Those Years When I Was Forced to Top the Forbes List

Chapter 374 2007, Let's do it!

"Shanghai? Can Shanghai's rich list control the chairman? The orders we've given to Spreadtrum have suddenly increased so much in the last two months, do you know why?"

"Isn't it because of the Chinese New Year? The kids have all received lucky money, and school is about to start, so it's encouraging spending."

"Heh, consumption? The domestic feature phone market is already saturated! It will take at least a few months to digest it all! There are some things I can't say over the phone! Do you know how many phones Huaqiangbei shipped last year?"

"How many?"

"1.2 million! The government report is out! In 2006, the mobile phone industry accounted for 7.6% of Shenzhen's GDP! 7.6%! That's terrifying! Almost all the production capacity is in Huaqiangbei! How much was it in 05? 4.3%! Government leaders are scared, afraid that the market in Huaqiangbei will be bad this year, affecting the city's GDP. They've opened customs channels to India and the Middle East for us! They've even canceled the market patrol teams, for fear of delaying production! In January and February alone, exports declared as "electronic components" under the guise of "technical cooperation" reached 46 billion US dollars! Electronic components. You know what that means, right? When did electronic components become so popular in Shenzhen? It's all from Huaqiangbei."

"Sigh, aren't nearly half of the major factories in Huaqiangbei controlled by Qidian? If they were to connect to the supply chain you've arranged, wouldn't they be making a killing?"

"Hehe, aren't you just one part of the supply chain? This time, the chairman really gave you most of the profits, saying that we're making too much money. The new market for 3G phones needs to pass on the profits and drive the development of related supply chains. If he were more ruthless, he could have cut half of the profits from you. With the momentum of Guanghua Qiangbei this year plus the new market for 3G phones, he could have earned at least the equivalent of Huang Guangyu in a year! Now look what happened, he's become Zong Qinghou."

Huang Guangyu's net worth was 180 billion yuan last year, while Zong Qinghou's was 57 billion yuan.

Upon hearing this, Wu Ping wanted to laugh but also sighed, "Chairman Chen's vision is too grand. Even if it were us, we couldn't put together such a grand plan."

In fact, the "Zong Qinghou" share was also in Chen Xuebing's hands. It was generated from the supply chain equity controlled by Chen Xuebing, and Qidian's share was almost completely cut off.

Lu Weibing intentionally revealed this information because he saw that Spreadtrum's profits were too high and was afraid that Wu Ping would have other ideas and reduce the share given to Qidian.

"Hey, let's not let the boss's good intentions go to waste," he said, his words carrying a double meaning.

The two were whispering to each other when Chen Xuebing suddenly returned.

Behind him were Cai Zhijian, Wu Jiesi, and Kan Zhidong.

"Clap clap."

Chen Xuebing clapped his hands twice: "Master and the property management staff, please go out for a moment. We need to have a meeting."

The property manager and the doorman who were talking to Ren Ying immediately left, and He Yue followed them out of the office, closing the door from the outside.

Chen Xuebing leaned casually against the desk and said, "With limited resources, the whole building is under renovation, and this is the only complete office. Let's not be picky about the location and just have our New Year's meeting here."

"Let me introduce you to the group's new vice president, Mr. Wu, Wu Jiesi."

"President Wu, in about ten days, the renovations on all floors will be almost complete, and the group will be relocating to Shanghai as you requested. Will you be able to start work then?"

Wu Jiesi was put on a pedestal by these words. Seeing that Chen Xuebing had actually bought a headquarters building, he didn't know what to say and nodded: "Okay! I'll talk to General Manager Zhu when I get back. I'll definitely be on duty by mid-March."

After saying that, he shook hands with Wu Ping, Lu Weibing, and Ren Ying respectively, and exchanged a few polite words.

As for Kan Zhidong, we had already met him outside the door. Cai Zhijian, on the other hand, had become comrades-in-arms who had been together day and night for over a month.

"As our subsidiaries grow, the group company also needs to expand. We've come to Shanghai to make a name for Gu'an Group."

Chen Xuebing got straight to the point.

"President Kan, please communicate back to Changzheng Capital regarding its relocation with the headquarters. The relocation is scheduled for mid-March. Employees who are unwilling to come can stay in Chongqing to handle corporate bonds. There is no need to force them. Changzheng will definitely recruit some Shanghai elites after coming to Shanghai, so there will be no shortage of people."

"Hehe, our Changzheng is a hot commodity. I don't think there are many who don't want to come." Kan Zhidong said, looking around. "Where's President Bi? Isn't Gu'an Construction moving in?"

"He's too busy. The administrative staff from Gu'an Construction will move over. Someone will be responsible for reviewing the documents and stamping them. General Manager Bi will stay in Sichuan for the time being. He will soon take over the construction of a sixth-generation pipeline in Hefei. Two water conservancy projects in Chongqing and a shopping mall project in Jiangbei will be overseen by Chief Engineer Tang. This project is also quite important, involving the recovery of billions of yuan in debt. Therefore, the main force of the construction company will definitely not be able to come to Shanghai within six months."

"Because the construction company is not strong enough, I will definitely focus my main efforts on Gu'an Construction. So today's meeting is to arrange the main tasks of each company for the next year."

As Chen Xuebing spoke, he looked toward Wuping, who did not belong here.

"Mr. Wu, I called you here because I am a major shareholder of Spreadtrum. Going forward, Spreadtrum and Singulato need to clarify their respective directions, compete in different areas, and cooperate with each other, so as not to get stuck in the same track. I will also be making some adjustments to Spreadtrum's development direction. Do you understand?"

"Chairman Chen, we've always considered Qidian a brother company, sharing resources, business, and even personnel," Wu Ping said with a smile.

Since everything is interconnected, there's no need for much regulation.

He expressed friendliness and answered Chen Xuebing's question in a relaxed tone, conveying the relative independence of Zhanxun.

In fact, although the Spreadtrum board of directors all agreed that Chen Xuebing would hold a controlling stake, the system has always been based on professional managers. As everyone knows, Chen Xuebing's 51% controlling stake is only temporary and will naturally be diluted after the company goes public.

Chen Xuebing doesn't need to emphasize controlling stake. His plans to further increase his stake in Spreadtrum and BOE were all during the 2008 subprime mortgage crisis. At that time, he had both US dollars and RMB. Both companies were listed companies, and the major shareholder could buy company stock without the consent of other shareholders, and it wouldn't even trigger a takeover offer.

"Alright, let's begin our meeting."

"First, we need to clarify the core development strategy for 2007."

"We must establish absolute influence over all companies and the Gu'an Holding Group."

Upon hearing this, the group exchanged glances.

Absolute impact? How does it affect us?

"The influence I'm referring to isn't simply about wealth."

Chen Xuebing smiled and said, "In the past year, I have spent a lot of energy on negotiations, especially this trip abroad. I feel that our influence is still not enough. In the eyes of foreign capital, we do not seem to have the conditions for equal negotiations. I think this is due to two reasons: first, the existing industry control has not been realized; second, the accumulation of technical strength is insufficient."

"My development strategy has never been simply about making money. If I had focused solely on arbitrage, I would definitely be on the world's rich list by now."

"Of course, Gu'an Holdings Group would not have the industry control it has now."

Chen Xuebing had one more thing he didn't say.

If he's only focused on making money, he might not even be in China anymore. He might have already obtained American citizenship through Goldman Sachs and started enjoying a luxurious life.

"I've been thinking a lot lately about how to define development goals?"

"I summarized it."

"We aim to be a company that provides top-tier services to top companies, targeting the most demanding core business areas of top companies and institutions. Any company that reaches a certain level will encounter us."

Everyone was stunned for a moment.

Especially Cai Zhijian, Kan Zhidong, and Lu Weibing.

This sounds familiar; Chen Xuebing seems to have said something like "representing China's advanced productive forces" at several meetings.

But to their surprise, at this moment, the sentence no longer sounded like a wish, but a goal.

The companies present here are already industry leaders, aren't they?
Chen Xuebing then added leisurely, "I'm not talking about China, but the whole world."

The atmosphere froze again.

For some reason, the three of them felt a sense of relief.

Now it sounds like he's bragging again.

Without an unattainable grand ambition, I wouldn't know how to strive for anything else.

“Chairman Chen, I understand what you mean.” Wu Ping spoke first: “You want us to develop technical standards instead of products. Spreadtrum has now been brought to the position of a TD 3G standard setter by you, but we are still surviving on our products. Without the iterations of the SC6800 and SC8800 series, we cannot make a profit.”

Chen Xuebing nodded in agreement: "That's natural. If the market hasn't opened up and there aren't a large number of people who need our services, then we must make products, and make the best products to lead the direction of market development."

Wu Ping calmed down and stopped arguing.

"However," Chen Xuebing changed the subject, "we must always do our best today, but we must always keep our eyes on tomorrow."

“I’m not just saying this out of thin air.”

“Just like Singularity.” Chen Xuebing looked at Lu Weibing. “I am the absolute majority shareholder of Singularity. Apart from the 15% option pool, I own 85% of the shares. In fact, most of the shares in the option pool have not been distributed yet. In fact, I can expand the equity of the supply chain company into the equity of Singularity. The equity of the option pool remains unchanged, and I can regain more than 90% of the equity. The equity of the supply chain company is almost still mine.”

"But once we brought in supply chain companies, Singularity made more money, and the proportion of its main business decreased, so everyone's mindset changed."

“Instead of doing that, I’d rather have this money in my hands and distribute it to more ambitious companies.” “I never believe that companies that are financially secure can excel in technology. Technological development has always been led by private enterprises. It’s all about drive. If you don’t develop today, you’ll die tomorrow.”

"The prospects for the 3G market are very good. This is my advice to you two in advance. After 3G, there will be 4G. We don't actually have an advantage in 3G. WCDMA is too strong. The market will be eliminated very quickly. I will also work hard to promote TD 4G technology. 4G has its own way of doing things, so don't forget this spirit."

At this point, Lu Weibing coughed lightly: "Chairman, 4G is the era of explosive growth for mobile internet applications, and our management team all agree on this. However, even with hard work, we must ensure that our employees are well-fed. I'm also planning to apply for a meal subsidy from you, and we can also improve the cafeteria. People are not worried about scarcity, but about inequality."

Chen Xuebing glared at him: "You want the group to provide the catering subsidies? Besides, you're living in someone else's building, what kind of canteen are you running? Hurry up and get Shenzhen to approve the land for us! We need land next to the factory, to expand the industrial park on the factory's foundation! The group will inject capital into the construction costs of the park, and there will be further financing later! When Qidian starts making money, I won't care how big the canteen is!"

Hearing this, Lu Weibing smiled slightly: "You don't care that it's 40 yuan per person?"

"You want to eat dragon meat, don't you?" Chen Xuebing complained, omitting the word "shrimp." "The park is so big. The leadership and engineers are paid 40 yuan a day, and the technicians and workers are paid 20 yuan a day. There are two canteens, understand? The food has to be good, exceeding the industry standard. Everyone has to pay half of the food cost. There are too many of you, we can't afford to subsidize you."

“I understand, I understand.” Lu Weibing chuckled. “By the way, our electroplating production line needs a wet chemical process expert, but Foxconn won’t provide one. I’ve heard that semiconductor and panel factories have such experts.”

"How long will it take? I'll borrow one for you," Wu Ping offered. "Huahong has a wet process team; I'll ask around for you."

"You two can make your own arrangements in private."

Chen Xuebing waved his hand and continued:
"Mr. Wu, Spreadtrum should focus on the smooth evolution from TD3G to TD-LTE. The trend of WiMAX being rejected by the 3GPP Association is becoming increasingly clear. Also, your idea of ​​using chips to perform self-training on interference signals in the Deep Belief Network is quite good. I plan to develop GPU computing chips."

"I heard it from General Manager Fan," Wu Ping said, somewhat embarrassed. "But the project belongs to SHTLE Company."

"A project is a project, and a chip is a chip. Does Huawei have any research in this area?"

"No, we're all just starting out."

“Then we won’t involve Huawei. Communication technology is already reliant enough on Huawei. We need to develop our own technological advantages. Spreadtrum and Singularity are secretly collaborating. The project team is located in Shanghai, and we also have Singularity’s US data center. We’re poaching people from the US. Lin Bin said that 65nm chips can be physically disassembled, so we’ll buy Nvidia chips to do our first reverse engineering project. Our engineering team in China will disassemble their chips, and we’ll recruit GPU designers from the US to try designing.”

The United States has an Economic Espionage Act, and architects involved in reverse engineering may face up to 15 years in prison. Disassembly and design must be separated.

Chen Xuebing had many concerns about poaching talent from the United States, but during this trip abroad, he discovered that the regulations on high-performance CPUs and chip manufacturing are indeed very strict. However, many future technologies that he considers very important are not currently included in the list of controlled military/dual-use technologies, such as ARM and GPUs.

The US has no regulations on ARM architecture, but the UK does have a national security law from 02 that mentions the government's right to suspend the export of such technologies, but it is very vague.

GPUs are classified as consumer products by the United States, while high-end CPUs can flow freely to China without triggering any export requirements.

The issue of technological limitations needs to be considered separately.

Moreover, some inspirational articles are actually quite true; the investment environment in the US is relatively open, at least for now.

If Singularity finds a strong overseas financial backer, it might actually be able to acquire some technical talent in architecture and GPUs.

Wu Ping frowned at the "physical reverse engineering" explanation: "You mean grinding away the chip's surface layer by layer and then taking pictures with a high-powered microscope? This technology is indeed mature, but it's extremely complex. This isn't like building Lego. There are tens of millions of transistors, and the resulting images are massive. Copying them would be a huge undertaking, costing a fortune! Moreover, even if you manage to copy the structure, it only proves the technological direction. The instruction set is hidden in the microcode, and without compiler support, the semantics cannot be parsed!"

Chen Xuebing smiled but offered no explanation.

He asked Lin Bin about his intentions.

Lin Bin only brought up physical reverse engineering after he introduced ARM's technical team, and he also mentioned acquiring those startup EDA companies.

Lin Bin believes that if you cultivate your own architecture R&D team and participate in reverse engineering, you can understand the format of some functional instructions. With the help of EDA technicians to crack the modules, you can discover some fatal errors early and silently accumulate a lot of correct design experience.

If you're trying to copy someone else's microarchitecture, this method is useless. However, it's an excellent way to cultivate your own technical team without being noticed.

In addition, China's current GPU design capabilities are almost zero. However, based on this approach, we can gain some key strategic insights, such as architectural roadmaps and module ordering. With further technological contact with the United States, we might be able to find our own path.

Even if we take a step back and assume that ARM will eventually release reference GPU designs, even if you don't fully understand them yourself, you'll at least have some experience before working with the reference designs, and you'll eventually accumulate technical expertise.

By taking multiple approaches, there is a way to advance and a way to retreat.

What if we actually come up with something of our own?

"President Wu, I think you've already figured out some things about GPU computing, which is why I brought this up with you. I believe GPUs will have a wider range of applications. If Spreadtrum doesn't want to invest money, then we can contribute personnel and take a share of the technology. I can provide the money. You don't need to worry about anything else; I've already thought it through. Just show your support."

Since acquiring a stake in Spreadtrum Communications, Chen Xuebing has not displayed such a strong stance for a long time.

"Um okay."

Wu Ping's attitude towards Chen Xuebing was "timid, but not completely timid," but when Chen Xuebing got serious, he could only remove the first four words.

Chen Xuebing didn't want him to be convinced in name only, so he added, "GPU's parallel computing capabilities in analyzing user behavior data, if applied to e-commerce and consumer applications, will allow us to grasp user behavior habits through massive amounts of fragmented data and intelligently push content that users like. This will be disruptive to competition in the internet industry, and may even give us control over the lifeline of the internet. In the future, every internet company will need GPU computing power. Think about how big the market is."

"This is one of the top services offered to top companies."

Chen Xuebing's two sentences made Wu Ping suddenly realize the truth.

Lu Weibing also made a connection to something.

I thought the chairman controlled the application services through the system, self-development, and investment, but it turns out the chairman is already on the fourth level.

"Long March Capital should really step up its game this year."

Chen Xuebing then said to Kan Zhidong, "Bull markets always have an end, but finance never sleeps. It's time to transform into a financial group. We already have the most difficult license, trust, as well as securities, banking, and insurance. You need to have some ideas."

Kan Zhidong laughed heartily upon hearing this: "The rural banking sector started to liberalize its policies last year, encouraging private entrepreneurs to establish village and township banks, with the minimum registered capital reduced to 300 million yuan, and 100 million yuan for impoverished counties! I've wanted to invest in a batch of banks for a long time, but you're not leaving any money for Changzheng!"

Chen Xuebing shook his head: "I'm not talking about regional banks, I'm talking about national banks. If you find a good project, I'll reserve funds for you."

"A national bank?" Kan Zhidong's eyes turned cold. "A single private enterprise can't hold more than 5% of a national bank's shares, and only with special approval can it reach 10%! What's the point of financial investment? It's better to go into insurance! Give me a billion yuan, and I'll start an insurance company!"

Seeing his expression, Chen Xuebing didn't waste any more words and directly pointed out the direction:

“Minsheng, China Merchants, and Xingye are the breakthrough points. Their shareholdings are dispersed. If we can get 5%-10% of the shares, we can get a seat on the board of directors.”

Kan Zhidong frowned: "A board seat? You want to engage in related-party loans? Our financing is very easy, there's no need for this, is there?"

“It’s about having a voice.” Chen Xuebing tapped his finger on the table. “It’s about having a voice in industry credit policies and interest rate pricing.”

Upon hearing this, Kan Zhidong, Cai Zhijian, and Wu Jiesi's expressions all changed.

Brother, what do you need this for?
"There's also data. We need to keep track of the industry distribution of corporate deposits/loans, fluctuations in non-performing loan ratios, regional risk warnings, and other data in real time. We also need to be informed of regulatory guidance in advance and legally access credit information on enterprises. These things are the hidden privileges of bank directors."

"Changzheng's next step is to expand its information acquisition capabilities and enhance its industry influence. As a shareholder of a national bank, this is our way of increasing our holdings."

"So, we can put insurance aside for now; we're going to become a securities firm."

"We select and understand high-quality companies through extensive information channels, help them go public, and each company that goes public becomes a success. We aim to build Changzheng into a top-tier securities firm. Changzheng only selects good companies, and Changzheng's choices are choices that investors can trust."

"From now on, we won't be buying stocks anymore; we'll be issuing stocks, issuing good stocks, to change the perception among stock market investors that 'listing is a money-grabbing scheme.' At least the companies we select through the Long March aren't like that."

"His-"

Wu Jiesi's eyes lit up as she recalled what Chen Xuebing had said.

"We need to encourage a large number of high-quality emerging companies to support and lead the bull market, making the stock market a true financial reservoir."

With a fairly good memory, he remembered Chen Xuebing's words vividly.

"President Chen, I remember you said you wanted to build a listed group of companies," Wu Jiesi said with a burning gaze.

Chen Xuebing nodded and chuckled.

"If we can pick good stocks in the stock market, can't we pick good targets among companies preparing for listing?"

For him, this was simply another way to utilize the knowledge points gained from rebirth.

Using these knowledge points to run a fund will only gain the trust of a limited group of investors.

Using it as a brokerage firm would allow it to gain the trust of all stock market investors.

When that day came, they waved the flag.
Dry!
(End of this chapter)