What's wrong with me being a rich man?

Chapter 403 Blowing the Wind
Upon receiving his boss's approval, Zhang Yangxu immediately contacted Ren Jiasheng, the senior vice president of LeEco who intended to visit the Silicon Carbon Group in Hong Kong, to confirm the time.

However, he had some doubts about this.

Taking advantage of the boss's seemingly good mood, Zhang Yangxu asked, "Isn't LeTV a video company? What are they looking for at our Silicon Carbon Group?"

"Maybe he's also interested in building cars," Yu Xing said with a cryptic smile.

Zhang Yangxu was puzzled: "Why would a video website want to build a car? Did he get the wrong company? Maybe he wants to check out Carbon Silicon Data Company?"

"Before I started building cars, I was also in the internet industry. If I can do it, why can't LeEco?" Yu Xing asked with a smile. "I think that CEO Jia is also a heroic figure."

Zhang Yangxu was taken aback, and subconsciously retorted, "President Yu, they are different from us."

However, he couldn't quite put his finger on what was different.

You only regret not having read enough books when you need them!
Zhang Yangxu could only sigh inwardly, realizing he had missed a golden opportunity to curry favor.

That night, he was still pondering the events of the day, thinking it over and over again. He felt that his boss's hands-on approach, working non-stop, was different; he felt that his boss's repeated reflection and learning of industry knowledge was different; he felt that his boss's fundraising and development of mobile internet projects were different...

However, Zhang Yangxu thought again that he didn't know what other bosses were like. Maybe the boss of LeEco was the same way. Since he didn't know, his evaluation was meaningless.

and so……

Zhang Yangxu was somewhat looking forward to LeEco's performance during their visit.

What would a company that rises from the online video field be like?

Three days later, Zhang Yangxu met Ren Jiasheng, senior vice president of LeEco. His first impression was not anything special, except that the other man seemed to be wearing designer brands.

After he briefly entertained the other party and led them to the president's office after the boss's meeting, a deep impression was formed during Ren Jiasheng's meeting and greetings with the boss.

"Mr. Yu, on behalf of LeEco and our CEO Jia, I would like to express my respect to the Silicon Carbon Group, which is venturing into the new energy field."

"We sincerely hope that LeEco can reserve the first 100 silicon carbon electric vehicles right now!"

"President Yu, you must grant us this difficult request!"

After shaking hands, Ren Jiasheng placed an order with great enthusiasm, cheerfulness, and generosity.

100 trams!
If each car costs 3000, that's 30 million in support!

Ren Jiasheng thought that President Yu on the other side would be surprised, but the other party just smiled lightly.

“How could it be an unreasonable request? With President Jia and LeEco being so supportive, it would be impolite for Carbon Silicon Group not to accept.” Yu Xing said unhurriedly, “Our price hasn’t been finalized yet, but it’s estimated to be around 35. Let’s start at 30 and collect a deposit of 1000 million.”

Ren Jiasheng let out an "uh," wondering why he wasn't refusing at all. Wasn't this deposit a bit too high?
He quickly changed his mind and said with a smile, "President Yu, then let's wait for President Jia to publicly express his support at the right opportunity, so that everyone can see the power of Chinese manufacturing."

Yu Xing smiled slightly: "Okay, Mr. Jia is welcome to support us publicly or privately. Our Silicon Carbon Group welcomes any support we can afford."

Ren Jiasheng had some doubts in his heart, sensing that President Yu's behavior was unusual.

Zhang Yangxu, who was listening to the exchange, was initially shocked by the other party's boldness, but now he felt something was off. Was this "100 vehicles" something that had been pushed to some unknown "public support"? Was this just empty promises?
"President Yu, President Jia originally wanted to come, but he was too busy, so he asked me to visit the Silicon Carbon Group first. When I heard President Jia say that, I was overjoyed!" Ren Jiasheng quickly changed the subject, his tone and expression slightly exaggerated. "President Yu, you are my idol. It's such a rare opportunity for me to seek guidance from my idol in person!"

He continued, somewhat excitedly, "I told Mr. Jia before that it would be a real loss to the mobile internet industry if someone as talented as you, Mr. Yu, didn't take full charge of the work of Carbon Silicon Data Company!"

"But Mr. Jia refuted me, saying that it's a great blessing for the new energy industry that someone like Mr. Yu is going into the new energy vehicle business!"

After Ren Jiasheng said those words, President Yu finally smiled.

"You're too kind. Although I've never met Mr. Jia, I've often heard about LeEco's rapid development," Yu Xing said with a smile. "LeEco's market value is almost 200 billion now, which surpasses Youku Tudou. That's impressive."

Ren Jiasheng immediately said, "LeEco's development is all thanks to Mr. Jia's strategic planning. We at LeEco not only want to make movies and TV shows, but also want to build a larger LeEco ecosystem. Mr. Jia is a person who always pursues innovative development!"

Yu Xing took a sip of tea and couldn't help but say, "President Ren, we're just having a casual chat here, no need to be so impassioned. The reason you've come here on behalf of LeEco is... do you want to invest in Silicon Carbon Group?"

“Mr. Jia does have such considerations.” Ren Jiasheng did not deny the possibility of him spending money, and smiled. “However, we don’t know anything about car manufacturing. I came here today with a vague idea that I would like to ask Mr. Yu for advice.”

“I heard that Silicon Carbon Group has done a lot of supply chain work for electric vehicles. If LeEco extends its ecosystem to the automotive field, and we can jointly expand the scale of the supply chain, wouldn’t that better help Silicon Carbon Group reduce costs?”

Yu Xing put down his teacup, extremely surprised: "Does LeEco also want to build cars?"

“We are not familiar with this field, but seeing Mr. Yu pioneering new energy technologies, we want to contribute to the domestic new energy industry and bring a broader ecosystem to LeEco’s users.” Ren Jiasheng said earnestly, “So, I came here today to hear Mr. Yu’s assessment of car manufacturing. If Mr. Yu is willing to share his experience with us, we would be extremely grateful!”

Yu Xing did not speak immediately, but instead tapped the table lightly with his hand as if he was considering his words.

He had considered this matter after receiving the news from LeEco. LeEco's car manufacturing was about continuing to tell new stories, raising funds on old stories that could no longer be covered up, and then robbing Peter to pay Paul.

Yu Xing naturally knew a lot about his former employer and had also read a lot of information afterward.

LeEco engaged in fraudulent activities both before and after its IPO, inflating revenue and profits through fictitious business operations, forged contracts, and fund circulation. For example, it fabricated contracts with advertising companies, kept accounts receivable outstanding for extended periods, and inflated revenue by presenting impressive financial reports to stimulate stock price increases.

If he remembers the numbers correctly, this falsification has lasted for as long as ten years.

The so-called seven major ecosystems of LeEco were just a series of new stories used to attract funds and delay the collapse. Of course, the collapse can be either a soft landing or a hard landing, and the final outcome depends on many factors.

Yu Xing was aware of this, and now that he saw LeEco focusing its attention on him, he was afraid that the other side would learn the real stuff.

If LeEco pursues the extended-range car model, it might actually be able to leverage the development of Silicon Carbon Group to obtain excess funds, thereby maintaining the operation of the entire system. "Making cars is a matter of being both difficult and easy," Yu Xing said slowly, recounting his experience. "The domestic industry chain already has a certain level of technological accumulation. Silicon Carbon Group has been specifically cooperating with upstream and downstream partners in the industry chain for the past two years. If LeEco wants to do it, it will definitely follow this path."

"The problem is the choice of tram routes, and whether the market for range-extended electric vehicles can actually take off. To be honest, this is still an unknown. On the contrary, it's the special..."

Upon hearing this, Ren Jiasheng couldn't help but interrupt to express his admiration and confidence in President Yu: "President Yu, I've read your analysis of the range-extended transmission route. This market is definitely going to take off!"

Yu Xing quickly waved his hand: "No, there is no market that can definitely be made. Range-extended electric vehicles are a transitional technology, and it is an unknown."

"BMW also made range-extended vehicles, didn't they? I saw they announced a range-extended model this year, just like what Mr. Yu said at last year's auto show." Ren Jiasheng came after inquiring about the information. "I think what you said, Mr. Yu, makes a lot of sense. Even if it's a transitional phase, based on the performance of the Chinese market, if it's a transition for ten or fifteen years, the user demand during that time will still be there! Once there is demand, it's a definite market!"

Yu Xing frowned and denied it: "President Ren, that was in front of the media. I can't just back down and admit defeat. Well, the extended range route is certainly an option, but it is indeed an unknown."

Seeing this scene, Zhang Yangxu felt extremely strange.

Wait a minute, it seems like LeEco is the company that's actually making range-extended electric vehicles.
No, no, what's wrong with the boss?
Zhang Yangxu felt somewhat lost.

Seeing that Ren Jiasheng still wanted to argue, Yu Xing gestured for him to listen to what he had to say: "Range-extended vehicles are indeed an option, and there is indeed demand for them. The question is, wouldn't pure electric vehicles be a better option? The range-extended vehicle market might be 10, while the pure electric vehicle market might be 100. In the former, it would be difficult for two companies to survive in the 10, while in the latter, several companies could share the market."

Ren Jiasheng's unease was explained: was it because President Yu was afraid that LeEco's entry into the extended-range vehicle market would create competition?

However, this transitional technology does indeed belong to a niche market.

"Moreover, no matter how we analyze it, Mr. Ren, anything that seems logically correct but hasn't been validated by the market is false," Yu Xing said seriously. "In all of China and the world, there hasn't been a single successful range-extended vehicle manufacturer so far, while Tesla's pure electric vehicles have already achieved success."

He readily cited the data: "Tesla just released its Q1 financial report this year, with revenue of $5.62 million, a surge of 176% year-on-year. Its Model S deliveries increased from 2650 in the fourth quarter of last year to 4900 in the first quarter of this year."

"Tesla achieved its first quarterly profit, and its Model S outsold the Mercedes-Benz S-Class and BMW 7 Series in the North American luxury car market priced above $7!"

Tesla's Q1 earnings report was released just last week, with all data showing an increase, exceeding market expectations, and the stock price also broke through a 52-week high.

Ren Jiasheng had been researching silicon carbon groups recently and hadn't really paid attention to the developments of American electric vehicles. Upon hearing this, he hesitated and said, "Surpassing the Mercedes-Benz S-Class and BMW 7 Series? That's amazing? It...it's not fake, is it?"

“How could they fabricate anything? Tesla’s stock price was over $50 last week, and it jumped to $120 this week.” Yu Xing shook his head and sighed, “The performance of the Model S is significant because it completely dispelled the market’s doubts about Tesla burning money and proved the viability of its business model!”

Yu Xing's emotions were almost overflowing: "It's perfectly acceptable to burn money on pure electric vehicles. This business model has been proven, and the market now recognizes it. Sigh, when I looked at Tesla's stock price this week, I was thinking that if I had just started Silicon Carbon Group, I might have also considered pure electric vehicles."

Ren Jiasheng remained silent. Burning money… business model… market acceptance…

"Moreover, Mr. Ren, to be honest, Silicon Carbon Group has already made range-extended vehicles, and we still have to make them good." Yu Xingzhen said enthusiastically, "But the second model must be a pure electric vehicle. This is not just a matter of whether the model is successful or not. We can use pure electric vehicles to benchmark against Tesla. In this way, Silicon Carbon Group will be able to raise funds more easily in the future."

Ren Jiasheng once again extracted key words, comparing them to...easy financing...

If LeEco wanted to enter the car manufacturing industry, it could have benchmarked itself against Silicon Carbon Group, which would have made it easier to raise funds. After all, Silicon Carbon Group had successfully completed two rounds of financing. However, if it had chosen Tesla, which has a larger brand recognition and more tangible market success...

Ren Jiasheng pondered for a moment, and after considering everything, pure electric vehicles were indeed superior to range-extended electric vehicles.

Mr. Yu's words make a lot of sense; Tesla is right there for all to see.

"Of course, if LeEco wants to make pure electric vehicles, the supply chain of Silicon Carbon Group can also help. It's beneficial for everyone to work together to make the pie bigger," Yu Xing said.

Ren Jiasheng immediately expressed his gratitude and almost wanted to place an additional order for 100 vehicles, but he was afraid that President Yu would bring up the matter of sending money again, so he had to give up.

Yu Xing had a long chat with the senior vice president of LeEco, and then had Hu Zhengnan accompany him as he took Ren Jiasheng and others to inspect the R&D and factory areas. As for the evening's reception, he did not show up again.

After a hearty meal and drinks that night, Ren Jiasheng called General Manager Jia to report on what he had seen and heard during his trip, emphasizing the proven success of pure electric vehicles in the market and the ease or difficulty of financing them in comparison to Tesla.

Jia Yueting listened quietly, initially agreeing with this view, and then asked, "What do you think of Yu Xing as a person?"

"President Yu...we've never met before, yet he's being so frank with someone we've only just met. He's more sincere than I imagined." Ren Jiasheng spoke his mind honestly. Just like when President Yu mentioned range-extending technology, he spoke so frankly to the media, but he didn't hold back with someone he had just met. He was indeed very sincere.

Jia Yueting chuckled: "Really? Then you should be more generous. You can't be stingy when it comes to doing things."

Ren Jiasheng nodded in agreement, admitting that he was indeed not as generous as President Jia.

The following day, the LeEco team continued their inspection tour in Lingang, visiting not only the Silicon Carbon Group but also some of the surrounding supplier companies.

In the afternoon, Zhang Yangxu went to the president's office to report: "The LeEco people have already left."

"Oh, so fast? Okay, got it." Yu Xing didn't even look up.

Zhang Yangxu hesitated for two seconds before asking, "President Yu, does LeEco really want to build cars? Can they succeed?"

"Probably, but how would I know if we can actually build it?" Yu Xing replied, then thought for a moment, "The car manufacturing process isn't a secret. Just throw money at research and development. As long as no one messes things up, it should at least look something like something."

As for what kind of trouble they're causing, it's about production capacity issues, R&D bottlenecks, priority supply, promising to help but then going back on their word...

Zhang Yangxu nodded, and seeing that his boss had no further instructions, he turned and left the office.

After browsing through the documents in his hand, Yu Xing glanced at the information about LeEco. As for LeEco now, CEO Jia has already pledged 77.61% of his shares to raise money, and the cash flow is probably not very optimistic.

He shook his head, in a very good mood, humming a song as he looked at the documents.

Blow, blow, my pride is unrestrained, unrestrained~
(End of this chapter)