Return to 88: Starting from Marrying My Sister-in-law

Once they agreed, everyone was happy.

With internal conflicts resolved and the company securing ample cash flow, it can communicate with the local government with greater confidence, demonstrating its financial strength and sincerity. This will enable the PHS network to expand its coverage more quickly in the area, and a booming market is almost within reach.

But Wu Ying still harbored a stubborn streak.

He and Lu Hongliang are the company's founders. Every share they give up now could potentially translate into a huge loss of profits in the future. It's often said in business that "earning less is losing more." If they could fight for something but didn't, wouldn't it be equivalent to a massive loss in the future?
"I……"

Wu Ying glanced subconsciously at Lu Hongliang, who was listening to the phone call beside him.

On the other end of the phone, Lu Yang's voice remained calm: "Mr. Wu feels that there isn't enough time and would like to reconsider?"

There was a hint of a smile in his voice, as if to say: It's only been a day since you came back to Hangzhou from Hailan, and I gave you three days. Isn't that enough time to think it over?

"No, Mr. Lu, please let me explain—" Before Wu Ying could finish speaking, Lu Hongliang had already reached out and taken the microphone from him.

“No need to consider it any further.” Lu Hongliang’s voice was crisp. “I am Lu Hongliang, CEO of UTStarcom. We accept your terms.”

"Oh?" Lu Yang's tone rose slightly. "Is that what President Wu also meant?"

Wu Ying took a deep breath and said into the microphone, "Yes, I agree."

“Okay, then I will come to Hangzhou in person to sign the investment agreement and, while I’m at it, finalize the selection of the person to go to Japan.”

"Welcome, Mr. Lu. We look forward to seeing you in Hangzhou."

After hanging up the phone, the conference room fell into an eerie silence, with only the hum of the air conditioner and the lingering salty smell of the island's humidity reminding everyone of the weight of reality.

Wu Ying let out a breath, as if he had just unloaded a heavy burden, but was then gripped by new doubts.

He loosened his tie; the shirt under his suit was already soaked with cold sweat, sticking stickily to his back.

Outside the window, the night in Hangzhou had deepened, and the city lights were just coming on, outlining the city's blurry silhouette. But Wu Ying's gaze could not focus, only echoing Lu Yang's last words, "See you in Hangzhou."

He turned his head and looked at Lu Hongliang beside him.

This tech leader, a graduate of UC Berkeley, was methodically organizing the documents on the conference table. His eyes behind his glasses remained calm and composed, as if the phone call that had just decided the company's fate was nothing more than a routine business conversation.

"Hongliang!" Wu Ying's voice broke the silence, trembling slightly. "Why...why were you in such a hurry to agree? Didn't you want to reconsider? Even if we had delayed for half a day, we could have figured out how to retain more of our shares! That's real money; every penny we miss out on in the future is a huge loss!"

Lu Hongliang stopped what he was doing, slowly took off his gold-rimmed glasses, and wiped the lenses with the corner of his clothes.

Under the incandescent light, the fine wrinkles at the corners of his eyes were particularly clear, traces left by years of strategizing over technological blueprints.

“Brother Wu,” his voice was low and steady, like a stone thrown into a deep pool, “didn’t you hear it? On the other end of the phone, President Lu’s tone was clearly impatient. Hesitation leads to trouble, you should know this old saying better than I do, right?”

Wu Ying was stunned for a moment. Lu Yang's words, which were tinged with a wry smile, "Mr. Wu, do you feel that there is not enough time and you need to consider it more carefully?" stung his eardrums once again.

Yes, it's only a one-day flight from Hainan back to Hangzhou, but Mr. Lu generously gave us three whole days.

During those extra two and a half days, he and Lu Hongliang repeatedly weighed the options and engaged in heated debates in the conference room, which even alarmed Masayoshi Son, who was far away in Tokyo.

They gave us plenty of time; but their patience was completely worn away by their hesitation.

“But…” Wu Ying scratched his head in frustration, “Everyone in the business world knows that earning less is equivalent to a huge loss! If Xiaolingtong really explodes like this young CEO Lu bets, and the number of users jumps from hundreds of thousands to tens of millions or even hundreds of millions, the shares we gave up could amount to hundreds of millions or even billions in the future! Financial freedom? Yes, earning 100 million is freedom, earning 10 billion is freedom, but watching a huge sum of money that should have gone into your pocket fly away is like having your heart ripped out!” His voice rose, filled with resentment.

"President Lu is young and skilled, but UTStarcom is the foundation! Hongliang, aren't you too trusting of him?"

Lu Hongliang put his glasses back on, the lenses reflecting a calm light.

"Easy to believe?" A faint smile played on his lips as his gaze locked onto Wu Ying like a hawk's. "Brother Wu, I've been following this 'young' CEO Lu for more than just a year or two... He's now eyeing the Xiaolingtong (a type of mobile phone service), even willing to spend tens of millions of dollars to buy out the patent. This resolute confidence is the biggest endorsement for us! He's betting on the explosive growth of the Xiaolingtong market in mainland China; shouldn't we follow suit?"

He stood up, walked to the window, and looked at the streetlights gradually lighting up below. His speech was slow, but every word was firm and resolute: "Survival is the bottom line. Without Mr. Lu's money, we'd be struggling to even cover the Hangzhou test network. How could we negotiate with the telecommunications bureau? How could we convince the government of our 'strength and sincerity'? If we fail even on our first attempt, what's the point of talking about the mainland market, the billions in profits, or financial freedom? Bankruptcy would be our only outcome!"

Speaking of it.

He turned around abruptly, his eyes flashing with a sharp light. "Wu Ying, let me ask you: would you rather have a sure thing of a billion yuan, living a comfortable life in middle age, or risk your entire fortune on a future where you might earn an extra hundred or two hundred million yuan, but could also lose everything?"

There was dead silence in the conference room.

Wu Ying opened his mouth, wanting to refute, but his throat felt like it was blocked by something.

Lu Hongliang's words were like ice water, extinguishing the flames of anxiety in his heart and revealing the neglected foundation—survival.

He recalled the shock Hai Lan felt when she first met Lu Yang, the thunderous rage of Masayoshi Son on the phone, the cunning and treacherous nature of the other party, and the pitiful amount of working capital on the company's books.

Yes, with internal conflicts resolved and the company having ample cash flow, it could stand tall and negotiate with the Hangzhou government, and push forward network construction with a "money is no object" attitude. The faster the PHS phone became popular, the more their paper profits as founders might be diluted, but the value of the UTStarcom platform was skyrocketing!

"One prospers, all prosper"... Lu Hongliang had already figured out this whole game.

"Hoo..." Wu Ying let out a long breath, his shoulders slumped, and a wry smile appeared on his face. "Alright, Hong Liang, I understand. You're right. Since you've made the decision, I, Wu Ying, am not one to hold you back. Let's do this deal!"

Lu Hongliang finally showed a genuine smile and patted his old partner on the shoulder.

"That's right! Now is not the time to get bogged down in these petty gains; it's the time to go all out."

He walked back to the conference table and tapped his fingers on the surface. "The most urgent task is to convene a meeting of all senior executives immediately. Waiting for this young CEO Lu to personally fly to Hangzhou to sign the agreement is a tremendous show of sincerity, but also a great pressure. We must secure every step of the process before he lands!"

"Okay! I'll notify them right away." Wu Ying perked up, his years of tacit understanding allowing him to quickly switch gears.

He picked up the internal phone and gave brief instructions.

In less than ten minutes, seven or eight core members of UTStarcom, including the CTO, CFO, and operations manager, filed into the conference room. The atmosphere instantly shifted from the tension between the two men to a collective excitement poised to erupt.

Standing in front of the whiteboard, Lu Hongliang succinctly announced the news of the final agreement reached with Pengcheng Century Group: to accept its substantial increase in investment, with UTStarcom as the acquisition entity, and to fully promote the buyout of PHS patents.

A subdued murmur rippled through the conference room, a mixture of excitement at the injection of funds and apprehension at the dramatic shift in the shareholding structure.

"As soon as the funds arrive, split them in two!" Lu Hongliang's voice was resolute as he pointed a laser pointer at the map on the whiteboard. "President Wu, you'll stay in Hangzhou and focus on the local front. You're familiar with government connections, so bring plenty of cash to have in-depth discussions with the municipal government and the telecommunications bureau. Be firm and show your sincerity! Let them see our determination and strength in expanding the Xiaolingtong network—start with the core urban area, and make sure the citizens of Hangzhou see tangible results within three months! Signal towers, base stations, terminal subsidies… money is not a problem! We want to make the name 'Xiaolingtong' a household name in Hangzhou as quickly as possible, setting a benchmark!"

Wu Ying nodded emphatically, his eyes blazing with fury.

He could almost see government officials, with ample financial support, transforming from skepticism to eager cooperation.

"Don't worry, Hongliang! Leave this position to me, and I guarantee it will burn brightly and quickly! Let President Lu and Mr. Sun see UTStarcom's execution capabilities!"

Although the lingering pain of "earning less means losing more" still lingers in my heart, at this moment, a stronger desire to conquer, characteristic of entrepreneurs, is ignited.

Lu Hongliang turned his gaze to the Japanese section of the world map.

"As for the patent acquisition," he said calmly, "I will personally lead the team to the island nation. My overseas Chinese status and connections will make things easier. The goal is clear: to contact Mr. Masayoshi Son and, with his influence, put pressure on NTT and DDI Pocket in Japan. As per President Lu's request, the first priority is to directly buy out the patent ownership of PHS technology in the Chinese mainland market! The bottom line is to ensure fifteen years of free use rights. Twenty years is the upper limit; any longer would be pointless."

He paused, then looked at the CFO. “In terms of fund allocation, I will be as careful as possible to achieve the greatest results with the least cost. The bulk of the funds must be reserved for Mr. Wu’s network construction in China, which is the foundation. Without a large user base, even the best patents are just castles in the air.”

A chorus of agreement erupted in the meeting room.

With a clear division of labor and well-defined goals, a huge amount of capital was injected into this young company that had once struggled with cash flow.

Wu Ying looked at Hangzhou and Tokyo circled on the whiteboard, his heart filled with excitement.

A surge of heroic spirit filled the air.

Roll up your sleeves, ready to get to work.

Three days later, Lu Yang appeared on time at the VIP channel of Hangzhou Xiaoshan Airport.

Behind him followed a lean team of finance, legal, and investment analysts, all dressed in dark suits, their steady steps contrasting sharply with the humid air of Hangzhou.

Wu Ying and Lu Hongliang, who had been waiting for a long time, immediately came forward. They shook hands and exchanged pleasantries with smiles on their faces, but there was a subtle caution hidden in their eyes.

Moving to the familiar conference room at UTStarcom headquarters, the lingering tension had not yet completely dissipated before it was replaced by a new round of more intense and realistic competition.

The two sides of the long table were clearly defined, and the aroma of coffee could not mask the smell of gunpowder from the clash of numbers.

The chief financial representative of Lu Yang's team took the initiative, pushing a detailed valuation report to the center of the table: "Mr. Lu, Mr. Wu, based on publicly available data and our due diligence, UTStarcom's current operating situation is not optimistic. Continuous losses are an objective fact, market expansion is slower than expected, and cash flow pressure is enormous. We believe that a reasonable valuation should take historical capital injections as an important reference."

He paused deliberately, his gaze sweeping over Wu Ying. "Three years ago, SoftBank Group's Masayoshi Son acquired a 20% stake in your company for $30 million. This means that your company was valued at $150 million at that time."

UT's CFO immediately retorted, his voice tinged with urgency at the perceived underestimation of its value: "Times have changed! When Masayoshi Son invested, the PHS (Personal Handyphone System) business was still in its blueprint, and the company's foundation was far less solid than it is now! In these three years, we have built a core team, completed the accumulation of key technologies, and our trial networks in Hangzhou and other places are taking shape. We have also fully established communication channels with the government and telecommunications departments! The market potential has been fully validated! How can the valuation remain stagnant? We demand that it reflect the company's enormous future growth potential!"

Lu Yang's team's negotiation expert smiled slightly and countered precisely: "Growth requires performance support. Turning a blueprint into reality takes time, and the time cost and risks cannot be ignored. In the three years since Mr. Sun of SoftBank Group invested, your company has not achieved its expected profit target, but has instead been continuously 'injecting capital.' We acknowledge your company's efforts, but market valuations place more emphasis on current fundamentals and foreseeable short-term returns. The base valuation of US$150 million, taking into account time costs and inflation, is already the result of a prudent assessment."

Wu Ying's knuckles turned slightly white as the phrase "earning less is losing" echoed sharply in his mind.

He forced himself to speak: "Three years of hard work—technology, team, market access—these are all tangible asset increases! We've taken risks and expanded our reach, so the valuation must go up! Even if it's just calculated based on the industry average growth rate..."

The meeting room was filled with heated debate, with numbers being repeatedly tug-of-war between the two sides.

Lu Hongliang remained silent for most of the time, his sharp gaze behind his glasses observing Lu Yang's expression across from him, capturing every subtle change in the expressions of the other team members.

He noticed that the young CEO Lu maintained a detached calm throughout, as if the argument before him was merely a necessary process to achieve the ultimate goal.

Just as the situation reached a stalemate and the atmosphere grew increasingly tense, Lu Yang finally put down his coffee cup.

The crisp sound of porcelain clinking silenced the entire conference room, and all eyes were on him.

"Alright." Lu Yang's voice wasn't loud, but it carried an undeniable penetrating power, instantly silencing all the arguments. "Time is precious, arguing is pointless."

He leaned forward slightly, his gaze calmly sweeping over Wu Ying and Lu Hongliang, his tone decisive and clear:
"How about this, I'll offer $6000 million for 35% of the equity."

This number is like a boulder thrown into a calm lake.

Wu Ying's heart sank!
The $6000 million purchase of a 35% stake means that Lu Yang's overall valuation of UTStarcom is approximately $1.71 million.

This is only $1.5 million higher than the $2100 million three years ago, with a negligible annualized growth rate, far below his and his team's bottom line.

The agonizing pain of "earning less is equivalent to losing more" struck him sharply again, and he almost blurted out, "This is impossible!"

However, just as Wu Ying was about to speak and argue, he caught a glimpse of Lu Hongliang beside him out of the corner of his eye. The latter's hand, which was under the table, pressed down on his wrist with an extremely light but undeniable pressure.

Lu Hongliang's face showed no surprise, his eyes behind his glasses remained calm, even carrying a hint of knowing "I knew it."

He met Lu Yang's gaze, nodded slightly, and did not respond immediately, but his silent action and composed demeanor clearly conveyed his attitude: accept this anchor point, and the negotiations will move to the next stage.

A profound sense of loss and a hidden anger surged within Wu Ying's chest, but he swallowed his words back, feeling his throat dry and the familiar sticky sensation on his back seemingly returning.

Lu Yang took in their reactions, a faint smile playing on his lips, as if he had everything under control.

Compared to that Mr. Wu Ying, the Mr. Lu Hongliang, who shared the same surname as him from 500 years ago, was the one who truly saw through everything. Cooperating with his Century Group would definitely not be a loss; with the Century Group's reputation, Xiaolingtong would only go further and achieve even greater glory in the future! (End of Chapter)