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On Monday, September 1st, a new month begins. Pen, fun, pavilion www. biquge。 info

If Lin Feng was in his previous life, on this day's WeChat circle of friends, he would generally be swiped by words like "Hello, September", "Hello, September", with pictures of beautiful scenery such as maple leaves and sunshine in the background.

Everyone hopes that in the new month, whether it is life or career, there will be a good start.

In fact, every day is a new beginning......

It was on such a day in late summer and early autumn that Lin Feng once again stepped into his kingdom territory after nearly two months.

From time to time when he was waiting for the elevator at the top of the stairs, people greeted him or saluted him from time to time.

"Hello boss!"

"Good morning boss!"

Although they have not yet moved into their own new building, in Block A of SOHO Modern City, Menglong and Fengxing have to rent a lot of offices on other floors except for the 32nd and 36th floors.

The combined staff of the two company headquarters has exceeded 2,000 people.

Lin Feng smiled and nodded. Although most of them didn't know, he knew that these people were his employees.

It's an amazing feeling.

The company is a unique organization in modern society, and to some extent, the owner of the company has almost the supreme authority over the employees, after all, he hires the employees, pays them salaries, and enables them to survive in this big city and support their families.

Suddenly, Lin Feng understood why, like those bigwigs in the traditional manufacturing industry, would be treated ceremoniously by the government in any province.

It is a great thing to solve the employment of thousands of people.

This kind of influence is far more respectable than how much wealth you have.

…………

Lin Feng came to the 32nd floor. Menglong corporate office.

Fengxing has been developing smoothly recently, but Menglong because the Ministry of Information Industry and Mobile have recently begun to strictly manage and rectify the SP industry, up and down or down, as soon as he returned to Beijing, he decided to convene the company's board of directors to respond and deploy in response to the current market situation.

After the listing, the board of directors of Menglong has also undergone some adjustments, and there are currently a total of 7 directors.

They are: Li Dong, Executive Director and CEO, Lin Feng, Executive Director and Chairman of the Board, Wang Hao, Non-Executive Director and Vice Chairman of the Board, Meng Pu (President of Qualcomm Greater China), Meng Haoran, Independent Non-executive Director (Professor of Beijing University of Posts), Wu Fayuan, Independent Non-executive Director (Professor of Northern University), and William Decker (Partner, Goldman Sachs).

Among them, the early board members, Xu Xin (Baring Asia), Michael Moritz (Sequoia Capital), and Che Coleman (Tiger Fund) have all withdrawn from the board of directors, and their shares are gradually selling.

In the new board structure, independent directors occupy four seats, which is also in line with the Nasdaq Exchange's requirement that more than half of the independent directors on the board of directors of listed companies must be seated.

Although Lin Feng stepped down as the company's CEO, it seems that he did not hold any position in the company's management, but unlike Wang Hao, he still serves as an executive director on the board of directors.

Today's board meeting was supposed to be a regular meeting - Menglong is about to announce the second quarter earnings report, and the board of directors will, as usual, deliberate before the earnings are announced.

But Lin Feng believes that the real crisis of the company is never immediately shown in the financial report, but in his own mind.

As it is today.

Menglong's financial report for the second quarter of 2004 is still very bright: in the second quarter of 2004, one year after entering China, the CRBT business is still continuing its popularity as an operator phenomenon, with more than 22 million business users.

Affected by this, although the SMS business that the Ministry of Information Industry and operators are purging has been affected, and the related revenue has declined slightly, as the No. 1 service provider in the domestic CRBT business, Menglong's overall revenue scale has still grown.

In the second quarter of 2004, Menglong's total revenue was 380 million yuan (US$46.28 million), an increase of 32.2% over the previous quarter, and its net profit was 269 million yuan (US$32.76 million), an increase of 70.25% over the previous quarter.

Among them, SMS revenue was 96 million yuan (US$11.69 million), down 18.6% from the previous quarter.

Revenue from the wireless digital music business, which includes ringtones and CRBT businesses, reached 284 million (US$34.59 million), an increase of 63.58% from the previous quarter.

It's still a pretty good report.

However, Lin Feng knows that the bonus period enjoyed by taking advantage of the explosive growth of CRBT business users is only one year at most.

While everyone was satisfied with the financial results, what Lin Feng noticed was the company's current cash reserves.

As at June 30, 2004, Dreamdragon had cash, cash equivalents and short-term investments totalling $420 million, an increase of $30 million in cash from the prior quarter.

Originally, Menglong also used some cash when it acquired Tencent, but later through the transfer of shares to Fengxing, the cash was returned, and there was a slight profit.

As a result of its business model, its cash flow has always been positive.

In addition to the down payment of $100 million for the purchase of Menglong Building (Central World Trade Center Building A and B), which needs to be paid in the near future, Lin Feng feels that this cash is not the best choice for Menglong - Menglong is not short of money!

To carry out large-scale acquisitions, buying, buying, buying, of course, is the first choice, such as UC Youshi (UC Browser) and 3G portal, which he has always been obsessed with.

Especially UC Optimi.

This is the first company in China to have core technology and complete intellectual property rights in the field of mobile browsers. The acquisition of it is extremely important for Menglong's layout in the mobile Internet era.

At this time, Liang Jie and He Xiaopeng, the founders of UC Youshi, should have resigned from AsiaInfo to start a business.

Liang Jie, born in 1975, and He Xiaopeng, born in 1977, both graduated from the Computer Science Department of South China University of Technology, and after graduation, they both entered the Guangzhou Branch of AsiaInfo Technology (China) Co., Ltd., a well-known system integration and software development company in the telecommunications industry, and successively served as technical manager, R&D manager, and project manager.

Before starting his business, Liang Jie was the technical backbone of AsiaInfo's development of its flagship product, the large-capacity e-mail system. At AsiaInfo, he and He Xiaopeng participated in the development of China's first email system that passed the 10-million-level performance test, accounting for 40% of the domestic market share, including China.com, 21CN, People's Daily Online, Xinhuanet and other large websites are using AsiaInfo's email system.

WITH SUCH A BACKGROUND, THE TWO DECIDED ON THE DIRECTION OF DEVELOPMENT SOON AFTER STARTING THEIR BUSINESS: DEVELOPING MOBILE MAIL (UCMAIL) AND MAKING CHINA'S BLACKBERRY.

The duo's choice of technical direction was reasonable, but it did not go smoothly in the actual promotion, because the Chinese smartphone market was very limited at the time, and Chinese mobile phone users were too reliant on SMS communication, and the "national situation" problem forced them to turn to a by-product of the development of mobile email: the mobile browser (formerly known as UCWEB, now known as UC Browser).

In August 2004, UC Univision released its core product UC Browser for the first time.

Unexpectedly, this by-product has become the most valuable product of UC Univision. In 2014, Alibaba acquired UC at a price of more than 4 billion.

The 3G portal is also the most influential WAP portal in the pre-mobile Internet era.

The 3G portal network under the 3G portal company has created an independent free model for China's mobile Internet. All Internet services are available on the portal, which has more than 70 channels, including information, entertainment, bookstore, finance, sports, community, consumption, etc. In just two years, the 3G portal has more than 200 million registered users, the daily PV of the portal has exceeded 1.1 billion, and the daily active users have exceeded 20 million.

In addition to these two companies, Lin Feng also plans to consult with Professor Meng Haoran and Director Meng Pu on the board of directors to select suitable companies for investment or acquisition in the upstream of the communications industry to expand the integration influence of Menglong in the industry.

In addition to the acquisition, Lin Feng is also considering another thing, and that is whether to carry out a share repurchase program!

Stock repurchase refers to the act of a listed company using cash and other means to buy back a certain amount of shares issued by the company from the stock market. The company can cancel the repurchased shares after the completion of the share repurchase. However, in the vast majority of cases, the company retains the repurchased shares as "treasury shares", which are still outstanding shares, but do not participate in the calculation and distribution of earnings per share. Treasury shares can be diverted for other purposes at a later date, such as the issuance of convertible bonds, employee benefit plans, etc., or they can be sold when funds are needed.

There are generally several motivations and reasons why listed companies choose to buy back shares.

1. Prevent mergers and acquisitions of other companies at home and abroad.

2. Revitalize the stock market.

On October 19, 1987, the New York stock market saw a sharp drop in stock prices, and the stock market was in turmoil. Since then, the main motive for U.S. listed companies to repurchase the company's shares is to stabilize and increase the company's stock price and prevent the business crisis caused by the stock price crash. According to statistics, 650 companies announced a large number of plans to buy back the company's shares within two weeks, with the aim of curbing the collapse of stock prices and stimulating the recovery of stock prices.

3. Maintain or increase the level of earnings per share (i.e., give shareholders a relatively high return) and the company's stock price to reduce operating pressure.

4. Recapitalization.

5. Other considerations.

According to § 71 of the German Stock Act, companies are allowed to repurchase up to 10% of their capital in certain circumstances. The so-called specific circumstances are: 1) when a significant loss is avoided, 2) when it is provided to employees, 3) when the stock is cancelled based on a capital reduction resolution, and 4) when the stock is inherited. According to the UK Companies Act 1981, the main motives for a company to repurchase its shares are: 1) to return the surplus funds to shareholders, 2) to increase the value of the shares, 3) to curb the decline in stock prices, 4) to achieve the goal of capital formation, 5) to prevent the company from being swallowed up, and 6) to flexibly use the surplus funds or as an important means of the company's securities issuance strategy. In the case of France, companies are allowed to repurchase their shares in the following specific cases: 1) for the purpose of market adjustment, 2) for the purpose of making them available to employees, 3) for inheritance, 4) on the basis of a court decision, and 5) for the implementation of capital reductions. In Japan, a company may repurchase the company's shares in the following cases: 1) for the smooth absorption of the shares issued at the current price for investors, 2) when it is necessary for the exercise of the company's rights in the case of acceptance of payment for debts, etc., and 3) when the employer's right to request for shares is not yet fulfilled and when the shareholder's right to purchase shares is exercised.

There are five main ways to divide share repurchases:

1. According to the different locations of share repurchase, it can be divided into two types: on-site public acquisition and off-market agreement acquisition.

An on-exchange public offer refers to a listed company that equates itself with any potential investor and entrusts a securities company with a formal trading seat on the stock exchange to repurchase the company's shares at the current market price on its behalf. In the more mature stock markets abroad, this method is more popular. According to incomplete statistics, throughout the 80s, the total amount of shares repurchased by American companies in this way was about 230 billion US dollars, accounting for more than 85% of the entire repurchase amount. Although this method is relatively transparent, it is difficult to prevent price manipulation and insider trading, so the SEC has strict rules on the timing, price, and number of on-exchange repurchases. Over-the-counter agreement acquisition refers to a way for a stock issuing company to meet directly with a certain type of investor (such as state shares) or certain types (such as corporate shares, B shares) and repurchase shares through negotiation in the over-the-counter market. The content of the negotiation includes the determination of price and quantity, as well as the execution time. Obviously, the defect of this method is that the transparency is relatively low, which violates the "three publics" principle of the stock market.

2. According to the financing method, it can be divided into debt repurchase, cash repurchase and hybrid repurchase.

Debt repurchase refers to the repurchase of the company's shares by borrowing money from banks and other financial institutions. Its purpose is nothing more than to defend against hostile mergers and acquisitions by other companies. A cash buyback is when a company uses surplus funds to buy back the company's shares. If a company uses surplus funds and borrows from banks and other financial institutions to repurchase the company's shares, it is called a hybrid repurchase.

3. According to the scope of asset replacement, it is divided into selling assets to repurchase shares, using hand-held bonds and preferred shares to exchange (repurchase) the company's common shares, and debt and equity replacement.

A debt-to-equity swap is when a company exchanges bonds of equal market value for the company's shares. For example, in 1986, Owenc Corning exchanged $52 in cash and $35 in bonds for each share it had outstanding in order to increase the company's debt ratio.

4. According to the way of determining the repurchase price, it can be divided into fixed-price offer repurchase and Dutch-style auction repurchase.

The former refers to the offer to buy back a certain number of shares at a certain price level higher than the current market price of the stock issued by an enterprise at a specific time. In order to buy back a relatively large number of shares in a short period of time, a company can announce a fixed-price buyback offer. It has the advantage of giving all shareholders an equal opportunity to sell their shares to the company, and the company generally has the power to cancel the buyback program or extend the validity of the offer if the buyback quantity is insufficient. A fixed-price offer buyback is generally considered a more positive signal than a public offer, which may be due to the fact that the offer price is at a premium to the current market price. However, the existence of a premium also makes the execution of a fixed-price repurchase offer more expensive.

Dutch-style auction buybacks first appeared in 1981 with the Todd Shipbuilding Company share buyback. This type of share repurchase gives the company more flexibility in determining the repurchase price. In the Dutch auction share repurchase, the company first specifies the range of the repurchase price (usually wider) and the number of shares planned to be repurchased (which can be expressed in the form of upper and lower limits), and then the shareholders make bids to indicate the number of shares they are willing to sell at a specific price level (the shareholders can choose within the repurchase price range specified by the company); the company aggregates the prices and quantities submitted by all shareholders to determine the "price-volume curve" of the share repurchase, and determines the final repurchase price based on the actual repurchase quantity.

5. Repurchase of transferable sale rights.

The so-called transferable right to sell is the right of the company that implements the share repurchase to give the shareholder the right to sell the shares he holds to the company at a specific price within a certain period of time. It is called "transferable" because once this right is formed, it can be separated from the dependent shares, and after separation, it can be freely bought and sold in the market. Companies that execute share buybacks meet the needs of various types of shareholders by issuing transferable sale rights to their shareholders, and those who are unwilling to sell their shares can sell the rights separately. In addition, because the number of transferable sale rights issued limits the number of shares that shareholders can sell to the company, this approach also avoids excessive acceptance of buyback offers by shareholders.