In real life, on the eve of Xida Puben's financing, there are many startups that have started a fight. The editor of Pintu.com will take stock of those entrepreneurial projects that died on the eve of financing to warn future generations.
[2015]
November 2: The partner suspended updates due to uneven equity distribution of "Chief Entertainment Officer"
November 2 morning news, the chief entertainment officer of the entertainment industry vertical media platform published an article on his WeChat platform "I'm sorry, the "Chief Entertainment Officer" will suspend updates from now on! 》 stated that due to major disputes within the operation team of the "Chief Entertainment Officer", the company entered the dissolution process. From now on, the WeChat public platform of the "Chief Entertainment Officer" will be suspended from updates.
The protagonist of the fight: Chief Entertainment Officer Founder Zou Ling VS Partner Chen Yanyan
Reason for the fight: Uneven equity distribution
Chief Entertainment Officer Founder Zou Ling published an article on his official account "Detailed Explanation on the Stop Update of "Chief Entertainment Officer"" saying that the key to the major disputes in the team lies in the inconsistency between her and her partner Chen Yanyan due to equity distribution.
Zou Ling said: "Since the start of the business, Chen Yanyan has repeatedly expressed dissatisfaction with the proportion of shares that had been negotiated and the established facts - I hold 40% and she holds 60% of the shares, and believes that she needs to occupy more shares. She has repeatedly proposed to me to actively dilute or sell her shares for free to ensure her position as an absolute major shareholder. At least the shares must exceed 70%. "In addition, during the process of continuing financing, Chen Yanyan arbitrarily modified the WeChat backend login password and unilaterally deprived Zou Ling of the right to continue operations, which directly led to the escalation of the conflict between the two parties.
Troubleshooting result: The company dissolved
As of now, the WeChat official account, website and brand image of "Chief Entertainment Officer" are assets of "Beijing Xinyou Yijia Culture Technology Co., Ltd.". Since the company dissolution procedure is being initiated, no one is allowed to carry out foreign cooperation in the name of "Chief Entertainment Officer", otherwise there is a risk of illegality and the update will be suspended from now on. (Source: Sina Technology)
Last words:
Chief Entertainment Officer Zou Ling: "I don't want to comment on this matter for the time being. I just want to say one thing: those that didn't kill you will make you stronger; when you have nothing to lose, it is when you start to get it."
May 17: Luo Ji Siwei's partner, who is valued at US$100 million, broke up with
May 17, Luo Pang Luo Zhenyu, the partner of China's largest self-media product "Luo Ji Siwei", announced the "dividend".
Why is it a pity that these two people are fighting? Why can a public account be valued at $100 million? As a self-media, Luo Ji Siwei has been praised as one of the most popular self-media by public opinion in the past year. It is indeed amazing to develop to this point now. The total number of views of the "Luoji Siwei" video on Youku has reached more than 70.5 million, and the number of subscriptions to WeChat public accounts has reached more than 1.1 million. The most eye-catching thing is the two member recruitment, with nearly 30,000 members contributing nearly 10 million yuan in membership fees, and someone gave "Luoji Siwei" a valuation of US$100 million.
The reason for the fight: "Split up the spoils" is uneven
rejected self-media person Zuo Lin Youli said that there are many rumors about Shen Yin and Luo Zhenyu's breakup. One is that Shen Yin asked Luo Zhenyu for 1 million, but Luo Zhenyu refused, so he divided it. The second rumor is that Shen Yin felt that Luo Zhenyu was too stumbling and raised objections, so Luo Zhenyu proposed to make a difference. But Zuo Lin and Youli also said, "These versions are all vivid, but they are not enough to believe. Shen Yin and Luo Zhenyu are both great men. They have seen the big world and it is difficult to break up for these small interests."
Fighting results:
It is reported that Luo Zhenyu will lead "Luo Ji Siwei" to upgrade, including the development of a new sub-product "Luo Ji Experiment".After losing the stars such as Wang Kai and Luo Pang, Shen Yin also said that she would release new products.
Last words: Shen Yin, one of the protagonists of the
incident, summarized five lessons from the "Luoji Siwei" incident:
1. When I didn't think clearly, I made an APP. When I first started to do "Luoji Siwei", I proposed to make an APP, but it was useless. The investment in the APP was considered a "sinking cost".
2. Because you are not your biological son, don’t think about binding only with a self-media platform. To do it, you must fully understand the logic of the platform and know how to cooperate.
3. Suffered from "second product syndrome". Don’t do a lot of things at once, but think more about one thing as much as possible.
4. Be free, don’t bind. "Luoji Siwei" began with a star and an agent model, which essentially felt insecure. It is common for celebrities and agents to abandon each other - if celebrities don’t work hard enough, they will be abandoned by their agents; if celebrities work hard too hard, they will be abandoned by their agents. Only when everyone feels free will the connection between them be firm; if everyone feels unfree, they will feel insecure and their connection will become very fragile.
5. Too many delusions. If you want to get something too much, you will find that it is wrong. We should return to our original intention and do subtraction, so that we must know where our boundaries are? Only when you know the end can you be calm. Only when you know the concentration can you be at peace. Only when you know the peace can you be quiet. Only after you are quiet can you think and gain something after thinking.
Summary: What Luo Ji Siwei needs to do is something that breaks the sky with one needle, or something that seals the throat with one sword. Entrepreneurs unconsciously pursue uncertainty and feel that what they do is infinitely possible, but for investors, your business logic must be certain. (Source: "Executive" magazine)
[2014]
July 1: Online education website instant noodle bar split overnight: valuation of nearly 100 million
Event:
In July 2014, just about to receive A round of financing, only to sign the final agreement. On the eve, instant noodle bar, a website with a valuation of 100 million valuation, has split overnight, and the three core team members are now almost "rebel against each other."
On the eve of the A round of financing, Yu Haoran, Wang Chong, Yan Jiyue and Yang Bin gathered together, and the equity problem broke out. The fierce part of the story is that Yu Haoran left the scene for 15 minutes and returned to the scene, threatened Wang Chong, who did not understand the technology very much. Then, Yu Haoran said, "I have deleted all the codes on github (Editor's note: It is understood that the technical staff have backed up the codes under Yu Haoran's arrangement); the team collaboration platform, I will turn off your permission first; I set up an email to the angels, and send it in an hour, and also send it to the A-round investors we talked about. In the email, I will explain the exaggerated data before, and explain the lies you didn't want to explain before, and make it clear about the development plan of the real product to ensure that it is responsible to investors. Let's talk now, let's see if we let the email be sent out, or let's explain everything clearly to investors."
Then, in the official statement of instant noodles, instant noodles founder Yu Haoran officially fired co-founders Wang Chong and Yan Jiyue, withdrew all kinds of management rights, and reserved the right to pursue relevant responsibilities, and accused Wang Chong and Yan Jiyue of stopping the illegal use of the instant noodles bar project code obtained by illegally stealing them.
What is more dramatic is that the other two partners Wang Chong and Yan Jiyue also "for tooth". On July 1, 2014, Yan Jiyue kicked out the instant noodle bar project team and the original user management personnel from the user QQ group, which seriously affected the instant noodle bar product market operation.
fighting protagonist: Yu Haoran, founder of instant noodle bar, VS co-founders Wang Chong, Yan Jiyue, Yang Bin,
fighting reason: The founder wants to be CEO while going to school. The reason for the split between the instant noodle bar, a company composed of post-90s, actually broke down because the founder asked to continue to go to school, and other partners did not agree. This partner who started a business while studying and insisted on being the CEO of the company, of course, other partners also disagreed.
After taking control of the right to speak with the deletion of code, Yu Haoran made three requirements: 1. He will return to China to study in the second half of the year; 2. He will be CEO; 3. He will be in control.
The idea of other partners is: Although the instant noodles bar was founded in the United States by Yu Haoran, and the team members generally recognize him remotely control and promote most of the work in technology, products and markets, Yu Haoran has been studying in the United States for a long time. In contrast, because he once recognized Yu Haoran's ability and judgment, Wang Chong chose to take a leave of absence when he only needed to complete his thesis before graduation. Yan Jiyue resolutely resigned and returned to China after getting a teaching position in the United States, and turned a project team without a legal identity into a company to operate in China. Why shouldn't they have more say than a part-time founder? After all, they paid more for this.
There are various lies in the middle, true and false, and the spectators can't tell who is right and who is wrong on the eve of financing. (Source: Tencent Technology)
fight result:
insiders said that the conflict between Yu Haoran, Wang Chong and Yan Jiyue was made public, which made investors dissatisfied. Investors even threatened that if a few people in the entrepreneurial team really wanted to split up, it would make everyone unable to do it. The time is that two months after the instant instant bar was "divided" two months later, the new product "Cute Code" launched by its co-founders Wang Chong and Yan Jiyue was launched in October 2014, and is also a programming training website.
The traditional industry is no exception. The most famous "Chinese disbanding partners" in history
also staged "Man is dead for money, birds die for food". Not only the above-mentioned entrepreneurial rookies, but some of the people who are now business tycoons have also "loved and wanted to kill" for various reasons when they were young and energetic. If the newly-entered startups "tear" each other because of money and power, then when their business "platforms" are bigger, there will be more reasons for the tearing. From the three major players of New Oriental, to the six brothers of Wantong, to Lenovo Liu Chuanzhi and Ni Guangnan, the internal struggle between Kung Fu and Gome, the loyalty of the world, unreasonable equity setting, unbalanced interest distribution, changes in partner roles, conflicts of ideas, and high achievements are some of the key words of Chinese-style division.
Breakup Event 1: The War between the Three Big Bosses of New Oriental - Founder's Rights
The prototype of "Chinese Partners" New Oriental Education Group has experienced a chaotic period that has attracted widespread public attention. Wang Mingfu, the founder of Hejun Consulting Company, mentioned in his book "The Battle of Experts", that the earliest New Oriental School was a messy stall, with a group of self-employed people under a big brand. Although there were many famous teachers, the school teachers were like local princes and governed by their own governments. Some controlled the TOEFL class and GRE, and some controlled the IELTS and GMAT. Whoever could open more classes could be more money. The school just kept the bills and almost ignored the rest, which led to teachers running and attacking each other for their own interests, grabbing courses and students, which had a negative effect on the New Oriental brand.
It was not until 2000 that Yu Minhong found Wang Mingfu, formulated a unified strategy, slowly took the center of power back from the "local princes" and carried out joint-stock transformation of the school. Wang Mingfu described that the interests of all parties were difficult to balance at that time, and Yu Minhong appeased this and offended that. In the end, the core team resigned, framed, changed jobs, and started a new job. The struggle for power and profit reached a white-hot level, and even the atmosphere among the founding bosses was booming. Similar conflicts lasted for four to five years, and Wang Qiang and Xu Xiaoping ended with fading out of New Oriental. (Source: Hexun.com)
"tricking" partners' status:
At present, Wang Qiang and Xu Xiaoping, who have left New Oriental, have both become new leaders in the angel investment field, with Xu Xiaoping's Zhen Fund as the most; coincidence, Yu Minhong, who has been in charge of New Oriental for many years, also joined forces with Sheng Xitai and Wang Shengjiang to form Hongtai Fund and Hongtai Innovation Space this year. The three partners finally got on the same path.
Breakup incident 2: Wantong Six Brothers - a War between Brotherly Love in the Jianghu
Wantong Six Brothers founded Hainan Agricultural High-tech Investment Joint Development Corporation in 1991. Since then, the six brothers have left one after another until Wang Gongquan left the company in 2003 and Feng Lun was left, which lasted 12 years. In "Wild Growth", Feng Lun described the six brothers of Wantong in the "Liangshan Model". "The seats are orderly and profits are no different", and the stock rights and profits are completely divided equally, just like the heroes of Liangshanbo gather in Hainan, which is a modern replica of Water Margin. As a result, in business partnerships, brotherhood often overrides the partnership.
It is said that their biggest difference lies in where to invest money. Feng Lun said that it is all different in business thinking. If you want to go east, I want to go west, but there is no dispute over interests. Everyone can't go together, so quarrels are inevitable. "For about a year, we quarreled as soon as we had a meeting, almost every day." Pan Shiyi said that when the quarrel was too unreconciled, the only thing left was to break up. (Source: Hexun.com)
"Tear" partners' status:
Nowadays, Feng Lun is still in charge of Wantong Group and has participated in the establishment of China Minsheng Bank, and his books have often been on the best-selling list. Pan Shiyi, the six gentlemen of Wantong, is also very prosperous. He co-founded the real estate company SOHO China with his wife Zhang Xin. He is a frequent visitor to Forbes Rich List. His recently entered-shared office, SOHO3Q, also achieved good results. Yi Xiaodi then created Sunshine 100 and was listed in Hong Kong. Wang Qifu, who has a relatively low-key media image, founded Fudinghe Equity Investment Fund, mainly engaged in investment and financing business in the real estate industry. Another low-key partner, Liu Jun, is currently the executive director and general manager of Chengdu Agricultural High-tech Co., Ltd. Wang Gongquan, who once elopes with others in a high-profile manner, devoted himself to private equity early and was one of the partners and founders of CITIC Venture Capital Fund. Not only an investor, Wang Gongquan also has a poet.
Breakup incident 3: The war between Lenovo Liu Chuanzhi and Ni Guangnan - the founder's business philosophy
1994, the founding elder Ni Guangnan of Lenovo Group sued Liu Chuanzhi, which was particularly representative. Ni Guangnan is a technical school, while Liu Chuanzhi is a sales school. Liu Chuanzhi once claimed in the company, "As long as Lao Ni is right, Lao Ni is a valid number 1, other scientific and technological personnel are 0. These 0 can only be achieved by following Ni Guangnan." Liu Chuanzhi said this and did the same. Ni Guangnan developed the Lenovo 286 motherboard in Hong Kong. In advance, Liu Chuanzhi repeatedly reminded Zhou Xiaolan, who was responsible for production: "The designed motherboard must be reviewed carefully again and again, and then produced it. After mass production, if the error is found, the loss will be too great." Ni Guangnan could not wait, so he forced Zhou Xiaolan to enter mass production, but the result was an error. Zhou Xiaolan and Ni Guangnan had an argument. Finally, Liu Chuanzhi had to appear and yelled at Zhou Xiaolan with a hard heart: "Any conflict with Lao Ni is yours. If you do this, you will be Mr. Ni's. If you have any mistakes, you have to take it. No, transfer you back to Beijing." In the end, Liu Chuanzhi transferred Zhou Xiaolan back to Beijing.
However, in the end, the two of them had completely different ideas about the company's business. Lenovo withdrew from the Hanka market led by Ni Guangnan. Liu Chuanzhi also rejected the large amount of R&D funds applied for by Ni Guangnan, and Ni Guangnan's main projects at Lenovo were almost suspended.
The relationship between the two collapsed in the 10th year of the company's establishment, but Ni Liu's relationship was inextricably linked and it was difficult to end well; Ni Guangnan sued Liu Chuanzhi for having personal economic problems, believing that Liu Chuanzhi stole state-owned assets in Lenovo's Hong Kong IPO project and falsely reported the balance sheet, almost to the point where he wanted to send Liu Chuanzhi to prison. Ni Liu's fierce battle lasted for many years. Later, Ni Guangnan admitted in an interview with the media that 1995 to 1996 was the most painful stage in his life. If Liu Chuanzhi had not "kicked" him out of the association at that time, he might have been immersed in negative emotions and would have difficulty in starting his new life.
Ni Guangnan's move failed to put Liu Chuanzhi in prison. Liu Chuanzhi later really sent Sun Hongbin (now the chairman of Sunac China), who had the momentum of Lenovo's successor, to prison.Liu Chuanzhi has always been generous in promoting young and backwards. The current chairman of Lenovo Group, Yang Yuanqing, and Guo Wei, chairman of the board of directors of Shenzhou Digital, were both reused in their 20s and became general managers of individual business.
Sun Hongbin also achieved rapid improvement within Lenovo. However, the outside world believes that Sun Zhe is too popular and has too little control, which makes Lenovo insiders believe that there is an attempt to use the company's internal assets to help their personal careers. Liu Chuanzhi forced Sun Hongbin to be punished for embezzling 130,000 yuan of public funds, and Sun was sentenced to five years in prison if he denied the crime. The relationship between the two of them, the love and hate of their master and disciple has not ended at this point. When Sun Hongbin was released from prison, Liu Chuanzhi gave him the first amount of funds to establish Shunchi Real Estate and made a comeback. (Source: Hexun.com)
"tricking" partners' status:
At present, Liu Lao's Lenovo Group successfully listed in Hong Kong in June this year, with a market value of over HK$120 billion. After the grudges were settled, Yang Yuanqing moved forward steadily with Lenovo after taking over. Ni Guangnan is currently a researcher at the Institute of Computing, Chinese Academy of Sciences, chairman of the Chinese Society of Information Technology, and academician of the Chinese Academy of Engineering. Only Sun Hongbin, a man with a temperament, has not lost his "resentment" at the age of fifty years old. He has been fighting with the halo of "Saint Seiya" until now: at the age of 25, he was promoted by Liu Chuanzhi and later turned against him and went to prison; at the age of 30, he founded Shunchi to challenge Vanke, but eventually failed; at the age of 40, he led Sunac to a thousand miles a day and chased the first echelon; at the age of 50, he wanted to acquire Greentown and Kaisa, but both returned in failure. "People always die. People are naked. So what if they succeed or fail? It's worth living a wonderful life." No one is more exciting than him anyway.
Breakup Event 4: Real Kung Fu "Dragon and Tiger Fight" - a War between the founders of the family business
Every family is "fighting", his family is the most exciting, the couple divorces, mother and daughter turn against each other, husband is imprisoned, wife and brother take over... They all say that life is like a play, but in fact life is more absurd than drama.
The story begins like this: Cai Dabiao and Pan Minfeng are from Dongguan and are elementary school classmates. The lively and cheerful Pan Minfeng attracted the taciturn Cai Dabiao. At that time, the Cai family had good economic conditions, and Cai's mother strongly opposed it, but Cai Dabiao "would not marry Pan Minfeng." In January 1991, 21-year-old Cai Dabiao and 20-year-old Pan Minfeng got married, and their daughter was born at the end of the year.
The couple first opened a hardware store in Chang'an Town, Dongguan, but went bankrupt due to a light business. Pan Minfeng said that when her livelihood was worrying, she proposed to join the "168 Dessert House" which started business in 1990 and had a good business. In April 1994, Cai Dabiao and his wife and Pan Yuhai each invested 40,000 yuan to convert the dessert house into a 168 steamed restaurant, and the store was opened next to National Highway 107, Xiaobian Village, Chang'an Town, Dongguan. Pan Yuhai is responsible for the overall management and production of the restaurant, Pan Minfeng is responsible for the cashier, Cai Dabiao is calling guests, and the equity structure is Pan Yuhai accounted for 50%, and Cai Dabiao and Pan Minfeng accounted for 50%. In the opinion of experts, this half-small equity structure has natural defects.
Pan Yuhai has great food talent. He can explore the dishes of various star hotels in Dongguan, which are delicious and cheap. Shortly after its opening, the monthly sales of this store with an area of more than 70 square meters and only 7 employees reached more than 300,000 yuan.
In 1997, Pan Yuhai and Cai Dabiao introduced the "computer program-controlled steam cabinet" to realize the standardization and large-scale processing of Chinese fast food. The restaurant began to transform into a standardized Chinese fast food chain store and was reorganized into "Dongguan Double Seed Food Co., Ltd." and began to expand rapidly in Dongguan. Pan Yuhai serves as the chairman and president of the dual-seed company, and the equity structure remains unchanged.
It should be said that in the early stage, Pan Yuhai, who was a chef, always held the dominance of the restaurant. However, after the "computer program-controlled steam cabinet" and other series of equipment have achieved the standardization of Chinese fast food, the company's dependence on Pan Yuhai has become increasingly weak. On the contrary, with the expansion of the company's scale, Cai Dabiao's talent in formulating strategies, planning and operations has been reflected, and his position in the company has been gradually strengthened.
In 2003, Cai Dabiao was appointed as the president of the dual-seed company. According to media reports, the two agreed orally, changing their term once every five years, and taking turns to "take the banker". The following year, the double seed company entered Guangzhou and Shenzhen to open stores. Due to the unfavorable start, the company launched a new brand of "Zhen Kung Fu".Since then, "Zheng Kung Fu" has conquered cities in first-tier cities and quickly became a first-tier brand in Chinese fast food chain. Cai Dabiao has also joined the ranks of well-known entrepreneurs and is regarded by the outside world as the true spokesperson of True Kung Fu.
This made Pan Yuhai feel hurt. In media reports, he once said that Cai Dabiao's behavior "greatly distorted the real historical facts and seriously damaged the emotions between the original shareholders."
What made Pan Yuhai feel dissatisfied was that Cai Dabiao's relatives gradually controlled the "fat" of real Kung Fu: his younger brother Cai Liangbiao monopolized computer supply, his older sister Cai Chunmei controlled procurement business, his older brother-in-law Li Yueyi monopolized store specialization and kitchenware business across the country, and his younger brother-in-law Wang Zhibin monopolized poultry supply. Later, the Cai Dabiao case broke out and many relatives were also implicated. The imbalance in power between the two parties has caused a rift between former partners. The disintegration of Cai Dabiao and Pan Minfeng's marriage has made the relationship between the Cai and Pan families even worse.
In 2006, Cai Dabiao and his wife Pan Minfeng divorced due to a breakdown in relationship. Pan Minfeng's 25% of the company's equity was transferred to Cai Dabiao, and other properties, cash and custody of a pair of children belonged to Pan Minfeng. After the property division, Cai Dabiao obtained the same equity ratio as Pan Yuhai.
Starting from 2007, Cai Dabiao launched the listing plan and began to implement the "de-familyization" reform, introducing a group of senior executives from KFC, McDonald's, etc., which caused some veterans who started their early business in Kungfu to leave one after another, which was also interpreted by the outside world as the "de-pan-cultivation" strategy.
In the same year, Cai Dabiao introduced two venture capital companies, namely Today Capital and Zhongshan. Zhen Kung Fu's equity structure has changed to 41.74% of Cai Dabiao and Pan Yuhai, 10.52% of the two-seeded companies (of which Cai and Pan each account for 5.26%), and today's capital and Zhongshan linkage each account for 3%. Later, Cai Dabiao's equity ratio surpassed Pan Yuhai through the linkage of Zhongshan.
In 2008, Cai Dabiao failed to fulfill his "verbal" promise five years ago to let Pan Yuhai be the president. Pan Yuhai hoped to participate in management but failed. In addition, Cai Dabiao's "de-Panhua" series of actions, the conflicts and struggles between the two began to become public.
In the eyes of his ex-wife Pan Minfeng, Cai Dabiao gradually became a plunder of the Pan family's property. She told the media that Cai Dabiao defrauded her 25% of the shares on the grounds of "for real kung fu and for the child" and she wanted to take them back.
According to Pan Yuhai, my sister Pan Minfeng "is bullied or treated unfairly, I will definitely help her get justice." The Cai and Pan families thus fell into a protracted family infighting. Their internal struggle lessons can be written into MBA's textbooks and used as a reflection for family businesses. (Source: Chutian Jinbao)
"Tear" partners:
The husband and wife divorced; the husband was imprisoned; the mother and daughter turned against each other, and the wife and brother were in charge of the company... On December 12, 2013, the Tianhe District Court of Guangzhou found that Cai Dabiao had embezzled 15.15 million yuan in his post, embezzled 18 million yuan, and sentenced him to 14 years in prison for multiple crimes. Currently, Pan Yuhai is the chairman and president of Zhen Kung Fu.
Breakup Event 5: The Battle of Gome Huang Chen - The War between Founder and Professional Manager
Huang Guangyu, born in May 1969, his parents are farmers, and he has four brothers and sisters, and his family is very poor. In 1986, 17-year-old Huang Guangyu appeared in the market in Beijing. At first, he was a clothing vendor. On January 1, 1987, Huang Guangyu founded the Gome Electrical Appliances Store. This creativity allowed Huang Guangyu to find the direction to become China's richest man in the future. In 2000, when Gome chain stores were covering the whole country, 30-year-old Huang Guangyu told all his peers with facts that he would either copy Gome or be eliminated by Gome. In 2004, sales reached 23.8 billion yuan, ranking second among all chain companies in China. In addition to retail, Huang Guangyu established Gome Real Estate in January 2005, specializing in investment in the real estate industry. Subsequently, Huang Guangyu entered the capital market and founded Pengrun Investment with a total assets of 5 billion yuan, and launched mergers and acquisitions in the market. Dazhong, Yongle, Sanlian Trading Company and others were all acquired by him. In November 2008, the Beijing Municipal Public Security Bureau announced that Huang Guangyu, the founder of Gome Electrical Appliances, was arrested for economic problems.
Chen Xiao, born in Shanghai in early 1959, started to be engaged in household appliance sales in 1985, and served as the executive deputy general manager of a state-owned home appliance company in 1992.In 1996, he led 47 employees, raised nearly one million yuan, founded Shanghai Yongle Home Appliances, and served as chairman. In December 2003, Chen Xiao merged with Guangzhou Dongze, setting a precedent for domestic home appliance chain industry mergers and acquisitions. At the end of 2004, Yongle successfully introduced strategic investment in Morgan Stanley in the United States. In July 2005, it announced that it would acquire half of Taiwan Cankun’s stores in the mainland for a price of no more than 140 million yuan. On October 14, 2005, Chen Xiao led Yongle to be successfully listed in Hong Kong. Just as he was about to make a big move, Gome Electrical Appliances, the number one in the domestic home appliance retail industry, suddenly announced a merger and acquisition of Yongle Home Appliances in Hong Kong in July 2006. The largest home appliance chain merger and acquisition case so far cost 5.268 billion, which caused a sensation across the country. On the 12th day after the merger officially came to an end, Chen Xiao served as the president of Gome Electrical Appliances. On December 14, 2007, Gome announced the acquisition of Dazhong Electric Appliances through a third-party organization. Chen Xiao has become the helm of the largest home appliance company in China. In November 2008, he served as the president of Gome Group and the acting chairman of the board of directors. Since January 16, 2009, Chen Xiao has served as the chairman of the board of directors of Gome Electrical Appliances and also serves as the president.
After capital entered the market, Huang and Chen started a battle for control of Gome Electrical Appliances, and the scene of this commercial struggle was very heroic.
"Tear" the current situation of partners:
Finally, the dispute between Gome Chen and Huang ended with the founder Huang Guangyu being imprisoned, and professional manager Chen Xiao resigned.
The famous management expert and merger expert Wang Yukun commented on this: Gome's great struggle is a classic case that has been rare in decades in the history of world business. It is a contest between the founder's major shareholder who accounts for "people's harmony" and the professional manager who accounts for "people's time" and the new shareholder alliance. It is also a contest between investors and speculators (relatively speaking). In the end, we will see that stakeholders who are equal in terms of "people's harmony" will definitely reach a compromise, and Gome's new balance of power will surely be born.
At the beginning, the three started their own businesses. At the end of 1998, Wu Changjiang invested 450,000 yuan, and his two other classmates, Du Gang and Hu Yonghong each invested 275,000 yuan, and founded Lei Shi Lighting in Huizhou with a registered capital of 1 million yuan. From the perspective of equity structure, Wu Changjiang accounts for 45%, while the other two people account for 55%. Later, there was a disagreement between the three shareholders, and Wu Changjiang transferred his shares to the other two shareholders by 5.83%, and the shares of the three formed a balanced state of 33.4%, 33.3%, and 33.3%.
immediately followed, parting ways. In 2005, the differences between the three shareholders were no longer irreconcilable, so they decided to split up. The plan is that the company will cost 240 million yuan, and Wu Changjiang took 80 million yuan from the company, and in exchange for his Leshi equity ownership belonging to the other two shareholders. Hu and Du Xinran agreed and signed the agreement immediately. Three days after the board of directors, the dealers gathered at the headquarters and forcibly intervened in the division. The dealers raised their hands to vote and asked Wu to stay. So the situation turned sharply and Hu Du and each left with 80 million yuan. Wu Changjiang holds 100% of the shares.
Then, investors were introduced. After the two shareholders left, Lei Shi was short of funds, and Wu Changjiang borrowed US$2 million from Zhengri Company Ye Zhiru, which could be "debt-to-equity conversion" later. In June 2006, Mao Qu Jianli, president of Yasheng Investment, Chen Jinxia, wife of Wei Dong, head of the "Yongjin Group", Wu Kezhong, president of Advantage Capital, and Jiang Liping, individual investor, invested a total of US$9.94 million in Leshi, accounting for 30%. Mao Qu Jianli holds 20% of the shares, while the other three account for 10%.
SoftBank Saifu is coming. In August 2006, with the help of Mao Qu Jianli, SoftBank Saifu invested US$22 million to receive the funds, accounting for 35.71% of Leshi's equity. Ye Zhiru borrowed $2 million from Leshi, and after "debt-to-equity conversion", he turned into a 3.21% stake. After dilution, the shareholding ratios of each shareholder were: Wu Changjiang 41.79%, SoftBank Saifu 35.71%, Mao Qu Jianli 12.86%, Chen Jinxia, Wu Kezhong and Jiang Liping 6.43%, and Ye Zhiru holds 3.21%.
raised funds again, and Wu Changjiang lost his position as a major shareholder. In August 2008, in order to raise funds for WorldCom shares, Wu Changjiang once again raised US$46.56 million from Goldman Sachs and SoftBank Saifu. At this time, Wu Changjiang's shareholding ratio was diluted to 34.4%, losing his position as the largest shareholder; after Saifu's two investments, the shareholding ratio exceeded 36.05%, becoming the largest shareholder; Goldman Sachs became the third largest shareholder with an 11.02% shareholding ratio.After
acquired Worldcom, its equity was diluted again. After acquiring Worldcom through cash + share exchange, Wu Changjiang's shareholding ratio was diluted to 29.33%, when SoftBank Saifu held 30.73%. This shareholding ratio remained until the IPO of Leshi Lighting.
Hong Kong IPO, on May 20, 2010, Les Lighting landed on the Hong Kong Stock Exchange.
introduced Schneider. On July 21, 2011, Les introduced France Schneider Electric as a strategic shareholder, and jointly transferred 288 million shares to Schneider by SoftBank Saif, Goldman Sachs, and Wu Changjiang, six major shareholders including SoftBank Saif, Goldman Sachs, and Wu Changjiang at a price of HK$4.42 per share. Schneider spent HK$1.275 billion, accounting for 9.22% of its shares, becoming the third largest shareholder of Leshi Lighting. At this time, SoftBank Saifu held 18.43% of the shares and Wu Changjiang held 15.33% of the shares.
Schneider interfered in the operation and Wu regained his position as the first shareholder. In September 2011, Schneider nominated Li Xinyu as vice president of Lei Shi Lighting, in charge of Lei Shi Lighting's core business department. His intention to interfere with the company's operations was obvious. Since then, Wu Changjiang began to increase his holdings in the secondary market. As of June 12, 2012, Wu Changjiang's shareholding ratio reached 19.19%, surpassing SoftBank Saifu's 18.48%, and once again became the largest shareholder of Leshi.
After that, the "palace fighting" within Leshi took turns to different battlefields.
Until January 12, 2015, the founder of Lei Shi, Wu Changjiang, was formally approved for arrest by the Huizhou City Procuratorate of Guangdong Province for suspected misappropriation of funds and was sent to prison.
"tricking" the current situation of partners:
November 1st news, Leshi Lighting, which has experienced a struggle for shareholder control and the arrest of founder Wu Changjiang for suspected embezzlement of company funds, announced that all conditions for resuming trading will be met and resumed trading on Monday. Wu Changjiang, the founder who was out of the miserable situation and was imprisoned, was the loser. He also became the only entrepreneur in the history of China's industrialization to be driven out by the capital party three times.
Conclusion:
Using copper as a mirror can correct your clothes, using people as a mirror can understand gains and losses, using history as a mirror can tell rise and fall, and the same is true in the business world. The above-mentioned case of entrepreneurial rookies who died on the eve of dawn is really sad, and there are many traps that cannot be predicted on the road to corporate growth. On the unfinished journey, entrepreneurs must not only be well versed in the ways of corporate management and capital operation; they must also withstand the test of human nature and greed. Making money is a dream, and practice cannot be missed.
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