I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 381 063-064: How do you play after going public? (5000 words today)
After Phoenix TV released the news of Gao Huaijun's interview, it indeed caused quite a lot of heated discussion.

As a media located in a free port, Phoenix TV's overall strength is not as good as TVB, but as a TV station with Mandarin anchors, coupled with its trendy and bold speech, it is loved by many middle-class and above people.

Therefore, after the show was broadcast on Phoenix TV, the spread of its influence was not slow.

Hillhouse Capital was already very popular before, but it was only a small hit.

Since the brand was established only a short time ago, China's core consumer group is still those born in the 60s and 70s, so this group of people's trust in foreign brands is much higher than that of Hillhouse.

In this group, the idea that Chinese products are not good is ingrained in their minds.

It is hard to imagine and you totally don't understand the IQ of those people who can't get enough food and have to bring their own food.

However, this group of people was still very popular in 2014.

Of course, it is also related to the product situation of domestic companies at that time.

In 2014, domestic companies basically did not engage in any technological innovation, and most of them were still following the steps of foreign brands.

There is a Google abroad, so let’s have Baidu.

There is Facebook abroad, so let’s also have a campus network.

There is Twitter abroad, so let’s have Weibo.

It can be said that we are following in the footsteps of foreign countries.

As for innovation?

nonexistent!

As for guiding the development of the world, it is something that is led by the West.

What does it have to do with China, a poor and backward country?

All China needs to do is follow the West and eat the leftovers, right?

As a certain president once said: If all Chinese people live like the American people, people will be in a miserable situation.

To most people in 2014, this seems to make some sense, doesn't it?

But now that Gao Huaijun proposed the concepts of 'Internet of Everything' and 'ALL IN AI', China's mainstream consumer groups suddenly discovered.

It turns out that China's technology companies can actually lead the trend.

That's really unheard of!
The coverage of Hillhouse by domestic self-media can be described as overwhelming.

Many self-media outlets have written short articles to comment on what Gao Huaijun’s so-called ‘Internet of Everything’ and ‘ALL IN AI’ are!
For a while, people who knew nothing about it could casually comment on what the "Internet of Everything" and "Artificial Intelligence" were.

The concept of the Internet of Everything ranks ninth on Weibo's hot search list.

The concept of artificial intelligence is even more popular, ranking fifth on Weibo's hot search list!
Even though Hillhouse Capital did not buy any hot searches, two of them came on the list.

I can only say it’s really awesome!
Compared with later generations, these two concepts were at least five years ahead of their time!

You know, in the explosive year of 2024, the entire technology industry is 'ALL IN AI'.

ChatGPT, Sora, Zhongwei Cloud Pangu Model, etc. are all products of this concept.

On the road from weak artificial intelligence to strong artificial intelligence, countless wonderful products will be produced, and these are just a small part of them.

Now that Gao Huaijun has accumulated a certain amount of experience in this field, he naturally hopes to guide the explosion of this concept.

This was also the first time that he, as a little butterfly, tried to carry out corresponding directional blasting in a specific area.

"If this AI is realized, it will be really awesome. Everything can be unmanned, but... what can I do?"

"Yes! It's hard to imagine that this third technological revolution will come in this way. There will be no need for humans, right?"

"Not only do you no longer need people, but even the very foundation of your survival has been destroyed."

"Just like cars replaced horse-drawn carriages and horse-drawn carriage drivers lost their jobs, artificial intelligence will only eliminate those simple, repetitive, low-key and boring jobs. So don't always think about lying down and being a clerk. Working hard is the hard truth."

"Yes! It's meaningless to be self-defeating and full of fear about all advanced things. We need to have a good attitude and welcome the arrival of this new era!"

Due to the extremely large amount of exposure, although Gao Huaijun is not in China these two days, his influence is constantly increasing both in the country and in the Special Administrative Region Free Port, reaching an unprecedented new height.

Seeing that the situation was ripe, Gao Huaijun called Min Weiguo the night before the meeting with the major financial groups and asked him to take a flight to Freeport the next morning.

We will have a meeting with these capital giants from Freeport, and ask Min Weiguo and Andrew Ng to form a technical accompanying team to be responsible for explaining some of the technical details.

Now Hillhouse’s artificial intelligence and the Internet of Things have reached a very deep level.

Although Gao Huaijun had a clear direction, some details were unclear.

At the same time, Gao Huaijun was more eager for Hillhouse Technologies to go public.

The operating costs of Hillhouse Group are now too high!

After the establishment of Hillhouse Academia Sinica, the average income of this group of PhDs reached between 30 and 100 million yuan. Combined with the allocation of scientific research funds, the average income reached a million yuan per person.

For example, when it comes to developing new materials, it’s basically just a random combination of various technologies, relying on luck and technology. If you don’t have money, how can you develop new materials?

And this is just one of the groups. Other new technologies are even more of a money-waster!

Gao Huaijun now needs about 2 billion US dollars to invest in the research and development of artificial intelligence and the latest generation of range extenders and pure electric batteries to serve Hillhouse's future globalization.

Although Hillhouse Capital has a very strong ability to make money now, it has expanded too quickly and is unable to expand its balance sheet and issue bonds in the free market.

However, bank support is limited, and the most important thing is that bank interest rates are too high!

When issuing bonds in the free market, high-quality companies, such as the evergreen Longhu Real Estate in the real estate industry, have an average borrowing cost of around 4% per annum for a long time.

If the land is mortgaged to a bank, the interest rate on the development loan will basically rise to more than 8%!

For some companies with tight cash flow, this cost can even reach around 10%, which is even more exaggerated.

The same goes for technology companies. Companies like Hillhouse usually charge more than 7% interest when trading in the over-the-counter market, because others think that since you are not listed and do not have a stable financing channel, they will definitely rip you off. However, if Hillhouse Technology goes public, it will have a stable pipeline, and it will be much more convenient to raise funds in the future.

For high-quality companies like Hillhouse Technologies, it is very easy to get financing costs of around 4%-5%.

This is also the key reason why Gao Huaijun made up his mind to go public.

The blueprint in Gao Huaijun's mind had already been completed at this time.

What he wants now is to take advantage of an opportunity to unfold this magnificent picture and shock the whole world!

Let them see the strength of Hillhouse’s R&D capabilities!

. . . . . .

Hua Tianyi, the big boss of China Construction Investment, sat in the company's luxurious office in Freeport, waiting for the arrival of a distinguished guest.

China Construction Investment’s Freeport headquarters is located in the China Construction Building, a 1-storey building at 3-17 Pedder Street, Central, Freeport.

Although it is a small building, China Construction Investment owns half of the building, and from the top floor, one can vaguely see the magnificent river view of Victoria Harbour.

You have to know that land is very expensive here. A small room of a few square meters costs more than 5000 Hong Kong dollars to rent. The fact that they can use such a large area as an office shows the strength of China Construction Investment.

Hua Tianyi paced a few steps and asked involuntarily, "When will Gao Huaijun come?"

The secretary at the side replied, "On the way. There may be some traffic jam. It will take half an hour to arrive."

Hua Tianyi nodded rather dully, then walked to the beverage area to pour himself a glass of wine to calm his throat.

Hillhouse Technology's listing, Hua Tianyi has finally waited for this day!
In the past two days, Hillhouse has been building momentum and hyping new concepts, which is actually also in line with the roadshow story, hoping to get a good price.

But what price can Hillhouse Technologies be sold for?
This is a question that both he and Gao Huaijun need to think deeply about!

In 2013, Hillhouse Technology not only exceeded the original total planned task of 400 billion yuan, but also broke through the integer mark of 600 billion yuan. Compared with 2012 billion yuan in 302, it increased by a full 101%.

This scale and unicorn-like sales amount can definitely cause a bloody storm in the capital market.

Now, not only China Construction Bank, but also major investment banks including Gaosheng are rubbing shoulders with each other, wanting to eat a piece of fat meat. How to eat this piece of fat meat, where to eat it, how to eat it, and what is the premium.

All of these require consideration and discussion from multiple parties.

So today’s meeting is very crucial!

With Gao Huaijun's personal participation, it is basically possible to determine the general direction of where Hillhouse Technology will be listed.

When Gao Huaijun led his negotiation team to the China Construction Building.

At this time, the area around China Construction Building had been surrounded by police and special duty personnel and a certain amount of clearing was being carried out.

Gao Huaijun is such a hot topic now, and anyone with a discerning eye can see that he wants to go public in Freeport.

The Freeport government naturally dares not slack off.

If anything happened to him in Freeport...

Then Freeport's title as the safest city in Asia would really be insulted.

So both publicly and privately, nothing can happen to Gao Huaijun while he is in the free port!

When Gao Huaijun walked into the magnificent conference room, Hua Tianyi took the initiative to greet him, "Mr. Gao, welcome!"

"Mr. Hua, long time no see!" Gao Huaijun shook hands with Hua Tianyi with a smile.

Hua Tianyi couldn't help but feel a little emotional. How long had it been since Hillhouse's last Series C financing?

Now Hillhouse’s sales have increased several times.

Even Hillhouse Technology dubble in 2013, doubling!
This growth rate is amazing!
Perhaps in a few years, Hillhouse will own two Fortune 500 companies?

This is something that is very likely to happen!
What kind of magic does Gao Huaijun, a young man who is only 30 years old, have in his hands?

Other technology companies are probably still figuring out how to launch a smartphone or an extended-range vehicle that will be popular in the market.

On the contrary, he has now made a direct turn and is going to make great efforts in exploring artificial intelligence.

How can you let others follow you?

After the two finished and exchanged a few pleasantries, Hua Tianyi hurriedly asked, "Mr. Gao, I wonder what your company thinks of our proposed IPO roadshow plan?"

When Gao Huaijun heard Hua Tianyi say this, he couldn't help but feel a little funny.

Generally speaking, it is the investment banks that select their clients. If a company that wants to go public can find a securities sponsor company, it is considered good enough. What else can it want?
Now, even state-owned enterprise giants like China Construction Bank have to seek Gao Huaijun's opinion.

There is a sense of surprise and black humor that turns the world around.

"I don't quite agree with A+H together. Hillhouse Technology now has sales of hundreds of billions. If it wants to be listed on the A-share market, we have to queue up and wait for approval. Even if we enter the green channel, there will be a lot of uncertainty." Gao Huaijun shook his head and gave a direct conclusion.

Now the Shanghai government wants Hillhouse Technologies to be listed on the A-share market, and they are crazy about it.

Hillhouse Capital itself has a heavy investment in Shanghai, and its main R&D efforts are also in Shanghai.

It is only natural that capital financing items are now placed in Shanghai.

However, Hua Tianyi heard the hidden meaning behind Gao Huaijun's words.

That is... He hopes to obtain overseas financing in the future, but he does not want his equity to be diluted too severely!
What do you mean?
If A+H is to be realized, based on Hillhouse's current sales and core profits, it will inevitably release more than 20% of its equity.

Then, Hillhouse's controlling stake will inevitably hover around 50%. If it is not careful in the future and reduces its holdings a little, it is very likely to drop below 50%!

In other words, Gao Huaijun will lose control of the Hillhouse Technology board of directors.

Although there are many ways to achieve indirect control, such as like Daqiangzi, who only has 10% of the shares, but has more than 80% of the voting rights, his word is final.

Or in companies with many shareholders and dispersed equity, power will be delegated to the board of directors, and controlling more than half of the board seats can also control the company. This is what Alibaba does, for example.

The worst-case scenario is to use concerted action or proxy voting to unite small shareholders and accumulate small amounts to increase the equity.

However, these methods are the only solutions available.

It is far less comfortable than having a stake of more than 50% and having the final say.

This is just like Mr. Xu of Yongyuan Real Estate. Why did he dare to play such a big game with KPMG, directly cooking the accounts, and creating a 2 trillion hole for Yongyuan Real Estate for a 2 million audit fee?

It’s just that he has the final say in the board of directors and no one can ignore him!
Of course Gao Huaijun would not do this, but he also wants absolute control.

"Mr. Gao, do you want to use an external platform to build a Beautiful Yuan bond system?" Hua Tianyi asked directly.

Gao Huaijun nodded and said, "The business model I created is difficult for ordinary people to imitate and quickly follow. I am ahead from the start, and after that I run faster than everyone else. No one can catch up with me at all."

"A very core point is that I have a strong R&D team!"

"Yes, these people in front of me are my elite soldiers and generals!"

"I have thousands of PhD employees alone. Not to mention ordinary private enterprises, even some state-owned enterprises rarely compare to mine."

Then, Gao Huaijun introduced Min Weiguo and Andrew Ng to the China Construction Investment team, with a focus on Andrew Ng, explaining his work content as follows.

When Hua Tianyi heard that Andrew Ng had a R&D team of more than 2000 people, he couldn't help but be shocked.

This is really ALL IN AI!
Others haven't even started running yet, but you've already taken the lead.

Good guy!
Really good guy!

Hua Tianyi continued, "However, I think Hillhouse's R&D team is too bloated. A R&D team of nearly 10,000 people is not common in foreign countries."

Gao Huaijun thought for a moment and said, "This capital market is overthinking!"

"The current strength of Hillhouse is far from what it used to be."

"Scientific and technological innovation is not just a simple slogan. We need more manpower and material resources to carry out corresponding research and development."

“We need more talents in all aspects to promote scientific and technological progress!”

"We not only need so many people, we will also build more R&D centers and expand the entire R&D department several times."

Gao Huaijun continued to introduce his practical blueprint for research and development.

For example, the Chengdu Research Institute that is about to be established will house microwaves. There are many microwave talents and device companies in the Sichuan and Chongqing regions. Now the RF stability of the Mate series is insufficient, so relevant talents are needed to carry out corresponding targeted research and development.

The Swiss Research Institute was established simply to poach new talents from Aili. In order to avoid having to relocate them, they were directly placed in Stockholm. Those people will mainly work on wireless technology in the future.

Helsinki is also planning to set up a laboratory and directly poach people from Nokia to acquire all the mobile phone technology from systems to design.

Nuremberg is in the energy industry, and we plan to set up a booth there as well, because there are a lot of good companies there.

Milan is also planning to set up a research institute to study microwaves, because there are a lot of companies and big names working on microwaves there, and they want to build a research institute just for one person.

Munich, Germany, is an old automobile industrial base. In order to facilitate the work of the experts recruited here and coordinate the surrounding small research institutes, it will be upgraded to a European Research Center in the future.

There is also the Russians’ computing power and baseband algorithms, etc.

Hillhouse is preparing to open branch mines in these places and increase the number of people in the R&D team.

Although Gao Huaijun only briefly spoke of his grand research and development plan, the people in Hua Jiantou's office sitting opposite him were all stunned.

this. . .

Hillhouse's branch mines are really scary!

If we do it this way, it will become a multinational mega corporation!

Boss Gao, do you want to challenge a giant supertrust like Microsoft?
Oh no, Microsoft is not qualified to compare. They are just a company that sells software. They are not as aggressive as Hillhouse Capital!

You're taking this a bit too far.

Awesome!
That’s really awesome!

(End of this chapter)