Becoming the King of Bottom Fishing After Going All-In on A-Shares

Chapter 127 Investing in JD.com

Liu Qiangdong nodded, memorized the name "Lu Chenzhou," and turned to walk into the elevator.

He walked out of the CICC building, stood by the roadside, opened the car door, and got in.

He didn't start the car immediately, but sat in the driver's seat, his hands on the steering wheel, staring at the hazy sky outside the windshield.

He wondered, how could a twenty-year-old student possibly come up with tens of millions of US dollars?

He wondered, if this student also refused, who else could he turn to?

He also wondered how he would face his brothers who had followed him for almost ten years and staked their youth on JD.com if it really collapsed.

He took a deep breath and started the car.

He parked the car downstairs at the Cultural Building. He looked up at the eighteenth floor, then pushed open the door and went inside.

The elevator went up to the eighteenth floor.

The door opened, and Zhao Keke stood next to the front desk.

She was taken aback when she saw Liu Qiangdong. She recognized him; he was an alumnus of Renmin University and the founder of JD.com.

But the Liu Qiangdong in front of her was not quite the same as she remembered.

In her memory, Liu Qiangdong was a spirited man who spoke loudly and with a determined look in his eyes when giving a speech on stage.

But the person in front of me had dark circles under his eyes, a tuft of white hair at his temples, and a wrinkled collar, as if he hadn't changed his clothes in days.

"Hello, who are you looking for?"

"Lu Chenzhou. I am Liu Qiangdong, an alumnus of Renmin University."

Lu Chenzhou was looking at his computer in his office when there was a knock on the door.

Wen Zhiyu pushed open the door and came in: "President Lu, someone is looking for you. He says he's an alumnus named Liu Qiangdong."

Lu Chenzhou's finger paused on the mouse for a moment. Alumnus, Liu Qiangdong.

Of course he knows this person.

Having been reborn, how could I not know?

In 2008, during the financial crisis, JD.com's cash flow dried up. Liu Qiangdong met with more than forty investors, but none of them invested. His hair turned white, he lost weight, and he drank a bottle of wine alone in a coffee shop.

He had read about these things countless times in his previous life.

Now, this person is coming to find him?

Lu Chenzhou leaned back in his chair and remained silent for two seconds.

"Please ask him to come over."

Wen Zhiyu turned and left, while Lu Chenzhou remained seated in his chair.

Footsteps came from outside the door. Lu Chenzhou stood up and straightened his collar.

The door opened, and Liu Qiangdong walked in.

He was wearing a dark jacket with a slightly wrinkled collar, dark circles under his eyes, and a tuft of white hair at his temples.

Not the spirited figure in the photos, but the real one, bent over by the weight of life.

Lu Chenzhou looked at him, and something stirred in his heart.

He had seen photos of this person in his past life: ringing the bell at the company's IPO, full of vigor, with his wife drinking milk tea.

But the person standing in front of him now had white hair, was thin, and had a wrinkled collar, like someone who had walked a very long, dark road and had not yet seen the light.

"Hello, senior."

"President Lu."

Lu Chenzhou gestured for him to sit down, and Liu Qiangdong sat down.

"JD.com needs money," he said.

"How many?"

"The more the better."

"Who did you contact?"

"Thirty-seven firms: Sequoia Capital, Hillhouse Capital, IDG Capital, CICC, CDH Investments. We've contacted everyone we could."

"What did they say?"

"We'll come back when we're profitable."

Lu Chenzhou looked at him. "Where's Xu Xin? Didn't Capital Today already invest in your Series A round?"

"She's already capped her budget. She invested 10 million in the Series A round, and this time she can only participate in the Series B round at most."

Lu Chenzhou leaned back in his chair and remained silent for a while: "Your model is correct. Building your own logistics is a capital-intensive approach, and you won't see profits in the short term, but the barriers to entry are high. The reason you're short of money now is because you're doing what others are unwilling to do."

I'm willing to invest. Why don't you contact Ms. Xu and see when she's free so we can chat?

Xu Xin of Capital Today led JD.com's Series A funding round and has priority investment rights. Anyone who wants to invest later must get her approval, which is why Lu Chenzhou made this suggestion.

Liu Qiangdong, who was about to submit his business plan, paused for a moment.

He thought he had misheard.

Thirty-seven investment institutions, thirty-seven "no"s.

Some didn't even open the business plan, some interrupted him after the opening remarks, some said "come back when you're profitable," and some threw the plan into the trash can right in front of him.

He picked it out of the trash can, wiped the coffee stains off the cover, put it in his bag, said thank you, and left.

No one ever says, "Let's talk about this."

"What did you say?" Liu Qiangdong's voice was a little tense.

"I said I'd invest. But Capital Today is the lead investor in the Series A round and has priority investment rights. You should contact Ms. Xu and see when she's free so we can sit down and talk."

Liu Qiangdong stared at him for a few seconds.

His lips moved as if he wanted to say something, but nothing came out.

He clenched his hands on his knees, then loosened them, then clenched them again.

Thirty-seven times, thirty-seven times rejected. Each time, he smiled and said "thank you," walked out the door, got into his car, and sat alone for a long time.

Sometimes I smoke a cigarette, sometimes I don't, I just sit there.

He no longer believed anyone would vote.

It's not that I don't trust JD.com, it's that I don't believe anyone would invest money at this time.

"Are you sure?" he asked, his voice trembling slightly.

"Sure."

Liu Qiangdong looked at him; his eyes were bloodshot, but his expression had changed.

It wasn't excitement, it wasn't gratitude, it was something more complex.

It's like someone walking a very long, dark road for months, until the soles of their feet are worn out, and suddenly they see a light ahead.

He wasn't sure if it was a real light, or if it was just his imagination.

But he wanted to go over and take a look.

He stood up, stretched out his hand, which was trembling.

Lu Chenzhou shook hands.

"I contacted Xu Xin immediately." Liu Qiangdong's voice was a little choked up.

He turned and walked away, stopped at the door, and didn't look back.

"Thanks."

The two words stuck in my throat.

He pushed open the door and went out.

Liu Qiangdong walked out of the Cultural Building, opened the car door, and got in.

He didn't start the car immediately. Instead, he sat in the driver's seat, took his phone out of his pocket, and found Xu Xin's number.

His finger hovered above the screen for a few seconds.

Xu Xin, founder of Capital Today and the sole investor in JD.com's Series A round, is also the only investor he has met in the past two years who believed in him before he even spoke.

In 2007, when they first met, JD.com was still called "JD Multimedia" and was selling CDs in Zhongguancun.

He told Xu Xin that he wanted to build his own logistics system. She asked how much it would cost, and he said two million US dollars.

She said no, it was too little, and she gave him fifteen million.

It wasn't because JD.com's financial reports looked good, but because she believed this person could succeed.

Now, he wants to use this number to tell Xu Xin: someone is willing to invest in the Series B round, not waiting until it's profitable, but investing now.

He pressed the call button.

The phone rang three times before being answered.

"Qiangdong?"

Xu Xin's voice came through the receiver, sounding somewhat tired.

Since the financial crisis, the companies she invested in have been asking her for money, and she's been having a tough time.

"Mr. Xu." Liu Qiangdong's voice was a little hoarse.

"What happened? What did CICC say?"

"It didn't work out."

There was a moment of silence on the other end of the phone. Xu Xin didn't say, "I already knew," nor did he say, "It's okay." He just remained silent for a moment.

"But some people are willing to vote."

Xu Xin was stunned for a moment, then blurted out, "Who?"

"Lu Chenzhou, that student from Renmin University who trades stocks, was introduced by Li Zheng. Recently, everyone in the financial circle has been talking about him. He grew his wealth from 10,000 to several billion, and he just acquired a stake in Galaxy Entertainment, becoming its second-largest shareholder."

There was silence on the other end of the phone.

This time the silence lasted even longer.

"How much did he bet?" Xu Xin asked.

"He didn't mention it, he just said he was willing to invest. He said that since you were the lead investor in the Series A round, you had priority investment rights, and asked me to set a time for everyone to sit down and talk."

There was silence on the other end of the phone.

long time.

It went on for so long that Liu Qiangdong thought the signal had been lost.

Then Xu Xin spoke, his voice much lower than before, but every word was very clear.

"Where are you? I'm coming right away."

"Lu Chenzhou's office is on the 18th floor of the Cultural Building."

"I understand. I'll be there in an hour, no, in half an hour."

The phone hangs up.

Liu Qiangdong placed his phone on the passenger seat, gripped the steering wheel with both hands, and stared at the hazy sky outside the windshield.

He recalled the first time he met Xu Xin. At that time, JD.com was still in Zhongguancun, with a warehouse of only a few hundred square meters and fewer than fifty employees.

He stood in front of the projection screen presenting his PowerPoint slides, his palms sweaty.

Xu Xin sat below, not saying a word or looking at his phone from beginning to end, just listening.

After she finished speaking, she said, "Your model is too expensive. Two million isn't enough. I'll give you fifteen million."

That was the first time he felt that someone understood what he was going to do.

Now, some people understand it.

It wasn't because he presented the PPT countless times, nor because he collected a lot of data; it was because that person said, "Your approach is correct."

Liu Qiangdong took a deep breath, got out of his car, and stood at the bottom of the steps waiting for her.

The November wind was cold, so he hunched his shoulders and turned up the collar of his jacket.

Less than twenty minutes later, a car sped over and stopped next to Liu Qiangdong.

Xu Xin pushed open the car door, wearing a dark gray suit and with short hair.

She walked over, glanced at Liu Qiangdong, and didn't speak immediately.

The two people stood at the entrance of the Cultural Building, neither of them moving.

After a while, Xu Xin spoke.

You've lost weight.

Liu Qiangdong did not respond.

"My hair has turned white too."

"Um."

"How many companies did you visit?"

Thirty-eight.

Xu Xin paused for a moment: "Nobody's going to vote?"

"Only Lu Chenzhou said he wanted to talk."

Xu Xin looked up at the building.

"Is he up there?"

"The eighteenth floor."

"Let's go."

The two people walked into the building one after the other.

There were only the two of them in the elevator. Xu Xin pressed 18, and the elevator doors closed.

Liu Qiangdong leaned against the elevator wall, staring at the floor numbers as they jumped up.

Xu Xin, standing beside him, suddenly asked, "What did he say to you?"

Liu Qiangdong was taken aback: "Who?"

Lu Chenzhou.

Liu Qiangdong remained silent for two seconds.

He said, "Your approach is correct."

Xu Xin remained silent.

The elevator reached the eighteenth floor and the doors opened.

Zhao Keke stood next to the reception desk and saw Liu Qiangdong and Xu Xin come out of the elevator together. She was stunned for a moment, then quickly stood up and said, "Mr. Liu."

"Is Lu Chenzhou there?"

"Yes, Mr. Lu has been waiting for you."

Wen Zhiyu led them to the door of the general manager's office and knocked on the door.

"Mr. Lu, Mr. Liu has arrived, along with a friend."

"Please come in."

Xu Xin pushed the door open and entered, and Lu Chenzhou stood up from his chair.

"Mr. Xu."

"President Lu."

Xu Xin didn't exchange pleasantries and sat down directly opposite Liu Qiangdong, who sat next to her.

"Mr. Lu, what's your opinion on the Series B valuation?"

Lu Chenzhou looked at the decisive and efficient CEO Xu opposite him and said, "Sixty million US dollars after the investment, the same as the Series A round."

Xu Xin was a little surprised: "During the financial crisis, all companies' valuations are being cut. JD.com's valuation was reduced from 200 million to 60 million. Aren't you going to cut yours?"

"If you don't cut it, cutting it any further is disrespectful to the facts."

Xu Xin stared at him for two seconds, then smiled.

"You're an interesting person."

She turned to look at Liu Qiangdong. "How much are you planning to raise in the Series B round?"

"The more the better."

Xu Xin nodded and turned back to look at Lu Chenzhou.

"Today Capital invested eight million, I invested ten million in the Series A round, and another eight million in the Series B round."

Lu Chenzhou: "Zhizhou will contribute 15 million. The total is 23 million, with Zhizhou holding 25% and Today Capital holding 13.3%."

Xu Xin stared at him for a long while: "You're offering fifteen million?"

"Yes, 1500 million."

"Aren't you afraid of losing money?" Xu Xin asked.

"I'm scared," Lu Chenzhou said. "But President Liu is even more scared than I am; his hair has turned white."

Xu Xin glanced at Liu Qiangdong; that tuft of white hair was particularly glaring under the light.

Xu Xin didn't say anything more, stood up, and extended his hand.

"Mr. Lu, it's a pleasure doing business with you."

Lu Chenzhou shook hands.

After signing the contract, Xu Xin turned around and looked at Liu Qiangdong.

"The Series B funding is secured."

Liu Qiangdong nodded: "Thank you, Mr. Xu, thank you, Mr. Lu."

Xu Xin nodded, turned and left.

After the elevator doors closed, Xu Xin leaned against the elevator wall and closed his eyes.

Five bridge loans were taken out, and each time Liu Qiangdong called to say, "Mr. Xu, give me a little more time."

Every time she said "okay," it wasn't because she wanted to give it, but because she had no other choice.

But now, she doesn't want to follow anymore.

JD.com needs to build its own logistics network, which requires a massive amount of capital—not just tens of millions of US dollars, but hundreds of millions or even billions.

Capital Today's portfolio is only so big; it can't put all its money on JD.com alone.

Liu Qiangdong watched Xu Xin leave, then turned to Lu Chenzhou: "Mr. Lu, what about the money?"

Lu Chenzhou smiled and said, "I'll have the finance department transfer the money immediately."

4 PM, Yinfeng Building, JD.com office.

Liu Qiangdong pushed open the door and entered, where his assistant, Miao Xiaohong, greeted him.

"Mr. Liu, how is it?"

Liu Qiangdong didn't say anything, walked into the office, and closed the door.

He sat down in the chair, took out his phone, and scrolled to the bank message.

$1500 million has arrived.

He stared at the screen for a long time, then put down his phone, leaned back in his chair, and closed his eyes.

He recalled that afternoon when the young man said, "Your model is correct."

Of the thirty-eight investors, only one said, "Your model is correct."

He opened his eyes, looked at the gray sky outside the window, picked up his phone, and sent a message to Lu Chenzhou: "Received the money, thank you."

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