Jia Yueting, Feng Xin and Lu Zhengyao’s collective “suffocation”


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Ren Jianxin: Zebra consumption
Last week, when storm group withdrew from the market, Lu Zhengyao had no choice but to sell his remaining high-quality assets to rent a car in Shenzhou. Jia Yueting, a bankrupt tycoon, came out from time to time to brush off his sense of existence. The three most famous players in China’s Internet ecosystem are about to come to an end.
In fact, they have much more in common. They all have the experience of resigning and starting a business from within the system. Even the time point of starting a business is almost the same. By drawing the ecological circle pie to the peak, it points to a similar ending.
We can’t assume that if Jia Yueting didn’t burn money to build cars, but continued to circle around LETV. If Feng Xin didn’t buy MPs in a muddle, if Lu Zhengyao stuck to the pedestrian car ecosystem and didn’t burn money to Ruixing coffee or financial fraud, would they still be at the top of the pyramid of Chinese commercial society?
Rock philosophy loves Feng Xin. He will return to Jia Yueting next week, full of vigor and vitality Behind these familiar jokes, the meteor in the history of China’s Internet business is about to fall across the night sky. How can we get here?
1995 was the first year of Internet commerce in China.
China Telecom has opened two Internet access nodes in Beijing and Shanghai. Zhang Shuxin and WAN Pingguo, pioneers of China’s Internet, began to toss about ISP services (Internet access services). Zhang Chaoyang returned home after being gilded in the United States. Ma Yun, a college English teacher, and Ding Lei, a Ningbo Telecom worker, both gave up their official duties in this year to make a breakthrough
The fate of many people has changed.
At that time, the air filled with the smell of money, strange and intoxicated, “the tide” intensified.
This year, Jia Yueting, a 22-year-old network technical administrator of Yuanqu County Local Taxation Bureau in Shanxi Province, was unwilling to be a “rural accountant” and resigned the following year to start an excellent industrial company. After all, small towns in the fourth tier are not as good as Beijing. They sell coal and cement, open steel shops, fast food restaurants, printing factories and computer training schools. They do what they can to make money.
It was not until 2002, when he entered the communication industry mysteriously, that Jia Yueting really opened his own business road. His company sibel landed on the main board of Singapore in 2007.
In contrast, Feng Xin, a Shanxi native who is one year older than him, was much more depressed in his youth.
Born in 1972 in a teacher’s family in Yangquan, Shanxi Province, he barely graduated from Hefei University of technology in 1993, but he didn’t get a degree certificate and was unable to assign jobs. Later, he entered the Yangquan Mining Bureau of Shanxi Province. After only a few months, Feng Xin ran away.
In the following years, Feng Xin, the “Hun Zi”, sold three oral liquids, maintained the BPS machine, carried out coal transportation, and opened a food factory. He still achieved nothing, but became a member of Beipiao.
In 1998, Feng Xin read Luoyang Zhigui’s why Lenovo wanted to apply, but Lenovo didn’t like him. Later, he entered Jinshan software and finally started his Internet career.
During his six years in Jinshan, he met many big men, such as Lei Jun, Zhou Hongyi, Cai Wensheng, and so on. He foreshadowed the rise of his career later. Feng Xin’s life directly transited from autumn to spring.
Of course, I’m afraid only Lu Zhengyao is qualified to say that it was spring before he was 50 years old.
He was born in Pingnan, Fujian Province in 1969. At the age of 18, he entered the computer department of Beijing University of science and technology at the age of 18. After graduation in 1991, he was assigned to Shijiazhuang as a civil servant.
Good civil servants did not do, Lu Zhengyao quit his job in 1994, and within a few years he made more than 20 million US dollars in cash through communication business.
Lu Zhengyao is a big man with round cheeks. He is very similar to Cao Dewang. He is also shrewd and low-key. What he talks about is the consistent business wisdom of Fujian merchants. It will be a long time before people find out that the two Fujian businessmen are on a completely different path.
It was not until 2004 that Jia Yueting, a 31 year old Shanxi youth, came to Beijing and founded LETV. At this time, Feng Xin and Lu Zhengyao have been here for many years, waiting for tuyere.
In that year, Lu Zhengyao inspected Bora Auto Club, the largest auto club at that time, in the name of acquisition, to understand its operation mode. Feng Xin was dug up by Zhou Hongyi to Yahoo China and was in a turbulent period of career.
The next year, Lu Zhengyao founded the UAA United Automobile Club (the predecessor of Shenzhou car rental), and Feng Xin’s hot audio and video was also born in the cracks of a number of video players.
When LETV, the first professional video website in China, was born, the three major video websites, Youku, iqiyi and Tencent video, have not yet appeared. With the help of market opportunities, LETV was listed in 2010 with the support of capital, becoming the first video stock of A-share.
Although both Feng Xin and Lu Zhengyao have made waves in China’s Internet industry since then, their business model is indeed not original from the starting point.
Hot video has missed the player’s first opportunity to obtain users, so Feng Xin had to, with CAI Wensheng’s help, acquire Fengfeng audio and video in 2007 and establish Fengfeng technology.
This time, Feng Xin was right.
According to the 25th statistical report on the development of China’s Internet, there were 384 million Internet users in 2009. Over the same period, the total number of users of storm audio reached 280 million, accounting for 73% of the total number of Internet users, and the number of online users reached 25 million every day. At that time, windstorm video was the third largest software after QQ and Xunlei.
Therefore, when storm technology was listed in March 2015, it coincided with bull market, scarcity of subject matter, concept speculation and other reasons, which promoted the company’s share price to soar.
Windstorm technology is listed as the king of stocks. There are 36 limit boards. The stock price reaches 327 yuan and the total market value exceeds 40 billion yuan. In addition to Feng Xin and many investors, 10, 31 and 66 multimillionaires were born within the company alone.
In fact, before the listing of windstorm technology, windstorm audio and video had fallen behind in the player field, and the stock price deviated from the fundamentals seriously.

In 2014, in terms of the number of users, in China’s video software industry, storm audio ranked second in PC and ninth in mobile. In that year, the company’s operating revenue was 386 million yuan, and the net profit was 41.9415 million yuan.
Who cares? People standing on the hills do not see bubbles. They had only one feeling at that time, and the wind was very strong.
Internet bubble exists, entities do not have?
Jia Yueting and Feng Xin are not from the Internet professional background. Their core business is the Internet. Lu Zhengyao, who graduated from computer science, was a standard anti Internet entrepreneur in his early years.
With the support of capital, Lu Zhengyao transformed into a car rental company in Shenzhou and became the leader in the Chinese market. He successfully landed in Hong Kong stock market in 2014.
Among the three, Lu Zhengyao was the first to show business methodology. For example, investment philosophy, as early as 2008, he wrote an article in “Chinese entrepreneur” that “financing should be done step by step”; the late development strategy, whether it is UAA, Shenzhou car rental or later Shenzhou special vehicle, was founded on the premise that predecessors pay tuition fees and market; as a military fan, he advocates the combination of individual breakthrough and team attack of the army.
After the victory of “price war + scale expansion”, Lu Zhengyao concentrated his resources and launched the Shenzhou special car in early 2015. At that time, the online car Hailing subsidy war was over, and didi Kuai was ready to merge, and it was the right time to move out.
In 2016, Shenzhou Youche company, with Shenzhou special vehicle business as the main body and holding the shares of Shenzhou car rental, was listed on the new third board, which is only one step away from the package listing.
Jia Yueting’s letv.com, Feng Xin’s Fengfeng technology, Lu Zhengyao’s Shenzhou rental car and Shenzhou excellent car failed to let them go to the south.
The pressure is obvious. Although LETV takes the lead, it has no chance of winning in the face of youaiteng and bat behind it; Fengfeng AV has only been a player for more than ten years, and the imagination space of a tool is quite limited; the typical assets of Shenzhou rental car and Shenzhou special car are heavy assets, long cycle and weak profitability.
They all know that the reason why they are famous for a time is because of the capital boom.
On the other hand, expansion. Jia Yueting and Feng Xin successively sent open letters or accepted interviews, summing up the lessons of their failures and saying that they felt omnipotent at that time.
Before the listing of LETV, LETV launched LETV film industry with its content ambition of the platform. Accidentally, it became one of the top four private films in China, and even hung up on Huayi Brothers and Wanda films for a time, which gave Jia Yueting great confidence.
Subsequently, LETV TV, LETV mobile phone, and online wine network successively launched. LETV also acquired the old mobile phone manufacturer, Coolpad group, one of the “China cool union”.
In those years, the skinny middle-aged Shanxi, imitating jobs’ clothes, typhoon and concept, was always about to “subvert” and “suffocate”. Through several speeches and several ppts, he once again expanded his business to new energy vehicles, which was known as “hanging on Tesla”, and created the peak market value of 170 billion yuan in 2015.
Storm technology is also on the edge of the ecosystem. However, on the ability to cheat, Feng Xin is just Jia Yueting’s younger brother.
After listing, Feng Xin hopes to graft VR and TV business to Fengfeng technology, and the company is renamed Fengfeng Group.
However, VR has no content soil. Whoever runs first will die first. In 2018, Feng Xin launched the all for TV strategy, making a bet on the storm TV that sells one at a loss.
It’s nothing. At most, it doesn’t make money. Anyway, it’s the capital market that pays for it. The acquisition of MPs, a sports copyright company, is the main culprit pushing Feng Xin into a dangerous situation.
In the early years, storm missed the best opportunity for video player content layout. Later, its own performance growth was weak, and the story of the ecosystem was not able to continue. It had to return to LETV’s old way of burning money.
Of course, it was Lu Zhengyao who really brought the ecosystem to the ground.
In the man car ecosystem built by Lu Zhengyao for several years, Shenzhou excellent car and Shenzhou car rental are the two cores. The former mainly deals with special cars in Shenzhou, buy and buy cars in Shenzhou and flash loan in Shenzhou. The latter focuses on car rental business. In addition, baowo auto, which was later acquired, is built in Shenzhou, purchased new cars, rented (or run special cars) – sold used cars, forming a complete closed loop.
In the middle of those years, the overall performance of the Shenzhou department was under pressure. However, some companies were able to achieve rich profits through the collapse of affiliated companies.
“In the Internet era, when people return home after a busy day, with the flick of their mobile phones, LETV’s high-definition films appear on LETV’s super TV in the living room, have a glass of French red wine ordered at the online liquor store, and watch the film” little times “produced and released by LETV pictures. This is the ecological scene of LETV once described by Jia Yueting ting.
The reason why the ecosystem is attractive is that it can help you eat out all the value in the advantageous scenario.
This is a kind of monopoly. Otherwise, Jia Yueting, Feng Xin and Lu Zhengyao could not blow the bubble to such a big size.
However, they ignore the core conditions, and the ecosystem must be built on the basis of a certain number of users and naturally extend.
Some time ago, “Tencent Ali’s 20 trillion Empire ecosystem” triggered discussions. In fact, this is not an exaggeration. If you look at the “shopping” and “games” on page 3 of the wechat menu bar, and the submenu “Jingdong”, “meituan”, “cat’s eye”, “pinduoduo”, “mushroom Street”, “vipshop”, “zhuanzhuanzhuan” and “shell looking for a house” in “payment” on page 4 of the wechat menu bar, you will know how big the wechat ecosystem is, and this is only one part of Tencent empire Points.
How many people pay for LETV and storm TV? Millet, glory is not fragrant? SKYWORTH and TCL, which the older generation likes, seem to be no worse. The brand power based on users is not enough to support the premium. How long can the loss be sustained by subsidies? Relying on the feelings of fans, who can cheat more than Luo Yonghao?
Baihe.com, a dating community, also wanted to create a “love and marriage ecosystem” a few years ago to help men and women make friends and make blind dates only once. Wouldn’t it be nice to have their wedding photos, weddings, wedding banquets, and maternity clubs done together?
However, the concept of “marriage ecosystem” has not been mentioned in recent years.

The focus of the ecosystem is to cross-border, constantly fission new business, but not to let you cross-border randomly.
LETV’s layout, LETV film industry is the most appropriate cross-border, even including LETV’s mobile phones and LETV’s, to connect the upstream and downstream platforms, content and hardware. But what’s the ghost of LETV?
It’s a good story about the Shenzhou car ecosystem, but why make lucky coffee? Baowo did put a lot of advertisements on Ruixing’s coffee cup. If that’s all, Lu Zhengyao might as well go and have a relationship with Jiang nanchun.
Baihe.com’s peer, zhenai.com, is ready to list in 2017. The former main business of German Austrian general aviation was small household appliances, but its later transformation was hindered.
In the reorganization plan, the company mentioned that it was ready to analyze more than 100 million real name registered users of zhenai, so as to lock customers for the company’s electrical business and general aviation business. Treasure net recharge power transmission rice cooker? Offline matchmaker pairing success free private jet? This is the typical random string.
At the climax of the ecosystem, no one cares whether the blueprint can be realized or not. They only care whether the stock is accepted.
In May 2016, the New Fortune 500 rich list was released. With 64 billion yuan of wealth, Jia Yueting’s family tied for the eighth place with the beautiful he Xiangjian family, ahead of Xu Jiayin and Liu qiangdong.
The most brilliant fireworks always fall first.
At the end of that year, the LETV crisis began to emerge. Jia Yueting began to retreat from the LETV system. He ran to the United States at the end of 2017 and didn’t come back. Before leaving, he pulled sun Hongbin on the back.
Jia Yueting’s label, from “subversion” and “suffocation”, has finally become: when will Jia Yueting return home?
It may be controversial who has made the most progress in China’s rich list, but no one should dare to compete with Jia Yueting if he runs the fastest.
Since several years ago, some people often say that Fengfeng Group may become the next LETV. Shenzhou is a long-term left-handed and right-handed game, and one day it will not be able to play.
It’s not because of foresight, it’s not because of three people, it’s just because some people are still willing to believe those simple truths: business is to make money.
Until MPs, which spent 5.2 billion yuan to acquire less than two and a half years, went bankrupt and Fengfeng Group collapsed completely. After the compulsory measures were taken in July 2019, people pieced together all kinds of information to know how Feng Xin used RMB 200 million to pry the 5 billion leverage with the first recruitment behavior through Everbright.
This old Internet gun who likes rock and roll and philosophy, often reads “the moral scripture” and “John Christophe”, is full of quack and self described as a “bastard”, leaving only a lonely figure to the public.
Lu Zhengyao lived longer. If it had not been for the financial fraud of Ruixing coffee in early 2020, the story of the pedestrian car ecosystem would have been told for several years.
I can’t help it. The Department of Shenzhou had a deep connection. At that time, Ruixing coffee exploded, and the share price of car rental in China was cut off. Finally, Lu Zhengyao had to sell off his shares of Shenzhou car rental to fill the hole. After the decline of its business and the loss of control over Ruixing coffee, Shenzhou car rental became the only high-quality business.
If there is no criminal responsibility involved, Lu Zhengyao should be the one who is most likely to withdraw.
At that time, China invested a lot of external assets, such as the equity of child king company, which was queuing up for IPO. If you sell iron through a pot, you can still be a rich man.
Although Jia Yueting has been bankrupt, as long as he does not return to China, he can still live in a big villa in the United States.
Feng Xin, who carried everything on his own, was doomed to prison, and his wealth had already disappeared. The winter of life is coming.
After Feng Xin’s accident, a number of big men issued articles to support him, including Cai Wensheng, a well-known investor. Through the storm group, Cai Wensheng made about 840 million yuan.
In fact, behind Feng Xin and Lu Zhengyao, there are not a few people who make a lot of money by cutting leeks. Of course, there are also mysterious people in the legend behind Jia Yueting. If it were not for them, the bubble of the storm, Shenzhou and music should at least shrink by half.
After that, I jumped out and sighed, isn’t this cat crying for mice?