Lynch’s children fight for property: how much wealth does the “leaving youth” leave behind?


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Source: damofinance (ID: damofinance)
Youzu building is worth billions
After the death of Lynch, former chairman of Youzu network (002174. SZ), a battle for heritage is starting.
Lynch, a 39 year old Internet game tycoon and founder of Youzu, died at Christmas 2020 after being suspected of being poisoned by his subordinates at the end of last year. This strange event happened so suddenly that Lynch didn’t leave a will before his death, and the handling of his affairs is quite remarkable.
Youzu network announced on the evening of January 11 that the shares of Youzu network held by Lynch before his death were equally inherited by his three minor children, Lin Xiaoxi, Lin Ruijing and Lin Li, who jointly held 23.99% of the shares of Youzu network as the persons acting in concert.
At the same time, as the three heirs are minors, their mother and legal guardian Xu Fenfen exercise the shareholders’ rights and interests on their behalf. After the change of equity, Youzu network has no controlling shareholder, and Xu Fenfen is the actual controller, and Xu Fenfen will inherit and fulfill Lynch’s related commitments on behalf of the company. However, the announcement of Youzu network did not indicate whether Xu Fenfen and Lynch are husband and wife.
Soon, the next day, a microblog netizen named “sweet and sour ridge” posted an article, claiming that Xu Fenfen and Lynch had divorced for many years, and Lynch had an illegitimate child with his sister.
“Sweet and sour” said that his sister and Lynch had a son “Lin Zhengqing” after they met in 2019, but they have not yet registered for marriage. The netizen said that after Lynch’s accident, Youzu network has been preventing its sister and children from seeing Lynch for the last time, and knowingly does not recognize Lin Zhengqing’s legal successor status, on the contrary, it has cooperated with Lynch’s ex-wife to handle share inheritance.
“Sweet and sour ridge” posted a medical birth certificate of “Lin Zhengqing” issued in December 2020, showing that his mother was 31 years old and his father’s name was Lynch. According to a lawyer’s letter posted by the netizen at the same time, Lin Zhengqing’s legal guardian contacted you online many times, but did not get a reply. Therefore, the lawyer on behalf of Lin Zhengqing asked you network to promote paternity testing as soon as possible, so that Lin Zhengqing can get the same right to know and inherit as other children of Lin Qi.
The media immediately checked with Lin Zhengqing’s representative in the lawyer’s letter and confirmed that the lawyer’s letter was true.
According to the information disclosed by, Xu Fenfen is a Singaporean and his three children are Chinese.
Caixin’s latest report quoted sources as saying that Lynch took Xu Fenfen and his children to Singapore for a holiday in the second half of 2020, when Xu Fenfen was Lynch’s wife.
Youzu network announcement shows that except for Lynch’s three minor children, the rest of the heirs voluntarily give up the right of inheritance. However, according to the civil code, “children born out of wedlock enjoy the same rights as children born in wedlock.” If Lin Zhengqing does give birth to Lynch’s illegitimate child, he will have the same inheritance right as other Lynch’s children.
It is worth noting that if netizens reveal that illegitimate children join the inheritance, Lynch’s 23.99% equity of Youzu network will be further evenly distributed, which will result in the total shareholding ratio of the three heirs disclosed by the current listed company being less than 18%, which will undoubtedly weaken Xu’s ability to control the listed company, and even lead to the loss of his status as the actual controller of the listed company.
Assuming that Youzu network knows about Lynch’s illegitimate children in advance, and may have a significant impact on the equity of the listed company due to the inheritance dispute, there will be major defects in the disclosure of Youzu network’s equity and the change of actual controller.
Wealth geometry
As a new upstart of the game, Lynch has accumulated a lot of wealth. In the “Hurun post-80s self made rich list” released in November 2020, Lynch was selected with 6.8 billion yuan.
One of Lynch’s core assets is the equity of Youzu network, a listed company. Lynch is the founder of Youzu network. After the backdoor listing of Youzu network in 2014, Lynch’s wealth has increased dramatically. He held 23.99% equity of Youzu network before his death, which is worth 3.1 billion yuan at the closing price on January 11. However, Lynch pledged most of his shares before he died.
However, Lynch still has a lot of assets outside the listed companies, the most important of which are the Youzu building, which is located on the riverside of Xuhui, Shanghai, and the “three body” copyright, which makes Lynch famous.
During his lifetime, Lynch greatly reduced his shareholding in Youzu network. From July 2019 to July 2020, he cashed out more than 1.6 billion yuan. It is speculated that the capital mainly flows to the Youzu building under construction.
As early as 2015, Lynch established Youzu real estate in his own name and bought a plot of the media port on the West Bank of Xuhui riverside in Shanghai for the construction of Youzu building. Xuhui riverside has developed rapidly in recent years, and it has become a new commercial and residential area. The West Bank media port is also located in the core golden area of Xuhui riverside, and is committed to building a cultural and creative highland in Shanghai. Tencent, Netease and Youzu all take the land to build office buildings here.
Youzu building is located on the Bank of Huangpu River. It has an excellent view of the river, with a floor area of about 76000 square meters. It is planned to be composed of a 31 storey office building and a commercial and entertainment center. Lynch spent a lot of money and energy on the construction of the new headquarters building in 2018, which entered the interior decoration stage after the top was sealed at the end of 2019, but Lynch has no chance to usher in its completion time in 2021.
In 2015, the land price of Youzu building was not high. By 2018, when Netease acquired a piece of land of almost the same size in the adjacent location, the land price had reached 1.96 billion yuan. According to the current market price estimation, the value of Youzu building is at least 4 billion yuan, which is the largest single asset owned by Lynch.

In addition, Youzu real estate also owns youxigu cultural and sports industrial park and the three body science fiction film and Television City under construction. Among them, youxigu cultural and sports industrial park was originally the factory area of Shanghai Yahua printing machinery factory, which was transformed into a commercial leisure ecological community by Youzu real estate. It has several main buildings and sports and entertainment projects, with a building area of nearly 40000 square meters. Santi science fiction film city is an important part of Shanghai Songjiang Science and technology film capital project. In 2018, Youzu real estate signed a letter of intent for strategic cooperation with Yongfeng street, Songjiang District, and agreed to build a three body science fiction film city project in Shanghai Songjiang Science and technology film capital.
Lynch’s acquisition and operation of the copyright of the well-known science fiction “three body” caused widespread concern. At present, the main body of the global copyright operation of “three body” is Lynch’s “three body universe”, which is the major shareholder. Last year, the copyright development of “three body” was gradually on the right track. Netflix has been authorized to develop and produce English series TV series of “three body”, and the online series of “three body” cooperated with Tencent video has also been completed. Recently, Youzu network announced that it will officially launch the “three body” game project.
Recently, there are media reports that after Lynch’s death, the Shanghai Gubei No. 1 mansion he held through Nanjing qiku network technology company is being sold by his family members, which is worth more than 100 million yuan.
After Lynch’s death, there is no final conclusion on the battle for the legacy. What investors are more worried about is: without the helmsman, how to develop the online business of Youzu?
After Lynch’s death, announced that the company was running normally. Among them, Xu Bin, director, deputy general manager and Secretary of Youzu network, acted as the chairman of the board of directors, and Chen Fang, deputy general manager, acted as the general manager. Youzu network said in the investor survey that the division of responsibilities between the two has not changed much after acting as agent. Chen Fang is responsible for the business line and the company’s strategic line, Xu Bin is responsible for the capital market, investment, etc., and the business strategy and major issues of Youzu network are collectively decided by the management.
On January 13, issued an internal announcement that the company’s annual meeting was held as usual.
However, the performance of Youzu network in the first three quarters of 2020 has dropped sharply, with a revenue of 3.724 billion yuan, a year-on-year increase of 40.95%. However, Youzu network has fallen into the dilemma of increasing revenue but not increasing profit, with a non net profit deduction of only 353 million yuan, a year-on-year decrease of 42.87%.
Without Lynch, how will the network develop in the future? It will take time to give an answer.
(statement: This article only represents the author’s point of view, not Sina’s position.)