After divorce, I can hear the voice of the future

Chapter 619 The Price of Growth

"This Mr. Lu is not an easy person to talk to, but you should be an exception."

Yu Dazui's eyes showed a thoughtful look. He sensed that President Ren seemed to have something in mind, so he offered to help him arrange a meeting with Lu Liang.

About two years ago, when Tianxing Technology was just starting out, Lu Liang came to Shenzhen while wielding a hoe everywhere. They had a drink together.

There was also the 5G voting scandal last year, during which they tacitly targeted Lenovo as a primary target. The two also frequently communicated privately and were considered fairly good friends.

"Let's talk about it later. It's not time to ask Lu Liang for help yet."

Mr. Ren shook his head. It's best to solve some things yourself if possible, because asking for help will always leave you indebted.

Yu Dazui seemed to be deep in thought, but said nothing more.

If they can't solve something and need Lu Liang's help, then they'll have to pay a heavy price.

Therefore, it's best to avoid it if possible.

At the same time, Lu Liang received a call from Wei, the CEO of Shenlan. The two had a pleasant conversation and confirmed a time to meet the next day.

"The results seem pretty good, so Deep Blue isn't planning on doing anything more." Lu Liang smiled and decided to give Deep Blue a small discount.

Tianxing's self-developed radar laser mounting kit was originally planned to cost 15,000 yuan per set. Since Deep Blue was the first to surrender, they should be given a 30% discount.

"Even with a 30% discount, it seems there's still a profit of nine thousand yuan for every car sold."

Lu Liang smiled, already tasting the sweetness of success. The radar laser mounting kit, which cost only 1500 yuan, was being sold for ten times the price.

He just hadn't expected that while the car business was still losing billions of dollars every month, the software business was starting to turn a profit.

“Platforms are the most profitable businesses in the world, and software platforms are even more so, with virtually no investment required for huge profits,” Hu Weiwei said softly.

Tianxing Car Infotainment has started to turn a profit. Once this news gets out, the company's valuation will likely rise even higher.

The shares she holds will also become more valuable.

"A 10% market share is still unstable. A higher market share is needed to consolidate our market position. In the high-end market, there is Li Auto and NIO, and in the low-end market, there is Wuling. What we lack is the best-selling mid-range market segment of 10 to 15 yuan."

Lu Liang looked thoughtful, then suddenly turned his gaze to Weltmeister. The Weltmeister EX5 sold over 10,000 units in May, ranking fourth in the May new energy vehicle sales chart.

If we can acquire WM Motor, Tianxing Car Infotainment's market share could likely increase by another 3 percentage points.

"Shen Hui is a tough nut to crack." Wang Xiaofeng handed over Shen Hui's personal information from WM Motor.

Ten years ago, Shen Hui, then thirty years old, was already the general manager of BorgWarner China, a world-leading automotive parts company.

Shen Hui is also known for his expertise in capital operations. His most notable case is Geely's acquisition of Volvo, which is known in the industry as "a snake swallowing an elephant".

It can be said that Shen Hui is one of the few professional automotive experts among the new car manufacturers, which provides strong support for WM Motor's financing.

Having secured $10 billion in angel investment and subsequently attracted investment from Tencent, Alibaba, and Baidu in several rounds of funding, Wei Xiaoli has raised over 230 billion yuan in just three years. Compared to Wei Xiaoli, Wei Xiaoli is a relatively minor player.

"Could we get WM Motor to install our in-vehicle infotainment system through capital investment?" Lu Liang asked.

Wang Xiaofeng suddenly said, "President Lu, perhaps we don't need to go through all that trouble. If we just wait patiently for a while, Shen Hui will come seeking help."

Lu Liang raised an eyebrow: "What do you mean by that?"

"WM Motor has a high rate of spontaneous combustion, reaching approximately 12,000. To date, out of 105,300 units sold, 23 vehicles have spontaneously combusted. However, WM Motor has suppressed the relevant news."

Wang Xiaofeng took out the information he had obtained from a friend: "Mr. Lu, please take a look. This is WM Motor's store plan and production plan for this year."

"A plan for 300 stores? A sales target of 25 units?" Lu Liang's eyes widened, and he couldn't help but rub them, thinking for a moment that he had misread it.

Tianxing Auto only has 225 stores, and its production plan for this year is tentatively set at 14 units. Where does WM Motor get the confidence to play like this?

"Perhaps it's because of us." Hu Weiwei looked strange, clearly having heard some rumors as well.

Last year, WM Motor had only 78 stores, the most among all brands, but its presence was not strong and it was often overlooked.

This year, their plan to open 225 stores was implemented, and soon after, news broke that WM Motors planned to open 300 stores.

Clearly, they didn't want Tianxing Auto to stand out alone. However, when it comes to generating public attention, Shen Hui is no match for Lu Liang. Despite spending money, he still has little presence.

Lu Liang pondered for a moment, then his eyes suddenly lit up: "Is WM Motor's cash flow very tight?"

Their initial plan for the 225-store project was to invest $18 billion, but they ended up over budget by $2.2 million. This suggests that Lu Liang believed that as long as the money was spent wisely, the amount spent didn't matter much.

If it were any other company CEO, the chances of Zhuo Yifan being eliminated would be almost 100%.

WM Motor's plan to open 300 stores requires a minimum of $25 billion. Like them, it also builds its own factories. To achieve its annual production plan of 25 units, the production line will also require a minimum of $15 billion.

The expenses in just these two areas amounted to $40 billion, which is equivalent to 272 billion yuan.

According to publicly available financing information, WM Motor has only raised a little over 230 billion yuan to date.

"How much money does WM Motor have in its accounts? And where did they get the money from?" Lu Liang asked in quick succession.

"At the end of April, WM Motor conducted a $5 million financing round. According to the information disclosed at the time, its cash flow was about 28 billion yuan."

Wang Xiaofeng picked up another document: "I asked a third party to investigate, and WM Motor's debt is as high as 289 billion yuan. Their guaranteed monthly loss is 22 billion yuan."

Lu Liang said, "Assuming that WM Motor's financial situation disclosed at the end of April is true, after the financing, they only have 62 billion yuan in their accounts. If they lose 22 billion yuan per month, this amount of money won't even last three months, right?"

Wang Xiaofeng nodded: "If WM Motor raises funds again next month, it means their cash flow is already very tight. If WM Motor does not raise funds next month, it means they are committing financial fraud. Then the internal situation may be worse than we imagine."

WM Motor's current situation is not optimistic. It wants to learn from Tianxing, but it does not have a financial backer like Lu Liang.

Unless their sales continue to rise until WM Motor overcomes its financial crisis.

Otherwise, WM Motor is very likely to become the first new energy vehicle startup to be eliminated from the market.

While building your own factory is advantageous, it's not something everyone can handle. Otherwise, Wei Xiaoli wouldn't have tacitly agreed to outsource production.

Tianxing Auto would have gone bankrupt eight hundred times over if it weren't for Lu Liang's continuous financial support.

They now simply need to wait for good news and the opportune moment to offer timely assistance.

If they don't have the opportunity, they can still manufacture it.

The spontaneous combustion rate of 2 is really not low, far exceeding the industry average by 4 times.

"As fellow new energy vehicle companies, we should prioritize the overall situation and not jeopardize market development for our own selfish desires."

Lu Liang sighed and said, "However, consumers still have the basic right to know. Simply hiding things isn't a solution. We can't just close our eyes and pretend we didn't see anything, right?"

"Mr. Lu, you're right."

Qin Siyuan understood immediately and quickly smiled and agreed.

He understood: WM Motor's problems are WM Motor's problems, not industry-wide problems.

“As a member of the industry, and with President Lu being the creator of the largest new energy industrial park in the country, we at Tianxing should stand up to protect the rights and interests of consumers,” Wang Xiaofeng said with a smile and a righteous air.

If you want to get your hands on something, that's called plundering or extortion. But if it's for the development of the industry, that's called having a noble cause.

Just like Emperor Yongle (Zhu Di) of the Ming Dynasty, who wanted to attack the Xiongnu in the north and expand the territory, but was embarrassed to send troops without a reason, he searched through history books and finally found the Siege of Baideng more than a thousand years ago, so as to find a righteous excuse for his northern expedition.

In ancient times, having a legitimate reason for war was an important military strategy, as it could boost the morale of the army and the sense of identity among the people.

The same applies in modern times. WM Motor has a high rate of spontaneous combustion and is in dire financial straits, so it could collapse at any time. When they step in, they are definitely a righteous force.

As for the price WM Motor paid to get them to take action, the general public doesn't need to know.

Just like the Chinese nation has loved peace since ancient times, it is puzzling why its territory keeps expanding.

"Let's wait a bit longer. I should be able to find some time by the middle of next month."

Lu Liang smiled, exchanged a few words, and then waved for Wang Huqin and the other two to leave.

He stood in his office on the 33rd floor, looking down at the neat and uniform factory workshops and the orderly rows of transport vehicles.

Lu Liang finished his tea and sighed, "Why am I becoming more and more hypocritical? Perhaps it's the price of growing up."

　There are no eunuchs, and there will be no eunuchs.

　　I've been back in my hometown lately, and there are a lot of miscellaneous things to do every day.

　　After all, Xiao Lin is the Eddie Peng of Guangdong, a handsome young man known far and wide. Matchmakers who come to introduce him to potential partners practically wear down his doorstep.

　　
　
(End of this chapter)