What is behind the collapse of the AI sector by one's own efforts, and Kunlun Wanwei's sharp drop?

Original text: Gelonghui

Image credit: Generated by Unbounded AI‌

When it comes to marriage, there are only one type of people who can be absolutely budget-conscious:

**Boss of a listed company. **

Last night, two big melons came out in the AI circle:

Kunlun Wanwei issued an announcement stating that shareholder Li Qiong intends to reduce his holdings of no more than 3% of the company's shares. At the same time, in order to support the long-term development of the company's AGI and AIGC businesses, Li Qiong will lend more than 50% of the after-tax income from the reduction of shares to the company. The interest is 2.5% per annum.

Zhuo Shengwei issued an announcement stating that Mr. TANGZHUANG (Tang Zhuang), one of the actual controllers of the company, and Ms. YIGEBING (Yi Gebing) have dissolved their marriage relationship after friendly negotiation, and have made relevant arrangements for the division of divorce property. "Fee" as high as 3.4 billion yuan.

For a time, "cash out" was full of doubts, and the capital market responded immediately.

As soon as the market opened today, Kunlun Wanwei and Zhuo Shengwei both opened lower. Kunlun Wanwei's decline deepened in the afternoon, and it directly fell to the limit in late trading.

It can be said that it brought down the AI sector with its own power.

If ordinary people are put aside and divorced because of their bad relationship, I really believe it, but who made these people the management of listed companies, really have no calculations in their hearts?

Believe it or not, I don't believe it anyway!

There are more divorces this year than in previous years

There are quite a lot of divorces of bigwigs in listed companies this year.

Before there was the leader in red, and later there was the major shareholder of Zhuo Shengwei, and an ex-wife of Kunlun Wanwei was interspersed.

Coincidentally, these bigwigs are all AI companies, let’s not talk about pure or not, but at least the concept of rubbish is grasped, and many of them have come up with big models in a serious manner.

That’s enough for the market to speculate and question, why are the executives of AI companies getting divorced, why don’t real estate bosses and manufacturing bosses get divorced?

In fact, I really can't blame the market for not supporting you, but when the stock price has risen so much, there is such a drama. If you really have a bad relationship, why didn't you leave before?

Besides, when the stock price is skyrocketing, you shouldn't raise your glass to celebrate, don't you? It is said that people are in good spirits on happy occasions, which is good for them, and they get divorced on happy occasions.

See you soon!

You know, the cost of divorcing and splitting the family is not small, and it will cost billions of dollars. If the bosses really want to be romantic and happy, they are afraid that there will be no chance, so let's take a step forward and say that it is too expensive to spend such a high separation fee.

Therefore, there may be only one truth, that is, whether the relationship is good or not is not important at all, money is king. You must know that these people are all in business, and their calculations are not comparable to ordinary people.

Take Kunlun Wanwei as an example, it reduced its holdings, and even manipulated it to lend the money back to the company. According to a rough estimate of the current stock price, 3% of the shares correspond to 2 billion, half of which is 1 billion. After paying 20% of the tax, there is still 800 million left. According to the annual loan interest rate of 2.5%, ** earns 20 million a year **, and as long as the company can pay interest normally, the interest will continue to flow.

If there are only 100,000 to 80,000, then you must go to the stock market to make a big fortune. This is a typical retail investor behavior. But they are 800 million, safe and stable, and there are 20 million interest income every year, so they can make a steady profit without losing money, who knows how to count.

The small shareholders of Kunlun Wanwei are keen on chasing ups and downs every day, and they are terrified of making money. Although you can show off this kind of thing in wealth and insurance, but if you want to make wealth easy to get, and in the long run, you can have children and grandchildren, endlessly, you can only admire the wisdom of your major shareholders.

The operation of Zhuo Shengwei's major shareholder is also a classic.

According to the "Divorce Property Division Agreement" signed by Tang Zhuang and Yi Gebing, Tang Zhuang transferred 32.7575 million shares of the company he held to Yi Gebing. After this equity change, Tang Zhuang held 8.1618 million shares of the company. Accounting for 1.53% of the company’s total share capital, Yi Gebing is no longer a shareholder holding more than 5% of the company’s shares; Yi Gebing holds 32.7575 million shares of the company, accounting for 6.14% of the company’s total share capital, and is a shareholder of the company holding more than 5% of the company’s shares.

The announcement also shows that Zhuo Shengwei shareholders Xu Zhihan, FENGCHENHUI (Feng Chenhui), and Tang Zhuang are acting in concert, jointly controlling 33.36% of the company's voting rights, and are the company's actual controllers. The above matters will not lead to changes in the actual controller of the company, and do not involve changes in the company's control rights. Yi Gebing will hold all voting rights, nomination and proposal rights corresponding to the company's 32.7575 million shares (accounting for 6.14% of the company's total share capital) Tang Zhuang is fully entrusted with the exercise of other rights other than property rights such as the right to participate in the meeting, the right to supervise and suggest, and the right to profit and share transfer. The number of shares corresponding to the voting rights of Tang Zhuang before and after the equity change remains unchanged, still 40.9193 million shares, accounting for 7.67% of the company's total share capital, and the actual controller's joint voting rights are still 33.36%.

This is actually "dividing shares without dividing rights", that is, the equity has been divided, but the control is still in your own hands. **

ox!

The word "money" that can't be avoided

**Businessmen are always beneficial. **

From a commercial point of view, whether it is Kunlun Wanwei or Zhuo Shengwei, it is difficult to find faults in the reduction and cash-out of holdings, and the procedures are in full compliance with laws and regulations. But from other perspectives, not necessarily.

Just imagine, if it weren't for the sudden AI frenzy, it would be difficult for the stock prices of these companies to achieve such a high increase in such a short period of time.

Take Kunlun Wanwei as an example. Its business is only a superficial Internet information distribution and operation company. The annual revenue scale is less than 5 billion. In the early stage of mobile Internet development, the performance growth was good, but after 2018, the slowdown was obvious, and the CAGR was only 7%. The company's net profit is negative growth, and the stock price has been lying low for many years.

It is such a company that has been promoted to the altar of AI concept stocks by accident, and I still haven't figured out what happened. Judging from the news released by the company, they have indeed launched the AIGC model - Tiangong, and many application fields overlap with chatGPT.

However, last year, the company's research and development expenses were only more than 600 million yuan, which is already the highest in history. With such a small amount of money, a large model can be made. It can only be said that whoever loves it will believe it.

If I want to compete with open AI, I'm afraid I haven't even seen their backs.

However, sometimes, people are not as good as God. It is estimated that even the management of the company did not expect that such a big piece of "pie" would fall from the sky. **If it is not for the soaring valuation brought about by this "pie", Kunlun Wanwei would like to To reach the current market value, I don't know that it will take the year of the monkey. **

Of course, it is definitely wrong to say that Kunlun Wanwei is completely hypocritical and has nothing to do with AI.

Kunlun Wanwei's business, such as information distribution, games, and entertainment, are all key application areas of AI, and the cost reduction and efficiency increase brought by it are still obvious. Leaving aside its big model, at least these businesses are certain to have performance.

However, before the performance is realized, the major shareholders seem to be unable to wait.

Zhuo Shengwei is actually similar.

The company mainly produces radio frequency chips, which are used in smartphones, and are competitors with Qorvo and Skyworks in the United States.

From the perspective of the industry, the company has indeed caught up with the good times. In 2019, the United States began to ban the sale of chips to Huawei, which gave Zhuo Shengwei the opportunity to replace its American counterparts and supply Chinese smartphone factories. At that time, it was reported that it began to supply Huawei products are tested and entered the Huawei industry chain. At that time, not long after the company landed in the capital market, the market's crazy hype for 5G commercial use and domestic semiconductors made its stock price soar from more than 6 yuan when it was listed. The flood of liquidity after the new crown epidemic in 2020 further boosted its stock price to 339 yuan, an increase of more than 50 times in two years, and its market value exceeded 100 billion.

But then encountered a downturn in the semiconductor cycle, and the stock price plummeted 78%.

The difference is that compared with Kunlun Wanwei's performance, Zhuo Shengwei is still remarkable. Revenue has more than doubled from 1.5 billion in 2019 to 3.6 billion in 2022, and net profit in the same period has also doubled from 500 million to 1 billion.

In fact, in addition to the concept of AI, Zhuo Shengwei is also a very important driving factor. The inventory clearance of the semiconductor industry is about to be completed, and the cycle is entering a reversal. Coupled with the fact that it is in the semiconductor industry, emphasizing technology and research and development, the fundamentals of Zhuoshengwei are much higher than those of Kunlun Wanwei.

But it is such a company, the major shareholders are still so impatient.

All I can say is, hey!

Humanity Test

The financial market is known for its high efficiency. In down-to-earth words, there is a chance to get rich overnight.

**A technology, a message, or even a pre-set hype can instantly increase wealth by N times, which is far beyond comparison in business. **

It is precisely because it is so close to money that financial supervision is the strictest, and there are many laws and regulations. Mistakes in other industries can be criticized and educated, but it is not so simple to make mistakes in the financial market, ranging from huge fines to squatting in a brothel.

However, there is never a shortage of smart people in the financial market. If you have a trick, I can naturally break it.

Since then, divorce has become a common routine, which is no different from the divorce for real estate speculators in the past. If you really want to find the difference, it is the divorce certificates of ordinary people. One billion, I'm too embarrassed to say it.

Ordinary people and bigwigs, heaven and earth, that's about it.

**The financial market is an extremely testing place for humanity. Money and desire, morality and justice, can be very high-sounding. **

Just like the divorce of the bosses, which law can you find that stipulates that they cannot divorce? Can you find out which law stipulates that they cannot do property division after divorce as they say?

It doesn't matter if you talk about Jin Chan getting out of the shell, cashing out successfully, or even tax avoidance, as long as the procedure is OK, what can you say?

This is called procedural justice.

But outside of the program, we also feel embarrassed by the way these bigwigs eat. Although it is said that the opportunity to get wealth at your fingertips is not every day, but it is so ugly that it is so urgent.

**I just hope that these bigwigs have a bigger structure and a wider mind. Since they have chosen to go public, they must create more value for shareholders instead of just thinking about improving their lives. **