Chapter 269 Unrealistic Ideas

"Lao Lin, I've recently become fascinated with fly fishing. Have you ever thought about going fly fishing with me?" Chen Qianzhi asked.

This year's Spring Festival was also the first Spring Festival after Lin Jia and Chen Yuanguang got married, so the two families gathered together to celebrate.

Although it is not in Hangzhou or Guangzhou, the atmosphere is pretty good.

In the social occasions that Chen Qianzhi was in, the atmosphere was generally quite good. A person who was good at eating, drinking and having fun could always accurately find topics that everyone was interested in, making the whole occasion less awkward.

However, Lin Jia would like to come to Mianyang to celebrate the New Year, so that Lin Qinghua would not have any excuse to meet his lover and illegitimate child.

In her opinion, any trouble she can cause is better.

After hearing this, Lin Qinghua showed an envious look, "I'm not as free as you, brother. I still have a lot of things to do.

The entire enterprise faces enormous pressure to transform and upgrade.

Traditional real estate business is still the main source of profit, but we can't always rely on it.

I want to transform into a high-tech industry, but I don’t know where to go.”

Lin Qinghua did envy Chen Qingzhi. Besides, for Chen Qingzhi, the only thing he could do was that his ex-wife and current wife could sit at the same table to eat.

He was sure that once he divorced Lin's mother, they would never have any contact with each other again.

"You have to learn to let go. You are already in your fifties, and you should hand over the power you should. If you continue to think about transformation and upgrading at this age, the pressure will be enormous.

Isn't Lin Jia quite good? This kind of enterprise transformation and upgrading should be left to young people. "Chen Qingzhi said puzzledly.

"Hey, Dad Chen, don't tell me, my dad just can't sit still, and if I go back to work at my company, the first thing I'll do is definitely fire everyone I don't like.

I am a stubborn person and I cannot tolerate any grain of sand in my eyes. "Lin Jia said after hearing this as he and Chen Yuanguang walked back to the living room from the balcony.

Chen Yuanguang obviously knew what was going on. He could only smile and remain silent, wondering how embarrassed his father-in-law would be.

"If you are willing to go back to your family company, you can fire anyone you want.

I fully support you." Lin Qinghua continued.

For him, this was a last resort. Now, relying on the relationship between Lin Jia and Chen Yuanguang, he could get some good land at a relatively low price in Shenhai or the Yangtze River Delta.

Including the headquarters of Guangjia Aerospace in Shenhaijian was handed over to the Lin family's company.

But these businesses are not long-term solutions.

Just because they can receive it now doesn’t mean they can receive it in the future. It all depends on Lin Jia’s willingness.

Lin Qinghua didn't think that after his illegitimate son took over in the future, their company would still be able to receive such preferential treatment from Lin Jia.

Therefore, Lin Qinghua has always hoped to transform now, at least from relying entirely on the real estate industry to walking on two legs.

Some relatively high-end manufacturing industries are his chosen targets. In his opinion, manufacturing is certainly cross-border, but there are technical licenses from optical armor companies and a large number of partners.

It is relatively easy for them to make a similar transformation, at least they are better equipped for success than many A-share companies that have transformed themselves into photovoltaic companies.

At the peak in 2022, at least 80 A-share companies announced their entry into the photovoltaic industry, covering multiple fields such as energy, liquor, real estate, and home appliances.

They invested huge amounts of money to enter this field, and then left in dismal failure after playing for a few years.

Very few succeed in turning a profit.

Lin Qinghua had studied it carefully before and he thought there was a way out. At least it was much better than sticking to a sunset industry like real estate.

Lin Jia could smell that driverless cars would lead to further collapse of the real estate market, and Lin Qinghua could naturally smell it as well.

The most important price measurement factor for real estate will gradually collapse due to the existence of driverless cars, just like school districts will collapse due to slowing population growth.

Lin Qinghua has always wanted to transform, but he doesn't know where to transform.

"Forget it, there's no need. I'm already tired enough. I can't throw away any of the work I have on hand." Lin Jia waved his hand and didn't respond.

"Besides, you have been investing in a lot of commercial aerospace companies in the past few years. Isn't the rate of return good?

I've seen the projects you invested in, and three of them were successfully listed on the Science and Technology Innovation Board and the Main Board. You invested in 20 companies and only got three listed, so it's impossible to lose money, right?" Lin Jia said.

It was also her idea to help come up with the investment options. They would not invest in all the upstream and downstream companies of Guangjia Aerospace, but only in the most core ones.

This does not mean that those non-core ones have no value. They are equally valuable, at least they are much more reliable than the projects on the market.

Therefore, Lin Jia invested in the Lin family's private equity investment company in his personal name, which was equivalent to investing in information.

Tell you which ones have high value and prospects.

For Lin Qinghua, this still depends on Lin Jia. He hopes to be able to blaze a trail that does not require reliance on Lin Jia.

"It is too difficult to transform at this point in time. The hottest industries in recent years are photovoltaics, semiconductors, commercial aerospace and new energy, and many companies are rushing in to grab a piece of the pie.

I think Lin Jia’s opinion is correct. Instead of doing it yourself, it is better to invest and let professionals do professional things.

I can clearly feel that the companies that have been able to make money in these fields in recent years have very mature and professional executive teams.

It would be a bad idea to rush into this field.

Dad Lin, I think it is more reliable to cut off all unnecessary businesses and then rely on investment rather than enter these industries. ” Chen Yuanguang concluded.

These hottest industries in recent years are almost all related to Chen Yuanguang in some way.

It is no exaggeration to say that Chen Yuanguang directly contributed to the rapid development of these industries.

The only thing that is not so relevant is new energy.

After Chen Yuanguang finished speaking, Lin Qinghua repeatedly said, “I have been struggling with this too.

Mainly because companies like Baidu are frequently crossing borders and facing technological innovation, the search engine that was once so stable could not even last half a year, and both revenue and profit fell. "

The impact of Hornbill AI on Baidu is far more than just eating half of the cake.

Because Baidu originally monopolized this market and had complete control over pricing, your advertising fees were charged at a premium.

Now Tencent has also entered this market and has taken away half of the market share. If you want to retain those customers, you not only have to give them no premium, but also have to give them discounts. As a result, Baidu's search engine business revenue has fallen more significantly than its market share.

"Baidu has been looking for new profit growth points. Many of my old friends are also trying to do so, so I have always felt that we should try to do so.

But Yuanguang has said so, so I believe him." Lin Qinghua said.

The A-share companies mentioned above are involved in the photovoltaic industry, and many of them are Zhejiang businessmen.

“I just think the risk is too high. Take the photovoltaic industry as an example. The investment is huge.

It is expected that perovskite battery technology will be updated again in the first half of this year, and the first-tier photovoltaic giants will have to build new production lines to seek profits.

The originally leading perovskite battery 2.0 will evolve to 3.0 this year, which means that the 2.0 technology is no longer leading. The companies that have invested heavily in the production of 2.0 perovskite batteries and tried to make back excess profits through it have suddenly failed.

For leading companies such as JinkoSolar, Longi Green Energy, and Tongwei Co., Ltd., they have followed the development of perovskite battery technology from the very beginning, and the depreciation of equipment for production lines like 2.0 is almost completed.

What remains is all profit, but some companies that entered the market two years ago only started production last year, and their technology is outdated this year, so their profits will be swallowed up.

High-tech is not that easy to do. It has very high requirements for the team, technical acumen, technology itself, etc. "said Chen Yuanguang.

This is his true feeling. China's enterprises in the materials field have made rapid progress in recent years.

Like the failed launch of Guangjia Aerospace's Pioneer 2, if current companies were to provide the raw materials, the explosion would definitely not have occurred.

Lin Jia added: "Yes, I am an external director of JinkoSolar. When I go to meetings, I can clearly feel that photovoltaics is slowly starting to have the flavor of semiconductors in 2000."

JinkoSolar gave Guangjia Aerospace a big piece of the pie when it made a private placement, but Guangjia Aerospace only took a small part, which was only 20 million shares.

As for the 20 million shares, JinkoSolar insisted that Guangjia Aerospace send an external director, saying that they were all Shenhai enterprises and needed more contact.

JinkoSolar's approach is very wise. It is just like TSMC wanting to have a good relationship with AMSL. You have to please the upstream technology developers.

What's more, Light Armor Aerospace is not just the role of ASML, it is more like a technological complex.

Because if ASML does not sell equipment to TSMC, they will starve to death, and if Guangjia Aerospace does not sell technology to photovoltaic companies, they still have commercial aerospace to provide cash flow.

"In recent years, the cutting-edge perovskite battery technology has basically changed every two years. If you keep up, you can reap excess profits, be profitable, and make a lot of money.

Because the production line has completed depreciation early and the yield rate has been improved to a very mature level, after the new technology comes out, the old production line is making pure profit.

Whoever uses new technology to increase the yield rate and reduce the failure rate first will be able to get a bigger piece of the pie.

You always want to enter the photovoltaic industry. Is this something you can do?

Uncle Xu and his colleagues viewed cross-border photovoltaics as a lifeline to reverse their business situation. They first invested 2 million yuan to build a production line. In the first year, they had a revenue of 500 million yuan and suffered a loss of million yuan.

In the second year, the revenue was more than 1 million yuan, and then the second phase was invested again, with 1 million yuan. In the third year, the revenue did not increase but decreased by 20 percentage points. Finally, they admitted defeat and left the market, and sold the package for 3800 million yuan.

3 million went in and 3800 million came out, not counting their losses, the loss rate was at least 90%.

If you do it, you will end up in the same situation. Don’t always focus on successful companies.”

Similar cases are not uncommon in Myanmar.

Therefore, in China, if a certain industry makes money, a large number of companies will flock in.

Photovoltaics is a typical example. After Chinese companies almost monopolized the global market, everyone started to get involved, and no one made any profit.

Because of Chen Yuanguang, China's photovoltaic industry has also seen a similar situation with the support of perovskite batteries.

At the beginning, everyone could enjoy the premium, and the yield rate increased from 3 points to 7 points, 8 points or even higher.

As a result, a group of companies flocked into this field, production became higher and higher, prices became lower and lower, and everyone's rate of return returned to 3 points.

There are not even 3 points, because they have to pay patent licensing fees to Guangjia Aerospace, there are not even 3 points.

There is no difference between industrial upgrading and not upgrading.

Previously, American had been hoping that Swiss photovoltaic giant Meyer Burger would move to their country, and expressed its willingness to provide huge subsidies. In 2023, the United States launched a total package of $3690 billion in new energy technology subsidies.

Meyer Burger and American were flirting with each other, aiming at this vulnerable group, trying to get a big bite of blood back through the Americans. Their Chinese counterparts were really ruthless.

Later, China's perovskite batteries emerged. Not only is the technology more advanced, but the price is also getting lower and lower.

Meyer Burger was so angry that he wanted to vomit blood. Calculated based on power consumption, China's perovskite batteries would be cheaper than theirs even if they were assembled in Vietnam, then resold through Mexico, and then entered America.

This is called a steamed crab, similar to how crabs put into Yangcheng Lake in autumn and are called Yangcheng Lake hairy crabs. My products are assembled in Vietnam and then steamed in Mexico. No one can say that it is made in China!

This is the reality, but Meyer Burger cannot accept it.

Therefore, the negotiation price between Meyer Burger and American is getting higher and higher. At first, they wanted 200 billion, and later they said that they needed 500 billion US dollars to have a hope of competing with Chinese companies.

There is still only hope.

In short, not only are Chinese companies suffering from severe internal competition, but many are unable to hold on and are leaving the market with huge losses. Their foreign counterparts are also being squeezed to a point where they are worse off than death.

Lin Qinghua sighed: "It's not easy for Old Xu either. It's just that the probability of failure is too high that I haven't dared to make this decision yet.

I chose several directions, such as photovoltaics, ultra-efficient photovoltaic cells, and new energy. I first found a sales channel, then acquired the qualifications to build cars, and then built cars and sold them to enterprises. "

Lin Qinghua is targeting asset-heavy manufacturing industries.

Lin Jia complained: "Come on, it's super efficient, I think it's almost super funny.

You and Uncle Xu are about the same level. He has a higher education than you and used to work in fiber materials. It's even more inappropriate for you to cross over into real estate.

Secondly, making cars is even more outrageous. I am making a car now, and it is really not that easy. Although electrification has reduced the difficulty of making cars, it is still a super complex project in essence.

Dad, if you build cars, you will be the next Jia, running to America to advocate ecological revolution. Jia is at least a triple ecological revolution, and you are at most one, because you have only worked in real estate. "

Lin Qinghua explained: “No, I plan to build cars specifically for driverless cars, and not sell them to individual users, but to driverless companies.

I discussed this with Jack Ma and Mr. Zhu of Leapmotor at the Zhejiang Chamber of Commerce, and we all thought it was a promising idea.”

(End of this chapter)