After Phoenix Games was officially listed in Hong Kong, the world's venture capital industry continued to pay attention. On the one hand, the Department of New Entrepreneurship has always been a giant in the industry.

Although Phoenix Games is only an arcade game company, the parent company behind it is the new venture electronics group. What's more, the market value of more than 100 billion Hong Kong dollars is enough to make the world's technology media pay attention for a while.

On March 1, the news channel of the Yahoo portal website launched a special column for the listing of Phoenix Games, which continuously collects and refreshes news tracking related to Phoenix Games, including the performance of the stock after the recent listing of Phoenix Games, as well as the news of the release of the new product "Phoenix Photoshop", which can be found on the topic.

After the launch of this news feature, many readers were amazed. Because traditional media can't do it, all the news of a company is aggregated in one topic.

However, Yahoo, as an Internet company, uses search engine technology to search for information on the Internet with keywords, and then integrates relevant information together, so that investors or people who follow relevant news can collect and integrate public news related to a company in a short period of time.

Recently, the news feature of Phoenix Games has been refreshed with dozens of different news items every day, and even in the United States, there is still a large number of readers and investors paying attention.

"The new venture electronics group, which is known as never going public, has successively divested its business to set up subsidiaries over the years, and these subsidiaries have been listed to achieve better development and feed back to the parent company.

From Xinfei Electronic Technology Co., Ltd., which is listed on the Tokyo Stock Exchange in Japan, to Xinfei Electronic Toys, which is listed on the Hong Kong Stock Exchange. Konka and Xinchuang Communications, which are listed on the A-share market Chinese mainland...... We found that the new start-up electronics group that is not listed is operating more and more subsidiaries independently and listing for financing.

In addition, Hang Seng Bank, Aika New Energy, New Venture Film and Television and other companies, we can clearly conclude that Lin Qi, a young businessman, is already the richest businessman known in Asia.

In a sense, Lin Qi's parent company is not listed, but equivalent to an investment holding company, but the investment project is a scientific and technological innovation project of internal personnel. By continuously attracting talent to join the company, the project team is then spun off and becomes an independent listed subsidiary. In this process, the parent company has obtained a large return on investment, so that the core employees who hold the shares of the parent company will be very satisfied, and the continuous success will bring returns. The listing of subsidiaries is an effective incentive for the subsidiaries' teams.

For more than 10 years, it is through this effective incentive system that the parent company is not listed, but the employees who hold the shares of the parent company enjoy continuous investment returns. On the one hand, the listing of subsidiaries will divest non-core businesses and streamline the management of the parent company, and on the other hand, it will motivate the subsidiaries to be more successful. Being good at sharing returns makes Lin Qi the best employee and a trusted leader.

On February 22, 93, another subsidiary of Xinchuang Electronics Group, Phoenix Games Co., Ltd., was listed. It is undoubtedly a win-win for both the subsidiary and the parent company. Because the market is optimistic about the subsidiary of the new entrepreneurship department, the company's listing valuation is only 50 billion Hong Kong dollars. However, after the official listing, it was soon bought by a large number of investors, pushing the stock price more than doubled to more than HK$100 billion! Up to now, the market value of the company's shares is still above HK$100 billion (equivalent to more than US$12 billion).

However, Phoenix Games, which once had a market capitalization of more than $12 billion, has stagnated at $300 million for several years. With a P/E ratio of 40 times, if the company's profits cannot grow, it will take 40 years to make so many profits. In fact, the arcade market is no longer popular, and it is not easy to maintain the current profits. It is precisely for this reason that some reasonable investors are more cautious about the company's stock, even if they buy only a very small number of shares, and observe the company. Because, reasonable investors believe that either there is a new growth in the arcade market, which will drive the company's profit growth. Either it is to develop new business and achieve growth, otherwise, the current performance will not be able to support such a high valuation for a long time.

In this regard, Zhao Ruofei, CEO of Phoenix Games, he frankly mentioned that the arcade market has been difficult to grow, even if the company maintains the leading position in the arcade market, but it cannot reverse that players have become more and more inclined to choose computer or game console platforms, so the arcade market will gradually shrink in the future, which Phoenix Games did not hide and deny.

In order to ensure the performance after the listing, Zhao Ruofei said that the company will actively transform, the arcade market can still generate profits, and the IPO has brought more than $1 billion in cash, which will be invested in more promising areas than the arcade market. For example, application software, Internet, Pangu compatible machine and other products.

In order to prove that Phoenix Games will actively explore new markets after listing, so just a few days before the celebration of the listing, Phoenix Games announced that its subsidiary Phoenix Application Software has developed and launched a new product "Phoenix Photoshop". This is an application software that can run on the Pangu operating system, and the main function is graphics processing, that is, photos, images, etc., for processing and beautifying software.

There are actually many similar products on the market, such as Adobe Photoshop, which is aimed at users in the printing industry. Advertising leaflets, posters, photo processing and beautification and other markets, has a good market share. Unfortunately, the entry-level version of this software is also priced at a whopping $1,198, which is equivalent to a PC-compatible machine or a Pangu 7th generation computer......

It is precisely for this reason that although "Adobe Photoshop" has a certain reputation in the professional market, it sells hundreds of thousands of software units every year, grabbing hundreds of millions of dollars in revenue at expensive prices.

Phoenix Photoshop is a cheap version of the software that costs only $29.9 in English, and you can get the right version of the software, and the Internet download version of the software comes with a one-month free trial.

Many users who had to try Phoenix Photoshop because of its high cost were surprised to find that this software is stronger than they imagined, almost not inferior to Adobe Photoshop!

Regarding this pricing strategy, Zhao Ruofei said excitedly, "If we can sell it for $299, but in this case, only tens of thousands or even fewer users may buy it, and those ordinary users who just want to retouch their photos will not become our consumers." In order for non-professional users to be able to use our software, we have customized it at a very low price. If it is only a user who processes the photos, he will feel that it is not a loss......

Adobe Photoshop was a success, with more than a million downloads in just a few days, and tens of thousands of users have started paying for it......

Over time, this new software may become the key to the transformation of Phoenix Games.

Zhao Ruofei then said, "It's not just software, we will gradually break our old mindset and redefine us." Of course, we will also have a game name after we go public, and we will also launch new games in the future, games outside the arcade market, for example, games released on the Bipangu and PC markets, and even Internet games......'"

……

"Mr. Zhao, "Phoenix Meitu" has been downloaded more than 3 million times!" the person in charge of the Phoenix application software project team reported excitedly.

"How many users have paid for it?"

"We have received more than 70,000 paid orders from users! There were only more than 300 on the first day, and after that, the growth began to accelerate, and today in 14 hours, more than 20,000 users paid!"

"Oh, good news, it shows that the software market, this direction is no problem. Zhao Ruofei raised his eyebrows.

More than 70,000 users, about more than 10 million Hong Kong dollars in revenue, after deducting various expenses, at least half of it will be converted into net profit.

The team spent five years gradually polishing the "Phoenix Meitu" software, which did not generate any revenue, and the total investment should be 300 million Hong Kong dollars, which is definitely a huge investment.

Of course, although the initial investment is huge, after success, the revenue and profit are absolutely limitless, and this is an application software with more market potential than a single game. The popular game itself is difficult to compare with the market sales of the popular application software.

For example, the popular application software of later generations can bring tens of billions of dollars in revenue and billions of dollars in profits a year. Microsoft has relied on explosive software such as operating systems and office software to make huge profits for decades, so as to support the continuous investment of other new businesses.

Other companies' applications may not be as good as Microsoft's. However, it is not uncommon for explosive software with revenues of billions of dollars and hundreds of millions of dollars to continue to make profits for decades.

The pricing of "Phoenix Meitu" determines that it will take the route of small profits and quick turnover. But as long as it can get up, it will take less than a year to make a profit, and after that, it will continue to bring huge profits for many years. In the future, after this old version is squeezed quickly, a new version can be launched and the money will continue to be collected again. Because the price of "Phoenix Meitu" is only the price of version 1.0, and in a few years, it will gradually upgrade to the next generation of products.

Each generation of the product is sold as a new model, that is to say, more users are king. As long as the user has gotten used to this software, this kind of tool software. After that, it became more and more complex and more sophisticated. The more learning costs and time users invest, the less likely they will be to switch to other software in the future.