Shares rose 400% a year, lei jun how to make kingsoft a second?

(qing nan)

2 years ago, lei jun “uneasy” to take over as chairman of kingsoft. Reason is the time of the jinshan has been marginalized by the market, and you just do the millet, time and energy may not be enough, but in kau pak kwan, Zhang Xuanlong half of “public relations” finally made him into submission.

to set up has been more than 20 years of traditional software companies, rigid kingsoft released to the market reform of the first signal. But at the time, the market is still there is a big question about the outlook for gold? Really have the energy to lei jun “centralizer” jinshan? Reflected in the jinshan share price, nearly a year of time is fundamental in long-term wandering between hk $3-4.

now jinshan, stock prices have climbed to 17.48 Hong Kong dollars (September 3 s data), valuing the company at more than hk $20.6 billion at a stroke, also hit a record high. Year, jinshan shown a rising trend, the shares of hk $3.55 from the lowest to the highest at hk $17.68, up nearly 400% during; Early in 2013, kingsoft share price increase also reached a staggering 203%. It become the best in the hkex stock, no one.

in the afternoon on September 2, jinshan value exceed 20 billion Hong Kong dollars, lei jun has been in a timely manner in weibo bask in the screenshot to mark the moment. That night, he also opened the champagne with a number of senior executives.

share price climbed behind need good financial performance. Recently released interim results showed that attributable to the parent company net profit of about 340 million yuan, up 71% from a year earlier. Online business steady growth, application software, kingsoft cloud group breakthrough, 3 + 1 strategy system.

there is no doubt that revitalized the jinshan has. In the last two years, lei jun again is how to transform the company? From his conclusion, the reform’s core is five: production quotas, shut down and go on the water, fish farming, teng cage bird nest and on a change.

lei jun vote heart two years unrealised

it is well known that join in jinshan, lei jun 1992 development all the way from the grassroots employees to the CEO, and eventually choose to leave in 2007. More than a decade, he clear to jinshan development, advantages and disadvantages. So, in to take over Jin Shanshi, quickly find the problem. At that time, jinshan, business expansion, there is no absolute advantage products, even more crucial is generally low morale. , of course, also have good side, jinshan have thicker technology accumulation, most employees just have some spirit.

at the very start, lei jun is announced to the world the long-term bullish gold determination, therefore, he volunteered to hold the golden hill software lock all shares, selling the first year is not in any way, while the second and third year not to sell more than 50%. So far, lei jun during these two years is not cashed out from the jinshan stock.

to lei jun, retrofitting the jinshan quite so from scratch. As a result, he first put focus point in the corporate culture reconstruction, and millet flattering “dedicated, acme, word of mouth, and fast” tactic to jinshan internal, seven words and reschedule jinshan slogan enrichment for “ideals, feet on the ground”.

to do so, he also streamline some of the business, such as incorporating some game studios, regrouped online gaming, WPS and safety, plus the kingsoft cloud group, namely 3 + 1 strategy.

“nesting ultra-competitive led talent

although jinshan online game, WPS software at present the main business is still governed by veteran zou, GeKe respectively, but in other lines of business, lei jun is to speed up the talent introduction.

under the CEO and millet, lei jun need to introduce the most capable assistant to help with jinshan business, therefore, “nesting ultra-competitive plan carried out. The first to introduce is executive vice President of alibaba group financial shulhn-der wang, he has served as the jinshan CFO, and get 5 million shares of equity. But not for long, less than a year time, shulhn-der wang has resigned for personal reasons.

the second executives is the original Microsoft Asia academy of engineering President, asia-pacific r&d group hong-jiang zhang, chief technology officer and chief executive by his golden hill software. Likewise, jinshan also gave him a lucrative option incentive, number up to 7.5 million shares, according to the price at the time, hong-jiang zhang 7.5 million shares of stock option market value of hk $20 million, now the same option value is over million.

move in about jinshan future and focus on the layout of cloud business, is also the external executives “airborne”. Earlier this year, former executive vice President of phoenix new media Wang Yulin kingsoft cloud group’s President.

although officials have not disclosed Wang Yulin treatment and the number of options, but from the point of jinshan, a series of reform measures, executives shares and options is a more and more “normal” way to handle it, because after he came into power, lei jun in the implementation of the reform, the most important one is because the team MBO, similar business production quotas, managers are masters of the country.

“fixing” the team boss

in the previously mentioned jinshan morale is low, this for jinshan the traditional IT enterprise for more than 20 years, were common. Eat pot in similar environment, the mechanism is not flexible, team motivation is not obvious, thus also lost. Some examples, with 360 business to PK, completely soft like a persimmon, literally overrun by rivals.

this is to create a life of millet, lei jun is a very unacceptable. In order to form effective incentive and retain talents, he in internal carrying out MBO mature business plan repurchase (management), is mainly set up subsidiaries in internal concept, more important is the final, let the commander of the war. Unless a major strategic decision need to discuss with CEO hong-jiang zhang lei jun, the other can decide their own.

at the beginning of 2011, its game studios in xishan first MBO, new in xishan xishan will control in chengdu, zhuhai jinshan etc. 26 of xishan in establish employees paid hk $189 million, in exchange for new xishan 20% stake in the jinshan group is enjoy the remaining 80% stake.

in May 2012, jinshan, office software business “kingsoft office software to complete the implementation of MBO” plan, by kingsoft office 27 managers subscribe for a 21.05% stake for $6 million, and operation and management directly. Kingsoft to holding the kingsoft office software company.

in kingsoft Internet security business subject, also implemented MBO program, and introduced the tencent and other external investment. Is in command personally by the hong-jiang zhang at the helm of the kingsoft cloud group in the successive introduction of millet, Yuri Milner external investment at the same time, also in the implementation of the plan.

“water fish” the long-term

after the closure of redundant operations, jinshan is focused on the carefully to do business, that is to say, more focused, doesn’t care about the results and increase investment in the business, including investment m&a to strengthen business synergy to above. This, it seems to lei jun also means the long.

“water fish” specific displays in: such as the aforementioned KPI too strong, lead to have very good execution but very rigid, will weaken the KPI today, also no longer is the focus of attention. Another side is golden hill needs to have in the future, so he hoped all the business transformation to deal with difficult, because the mobile Internet is the future.

in this regard, jinshan established cloud business mobile line, and personally as CEO by hong-jiang zhang, continue to increase investment in the.

a series of measures is the result of the performance is getting better. In jinshan recently released 2013 interim results, revenue and profit year-on-year growth of 55% and 71%, respectively; Among them, the network game revenue grew 34% to 400 million yuan (RMB, similarly hereinafter), multiple consecutive quarter of growth. And application software revenue increased by 101%, to 200 million yuan, net profit growth of 71%, to nearly 200 million yuan, the company to maintain a high level of gross margin of 87%.

“millet up red” propellant

in addition to jinshan internal uniting the martial arts, lei jun peripheral jinshan is complemented by a personal identity also.

mentioned before, as chairman of kingsoft mainly in the major strategic controls the company, the most time and energy on the millet business, however, millet up red also to some extent indirectly stimulate the golden hill.

on the surface, millet focus on hardware, Jin Shanzai software. But on the future direction of it, both has a good synergistic effect, millet future focus is to build the mobile Internet ecosystem, hardware business will be added. And jinshan established as a mobile Internet company, from games, software and security will become a member of the big ecological millet.

from millet in kingsoft cloud group, to continue to increase with the aid of jinshan system to do a series of marketing action, millet and jinshan continued to further business cooperation. Bring to jinshan is not only money, but also for the future market prospect.