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

Chapter 564: Chapter 433-434: The Battle Royale Era Begins! (4000 words)
Soon, the news that Hillhouse Capital’s vehicle business was going to go public spread within the financial industry.

The IPO of Hillhouse Capital's vehicles has been in a stagnant state since it was officially disclosed.

As the most important automobile company in China, the listing of this giant has always been a concern for financial institutions.

All financial institutions want to get a piece of this super-large IPO, but they are afraid that such a behemoth is too big and the institutions simply cannot handle it.

The huge company with a market value of hundreds of billions or even trillions of dollars is just a component of the aircraft carrier Hillhouse. Other core assets, Hillhouse chips, Hillhouse chip factory, and Hillhouse artificial intelligence are hidden behind it.

Although these internal companies are not listed, when institutions evaluate Hillhouse's value, they cannot get a share of the super-large IPO, but they are afraid that such a behemoth will be too big and the institutions simply cannot hold on.

The huge company with a market value of hundreds of billions or even trillions of dollars is just a component of the aircraft carrier Hillhouse. Other core assets, Hillhouse chips, Hillhouse chip factory, and Hillhouse artificial intelligence are hidden behind it.

Although these internal companies are not listed, institutions cannot ignore these core assets with close internal connections when evaluating Hillhouse's value, and will naturally consider the core indicators of Hillhouse Vehicles comprehensively.

"The PE value that Hillhouse Capital wants is too high. China Construction Investment is probably just trying to get the project by force."

"Take it with all your might? Others are not willing to part with it even if they are trying to grab it. If such a project is run well, the profits will be very lucrative."

"Indeed, there are too few high-quality IPO targets in the market now, and most of them are small companies with a market value of several billion. How much money can they make from one deal? Hillhouse Capital Vehicles is different. It has a large capacity and hot money will pay close attention to it. The concept is the most cutting-edge artificial intelligence + driverless + new energy vehicles. I am very optimistic about this project."

"This company is really strong! Where can you find such high-quality assets now? In fact, the most valuable thing of Hillhouse is its artificial intelligence BU, which is the thing that truly leads the world trend. However, it is estimated that this thing will never be listed in this lifetime."

"Indeed, in this era, Gao Ling's artificial intelligence is considered authentic."

As the news of Hillhouse Capital's listing was released, it immediately sparked heated discussions within many securities firms.

However, it is still in the early stages of the roadshow, so these brokerages are on the sidelines.

A price-to-earnings ratio of 35 times is really not cheap!

This price is just the price that the brokerage firm gets from the distributor.

This is not the price that brokerages sell to retail investors or other small institutions in the market.

Although the A-share market is a policy-driven market, the hype logic of this market itself still depends on basic emotions.

Without the support of core emotions and your price is at a high level, it is difficult to say whether you can make money at this price.

Especially for big stocks like Hillhouse Capital, if the stock price is to go up, there must be a combined force.

So, gradually, this group of securities firms in the financial industry are no longer in a hurry to subscribe to the initial shares to be issued by Hillhouse, but want to wait and see what other actions Hillhouse will take before going public.

It is under this kind of scrutiny and questioning gaze.

However, once this news was released, it put a lot of pressure on many automotive competitors.

"What does this listing of Hillhouse Vehicles mean?" Fengtian Automobile's chairman asked Kazuhiro Kobayashi, Fengtian Automobile's general manager.

The entire Japanese automotive industry has been experiencing a series of major turmoil recently.

Fengtian, Richan and Bentian, the three leading Japanese companies, have all seen a sharp decline in sales in China.

Especially for the Sun Shovel and Bentian, they were decreasing at the speed of light.

As Hillhouse's sales volume has gradually increased this year, and new Chinese local forces have continued to enter the new energy vehicle market, which is a broad field, life has become even more difficult for Richan and Bentian.

Their sales in China in 2018 dropped by more than 2017% compared to 40!

This means that their channel system in China is in jeopardy!
Now it’s not a question of how much money you make, it’s a question of survival.

"Hillhouse has been blocked by Xida, and now its outward expansion has been blocked. It is estimated that it wants to maintain its base first."

"Hillhouse Automotive is going public because it wants to prioritize the development of its automotive business, which is not as severely affected!"

"Recently, there has been a rumor that the two companies, Risho and Bentian, may be merging."

With a wry smile on his face, Kazuhiro Kobayashi announced a shocking piece of news that could change the world's automotive landscape.

"Oh? Hitoshi and Honten are going to merge? Is this information reliable?" Feng Tianzhang seemed to realize something at this moment and looked at Kobayashi Kazuhiro in shock.

"It's reliable. The news came from Mr. Fujiwara of the House of Peers. We are now in the stage of secret contact and it is estimated that the discussion has almost been concluded." Kazuhiro Kobayashi knew the importance of this matter. It could almost be said to be a major move that would change the fate of the island country in one fell swoop, so he did not dare to take it lightly.

"Hmph! Two pieces of garbage combined together are just a big piece of garbage!" Feng Tianzhangnan's face was serious at first, then he laughed sarcastically, and then said.

"Ah! Lord Fengtian, please be careful with your words!" Kobayashi Kazuhiro panicked when he heard what Fengtian Zhangnan said, and said quickly.

In the island country, several leading automobile manufacturers basically have influence on the cabinet, but they also have their own factions.

Basically, all policies of the Ministry of Economy, Trade and Industry will be formulated in real time only after being confirmed and consulted by these big conglomerates.

If Feng Tianzhang said this, he would offend a lot of people.

"What are you afraid of? I'll scold both of them in front of me!"

"Don't think that the island nation's automobile industry is still so prosperous that it can command this and that."

"Think back, before every industry in the island nation collapses, doesn't it undergo a major merger?"

"Fujitsu and Toshiba's mobile phone businesses merge, then what?"

"Sony merges Toshiba's and Hitachi's panel businesses, and then what?"

"Elpida and Toshiba's memory businesses merge, and then what?"

"Imabari United's shipbuilding business will be merged, and then what?"

"Nothing happened. Nothing happened to them!"

"If Richan and Bentian can't keep their footing, do you think that we, Fengtian Automobile, can maintain the advantages of the island country's automobile industry chain that we have worked hard to build for decades?"

"Impossible! It will never be possible!"

"Do those adults in the House of Nobles really think that they can sit back and relax after the merger of Risha and Bentian?"

Feng Tian Zhangnan stood up irritably, and his words were a little inappropriate, which seemed a little inconsistent with his character as the person in charge of Feng Tian Automobile.

They watched Hillhouse develop step by step to its current level. There was no other way. Hillhouse Automobile's step-by-step development, especially its strong momentum in B-class and A-class cars, really destroyed their base in China.

In terms of product strength, they can't compare.

In terms of price, everyone has been trying to lower prices, which has already hurt the industrial chain in the island country, but they still can’t win.

How do you want him to play?
How can this not be inappropriate!
When Kobayashi Kazuhiro heard what Feng Tianzhang said, he sat down on the sofa dejectedly.

Without Feng Tian Zhangnan's reminder, he had not noticed this point. After Feng Tian Zhangnan said this, he instantly realized that this is how the island country solved similar problems, using similar ideas and operations.

On the other hand, when you see similar operations occurring, you can confirm that the island country has encountered similar problems, and you can predict that there is a high probability that the results will be similar to previous similar incidents.

After the merger, a new company will take over the mess, and the new company will go bankrupt again.

That's great, no one needs to take responsibility.

Let the senior management bow and then step down gracefully, and slowly, this industry will come to an end in the island country!
"Damn it! It's all that damn Gao Ling's fault!" Kazuhiro Kobayashi thought to himself with gritted teeth.

Hillhouse's self-commitment affects more than just the company itself.

The company is now a dual-head company in the world's two largest industrial chains: electronic technology and automotive industry.

The impact on the industrial layout structure of the entire world is naturally very significant.

In fact, in this era, there are naturally considerations behind why Xida chose to dismiss itself from Hillhouse instead of Zhongwei.

Hillhouse's five major industries, namely electronic technology, chips, artificial intelligence, automobiles, and the embodied robots in which Hillhouse is now truly involved, are all industries in which Xi'an University has invested heavily.

It can even be said that the ignition of the third scientific and technological revolution will basically occur in these five major industries!

Whether the third scientific and technological revolution is successful or not is almost related to the development pattern of the entire world.

The great changes that have not happened in a thousand years, whether the world's economic center can successfully shift for the second time basically depends on this time

However, the eldest brother and the second brother fought and killed the third brother.

This was originally a clash between two major powers, but it ended up having a very significant impact on the three major Japanese automakers.

Because the current situation of the three Japanese giants is that it has reached its limit!

In order to maintain their current sales, the three Japanese giants have tried their best and done everything they can and cannot do.

The company was engaged in a fierce price war with its competitors, especially Gaoling Song and Gaoling Han, the benchmarks of A-class and B-class cars, and had lost all its profits and bargaining chips, but prices were still being eroded.

The biggest feature of the automobile industry is that the supply of parts decreases linearly with the increase in automobile production.

The cost price of auto parts with annual sales of tens of thousands of units and the cost price of auto parts with annual sales of hundreds of thousands of units look like two different categories.

This is the reason why many automobile companies would rather their products lose money than not sell them.

They hope that the cost price of their products per car can be lower than the sales price before the capital chain collapses. They are betting on the future.

Therefore, if the price war among the three Japanese giants has reached its limit and still fails to prevent the crazy decline in sales, then as sales decline, the suppliers' cost price will also rise at the same time.

This will lead to the loss of price advantage and a rapid decline in sales, and then the cost of subsequent parts will continue to rise, and the entire car company will instantly fall into a death spiral!

What we saw was that the sales of these two companies in China plummeted by 40%, while the global basic market remained stable, with only a slight decline of 2.8%. However, Japanese investors saw the sign of the collapse of the building.

As for the huge wealth earned in previous decades, all of that has been divided up, leaving only the liquid cash needed for production in the account. No matter how much money was earned in the past, it has nothing to do with it now. Enterprises are operated as joint-stock companies, not private citizens.

The reason why Hillhouse's aggressive step-by-step approach has made Rishan and Bentian's executives despair is that the collapse of the entire fuel vehicle industry has made Rishan lose the confidence that it can get through it by just holding on.

Faith is more valuable than gold.

If the two companies still have confidence and think that this is just a competition between fuel vehicles and fuel vehicles, and there is not much generation gap between the two, then they can still hold on a little longer.

But now there is the difference between smartphones and senior phones, so how do you survive?
Throwing money into a bottomless pit?

Why not merge and continue to survive?
"Automobiles are the pillar industry of the island nation, directly employing 554 million people, and most of them are high-paying jobs, driving more than million jobs in the surrounding areas and services."

"4% of the island nation's industrial output comes from the automobile industry."

"So we still have the confidence and the strength to face this competition directly!"

"Because we have no reason to retreat!"

Kobayashi Kazuhiro said with a stern look.

The automobile industry is completely different from the shipbuilding, mobile phone, chip and other industries.

This is the pillar of the country!

If it is gone, the island nation will directly regress back to a developing country, which would be even worse than being hit hard by nuclear weapons.

This time, the island nation's automobile industry has at least been hit hard. If it reacts quickly, it may be able to survive to some extent. But if it remains stubborn and refuses to change, it is possible that it will be uprooted.

So Kazuhiro Kobayashi thought that at this point, everyone must have reached a consensus and there would be no more strange things that would hold them back.

In this wave of global automotive competition, island countries’ cars cannot lose!

"It is definitely not okay for this chill to spread only at the level of our brand owners."

"In the past, the prices of our partners, relatives and friends were just a little higher, but now we need to clear the way for them again."

"This chill needs to spread from OEM to tier 1-2 immediately!"

"If the current situation in the auto industry cannot be improved, it will be compounded by the current personal leverage and property market problems that started in the bubble era and fall into a vicious spiral."

"I think the Prime Minister of the Cabinet would not want this, right?"

There was a hint of murderous intent on Feng Tianzhang's face, and he spoke to Kobayashi Kazuhiro in a rather unfriendly tone.

(End of this chapter)