In that evening’s conference call, Jing Hong responded to the current crisis on behalf of Fanhai Group to major brokerage firms.

First, Jing Hong took a firm stance, much like his father, Jing Haiping. He stated that Fanhai and Qinghui were engaged in benign competition and that blocking external links was solely done to protect users. Since Fanhai Group could not guarantee the content of those external videos, restricting links was a risk-averse strategy. He noted that Qinghui’s products had always managed to bypass these blocks anyway—leaving Fanhai with limited recourse—and that Fanhai had substituted these links with internal alternatives. Jing Hong added that Fanhai’s actual exposure to the impact was minimal. Fanhai was not an e-commerce platform; its primary profits stemmed from games and entertainment. The titles in these sectors were concise and easy to remember, making the business far less reliant on external links.

Second, regarding gaming, Jing Hong aligned with official statements by firmly denying rumors that Chinese authorities had halted the issuance of game publication approval numbers (banhao). He clarified that the temporary pause was merely due to institutional restructuring affecting administrative approvals. To substantiate his point, Jing Hong cited historical data: in 2012 and 2013, roughly 500 games were approved each year; in 2014 and 2015, the annual figure rose to over 700; by 2016, it reached over 4,000, and peaked at over 9,000 in 2017. Based on this trajectory, Fanhai remained optimistic that regulatory bodies continued to support local game developers while waiting patiently for approvals to resume. Furthermore, Fanhai’s current operations remained unaffected by the pause—core games were operating normally, and upcoming titles scheduled for release had already secured licenses the previous year. He dismissed the notion of “the higher you stand, the harder you fall,” emphasizing that domestic plans for the next two years would proceed without disruption.

Jing Hong also highlighted the expansion of Fanhai’s gaming division into international markets. The fully acquired studio “Saint Games” had swept global markets with its title Expedition, exceeding 100 million daily active users (DAU) and breaking $6 billion in revenue over the past six months. Historical data suggested such performance would turn the game into a long-lasting staple, proving the acquisition a major success. Other international acquisitions were performing similarly well. Fanhai had also established several overseas subsidiaries to handle regional publishing for self-developed and invested titles, with Saint Games’ chief designer serving as an advisor. Overall, Fanhai was expanding its global gaming footprint with absolute confidence in its prospects.

Third, Jing Hong asserted that proper financial regulation fosters a healthy market. Fanhai prioritized financial risk management, valuing stability over sheer scale. Its core financial operations had consistently complied with laws and regulations without operating in grey areas, meaning tighter financial controls would have little to no adverse impact on the company.

Fourth, Jing Hong addressed long-form video metrics. While advertising revenue had indeed been diluted across the industry, Fanhai Entertainment had turned the tide under its new head, Zhang Li. Through her strong creative direction, the platform launched several hit web series and blockbuster variety shows, successfully reclaiming significant market share from rival platforms such as “Weilai” and “Xingyuan.”

Fifth, Jing Hong dismissed claims that Fanhai was falling behind in emerging technology, calling the accusation baseless. In artificial intelligence, Fanhai Group held over 10,000 global patents, outstripping global tech giants like Google in specific verticals. With key appointments like Hong Xu last year, Fanhai’s technical capabilities had elevated further. Several products released that year achieved industry-leading benchmarks, including an intestinal tumor screening device operating at over 98% accuracy.

Sixth, addressing the issue of fake real estate listings, Jing Hong noted that while the problem existed, short-sellers needed a better understanding of the Chinese market. Fanhai had actively campaigned against real estate agents posting fake listings and engaged in no fraudulent behavior. He pointed out that the app had launched a cash-incentive campaign last year for users who reported fake listings. Additionally, Fanhai integrated AI vision technology into the platform to cross-reference and match property photos online, automatically identifying and removing a vast majority of fraudulent posts.

Seventh, Jing Hong dismissed rumors of a corporate spin-off as groundless, adding that Fanhai Group was considering legal action against those spreading false statements.

By the end of the conference call, investor anxiety was largely placated.

The following day, Fanhai Group issued a formal clarification announcement. During the next trading session, Fanhai’s stock price rebounded sharply.

However, after market close, the stock dipped significantly once again for two reasons:

First, journalists discovered that Fanhai Group’s quarterly financial report published the previous week contained disclosures regarding inquiries and investigations by the U.S. Securities and Exchange Commission (SEC). Fanhai clarified that the SEC investigation was merely routine and the timing purely coincidental—a detail supported by public filings on the SEC website. Nevertheless, media outlets aggressively amplified stories about Fanhai being “under SEC investigation,” often obscuring the fact that it was a routine inquiry.

Second, competitor platform “Weilai” dealt a indirect blow. Weilai released its Q4 2018 earnings report, revealing that it had shifted its accounting method for content licensing costs from straight-line amortization to accelerated amortization. Under GAAP, copyright expenses were traditionally amortized evenly across the duration of the license. However, Weilai argued that accelerated amortization reflected market reality in China more accurately, as viewership and engagement for media content peak during the first year and decline sharply afterward, making an even split misleading.

While this change initially appeared localized to Weilai, it posed a direct problem for Fanhai Group. Had Fanhai adopted Weilai’s “more reasonable” auditing standard, Fanhai Entertainment would have posted a net loss for 2018. During the intense streaming wars of 2017–2018, Fanhai Entertainment—under Zhang Li’s direction—had spent heavily to stockpile major intellectual properties (IPs), including both current hits and classic titles. Weilai, lacking capital, had fallen behind in the bidding war. If forced to follow suit and adopt accelerated amortization, Fanhai’s accounting metrics would take a severe hit, raising overall corporate costs across the group.

As Fanhai’s stock fell another 5%, Jing Hong merely raised an eyebrow.

“Weilai certainly knows how to cause trouble,” remarked Fanhai’s CFO, before asking: “Do we need to take action to stabilize the stock price?”

“That’s typical for Weilai. They are likely the ones hyping the ‘SEC investigation’ media narrative as well,” Jing Hong replied calmly. “No need. I have other arrangements.”

The CFO paused, visibly concerned, but relented: “…Understood.”

After the CFO left, several major shareholders met with Jing Hong via video call. These shareholders represented institutional investment banks and private equity firms, holding a collective 25% equity stake, though their voting rights were limited.

During the meeting, the shareholders challenged Jing Hong regarding Jing Tianping’s company, “Tianping Supermarket.”

“Is there really that big of a difference between Wujie and Xianglong?” one shareholder pressed. “Xianglong’s user base still trails behind Wujie. Is it really necessary to sever ties with Wujie and throw everything behind Xianglong? Both companies are evenly matched technically, but Wujie’s CEO has a far better track record and is clearly better suited to run a company. We believe Xianglong Live’s success with Apocalypse might just be a stroke of luck. Besides, Wujie Live is family—it’s much easier for Fanhai to maintain control over it.”

The shareholder continued: “Jing Tianping reached out to us this morning. He made it clear that if Fanhai drops his son Jing Bo, Tianping Supermarket will completely decouple from Fanhai, which will ruin our stock price even further. But if we keep supporting Jing Bo, Tianping Supermarket will merge directly into Fanhai Group at a favorable valuation. Jing Tianping mentioned that he’s getting old, and neither his son nor his daughter wants to take over the retail business—his son wants to pursue game streaming, and his daughter prefers the entertainment sector. Selling Tianping Supermarket to Fanhai clears his plate and eliminates future retail risks for Fanhai.”

Jing Hong paused briefly, asking, “This morning?”

“Yes,” replied the shareholder.

Unbelievable, Jing Hong thought. Pulling a move like this right now.

With dropping share prices and shrinking asset values, the institutional shareholders were naturally anxious. At this vulnerable moment, Jing Tianping forced a binary choice on the board: buy Tianping Supermarket or endure a public fallout. He was effectively leveraging Tianping Supermarket to squeeze Fanhai’s major investors.

Jing Tianping was aging and wanted to cash out his physical retail business to leave a substantial inheritance for his children. His son was set on game streaming, and his daughter wanted to stay in media. Before selling, however, he sought to force Jing Hong’s hand through shareholder pressure to keep supporting his son’s platform, Wujie Live.

Jing Bo refused to step down as CEO, determined to retain control of his company. Corporate history repeatedly demonstrated that after mergers, the executive who failed to secure the top spot rarely stayed long before being pushed out entirely. Jing Bo refused to let his equity be wiped out or his position abandoned. Having failed to persuade Jing Hong directly, Jing Tianping targeted the anxious board members instead.

If Fanhai absorbed Tianping Supermarket, its fresh food and grocery supply chains would remain intact. Financially, Tianping Supermarket had strong fundamentals, operating over a thousand storefronts and hypermarkets with annual revenues exceeding 60 billion RMB—roughly one-tenth of Fanhai’s total revenue. Despite the boom in e-commerce, Tianping Supermarket continued to expand its physical footprint in prime locations.

If integrated, Tianping Supermarket’s revenue and net profit would make Fanhai’s balance sheet look exceptionally strong over the next two years. It would diversify Fanhai’s revenue streams, making the conglomerate appear more resilient to market volatility and driving up stock valuation. For institutional fund managers, this offered a high-impact win on their track records. Most portfolio managers moved positions every few years; a short-term boost suited them far better than the long-term potential of a game streaming platform. After all, many of these funds would likely liquidate their Fanhai holdings within a few years anyway. Furthermore, Tianping Supermarket had accumulated prime commercial real estate in tier-one city centers over fifteen years—assets that held dependable intrinsic value.

Conversely, if Jing Tianping publicly severed ties with Fanhai, the stock would face another heavy blow. Tianping Supermarket was deeply integrated with Fanhai’s fresh supply chain and retail operations. Furthermore, a public feud with Jing Tianping—given his history with Fanhai during Jing Haiping’s era—would shatter investor confidence, framing Jing Hong as too young and inexperienced to manage family and corporate alliances.

After a brief pause, Jing Hong gave a slight smile. “I trust my judgment. Xianglong Live fits Fanhai’s strategic positioning far better than Wujie Live. Xianglong’s CEO possesses exceptional market intuition for gaming.”

“But—”

“You don’t need to worry about them decoupling,” Jing Hong interrupted smoothly over the video feed. “If he wants to separate, let him. I assure you, if Tianping Supermarket detaches today, within six months, Jing Tianping will be begging me to absorb Tianping Supermarket back into Fanhai.”