What is the intention of Li Lin and Du Jun in registering the new company "Chi Yu Mu Shou"?

Cailianshe|Blockchain Daily (Beijing, reporter Dong Yujia) reported that more than a month has passed since Huobi founder Li Lin confessed in the HT large user group that "I did give in". Recently, Li Lin and Huobi co-founder Du Jun have made a new move - registering and establishing Beijing Chiyu Mushou Enterprise Management Development Co., Ltd. (hereinafter referred to as Chiyu Mushou Company).

According to the industrial and commercial information displayed by Tianyancha, Chiyu Mushou Company, in which Li Lin holds a 58% stake, was established on November 15, 2021 with a registered capital of 1 million yuan. The registration authority is the Beijing Haidian District Market Supervision Administration.

In addition, Du Jun holds 15% of the shares and Huobi director Hu Donghai holds 10% of the shares.

Equity penetration chart of Beijing Zhiyu Mushou Enterprise Management Development Co., Ltd.

What is the profound meaning of “holding fish and shepherding”?

"Holding fish and guarding" comes from "Guarding the Frontier for Three Years, Going to Beijing to Stay as the Governor of Jia Xianggong" by Song Qi of the Northern Song Dynasty. The original line is "The more harmonious I am, the more I retreat. I only worry about fame and fortune. The rain washes the starry streets and the night is filled with mist. I temporarily hold fish and guard the palace."

After the news of the company's establishment came out, netizens had different speculations. Some people jokingly called this move "fishing and herding to keep the pie"; some netizens believed that it was for harvesting, and reminded that "(Huobi) is going to fish in the future, HT's family should be careful."

A reporter from Blockchain Daily asked Huobi about issues related to the establishment of a new company, but received no comment.

It is worth noting that the company's business scope is "enterprise management; enterprise management consulting; economic and trade consulting; legal consulting (excluding lawyers' professional activities); educational consulting (excluding intermediary services); information system integration services; software development; engineering and technical research and experimental development; technical services, technology development, technology consulting, technology exchanges, technology transfer, and technology promotion."

This overlaps with the business scope of Beijing Huobi Tianxia Network Technology Co., Ltd. (hereinafter referred to as Huobi Tianxia), which is "technology development, technology transfer, technology consulting, technology services; design, production, agency, and publication of advertisements; sales of computers, software and auxiliary equipment; Internet information services; and engaging in Internet cultural activities."

But what exactly is in this gourd remains unknown.

Looking back at Huobi in 2021

According to the business information displayed by Tianyancha, on July 22 this year, Huobi Tianxia applied to the registration authority, Beijing Haidian District Market Supervision Administration, for cancellation of registration due to its resolution to dissolve. The announcement period is from July 22, 2021 to September 5, 2021.

At that time, Huobi responded that Beijing Huobi Tianxia Network Technology Co., Ltd. was the entity registered by Huobi.com in Beijing in the early years. This institution is not the operating entity of Huobi Global. The entity (Huobi Tianxia) did not conduct any business and had no need to continue to exist, so it applied for cancellation.

However, Huobi Tianxia's current operating status still shows that it is still in existence.

On the other hand, the announcement shows that Li Wei, Dong Fang, Wei Xianbo, Du Jun, Li Lin, Hu Donghai, Yuan Dawei, Song Ying, and Beijing Juxinyuanye Investment Consulting Co., Ltd. are all members of the liquidation group. Li Lin, Du Jun, Hu Donghai, Wei Xianbo, Yuan Dawei and Song Ying are all shareholders of Beijing Chiyu Mushou Enterprise Management Development Co., Ltd.

On the day when the central bank and ten other ministries jointly issued a document clarifying that overseas virtual currency exchanges providing services to Chinese residents through the Internet are also illegal financial activities, Huobi stopped registering new users in mainland China and plans to gradually clear out existing users by the end of the year.

However, after announcing the withdrawal of mainland Chinese users, Huobi released "Including Singapore in Restricted Jurisdictions" on the 9th of this month, stating that in order to comply with Singaporean laws, Huobi Global will list Singapore as a restricted area and stop providing services to Singaporean users. It plans to close the accounts of all Singaporean users on March 31, 2022.

Huobi cannot conduct business in China due to regulatory restrictions, and now it seems that Huobi's overseas business is not all smooth sailing. After Li Lin's confession and Zhu Jiawei's official resignation last month, Du Jun said that in the future, Huobi will focus on compliant markets to expand overseas business.

Although Huobi's resources are currently tilted towards overseas market expansion, many industry insiders analyzed to the reporter of Blockchain Daily that Huobi's marketing team has always lacked overseas genes. Huobi has a 50% chance of either never recovering from this setback or fully developing overseas to truly build the Huobi Global brand.

One of them pointed out that Li Lin's mentality has changed a lot after the "Luliang incident" last year, from focusing on the development of Huobi to focusing on his own political security. At the same time, Li Lin pays more attention to his own and his family's reputation, especially in his hometown circle. However, this statement has not been commented on by Li Lin himself.

So, is this new company, which has nothing to do with blockchain and virtual currency in terms of business scope, Li Linxin’s new entrepreneurial project? What the company’s real business will be is still a matter of speculation.