The Red Era: Living in Seclusion in a Siheyuan as a Boss

Chapter 786 A Genius in the Investment World!!!

At the beginning of 2000, "Xin Dongfang" ushered in a new opportunity for development.

With China's imminent accession to the WTO, the domestic study abroad boom continues to intensify. Taking advantage of this trend, the "Xin Dongfang" Group launched a "one-stop study abroad service," which integrates language training, university application, visa guidance, and other aspects to form a complete industrial chain.

In the first quarter alone, revenue from the study abroad business increased by 200% year-on-year.

In terms of technological research and development, Yu Minhong overcame all opposition and invested 3000 million yuan to develop an online teaching system.

Data from the testing phase showed that learners using the system experienced a 40% increase in learning efficiency.

Looking at the financial statements, Duan Yongping, senior partner of Jingxi Capital, exclaimed, "This investment has been profitable again!"

In April of this year, "New Dongfang" ushered in a historic moment - successfully listing on the New York Stock Exchange, becoming the first domestic education company to be listed on the M-share market.

At the highly anticipated bell-ringing ceremony, Yu Minhong, the founder of "Xin Dongfang", specially invited a mystery guest, Mr. Duan Yongping, a partner of "Jingxi Capital", to join her on stage to ring the bell.

This meaningful arrangement immediately attracted widespread media attention and brought this low-profile investment legend into the public eye for the first time.

As the media delved deeper into the story, people were surprised to discover that this seemingly ordinary investor was actually one of the most dazzling stars in the domestic investment world in recent years.

As a core partner of "Jingxi Capital", Duan Yongping not only successfully invested in "Xin Dongfang", but also accurately positioned many rising star companies in the past few years, making him a "golden touch" in the venture capital circle of Xia Guo.

Although he is not well-known among the general public, Duan Yongping is already a recognized "investment genius" in professional investment circles.

His unique investment acumen and accurate business judgment have made him one of the most sought-after rising stars in the financial field in just a few years.

According to industry insiders, if it weren't for the special partner-level treatment given to him by "Jingxi Capital", this investment prodigy would probably have been poached by other top investment institutions with hefty sums of money long ago.

Speaking of Mr. Duan Yongping, his life experience is also extraordinary.

Before entering the investment field, Duan Yongping was a factory worker who would run around the workshop in worn-out shoes. However, with his tenacity, he managed to carve out a niche for himself in the financial and business world.

After hearing his story, many people would think: as long as you don't give up, anyone can become a "winner in life"!
Duan Yongping's childhood can be summed up in one sentence: he was dirt poor, but his dreams shone as brightly as the stars in the sky.

He was born in the mid-1950s, a time when his family was so poor they never even owned a decent pair of shoes.

When he was a child, Duan Yongping's favorite thing to do was to sneak into his neighbor's house to watch TV. When he saw the advertisements on the big screen, he secretly vowed, "I want to live a life with money and leisure like them."

Of course, in those days, television was not a standard feature in every household. Being able to watch television was like winning the lottery.

The shoes Duan Yongping wore as a child, the soles of which were almost falling off, made walking feel like walking on cotton.

The family was so poor that they didn't even have a decent book. The only "extracurricular books" were a few tattered magazines from the village.

Back then, the villagers all said to Duan Yongping, "If you can make something of yourself in the future, it will be a huge miracle."

Upon hearing this, Duan Yongping secretly vowed, "I must change my destiny!"

After the resumption of the college entrance examination, Duan Yongping was admitted to the Department of Radio Engineering at Zhejiang University. After graduation, he joined Yanjing Electron Tube Factory (the predecessor of BOE Technology Group).

After a few years, Duan Yongping felt that the environment within the system was a bit restrictive, so in 1986 he was admitted to Renmin University to study for a master’s degree in econometrics, but he left before finishing his thesis.

What truly made him stand out was 1989.

That year, Duan Yongping came into contact with the stock market for the first time.

At first, Duan Yongping was like a novice, buying a few stocks, only to lose a fortune.

Some people advised him, "Stop playing around. You'd be better off going back to farming than losing money."

But Duan Yongping was unconvinced, thinking, "So what if I lost money? I still have to learn."

Duan Yongping began to study frantically, buying books, reading newspapers, attending lectures, and even traveling to the stock exchanges in Shanghai and Bao'an Special Economic Zone to "learn from their experience."

During that period, Duan Yongping would get up early every day and immerse himself in the stock market, like a "stock market fanatic".

Once, Duan Yongping used all his savings to buy a stock, but the company suddenly declared bankruptcy, and he lost everything.

That day, Duan Yongping almost broke down, but he told himself, "Failure is the mother of success, and I must persevere."

Hard work pays off.

After three years of dedicated study, Duan Yongping gradually figured out the operating rules of the capital market.

In the early 1990s, Duan Yongping keenly sensed the rise of the island real estate industry and decisively invested his remaining 5000 yuan in the stock of an obscure real estate company.

Amazingly, just six months later, the value of these stocks tripled, and Duan Yongping's life took a turn for the better.

Having tasted success, Duan Yongping did not stop there.

He began to systematically study the development trends of various industries, paying particular attention to potential companies that were underestimated by the market.

In 1993, Duan Yongping made a shrewd investment in an electronics factory that was on the verge of bankruptcy.

At that time, he took over a nearly bankrupt electronics factory in Chung San, which still owed 200 million yuan in debt.

He did something big – he launched the “Step by Step” Little Tyrant game console and learning machine.

How did we open up the market back then?
Duan Yongping focused on three key points: first, the product quality was excellent, with a return rate of less than 0.3%, meaning fewer than 3 out of 1000 units were faulty; second, Jackie Chan was hired as the spokesperson, and advertising was ubiquitous; and third, a nationwide warranty was provided, making after-sales service extremely convenient. As a result, a year later, Subor's output value exceeded 10 billion yuan.

It was this investment that brought this previously unknown young man to the attention of the founder of "Jingxi Capital".

A few years later, Duan Yongping's "Bubusheng" company was acquired by "Jingxi Capital", and he himself joined "Jingxi Capital", starting his legendary investment career.

He often says, "Investing is like playing chess; you have to see three moves ahead." It is this forward-thinking strategic vision that enabled him to withdraw his investment in time before the dot-com bubble burst and then boldly invest in the education industry, "New Dongfang."

Standing on the bell-ringing platform at the New York Stock Exchange, Duan Yongping looks at the flashing lights below, but what comes to mind is the image of that young man in worn-out shoes, sweating profusely in the workshop.

He quietly clenched his fist, secretly vowing to help more people who, like himself in the past, harbor dreams in the future.

An outstanding investor like Duan Yongping is also a very distinguished figure within a financial behemoth like "Jingxi Capital".

At Duan Yongping's suggestion, "Jingxi Capital" invested and decided to "enter" the educational electronic product market, and Duan Yongping founded "Bubusheng Group".

When this name is mentioned, many people might think, "Does this imply that you can walk higher?"

Duan Yongping's philosophy is to enable every child to "make steady progress" in their studies.

His product took off like a rocket, and children in the education sector began using his learning machine.

I heard that a child was using a learning machine to study and was asked, "What are you doing?"

Duan Yongping proudly replied, "I'm using Duan Yongping's products to learn, come and see!" The advertising effect was simply amazing!
With its "user-centric" philosophy, BBK has gradually gained a foothold in the market.

"Bubusheng" company continues to innovate and has begun to venture into the fields of mobile phones and home appliances.

Especially in the mobile phone sector, Duan Yongping's team has launched products that balance quality and cost-effectiveness, winning consumer recognition.

During this stage, he was both an entrepreneur and an industry explorer, proving through his actions that "as long as you have a dream, you can definitely achieve it." In his view, entrepreneurship is not about blindly following trends, but about cultivating expertise and finding your own core competitiveness.

For example, "Step by Step" learning machines emphasize quality and user experience, and later on, they also insisted on independent research and development for mobile phones to avoid copying trends.

This persistence has gradually made the company an important member of the technology industry in China.

The "Step by Step" learning machine has achieved great success in the market, and Duan Yongping's importance in "Jingxi Capital" has become increasingly strong as a result.

A subordinate asked him, "Mr. Duan, how did you do that?"

Duan Yongping joked, "The secret is to make a good product that kids will love! If you could add a 'buy one get one free' offer, it would be even more perfect!"

Duan Yongping's sense of humor is truly ubiquitous; he can even talk about the secrets to success so easily.

Of course, Duan Yongping's road to success was not smooth sailing.

He experienced countless challenges and failures, enough to make an inspirational movie.

Whenever he encounters difficulties, Duan Yongping is like a superman, becoming more courageous with each setback and continuing to charge forward.

Someone asked him, "Mr. Duan, what's your secret?"

He laughed and said, "The secret is not to be afraid of failure. If you fail, just try again! Just like when I was a kid selling small commodities, there will always be customers who will buy!"

In Duan Yongping's view, failure is not terrible; the key is to learn from failure.

"Bubusheng" once encountered a major product quality problem. Faced with customer complaints, Duan Yongping, the general manager of "Bubusheng" under the "Jingxi Capital" holding group, did not choose to evade the issue, but took the initiative to recall all problematic products and make improvements.

Duan Yongping's move won the trust of consumers and further solidified his brand image.

Someone joked, "Mr. Duan, are you doing 'reverse marketing'?" He replied with a smile, "No, I'm doing integrity marketing!"

Duan Yongping is not only an entrepreneur, but also a highly respected investment expert.

His investment philosophy is simple yet profound: "Buy companies with potential that are undervalued."

Unlike some speculators who chase short-term trends, Duan Yongping focuses on the fundamentals and long-term value of companies.

He has repeatedly emphasized to his team that investing is essentially about "cognitive differences".

Many people panic when the market fluctuates, but he insists on rational analysis and waits patiently.

Taobao, Lianxiang, Tsinghua Unigroup, Tencent... these companies were all long-term investment targets that Duan Yongping's department was responsible for holding.

Duan Yongping conducts in-depth research on companies' business models, market positioning, and technological innovation capabilities. He only decides to invest after truly understanding a company.

For example, the rise of "Jingdong Fang" is precisely because Duan Yongping recognized its profound understanding of user needs and its commitment to quality.

Duan Yongping believes that good companies will gradually demonstrate their value over time.

Over the years, he has demonstrated the power of "value investing" through his actions and has become an idol for many young investors.

Although Duan Yongping is renowned in the industry, he has always maintained a low-key lifestyle.

He rarely appears in front of the media, preferring to share his investment philosophy and management insights through platforms such as Tencent's WeChat Moments.

The content is brief, but every sentence is profound, like a breath of fresh air, inspiring people.

Duan Yongping's remarks are concise yet philosophical: for example, "Investment requires patience," "Businesses should be user-centric," and "Be humble in your personal life, but ambitious in your work."

These words have inspired countless entrepreneurs and investors.

Some say that Duan Yongping is like a wise man, conveying profound wisdom in simple words.

In this age of information overload, his humility and composure are all the more infectious.

Last year, when the internet winter hit, NetEase almost went bankrupt. The company's founder, Ding Lei, tearfully went to the headquarters of "Jingxi Capital" in Liujiazhuang and asked Duan Yongping: "Brother, NetEase is about to fail. Can I sell it and start a new company?"

Duan Yongping laughed after hearing this: "Don't be silly. You already have a company, why not do it well? I'll help you."

NetOne's stock price plummeted shortly after its IPO, coinciding with the bursting of the American dot-com bubble. The stock price dropped rapidly from 15.5 at the time of its IPO to a low of 0.48, and its market value fell from $4.7 million to below $2000 million. Rumors also circulated that NetOne's revenue had halved and that its financial statements were fraudulent, leading to its potential delisting.

Investors, fearing they would lose everything, flocked to Ding Lei demanding their money back. The 30-year-old Ding Lei had never faced such immense pressure before, and he wanted to sell NetOne to get rid of the burden and start anew.

Even Xu Xin, who invested in NetEase in 1999 and later invested in Tencent, Sina, and others, and is known as the "VC Queen," said: "NetEase is the only company that makes me so worried that I can't sleep."

Just when Ding Lei was at his wit's end, Xu Xinxin suggested that he go to Duan Yongping of "Jingxi Capital". At that time, "Jingxi Capital" was a financial behemoth in China.

Duan Yongping was in charge of internet investments at "Jingxi Capital," and his "Xiaobawang" and "Bubusheng" products were wildly popular across the country.

Ding Lei told Duan Yongping that Net1 was no longer a good fit, but Duan Yongping disagreed. He said, "Brother, Net1 just needs a new project. Why don't you make games? I have experience making game consoles. I support you."

Therefore, Duan Yongping, on behalf of "Jingxi Capital", bought $2000 million worth of NetOne stock, providing timely assistance to Ding Lei and stopping the stock price from falling.

With the stock price stabilized, Ding Lei felt at ease and personally led the team, working day and night to focus on game development.

He drew inspiration from Stephen Chow's wildly popular "A Chinese Odyssey" to develop NetEase's first game, "Fantasy Westward Journey," which became an instant hit across the country upon its release.

The fate of NetEase Games was thus rewritten. Within three months of its launch, "Fantasy Westward Journey" had over 500 million registered users, and its monthly revenue soared to 3000 million yuan. Ding Lei sent a message to Duan Yongping late at night: "Old Duan, we did it!" The accompanying picture was of a mountain of instant noodle boxes in the office and the tired but excited smiles of the programmers after working all night.

Duan Yongping's investment acumen has once again been proven. He not only helped NetEase overcome its crisis, but also discovered the enormous potential of its gaming business.

At an internal meeting of "Jingxi Capital", he pointed to the data report and said: "Look, this is the value brought about by cognitive differences."

When everyone thought Net1 was doomed, we saw the possibility of its transformation.

As NetOne's stock price rebounded, Duan Yongping began to invest in more undervalued companies.

He noticed a game studio called "Shanda Games," which, despite having only a dozen or so people, was distributing a rather unique South Korean game called "Legend."

Duan Yongping personally went to investigate and found that although the game company in Shanghai was not large in scale, the team was full of passion and had a unique understanding of games.

He immediately decided to invest $500 million on behalf of "Jingxi Capital" and help them improve their operating system.

Later, after "Legend" was launched, it quickly became popular throughout the country, with the highest number of concurrent online users exceeding 50, setting a new record for domestic online games at that time.

After his successful investment in Shanda, Duan Yongping turned his attention to other areas.

At this time, during the downturn following the bursting of the dot-com bubble, he saw a home appliance chain company called "JD Mall" in Zhongguan Village.

While founder Liu Qiangdong was struggling to raise funds for an online platform, Duan Yongping astutely recognized the company's potential.

"JD Capital" invested $2000 million in "JD", an investment that later became one of Duan Yongping's most successful cases.

(End of this chapter)