Liu and the eight years of capital game

author: host WeChat public number: entrepreneurs observation (qiyejiagc).

on May 22, jingdong listed on nasdaq, raising $3.2 billion (plus tencent’s stake in), the market value of $28.6 billion.

this is so far the Chinese enterprises in the United States the largest public finance. Nyse and nasdaq for jingdong, until two months ago, jingdong determine listed on nasdaq. Nasdaq’s China chief representative yeeli hua zheng, dealing with liu for many times. She said: “liu is the person who is very ambitious, he like a cow, make the company more than a decade, doing things very resilient and fight, he is ambitious, and are enduring ambition, he is also very patient, YueZhanYueYong. By him for the nasdaq Taurus do the unveiling ceremony, very suitable for.”

Taurus is nasdaq new image project, the nyse after the buyout by ICE (ICE), will be moved to Atlanta, nasdaq will become the only large global stock exchanges in New York, the mayor of New York, I hope to become the nasdaq in New York City landmark location, thus set up a calf.

New York time was around ten o ‘clock in the morning of May 22, the nasdaq on the first floor hall, suit liu public speech, is “the jingdong… “, he immediately realized his mistake, instead of “gentlemen, ladies,” laughed.

in 2012, jingdong IPO failed once started. In October 2013, huaxing capital director and CEO of package and new as jingdong CFO Sidney huang communication, discuss the jingdong listed. That point in time, it is ali to Hong Kong. They agree that jingdong must speed up our steps. In early December, bao fan liu went to New York to visit in the United States. Is this month, jingdong decided to restart.

at the time, jingdong on preparations for the two capital event at the same time, one is the IPO, the second is to introduce strategic investors, tencent is preferred. In January 2013, CEO of huaxing group annual meeting, liu and Mr Lau talked a day alone. Huaxing think tencent electricity can with jingdong merger is a good thing, but, at that time liu has not thought through to this matter.

hillhouse capital founder zhang talk to ma, contributed to the cooperation of tencent and 2014 jingdong. Introduction of tencent, a listed subscription of jingdong. Hillhouse capital is jingdong shareholders, at the beginning of 2011, to $150 million for jingdong C round of financing.

tencent in jingdong, huaxing as jingdong financial advisor; The jingdong ipos, huaxing is also one of the underwriters. With and jingdong the two transactions, huaxing. In 2008, made liu bao fan, jingdong financing at the time, but huaxing judgment is a bit risky, contributed to cooperation. Found liu who has a strong belief, powerful, able to make it big, handout spirit, too. In 2010, huaxing cooperation with jingdong missed again. Until 2011, huaxing contributed to the DST investment jingdong for $1.5 billion. Package all spent 4 years to stare at a person is, “the facts prove that this is right, found on man, can find a huge business opportunities. You choose the right person, at any cost, even if spend four or five years to stare at him. Liu ability strong, handout spirit, make friends first, then do business. Some people capability is strong, but interests, and who is just business, I won’t be friend with him. On the other hand, day and night thinking of the people of money, also become a big deal.”

jingdong in 2007 for $10 million investment capital, founder of China today, also at the scene of the jingdong listed, she said: “this is exciting moment, investment in the gift enough.” Capital today because of jingdong listed profit of nearly $2 billion, one hundred times return.

China first met liu who is at the end of 2006 Beijing shangri-la hotel at two o ‘clock in the morning. Liu put forward to raise $2 million m, China told him that it is not enough, we are ready to vote for $10 million. Her first impression of liu is good faith, the company is very small, there is no accounting, please do zhang part-time accounting, ERP system is designed liu himself, the financial system is not standard, xuxin they spot check the inventory and cash, all to get the number. The second impression is very ambitious, only have eyes for the first, not the second. Liu is when I was in college to learn sociology, oneself take a bus to a computer research institute to learn by watching them, self-study program.

China and chat with Sun Jiaming and other staff, staff from the heart feeling respect boss, doing hard, loyalty, and execution. Sun Jiaming is one of the earliest employees in jingdong, was responsible for the sales of jingdong, has been in jingdong for 15 years.

after the investment, China and help liu to find talent. Jingdong former CFO, jingdong financial group CEO melchor is strong, is introduced from China to liu. Liu request is, to pay cannot be higher than the old employees. Then, the old employees salary is about 5000 yuan to 10000 yuan. Liu tasted the sweets, he privately told xuxin, your talent is indeed better use. Xuxin then give liu introduced several people, liu is still reduce the wages to the original 30% to 50%, give options.

in 2008, the financial crisis package did not come to an and jingdong business. The jingdong was supposed to talk about well several investment institutions, off. Liu was sleeping. Capital invested $8 million again today, liu get round B $21 million this year.

China said: “his pattern is to be big to make money. I like him, I’ve thrown a netease, experienced hard times. I believe that insist, not only entrepreneurs to do, investors also want to insist.”

according to its prospectus, jingdong from 2007 to today’s capital to tencent injection of $214.5 million, $10 million total $2.026 billion. After listing, because AB architecture, liu with 20.5% shareholding possess 83.7% of the votes.

founder liu is a very strong, he is like breaking into China shop in the capital market, the bull. In March 2011, when I interview him, he said: “a person how much control of the company is not from stock, but from how good are your abilities, you can bring the company to what extent. So we never consider the problems of control, who control a company is terrible.”

in August 2012, when I interview liu again, he said “not every fund approved this way, you don’t recognize it doesn’t matter, I’m looking for approval”. He will tell fund, “why didn’t you the right to vote, because I share very few, if you have the right to vote, he has the right to vote, no one making decisions, the company messed up.”

“this is a business philosophy, the you, as the high-speed development of startups, you have to the company has absolute control over and control ability, to ensure that the company’s rapid growth. Otherwise, if who say is not, that is finished. “at the time, the board of directors of the jingdong has nine seats, liu a man has five, if there are any need a vote, was carried out in accordance with the rules of the game to.

in a press conference on May 22, 2014, liu once again reiterated his idea: “the biggest risk comes from internal management out of control. Founder of high-speed growth, must maintain absolute control of the company. You see a lot of is not the management of the company founder, managers need to spend half the time on the board of directors, jingdong not willing to spend time on the internal struggle.”

as to the strength of the liu, ensure that the two important strategic decision of the development history of jingdong right: one is from 3 c expansion for the whole category, is a self-built logistics.

especially the latter, the appliance merchant company made the most bitter and tired, the heaviest live. Kleiner perkins competent partner jovia remember venture capital fund, CEO of newegg in China in 2009, laughed at jingdong, we never do logistics, should cooperate with the third party. But the new egg almost disappeared in China, logistics has become the core competitiveness of jingdong.

2009 jovia originally considered for jingdong, jingdong loss at that time, consider repeatedly not to vote. In 2011, before considering jingdong, prices are much more than a dozen times. While kleiner perkins China fund paid off because of some project, make decisions easier. Therefore, nearly $100 million, returns. $300 million.

jovia joked that “sign can be a little shake my hand”. At that time, they also controversial, jingdong can make a like amazon, even greater than the amazon company? Jovia said: “liu gang it can bear, under the blade of general thin profits, still can survive, this is his past experiences of value. Electricity is helpless pain of live, no one can than with him. If it is a pure Internet company, he is not necessarily better than people.”

at the time, a lot of people talk about with him jingdong Maori, jovia if think about two line electrical contractor need attaches great importance to the margin, but jingdong is obvious leader, the company’s leadership, scale, the outlook is putting there.

he feels now is the most exciting, prospects of the 3456 cities electric business in China, the Chinese users have been spoiled electricity, those traditional retailers too behind The Times. And liu in the May 22, announced at a news conference on the financing of $3.2 billion, the first money for 3-6 cities to develop.

in 2013, liu study in the United States rectified, jovia evaluation “CEO left the company so long, still can normal operation, this is the only one.”

jingdong in ten years from Beijing to New York. These 10 years, 10 years is obtained. China said: “he particularly strong execution, in pain, why jingdong can grow so fast, because he will build up the team. You will do three generations, compressed into a few years, the strength is very big, will, mind and management ability of entrepreneur is a great test.”

Sun Jiaming follow liu 15 years, and he told xuxin, liu not by money appeals to me, because there is a sense of achievement. Ask liu xuxin, you ask so high, so tired of executives, why they are willing to stay here. Liu answered him: “give them the power and the stage.”

liu went to the United States, China asked, this huge chariot? Busy “entrepreneurs, who put down the war? He forced himself down.”

in 2006 China see him, jingdong 50 employees, more than 50000 now. How to manage the tens of thousands of employees, is a difficult problem. Xuxin said: “he has a very efficient system, with the method of the intelligent do stupid things.” She thinks that liu in the management methods improve a lot, learning ability is very strong. The IPO, she felt liu progress again, more attractive.

jingdong, vice President of Kate kui was director of merrill lynch, an investment bank, in 2012 after joining jingdong is responsible for financing, have dominated the 2012 at the end of the financing, but not in charge of specific business. In 2013, she was in the jingdong from financing to negative operations, responsible for jingdong POP open platform, as well as the original tencent clap nets, for her, this is a huge challenge. Nobody dared to put her in this position, this is liu’s bold. Haoyu shen also similar, without logistics experience before, but let him in charge of logistics package such as business, first as a COO, to act as their CEO of jingdong mall now. Again, in the high-speed development of the company, decided to a person, is space for the development of the fast learning ability, rather than past experience. Liu also said.

the IPO, today’s capital is one of the biggest winners, a profit of $2 billion, China says: “eight years, and 100 times in return. The best is not money, help enterprises to build a great company is. Jingdong will become a great company, capital the remaining 7 points today, I’m not going to sell, want to hold for a long time. Great company of the few in the world, today’s capital luck, find such a good company should hold for a long time.” And liu told her: “now the price is not important, after ten years of share price is more important.”