The last entrepreneur obsessed with subsidies and advertising, and fell into the automotive field was Jia Yueting.
Editor’s note: This article comes from “ Future Car Daily ” (WeChat public account ID: auto-time), author: Jiaoman Ting.
Image source: WeChat public account “Ruixing Coffee”
Author | Jiao Manting
Edit | Xu Yang
Lu Zhengyao said in the circle of friends, “Today is full of vitality.”
Lu Zhengyao is the chairman of Ruixing Coffee, Shenzhou UCAR, Shenzhou Car Rental and Bao Wo Motors. He is good at smashing the Capital Bureau and quickly seeking an IPO through a simple and crude method of burning money subsidies and intensive financing.
Now that the first three companies have been listed, Baowo Automobile also has a strong momentum. You can see “expensive” advertisements in theaters and elevators. Copy.
But now he needs more than energy.
In the evening of April 2, Beijing time, on the eve of the opening of U.S. stocks, Ruixing Coffee released a report that COO and some of its employees have engaged in some misconduct since the second quarter of 2019. 100 million yuan.
After the opening of the US stock market, Ruixing’s stock price plummeted, once plunging nearly 80%, and its market value shrank to US $ 1.6 billion. On April 3, Hong Kong-listed Shenzhou Car Rental also plunged. The stock price plummeted by more than 70%. Since then, the company announced an emergency suspension, which plummeted 54.42% before the suspension.
The slump in market value is just the beginning. Several law firms in the United States have announced that they will initiate a class action. Ruixing may face huge lawsuit compensation and the defendant may be liquidated.
Burn money for large-scale, intensive financing, cash on the market, invest capital in the next area, and repeat the story. But nowadays, the story of Ruixing Coffee is facing bankruptcy. Can Baowo Automobile, which tells almost the same story, continue to survive?
Image source: Nasdaq
Recapture Ruixing Capital
Baowo Automobile is the fourth capital story told by Lu Zhengyao.
In March 2019, Lu Zhengyao won a 67% stake in Baowo Automobile for 4.109 billion yuan through an indirect acquisition. At that time, Baowo Automobile was regarded as a “loss hole” by Foton Motor. In 2017 and 2018, it lost 275 million yuan and 2.545 billion yuan, respectively.
In Lu Zhengyao’s opinion, Baowo Automobile has the gold-colored signboard of “the fourth largest brand in the Empire.” With it, the Shenzhou Department can tell an “ecological” story. In this ecology, there are “Shenzhou UCAR”, which specializes in special cars, car buying, and flash loan business, and “Shenzhou Car Rental,” which focuses on car rental business. The field of automobile manufacturing in the upstream of the industrial chain.
In an interview with Tech Planet, Jin Haitao, the founder of the new commercial workshop, further interpreted that as an entrepreneur who understands capital, Lu Zhengyao’s entry point is to enter the blue ocean market with opportunities. Just as Rui Xing originally claimed that 1 billion people in the blue ocean market of coffee have never drunk, while in the blue ocean market of automobiles, the public complained that the 4S shop was expensive, but could not leave.
After the successful acquisition of Baowo, Shenzhou stated that it would use the “new car retail” approach to empower Baowo, fully realize the separation of Baowo ’s production and sales, reshape channels, and restructure car consumption.
In December 2019, Baowo Motors brought in CCTV host Lang Yongchun and “Tiger Brother said the car” and Yu Hu recorded a 15-second advertising video for building elevator playback. “Expensive is good, good is expensive, so expensive!”, “Three years of battle in Dakar” and other magical advertisements repeatedly bombarded, a wave of presence for Bao Wo cars. According to internal calculations of Bao Wo, this publicity effect is six times that of advertising.
Bao Wo car advertisement Picture source: WeChat public account “Bao Wo car”
Lu Zhengyao also uses makeup