Li Xuliang's adventures and kung fu

[Source: "New Industry" August issue Sun Yanwei]

In just 3 years, Qinshang Optoelectronics (002638.SZ) has grown rapidly from 424 million yuan in 2009 to 769 million yuan at the end of 2011, and successfully landed in Shenzhen GEM in late November 2011, becoming the first in China. LED companies listed on the LED lighting concept.

However, Li Xuliang, founder and chairman of Qinshang Optoelectronics, seems to be not satisfied with this, and has begun a new adventure.

A large-scale "factory incubation plan"

It is being launched nationwide. According to Li Xuliang, Qinshang Optoelectronics will re-create a batch of “diligent mode” factories nationwide in the form of paid services. To this end, after half a year of listing, Qinshang Optoelectronics is preparing to issue 800 million yuan of bonds to supplement the company's working capital.

"Now the LED lighting market is far from the time of inventory, and there is no market pattern. The large-scale market explosion has not really begun." Recently, Li Xuliang told the "New Industry" that Qinshang Optoelectronics has been working in the LED lighting market. For eight years, I don't want to "get up early, catch a late set."

"There are nearly 200 companies that come to negotiate the 'factory incubation plan', and there are four companies in Japan and the United States that have officially signed a contract to form a taste for LED lighting products." Li Xuliang said.

Many LED manufacturers pointed out that Qinshang Optoelectronics' market expansion strategy and product price positioning are very aggressive. Although it has once caused Qinshang Optoelectronics to fall into the shortage of funds, it is said that Qinshang Optoelectronics and Li Xuliang The previous adventure was a success. However, how the future will develop is still difficult to evaluate.

Li Xuliang's adventure

In fact, Li Xuliang has long been called a "gambler" by the outside world, and the success of Qinshang Optoelectronics today is also the result of Li Xuliang's repeated adventures. It is difficult to trace how Li Xuliang’s life every barrel of gold is coming, but Li Xuliang’s original entrepreneurial experience should be the birthplace of his entrepreneurial adventure genes.

As early as 2004, Li Xuliang began to notice the LED lighting market opportunity. In 2007, Qinshang Optoelectronics' high-power LED lighting products began mass production, and Li Xuliang also began to bring a huge pulling effect to the LED lighting market in the 2008 Beijing Olympic Games. Although at this time, Qinshang Optoelectronics earned a lot of money in the overseas LED decorative light market, and achieved little success in the LED street light market, but it is still far from Li Xuliang's LED lighting dream.

Introduce external capital, quickly make the scale of photoelectric LED lighting on the big diligent, and grab the LED lighting head soup.

Li Xuliang's biggest and most difficult adventure in life is also unfolding.

In October 2007, Li Xuliang's Qinshang Group signed the gambling terms with Shenzhen Venture Capital, Tongying Venture Capital, Daqing Zhongke Huiyin and other investment institutions, and promised the profit of Qinshang Optoelectronics in 2007, 2008 and 2009. It has reached 60 million yuan, 80 million yuan and 110 million yuan respectively. Among them, Shenzhen Venture Capital and Daqing Zhongke Huiyin have invested about 15 million yuan.

Qinshang Optoelectronics, which received capital support, quickly overweighted the LED lighting field and successfully obtained many well-known projects such as Beijing Green Olympic Road Lighting Project and Tsinghua University Olympic Stadium Road Lighting Project. Qinshang Optoelectronics began to emerge in the Chinese LED lighting industry.

In July 2008, Qinshang Group once again raised funds from Shenzhen Ruide Haichuang, Shanxi Dazhengyuan Investment Co., Tianjin Dazhengyuan Investment Fund, Jiangsu Gaotou Growth Venture Capital, etc., and the gambling clause clearly rose to a higher level. Qinshang Optoelectronics not only promises to guarantee its profit target for three consecutive years, but also promises to list on the small and medium-sized board or the GEM in the next 30 months.

something unexpected may happen any time. The sudden international financial turmoil at the end of 2008 caused Li Xuliang and Qinshang Optoelectronics to suffer heavy losses. In 2008, Qinshang Optoelectronics earned 457 million yuan and net profit was 59.57 million yuan. In 2009, Qinshang Optoelectronics only earned 424 million yuan, down 7% year-on-year, and net profit was only 66.25 million yuan.

The above performance is far lower than Li Xuliang's original promise, and the gambling service is the only result. The Qinshang Group compensates the gambling party for the share of the issuer's shares in the form of one share for every 10 shares, in lieu of the relevant cash compensation agreement in the original agreement.

However, at this time, Li Xuliang and Qinshang Optoelectronics have become the driving force in LED lighting. On the one hand, the rapid expansion has made the company's capital chain increasingly tight, and the signed gambling agreement has not ended. On the other hand, in 2009, the Ministry of Science and Technology decided to implement the “Ten Cities and Ten Thousand Cities” project in 21 key cities across the country. Lost.

At this point, the "gambler gene" once again attacked Li Xuliang, gambling, may not lose!

From November 2009 to December 2010, Li Xuliang was unacceptable, once again financing 10 investment institutions and 11 natural persons, and promised that Qinshang Optoelectronics succeeded in IPO at the end of 2011. Otherwise, the investor has the right to request the Qinshang Group or Li Xuliang to acquire all the shares of the issuer held by the investor at the purchase price of the investor.

At this point, Li Xuliang signed 12 gambling agreements with 22 institutions and more than 30 natural persons, and the shares of Qinshang Optoelectronics held by Li Xuliang's Qinshang Group were gradually diluted from the initial 62.55% to 34.53%.

However, this time Li Xuliang was fortunate. Qinshang Optoelectronics successfully listed on November 24, 2011, issuing 46.735 million shares, a net offering of 1.057 billion yuan, and an over-raised 593 million yuan. All of the above gambling terms were all cleared.

(unfinished)

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