What's wrong with me being a rich man?

Chapter 505 Thank you, Guo Shanfeng

Competition in the short video market is gradually intensifying, but there have been no significant changes so far.

Some sing, some are built-in, and some are redirected.

Yu Xing didn't quite understand the intentions of the suspected adversary in making contact.

During his trip to Shenzhen, regarding the competition from Douyin, he noticed Ma Chuan's statement that Leyin might change its development direction. Coupled with Alibaba's own illustrious resources, the related pressure is very likely to increase.

As for penguins...

Wu and Shu resisted Cao?

Yu Xing felt it hadn't come to that point, but after thinking about it over and over again and still not understanding, he simply stopped thinking about it.

After returning to Lingang, he called Xiong Xiaoge again, expressing his willingness to contact Tang Kui of FountainVest Partners and requesting a meeting arranged by Xiong.

Xiong Xiaoge was puzzled by President Yu's change in attitude: "You've been in contact with Tencent? Is there something fishy going on?"

“There’s no clue. We’ll just stay put and deal with whatever happens.” Yu Xing said decisively. “Anyway, he wants to talk to Carbon Silicon. There are two Carbon Silicon companies in Lingang, and the Carbon Silicon Group needs to talk to them. It’s a convenient thing.”

Xiong Xiaoge pondered.

The Series C financing of Silicon Carbon Group has been delayed. The goal of this funding is to make a sprint before mass production, which is quite important. IDG, Capital Today, Qiming Venture Partners, and Zhejiang Investment Group have all tacitly agreed to join the Series C financing because of their financing of Douyin.

The problem is that Silicon Carbon Group is asking for an exorbitant amount this time, directly demanding a financing of $10 billion, claiming it to be the last round before its IPO.

The four organizations communicated privately and all felt that this was far too "hypocritical".

Corresponding to the scale of financing is the $40 billion valuation proposed by Silicon Carbon Group, which is also considered too high. This figure is acceptable for the four companies that already hold shares, but it is too high for other institutions that have been approached.

In comparison, BYD, which is already listed, has a market capitalization of only $180 billion.

The Series C funding round for Silicon Carbon Group was therefore very difficult.

"President Yu, are you willing to loosen the conditions?" After thinking it over, Xiong Xiaoge believed that Lingang was forced to lower its valuation and financing conditions due to the requirements of mass production.

“No, it’s Red Falcon Capital that found an overseas consortium willing to invest,” Yu Xing said. “It’s expected to be around $2 million. State-owned assets in Shanghai will also contribute some money. Even if we can’t raise $10 billion, we’ll raise it like this first. If it doesn’t work out, we can always raise it again next year.”

Xiong Xiaoge was taken aback: "2 million US dollars? Red Falcon Capital, this... Mr. Liu is indeed very capable."

He never expected that Liu Wanying could bring in funds from overseas.

Yu Xing smiled and said, "It's also because our Silicon Carbon Group performed quite well."

Xiong Xiaoge expressed some regret, mentioning a piece of news he hadn't originally planned to share: "Well, Mr. Yu, I was thinking of waiting until the communication was more complete before bringing it up. This round of financing for the Silicon Carbon Group is progressing rather slowly. Last week, I took a team to Europe and met with several institutions, and they showed some interest in getting in touch."

Yu Xing was taken aback: "President Xiong, you...you're quite capable, aren't you? A European organization? You have a wide network of connections."

He certainly knew what Red Falcon Capital was all about. Carbon Silicon Group couldn't wait any longer, so they naturally had to step in with the guaranteed return from the peak. However, considering the potential impact, they didn't want to be too conspicuous.

Similarly, seeing the difficulties encountered by the silicon carbon group before mass production, Shanghai's state-owned assets also came to help, not wanting the new energy project in Lingang to collapse.

"It's still uncertain whether it will work, but since Red Falcon Capital has managed to lobbied for such a large sum of money, the chances of success are higher," Xiong Xiaoge said with a smile. "To be honest, it's not just because I know some friends, but also because the European car industry has been so turbulent this year. Many institutions believe that the diesel passenger car business will be extremely sluggish and are considering a transition to clean energy."

He said with a smile, "We have to thank that guy who went over the mountain. If it really works out, we'll be indirectly benefiting."

The storm surrounding European automakers continues, with many executives reportedly facing lawsuits. The diesel emissions scandal and two market monopolies have implicated numerous interests.

The most direct beneficiary is probably Tesla, a representative of new energy vehicles, whose stock price has repeatedly hit new highs amidst the storm. Xiong Xiaoge chatted for a few more minutes, then suddenly realized there was no sound on the other end of the phone.

"Hello, Mr. Yu, is the signal bad? Hello?"

"I can hear you, I can hear you." Yu Xing coughed while holding his phone. "I didn't expect it to be related to the problems European car companies are facing. I have to thank that guy."

Xiong Xiaoge joked, "Tsk, it seems that the mountain peak has really left a serious shadow on your car company. Even someone like you, President Yu, doesn't dare to mention the name directly, instead saying 'that person.'"

Yu Xing was both amused and exasperated: "Yes, I dare not, I dare not. Well, the country does provide a lot of support for new energy. More funding is good and can also alleviate the pressure on the supply chain."

The silicon carbon group is under great pressure, and the pressure on related industries is also great. If the market end cannot pick up, the upstream will continue to bear the pressure.

Knowing this, Xiong Xiaoge suggested, "President Yu, how about this, send a few more people from your Silicon Carbon Group to come with me to Europe next week. I alone may not be able to fully explain the current situation of Silicon Carbon Group."

He continued, "If Europe ultimately fails, don't be discouraged. The Saudis are also very wealthy, and we can talk to them. There have been devastating blows to traditional gasoline car manufacturers, and the transition to clean energy is a recent hot topic."

Diesel vehicles are no longer viable; we need to accelerate the transition, either to hydrogen energy or electric vehicles.

Although the valuation of the silicon carbon group located in Lingang is high, it is no longer as empty as it was when the project was first started. Xiong Xiaoge believes that if foreigners are willing to come and inspect, they will be very surprised to see at least two large die-casting sets.

Yu Xing sincerely replied, "Okay, thank you, Mr. Xiong."

"You're too kind. There's no need for formalities between us." Xiong Xiaoge had already invested heavily in the Silicon Carbon Group, so he naturally wanted to find a solution. He said with a smile, "If you want to thank someone, thank Shanfeng."

Yu Xing said somewhat helplessly, "Alright, thanks, Guo Shanfeng."

A sum of money that comes directly from the mountain peak, a sum of money that may come indirectly from the mountain peak, plus the money that was originally intended, together would surely be able to bring in those hesitant funds.

Yu Xing doesn't necessarily need $10 billion; he just wants to ensure smooth mass production.

He sat in his office and chatted with Tang Kui, the boss of Fangyuan Capital, who had called him. Finally, looking at the documents on his desk, he casually flipped to a blank page and wrote down five words in one stroke: "Thank you, Guo Shanfeng."

The best way to express gratitude after overcoming obstacles is to ensure that the funds are used to their fullest potential.

Yu Xing crumpled the paper into a ball and threw it into the trash can. After thinking for a while, he selected four people who could go to Europe to participate in lobbying, hoping they could help the company make up for its funding shortfall as soon as possible.

Then, in the afternoon, he convened another small meeting to formally discuss the proposed price of 34 to 35 yuan.

As expected, strong objections quickly arose in the office, and the reasons were all quite valid.

Yu Xing emphasized the economies of scale and the leverage of subsidies, expressing this idea quite firmly.

"That depends on sales volume." Cui Zhiyu's expression was grave. "President Yu, if sales don't meet expectations, it will have consequences in many ways. What will we do then?"

Yu Xing said matter-of-factly, "I'll carry it."

Cui Zhiyu wasn't trying to pressure his boss; he just wanted to emphasize the seriousness of the situation: "How can we handle this?"

Yu Xing replied, "Sell the listed company to cover the losses."

Cui Zhiyu and Hu Zhengnan looked at each other, realizing that it was a brother unit that had come to help. Well... okay.

　I've been having hand pain due to tenosynovitis lately. It started with my right hand, but then I tried using my left hand more, and now my left hand hurts too... so I have to spend more time typing. I'll go to the hospital during the National Day holiday to get some shockwave therapy.

　　
　
(End of this chapter)