What’s Wrong With Me Being a Rich Man? - Chapter 279

Chapter 279: Bottom support (5k)

  Across the mountain peak appeared.

This time, it is still accompanied by deception forever.

Following Huaxia Forest Holdings, it once again initiated doubts about the two companies. Unexpectedly, in addition to Huaxia, there is another American company that is not listed but highly favored by Wall Street.

As a very active bear with outstanding achievements in the past two years, the data of listed companies has been reported on the side of Kushanfeng. Major financial media have reprinted relevant news and launched a detailed study on the target.

Huaxia Express Channel.

An advertising company that went public on OTCBB through backdoor acquisition and just transferred to Nasdaq in June this year.

And, this is not the first time it has been questioned this year.

In August, Citron, a US short-selling institution, had doubts about it, which once caused the stock price to fall from $12 to $8.

However, Huaxia Express Channel quickly fought back and held an investor meeting at Shangri-La Hotel in Mindu. It also invited CCTV to investigate the company and bus company’s personal statements to prove the existence of the company’s business and operating entities.

In the end, Citron’s doubts were left unresolved.

After more than three months, Kuoshanfeng has set his sights on it, and this time the question is a more specific business comparison and data issue.

 Guoshanfeng compared the industry companies for financial comparison.

Huaxia Express Channel announced that it has an advertising screen of about 55,000 yuan, and its Q2 revenue was US$53 million, while another industry-owned China Television Media, which has a screen of 120,000 yuan, only received US$31 million in Q2.

At the same time, the screen of China Television Media is located in high-value areas in big cities such as Beijing. According to the market conditions, it should have higher unit returns than bus advertising covering second- and third-tier markets.

The gross profit margin announced by Huaxia Express Channel is as high as 73%, which is not only far higher than the industry average, but is even higher than the leading Finn Media, which has only obtained a Q2 gross profit margin of 67% through its business model and scale effect.

The contradictions revealed by data such as revenue, gross profit margin, and operating scale are difficult to explain.

In addition, Kuoshanfeng provided testimony from the front line, and obtained the sales quotation list of Huaxia Express Channel by pretending to be a customer, which clearly stated that the company’s advertising network has 12,500 vehicles to provide.

However, the data of Huaxia Express Channel in its financial statements is 27,200 vehicles, which is 2.176 times the actual data.

In addition to the data, Guoshanfeng also showed inquiries about Huaxia Express Channel’s partners, which claimed to cooperate with 13 vehicle operators, but only half of the inquiries called past admitted, and the vehicles they actually operated were far smaller than the numbers claimed by Huaxia Express Channel.

At the end of this question, Guo Shanfeng asked Deloitte, one of the world’s four largest accounting firms, across the air, and asked it to be responsible for the relevant audits. It was precisely because of Deloitte’s affirmative opinions on the financial report that Huaxia Expressway was able to successfully transfer to the Nasdaq.

Different from Citron’s last action, this time it has raised a comprehensive question on the specific business, financial report and industry standards of Huaxia Express Channel.

Similarly, unlike Citron, Bridge Mountain has been a win-win bear so far.

About 80% of the survey report issued by Guoshanfeng this time questioned the Huaxia Express Channel, and the remaining 20% ​​was left to Theranos, a blood test company founded by “female Jobs” Holmes. It is said to be able to subvert traditional blood tests. It only needs to collect one or two drops of blood with your fingers to detect a series of diseases, from cholesterol to cancer, and the price is only one tenth of the traditional one.

Guo Shanfeng did not talk about Holmes’ imitation of Jobs’ words and deeds. What he provided to the outside world were several anonymous remarks marked as company employees, claiming that only a dozen blood tests the company can perform now are own equipment, and the remaining tests are all made of cracked versions of Siemens instruments.

And, the unified understanding of founder Holmes from employees is that she has a religiously fanatical belief in the innovation of blood testing, but her knowledge base in science and medicine is quite weak.

The research report is also quoted from the evaluation of medical experts in the industry, and does not believe that current science and technology can complete innovations in detecting various diseases by dropping blood.

Guo Shanfeng gave his own evaluation of this project: This is another perfect bubble, but it is no different from the myths we dismantled in the past. After peeling off the layers of packaging, there is only blasphemy of science and mockery of investors.

One is a Chinese listed company with a market value of US$600 million, and the other is a star entrepreneurial project that is highly favored by Wall Street.

Before the parties involved responded or the regulator launched an investigation, many media have taken it as a matter of course to initiate a judgment on the two. Huaxia Express Channel and Theranos must have committed fraud!

Why so sure…

The data looks reasonable. The former has first-tier sales figures, which are obviously inconsistent with the financial report. The latter has internal employees’ revelations. Since it is taken out, it will not be aimless.

Most importantly, the market value of Huaxia Express Channel is only US$600 million!

Look at the targets that people used to take action before crossing the mountain. Which one is not a size of billions of dollars. Even if the last Huaxia Forest Holdings was more than one billion dollars, then look at these two…

One is only US$600 million, and the other is not listed anyway.

As for crossing the mountain peaks, do you talk nonsense for such a small thing?

With the re-dissemination of “deception eternal”, the trust tone of Chinese and foreign media is similar, and foreign media have even called Deloitte directly, hoping to get an explanation from this well-known auditing agency and ask it to respond to the questioning of the mountain.

However, Deloitte remained silent and was unwilling to respond to related issues.

This attitude of no minimum support is interpreted by the media as “Deloitte probably knows what he did” or “Deloitte may believe in the peaks more than he has passed.”

The audit is silent and the supervision has not taken action yet, but the secondary market’s voting with its feet is very rough.

Just the second day after Bushanfeng appeared, the stock price of Huaxia Express Channel was halved, and its market value evaporated by US$300 million, becoming another footnote to the value of Bushanfeng.

At the same time, because of this influence, many media have called “crossing the mountain peak” “famous bears”.

The title of the Penguin for this action to cross the mountain is – the fatal attack of the well-known bears.

Yu Xing saw this report from Penguin and found that the content was quite positive.

Domestic media mainly report and pay attention to the Huaxia Express Channel that was revealed this time, while a considerable number of foreign media are more interested in Holmes, who is “dropped out of school, subversion, entrepreneurship goddess, Female Jobs, and the next Bill Gates”.

Wall Street has previously reported on her company and projects, and many bigwigs have endorsed her, and this time she encountered a mountain…

Holmes’ reaction was faster than Huaxia Express Channel. She accepted a telephone interview with the media, claiming that “the investigation of crossing the mountain peak is false, one-sided, and irresponsible”, but at the same time, she also admitted that “technology innovation requires time and also tolerant.”

The news about this person will probably struggle in public opinion for a while.

However, she is just an add-on to this round of action of Shanfeng, which is easy to do and will not generate any profit. No matter how hard she makes her argument in the future, Shanfeng will not pay attention to it.

On December 9, just as WeChat company was about to launch a new round of financing, Yu Xing received a call from Zhang Suyang after getting off work.

Zhang Suyang praised the recent work of WeChat company as usual, and talked about the positioning and expansion of user groups. Finally, he mentioned the revenue issue with a little hesitation.

“Mr. Yu, WeChat’s revenue is a long-term goal, which will indeed put pressure on the company’s competition, and institutions are now in a sluggish mood…”

Yu Xing was mentally prepared when answering the phone call. He heard this and said, “Mr. Zhang, you can say it directly. No matter what new decision IDG has, I can understand it. Of course, I still think that the equity of WeChat company is valuable.”

“Today’s capital exit, well, this is mixed with Mr. Xu’s emotions. To be honest, Mr. Yu can fill it with traffic from different companies, which is beyond my expectations.” Zhang Suyang said a little straightforwardly, “Qiming Venture Capital is unwilling to follow this round now, because the development of WeChat companies is becoming more and more risky.”

The user scale of WeChat companies is close to the goal agreed in the previous round of financing, but today Capital and Qiming Venture Capital have withdrawn one after another, which has caused great changes in things.

Yu Xing said: “Mr. Zhang, if it were simply because of the vacancies of Qiming Venture Capital’s withdrawal, Kestrel Capital would make up for this.”

Zhang Suyang didn’t expect Kestrel to be so firm, and he swallowed back what he wanted to say for a moment. Yu Xing waited for a few seconds, but before he could wait for the voice from the other side, he continued, “Kestaffa had received $10 million from today’s capital, which is enough to make up for the withdrawal of Qiming Venture Capital.”

Zhang Suyang couldn’t help laughing when he heard this source of funds: “Mr. Xu also left a gift.”

He sighed, pondered for a moment and said, “Let’s do this, Mr. Xiong will contact you a little later.”

Yu Xing felt a little calm, this sounded not a good word.

He stopped driving to Xiaoying’s side, bought a pack of cigarettes, and strolled in the community while smoking, and calculated the gap after IDG also quit.

According to the initial estimate, this is a round of financing of about US$36 million, and the traffic received last month is worth US$17 million, which is more than the 12 million US dollars of today’s capital on paper, but due to the premium factor, there is actually not much more.

Qiming Venture Capital’s withdrawal was compensated by Kestrel, and behind it was Guoshanfeng’s surprise fundraising for Huaxia Express Channel. If IDG also withdrew, even if Guoshanfeng still had a “journey world” that was also a “journey world” that was also full of loopholes, because it still needed to maintain its short position in Penguin, and the subsequent follow-up was relatively barely.

WeChat company is already doing its best, and the chips in the hands of the mountain peak are almost running out.

Yu Xing was smoking slowly. It was going to rain. Now, if IDG retreated, it would be impossible to stop it. He could only let Zhushanfeng adjust his position as much as possible. Unfortunately, in addition to the losses of this kind of position adjustment, the fraudulent company with high certainty cannot play its full profit role, which is also a huge loss.

If you can wait until this round of battle with Penguin is over, you can get more capital in your hand and continue to short the profit is the greatest.

Similarly, if Penguin fails to short, it will leave a “journey to the world” and there will be chips to make a comeback.

Yu Xing frowned and smoked and waited for the phone call.

At 7:30 pm, a phone call from Xiong Xiaoge came in.

“Mr. Yu, what do you say?” Xiong Xiaoge asked when he came up.

Yu Xing was stunned: “Mr. Xiong, I’m waiting for your decision.”

“It’s a bit difficult.” Xiong Xiaoge said quickly, “Can you still fight? Is there still hope?”

Yu Xing is a person who likes to communicate directly. At this moment, listening to the other person’s attitude, he gave a cautious answer: “Hope is shrinking, Penguin’s determination and resources are greater than the initial imagination, but WeChat company still has value worth investing.”

“From the current situation, WeChat should have developed silently at the beginning, but this is just a hindsight. We cannot accurately predict it without really seeing Penguin’s response. This time, whether it is Pony or Penguin, their reactions and adjustments are very fast.” Xiong Xiaoge said bluntly, “Today’s withdrawal of Capital and Qiming Venture Capital are all judgments that agree with mainstream opinions, and WeChat companies have no chance.”

Yu Xing turned his mind.

Xiong Xiaoge did not stop and continued: “I have considered a way to deal with it before, which is to inject listed companies in reverse, but this kind of attempt is basically hopeless. The main reason is the value recognition of WeChat companies. However, I talked to Baidu’s Robin last week and talked to him about the development of mobile Internet.”

Yu Xing said in surprise: “Did you chat with Li Yanhong? I also went to Baidu last month, but I didn’t see him, so Baidu is unwilling to invest in WeChat traffic.”

“Yes, we have invested in Baidu in our early years, so we can still talk about it.” Xiong Xiaoge briefly mentioned the relationship in the past. “He basically agreed with my judgment on the importance of mobile Internet, and also agreed with the rare threat of WeChat to Penguin. So, now there is good news and bad news. Which one do you want to listen to first?”

Yu Xing thought for three seconds and said, “Good news.”

“The good news is that Baidu agrees with the value of WeChat, and the bad news is that Baidu agrees with the value of WeChat, so if it wants it, it will all.” Xiong Xiaoge made the matter clear directly.

Yu Xing pondered: “I want it all? Is Baidu’s intention to acquire it?”

“Robin’s original words are that since WeChat is of great significance to our Baidu, if you want to buy it, buy it directly.” Xiong Xiaoge explained, “He is unwilling to invest and is willing to buy it at a good price when WeChat finally needs to be sold.”

Yu Xing understood the meaning: “Baidu is willing to acquire it at a discount.”

“Robin believes that it is dangerous to compete with Penguin for instant messaging, and you should also feel Pony’s reputation. No matter how everyone talks about Penguin, Penguin’s current business achievements are placed there. Therefore, Pony came out to emphasize the competition with WeChat, and the external financing of WeChat companies has cooled down.” Xiong Xiaoge added another point, “In addition, although Baidu is unwilling to invest in WeChat, it recognizes you. If you are willing to go to Baidu, you are still one of the people in charge of WeChat’s business.”

Yu Xing was a little amused and crying: “Baidu still wants me?”

“Pony has his reputation.” Xiong Xiaoge smiled, “You have the reputation to fight against him. If you go out and go around, you will get a lot of traffic. Everyone also sees that WeChat company can do it from scratch to the present.”

Yu Xing sighed: “Is that true?”

Xiong Xiaoge was a little serious: “Yes, let me know in advance that the Internet Summit Forum will be held in Pengcheng in March next year, and you are also one of the guests. Well, the founder of the third largest instant messaging company in China.”

He didn’t hear the sound on the phone and smiled, “Look, it’s somewhat prestigious. Did you go to be an audience last year? It was just that Tang Jun.”

Yu Xing almost forgot about this. When he heard this, he was really the audience who attended the summit forum last year, and he became a guest next year when he was invited.

He didn’t feel much comfort in his heart, but just said, “I don’t want to go to Baidu.”

“I guess you don’t want to go either. I just tell you that WeChat companies are indeed valuable. We can find Baidu to deal with it in the final solution. If you are unwilling to give up on this competition, you can also change your mind to go to Baidu.” Xiong Xiaoge said.

Yu Xing said with certainty: “I won’t go to Baidu.”

“If WeChat completely fails…” Xiong Xiaoge paused, “I know you still have Bai Xiaosheng, but Bai Xiaosheng will have to go public this year and can’t wait any longer.”

Yu Xing asked, “Why?”

“Recently, the Peak who has targeted Chinese stocks, has successfully shorted domestic companies again, which has affected the reputation of Chinese stocks. In addition, there is a dispute between the domestic and the United States over cross-border audits. Both sides have to negotiate audit drafts, which is not a good sign.” Xiong Xiaoge said seriously, “If it is not listed as soon as possible in the near future, it may encounter very complex system problems in the future, which may be difficult.”

Yu Xing was surprised and sighed: “Ah? Why is it so bad to cross the mountain!”

“What’s embarrassing is that there are problems with the targets found across the mountain peak.” Xiong Xiaoge didn’t want to talk about the short seller, and finally said, “IDG will still invest this time, and Baidu’s bottom line should be fine, but due to the changes in the current situation, the valuation of WeChat company will be 20% off. Mr. Yu, this may be our last support.”

Yu Xing said in one sentence: “Mr. Xiong, I’m so grateful.”

“Entrepreneurship has never been smooth sailing. It is rare for WeChat companies to reach today.” Xiong Xiaoge comforted him, “As of now, WeChat is still behind. If we can continue to push the user scale of WeChat, it may not be a loss to sell it to Baidu in the end.”

Yu Xing asked at this time: “Mr. Xiong, can you talk to Alibaba?”

Xiong Xiaoge smiled and said, “Do you think I didn’t look for it? Ma Yi is not interested in this area. He is busy with Yahoo. He also has his own problems in this round of Chinese stocks. Alipay has caused distrust of overseas VIE architecture.”

“Well, Mr. Xiong…” Yu Xing thought, “I can operate.”

Xiong Xiaoge agreed: “WeChat company has been operating well. Mr. Yu, don’t be under too much pressure. The value of WeChat will not be ruined. I will talk to Today Capital and Qiming Venture Capital again. If Penguin wants to buy it, it probably won’t give it a high price. It’s better to sell it to Baidu.”

Yu Xing sighed, “Okay, Mr. Xiong, I won’t go to Baidu. WeChat can still operate and operate it. At least, all the magazines can be empty, which can also increase the corresponding value.”

  The magazine knocks out the empty space, completely turning from long to short, leaving the penguin in a lasting competition.

WeChat company did not pay, but Alipay is another competitor.

If the penguin wants to end the battle quickly, it will bring a little impact to its strategy.

(This chapter ends)