Black technology: a super empire spanning two worlds

Chapter 81 [AVIC Flight]

"I must try my hand at aircraft manufacturing. I have made up my mind." Xiao Yu looked around at everyone and said so. Everyone felt helpless when they heard it. Wen Suqing, who represented the interests of Ruilian Group, also hesitated to speak.

If Xiao Yu is determined to get into the aircraft manufacturing business, no one can stop him because he has absolute control over Lingjing Technology.

But after a moment, Xiao Yu suddenly changed the subject: "Since everyone disagrees, let's find a compromise. I will go out and set up a new company to do this. Lingjing Technology will provide a venture capital as a financial investor. If more funds are needed in the future, I will not force Lingjing Technology to continue equity financing, but debt financing, and use my personal name to borrow money from Lingjing Technology to do it."

The plan in Xiao Yu's mind was to let Lingjing Technology give him an angel round investment, first get 5% of the company's equity, and when the money was spent, raise another round of money to get another 5% of the equity, and then raise a third round of money to get another 5% of the equity, and stop when he got a total of 15%.

If the money is still not enough, as Xiao Yu just said, he will borrow money from Lingjing Technology in his personal name, and he will become the debtor of his own company, and his own company will become his creditor.

In fact, it is Lingjing Technology that is providing financial support to the new company, but Xiao Yu does not need to dilute the new company's equity any further. Others may not know, but he knows the value of the new company.

At this moment, Qian Wenhu heard Xiao Yu's plan, thought about it carefully, and felt that the plan was feasible. Since Xiao Yu insisted on doing it, if it failed, the bulk of the losses would be borne by him personally, so as not to harm the interests of the overall shareholders of Lingjing Technology Company.

As for Xiao Yu asking his company to borrow money in his own name, Qian Wenhu didn't think there was anything wrong with it and didn't need to worry that he wouldn't be able to pay it back.

After all, Xiao Yu himself holds more than 51% of Lingjing Technology's shares, and is already a super-rich man with a wealth of hundreds of billions. There is a high probability that he will be able to sit firmly on the position of the richest man for a long time in the future.

Although both are actually spending the company's money, the nature is completely different.

If it was equity financing conducted by Lingjing Technology, Lingjing Technology would not be able to get back a single cent if things went wrong in the future. But if Xiao Yu paid for it himself and it went wrong, the loss would be borne by him personally, and he would still have to repay the money he borrowed from the company on time.

This means that Lingjing Technology does not face any risk of major losses, and the interests of other shareholders are protected.

Of course, there will be no risk in this way, but even if the new company takes off in the future, you won’t be able to make big profits. If you want low risk, you can’t have high returns. You can’t have your cake and eat it too.

After a while, Xiao Yu looked around at Qian Wenhu, Song Yuan and other directors and said, "What do you think of this compromise plan?"

Qian Wenhu and others subsequently expressed their agreement with this plan. As for Xu Changming, Yun Shu, and Fu Kang, several directors were nominated by him, so they naturally followed Xiao Yu's lead.

The next vote was passed unanimously with seven votes in favor.

Lingjing Technology invested 20 billion yuan in Xiao Yu's new company, which had not yet been registered, and acquired 5% of the new company's equity, which was equivalent to valuing the new company, which did not even have a name, at 400 billion yuan.

If this were a normal VC investment, it would be absolutely impossible to only get 20% of the equity for 5 billion yuan. No VC would be willing to be such an unfortunate person.

However, the current situation is very special. In the eyes of several external shareholders of Ruilian Group, Xiao Yu's involvement in aircraft manufacturing is likely to be a money-losing venture, and he is determined to go for it. If you don't give him 20 billion yuan now to let him go for it, he will directly let Lingjing Technology enter the field of aircraft manufacturing.

They will invest 200 billion yuan in you right from the start, and they may even increase the investment later. If you lose money, it will be reflected in the income statement of Lingjing Technology.

With this in mind, it would be better to let Xiao Yu set up another company by himself, raise a few billion in the name of Lingjing Technology and let him work on it. Just treat the money as throwing it away. Although it is not a small amount, it is better than suffering a loss of three or five hundred billion in the future.

Since no one expected Xiao Yu to achieve anything, and considered him to be a money-loser, there was not much point in taking 5% of the shares and 10% of the management.

Anyway, Xiao Yu has also promised that Lingjing Technology will raise a maximum of 60 billion yuan for his new company and give him 15% of the equity. If 60 billion yuan is not enough for his efforts and he wants to make additional investments, Xiao Yu will have to borrow money from Lingjing Technology himself. This is not equity financing but debt financing. Since it is a debt, he will have to repay it in the future.

Ruilian's external major shareholders were not worried that Xiao Yu would not be able to pay back the money. After all, his net worth was there, and he held more than 51% of the shares of Lingjing Technology. Even if he borrowed hundreds of millions, he would not have to worry about not being able to pay it back. ...

An hour later, in the chairman's office.

The beautiful assistant Yun Shu came to the office. Xiao Yu handed her a document that he had prepared long ago and instructed: "The new company will be called 'AVIC Linzhou Aircraft Industry Co., Ltd.', abbreviated as 'AVIC Linfei'. Register the company according to the above requirements, and then recruit people according to the above planning information."

The new company, AVIC Linki, is mainly engaged in the research and development, manufacturing, sales, maintenance and service of large and medium-sized military aircraft and military and civilian aviation parts, basic application materials research, cutting-edge technology research, etc.

In the past, Xiao Yu would definitely not be able to set up such a company, but now is the era of military-civilian integration, and private enterprises can also engage in the military industry.

However, under normal circumstances, no private business owner would do this. Firstly, they do not have the technical strength, and secondly, it is difficult to make money. The profit margins of military products are already very low, and the competing peers are all the darlings of Team Guo Jia. Unless your product or technology is truly amazing, the military will definitely place orders with their darlings first.

Aircraft manufacturing is a typical heavy industry, high-end manufacturing and large items, which only Guo Jia team enterprises are capable of doing, and private enterprises are simply unable to do it.

Xiao Yu must have the confidence to do this.

We have the "version answers" of the Blue Star world behind us to copy, and even if it is just a half-baked copy, it will be a remarkable achievement when applied to Earth.

After the new company is established, Lingjing Technology will provide financing to AVIC Linfei as an investor, and the first round of financing will be RMB 20 billion.

Xiao Yu handed the establishment of the new company to Yun Shu. Her identity was an employee and executive of Lingjing Technology, but Lingjing Technology was already an investor in AVIC Linfei, so it was only natural for it to allocate some other resources. Xiao Yu could naturally use the employees of Lingjing Technology to handle the affairs of AVIC Linfei, which could also be regarded as a kind of resource allocation and support.

Yun Shu opened the file and took a look at it. He was stunned for a moment, then looked at Xiao Yu: "AVIC Linfei is mainly engaged in the research and development and manufacturing of complete military aircraft?"

She had always thought that Xiao Yu entered the aircraft manufacturing field to produce civilian private aircraft. Xu Changming and others also thought so. However, she did not expect that Xiao Yu actually wanted to produce military aircraft.

Everyone was not optimistic about it in the first place, and now that they know it is going to be a military aircraft, they are even less optimistic. It is 100% a money-losing product.

Under the current background of military-civilian integration, private enterprises can indeed engage in military aircraft research, and can test-fly their own aircraft after approval, but the key is whether your products can be favored by the military and whether this relationship can get orders.

If the military doesn't like it, it means that everything you make will be wasted in your hands, and all the investment will be wasted.

Yun Shu looked at the document summary and said, "Besides, how come there is still material to research these projects?"

Hearing this, Xiao Yu smiled and said, "Aircraft manufacturing is the main business, so can't we do some side business? To make advanced military aircraft, it is necessary to involve a variety of cutting-edge fields. How can we miss the research of basic application materials?"

Yun Shu was speechless for a moment after hearing this, and then closed the materials: "Well, you really have too much energy to release it, so you can do whatever you want. Anyway, no one is optimistic about it..."

Xiao Yu smiled and said nothing. There was no need to argue now. Time would eventually give the answer.

……

(End of this chapter)