My 1999

They came here to report to Xu Liang about the listing of Penguin.

I took it and opened it and looked at it.

Penguin plans to issue 420 million new shares, equivalent to 25% of the equity.

The offer price per share is HK$2.77 to HK$3.7, which is approximately 11.1 to 14.9 times the expected price-earnings ratio for 2004, and the total amount of funds raised reaches HK$1.16 billion to HK$1.55 billion.

After reading.

"Do you want to list on Nasdaq?"

"Um."

"I don't object to Penguin's listing, but I object to your listing on Nasdaq."

"Mr. Xu..."

Xu Liang waved his hand to interrupt Zeng Liqing's words.

"Listen to what I have to say first, and then think about it."

"Please speak."

Xu Liang nodded and said, "There are three main reasons why I object.

First, there is no comparable benchmark company in North America for Penguin's business model. All instant messaging tools in the United States, from ICQ to Yahoo Messenger to MSN, are not independent companies and have not found a profit model.

Americans believe that all Internet innovation should first appear in Silicon Valley or Boston's Route 6, while the rest of the world is nothing more than a response to American innovation. This is what Braudel calls "world time" '.

Now you are going to tell proud Americans a story they have never heard before and ask them to pay for it. Do you think they will be willing?

Second, Xiangjiang is closer to the company's home market. Xiangjiang's analysts and stock investors obviously know Penguin better than Americans.

And theoretically, for a company that is based on serving mass users, the closer its listing location is to its local market, the more truly the company's value will be reflected.

Third, listing in Xiangjiang will also bring about the possibility that as a red chip stock, it may return to the capital market of mainland China in the future.

Those who know Penguin best are always its hundreds of millions of users. Countless Chinese individual investors who want to invest in the stock market, their first choice must be a company they know well.

Penguins are undoubtedly the best among them.

Finally, shortly after its founding, Penguin promised options to early core employees. If you want to complete the purchase at a lower price before going public, you can only choose Xiangjiang.

In the United States, this would be regarded by the capital market as an "inappropriate behavior that reduces the company's profits," but in Hong Kong this approach is generally recognized.

That's all I'm saying, think about it. "

After Zeng Liqing and Bonima looked at each other, the latter said.

"Mr. Xu, we admit that what you said is very reasonable, but Xiangjiang does not allow dual-class share structures, and Penguin happens to have a dual-class share structure now."

Xu Liang smiled faintly, "This year's CCTV March 15th Consumer Rights Protection Day, the three major telecom operators became the target of public criticism at the live broadcast party. Arbitrary charging by telecom companies was listed as the most hated business behavior, and its vote rate was second only to Skyrocketing house prices.

And I also got news that the authorities have made a decision to rectify the problem of arbitrary deductions by value-added service providers and the use of unhealthy information to lure users to subscribe.

The SP business accounts for 56% of Penguin's revenue. If this revenue drops significantly, it will be a huge impact regardless of whether Penguin is listed or not. "

His words undoubtedly hit the biggest worries of Bonima, Zeng Liqing, and even the entire Penguins management.

Thanks to Xu Liang's guidance, QQ Space has developed very well and its value-added services have also been done well.

Under the leadership of Bao Yueqiao, QQ Game Hall has surpassed Lianzhong and is second only to Sina Game Hall.

Penguin has a huge number of QQ users, and its traffic is no less than Sina, NetEase and Sohu.

But the income generated by all these is not as good as the SP business.

Once SP business revenue declines, Penguin's life will be difficult.

This is why they want to go public as soon as possible.

Take advantage of the good times to raise some money so that you can survive the winter in the future.

"If you are willing to give up the dual-class share structure, I can help Penguin develop and enrich your revenue channels."

Xu Liang's picture shows a poor dagger.

Bonima and Zeng Liqing's expressions changed, and they instinctively resisted.

Xu Liang controls 63% of Penguin's equity through Hongyan and Hanhua. Once there is no restriction of the dual-class share structure, they will immediately lose control of the company.

"Mr. Xu..."

Xu Liang interrupted: "Don't refuse in a hurry. We have been working together for so many years, so you should have a certain understanding of me.

When there are no major changes in the company, I rarely interfere with the operations of the subsidiaries.

This is true for New Dream, Hongmeng, Hanhua and Jianlibao.

Moreover, I have so many companies, and I don’t have the energy to participate in daily management.

Therefore, even if the dual-class share structure is lifted, I will not shake your position. "

Bonima and Zeng Liqing were a little moved, but after years of working in the business world, they were no longer the novices who easily trusted people.

Xu Liang didn't think that he could make people compromise with just a few words.

"We can sign a supplementary agreement to agree on the rights and obligations of both parties in advance. For example, I can directly intervene in the company's management if Penguin's revenue drops by 10%. If this does not happen, I will only be responsible for strategic planning.

As for the specific details, they can be discussed later. "

After Poonima pondered for a moment, "I would like to ask, in what aspect do you plan to help Penguin develop?"

"Of course it's games. QQ's young user base has a natural fit with online games, and online games are also the hottest market in China right now," Xu Liang said directly.

There was a hint of hesitation on Bonima's face.

Since making money in the SP business, Penguin has not considered online games, especially when Hongmeng and NetEase are leading the way.

In order to develop online games, Bonima personally went to the United States to visit the world-famous E3 video game exhibition, inspected the game industry in South Korea, and signed an agency contract with Imazic Company.

Represented the game "Triumph" developed by the other party.

This was the most advanced 3D role-playing game at the time, a generation higher than the 2D "Legend".

The whole game screen is very gorgeous.

For any game fan or entrepreneur in the game industry, it is an irresistible temptation.

The same goes for penguins.

After spending money to win the agency rights, we conducted an internal test in May last year. With the huge traffic of QQ, we quickly recruited 200,000 players to sign up.

Unfortunately, they misjudged China's market environment.

The 3D technology used in "Triumph" has very high requirements for computer configuration and network bandwidth.

Although the Penguin technical team has optimized the underlying program and server many times, it still cannot guarantee the smoothness of the game. The phenomenon of screen aliasing and mosaic has never been solved, making "Triumph" a useless product.

The Penguins' first foray into the game ended in failure.

The lesson learned this time made Penguin no longer try large-scale online games for two years.

However, the game's high returns make Penguin salivate, and it is the only one with enough potential to replace the SP business.

"Mr. Xu, I don't know what game you are talking about...?"

Xu Liang smiled.

"Boni, my game plan is not cheap."

We are all smart people, and no one will make a promise easily without a contract written in black and white.

"We need to discuss this."

Ponima said.

"No problem. I will wait for you here tomorrow."

Xu Liang said simply.

"Then let's take our leave first."

"Lu Hui, send them off for me."

"Please, both of you."

Watch them leave the office, then stand in front of the floor-to-ceiling windows and watch them drive away.

"Mr. Xu, I'm sending you away."

Lu Hui came back and said.

"Um."

Turn around and sit down on the sofa.

"Aren't you curious why I support them so much?"

"I believe you must have your own considerations." Lu Hui said respectfully.

Xu Liang smiled and said, "Go and get busy."

After agreeing, Lu Hui turned and left.

Looking at Penguin's financial report on his desk, Xu Liang breathed a sigh of relief.

Hanhua and Hongmeng are the pillars of the Xu family in the capital, so Jianlibao, no, it should be said that Master Kong and Penguin are the foundation of the Xu family in Xiangjiang.

Hongmeng has developed very well, and Penguin can’t be too bad either.

Moreover, after the equity penetration, Xu Liang’s share in Hongmeng’s gaming business is only 64.46%, which is not much different from Penguin’s 63%.

One left hand and one right hand.

The return is the same no matter where the capital is invested.

——

"Boni, do you think we have to agree to Xu Liang's conditions?"

Zeng Liqing asked in the car back to the hotel.

"What do you think?"

"I tend to agree. Penguin is indeed not suitable for listing on Nasdaq. More importantly, the development of Hongmeng has proven Xu Liang's vision in online games. Whether it is "Legend" or "Miracle MU", they are popular throughout the world. Top games in East and Southeast Asia.

"Warcraft 3" is known as the most successful real-time strategy game in history.

With his guidance, our online game business will soon develop and replace the SP business and become the company's pillar business. "

"But I'm worried that his joining will interfere too much in company management and affect Penguin's future development."

"Bonnie, I think you are a little over-worry. Judging from the development of Hongmeng Company, he rarely interferes in it, and he spends more than half of the year abroad. Under such circumstances, it is impossible for him to interfere in the daily management of the company.

In terms of strategic decision-making, Hongmeng’s four-year development and the success of Yihaodian, Bing and other businesses have demonstrated the other party’s outstanding strategic capabilities.

Having such a person to help us can only be good for the development of Penguin. "

Bonima nodded, "Let's discuss it with Zhidong and the others when we get back."

"Um."

——

The next day, Bonima and Zeng Liqing appeared in front of Xu Liang again.

"It seems you already have the answer."

After Zeng Liqing nodded, "We agree to change the dual-shareholding structure, but you are not allowed to interfere in Penguin's daily management unless Penguin's revenue drops by 30%.

The scope of daily management is, investments below 10 million US dollars, appointment of directors and below... "

The terms and conditions are very detailed and it can be seen that they have been carefully considered.

After listening, Xu Liang said directly: "There are no problems with finances and personnel. But a 30% drop is too much. I will give you 15% leeway. In addition, I need a veto power for Penguin's strategic decisions."