In the latest updated prospectus document, Fengxing Group disclosed its unaudited financial position for the year 2006.

According to the documents, the total revenue of Fengxing Group in 2006 was 6.804 billion yuan (about 872 million US dollars), an increase of 53.2% over the previous year;

Fengxing Group's net profit in fiscal 2006 was 5.403 billion yuan (about 693 million U.S. dollars), an increase of 70.6% over the previous year.

Basic and diluted earnings per share attributable to ordinary shareholders were RMB6.75 (US$0.86) and RMB6.75, respectively. 54 yuan (about 0.84 US dollars), an increase of 89.9% and 80.1% over the previous year.

Among them, the revenue of online game business was 3.532 billion yuan (about 581 million US dollars), an increase of 104.7% over the previous year;

Internet value-added business revenue was 851 million yuan (about 109 million US dollars), an increase of 26.6% over the previous year;

The revenue of wireless value-added business was 1.673 billion yuan (about 214 million US dollars), an increase of 8.9% over the previous year;

The revenue of online advertising business was 748 million yuan (about 96 million US dollars), an increase of 223.7% over the previous year.

In the first quarter of 2007, Fengxing's total revenue reached 2.113 billion yuan (about 270 million U.S. dollars), an increase of 132.3% over the same period last year!

Net profit was 1.825 billion yuan (about 234 million US dollars), an increase of 136.4% over the same period last year.

In both online games and online advertising, it has doubled its rapid growth!

In addition to the disclosure of the performance report, the updated prospectus document also disclosed the share offering plan of the popular IPO.

According to the documents, Fengxing Group will issue an additional 115,076,931 American Depositary Shares (ADSs), and at the same time, the selling shareholders, including Lin Feng, Chairman of the Board of Directors of Fengxing Group, Wang Hao, Vice Chairman of the Board of Directors, Li Dong, President of the Group, and some institutional shareholders, will provide a total of 85,029,169 American Depositary Shares (ADSs). to facilitate the entry of investors.

Fengxing Group will not receive any income from the sale of its ADSs by these selling shareholders.

Among them, Lin Feng, the founder of Fengxing, will sell 32 million shares, and he will also hold 283.4 million shares of Fengxing after the dedication.

Lin Feng's current holdings account for 39.42% of Fengxing's total shares (after listing dilution), and the shares he will sell account for 4% of Fengxing's total shares. According to the pricing range on the Fengxing prospectus, Lin Feng will sell shares worth between $1.216 billion and $1.28 billion, while his stake will be reduced to 35.42%.

In addition, Wang Hao, vice chairman of the board of directors of Fengxing, will offer 10.25 million shares, Li Dong, president of Fengxing, will sell 10 million shares, and other institutional shareholders occupy the remaining 32.75 million shares.

Based on this pricing range and the number of shares issued, Fengxing Group's IPO will raise up to US$8 billion, which will undoubtedly be the largest IPO of a global emerging technology company this year.

There is another part of the updated prospectus document that has attracted the attention of investors.

In addition to Lin Feng, chairman of the board of directors, Wang Hao, vice chairman of the board of directors, and Li Dong, executive director, four directors and two independent directors are further disclosed in the document.

The four directors are MIH Group Roux, Blackstone Group Michael Chae, Life Insurance Liu Lefei, and Fengxing CFO Li Mengyuan. The two independent directors are Li Dongsheng and Wu Fayuan (professor of law).

Fengxing's management occupies 4 of the 9 seats on the board of directors, and together with Lin Feng's voting rights in Class B shares (10 voting rights per share), it will still firmly control Fengxing Group after listing.

Another highlight of the updated prospectus is that it has reorganized a series of acquisitions and investments of Fengxing Group, trying to explain to investors the investment strategy of Fengxing and the idea of ecological construction based on Fengxing system.

The objectives of Fengxing's investment and acquisition strategy are threefold: to acquire and increase user stickiness, to improve user experience, and to expand products and services.

Tactically, it is mainly based on the investment of minority shares, commercial cooperation, and further investment or wholly-owned acquisition depending on the subsequent situation. This is the case for Sogou, JD.com, etc.

In addition, Alibaba will also support entrepreneurs' innovative products and technologies, whether it is the "Ten Hundred Thousand Plan" or the "Open Platform Strategy", which are investment behaviors for entrepreneurs.

At the same time, for targets with a high degree of integration with Fengxing's business, Fengxing will also directly carry out wholly-owned acquisitions, such as Haofang platform, starting point Chinese network, Riot Games, etc.

The investment and equity acquisition of Huayi Brothers, Tudou, Guangguang Media, Huace Film and Television and other companies are aimed at expanding the company's services in the field of digital media entertainment content.

The investment in 58.com, Ganji.com and other companies is to expand the field of local life services and provide users with more convenient online information services.

Another special company in the popular system is Tencent Holdings, which has been listed in Hong Kong, which holds 37% of the shares of Tencent Holdings, is the largest shareholder, and is also the actual controller of Tencent.

Fengxing and Tencent are joint ventures in social networking and gaming, and jointly control more than 90% of China's Internet social networking market. In the prospectus, Fengxing promised to further deepen business synergy and interoperability with Tencent, which is also reverie......

Finally, Fengxing's move to update the prospectus has also made the market realize that the pace of Fengxing's listing is getting closer and closer!

…………

July 5, 2007, Beijing, Fengxing Building.

The indicator light of the chairman's exclusive elevator, which is rarely started, lit up on the 33rd floor, and Lin Feng, dressed in a casual suit, walked out of the elevator accompanied by Li Dong and others.

The entire 33rd floor was busy at this time, and the people in the corridor were all running in small steps.

Since the launch of the listing of Fengxing Group, the entire 33rd floor of Fengxing Building has been divided into the exclusive use of the listing team, and the Fengxing project team from five investment banks, law firms, accounting firm teams, financial consulting companies, and the listing preparatory personnel drawn from various departments of Fengxing are all concentrated here, carrying out intense pre-listing preparations.

And the commander-in-chief and person in charge of the popular listing is Li Dong.

Li Mengyuan is responsible for the financial, accounting and financial report data parts, as well as coordinating with investment banks and investment institutions.

After updating the prospectus document again, it means that the listing of Fengxing has entered the final stage, according to the time plan, Fengxing will start a two-week IPO roadshow in the United States and Asia from the 8th of this month, and officially trade on the 20th.

If the roadshow goes well, the IPO timeline may be brought forward.

At this stage, Lin Feng must join it, he has accompanied his wife in Hong Kong for more than a year, from pregnancy to delivery to now Lin Dandan is almost 5 months old, Lin Feng is finally going to end the semi-vacation mode of Youzai Youzai and devote himself to the final sprint work of the popular listing.

In the large conference room on the 33rd floor, Lin Feng and the leaders of each project team of the Fengxing listing team held a meeting to listen to their progress reports and the next step of the plan.

Li Dong spoke as the host of the meeting: "Thank you very much for your hard work in the past few months, this is an unforgettable experience for all of us, I think for many people here, including me, to be able to personally participate in the popular listing work, are very excited and happy, this may be a once-in-a-lifetime thing, is a milestone for the company, we work for this, to achieve it...... And now, the time has come! We finally see the light at the end of the tunnel. ”

Everyone present couldn't help but let out a cheer and applauded enthusiastically.

Recalling that from the beginning of the year to form a team, start the preparation for listing, to March 22 to officially submit the prospectus to the SEC, until today's last update of the prospectus, about to start the roadshow, nearly half a year of hard work, everyone is full of emotion, even those who have participated in many IPO projects, experienced foreign investment bankers, the face also shows an indescribable look of relief.

Fengxing is a big Cace, and everyone is under a lot of pressure.

"The roadshow starts on Monday, we're ready, let's go!" Li Dong said with a smile.

Lin Feng sat on the side, a satisfied smile on his face.

This is the second listing of his cooperation with Li Dong, compared with the listing of Menglong, the listing of Fengxing Group this time is very different from 4 years ago in terms of scale, the strength of investment bank investment, the heat of the capital market, or their own growth.

Compared with the nervousness and apprehension at that time, this listing, whether it is Lin Feng himself or Li Dong, they are full of confidence.

Fengxing chose to list on the New York Stock Exchange this time, raising billions of dollars, and the roadshow arrangement is also very different from the last time.

Because more than 80% of the large core investment institutions are in the United States, the first stop of the roadshow is in New York, and after the New York roadshow, the company will continue to travel to other cities in the United States, including Boston, Baltimore, Denver, San Francisco and Los Angeles.

After the U.S. roadshow, the show will move to Asia, including Hong Kong, Singapore and London, with some delegates likely to visit the Middle East.

Because of the tight time, the roadshow will be divided into two teams, Team A led by President Li Dong and Team B led by CFO Li Mengyuan, each team will be attended by representatives of two underwriter investment banks.

Lin Feng, as the big boss, doesn't have to work so hard this time, he only needs to participate in the first New York roadshow in the United States and the first Hong Kong roadshow in Asia.

What Lin Feng needs to do is to focus more on communicating with some important people and large institutions.

Generally speaking, in order to stabilize the stock price, in the IPO of the U.S. market, investment banks and listed companies will give priority to meeting the needs of some long-term investment funds, and will also take care of old customers, such as Fidelity, BlackRock, Blackstone, Ellington, Putnam and other super large public funds, as well as insurance, pension funds and other funds, these are all large institutions that can place orders of more than $1 billion, and it is worth letting Lin Feng come forward to communicate in person.

Moreover, like Blackstone and Life Insurance, they are all popular shareholders, and the interests and connections behind these shareholders also need to be taken into account......

All in all, even if it is a roadshow inquiry, the allocation of the placement quota involved behind it is very complicated.

"This will be the beginning of a very difficult and torturous journey! I wish you all the best and I wish us success!"

In the evening of the same day, at the mobilization dinner held by Lin Feng for the listing team, Lin Feng raised his glass and congratulated.

Everyone raised their glasses together: "Cheers!"

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