The mini-overlord game console is a childhood memory of many post-80s and post-90s generations. Nowadays, the little overlord is in a situation of unable to pay wages, and its Z + game console launched last year seems to have run aground, and no more. As the major shareholder of Xiaobawang Culture, which is the main body of Xiaobawang operation, Yihua Holdings is difficult to sustain its high investment.
In 2019, for the little overlord who had been silent for many years, there was a lot of confusion.
In mid-May, the news came out that the project of Shanghai Branch of Zhongshan Xiaobawang Leading Technology Co., Ltd. (hereinafter referred to as Xiaobawang Shanghai) was stopped and the employees were dismissed.
In mid-July, a Letter to Employees issued by Guangdong Xiaobawang Ruyi Culture Technology Co., Ltd. (hereinafter referred to as Xiaobawang Ruyi) came out.
As head office, Xiaobawang has promised in this letter to guarantee that Shanghai will settle all employeessalaries, social security, personal taxes, provident fund and reimbursement, as well as 13 salaries and severance compensation from February to April 2019.
But on August 3, Wu Song, the former CEO of Shanghai, told Daily Economic News that he had not fully fulfilled his promises and that he still got less than half of his salary arrears. At present, we intend to resort to law.
The day before, on August 2, China Joy, the annual exhibition of the Chinese game industry, opened as scheduled. And it was at last years ChinaJoy exhibition that Little Overlord launched the Z + game console. At that time, the outside world was looking forward to it, and the media coverage was also said to be full of ink and colour.
But a year later, Wu Song returned to China Joy, and his ambitions were temporarily empty.
Yihua Holdings Headquarters Photo Source: Every Photo by Journalist Wang Fan
A year ago, on August 3, 2018, at the 16th China Joy Exhibition, Little Overlord released a Z + new game computer, and Chen Jianren, chairman and executive director of Yihua Holdings (02213, HK) held a platform conference. The group is actively exploring other business sectors, Chen Jianren confident, the game business is a good opportunity for the group.
As the main operator of Z+, Xiaobawang Culture Development Co., Ltd. (hereinafter referred to as Xiaobawang Culture) is 49% owned by Yihua Holdings, and Chen Jianren is the chairman of the company.
In the Chairmans Report of Yihua Holdings 2018 annual report, Chen Jianren wrote: The board of directors expects that with the promotion and development of electronic competition, it will bring bright market prospects for our game console. At the same time, the annual report mentions that Xiaobawang Culture will also launch its own online game platform in the first half of 2019. Several of them are exclusive games. It is expected that with the online game platform on line, it will be able to boost the sales of game consoles.
Obviously, no one expected that the Z+ project would be aborted so quickly in such a short period of time.
No money. Zhao Meng (pseudonym) is concise. He is a former employee of Little Overlord Shanghai and has a personal experience of the companys situation this year.
According to the annual report of Yihua Holdings in 2018, the company recorded a profit of about 733.3 billion yuan in the current year, an increase of 2.5% compared with 754.3 billion yuan in 2017. However, despite a slight increase in revenue, the companys owner should account for a loss of 117.4 billion yuan in 2018, an increase of nearly 921% over the previous year.
According to Daily Economic News, by the end of 2018, the total current assets of Yihua Holdings were about 1,124.3 billion yuan, but the total current liabilities were as high as 1,513.3 billion yuan. Obviously, Yihua Holdings is facing enormous short-term debt repayment pressure. In addition, by the end of 2018, the cash and cash equivalents on Yihua Holdings account were about 216.1 billion yuan, but the companys outstanding loans amounted to 605.5 million yuan.
Due to poor performance, Yihua Holdings share price is also sluggish. On August 5, Yihua Holdings opened at HK$0.36 per share, setting a new low since its listing. As of August 9, the market value of Yihua Holdings in the Hong Kong stock market was only 421 million Hong Kong dollars.
Photo Source: Wind Screenshots of Stock Price Trends since Yihua Holdings went public
On the other hand, for Yihua Holdings, the Z+ project is still in the early stage of continuous investment, lacking profitability, which will inevitably drag down the performance of listed companies.
Reporters noted that from 2016 to 2018, Yihua Holdings should account for 19.9 million yuan, 5.448 million yuan and 7.262 million yuan of the post-tax losses of Xiaobawang Culture, respectively, and the losses are increasing year by year. At the same time, Xiaobawang Culture has been cooperating with AMD to develop special semi-custom system chips for game products only for use by the company. To this end, Xiaobawang Culture paid 47.743 million yuan, 90.519 million yuan and 52.872 million yuan to AMD in the above three years, totaling about 190 million yuan in three years. However, Wu Song said: Yihua Holdingsactual investment may be much larger than this figure.
In the case of their own performance worries and financial constraints, it is still unfair to say that Yihua Holdings has not made up its mind to support Z+.
But after the high-profile appearance of the 16th China Joy, the original Z + game console, which was expected to be on sale in August of that year, will not be available by the end of 2018. It is evident that the Z+ project is in a dilemma.
Wu Song was reluctant to disclose the underlying causes of the projects grounding. Previously, there have been reports that Yihua Holdings is pessimistic about the progress of the project. However, Wu Song told Daily Economic News that Yihua Holdings has already made a clear budget for the project investment, anticipated the risk of system development difficulties, and had corresponding countermeasures. At the same time, the project is progressing smoothly and the product is well-crafted. This chip uses a lot of the latest generation of AMD technology, which is more advanced than Microsoft and Sony, which came out five years ago. In his eyes, the only unexpected risk was the lack of manpower due to the shortage of funds hindering recruitment.
So far, Yihua Holdings may have been powerless, and no longer intends to make sustained, stable and high investment in the culture of the small overlord.
Visiting Yihua Holdings Headquarters-Xiaobawang has already moved away
In 2013, Yihua Holdings successfully listed in Hong Kong with 13 retail stores as business support. At present, under the Yihua system, there are shopping malls, hotels, convenience stores, property management and other major business sectors.
Yihua Holdings is located in Yihua Building, the core business circle of Zhongshan City. On July 22, a reporter from Daily Economic News noticed that Yihua Department Store and Wanguo Convenience Store were distributed around the building. Whether it is the name of the building or the surrounding environment, it is full of the imprint of Yihua.
Yihua Holdings format? Photo Source: Photographed by reporter Wang Fan
According to the building staff, the whole building is Yihua, both for rent and for self-use. Reporter visits found that the building has 9 floors, 1 - 8 floors are rented out, while the top 9 floors are distributed in Yihua Holding Headquarters, Guangdong Yihua Department Store Co., Ltd., Guangdong Yihua Group Investment Co., Ltd. Yihua Department companies.
On the 8th floor of the building, new users will be coming to the office, which belongs to the culture of Little Overlord. When the reporter visited here in May this year, the door of the office once rented by the Little Concubine Culture was closed, and the sign of the Little Concubine was on the door plate. The corridor was covered with the advertisement of the Little Concubine Z + New Game Computer, accompanied by the words Global Initiative, the King Returns to the Little Concubine. At that time, property workers told reporters that the culture of the little overlord had been removed for half a year.
On July 22, the reporter visited again and found that the office was being renovated and was about to move into a new tenant, while the little overlord sign that had been posted on the corridor and doorway had disappeared.
The picture above shows that in May this year, the corridor of Xiaobawang Culture Office has posted the advertisement of Z+New Game Computer. In July this year, the original office of Xiaobawang Culture is being renovated and will be moved into a new tenant. The advertisement of Xiaobawang posted in the corridor has disappeared and become a temporary warehouse photo source.
At present, the official website of Xiaobawang culture has been unable to open. On the China Execution Information Open Network, an information filing date of July 10, 2019 shows that the Xiaobawang Culture is the executed person, and its obligations determined by effective legal documents is the executed person pays RMB 1.733 million yuan and interest 51.4 million yuan to the applicant for execution, and the liquidated damages are 500,000 yuan, temporarily totaling 22.827 million yuan. The overlord culture has not fulfilled all and has the ability to fulfill but refuses to fulfill the obligations established in the effective legal documents. Another piece of information, also as the executed person, was filed on July 26, 2019.
As for the problems such as the arrears of salary of investors and the development of Xiaobawangs cultural business alleged by Xiaobawang Shanghai, the reporter of Daily Economic News consulted the employees of a Yihua Department company during a field visit. The other side said that this problem may be more appropriate for Lin Guangzheng to respond to, and he may have a better understanding of the situation. Situation.
The annual report of Yihua Holdings in 2018 shows that Lin Guangzheng is the executive director of the company, holding about 1.07% of the shares. The announcement of Yihua Holdings on April 25 shows that Lin Guangzheng has resigned as the executive director and took effect on that day. In addition, Lin Guangzheng is also a shareholder of Xiaobawang Culture.
For the reporters interview request, the above employees said that they had transmitted the interview letter to Lin Guangzheng. Lin Guangzheng said that they needed internal consultation before replying. But as of the time of publication, the reporter did not receive a reply.
No one last year
Industry and commerce data show that Lin Guangzheng is still the legal representative of Xiaobawang. Previously, it was Xiaobawang who issued the Letter to Employees in the name of the head office that promised to guarantee the salary of Xiaobawang employees in Shanghai in February, March and April 2019 and to pay five insurance and one personal tax for all employees in accordance with the law, as well as 13 unpaid salaries and severance compensation in 2017 and 2018.
According to Qixinbao data, the shareholders of Zhongshan Xiaobawang Leading Technology Co., Ltd. (hereinafter referred to as Xiaobawang Leading Technology) are Xiaobawang Culture and Dumuxian. Xiaobawang has no shares as expected. Wu Song explained to reporters that the reason why the Letter to Employees was issued by the small overlord was that in order to achieve the target of listing, in 2017, the small overlord had successfully controlled the culture of the small overlord through VIE agreement, so the small overlord promised to guarantee it.
Now I have received wages, social security, personal tax, provident fund and other arrears from February to April 2019, but I have not received 13 salaries and severance compensation in 2017 and 2018. Zhao Meng told Daily Economic News, This is probably what General Wu (referring to Wu Song) said about getting half of the arrears.
However, Wu Song told reporters that the money was not from Yihua Holdings, but from a manufacturer authorized by Xiaobawang Trademark. They are also using the Xiaobawang brand, on the one hand to share the pressure for the group company; on the other hand, they are worried that too much negative impact on production and sales, so they paid us this part of the money. Wu Song said that he showed reporters the chat record of the mobile phone micro-letter and Yihua Holdings for salary. But only Wu Songs message was recorded in the chat, Later, Yihua Holdings has never responded to the demand to settle the arrears of salary, and we are very chilly about it.
Despite being labeled as childhood memories, most people still have the impression of game makers, but Wu Song told reporters that before launching the Z+ host program in 2016, Xiao Baowang had in fact not really involved in the game industry for more than a decade. Some shopping platforms can see similar Little Concubine dance blankets and Android set-top box game consoles, which are authorized by Little Concubine to these manufacturers, but over the years, little Concubine has not made any investment in independent development of the game project except Z+.
Daily Economic News reporter consulted China Trademark Network and found that there are 316 trademarks with the word Little Overlord. These goods have a wide range of cross-border, including cookers, electric kettles, shoes, raincoats, head-mounted virtual reality devices, smart glasses, electronic learning machines and so on. It shows that the most frequently applied applications are made. Fang is Guangdong Yihua Group Investment Co., Ltd. The earliest application record can be traced back to 1991.
When investing in Xiaobawang Culture, Yihua Holdings once proposed to pack the main assets of Xiaobawang Culture and Xiaobawang brand into the market and create a new hegemony of the game industry with a market value of more than 50 billion yuan in the future.
The dream of 50 billion market capitalization still rings in the ears, but it seems that the bully has gone further and further away from this goal.
Wu Song is certainly not satisfied with the situation. He claims to be a perfectionist. In August 2018, shortly after the release of Z+, he personally went down to the production line with the red banner of Little King Z + New Game Computer Mass Delivery Ceremony hanging in the workshop. At that time, his microblog name was Wu Song-Xiaobawang Zjia.
Photo Source: Wu Songs microblog screenshot
On August 3 this year, Wu Song changed the name of his micro-blog to Wu Song is more and more frustrated and brave, and he finally updated his long-standing micro-blog:
When the moon was full last year, the lanterns were as bright as day.
Willow shoots on the moon, after dusk.
This year when the moon is full, the moon and the lamp are still there.
Not last year, tears wet spring shirt sleeves.
The microblog shows that the posting place is the host of the current China Joy, the New International Exposition Center in Shanghai.
Wu Song carefully matched two pictures, one of which was a new Z+ game computer. In another picture, he stood in front of the big little bully Z+, with his arms open and his spirits flowing.
Cover Photo Source: Every Photo by Journalist Wang Fan
Source: Daily Economic News Responsible Editor: Yao Liwei_NT6056