"Dear shareholders, in addition to occupying 70% of China's domestic Internet market, Kunpeng Internet Company also has one of the biggest highlights. It is an advantage that no other Internet company in China has. Kunpeng Internet Company is currently tied for second place among China Internet Network Co., Ltd. The major shareholder invested RMB 3.75 billion, accounting for 25% of the shares; China Unicom also holds 25% of the shares; the largest shareholder is China Telecom, which holds 50% of the shares; China Internet Network Company not only owns domestic 163 Network and 169 Network Commercial rights, it is also the largest shareholder of China Satellite Communications Co., Ltd. with 50% of the shares. China Internet Network Corporation and China Satellite Communications Corporation have great business prospects. Investors who are willing to become shareholders of Kunpeng Internet Company will enjoy the long-term development of China's economy. It will bring huge dividends. In about ten years, Chinese Internet users will exceed American Internet users, and China, with its large population, will be the world's largest Internet market. Investing in Kunpeng Internet Company is investing in China's Internet market."
Bang bang...
Everyone's eyes lit up. The richest man in China made an astonishing statement, predicting that China's Internet market would be the largest in the world!
The opportunity is here!
Sun Jian's speech was like an IPO road show, giving shareholders attending the pENG Global Shareholders Meeting an opportunity to make a fortune.
On May 20, 1991, Kunpeng Software Company invested 50 million yuan to establish Kunpeng Internet Company in East Lake High-tech Zone, keeping pace with the world.
On July 28, 1997, Kunpeng Internet Company established China Internet Network Co., Ltd. with an investment of 2.5 billion yuan and a registered capital of 10 billion yuan from China Post and Telecommunications Corporation in Beijing.
In accordance with the share capital share and agreement, China Network completed the capital increase and share expansion on March 17, 1998. The registered capital increased to 15 billion yuan. The largest shareholder, Posts and Telecommunications Corporation, changed its name to China Telecom, investing 7.5 billion yuan and holding shares. 50%; China Unicom invested 3.75 billion yuan, holding 25% of the shares, and tied for the second largest shareholder; pIc invested 3.75 billion yuan, holding 25% of the shares, and tied for the second largest shareholder.
Sun Jian decided at that time to spin off pIc from pENG in the first half of 1999, list it on Nasdaq for financing, and use the money from international investors to build 163 and 169 backbone networks.
In order to achieve the long-term development of pIc and to meet the requirements of being spun off and listed on Nasdaq, through the decision of pENG's board of directors, pIc was changed to Kunpeng Internet Co., Ltd. with a registered capital of 3 billion yuan at the State Administration for Industry and Commerce on March 27, 1998. RMB; based on the company's net assets of US$18.65, it is converted into a total share capital of 1.865 billion shares, with a net asset value of US$1 per share.
pENG holds 1.6785 billion shares, accounting for 90%, and is the largest shareholder; China Network Corporation invested US$55.95 million, holding 55.95 million shares, accounting for 3%, and is tied for the second largest shareholder; pIc Employee Stock Ownership Association invested US$55.95 million, It holds 55.95 million shares, accounting for 3%, and is tied for the second largest shareholder; Guozhi Computer Company invested US$37.3 million, holding 37.3 million shares, accounting for 2%, and is tied for the third largest shareholder; Kunpeng Education and Poverty Alleviation Foundation invested 37.3 million USD holds 37.3 million shares, accounting for 2%, and is tied for the third largest shareholder.
The US$186.5 million invested by China Network Corporation, pIc Employee Stock Ownership Association, Guozhi Computer Company and Kunpeng Education and Poverty Alleviation Foundation to purchase shares belongs to all pENG shareholders.
Because pENG is a listed company, the existing management and ordinary employees of pIc cannot obtain the original shares of pIc at zero cost. The shares held by 6,475 management and ordinary employees are based on their position, contribution size and length of service, etc., and are priced at 1 share per 1 share. Subscribed in U.S. dollars.
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On November 25 last year, the Securities and Exchange Commission issued a notice stating that all public offerings of shares by joint-stock companies will no longer issue company employee shares.
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After pIc's spin-off and listing from pENG is approved by the shareholders' meeting, it still needs to be approved by the China Securities Journal and the U.S. Securities Commission.
In order to protect the interests of investors and take into account market fairness, when Kunpeng Internet Company IPO, pIc made a written commitment that the shares held by pENG can not be circulated until the expiration of two years after pIc's listing, and the shares held by other original shareholders can only be circulated after one year of listing. It can only be circulated after expiration.
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GpIc is also one of the biggest beneficiaries of the craziness of Nasdaq Internet technology stocks during this period!
On November 30, 1994, according to IDC statistics, the number of registered Internet users and advertising revenue of GpIc surpassed AoL. The overall ranking surpassed AoL for the first time and was promoted to the first among Internet companies in the United States, with AoL ranking second.
After GpIc went public on January 5, 1995, it invested another US$2 billion to build branches and large base stations.
By April 1998, GpIc had invested a total of nearly 4 billion US dollars. After more than 4 years of construction, two years ahead of schedule, it completed the plan to establish 51 branches and 245 large base stations in 50 states and Washington, DC. The total number of employees Reaching more than 8,000 people, expanding the database, and continuing to purchase copyrights for music, movies, books, etc., can meet the needs of 60 million Americans online at the same time.
On June 8, 1995, GpN used the web server pengNet6.0 to launch an online book sales business and an online subscription model to carry out music and movie DVD rental business. It took the lead in opening up the already established branches and large base stations with the help of UpS. E-commerce; on the same day, GpIc cooperated with Citibank to launch the first e-commerce credit card in the United States - GpIc VISA card. When people hold this e-commerce credit card, shopping and subscription will become more convenient.
A large number of copyrighted music, movies and books purchased by GpIc at discounted prices were put to use.
In May 1996, pENGtALK3.0, which supports functions such as chatting, sending messages, and transferring files on the Internet, became popular, and the number of registered users of GpIc reached more than 30 million.
The market potential is huge and advertisers are flocking to it.
In 1996, GpIc's total revenue was US$9.2 billion, an increase of 62%, net profit was US$128 million, an increase of 57%, earnings per share were US$0.14, and net assets per share were US$4.56.
In 1997, GpIc's total revenue was US$15 billion, an increase of 64%, net profit was US$270 million, an increase of 71%, earnings per share were US$0.29, and net assets per share were US$4.65.
GpIc's share price rose from the issue price on January 5, 1995 to US$125 at the end of December 1997, an increase of 18 times. In March 1998, GpIc implemented a 2-for-1 dividend plan, and the total share capital increased to 10,000 shares.
In 1998, GpIc's total revenue was US$25.8 billion, an increase of 72%; net profit was US$570 million, an increase of 114%, earnings per share were US$0.31, and net assets per share were US$2.42.
GpIc's closing price yesterday was US$84.75, with a market value of US$126 billion and a price-to-earnings ratio of 273 times!
Long-term investing shareholders such as AiwaCorporate Investment, Citigroup, Wells Fargo, JPMorgan Chase, KKR, Goldman Sachs Group, Morgan Stanley, and Bank of America have made a lot of money.
Sun Jian predicted that before the Internet technology bubble bursts, GpIc's share price will exceed US$300, and the total market value of the stock will most likely exceed pENG.
