Hua Xing Bao fan: take an unusual way to start a business


Hua Xing Bao fan: take an unusual way to start a business

Author: Lv Qian

In 2016, Bao Fan and Huaxing won the approval of the establishment of Huajing Securities under Huaxing Capital by the Securities Regulatory Commission, which means that after 12 years of starting up, Huaxing has transformed from a field army to a regular army; from a platform only engaged in FA docking business to a platform that includes early venture capital, financial advisers, funds, mergers and acquisitions, and securities business. The whole process is closed loop.

After the National Day holiday, Huaxing Capital Holdings share price showed a steady rise in the peak curve, but the share price is still in the breaking range.

In September 27th, Huaxing capital went through the listing process at HKEx. The next day, Huaxing capital holdings disclosed its interim results. The results showed that the company's overall operating income in the first half of the year was 108 million US dollars, an increase of 99.98% over the same period of last year, but its loss rose to 15.19 million US dollars from 8.25 million US dollars in the same period of last year. Its expenditure was mainly affected by changes in the fair value of convertible and redeemable preferred shares.

In addition to the changes in the fair value of convertible redeemable preferred shares, Huajing's emergence and growth has also become a huge cost of capital for Huaxing. Behind it is Bao Fan, founder of Huaxing Capital, chairman and CEO, who decided to gamble freely.

Unless on special occasions, Bao Fan "give face" to the suit and leather shoes, he usually dressed in a blouse, hollow jeans, smoking a very thick cigar, strong momentum, his colleagues jokingly said, "Don't look at Bao Fan 1.6 meters, feel he has 1.9 meters."

In response to questions about the stock price attitude, Bao Fan also showed a significant relaxation, "the value of the company's investment depends mainly on the fundamentals, we have confidence in future performance growth. Therefore, we do not pay much attention to short-term stock price fluctuations.

Racing and investment are the same.

Bao Fan, who has more than 1.6 million fans on Sina Weibo, boasts of pseudo-economists, F1 madmen, MMA and financial workers.

In Baufan's own words, he likes adventure and everything that makes adrenaline work, like racing cars, like MMA, like reopening new businesses in the battlefield.

In 2008, when the car returned to the garage in the last lap, the brakes suddenly failed, such a fatal accident, Bao Fan only concluded that "really should be replaced by ceramic brake pads, there will be no overheating accident" so understated conclusion.

"Why do I like extreme sports? Some say it's cool. Some people say fantasy is the champion. Not really. The real relaxation for me is the relaxation of the brain and completely no desire. Neither running nor swimming equipment can be done. When you're racing, you have to concentrate 100 percent. The result of distraction is that you're hit, crashed, or even killed. There's no choice. Only in this state can I get real relaxation and relief.

In Bao Fan's view, racing is the same thing as investment, he said, the best racing drivers always control the edge of speed, in order to drive well on the track, the most important thing is to grasp its rhythm, when fast, when slow, with the development of enterprises is a reason, in the process of development, what is the most important thing? When to attack and when to defend. "So we must take risks, but try to take a risk that can be manipulated."

In fact, Bao Fan liked boxing because his grandfather, who was an executive of Zhejiang Bank before the founding of New China, often told Bao Fan about the legends of the old Shanghai financial world, and because Bao Fan was bullied to learn boxing when he was a kid because of his parents'absence of company, Bao Fan's education virtually laid the foundation for his adult life. Character genes. The ups and downs of his grandfather's statement made Bao Fan understand the rules of old Shanghai: "Don't be short-term greedy, just make money".

Boy Bao who did the "business" at that time is mainly to sell tobacco, he will be proud to introduce "I sell cigarettes have a home." Later, Bao Fan used these "profitability" to take his companions South and north, eating, drinking and having fun, and became the king of the children in the circle. In the fifth grade, Bao Fan wrote 52 reviews.

Bao Fan's parents, who have been on business as diplomats for many years, have written to their parents every month since he was six, and even assembled into a book called "Bao Fan's Book," in which he once wrote, "Didn't you say you're going home at the end of December? I tell you, if you do not come back, I will not be your son. "

This is naturally a gamble, Bao Fan and his father's feelings, reflected in the side of the public address, Bao Fan said -- "Today is also my father's birthday. In the past decade or so, there were few days to celebrate my father's birthday. Today is a late present.

But after a series of steps, such as the Hong Kong Stock Exchange address, Ming Gong, Bao Fan rushed to his daughter, who joked that he would take her with him in the future because of the lack of family reunion as a teenager.

Part time CFO

In 1993, when he was interviewing McKinsey, a graduate from the Norwegian School of Economics and Management, he was asked to estimate the amount of gasoline consumed in the United States in a year.

"Idon 'tcare", "who has anything to do with me?" So Bowen chose Morgan Stanley, and in his view, investment banking was a very competitive industry that could keep him excited.

Four years later, Bao was swept away by Credit Suisse. But at the same time, Bao Fan also knows that he is a restless person, "I know I will not work in big investment banks for a lifetime."

In 2000, Bao Fan accepted the embroidery of Ding Jian, chairman of AsiaInfo, left the big investment bank and became AsiaInfo's chief strategic officer. He participated in the acquisition of Guangzhou Bangxun Technology, Pacific Software and Lenovo Group's IT services business, and gradually penetrated into the network of Chinese entrepreneurs that had just formed at that time.

"Bloomberg Market" has commented that "guanxi" is Bao Fan's magic weapon of success, Bao Fan rely on the excellent "guanxi", Huaxing Capital Holdings listing site, Sequoia Capital China founding partner Shen Nanpeng, become the founder of capital Li Shimo, chairman of ICBC International Jungle, Snow Lake Capital founder and CEO Ma From Ming and so on gathered around him.

Zhao Keren, co-founder and partner of DCM, once said that intelligence, intelligence and diligence are common features of most investment bankers, but what makes Bao Fan different is his lively personality, which is why he has a huge network of relationships, because he is really likeable.

Bao Fan's four years in Asens coincided with the rapid development of China's Internet economy and the ascent of Internet enterprises on the historical stage. Sina, Sohu and Netease landed on Nasdaq.

At that time, it was the decline of the PC Internet business after the highlight - Sina CEO Wang Zhidong "resigned", Netease because of the "false account turmoil" was suspended by Nasdaq trading, Sohu because of long-term prices below a dollar was almost delisted by Nasdaq. And the next generation of mobile Internet giants are still accumulating experience value - Youku Gu Yongqiang still served as COO in Sohu, Tudou Wang Wei or Bertelsmann president, 360 Zhou Hongzhen just sold 3721 to Yahoo, the United States Tuan Wang Xing founded the campus intranet only a year.

But Bao Fan is keenly aware of the change of the times -- "I once said that this wave of Internet quotations ended with the FB (Facebook) listing, and it looks like China's market will end much earlier, with an estimated peak of people's online listing. The friends who have earned enough can consider the clearance. "

In 2004, Bao Fan rented a 20 square meter room at 21 International Club Hotel, Jianguo Menwai Street, Beijing. The company's English name is China Renaissance, and its Chinese name is Huaxing. Ding Jian, who had carried the "cold winter" together, introduced the first single customer -- Xing Xing Wei.

The well-known story is that Bao Fan, a startup owner, worked part-time for a year as a CFO at Zhongxinwei to win the first customer.

Entrepreneurial path

On October 13, 2005, Sinopec financed $33.93 million, and Huaxing Capital, as a FA start-up, gradually embarked on its own track according to Bao Fan's observation.

"If you want to invest in China, it's best to focus on emerging companies, because other industries are dying out, and only technology companies are still growing," Bao said when he started Huaxing Capital.

Before Renren went public online in 2011, Bao Fan said: "I once said that this wave of Internet market ended with the listing of FB (Facebook). It looks like China's market will end earlier, and it is estimated that Renren's online market will peak. The friends who have earned enough can consider the clearance. " In that year, Huaxing Capital helped nearly 40 companies complete more than $2.5 billion in financing and mergers and acquisitions, accounting for the largest share of the domestic market.

In 2018, Bao Fan said that the mobile Internet "big fish" from the freshwater area ready to go to sea, to be listed. There's still a lot more to be done by big and small companies to integrate services with the mobile Internet, but from an investment perspective, it's almost done. And the mode driven venture capital will eventually become a capital game.

Of course, this is not a quiet path. When it was founded, Huaxing was confined to the "investment Bank + investment" advisory model, focusing on technology, media and communications (TMT), health care and consumer goods. During the 2008 financial crisis, Huaxing made only one or two single deals in 2009 due to delays. Wang Lixing also said that the period from 2008 to 2010, Huaxing is the first barrier, but also a very important negative event. The situation was so difficult that several partners had to spend a lot of energy trying to get the money back from the Ocean Square lease. During the crisis, Bao Fan decided to transform Huaxing from an old "investment Bank + investment" model into a full-service investment bank, and to lay out its securities business.

In 2011, Huaxing Capital officially registered listed company entities, a round of financing, transfer 15 million A-type preferred shares; in 2012, Bao Fan pulled the team to Hangzhou Fuchun Mountain residence held a meeting to explore whether to rush or not, the transformation of the problem, and ultimately, the company decided to form a merger and acquisition team, won the bonds of Hong Kong and the United States of China. Business license. Bao Fan said it was the beginning of Huaxing 2.

In the next two years, Huaxing acquired brokerage licences in Hong Kong, China and the United States, and completed the first single Lanting IPO underwriting. After that, Huaxing, which became a regular army, completed nearly 50 private financing and M&A projects, 7 IPO projects and 2 convertible bond projects in 2014.

In 2014, on Huaxing's 10th anniversary, Bao Fan wrote, "Ten years ago, I was an interesting person, and now I'm a workaholic with some obsessive-compulsive disorder. Ten years ago, my parents were still walking fast. Now they are old people who are dying. In the past ten years, I have made many friends and lost many friends. Ten years are not long, ten years are long. Suddenly looking back, it was just a word "tired". In 2014, Huaxing completed seven overseas IPO projects and more than 40 private equity financing and M&A projects.

In 2015, the change of domestic environment made the "one-stop service" in the package plan again.


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