How did Li Hui “develop” Rui Xing and Lu Zhengyao?


Welcome to the wechat subscription number of “create a story”: sinacchangshiji
Wen / Li Yifan
Source: autocarweekly (ID: autocarweekly)
How terrible is the collapse of human facilities?
You can refer to yesterday’s Luo Zhixiang, 227’s Xiao Zhan.
Spokesperson said to withdraw, drama said to delete, minutes, cool through.
It is said that in the present era, entertainment is “capitalized” and capital is “entertained”. However, every time this kind of collapse occurs, I still want to say that there is an insurmountable gap between circles.
The collapse of entertainment facilities is often a direct one, but there are many exceptions in the capital circle.
After Rui Xinghuang’s death, Lu Zhengyao has been named as a “big liar”, but still can’t cool down.
On April 22, according to media reports, the latest information disclosed by the stock exchange of Hong Kong, car rental in Shenzhou will be increased by two batches of investment from American private equity giant Warburg Pincus, totaling about 363 million shares, with an average price of HK $31009 per share, involving about HK $1125 million (about RMB 1.026 billion).
After the completion of the increase, Huaping investment will hold 577 million shares, with the share ratio increased from 10.11% to 27.22%, replacing Lu Zhengyao as the largest shareholder in car rental in Shenzhou. Lu Zhengyao, the success of the “golden cicada off the shell.”.
Although later, Shenzhou car rental refuted rumors, saying that the increase of Huaping’s investment will take two stages, and only after all of them are completed, will it become a major shareholder in Shenzhou car rental; now, the conditional investment in the second stage of Huaping’s investment is not really completed.
But this only means that Warburg Pincus’s investment in car rental in Shenzhou is still in progress; it will be sooner or later to complete.
Another listed company of Lu Zhengyao, Shenzhou Youche, is also not idle.
After “ruixingmen”, Shenzhou Youche, whose stock price fell in response, entered a debt repayment mode of continuous realization and money seeking to deal with the possible run crisis at any time.
The most recent cash was realized on April 21. According to the announcement of Shenzhou Youche, it is planned to transfer 39.25% equity (that is, all equity held by Shenzhou Youche) of Hebei happy Consumer Finance Co., Ltd., a joint-stock company, to Fujian Youche investment partnership (Youche Industrial Fund) or its subsidiary, with an estimated total transfer consideration of 250 million yuan.
It’s very delicate to say that the “match handle” of Huaping investment and Youche industry fund to Lu Zhengyao seems to be “copying the bottom”, but it’s not so simple.
The background of both companies is related to the same person.
This person is Li Hui, founder and chairman of Dazheng capital.
The Youche industry fund, established in 2017, is the second largest shareholder of Youche, holding 30.75%; Li Hui is its chairman, managing partner and actual controller.
Before he took charge of Youche industry fund, Li Hui was president of Huaping investment in Asia Pacific region and one of the 20 members of Huaping global investment decision-making committee. His position in the “pyramid tip” of Huaping should not be underestimated.
Therefore, it is clear that the two recent transactions in Shenzhou car rental and Shenzhou excellent car are both left-handed and right-handed internal capital operation.
The founder of muddy water, Carson Brock, said more frankly that Li Hui and Liu Erhai were probably the problems of Ruixing.
That’s right. Li Hui and Rui Xing have the same relationship of continuous trimming and chaos.
He and Lu Zhengyao have been locked in a huge network of relations that they used to weave together. They are inseparable from each other.
It can even be said that among those who connived at Lu Zhengyao’s “swindle” in these years, Li Hui is the most inseparable. His dispute with Lu Zhengyao is far less clear than that in Tianyan.
So, I don’t agree that these two transactions are just what the outside world calls “saving” Lu Zhengyao. To a large extent, Li Hui is “saving” himself, and may even think that, while saving himself, he will make another one along the way.
Knight in white, ten years as one
Who is Li Hui?
In the circle of private equity and venture capital, Li Hui’s name is still the best.
When he was young, Li Hui worked for Morgan Stanley and Goldman Sachs successively, and worked on the listing of sina, AsiaInfo and other enterprises. In 2002, Li Hui joined Warburg Pincus, one of the world’s largest private equity funds, to help Warburg Pincus grow in China. Since 2005, the return on investment of Warburg Pincus in China has been higher than its global average return.
Later, Li Hui became the leader of the Asia Pacific region of Warburg Pincus, one of the 20 members of the global investment decision-making committee of Warburg Pincus, and one of the 30 most influential investors in China by fortune.
But his more familiar identity in the community is the husband of Zeng Zimo, the former head of Phoenix TV.
Yes, it was Zeng Zimo who once said, “what’s wrong with a mistress who doesn’t steal or rob?”.
In the years when Zeng Zimo became popular with the theory of “mistress”, Li Hui was not seldom “picked graves” by the gossip media.
Not one family, not one door. So, Li Hui also thinks about “what’s wrong with a company that doesn’t steal or rob leeks”.
Li Hui is Lu Zhengyao’s “knight in white”. He started to be angry in fresh clothes ten years ago.
In 2010, Lu Zhengyao met Li Hui on the financing road of seeking money everywhere. At that time, Li Hui was the head of Huaping capital in China, responsible for the due diligence of Lu Zhengyao and Shenzhou car rental.
At that time, Li Hui intended to invest in car rental in Shenzhou, for fear of losing the case. He also signed a “exclusive protection period” agreement with Lu Zhengyao, which requires Lu Zhengyao not to reach financing cooperation with others when he is doing his best in Huaping.
Unexpectedly, Liu Erhai, Lu Zhengyao’s laodaizi, half stepped in. On behalf of Lenovo investment, he proposed a strategic investment proposal of “1 billion debt + 200 million equity”.
This is not a small temptation for Lu Zhengyao, who is short of money, so he chose to talk to Li Hui and to see if Hua Ping could give the same treatment.
In fact, Li Hui is close to the end of the car rental in Shenzhou, and has a lot of investment intention. But after listening to Lenovo’s plan, Li Hui did something that no one thought of. Instead of using the “exclusive protection period” agreement for protection, he said to Lu Zhengyao, “the investment treatment given by Lenovo cannot be given by Warburg Pincus. You should cooperate with Lenovo.”

Li Hui never disguised his appreciation of Lu Zhengyao. He said bluntly, “Lu Zhengyao is a very data-oriented entrepreneur. He has a very detailed account, strong execution and dare to take risks. I think he has all the qualities that entrepreneurs should have. ”
In this way, in 2010, Lu Zhengyao got the investment of 1.2 billion yuan from Lenovo holdings, and began to burn money crazily.
At the same time, his friendship with Li Hui begins here.
2012 is another difficult year for Lu Zhengyao. In that year, Shenzhou failed to rent a car to go public in the United States, and its debt ratio once exceeded 90%, and its life was in danger.
It was Li Hui who made an emergency move. Warburg Pincus invested 200 million US dollars (about RMB 1.413 billion) to save Lu Yisheng’s life and win the victory of building a seven level pagoda. The $200 million is not only the largest single equity investment in China’s car rental industry so far, but also the largest single investment in China by Warburg Pincus investment as of that year.
“Even though Shenzhou was the smallest of the top three car rental companies at that time, I decided to invest. Lu was always the key factor in that decision.” Li Hui does not deny that this is an investment in “people”.
At the same time, he promised: “the entry of Huaping will provide more powerful support for car rental in China in terms of brand, capital, corporate governance, international resources, etc.”
With the smashing of real gold and silver, the “Shenzhou iron triangle” with Lu Zhengyao, Liu Erhai and Li Hui as the core was formally formed.
In 2014, Li Hui personally went to the United States to help Lu Zhengyao annex the Chinese business of Hertz car rental, an American car rental giant. On behalf of Warburg Pincus, Li Hui also increased investment in car rental in Shenzhou and successfully pushed the car rental in Shenzhou to the Hong Kong stock exchange.
In 2015, Warburg Pincus invested in Shenzhou special vehicle with Shenzhou car rental.
One year after listing, all major shareholders, including Lu Zhengyao, have reaped a lot of cash. Among them, Li Hui’s Huaping investment sold 7.09% of the shares and cashed out 396 million US dollars (about 2.8 billion yuan).
As of April 16, Warburg Pincus investment held 10.12% equity in car rental in Shenzhou. Less investment capital, in Shenzhou car rental investment, Huaping investment made a net profit of about $200 million.
Zhu Xiaohu, who didn’t know him, said, “the most reliable relationship is one that has made money together.”
Intelligent Lu Zhengyao claps Li Hui on the shoulder: from then on, we are the brothers of different parents!
Fight tiger, fight brother, fight father and son
Just depending on the relationship between investment and investee, brother’s mountain top is not reliable.
Lu Zhengyao naturally understands this.
Therefore, in 2016, Lu Zhengyao invited Li Hui to join the company as vice chairman, responsible for strategy and capital operation. From then on, they were tied to a rope.
After Li Hui joined in, he soon helped Shenzhou Youche get 7 billion yuan of financing, including China UnionPay, Shanghai Pudong Development Bank, China People’s Insurance and many other institutions.
After the money is in place, Shenzhou Youche is listed on the new third board smoothly.
As soon as the listing plan was realized, Li Hui and Lu Zhengyao began to work out a bigger calculation.
In June 2017, Shenzhou Youche invested 1 billion yuan in Fujian Youche investment partnership and initiated the establishment of Youche industry fund. At the same time, Li Hui resigned from the position of vice chairman of China Youche and became chairman of China Youche strategic committee, and served as chairman and managing partner of Youche Industrial Fund.
What is the excellent car industry fund for? It’s Li Hui’s best investment.
Facing the whole automobile industry chain, they are looking for emerging companies, including the innovation of automobile consumption mode, new energy vehicles and their upstream and downstream supporting industries and new business models, intelligent driving, related technologies and applications of the Internet of vehicles, etc., to invest in building the human vehicle ecosystem of the Shenzhou system.
According to Lu Zhengyao, the premium car industry fund has been in contact with almost all mainstream new energy manufacturers, and Li Hui has also begun to look for “prey” in Europe and the United States.
They want to invest more “Xiaopeng automobile” in the automobile manufacturing industry, and link up the whole industry chain based on Shenzhou Youche and Shenzhou car rental.
Lu Zhengyao knows that Li Hui is the one who plays the big production game. If he doesn’t give such a plate, he doesn’t have the power to go into the water. What’s more, the bigger the plate, the more money you earn. Why not do it?
It’s your lucky or my lucky
Of course, Li Hui is not a fuel-efficient lamp.
How is it possible for the president of Warburg Pincus investment Asia Pacific region to resign and focus on making money only for those enterprises that can’t take the lead.
Li Hui himself also said that he joined in Shenzhou only because he wanted to manage an enterprise he had invested in, and he never wanted to leave the private equity circle.
So in 2016, as soon as Li Hui resigned from Warburg Pincus investment, he took root in the old bank and registered his own capital.
The first project invested by Dazheng capital is Ruixing coffee.
In July 2018, Dazheng capital led the investment of Ruixing a round of financing of US $200 million (about RMB 1.413 billion), of which Dazheng capital invested US $100 million (about RMB 707 million); in December 2018, Dazheng capital and joyful capital led the investment of Ruixing B round of financing of US $200 million (about RMB 1.413 billion), of which Dazheng capital invested US $80 million (about RMB 565 million). After two rounds of financing, Ruixing’s valuation was successfully raised to $2.2 billion (15.5 billion yuan).
But the position of Dazheng capital in Ruixing’s circle of friends is not just that of the largest external investor.
Every time Ruixing coffee is mentioned, Li Hui is a “we” and “we”. He never avoids his participation in Ruixing, which comes earlier than Dazheng’s financing. “I can say that he is the first founding team member of this company.”
Ruixing’s first shop opened on January 1, 2018, but as early as a year and a half ago, shortly after Li Hui left Huaping, Li Hui and Lu Zhengyao had planned Ruixing’s project.
From market strategy, brand positioning, corporate structure, financing strategy to listing path, all aspects of Ruixing’s business model are discussed by Lihui and Lu Zhengyao.

Even the most basic work, including the construction of Ruixing’s whole underlying technology platform, the standardized process of storefront management, the management of supply chain, the technical team of hundreds of engineers, etc., took Li Hui a year and a half to help Lu Zhengyao polish it a little bit.
Li Hui participated in every important decision of Ruixing coffee from idea to formation to today. He and Lu Zhengyao have a clear division of labor. Lu Zhengyao is mainly responsible for internal management, while he and Liu Erhai are responsible for external capital operation.
Li Hui has great hopes for Ruixing, and he will be called “unicorn” every time he publicizes it.
With rich experience, Li Hui and Lu Zhengyao pushed Ruixing to NASDAQ at the fastest speed. At the time of listing, in the share ratio structure of Ruixing coffee, Lu Zhengyao holds 30.53%, Li Hui’s Dazhen capital holds 11.9%, and Liu Erhai’s pleasant capital holds 6.75%.
A report in “36 krypton” mentions that an investor who has worked with Lu Zhengyao for many times once said: “many people claim to be close to Lu Zhengyao, but only Li Hui is the investor who is really close to Lu Zhengyao.”
The reason is the same reason. It’s because we’ve made money together. Not to mention that people still make money together.
Lucky this game is no exception.
Li Hui is still quietly using the cash out method of renting a car in Shenzhou.
On January 8, 2020, the announcement showed that Dazheng capital reduced 38.4 million shares of Ruixing coffee, the shareholding ratio dropped from 14.06% to 12.15%, and cashed out 230 million US dollars (about 1.6 billion yuan), which has earned back the investment of that year.
Li Hui’s reduction has not stopped, and now, three months later, Dazheng capital’s shareholding ratio has dropped to 7.2%.
This is the same as Lu Zhengyao’s operation of circling money in the way of car rental in Shenzhou and the listing of Ruixing coffee.
Now I even suspect that Lu Zhengyao’s routines may have been learned from Li Hui’s “old driver”.
His influence on Lu Zhengyao may not be described as “connivance”, but he is the initiator of the “ten year one play” of Lu Zhengyao, Shenzhou and Ruixing.
So why do Li Hui and Lu Zhengyao operate this “left hand to right hand”? Because for Li Hui, saving people now is saving himself.
What’s more, Li Hui may still be brewing a bigger calculation.
With his character, he won’t easily let go of Shenzhou car rental, the most marketable asset in Shenzhou.
Why does Huaping’s increase in car rental in Shenzhou need to be carried out in two stages? What’s more, the first stage of HK $2.3 (about RMB 2.1) purchase is unconditional, while the second stage of HK $3.4 (about RMB 3.1) purchase is conditional?
This is actually the usual trick of the capital circle.
First, make a low threshold investment + release the news to create a favorable situation, and stir up the car rental in Shenzhou from the down to 2 Hong Kong dollars to 2.3 Hong Kong dollars (this small goal has been completed at present). In this way, the first stage of the acquisition of Fuying is even better.
Then the two sides take advantage of the second stage of conditional acquisition, which has not yet arrived, and continue to fry the share price all the way up. The most perfect result is to fry it to HK $3.4. Huaping and Shenzhou win-win situation. The market is cut off by leeks, and Lihui people also complete the harvest of leeks at the same time.
In this way, it’s no better than the high price of HK $3.40 (you know, on April 23, the share price of car rental in Shenzhou was only HK $2.34, or after that)?
It’s just that the market of “killing pigs” hasn’t changed for thousands of years. Will leeks be taken in? The leek just cut in early April, will it grow at the end of April?
Forgive me for not being able to judge.
But anyway, I’ve already said that. Next, the vegetables will ask for their own blessings