network For example, in particular, Jinshan security and can be combined with cattle that special period, the newly established Jinshan Network on the one hand to integrate the two kinds of corporate culture, disbelief two team distrust, on the other hand Fu and other management to lead the new team to deal with 360来 from public relations, products and other aspects of the attack.

At that time, the Jinshan network is internal and internal, not only Jinshan poison 1 years after the loss of 200 million revenue, the most serious challenge is the core products Jinshan Poison Bully month active users only 7 million, and is still shrinking, and the new profit direction has not been found, the monthly income is net outflow. The fierce attack from 360 and the mutual distrust among the team make the whole Jinshan network confused. In the first year of integration of Jinshan network, many old employees of security business left. Old employees think that can be rough, and cuckoo, they pay for the company but face out, so heart health dissatisfaction.

In fact, at that time Jinshan Security CEO Wang "downgrade" for COO, according to Lei instructions, "assisted" Fu for a long time. Wang for people cordial, the reason why "assisted" is also to appease the old Jinshan people. A former Golden Hill security mid-level to Tencent technology, Wang know in the integration of the old Jinshan people's interests were damaged, at that time still require everyone to look at the overall situation, do not give the company chaos. She herself is also in Jinshan network business relatively mature, only then turn to do PowerWord CEO.

Another example of reform is the West Hill, the Golden Hill game of MBO. The former vice president of Jinshan Games Zhan Zhen Yang is considered to be the victim of the reform. Zhan Zhen Yang has been "Jinshan five Tiger" one, has two degrees back to Jinshan, and as vice president of Jinshan Company, Jinshan game COO and other functions. In the West Hill reform before and after, Zhan Zhen Yang led 40 people to run away from the establishment of Zhuhai heart travel technology.

Zhan Zhen Yang from 2006 back to Jinshan to do the game, all products with Zou all the way over. According to Zhan Zhen Yang Memories, the original is all day overtime, one night night, overnight stay up. The first product is "Spring and Autumn Q biography", a few dystocia, and later with Zou to Chengdu to spend a year to save this product. Then it is together to do "seal God 2", together to do "swordsman the World", "Jian Net 3", for the Jinshan game moved four or five times, Chengdu, Zhuhai, Beijing.

In the old Jinshan there is a tradition called the company's main situation, this has always been with the Golden Hill game President Wu Ying sensitive old Jinshan people, but ultimately not because of Wu Ying min, but because of the West Hill in Mbo. In this respect, Zhan Zhen Yang said that he is certainly not a victim. To participate in the West Hill MBO, will be the management of the three major shareholders, but their own to follow the heart to start a business. Zou, the chief executive of West Hill, claims that this is part of a series of reform measures after the Western Hills ' MBO.

The so-called broken cocoon for butterflies, it is really painful to have great development. Zhanghongjiang reflect the past history of Jinshan said, Jinshan has been very easy to make money on low efficiency problems, low efficiency reflects that jinshan response to the market is not sensitive to push new products and listen to user feedback, this makes the poison bully under free impact was beaten very miserably.

Talking about the change of Jinshan today, Zhanghongjiang appears very happy, said Jinshan past Good foundation, products and technology are not bad, to adjust is Jinshan organizational structure and staff mentality and culture. So over the past year or so, Jinshan has adjusted its organizational structure to give each subsidiary management team greater autonomy, especially in operations and product form, which is equivalent to becoming a start-up company for each subsidiary. Zhanghongjiang especially mentioned Jinshan network, said two years ago began Fu as Jinshan Network CEO quickly to the Internet transformation, and successfully introduced Tencent strategic investment, now soon has the internet gene.

Another change in Jinshan is culture. Zhanghongjiang said, the Golden Hill again will mind set down, the first to have a dream, the second to work. Jinshan spent a lot of kung fu let this thing deeply rooted, Jinshan internal will work hard, speaking responsibility, will be good faith tree for the company's culture push down. "I generally feel this year down the entrepreneurial framework has, entrepreneurial feeling has, entrepreneurial culture has, the rest of the home is the main product." "Now Jinshan is no longer the focus of the media, but it has been more developed in the product."

Of course, Jinshan change Another reason is, Zhanghongjiang and lei like, is focused on the business people, can let the public convinced, Baijun is relatively free and easy. Asked Baijun Tencent Technology said: "I belong to the chic type of people, not too willing to dwell on the tedious things." "Early evaluation said, for the late Jinshan, Baijun is a dream and spirit, so that programmers are yearning for heart." But Baijun Nature decides he is not the head of a particularly big business ambition.

Golden Hill Game Radical Innovation: no longer develop new end tour

In the third quarter of 2012, with Kingsoft Office software MBO Strategy Implementation, Jinshan software formed by the group under the leadership of Jinshan Network, Jinshan Office software, Jinshan games three traditional business and to Jin Shanyun as the representative of the emerging business subsidiaries. "New Jinshan" claimed in the organizational structure, product layout, operational thinking, etc. have been fully equipped with the Internet gene. Jinshan is not only the transition to the Internet, but also to the mobile Internet transformation, Zhanghongjiang said: "Management team will be more focused on mobile connectivity of the new environment."

Jinshan in the Mobile internet field has been accelerated layout, mobile phone Poison PA officially released, WPS Office software in the PC end, mobile end of dual-line, WPS Mobile version since May last year, in 226 countries and regions in the world to blossom, active users more than 7 million. As of July 29, WPS Mobile version ranked Google Play download market, including the United States, Britain, Germany, Australia, Taiwan and other 14 countries and regions for free application first.

More drastic reforms come from the gaming arena. As a core source of income, Jinshan game reform appears even "radical". such as the new project of Jinshan games are all page and mobile games, no longer have an end of the tour. Zhanghongjiang said that despite the past year "sword Net 3" users, PCU and income have reached the historical level, is a total growth, but in the new game research and development has been clearly told to do the game of colleagues, Jinshan no longer put resources to do any new end of the tour, the future all the energy into mobile games and page tour.

Net profit Year-on-year increase of each game manufacturers (Tencent Science and technology mapping)

Zhanghongjiang is based on reports from investment agency Kleiner, which reported that global smartphone + tablet shipments exceeded PCs in the fourth quarter of 2010, predicting global smartphone + tablet ownership over PCs in the second quarter of 2013, and imagining computing operating systems: Ios+android share of 45 The%,windows share is 35%. "We made a move to make the mobile internet more than a year ago, and today is no longer a choice, it has to be done," he said. ”

Jinshan Game transformation is not surprising, the domestic large-scale online games grew into a dilemma as early as two years ago, the first half of the 2012 client market real sales revenue 19.73 billion yuan, 12.5% year-on-year, compared with the first half of 2011 year-on-year growth rate of 32.4%, down nearly 20%. The latest results show that a number of listed online games manufacturers have bid farewell to the past high growth. NetEase, Shanda, giant 3 of online gaming manufacturers appear net profit Year-on-year decline, the perfect world decline more than 43%.

Tencent Science and technology learned that, although the current including the perfect, grand, swimming, including a number of online games manufacturers will focus on the web game, mobile phone game transfer, however, such as Jinshan clear stance no longer research and development of new end of the business is not many.

Zhanghongjiang gave its own reasons, the entire end of the industry are very depressed. Any new end of the game is mainly to rob other players, Jinshan games this year pushed three new games also confirmed this point, and users to obtain higher costs than before. In the mobile internet rise, the user interest has shifted, Jinshan must have these changes. Relatively speaking, the page swims more relaxed, the handset game also has more fragment time, conforms to the future game development, the Jinshan game certainly will increase the investment. "Still in the research and development of the end of the product will remain, but Jinshan is mainly to tap the value of old products." ”

Not only millet investment Jin Shanyun will absorb more external investment

Jin Shanyun is a very important piece of the mobile internet business, Jinshan transformation of the mobile Internet implementation, by the Zhanghongjiang himself. In the recent year, Jin Shanyun business not only set up a separate subsidiary, but also to obtain 1.82 million U.S. dollars millet shares, and recently announced its core products Jinshan fast-disk users breakthrough 35 million, the number of users upload files over 15 billion.

As a very promising business, but also with the millet business can be closely linked, the outside world speculation may further purchase Jin Shanyun, or even the formation of Jinshan hatching millet acquisition model. Lei previously on Tencent technology, Millet does not rule out further integration of the Lei Department of the company, if you are willing to do it together, willing to do the support of independence.

In this respect, Zhanghongjiang public response, Jinshan hatching millet acquisition model is purely outside the imagination. Each company has its own focus, millet CEO Lei work style is focused, now is unlikely to have so much energy to expand so many businesses. Millet shares Jin Shanyun cooperation also as early as eight or nine months ago, but just formally signed the contract. "This is actually a strategic investment. ”

For millet, the millet mobile phone needs cloud services to provide support, as Apple phones need icloud support, through strategic investment can get better support. For Jin Shanyun, Millet Mobile users are the most active mobile internet users, Jinshan is very optimistic about the cloud mobile application, and that the future of the most active cloud users must be mobile users. If you can reach strategic cooperation with millet, so that the millet mobile phone users with Jin Shanyun services, which will help Jin Shanyun bring a lot of users.

Zhanghongjiang said that at the end of this year, the amount of millet will be over 7 million, if 3 million is active Jinshan fast disk users or Jinshan cloud users, Jin Shanyun will be a good thing. Next year, the number of millet mobile phone may be 20 million, that half of the 10 million users. Zhanghongjiang said: "If half of 10 million users are very active in the use of Jin Shanyun, its use of cloud services over Jin Shanyun give him free amount, it may become a paying user, this is Jin Shanyun is willing to cooperate with millet reason." ”

Although the same Lei company, there is no need to acquire cooperation. Zhanghongjiang said that these millet users, like the iphone users, to use the iphone well can not be separated from icloud, those active like millet users can not be separated from the millet cloud, and millet cloud by the Jin Shanyun provided. This is like icloud with Microsoft and Amazon services, Apple and his two rivals can work so closely, why Jin Shanyun can not work closely with millet while maintaining independence.

"You look at Millet mobile phone recommended software does not have Jinshan all products, millet mobile phone has WPS, there is a quick disk, there is a word PA, mobile phone is not recommended WPS is no other office software can be used, Iciba is very good translation software, fast disk is a great cloud application. Millet and Jinshan the boundaries between the two companies are clear, are for a better user experience. ”

Millet use Jinshan cloud process not only help Jin Shanyun rapid scale, reduce costs, itself in the use of Jin Shanyun services also to Jin Shanyun pay. In the definition of Zhanghongjiang, Millet is Jin Shanyun in Jinshan subsidiary of a large enterprise users, the future Jin Shanyun will also serve more enterprise users, so as to obtain more revenue. With the development of China Mobile Internet, the use of Jin Shanyun Enterprise Cloud storage services will be more and more.

At present, including Baidu, Alibaba, Shanda and many other enterprises are in the layout of the cloud storage market, 115 network disk, cool disk, such as start-up companies are also ploughing, the cloud storage market competition is unprecedentedly fierce. However, Zhanghongjiang is still very confident about Jin Shanyun, Zhanghongjiang said that no one in the Chinese market today can say that cloud computing has obvious advantages, Jin Shanyun also not too many disadvantages.

"Jin Shanyun and millet cooperation has a very good point of entry, we in addition to let millet mobile phone tied down the mountain fast, the user's camera photos can also be stored in the cloud at any time." These themselves to bring a lot of convenience to users, the future can be imagined, there are a variety of equipment, the most convenient way is to exist in the cloud, I think Jin Shanyun and Jinshan subsidiary cooperation also has a lot of space, the key is to find a user feel that this is a future application scenario. "With the WPS Enterprise user more and more, can help Jin Shanyun promotion to the enterprise." Future Iciba, Poison tyrant, even game may help to promote Jinshan cloud.

Earnings showed that Jin Shanyun net loss of 18.8824 million yuan in the first three quarters of this year. Zhanghongjiang admits he will pay next year, but wants to see the number of Jin Shanyun users grow, next year will continue to vote and will expand the business to some new areas. Zhanghongjiang said, as long as the user size to a certain scale, you can get good returns. This is like a free anti-virus, no one would think of free anti-virus can have such a good profit model, and eventually hope Jin Shanyun become a pillar of Jinshan future business.

Zhanghongjiang that the personal pay aspect is also can try the direction, Jin Shanyun imitate is the American Dropbox. Dropbox last round of financing with 50 million users, financing 75 million U.S. dollars, to achieve the value of 4 billion U.S. dollars. To now 100 million users, there are 4% users, the basic can be profitable. Considering that Chinese users pay a low proportion, still can bring good scale effect to Jin Shanyun.

Of course, cloud services is a burning money business, the need for rapid and large scale benefits, Jin Shanyun apparently also want more investors to join. Zhanghongjiang Frankly, Jin Shanyun recently need a lot of money, Jinshan also hope Jin Shanyun can inject some more entrepreneurial feeling, let VC come in is Jin Shanyun bigger and stronger a good choice.

"Jin Shanyun must be made to hundreds of billions of inputs, and not a year of investment, whether Baidu or Ali, they are very clear, but we firmly believe that the future of the business will have a better return, this is a very clear direction, is that you can make the problem." We have confidence in ourselves and I think we will stick to it.