Chapter 111: Xiaomi Treasure (5k)

As technology advances, its development is unpredictable even by its inventors.

When Huang first founded Nvidia, he simply felt that this was the eve of the explosion of personal PCs. Compared with big companies like Intel, IBM, and Texas Instruments, it would be difficult for a new company in the semiconductor field to compete head-on with them. Therefore, they initially just wanted to solve problems that general-purpose computers could not solve.

That is the later graphics processor. No one would have thought that thirty years later, the graphics processor would develop into a powerful tool for entering the AI ​​era. It would be highly linked to geopolitics and raised to the highest level of security by America.

When Chen Yuanguang started his business, he chose the aerospace field because he had the insight that entrepreneurship in this field could achieve breakthroughs in all aspects, and that breakthroughs were the natural result of a systematic engineering advancement process.

This point is implied in Lin Jia’s answer.

Lin Qinghua's attitude towards Chen Yuanguang had long since changed from indifference at the beginning to being glad that his daughter had found the right person, who was much better than his best arrangement.

There are various problems in second-generation marriages, but starting from scratch with the first generation of wealth can avoid many problems and the emotional foundation is much more solid.

Of course, he would also be proud of himself for giving Lin Jia enough freedom. Even though he vaguely knew that she was in a relationship, he never interfered.

After listening to her, he asked earnestly, "Nannan, do you think our group's transformation is going to work?"

Lin Jia was puzzled: "Transformation?
You can't make any money by transforming.

With assets of 18 billion yuan, the annual profit is only over billion yuan. Fortunately, I have been selling off the bad land and assets since , and the debt situation is still okay, otherwise I would have not known what to do.

What I am thinking is to simply start the transformation. I have observed that in the past two years, many companies have crossed over to engage in photovoltaic business.

The photovoltaic business relies on economies of scale. After the breakthrough in perovskite batteries, the profit margin will also increase, because there is money to be made downstream, and when there is money to be made downstream, the demand side will increase. It will be profitable if you choose to enter at this time.

And according to my information, the national team will enter the market this year to launch the next round of new infrastructure based on the new generation of solar energy technology.

I think this is a very suitable time to enter the market.”

Lin Jia could tell a lot of problems just by listening: "Dad, can you please stop being so childish?

Is this another proposal from your strategic research department? The first thing you mentioned is transformation. You have made many attempts in recent years to achieve transformation. Which one has achieved good results?
I think the most profitable project in recent years is the dividends from the IP series of "Once Upon a Time in Kuala Lumpur", because other projects did not make any money at all. "

Although Lin Jia works at Guangjia Technology and Guangjia Aerospace, she also serves as an external director of their real estate company. Usually, some of the group's decisions and internal financial reports are also synchronized to her.

Therefore, Lin Jia is very familiar with the specific situation of the group. The summary report was written by the strategic research department. If their transformation strategy is effective, it will definitely be mentioned repeatedly. As a result, until the 3 summary released in March this year, the source of profits was still centered around upstream and downstream real estate related businesses.

It is obvious that there has been no results in recent years.

Lin Qinghua was a little embarrassed because he was the one who proposed the strategic transformation and he was also the one who set up the strategic research department, but his own daughter said it was worthless.

"You can't say that. The strategic research department proposed that we should shrink our strategy in 18, and they did play a role.

At that time, Evergrande’s chief economist Ren Zeping was still saying that real estate would see a retaliatory rebound.”

Ren Zeping gave a speech at the internal forum of Wealth Management and Asset Allocation Summit at the end of 17, saying: "I am worried that housing prices will rise again in 19."

He said at the Founder Securities annual strategy meeting at the end of 18: "Next year's real estate sales will be worse than the market's pessimistic expectations, but next year's real estate investment may exceed expectations."

Lin Jia sneered: "You can fool the outside media, but don't use this to fool me.

Strategic contraction is an overall decision of the company. The strategic research department is only there to stand for this overall decision. It is not a decision they make, and then you execute it.

Take Ren Zeping, who you just mentioned, for example. As the chief economist of Evergrande, he gets more than 10 million yuan from Evergrande every year, so he naturally has to stand up for Evergrande. Does he really believe that housing prices will rise in retaliation? I don't think so.

But he has to make the outside world believe it.

Similarly, do the strategic research departments really feel the need for strategic contraction? Not necessarily, they have to complete their mission.

Which of the transformation plans they later implemented was successful?

We are not even talking about replacing the main business, and we cannot even become the third profit growth point.”

Lin Qinghua was helpless: “The main reason is that we are in a state of confusion now. There is no sign of improvement in the real estate market in either the short or long term.

I am unwilling to be idle now, so I want to find a way to cash out the company's assets abroad and then live out my retirement. I have thought about this before.

Now, with the confrontation between Yuanguang and America, his role in the country is becoming more and more important. I have given up on this idea. I am afraid that when I go out, the Americans will know my true identity and arrest me to threaten you.

I'd better stay in China. This spring, they invited me to go skiing in Hokkaido, but I refused. I would rather go to Changbai Mountain.

We thought about doing photovoltaics because we thought this industry had a future and required large-scale production. We have financial and management advantages.

Plus, you are in Light Armor Aerospace, which is also a very important advantage."

Lin Jia said: "Some of what you just mentioned is correct. Guangjia Aerospace held its annual general shareholder representative meeting not long ago.

Because the investors of Guangjia Aerospace are basically local state-owned assets and some financial central enterprises, according to the information they shared, all regions plan to increase their investment in photovoltaics.

One reason is the excess profits brought by the iteration of solar cell technology, the second is the rapid penetration of new energy vehicles in the past two years, and the third is that traditional infrastructure has become difficult to drive GDP growth.

Local state-owned assets in places like Huizhou, Shenhai and Pengcheng will invest in the construction of a number of new photovoltaic power stations and roadside new energy charging stations in the name of local platforms.

This is just the Chinese market. Considering the global market, it is indeed a big piece of cake.

But the problem is that if it is cross-border, leading manufacturers such as Longi, JinkoSolar, and JA Solar started building factories last year and will be able to start production this year. These manufacturers will be able to reap the first batch of excess profits.

It will take at least two and a half years from the time you start now to the time when it officially goes into production. You will have to build a team and acquire equipment, and you will have to pay a higher price at this point in time.

Everyone knows that this is a gold mine, and the people selling shovels near the gold mine will also raise the price.

Dad, your cost will naturally be much higher than others, and when you enter the market, a large number of players will enter the market at about the same time as you. The leading manufacturers such as Longi, JA Solar, and JinkoSolar, which have eaten up the excess profits, will start to cut prices to squeeze your profit margins.

They have been in production for two and a half years, and the cost of fixed assets has long been diluted. What do you rely on to engage in a price war with them?

There was little profit at the beginning, then it turned into a loss, and we couldn't bear it anymore so we sold the business.

What the group needs now is to shrink. If you think photovoltaics have a future, you can invest in photovoltaic companies instead of doing it yourself.”

Lin Qinghua has been immersed in the business world for many years, and it’s not that he doesn’t understand this principle. It’s just that when people are in a game, they will always have desires, and desires will interfere with your judgment.

Doesn’t Boss Xu know that Evergrande has a huge hole and that doing so many businesses is just a game of pass the parcel, and that the bubble will burst sooner or later?

He definitely understands, and even if he doesn't, the people around him understand too. He is just hoping for the best.

Lin Qinghua is the same. He has been rising rapidly on the dividends of the development of the times. He has never experienced a major failure and feels that he can do anything.

Considering that Chen Yuanguang is his future son-in-law, it will be easy for him to enter the new photovoltaic industry.

Lin Jia then sighed, “Dad, in any highly competitive industry, when outsiders want to cross over, they will face exponentially increasing difficulties.

Unless Yuanguang is willing to license the perovskite technology only to you, you'd better forget it."

Lin Qinghua did not ask whether it was possible, because he knew that asking would be futile and would only highlight his current predicament.

To be precise, this is a dilemma faced by entrepreneurs in all traditional industries. Traditional business is not easy to do, and it is visibly becoming more and more difficult. They want to develop new business but don’t know which direction to start.

Lin Qinghua waved his hand: "Okay, I understand, I will think about it carefully."

Lin Jia’s cold voice echoed in the room: “Dad, you might as well consider doing investment business properly.

This time, perovskite batteries will bring a lot of opportunities to companies upstream and downstream of the photovoltaic, energy storage, electricity and other related industrial chains. Isn’t it better to make good investments? "Lin Qinghua sighed: "You know the current environment.

The secondary market is not easy to operate. In recent years, any listed company that has been speculating in stocks has basically made no profit.

We can’t beat the national team in the primary market.

Last year, there was a listed company called HuaDa JiuTian. Did you know that it made EDA design software?

Lin Jia nodded: "I have some impression."

Lin Qinghua went on to analyze: "They went public in the middle of last year. As early as 19, Shenhai Jianyuan invested 1.9 million yuan in it and became the largest shareholder of HuaDa JiuTian.

Jianyuan is an investment company, its major shareholder is the Shenhai government, and its largest investor is Bocom Schroders.

Before HuaDa JiuTian went public, BoCom Schroders transferred all of its shares in HuaDa JiuTian to Shentong Metro, which has no relationship with Shentong Express.

After all the layers of penetration, the major shareholder of Shentong Metro is also the Shenhai government. Its Shen is the Shenhai of Shenhai.

HuaDa JiuTian went public in the middle of last year. The 1.9 million yuan investment is now worth 30 to 40 billion yuan. Who do you think lost money in this deal?"

Lin Jia quickly grasped the key point: the shareholders of Bocom Schroders are composed of Bank of Communications and Schroder Investment.

Among them, Bank of Communications, Shentong Metro, and Shenhai Jianyuan are all state-owned assets.

"Schroeder, it's the only foreign company." Lin Jia said lightly.

Lin Qinghua nodded: "Foreign capital has a higher priority than private capital. It's hard to do business in the primary market now, let alone us.

There is no point in investing.

I am lacking direction right now, how about you marry Chen Yuanguang and have a child soon, and I will take care of the child for you?"

Seeing that his mother was not around, Lin Jia interrupted directly, "You should tell your illegitimate son to have offspring as soon as possible, and don't count on me."

Lin Qinghua smiled bitterly and didn't respond.

Lin Jia went on to say: “If there is no direction, we will continue to shrink, improve our financial situation, lay off employees where necessary, and reduce our scale.

Of the current 200 billion yuan in assets, 180 billion yuan are liabilities. There are actually many things that can be done to reduce the debt ratio, improve the debt structure, and reduce capital costs.

You can prepare these now and hand them over to me when the time comes, so I can save some trouble."

Lin Qinghua was surprised and said, “I always thought you were not going to return to the group.

Isn't it much more interesting to work in the light armor system?"

Lin Jia said, "I didn't care at first, but now I still care. What if I have several children in the future? I have to make a few more pieces of cake for them to share, right?"

What Lin Jia was actually thinking was that she had to prevent the illegitimate child from being born. However, she had just provoked Lin Qinghua, and she didn't want to use this to provoke the other party again.

When Lin Jia returned, all the major new energy vehicle companies were holding meetings to analyze the possible impact of Chen Yuanguang and Lei Jun joining forces to build cars.

"Lei Jun is very good at marketing, he will not miss any marketing opportunity, including this time Guangjia Technology's investment in Xiaomi Auto, which can be regarded as Xiaomi's marketing.

Chen Yuanguang himself is a hot topic. What I have just listed are the major milestone events of his companies this year that we obtained from public channels. These milestone events are highly relevant to China's industrial transformation and are likely to cause heated discussions in the public opinion.

According to the consumer survey we urgently conducted on Friday, Chinese users have a very high degree of recognition of Chen Yuanguang. With the collaboration between Chen Yuanguang and Lei Jun, some Xiaomi KOLs have begun to create a concept of cooperation between Steve Jobs and Elon Musk.

They claim that Lei Jun is Lei Jobs, and that Chen Yuanguang's achievements in scientific research and breakthroughs in the aviation field can be compared with Musk. The cooperation of China's Steve Jobs and China's Musk in building cars is very attractive to consumers.

In our consumer survey, we found that most consumers approve of this concept and feel it is appropriate, which further increases their interest in Xiaomi's car manufacturing."

The conference room at Zeekr's headquarters was filled with Zeekr executives, with the names of Chen Yuanguang and Lei Jun appearing on the screens in front of them.

Then below the name is a timeline, from 2023 to 2024, with various events arranged on the timeline:
"Chen Yuanguang - founder of Guangjia Aerospace and Guangjia Technology - major events this year - intensive launch of recyclable rockets, landing of the Huaguo compound eye project, approval of human hibernation clinical trials, large-scale application of perovskite batteries, and other uncertain factors.

Lei Jun - founder of Xiaomi."

Guan Haitao was standing on the stage and talking incessantly. He is the CMO (Chief Marketing Officer) of Honor. At this time, he has decided to join Zeekr and become the first CMO of Zeekr.

He has not officially joined the company yet, but since he is considered a senior executive in Honor, the handover process requires time.

The information about Xiaomi Motors’ first electric car has been preliminarily announced. As the first car focusing on high-end coupe, its most direct competitor is Zeekr.

They follow the same route.

Ideal and Wenjie are SUVs, Xiaopeng has both SUVs and sedans, NIO has many SUVs, coupes, and shooting brakes, but only Zeekr has only two main models, which are highly overlapping with Xiaomi.

In terms of price, Zeekr expects the two to have a high degree of overlap.

Therefore, Lin Jinwen, vice president of Zeekr and Guan Haitao's future direct leader, asked the other party to make a detailed plan and discuss how they should respond after receiving the exact news.

When Guan Haitao was the CMO of Honor, he had close ties with Xiaomi, and his experience in battling Xiaomi in the public opinion field is definitely one of the best.

As soon as he came on stage, he grasped the key points:

"Xiaomi Auto will start marketing continuously from now on. If it were just Xiaomi itself, it would have a marketing rhythm and there would be a gap period.

With Chen Yuanguang’s support, things are different. His public attention and popularity are higher than Lei Jun’s.”

Before the Xiaomi Auto launch conference, it was becoming increasingly difficult for the launch of Xiaomi phones to attract outside attention. Apart from his donation to Jiangda, Lei Jun lacked the energy to break the circle.

"Its frequency will also be higher. The combined potential of the two in the public opinion field will determine that potential consumers will put Xiaomi on their potential consideration list when buying electric cars priced between 20 and 30 yuan.

Even though Xiaomi cars have not yet been launched, we haven’t even seen the actual car yet.”

Guan Haitao went on to say: “More importantly, Lei Jun is very good at positioning. He can accurately find the right positioning for the product and, combined with the overwhelming marketing methods of Mi KOLs, input this positioning into consumers’ cognition.

The more fatal point is that we are not sure whether Chen Yuanguang has any other unpublished technologies that can be used in Xiaomi cars and become their killer feature.

The lack of transparency in information makes us passive.

Of course, we are not without advantages. Our advantage is production capacity. We have already started mass production, and we can seize the market in advance by lowering prices.

Convert Xiaomi's potential users into our users.

My solution is to take three steps. First, I will tie Xiaomi Auto and Zeekr together in terms of public opinion, and give consumers the perception that Xiaomi wants to compete with Zeekr and seize Zeekr's market.

Then comes the price reduction. For consumers with this perception, cost-effectiveness is very important to them. They pay great attention to parameters. Our store sales emphasize parameters when promoting our products, and the prices of electric vehicles with the same parameters are much higher than ours.

Finally, we will wait for Xiaomi’s new car to be launched, then we will set a price for them and then lower the price even further, leaving them with no market.”

It is not uncommon for executives from mobile phone manufacturers to join new energy vehicle companies as CMOs. After all, many new energy vehicle companies are backed by traditional car companies and have never experienced the intensity of the mobile phone industry in terms of marketing.

Twenty years ago, Wang Linhuali, an executive at Apple Greater China, joined Avita as CMO.

For Zeekr, Guan Haitao is a treasure for Xiaomi, which is an unexpected surprise.

　First chapter today, one more chapter to go!
　　It’s not too much to vote for the previous month, right?

　　
　
(End of this chapter)