The long-sleeved "capital gambler" Lu Zhengyao finally got away with it!

After ten years of development of the mobile Internet, the venture capital circle has already formed an established secret of success.

Seizing the limelight, crazy financing, scale expansion, brainwashing users, completing the listing, reducing holdings at high points and cashing out, and then digging for another story, it is undeniable that Lu Zhengyao does have a way with capital.

However, such a universal formula for capital operation, "Continental Capital Technique", resulted in the loss of three cars because of a cup of coffee: China Car Rental, China UCAR, and Borgward Automobile; 17 years of dreams shattered, the "China System" empire

collapse!

From Luckin Coffee being suspended and delisted after being exposed for financial fraud, to China UCAR being forced to delist, and now China Car Rental selling its own private equity fund Anbokai, Lu Zhengyao may not have expected that in just over a year, he would develop a business with his own hands.

The "Shenzhou" empire fell apart in this way.

Not long ago, it was revealed that Lu Zhengyao had been robbed of 1.2 billion and was forced to execute. This was the third execution in half a year.

In fact, Lu Zhengyao has been listed as the person subject to execution three times this year.

Lu Zhengyao owed a total of 3.5 billion yuan three times. From being a Forbes billionaire to being burdened with huge debts, Lu Zhengyao's big capital adventure undoubtedly failed, and he became a well-deserved "negative man."

So, how did the once glorious "Chinese" empire gradually lose control?

1. Looking back at Lu Zhengyao's big capital bets over the past ten years, I have to marvel that many of the seemingly iron-clad truths are actually hidden behind the intricate games within the games.

From Luckin’s financial fraud, to the sudden drop in China Car Rental’s performance, to China UCAR’s willingness to delist Borgward’s finances, Lu Zhengyao’s radical expansion methods have affected the entire “China system.”

But now, the "automotive ecological map" that the "Shenzhou system" worked hard to build has collapsed.

At 9 a.m. on July 8, it was a historic moment for China Car Rental - the completion of privatization and delisting.

On January 25 this year, China Car Rental announced that private equity giant Amber Kai planned to privatize it for HK$1.771 billion. This means that China Car Rental, which once made Lu Zhengyao famous, announced the completion of the compulsory acquisition and officially bid farewell to the capital market.

An old friend who has known Lu Zhengyao for more than 20 years once said of him that Lu Zhengyao is a business giant with a very keen sense of smell and clear cognition.

Think about it too.

From car rental, online ride-hailing to takeaway coffee, entrepreneurial veteran Lu Zhengyao has stepped on the trend every step of the way, and every trend has made him huge profits.

When Lu Zhengyao was at his most prosperous, there were three listed or listed companies under his "China Group", including China UCAR, China Car Rental, and Luckin Coffee, which was listed 18 months after its establishment.

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However, there is a fine line between clever maneuvering and self-defeating, and there is a difference between once-in-a-lifetime success and steady possession.

Lu Zhengyao, who had always relied on the power of capital to go smoothly, finally tasted the bitterness of being backlashed by capital.

In the face of the capital market, Lu Zhengyao, who claimed to have no shortage of money, relied too much on "storytelling" and spent money frantically to expand his business. He used this strategy to tell stories and refinance, ignoring the profit-making nature of business, and thus fell into a capital vortex, making it difficult to turn around.

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2. Lu Zhengyao’s life is a legend. He created the miracle of speed of China Car Rental and Luckin Coffee, but he himself fell from the peak in just an instant.

Lu Zhengyao's failure was as radical as his success.

In the past year of 2020, in just one year, his life has experienced changes from the peak to the bottom - at the beginning of the year, Luckin's market value rose to 12 billion U.S. dollars, and Lu Zhengyao's family's wealth reached 26.13 billion yuan at its peak, which was higher than New Oriental's

Yu Minhong has more.

But soon, something happened to Ruixing, and his capital games collapsed one after another.