Feisu buys two domain names fs.com and feisu.com for $2 million

Shenzhen Feisu Innovation Technology Co., Ltd. (referred to as "Feisu (FS)") has recently attracted attention for spending 15 million RMB to purchase two domain names. These two domain names are fs.com and feisu.com. Feisu Company specializes in the research and sales of network communication equipment, with its official website being the two-letter domain name fs.com, and also owning the pinyin domain name feisu.com.

Feisu Company purchased these two domain names from the holders respectively in July and October 2019, at a high price. Currently, the assessed value of the domain name fs.com is 12.85 million RMB, with an appreciation rate of 121.55%; and the assessed value of the domain name feisu.com is 2.125 million RMB, with an appreciation rate of 26.35%.

In the inquiry letter, the company was required to explain the reasons behind this high-priced purchase and the rationality of the evaluation results. Economist Song Qinghui pointed out that such high-priced transactions may raise doubts among investors, questioning whether the company is involved in related-party transactions, and expressing doubts about the evaluation results.

Feisu Innovation stated that the purchase of these two domain names was to meet business needs, as these two domain names are the core platforms of the company's business. The company emphasized that the high-priced purchase of the domain names was reasonable and explained the reasons behind the purchase.

The two-letter domain name FS.com was registered in May 1992, and has been registered for 32 years, so its valuation can easily reach 12.85 million RMB. The double-pin domain name feisu.com was registered in February 2004, and the assessed value of 2.125 million RMB is not overstated.