What's wrong with me being a rich man?

Chapter 569 Merge (4k)

There are many things to do at Lingang Carbon Silicon recently. Yu Xing first went to Zhejiang and then Jiangsu, and then took a two-day break before reconsidering the work to be promoted in the second half of this year.

The second phase of the carbon silicon group's factory in Lingang needs to start construction in the third quarter, roughly in mid-to-late August, in order to meet everyone's demand for Kyushu's future growth. It also needs to initially determine the direction of the second model.

WiFi Master Key is meant to be sold. The traffic it attracts from Douyin (TikTok) is getting worse and worse. With the implementation of the national policy of speeding up internet speeds and reducing fees imminent, now is the time to sell it at a high price. Once all the policies are implemented, it will be difficult to negotiate buyers and prices.

And, regarding the acquisition talks between Silicon Carbon Data and Douyin.

Both Silicon Carbon Data and Douyin have seen impressive growth this year and will face a new round of financing needs at the end of the year and the beginning of the next, which will be the best opportunity to adjust their relationship.

As for Singapore's MusVid, it still has room for development and doesn't need to be brought under the control of silicon carbon like TikTok.

Upon returning from his inspection tour, Yu Xing's first task was to communicate with Lingang and the city government about the next steps for the Silicon Carbon Group. He expressed that the new factory hoped to receive more support and development from local policies, and that in addition to manufacturing, a research and development center would continue to be established in Shanghai.

This attitude was not met with resistance, as prior to the inspection, it had been communicated, and Changzhou, which the Silicon Carbon Group favored, was also a place many people hoped to see.

Lingang Director Zhu Zehui was somewhat surprised by President Yu's behavior: "President Yu, I've never seen you so cautious before. You keep asking questions, it's really..."

He wanted to say it was sensitive, but he didn't say it.

Yu Xing and Zhu Zehui were quite familiar with each other, and to some extent, they had helped each other achieve success. Taking this opportunity, Yu Xing asked, "Director, where might you be going next year?"

Zhu Zehui didn't answer, but just chuckled and said, "President Yu, we'll have more opportunities to cooperate in the future. This carbon silicon car is really good."

The car made of silicon carbide is good, so it sells well in the market. Because the car sells so well, even the manufacturer has been labeled as someone who understands new energy very well.

Zhejiang Province is vigorously developing this area, including Changzhou, which is on the shortlist for carbon and silicon. Last year, it received policy support from the national and provincial governments, and its future goal is to drive the industrial chain of the entire region.

Lingang in the Yangtze River Delta has taken the lead in opening up new prospects. In addition to similar goals to those in Changzhou, it has also launched advanced projects such as millimeter-wave radar, lidar, and machine learning, laying a solid foundation for future technological development.

Furthermore, the development of carbon silicon data companies in Lingang in the mobile internet sector should not be underestimated.

Of course, everything that happened in Lingang cannot be attributed solely to Zhu Zehui, but it did earn him the reputation of being capable. His future destination is still under discussion, but barring any unforeseen circumstances, he is expected to take up a post in Zhejiang Province next year, partly to ensure the smooth establishment of the new carbon silicon group's factory.

Yu Xingsa understood some of the meaning, but wasn't quite sure.

Zhu Zehui asked a more obvious question: "I heard that in addition to the Silicon Carbon Group, Zhejiang Province is also talking about other new energy projects. For example, Huzhou is talking about a big project with LeEco. What do you think?"

Yu Xing smiled and said, "There are too many factors involved in large-scale cooperation projects between local governments and companies, including positive and negative factors, industry-related, company-related, and director-related factors. It's hard to say."

Zhu Zehui asked, "President Yu, what do you think about us talking privately?"

Yu Xing put it succinctly: "There are many factors, but LeEco definitely won't succeed."

Zhu Zehui nodded thoughtfully, without asking any further questions. Whether or not he would need to encounter this kind of work depended on subsequent changes.

He concluded the meeting by personally seeing Mr. Yu off, expressing his sincere hope that the carbon silicon industry would continue to thrive.

Yu Xing arrived at Carbon Silicon Data Company earlier than expected that afternoon. He had planned to take a look around, but the company was having a group interview, so he listened in briefly and happened to hear one of the topics being differentiated competition.

When he does show up, it's fine, but when he does, it clearly disrupts the applicants' preparations, and the conversation inevitably revolves around WeChat, micro-chat, Douyin, music, and other related topics.

Yu Xing listened with a smile for a while, and after Zhong Zhiling arrived, he went to his office before the group interview was over.

"Mr. Yu, since you're here and have already looked at everything, could you give us a few words of feedback?" Pan Manyi, the director who hosted the interview, asked the boss with a smile.

“I think it’s not bad. Nowadays, everyone is talking about differentiated competition, but often we are forced to become homogenized.” Yu Xing has personally worked on projects and has a deep understanding of this. “So, it’s not wrong to talk about differentiation, but differentiation is just a single point. The problem we need to consider is that if you can do it, others can also do it. It’s just a matter of time. Can that still be called differentiation?”

He concluded by saying, "Therefore, differentiation is not simply about being different, but about being comprehensive and irreplaceable, which is still very important."

If there are differences, then make them the same; but the requirement of being irreplaceable is two levels higher.

Yu Xing and Zhong Zhiling left amidst applause.

“Brother Xing, what you said makes a lot of sense,” Zhong Zhiling said. “Thinking about 360 again makes it even better.”

Yu Xing laughed and said, "I was sitting there listening to them talk just now, and it also made me think of 360."

The sale of the Master Key has been agreed upon within Silicon Carbon Data.

As a software with over 5 million users, it naturally has extremely high value. Regarding Zhou Hongyi's movements, we have discussed them with Zhong Zhiling and others, and it is possible that 360 will enter the short video market.

Nowadays, internet companies have multiple fields and multiple businesses. 360 makes antivirus, browser, input method, mobile phone and other products.

“We think it would be good if 360 were to make mid-length videos, as it could help people develop this understanding,” Zhong Zhiling said earnestly. “But it would also be very difficult, as mid-length videos are not conducive to faster dissemination.”

Internally, Silicon Carbon Data still refers to videos longer than one minute as short videos, in comparison to products like Youku and iQiyi. However, for ease of differentiation within the company, they use the term "medium video."

After receiving the call from his senior, Zhong Zhiling was not surprised that 360 was eager to make a move, but he felt that such an entry point was not particularly clever.

That being said, in the short video market represented by Alibaba, Tencent, Weibo, Silicon Carbon, and Kuaishou, it's quite impressive that 360 has found such a niche. Baidu, for example, hasn't yet released a similar product, and there's been absolutely no news about it.

"It largely depends on what President Zhou thinks. If he hears you say that, he might even think you're arrogant," Yu Xing said.

Zhong Zhiling shrugged, believing that Douyin has already achieved a substantial lead in the current domestic market.

He chatted briefly for a few more minutes before moving on to the merger between Silicon Carbon Data and Douyin, a topic that needed to be discussed today.

When the two arrived at the office, the online meeting interface was already open on the computer, and the other two investors, Xiong Xiaoge and Xu Xin, were also online.

Regarding the development and future of Carbon Silicon Data and Douyin, at least for the four people attending the meeting, they were quite certain. Xiong and Xu both agreed to Douyin's return to Carbon Silicon during the fundraising process.

However, with the rapid development of both Silicon Carbon Data and Douyin, they had some minor objections. "Mr. Yu, actually, it's quite good for Silicon Carbon Data and Douyin to develop separately like this," Xiong Xiaoge's face filled his screen. "They don't necessarily have to merge, do they? If they merge, should the Singapore company be merged in?"

TikTok's development is very expensive, raising $5.6 million in two rounds of funding. However, given that it needs to compete with Alibaba and Tencent, institutions have such expectations.

In comparison, the development of silicon carbon data is an unexpected surprise.

Carbon Silicon Data achieved a breakthrough in its business model based on advertising revenue in the mobile internet era, achieving break-even in 2013. Last year, its revenue exceeded 6 million RMB, making it profitable.

In Q1 of this year, Silicon Carbon's quarterly revenue has exceeded 10 billion RMB, while the annual revenue target is 60 billion RMB.

Last year it was a little over 60 million, this year it needs to be 6 billion.

Even in the rapidly growing mobile internet sector, this revenue growth rate far exceeds that of other internet companies in the same period. More importantly, it is guaranteed to be profitable.

This certainty is exactly what institutions love.

Yu Xing feigned surprise and said, "Huh? Wasn't this settled? I thought we were just going to let everyone know first. Why is your attitude, Mr. Xiong, even more... different than what Zhi Ling said?"

“President Yu, I think the financial situation of Carbon Silicon Data could even lead to its listing earlier than that of Carbon Silicon Group,” Xiong Xiaoge said. “The commercialization of Douyin is still a long way off. Here’s what I’m thinking: instead of letting Douyin be a neutral factor in Carbon Silicon’s portfolio, we should let Carbon Silicon go public first, and then see if there is a suitable opportunity to acquire it.”

Looking at the smiling faces on the screen, Yu Xing turned on his microphone and asked another person, "President Xu, do you and President Xiong both think so?"

"Mr. Xiong has his ideas, and Mr. Yu has your judgment," Xu Xin said vaguely. "But the certainty of the carbon silicon data is indeed very high. The reason why Douyin was allowed to develop semi-independently was precisely because it could better utilize third-party funds."

She continued, "In my experience, if this trend is good, there's no need to change it. We usually only need to change things when they're not going well, right?"

“Mus is a different case, let’s leave that aside for now,” Yu Xing said calmly. “President Xiong, President Xu, I don’t think we should have had this conversation. We have different opinions on the company’s development, and it’s sometimes hard to convince each other. How about this, President Xiong, President Xu, are you sure about this opinion, or can you think about it some more?”

Xiong Xiaoge and Xu Xin on the screen both fell silent.

Neither of them spoke first. Although they couldn't look each other in the eye like they would in a real meeting, they still turned their faces to the side on the screen, as if they both wanted the other to speak first.

After a long silence, Xiong Xiaoge broke the silence and said with a smile, "President Yu, you're wrong. Not everyone is hard to persuade. Try talking to me. I'm someone who's easily persuaded."

Seeing that he didn't insist, Xu Xin quickly changed the subject: "President Yu, we're just here to chat. Of course I trust your judgment. Since your judgment hasn't changed, then my thoughts are the same as yours."

Xiong Xiaoge turned her head in mid-air and asked, "President Xu, that's not what you told me before!"

Xu Xin calmly revealed, "President Xiong, you were the one who called me first to discuss this matter. I was completely bewildered and never expected such a call to happen."

"Mr. Xu, your words are a bit sinister," Xiong Xiaoge said with displeasure.

“Let Zhiling give you another reason why we need to make the acquisition.” Yu Xing interrupted the two men’s attempt to ease the tension. “The main purpose of Carbon Silicon Data’s financing at the end of the year or the beginning of the year was to acquire Douyin. We will sell the Universal Key in the second half of the year, so we are not particularly short of funds.”

Xiong Xiaoge exclaimed in surprise: "The master key is for sale? How much would it cost?"

Chung Chih-ling chimed in, "We hope to sell it for over a billion US dollars, but we estimate that there will be no market for it. We'll just have to see how much of a discount we can get in the end."

If Universal Key were to raise funds independently, its size would certainly allow it to secure over $10 billion. However, if it were to be sold, the inflated figures would have to be removed. Even so, this money would be a significant boost to Carbon Silicon Data, and once the merger with Douyin is completed, it would support Douyin's next stage of development.

Zhong Zhiling briefed the two main investors on the relevant situation.

Xiong Xiaoge then asked, "Do you need my help finding a buyer?"

“We’re in talks with 360 right now. Let’s wait and see if we can bring Baidu in to raise the price,” Yu Xing said.

Xiong Xiaoge agreed.

Upon hearing this news, Xu Xin's eyes flickered, and she suddenly picked up her phone and said, "Huh? Why is there a short seller issuing a short-selling report on 360?"

Upon hearing this, Xiong Xiaoge asked in surprise, "Shorting 360 again? And who is it this time?"

360 has been targeted by short sellers repeatedly over the past two years.

Xu Xin read out the name of the short-selling firm: "Real Research".

Upon hearing this, Xiong Xiaoge asked General Manager Xu to send over the message and report for review.

Xu Xin asked proactively, "President Yu, should I send you a copy too?"

Yu Xing shook his head and said, "No, I won't look. What short sellers? They're bound to fail this time."

Xu Xin hesitated, then swallowed her words.

She simply assumed this reflected President Yu's consistent disdain for short sellers.

Unexpectedly, I saw an official message from 360 that evening, claiming that the company would begin its privatization process, which means delisting from the US stock market.

Generally speaking, privatized stocks are priced higher than they are now, so as soon as the news broke, 360's stock price started to rise in pre-market trading.

"Real Research" once published a short-selling report on 360, which did not cause a stir at the time. After some time, they have combined the views of various bosses with changes in the development environment to produce a new short-selling report.

This is a golden opportunity for 360 to be betrayed by Coolpad.

however……

Regardless of any negative circumstances or business model, the company was directly privatized and delisted. One force can overcome ten methods, and the short sellers had to retreat.

In a deserted place, Li Song stared at the specially printed short-selling report, falling into deep doubt about his own choice.

(End of this chapter)