Shi Yuzhu: From The Investment Maniac To The Coward Capitalist

Now Shi Yuzhu is in spanition, though he is the boss of a listed company, but his investment style has become more cautious than before. This contrasts sharply with his previous "violent storm" style of investment.

This is a new Shi Yuzhu, a mad investor who "cares nothing" becomes a "cowardly" prudent capitalist.

He said he was timid.

In the years since the giant online, playing seems to be Shi Yuzhu's key word for some time. The giant's employees say that the boss plays "zombies" every day. He is the chief experience officer of the company's online games. Interest is work, work is life, how many entrepreneurs can it do? But the most important thing is that Shi Yuzhu is still well capitalized.

From the open account, the giant network reported in the fourth quarter of 2010 that the company had a cash reserve of US $more than 900 million. After the announcement of the issuance of shares by Minsheng Bank, the company announced that it would subscribe for 1 billion 424 million shares, 4.57 yuan per share and 6 billion 500 million yuan. In addition, he also took part in the Huaxia Bank and other small listed companies, but only to the team to take care of it.

Just like the free travellers in Wuxia, he has no door and no pie, but Wu Yi is strong. Everything he does is temperaments. All the other schools respect him for three points. But in the face of this situation, Shi Yuzhu said he was timid.

"I used to be super daring, and now I am super timid," Shi Yuzhu now commented on himself. Bid farewell to the nightmare of the 70 storey old giant building. The giant network headquarters in Shanghai seems to grow steadily from the ground floor, with only three floors. Shi Yuzhu said he was afraid of heights, but a metonymy.

It seems contradictory. How can Shi Yuzhu be timid? - the capital market often runs billions of scale. From "journey" to "Journey 2", the business mode of online games is overturned. When entering health care products and liquor industry, the development of two formats is already in the ascendant. Why dare a small person dare to enter?

"In the past, ten things were done in one year, and then only three things in ten years," he said. Moreover, he has repeatedly stressed that zero liabilities and high liquidity. Compared with the short cycle of the rise and fall of the game industry, the banking industry will continue to grow more. It will be easier to cash in and choose the two tier market, which will make the company's capital reserves more stable. Through this combination, we can see more stability.

Now, Shi Yuzhu quipped himself: "I have some leisure. The health care products business has been away for 8 years, and has participated in the annual meeting once a year. Online games business, my only job is to test games, and personnel, finance, management and so on have already been assigned to President Liu Wei, who are doing better than I am; investment business: the main investment bank, after they are finished, they have nothing more to do.

Perhaps it is what he calls "cowardice" that makes the present "carefree". {page_break}

Capital, only big.

"Investing in ten or one hundred million projects is definitely not as good as investing in a one billion project. If you invest in a one billion project, you can stare at it every day, and you can't stare at ten one hundred million of them."

In January 7th of this year, Minsheng Bank announced the issuance of shares, and the company bought 1 billion 424 million shares and locked in a 3 year investment of 6 billion 500 million. The company's previous main business was platinum, which was launched 8 years ago. The company's loan is zero, but there are many debt obligations to other companies of the giant, which are the mainstay of giant investment. At this point, the giant capital battleship invested by the giant has surfaced again.

In fact, ten years ago, Shi Yuzhu began to buy and sell stocks, and he always had a liking for "big deal".

Investment in the banking industry should be traced back to the initial stage of Minsheng Bank. At that time, banks were all state-owned and private enterprises loans were a difficult problem. When private entrepreneurs get together and chat, they mention that there should be a bank of their own. Shi Yuzhu said he can not remember who proposed it. Anyway, the more heated discussions we had, the later we found the Federation of industry and commerce, then reported it, and finally got the reply.

As one of the sponsors, Shi Yuzhu provided an early 250 thousand yuan fund for activities, and later when he handed in the registered capital, the giant building crisis broke out and he failed to become the original shareholder. Today, Shi Yuzhu is not the top 10 largest shareholder, but one of the 18 directors is a non-executive director.

Later, by obtaining a large amount of cash reserves from the health care products business, the giant resumed its fighting capacity again. Shi Yuzhu reentered the block trading. First, he bought the four way auction's Huaxia Bank shares, and the second one bought some shares of the Shougang Group to become the majority shareholder, followed by the wind energy field.

In addition to a preference for the liquidity and security of listed banks, Shi Yuzhu also invested in some unlisted banks with low price and low cost four or five years ago, such as Beibu Gulf Bank of Guangxi, which accounted for 9.9% of the shares and invested about 3000000000 Yuan.

In the future, Shi Yuzhu feels that the focus of his investment is still in the financial field, involving banks and insurance.

"One of the biggest challenges for the banking industry in the future is to minimize the interest on savings and loans. To increase the proportion of intermediary business, we must not rely too much on the interest difference between deposits and loans. In fact, who is going to move forward to get the mechanism flexible?"

There is a saying from the outside world that since the beginning of reform and opening up, all foreign investors have invested in China, and then how much money they earn each other, it is found that the sum of foreign capital earned by banks is equal to the sum of the hundreds of other industries. Shi Yuzhu's return on investment over the past ten years is evident.

Nevertheless, he said he was timid.

"When I threw a project before, when I had a fever, in 1993-1995 years, I didn't want to see any feasibility report. It was all about looking at things on the face. Then we held a meeting together, and took a decision on the spot to make decisions on the spot. Now, for example, if we are going to invest in the people's livelihood, we will think about how much risk we have, and list all of them. If China earthquake, what should we do if there is a nuclear war in China? What happens if there is a major economic crisis in China? We will think of the worst results in 6 billion 500 million years. Previously, the probability of such a low nuclear war is not considered.

What is interesting is that what Shi Yuzhu most proud of is not the big hand, but the idea that he sticks to is investment, not speculation. Because he has only thrown stocks once in the past ten years.

The sell-off occurred in the wake of the financial crisis. At that time, Shi Yuzhu and his team, friends and economists studied together to judge the possible negative growth of China's GDP, and set a principle: holding cash for the winter. At that time, most of the shares held by Huaxia Bank and Minsheng Bank were cash in.

However, looking back at the selling time of the year, Shi Yuzhu was willing to admit that he was too timid.

It is worth noting that Shi Yuzhu has made repeated moves in ten years, but has not yet stepped into the real estate industry. "In fact, there are quite a lot of temptations in real estate. I have been biting my teeth." He set a discipline for himself, that is, unfamiliar industries do not do so, and those who do not like it do not. In the early years, even a Real Estate Company failed to pay for the land due to borrowing money, and Shi Yuzhu refused. In fact, at that time, the land price was only hundreds of millions of yuan, which was in the downturn of real estate and in the core area of Beijing and Shanghai. Today, the market is worth 50 billion yuan. Shi Yuzhu said he was not sorry.

There are many entrepreneurs who have experienced the pain of diversification, and few survive. In the most difficult time, Shi Yuzhu went to Tibet, visited temples, chatted with some lamas and living Buddhas, and contacted Buddhism. He thinks his mentality is more peaceful than before. He doesn't want to argue with anyone. For example, he used to think about entering Forbes's top 100, top 50, and so on. Now this idea is gone.

Why did not apply for bankruptcy in the year of high debt? "Failure to apply for bankruptcy will lose credibility and will not be mixed up in rivers and lakes". {page_break}

Games continue to play "subversion".

Unlike investment, Shi Yuzhu feels that the giant network is played out.

In those days, a few severed demission mainstay, the intention raises 15 million pioneering work, these people before research and development network game he happened to have played, but the current period has the cash, the nature which likes playing the game causes, therefore immediately sends 20 million, 5 million prepares the expense. But unexpectedly, the game was not developed, and the company soon went bankrupt, which forced Shi Yuzhu to come out.

When studying whether to invest additional money, Shi Yuzhu finally judged the team's plasticity according to the traditional experience, and the core competitiveness could be built into the second generation network game business model, which was modeled on Korea, that is, the "free online game" mode. The model was applied to the "journey", and the game was rebuilt with an additional investment of 20 million. By 2006, Shi Yuzhu was really involved in the operation and management of online game companies.

At that time, the popular mode of online shopping was the business mode of time card. In a drinking and booting sound, Shi Yuzhu led the team to resist the pressure, and the journey of prop charge was brought from 200 thousand to 2 million 100 thousand at the same time.

Since then, the bone ash player has turned from health products to online games, and sideline has become the main business.

It was not until March 30, 2011 when the third generation online game business model was announced that the outside world realized that Shi Yuzhu's disciples had expected to overthrow their teachers again.

It seems that such a subversion is nothing to do with "cowardice".

Unlike the grand and perfect time and space that constantly stretch to the movies and music, Shi Yuzhu is determined to go all the way in online games.

After three years of deliberation and improvement, the third generation online game business mode emphasizes the principle of fairness. On the basis of free mode, the mall is cancelled. The official no longer sells props, and all the equipment drops or outputs. The players acquire equipment props through mutual spanaction, and the official only takes 5% of the spanaction fee.

Of course, in addition to the business mode of "offensive", Shi Yuzhu also left a trick "defensive".

Judging from the development of China's original online games, the sequel is not red, it is a difficult circle to bypass. In order to prevent possible deviations from the "quality strategy", the giant network has reformed the R & D mechanism: the group has set up a R & D technology platform, and each research and development project is subsidiary. The group contributed 51% of the total investment, and the R & D personnel contributed 49% of the total investment. The R & D success is operated by the Group Agency, and the failure of R & D fails. As a result, R & D personnel have a sense of ownership, rewards and punishments are clear and everywhere. "Journey 2" was discovered under this new mechanism, and was listed as the company's focus on promoting online games.

Among them, Shi Yuzhu's bigger layout is to let the company get rid of its dependence on him. He must train the team. In the past two years, there have been twists and turns in the spanformation, some growth and temporary, he said, this is inevitable.

Until one day, Shi Yuzhu was informed that he could play "Journey 2", and the team was not worried about being criticized. Shi Yuzhu's "work" was actually staged.

From the earnings report released by the giant network, the net profit of the single quarter in the fourth quarter was US $35 million, an increase of 16.9% over the same period, an increase of 10.8% compared to the same period, and a cash reserve of US $more than 900 million. In the 4 quarter of last year, the growth rate of revenue has increased by more than 5%, and it has apparently stepped out of the online gaming industry and has entered a rising channel. The giant network listed on the NYSE, excluding the cash reserve, the P / E ratio is about 6 times that of the Internet bubble.

Today, "Journey 2" is good, and what Shi Yuzhu most satisfied with is that the loss rate of players is low. Timid or daring, Shi Yuzhu now speaks in the earnings figures.

Shi Yuzhu: in today's spanformation, although he is the boss of a listed company, his investment style has become more cautious than before. This contrasts sharply with his previous "violent storm" investment attitude.