Reborn since 1993

Chapter 814: Myth Shattered
Now, there are several large warehouses of electronic dictionaries in Haojixing's warehouse, with a total value of nearly 600 million.

The cash flow of the entire HaoJiXing company has been pressed upon the machines. These goods were originally supposed to be sold in Southeast Asia, but now the entire Southeast Asian market is completely ruined. It is no longer a question of whether they can be sold, but rather that the entire market is gone.

What made Zhou Zhiyuan feel even more desperate was that the domestic market suddenly became much more depressed, and Southeast Asia began to affect the domestic market.

Many domestic and foreign trade companies have begun to suspend production one after another, panic has begun to set in, and many families have begun to be frugal. Naturally, sales of electronic dictionaries, which are non-essential living expenses, have begun to decline.

After all, everyone can tell which is more important, going hungry or buying an electronic dictionary, which has made the domestic market much quieter.

The sales of brands like OZing, which rely on volume to make profits, began to be affected immediately. On the contrary, electronic dictionaries in the mid- to high-end market have not been significantly affected for the time being.

OZing is now in such an embarrassing situation. There are nearly one million computers stored in the warehouse. As a result, not only has its ambitious overseas market been completely ruined, but some of its products are not selling well in the domestic market. The entire cash flow has been burned up, resulting in the current situation of being blocked by suppliers.

"Boss Zhou, are you trying to bully us? We all have our own lives. If we don't get paid for the goods, we won't be able to survive if we go back!"

"Mr. Zhou, if you can't pay, we'll all die together today!"

The entire conference room became chaotic again, and some people even started pushing and shoving because of Zhou Zhiyuan's arrival. If a group of executives from Haojixing hadn't rushed in and tried their best to save Zhou Zhiyuan, it would be hard to say whether he could walk out of the conference room safely today.

But even so, Zhou Zhiyuan was punched several times in the chaos, his face was bruised and swollen, and he looked extremely embarrassed.

Parts suppliers, banks, and even agents who could not sell their products all came to request returns. Office staff and production line workers were also in a panic, not knowing whether their salaries would be paid. The once bustling Haojixing was suddenly forced to stop production and even go bankrupt.

Like Haojixing, there are many other brands such as Noah's Ark and Wenquxing. These brands had previously been thinking about expanding overseas markets and grabbing the market after the withdrawal of Shenzhou Electronic Dictionary.

But who could have imagined that in the blink of an eye, it was no longer a question of competing with Shenzhou for the market, but a question of whether it could survive.

Not only the electronic appliance industry, but also the OEM factories that previously made money from foreign exchange subsidies have been more directly affected. Many OEM factories are operating at the extreme level and rely entirely on bank loans to operate.

That is to say, to buy raw materials and pay employees' salaries, they all borrow money from the bank, and then after exporting, they earn foreign exchange and receive subsidies. The entire capital chain is very long.

There is nothing wrong with this way of playing. Now the country needs foreign exchange, and companies that can earn foreign exchange will be given priority support by the local government.

But the key to all this is to be able to earn foreign exchange. What if the foreign exchange orders are gone? The bank cannot see the foreign exchange orders and will not lend to these OEM factories, and the capital chain will be broken in an instant!
When the wind from Southeast Asia blew into the country, these OEM factories exporting to Southeast Asia began to collapse on a large scale in an instant.

……

In Hailing City, Chunlan Group, which was once at its peak and one of the three major stocks in the A-share market, is now filled with a sense of tension.

Last year, Chunlan’s revenue exceeded RMB 10 billion, reaching its peak since its establishment. The entire Chunlan Group believes that Chunlan can go further.

Especially under the leadership of Tao Jianxing, the founder who led Chunlan to create countless miracles, Chunlan's entry into the automotive industry will surely create new miracles in the automotive industry.

But now, it is hard to say whether Chunlan can create a new miracle. The sudden changes in the market have made Chunlan’s capital chain begin to become tight.

"The dealers are selling at a loss because of the prices we set. They want to get subsidies from the company, otherwise they will stop selling Chunlan air conditioners!"

"It is too costly to build our own sales channels, and the speed of laying the channels is much slower than expected!"

"The motorcycle market in Southeast Asia has completely collapsed. Chunlan Motorcycle's overseas orders are expected to be completely lost this year. In addition, the domestic motorcycle market may also be cold this year!"

"The cost of acquiring Jinling Motors has exceeded RMB 7.2 million. If we continue to develop and produce new models, we will need to invest a considerable amount of research and development funds!"

A "paternalistic" style prevails within the Chunlan Group. That is, Tao Jianxing, as the head of the Chunlan Group, has absolute say in the Chunlan Group, and no one can oppose his decisions.

If he wanted to build motorcycles, Chunlan would enter the motorcycle industry. If he wanted to build cars, Chunlan Group would acquire a car company. No one inside Chunlan dared to say no.

But now, listening to the reports from various departments, Tao Jianxing's face looked a little unhappy.

Chunlan has made a lot of money in recent years, but it has also spent money like water. In its main businesses of air conditioners and motorcycles, Chunlan has been engaged in price wars with companies such as Gree, Midea, and Haier.

In fact, because the price they set was even lower than the price that the agents paid, it was equivalent to the dealers selling Chunlan air conditioners at a loss. Therefore, they wanted to get subsidies from Chunlan, but Chunlan was unwilling to give subsidies to dealers. As a result, the relationship between Chunlan and dealers was very tense.

Some dealers have started to switch to selling products of other brands.

Originally, even though the competition was fierce, Chunlan's position was difficult to shake, but now, there has been a sudden change.

Chunlan air conditioners and Chunlan motorcycles started to lose orders for export to Southeast Asia. Domestic competition was fierce, and the price war was almost fatal. The machines were sold at a loss.

The automotive business is at a stage of huge investment, and there is no sign of recovery. Tao Jianxing, like countless domestic companies that idolize Daewoo, also began to diversify their development. Not only in the automotive industry, Chunlan is also preparing to enter the washing machine, color TV, chip, LCD panel and other industries, and has already invested in some industries!

Before Chunlan, everything had been going smoothly for him and he succeeded in everything he did. Tao Jianxing was also known as the godfather of the domestic air-conditioning industry. There was nothing he couldn't do!
This means that although Chunlan did not claim to become the mainland version of Daewoo, in fact, it did so.

Even the securities companies and investors in A-share market believe that Tao Jianxing can do it, because he has never failed since his debut, just like Mr. Li from Dongling Hi-Tech!

This means that no matter what Tao Jianxing wants to do, people who have bought Chunlan Group's A-shares will believe that he can do it.

Chunlan's stock price continued to soar. Even as it had just entered the automotive industry, some people imagined that Chunlan would dominate the domestic automotive industry in the future.

But Chunlan, which has always been creating myths, seems to be in trouble now. Tao Jianxing listened to the reports from various departments and there was hardly any good news.

"Mr. Tao, should we suspend the automobile project now and recover some funds? The current overseas and domestic situations are not good, and Chunlan's capital chain is also a bit tight..."

Chunlan's financial manager tentatively told Tao Jianxing that the entire Southeast Asia region was already in a state of panic and no one knew what the domestic market would become.

As soon as he finished speaking, the manager of the finance department felt a chill on his neck, and then saw Tao Jianxing looking at him with cold eyes.

"The automotive business cannot stop, this is Chunlan's future!"

"I believe these difficulties are only temporary. No matter what, the automobile business cannot stop. We must continue to raise funds and launch Chunlan's first "Spring Breeze" brand car!"

Tao Jianxing said that he still couldn't believe that the entire Southeast Asia region was in a state of decay. The air-conditioning and motorcycle industries were too inward-looking, so he wanted Chunlan to transform into the automotive industry.

Upon hearing Tao Jianxing's decision, Chunlan executives looked at each other in surprise. This decision was almost equivalent to Chunlan "abandoning" the air-conditioning industry.

Chunlan has invested a large amount of money in automobiles. Compared with Gree, Kelon and other manufacturers, Chunlan's air-conditioning technology no longer has any advantages. Dealers are also constantly arguing with Chunlan. If this continues, Chunlan's air-conditioning business will almost be destroyed.

But this is Tao Jianxing's decision, and he has never made a mistake. Who in Chunlan dares to oppose his decision?
……

"Koreans can definitely maintain their foreign exchange reserves. They are allies of America. Many industries in Korea are supported by America. I don't think America will stand by and watch Korea perish!"

"In addition, there are reports that Japan may lend a helping hand to countries such as Siam and Bangzi by lending dollars and yen to stabilize the foreign exchange market."

"But the current foreign exchange in the United States is less than 30 billion US dollars, and the total US dollar debt of all the companies in the United States is more than 120 billion US dollars, of which the short-term loans that are about to expire are more than 80 billion US dollars!

If America refuses to provide new loans to Korea, the entire Korean foreign exchange will collapse!"

On TV, on a financial program, the two sides had a heated debate over whether South Korea would repeat the fate of Siam.

Li Dongling watched the debate on TV and looked at several scholars from the International Economic Advisory Committee hired by Dongling Hi-Tech who were sitting in the conference room.

The focus of the debate on TV was also the point of debate between Zhu Zhiguang and Mo Gaoliang on the Dongling Hi-Tech Advisory Committee.

Among them, Zhu Zhiguang holds the same view as before. Although there has been an accident in Siam, he still holds the view that America will save Southeast Asia, especially its ally Korea.

However, Mo Gaoliang believes that America will stand idly by or even add fuel to the fire and reap the benefits for South Korea.

The two factions argued endlessly on TV, but in the final analysis, the dispute was about whether or not to believe in America.

South Korea is a region in Southeast Asia, and its economic level is second only to Japan. Once South Korea fails, the entire Southeast Asia region will basically be lost. Now it depends on whether South Korea can hold on.

Li Dongling's phone rang at this time. Zhu Zhiguang, Mo Gaoliang and others couldn't help but look at Li Dongling.

"The Korean stock market plunged more than 30% today. Soros and hedge funds started shorting the Korean stock market!"

"Overseas companies, led by America, announced their withdrawal from the Korean market!"

“Goldman Sachs and other Wall Street institutions have announced that they will stop providing new US dollar loans to Korean companies!”

"The head of the American finance department made a public speech to remind Japan to pay attention to its own risks and not waste the US dollar foreign exchange it holds!"

"There are rumors that the Korean Daewoo company cannot repay its loans and may go bankrupt!"

(End of this chapter)