Reborn since 1993

Chapter 842 The world is bustling with people all for profit
To a certain extent, this year is a big year for the listing of domestic technology companies, including China Satellite, Great Wall Computer, and ZTE and Datang Telecom, two of the four giant China companies, which are also ready to complete their listing on the A-share market.

Moreover, among those applying for listing, ZTE has the highest valuation because ZTE's current businesses are all high-profit products. The price war in programmable switching systems is very fierce now, but in the past few years, it created four giants in China in one go.

The Xiaolingtong PHS mobile phone also has huge profits, and ZTE has been overwhelmed with orders for the remaining PHS base stations.

Wherever there are Xiaolingtong mobile phones, there must be PHS base stations. In addition, the signal of PHS mobile phones is unstable and there are problems such as poor signal, so the number of base stations must be increased.

A PHS base station needs to be built every 200 meters. With domestic and foreign orders, ZTE is really overwhelmed by the orders.

These three businesses have now become ZTE's most important businesses, and have also led to a continuous surge in ZTE's annual performance. Naturally, its listing valuation is much higher than that of Great Wall Computer, Datang Telecom, China Satellite and others.

There are even securities institutions that estimate that after ZTE's listing, its market value will exceed 10 billion yuan, making it another big bull stock in the A-share market after Changhong, Haier and Chunlan!

Previously, the Juhua Factory, which had not paid much attention to the Xiaolingtong and PHS base stations, is now in a difficult situation. The programmable switching system has now entered a bloody stage.

First, domestic switches competed with overseas giants such as Siemens, then the four major switch giants competed internally, and then other switch brands of all sizes were added, and the price war was fierce!

The switch market is expanding and even starting to go overseas, but profits are beginning to decline.

In addition, the GSM technology, which cost a lot of money to develop, has not yet started to explode in the domestic market, which has put the Juhua Factory in a difficult situation. On the one hand, it has poured money into the bottomless pit of GSM base stations, but on the other hand, it cannot get any GSM base station orders.

At this time, ZTE was far ahead of the Chrysanthemum Factory, with revenue soaring and an IPO in sight, making it a rising star in the domestic technology industry. Hou Weigui was naturally in a good mood.

But now, suddenly seeing the news that Dongling Hi-Tech was selling off its PHS products, Hou Weigui couldn't help but start to feel troubled and worried.

It was really unclear what Dongling Hi-Tech was going to do. Hou Weigui couldn't help but ask Yin Yimin and other executives who were in charge of ZTE's technology department, "What exactly is Dongling Hi-Tech going to do?"

Yin Yimin and others were also bewildered. There had been no rumors about this before, but suddenly a huge bomb exploded.

"Go buy the fastest flight to Hanxi provincial capital. I want to meet that fellow villager..."

Hou Weigui decided to fly to Hanxi in person to ask Li Dongling in person what Dongling Hi-Tech wanted to do.

A single move can affect the entire body. Dongling Hi-Tech's sale of PHS phones will also have a huge impact on ZTE. How can ZTE remain indifferent?

"The latest news from Phoenix TV in Hong Kong City is that Lin Xianhui, general manager of Tanglin Hi-Tech Hong Kong City Company, accepted an exclusive interview with Phoenix TV today and clearly stated that Tanglin Hi-Tech Hong Kong City Company will join hands with Cyberport Company to officially launch the acquisition of Hong Kong City Telecom!

If this deal is completed, it will be the largest acquisition in Hong Kong in recent years!"

"According to rumors, Hanxi Dongling Hi-Tech Company will sell its PHS mobile phone business, possibly to raise funds for the acquisition of Gangcheng Telecom!"

"The latest news from Yanjing Finance is that Hanxi Dongling Hi-Tech Company has officially applied for a car license from the Economic and Trade Commission, Development and Reform Commission, and the Ministry of Machinery Industry!

This marks that Dongling Hi-Tech will enter the automotive industry and become a new force in domestic car manufacturing! "

The voice coming from the TV interrupted Hou Weigui's words and surprised all the senior executives of ZTE.

The news reported on TV contained so much information that it also "explained" why Dongling Hi-Tech wanted to sell its Xiaolingtong mobile phones.

To buy Gangcheng Telecom, a huge amount of US dollars in cash is needed. Dongling Hi-Tech has no other way to raise so much US dollars except to sell Xiaolingtong...

Another reason is that Dongling Hi-Tech is going to apply for a license to start manufacturing cars. This is also a money-eating beast-level project. From design to production, as well as production lines and factories, it will cost a large amount of US dollars to purchase equipment and technology overseas.

In addition, the Southeast Asian market was sluggish. Under these three reasons, it seemed reasonable for Dongling Hi-Tech to start its transformation and sell off its Xiaolingtong product, or at least it was explainable.

Although Hou Weigui and ZTE executives were shocked, they actually believed this statement in their hearts.

Dongling Hi-Tech has been clamoring for the acquisition of Gangcheng Telecom and car manufacturing for many years. Li Dongling has also talked about car manufacturing many times in public. Therefore, it is barely understandable that Dongling Hi-Tech sold off Xiaolingtong for these two projects.

"Book your plane tickets!"

Hou Weigui's face was very solemn, but he was still preparing to fly to Hanxi. Once Dongling Hi-Tech sold PHS, ZTE would also face the problem of where to go. He had to meet Li Dongling in person. ...

When the reason why Dongling Hi-Tech sold Xiaolingtong was discovered and widely reported by the media, the authenticity of the matter began to be confirmed.

Media in Hong Kong, Singapore, Japan and other places also began to report on the event, and for a time the entire Asian technology circle was bustling with activity.

If Korea, Siam and other places had not been devastated, it is possible that Korea's technology giants would have come over to try to join in the fun.

But even so, when the news came out in Japan, it caused a huge shock, especially for the Nippon Telephone and Telegraph Company!
"Arrange the flight immediately. I'm going to Hanxi tonight!"

"Hold a board meeting and tell the finance department to raise all the cash that can be raised from Nippon Benzene Telephone and Telegraph Company, and contact banks to prepare for loans.

In addition, we have reached an agreement with the securities company, and Nippon Telephone and Telegraph Company is preparing to issue bonds and stocks!"

When the president of Nippon Telephone and Telegraph Company, Nakamura Sueio, saw that Dongling Hi-Tech was going to sell its PHS mobile phone business, he immediately issued a series of orders to his subordinates.

It is hard to say what attitude other companies have towards the Xiaolingtong mobile phone, but Nippon Telephone and Telegraph Company will definitely not allow it to miss out on the Xiaolingtong mobile phone.

Once the PHS mobile phone was obtained, the entire PHS industry chain, from PHS base stations to PHS mobile phones and then to PHS telecom users, would be in the hands of Nippon Telephone and Telegraph Company.

Nippon Telephone and Telegraph Company may even become the world's largest telecommunications group and one of the top three mobile phone brands in the world. The profits of the entire PHS industry chain will go into the hands of Nippon Telephone and Telegraph Company. Which Nippon Telephone and Telegraph Company can resist such temptation?

No matter what method he uses and at what price, Nakamura Weifu is determined to get the Xiaolingtong mobile phone, no matter the cost!
Even if he has to spend money this time, Nakamura Sue is determined to get the PHS. This may very well determine the fate of Nippon Telephone and Telegraph Company for the next few decades.

As a listed company and Japan's largest telecommunications company, NTT has abundant cash flow. In addition, it can borrow money from the Bank of Japan and issue stocks and bonds, so Nakamura Sue is determined to win this time!

……

"Dongling Hi-Tech is finally going to be eliminated!"

In Hong Kong, Brown, president of Cable & Wireless, the parent company of Hong Kong Telecommunications, couldn't help but breathe a sigh of relief when he saw the news reported by the Hong Kong media.

Soros was shorting Hong Kong City. The Hong Kong City stock market plummeted and was heading for a halving. As a Hang Seng Index stock, Hong Kong City Telecom was naturally a key short-selling target.

Hong Kong City Telecom has a large market cap. Once it falls, the Hang Seng Index will collapse, and then the entire Hong Kong City stock will begin to plummet. More importantly, it is easy to short Hong Kong City Telecom, but it requires huge funds to raise its stock price. This makes it a shame for international hedge funds not to short Hong Kong City Telecom.

Not to mention the plummeting stock price and market value, the entire Southeast Asian economy is now in a state of collapse. It was previously reported that the buyers who wanted to acquire Harbour City Telecom have collapsed in Singapore, not to mention Singapore Telecommunications, which simply cannot afford to pay much US dollars.

Hong Kong City Telecom is also in a precarious situation now. The stock market, property market and Hong Kong dollar are all falling. It is hard to say whether another buyer of Hong Kong City Telecom, Pacific Century CyberWorks, can raise money to acquire Hong Kong City Telecom.

The market value is falling day by day, and buyers are withdrawing one by one. Hong Kong City Telecom, which was previously considered a popular stock, now seems to be ignored.

And why did Cable & Wireless appoint Brown as the new president? Wasn't it to let him sell Hong Kong City Telecom at a high price? But now, not only has it been sold, but the price of Hong Kong City Telecom is getting cheaper and cheaper. How can Brown not be anxious?

At this time, it was suddenly reported that Dongling Hi-Tech was going to acquire Gangcheng Telecom, and even sell off its cash cow, the Xiaolingtong mobile phone. What did Brown think? He felt that Dongling Hi-Tech was truly a friend in need!

"Go contact Cyberport. Cable & Wireless is willing to start negotiations with Hong Kong City Telecom!"

Brown really doesn't want to miss this last big money sponsor, especially since Hong Kong City Telecom will obviously enter a period of decline. It is very likely that no buyer will be able to take over Hong Kong City Telecom within a few years. For Brown, Cyberport may be his life-saving straw to get rid of troubles!

It's not just UTStarcom and Nippon Telephone and Telegraph that are ready to make a move. Mobile phone brands entering the domestic market, including Nokia, Ericsson, and Motorola, are also turning their attention to Dongling Hi-Tech.

Brands like Ericsson and Xiaolingtong do not follow the same technical path, but that does not mean they are not interested in this cash cow. Xiaolingtong is now selling so well that its sales have surpassed those of brands like Ericsson!
This prompted mobile phone brands such as Ericsson to tentatively begin contacting Dongling Hi-Tech.

But for some people, hearing this sudden news doesn’t feel so good!

(End of this chapter)