Those Years When I Was Forced to Top the Forbes List

Chapter 291 This is called a market decision

Wang Dongsheng's smile froze for a moment, but he quickly returned to normal.

When he signed that contract, he was eager to open a sixth-generation production line, secure financing, and escape the predicament of bank loans.

No one expected Chen Xuebing to be able to make BOE's secondary market appreciation so solid. I only thought that if Chen Xuebing used financial technology to drastically raise the stock price, then BOE could just sell a small amount of stock and make the betting contract fail.

But now, he has actually raised the price of the bottom holdings.

The original shareholder structure underwent a major reshuffle. The wavering minority shareholders were all taken over by Xu Xiang and Dai Zhikang. Later, the two of them actually obeyed Chen Xuebing's orders and did not use the usual "one-word soul-severing knife" method to dump their shares. Instead, they raised the price several times and gradually released the shares back into the market, while keeping some in their hands to wait for appreciation.

With two "stock market gurus," Chen Xuebing and Xu Xiang, holding shares for a long time, and hundreds of thousands of retail investors flocking in, liquidity has increased, and the market has begun to believe that BOE will appreciate in value.

Investors gradually approached, and banks also softened their stance, agreeing to continue lending to BOE.

This advantageous situation was entirely brought about by Chen Xuebing. With such a shareholder helping to manage the business, his worries were greatly reduced.

If they turn against Chen Xuebing, they will be completely self-destructive.

However, if Chen Xuebing insists on following the bet, it will put him in a difficult position.

"President Chen, I am indeed troubled by the board reshuffle..." Wang Dongsheng could only tentatively say.

"What's troubling you? Tell me."

Although Chen Xuebing has a contract in hand that can be enforced, he does not shy away from the issues.

“Look, our original board of directors consists of three representatives from the State-owned Assets Supervision and Administration Commission and six very important senior executives of the company, all of whom are veterans who have grown up with the company. You want to bring in three people all at once. Who would be suitable? I was thinking that if we could add four people, you could send three. Now that there are more social shareholders, it would be perfect if we could also introduce an independent director with social authority.”

Wang Dongsheng speaks very slowly.

Chen Xuebing listened patiently to his explanation before saying, "BOE currently has 28.6 billion shares. We and Hefei Xincheng currently hold 6.52 million shares, each holding 11.4%, for a total of 22.8%. The Beijing State-owned Assets Supervision and Administration Commission's shareholding is already below 34%. In addition, with the performance-based agreement in hand, it might not be appropriate for them to take three more seats, right? Shouldn't they give up one?"

“But you have to withdraw. According to the agreement, you will each sell 5% next March, and we will buy back 2.5% from each of you. That’s 15% less, so you won’t have much stock left.”

"How could it be less? We may sell some, but we still need to invest in the sixth-generation production line."

“Well, this.” Wang Dongsheng’s confidence gradually grew: “The Beijing State-owned Assets Supervision and Administration Commission has indicated to us that it is willing to participate in the repurchase of your 5% equity next year, and is also willing to invest in our new production line in the next step.”

"Oh." Chen Xuebing gradually smiled: "President Wang said that now that BOE has money, it no longer needs the support from Hefei and me, and is preparing to build a line in Beijing."

"No, no, that's not what I meant at all!"

Wang Dongsheng initially denied it, but after a moment's hesitation, he added, "Since the sixth-generation power line in Hefei has been agreed upon, we will definitely build it! We just hope that the management structure won't change too much. The Beijing State-owned Assets Supervision and Administration Commission has always supported our management, and with the combined efforts of all parties, we can achieve even greater things."

"Oh." Chen Xuebing nodded.

BOE was known for its aggressive expansion in its past, borrowing money to move forward and building production lines everywhere. Now that its financial situation is slightly better, Wang Dongsheng is probably restless and has come up with one idea after another.

BOE's spirit of debt-driven research and development is commendable. In his previous life, he also relied on this same approach of sacrificing a thousand lives to achieve fifth place in international patent applications, which is one of the fundamental reasons why he was interested in BOE.

However, this decision is undoubtedly intended to establish checks and balances.

“President Wang, I understand your concerns, but BOE is now a mixed-ownership enterprise with modern management. The board of directors I want to control is not one that fights for power, but one that is committed to market-oriented management and helps you solve the big problem of the market. Isn’t this your weakness? You’d better have a deep understanding of yourself and the management team.”

Chen Xuebing spoke slowly, while also pondering in his mind.

After a moment of silence, he said:

"Here's what we'll do: these three seats will be for a three-year period. After three years, we'll hold a shareholders' meeting to vote again and determine whether my three seats will remain. During these three years, we will support the management team led by you and we will not change your position as chairman. However, market decisions will be made in our favor."

Three years.

Wang Dongsheng fell into deep thought.

BOE has been around for thirteen years.

For the past thirteen years, he has indeed been anxious about the market.

"Mr. Chen, what do you mean by the market resolution you mentioned?"

Upon hearing this, Chen Xuebing immediately turned to Rong Xiuli and asked with a smile, "President Rong, how many offline orders can Tianyu place for BOE's newly built 4.5-generation line next year?"

Rong Xiuli was taken aback for a moment, then realized what she meant and asked with a smile, "How long will it take for your production line to go online for mass production?"

Of course, she wanted to use Chen Xuebing's screen supply; this was a condition that had been agreed upon long ago.

Moreover, she wanted it to happen as soon as possible.

The sooner the order is placed, the sooner her smartphones will enter mass production. Chen Xuebing then looked at Wang Dongsheng: "Mr. Wang, answer me, how long?"

Wang Dongsheng was also stunned.

"Um, next year, around the middle of the year, around June."

Upon hearing this answer, Chen Xuebing and Rong Xiuli shook their heads in unison, clearly dissatisfied.

"Say it again, the fastest, how long?"

Wang Dongsheng took a breath: "The earliest it will be is April, right?"

Chen Xuebing was still not satisfied: "We'll give you an order for ten million screens as soon as it goes online. How long will that take?"

Wang Dongsheng was shocked.

Ten million?
But Chen Xuebing had brought Rong Xiuli along, leaving him no room for hesitation.

"If it really is ten million, March! In March, we'll make sure it's mass production!" President Wang said, almost gritting his teeth.

Chen Xuebing then smiled and said, "President Rong, you can make your decision in March."

Rong Xiuli immediately said, "If BOE can guarantee the yield rate and delivery speed, we will need at least 500 million mobile phone screens next year."

“Okay, I agree. Your supply will be prioritized. But could you sign a reservation agreement and pay a deposit? It doesn’t need to be too much, two or three million will be enough.”

Rong Xiuli smiled: "President Chen, since you've spoken, what's wrong with it?"

Spreadtrum now holds the lifeline of multifunction chip technology, as well as the lifeline of future smartphones. The two companies' dealings alone are calculated in hundreds of millions, so two or three million is nothing at all.

"Okay, Mr. Wang, please sign the contract with Mr. Rong and then announce it to the public so that I can boost the stock price."

Mr. Chen gave a live demonstration of what a market decision is.

But Wang Dongsheng was still in a daze.

"Is it that simple?"

“Yes,” Chen Xuebing smiled. “This is the market decision I was talking about: I’ll find the orders, and you strictly cooperate with my production requirements to implement the production plan.”

Wang Dongsheng swallowed hard: "How big of a screen do you need?"

Rong Xiuli became interested: "President Chen, I've discussed it with the technical manager, and we're planning to make a 3-inch one. Do you think it will run the system perfectly?"

"Yes, but it's a little small."

"I think so too!" Rong Xiuli clapped her hands. "How about 3.2?"

“3.5 inches, I’ll have Spreadtrum send you a suitable size later.” At this moment, Chen Xuebing thought of Meizu, which replicated Apple products, and laughed, “You can make a model and squeeze it in your hand.”

In its previous life, Meizu did not have the conditions to build engineering prototypes. The demonstration phase was carried out using cardboard models. And it was through this process that Meizu created a smartphone that perfectly met the expectations of Chinese people, relying on a modified version of the Windows system that was not fully licensed.

Singularity's mobile phones are positioned too high. In order to control the system market, in addition to relying on Huaqiangbei's low-price volume sales, it must support a few excellent downstream manufacturers.

If it weren't for the rumors that Huang Zhang of Meizu was too arrogant, he would have been willing to support him.

If Rong Xiuli can't create a hit product even with his help, then he might as well turn around and support the Meizu team.

Rong Xiuli, however, had no doubts: "Alright, I'll see and give you an answer!"

Mr. Wang was already drooling as he listened.

Five million. Considering the size of 3.2-3.5, that's at least a six or seven hundred million order!
Chen Xuebing wasn't finished speaking.

"We need not only your inner screen, but also the capacitive outer screen, Mr. Wang. Are you looking for a partner, or are you planning to make it yourself?"

“Do it yourself!”

Wang Dongsheng had absolutely no confidence, but he still made the choice without hesitation.

Capacitive touchscreens are now more expensive than internal screens, and the core touch sensor has technological synergy with TFT processes, so why not make them?
Hearing this, he already remembered the mobile phone that Chen Xuebing wanted to make.

Capacitive touchscreen, large screen.
"Mr. Chen, has the phone you're working on been developed yet?"

Chen Xuebing smiled slightly, reached into his pocket, and pulled out a big treasure.

(One more chapter will be released at midnight)
(End of this chapter)