The mutual accomplishments of those years and the disintegration of Xun Lei and Chen Lei, the “Xun Lei Palace Fight” ended. Chen Lei’s fate with Xunlei should be completely over.On October 8, Xunlei issued an announcement stating that it filed a complaint with the Shenzhen Public Security Bureau in April 2020 regarding the former CEO of Xunlei, Chen Lei, and others for alleged occupational occupation. The Municipal Public Security Bureau has filed a case for investigation by Chen Lei and others suspected of embezzlement.
Author: Sharon Saw
In addition to the announcement, Xunlei also followed a sentence, calling on Chen Lei to return to China as soon as possible to cooperate with the investigation. Related media have also verified this. Chen Lei is currently in the United States, but not long ago, he specially sent a circle of friends to invite domestic media to conduct interviews. Perhaps he realized that the current situation is very unfavorable for him.
According to Xunlei’s disclosure, Chen Lei was suspected of embezzling company assets by falsifying transactions and making false contracts to obtain company funds. The amount involved was huge. Chen Lei is also suspected of embezzling tens of millions of funds from the company for illegal currency speculation that is expressly prohibited by the state. In order to avoid investigation, Chen Lei has left the country since early April.
This announcement by Xunlei ended the “Xunlei Palace Fight” in April this year. At the beginning of April this year, Xunlei’s internal senior management changed. At that time, Xunlei’s CEO Chen Lei and its core forces were cleared out by Xunlei, and Xunlei’s old employee Li Jinbo took over the business of Xunlei.
After being dismissed, Chen Lei accepted interviews from several media. From the interview, Chen Lei reviewed his “bad relationship” with Xunlei from a personal perspective.
Origin: Lei Jun led the red line between Chen Lei and Xunlei
The fate of Chen Lei and Xunlei is inseparable from Lei Jun, the founder of Xiaomi.
Before entering Xunlei, Chen Lei had already become popular in Tencent. Now, among the entries included in Baidu Encyclopedia, there is also Chen Lei’s brilliant “record” in Tencent. He is responsible for cloud computing and Tencent advertising system Guangdiantong. And Tencent’s open platform and other businesses have made real results in a short time.
Or maybe it was this tangible record that made Lei Jun agitated. Chen Lei once recalled the meeting with Lei Jun in an interview, “He invited me to join Xunlei and we talked about two o’clock in the morning.”
Although in Chen Lei’s memory, Xunlei founder Zou Shenglong sincerely invited him to join Xunlei before Lei Jun, Chen Lei was not optimistic about Xunlei’s cloud computing business. But after this long talk with Lei Jun, Chen Lei, who admires Lei Jun, officially joined Xunlei in November 2014 as Xunlei’s CTO. He is also the first CTO officially appointed by Xunlei in more than ten years.
In 2014, for Chen Lei, it was a further year for his career. In addition to his professional manager status, he also served as the CEO of Netheart Technology under Xunlei, turning him into an entrepreneur.
2014 was also the year Xunlei sought to transform. The previous Xunlei, the scenery is boundless, you can almost always see the Xunlei logo in the upper right corner of the computer. But with the rapid development of the mobile Internet, Thunder staying on the PC side for too long, forgot to fly forward on the wind of the mobile Internet. Thunder’s fall behind, also began at this time.
It was also in 2014 that Lei Jun stepped up to pull Thunder. According to Tianyan Check, in Xunlei’s E round of financing in April 2014, companies such as Xiaomi Group and Kingsoft Software, which have deep connections with Lei Jun, invested a sum of money in Xunlei and directly sent Xunlei to NASDAQ to ring the bell. .
It is not difficult to understand why Lei Jun would stand up and sincerely invite Chen Lei to join Xunlei. Although Xunlei was infinitely beautiful when the Nasdaq ringed the bell, it was obvious that Xunlei was not as strong as that year. In the second year of listing, Xunlei suffered a stock price slump, and even had to sell 130 million yuan in 2015. The price, the long-term loss-making core business Xunlei look at.
The mutual achievement of Chen Lei and Xunlei
In fact, Chen Lei is also very aware of Thunder’s lagging behind. However, the addition of Chen Lei is also regarded as a landmark event in Xunlei’s exploration and transformation.
The first thing Chen Lei did after entering Xunlei was to set up a new team and company-Wangxin Technology, and as the CEO of Wangxin Technology, he began to explore a new model of cloud computing business named “Crystal Project” within Xunlei, that is, to promote C-side intelligent hardware and B-side CDN business.
Chen Lei’s record has always been intuitive and rapid. In the second year, Wangxin Technology successively launched Qianjinbao and Star Controls CDN products. Not long after the launch of Star Controls CDN, Xiaomi, iQiyi, Kuaishou, Panda Live, Station B, Mo Companies such as Mo, Tentacle, and Zhanqi Live have successively become customers of Star Controls CDN. In addition, the business of Qianjinbao and Star Controls CDN has risen sharply for 7 consecutive quarters.
In less than a year, Chen Lei has achieved fruitful results. For this reason, in November 2015, Chen Lei was promoted to the co-CEO of Xunlei. In addition to these two products, Chen Lei also played the banner of All in Blockchain. Xunlei’s stock price was also driven by the concept of Blockchain. There was a climax between October 2017 and April 2018, and the stock price reached $27 at the peak.
In addition to businesses such as Star Controls CDN and All in Blockchain, Chen Lei quickly created a world in Xunlei, but also planted a thunder for Chen Lei himself.
The operating mode of Star Controls CDN is mainly to use technology to share the bandwidth resources obtained through the crowdfunding mode, collect idle broadband resources through Money Money, and then use Star Controls CDN to allocate these resources to video, game and other industries with huge bandwidth requirements.
At that time, the relationship between Thunder and Chen Lei was generally the same as the complementary relationship between Qianjinbao and Star Controls CDN. The price of Star Controls CDN is less than 40% of the industry, which once triggered a wave of CDN price cuts.
Contradictions broke out
The Star Controls CDN model was terminated in 2017. In February of that year, the Ministry of Industry and Information Technology stipulated that broadband can only be purchased from licensed companies, and introduced a cleanup of irregular market transactions. Shenzhen Xing Fusion Technology Co., Ltd. began to appear in Xunlei’s business associations. Chen Lei said in an interview that Xing Fusion is a shell company used to avoid risks. It buys hardware from Wangxin Technology and sells it to miners. This way isolates the risk of the network heart.
In addition, Chen Lei also said, “Because the transaction link of Xing Fusion has been added to sales, there are related transactions between Xing Fusion and Wangxin Technology. In order to ensure that the audit of Wangxin can be qualified, companies with business associations cannot use the Internet. Since the employees of the heart become shareholders and legal persons, we can only ask the family members of our colleagues to do it.”
And this has also become one of the evidences that Xunlei accused Chen Lei of opening a company outside of the company, and has benefited from Net Heart Technology.
It is worth noting that Xing Fusion is 100% controlled by Hainan Lianxiangyun, a wholly-owned subsidiary of Beijing Lianxiangyun. However, Beijing Lianxiangyun once issued an announcement stating that Beijing Lianxiangyun agreed to sign an agreement with Xunlei, develop the conference, and establish a Xunlei related company-Hainan Lianxiangyun Network Technology Co., Ltd. (hereinafter referred to as Hainan Lianxiangyun). Cooperate with Xunlei to avoid regulatory issues. Since the establishment of the Hainan Lianxiangyun company, all the official seals, systems, codes, and personnel of the Hainan Lianxiangyun, including the official website of Lianxiangyun, have been controlled and managed by Xunlei. Although the official website of Lianxiangyun identifies Beijing Lianxiang Clouds, but they are all controlled by Thunder.
In addition, the announcement of strategic cooperation between Xunlei and Newland in 2018 can also prove that Lianxiangyun is controlled by Xunlei. Chen Lei, who was still the CEO at the time, explained this strategic cooperation to the outside world, that is, Lianxiangyun will be led by Wang Jing, president of Newland Technology Group, and Xunlei Group will grant some blockchain business to Lianxiangyun, including Lianke, Lianke Mall, Lianke Pocket, etc., while Xunlei still retains the underlying services such as Xunlei Chain, as well as the shared computing business of Wanke Cloud and Wanke Cloud Network.
Today, a person familiar with Xunlei said that the suspected occupational occupation mentioned in Xunlei’s announcement was found when Xunlei’s new management audited the company: A Xunlei bandwidth provider named Xing Fusion was actually a company controlled by Chen Lei. Through various illegal means, a huge amount of funds has been transferred to Xing Fusion, and deception has been used to attempt to transfer the core technical personnel of Xunlei Company to Xing Fusion.
However, Chen Lei once said in an interview that the businesses of Xing Fusion and other affiliated companies are publicly known within Netheart Technology, and many people know about it. “We have never secretly done business within Netheart Technology. How could it be possible? Benefit transfer.” Chen Lei directly stated that the occupation of his position was an unnecessarily charged accusation.
Yuan Mie: Regret to be CEO, Regret to join Thunder
Also in 2017, Chen Lei was promoted to the position of CEO of Xunlei. Chen Lei said in a later interview that he became CEO because of differences in opinions among Xunlei’s senior management and could not be reconciled. As a professional manager, he was promoted to the position of CEO.
But later, Chen Lei said in an interview that he regretted sitting on the CEO position and had an enmity with the old team of Xunlei, and regretted jumping from Tencent Cloud to Xunlei. In Chen Lei’s view, the main purpose of fighting against the old team is to put the risk of Xunlei on the table again. “In Xunlei’s download business, the proportion of pirated pornography is very, very high, especially for mobile phone Xunlei.” In November 2019, Chen Lei sent the legal team to the WeChat group of the board of directors to study the PPT of Thunder downloading business risks, and communicate the risks through emails. Chen Lei believes that we should stop the download business in an orderly manner. But the old team did not directly reply to Chen Lei’s proposal.
After becoming CEO, Chen Lei had a conflict with Xunlei’s then senior vice president Yu Fei due to the P2P business of Xunlei Big Data. It is reported that Xunlei Big Data also changed its name to Shenzhen Mojingou Information Service Co., Ltd. in December 2017. The company Xunlei holds 28.77% of the shares and is the second largest shareholder.
Chen Lei later summarized this contradiction into two points. One was that he was very stupid to offend Yu Fei at the time, and the other was that he was too simple and took too much risk of the company as a professional manager.
On April 2 this year, an internal letter “To all members of Xunlei” appeared in the mailbox of all employees. News of the dismissal of Xunlei CEO Chen Lei at the board meeting suddenly spread. For Chen Lei, this news It came very suddenly.
Chen Lei said that he took a leave of absence because he was unwell that day, and that he actually received the removal resolution only after Chen Lei saw the news, and the board of directors sent him the resolution for him to sign.
The whole body was moved. Thunder and all its affiliates quickly kicked out Chen Lei. The power of Chen Lei was cleaned up in Xunlei and Wangxin Technology. The direct VP of Chen Lei’s direct line, technical, project and business VP were all Cleaned up.
The board of directors of Xunlei appointed Li Jinbo, Zhang Yubo, Duan Hui, Shi Peng and Luo Weimin as members of the board of directors, and Wang Chuan, Hong Feng, Zou Tao and Liu Qin resigned as directors. It is understood that Wang Chuan and Hong Feng are the co-founders of Xiaomi, Zou Tao is the CEO of Kingsoft, and Liu Qin is the partner of Morningside Capital. They are relatively close forces of Lei Jun.
The power of the Li Jinbo system entered the Xunlei management. Among them, Li Jinbo was a technical partner and CTO of Xunlei, the founder of Xunlei’s engineering technology system, and presided over the research and development of Xunlei’s early product star products Xunlei 4 and Xunlei 5.
The “Xunlei Palace Fight” drama ended quickly as soon as it was unveiled, and the six-year friendship between Chen Lei and Xunlei also broke down in this “Palace Change”.
As of press time, Chen Leifang has not responded to the relevant allegations. Affected by the news, Xunlei’s share price plunged by more than 7% to $3.16, which was nearly 88% less than when Chen Lei pushed Xunlei’s share price to a peak of $27.