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From the preview to the release of the "brilliant article", Luo Yonghao, CEO of Smartisan Technology, has become high-profile again. On August 26, Luo Yonghao published two long articles around the "True Return" and the grievances with investor Zheng Gang, including but not limited to core information such as "a total of 824 million yuan was repaid", "an additional 600 million yuan in debt", and "winning over 20% of investors to force me to repurchase". He announced that "I will simply go all out and stir up trouble", and will fully resume the update and operation of social media accounts. Zheng Gang also spoke out on this matter: "The moon only lets you see one side, and you will never see the other half", and told the Beijing Business Daily reporter to send a video response. This tug-of-war that began in early 2023 shows no signs of ending.

Luo Yonghao Niu Hulu

Luo Yonghao, who changed his name to "Luo Yonghao Niu Hulu", embraced social media again. On August 26, Luo Yonghao updated his Weibo, video account, Douyin, Kuaishou, Xiaohongshu and other accounts with the theme of "True Return" Season 2. "From now on, the Internet (especially Weibo) will be a little more interesting." This comment under Luo Yonghao's first long article ranked among the top three in the number of likes.

"This was my previous small account, 'Luo Yonghao's rumor-busting account'. Now it has been changed to the main account and renamed 'Luo Yonghao·Niu Hulu'. Please pay attention to it." He explained at the beginning of the long article, but not everyone was aware of the retirement incident two years ago.

In June 2022, Luo Yonghao announced in two Weibo posts that he would officially quit Weibo and all social platforms and start his own business again. "If I can still run the company without having to express myself in public, I would be willing to live five years less." Luo Yonghao once told the media, "This is a very honest idea." He also admitted, "When I was doing Smartisan Technology, because of my personal influence, I did a lot of things for the company that other entrepreneurs could hardly do, such as the benefits in marketing and public communication are obvious."

At the same time as "quitting the Internet", the team applied for a Weibo account for Luo Yonghao named "Product Manager Luo Yonghao" so that he could do professional exchanges or recruitment related to products. "This account may be used to refute rumors", Luo Yonghao's words came true, and "Product Manager Luo Yonghao" became "Luo Yonghao's rumor-refuting account".

From quitting the Internet, refuting rumors to returning, Bida analyst Li Jinqing told Beijing Business Daily, "Luo Yonghao is deeply 'bound' to social networks, and he needs traffic to help the company and his personal image. It is normal for him to return, which means he will make a big move soon."

"Next, my team and I will go all out and stir up trouble, using all legal, compliant and business-ethical means to 'hype' the business." Luo Yonghao was very direct. For example, he would fully resume the updating and operation of social media accounts, which will be operated on nine online platforms at the same time this time; partially resume the recording of variety shows; fully resume accepting commercial advertisements and endorsements; partially resume the hosting business of weddings and funerals; fully resume inviting cultural celebrities and film and television stars to the live broadcast room to communicate and bring goods; and fully resume the creation of the commercial comedy blockbuster and serious documentary "True Return" of the same name...

824 million and 600 million

It is worth mentioning that Luo seems to have received advertisements for his "return". At the beginning of the first long article, he specially introduced his "Empresses in the Palace" illustrations, "generated by the AI ​​drawing software 'Jimeng AI' of the Jianying team, and I recommend everyone to try it". Beijing Business Daily reporter asked the relevant person of Jiaogepengyou for confirmation, and the person did not deny it, and responded: "Mr. Luo will accept various advertisements reasonably and legally in the future to speed up the repayment of the remaining 500 million yuan."

This more than 500 million yuan is a debt repayment plan that Lao Luo has not disclosed before. It is an additional debt of 600 million yuan in addition to the "True Repayment".

"When Smartisan Technology raised funds, it received 300 million yuan in state-owned capital investment and 300 million yuan in loans, totaling 600 million yuan. When the first season of 'True Return' was launched, we did not include this part, mainly because the contract for the 300 million yuan loan expires at the end of 2022." Luo Yonghao said. Considering the needs of the company's brand and personal brand for long-term development in the future, "we decided to repay 100% of the 600 million yuan principal in cash. This part of the debt has been repaid for more than a year and will be fully repaid in the next few years."

As for "True Repayment", a total of 824 million yuan has been repaid so far, including additional compensation caused by various lawsuits and disputes during the debt repayment process, as well as various fines caused by arrears.

A total of 824 million yuan was repaid, including: "In April 2020, I started a live streaming e-commerce company, and repaid 548 million yuan in cash after tax; 180 million yuan obtained from the transfer of the mobile phone team and intellectual property rights to ByteDance in 2018 (previously announced on social media); in 2018, after the funding chain of Smartisan Technology was cut off and the production line was shut down, I signed a personal unlimited guarantee to enable the factory to resume work, and made the remaining materials into complete machines to repay the debt of 66 million yuan; from 2018 to the end of 2019, Smartisan Technology's debt settlement team sold the remaining assets of Smartisan Technology in various ways to repay debts of nearly 30 million yuan." Luo concluded.

What is the truth

In a very eloquent article, Luo Yonghao used more than 3,900 words to disclose the latest progress of "True Return". The second article, which involves the feud with investors, is even longer, with a total of more than 4,600 words.

"The venture capital agreement at that time had clear clauses written in black and white that if the investing shareholders of Smartisan Technology wanted to force me to repurchase the shares of Smartisan Technology, more than 50% of the investing shareholders must sign and agree to trigger the repurchase. But Zheng Gang only brought in more than 20% of the investors to force me to repurchase." This is what Luo Yonghao said about the repurchase.

He admitted that when Smartisan Technology had problems with its cash flow, he borrowed 15 million yuan from Zheng Gang's investment institution, but failed to repay the loan when it matured, "because before the loan from one company to another matured, Zheng Gang filed a lawsuit to force me to repurchase the loan."

The content about sharing the benefits of re-entrepreneurship with old shareholders accounts for more than one-third of the entire article.

"When we launched the live streaming e-commerce company in 2020, my partners and I made a 5% original stock plan for the old shareholders of Smartisan Technology. Due to policy compliance and procedures, as well as some binding agreement issues, this part of the equity will not be fully implemented to these old shareholders, old partners and old colleagues until around January 31, 2025." "When we launched Fine Red Line Technology Company in 2022, 5% of the original shares were reserved for the old shareholders of Smartisan Technology on the first day," said Luo Yonghao.

He relayed Zheng Gang's attitude, "Zheng Gang felt that the 5% original shares I left for the old shareholders of Smartisan Technology were too few," "I should not require the old shareholders of Smartisan Technology to receive the fine red line shares while making a written statement to give up the right to repurchase Smartisan Technology shares," and "The live streaming e-commerce company did not distribute shares to the old shareholders of Smartisan Technology."

Based on the above doubts, Lao Luo believes that when entrepreneurs start a new business, it is "not the obligation and duty, nor is it a common practice" to compensate investors who lost money in the previous project. As for requiring old shareholders to receive the fine red line shares while giving up the right to repurchase, it is "in accordance with the risk control requirements of professional investment institutions."

Zheng Gang disagreed with Luo Yonghao's long article. He told the Beijing Business Daily reporter that he would "have solid reasons, state the facts and reason, and send a video response with pictures and texts."

Based on the interactions between the two, Wang Chao, founder of Wenyuan Think Tank, told the Beijing Business Daily reporter, "As far as giving shares in new entrepreneurial projects is concerned, Luo Yonghao's approach is rare, but he has brought himself bad reputation by making a big fuss with investors. The moment an investor invests money, he is already Party B. The key to investment is, on the one hand, to recognize the potential of the project itself, and on the other hand, to understand the character and personality of the trader. Investors have to bet on at least one of them."

Beijing Business Daily reporter Wei Wei