What's wrong with me being a rich man?

Chapter 513 Primary and Secondary
Strong signs of change are emerging in the short video market, which is directly facing Yu Xing.

He received the news during a meeting at the Silicon Carbon Group, and then sighed, noting that Alibaba's decision-making was indeed swift.

When Cui Zhiyu and the others saw their boss's behavior, they assumed that something had gone wrong with the Series C funding round.

Yu Xing gave a brief explanation and then continued the small-scale meeting with supply chain manufacturers.

The meeting room was not only filled with people from Silicon Carbon Group, but also with executives from Zhibo Company and Konghui Technology. One of the companies makes millimeter-wave radar, and the other makes air suspension. Both of them have increased their investment under the impetus of Yu Xing and Silicon Carbon Group.

However, the "Kyushu" that is about to be launched on the market does not include products from these two companies.

The issue of air suspension itself involves a great deal of uncertainty. Although it is not required that Konghui Technology can completely improve the quality from the start, the current quality fluctuations it exhibits make it impossible to enter the supply chain of Silicon Carbon Group.

For millimeter-wave radar, there are some additional factors involved.

It is a component that is not expensive but is not sold by foreign suppliers. Given this situation, the Silicon Carbon Group had no choice but to adopt the radar technology that was developed domestically.

However, as Zhibo Company was indeed proven to have research breakthroughs and the potential for mass production, coupled with the heavy losses suffered by the Bosch Group in the industry crisis triggered by the mountain peak, and the fact that the Silicon Carbon Group adopted Bosch's wire control system, it explored the possibility of further developing millimeter-wave radar business in China.

Bosch Group holds the world's largest market share in millimeter-wave radar, but its total revenue this year is $500 billion. This segment, which accounts for around $10 billion of its revenue, is neither a large nor a small percentage.

Although we previously supplied parts to brands like Audi and Volkswagen, now that we're not supplying Chinese brands, they really need to have their own parts. So it's better to shift from blocking them to crushing competition.

From the perspective of the Silicon Carbon Group, we absolutely support Chiba's breakthrough, but considering the stability of the first model's launch and the superior hardware capabilities, we will still include Bosch's forward and rear corner radars in the procurement.

一辆“九州”需要1颗77GHz前向雷达和2颗24GHz后角雷达，用于实现自适应巡航、紧急制动等功能，一套下来包括基础算法的采购价是900美元。

Lingang has been in close communication with Bosch Group and the final solution is that if 5 sets can be purchased, the price will be reduced by 7%; if 10 sets can be purchased, the price will be reduced by 16%.

In addition, Bosch Group has other charges, such as $15 per set for target classification algorithms, $10 per set for sensor health monitoring, and $5 per set per year for data support.

Make a quick buck from hardware, and then make a steady, long-term profit from technical services.

Silicon Carbon Group did not use the additional paid project, but instead used the results of the joint research and development with Chiba Company. However, for the latter, the products were not sold, the accompanying technology was used, and there were unexpected changes, which made it particularly difficult.

Therefore, Su Yongqiang, the president of Zhibo Company, had to come and give an explanation.

He came representing the company's interests, and his intention, if not to be forceful, was to demonstrate a serious attitude.

However, when Kong Hui Technology, which manufactures domestic air suspension systems, came over, Su Yongqiang, who was closer to him, found it difficult to say anything unpleasant to their faces. He could only listen silently to President Yu's explanation of the carbon silicon group's policies.

The reputation of the first model is very important, and it also needs to generate its own revenue to make the entire group fully operational, blah blah blah...

Silicon Carbon Group is facing difficulties, we need to be understanding, etc...

That makes sense, and Su Yongqiang saw the executives at Konghui Technology nod in agreement, indicating their understanding. But in his heart, Su Yongqiang kept complaining. Konghui Technology's air suspension technology couldn't be mass-produced yet, while his own millimeter-wave radar had already achieved initial mass production capabilities. Konghui Technology wasn't causing any delays, but Su Yongqiang was truly being delayed. If things continued like this, he might as well just give up the company.

Su Yongqiang maintained his composure and did not want to show his anger and grievances to outsiders.

However, as soon as the meeting ended, he immediately walked up to President Yu, who was about to leave, and said firmly, "President Yu, the Silicon Carbon Group's cancellation of the purchase is a breach of contract!"

Although Zhibo Company accepted investment from Silicon Carbon Group, it still operates independently, and there is a contract between the two parties. Under the current circumstances, he can take the contract to court without any problem.

Yu Xing nodded slightly: "I know, but the radar part still has to take into account the overall interests of the vehicle."

Just as Su Yongqiang was about to refute this point, he noticed President Yu's gaze and suddenly remembered his actions of bringing people to Zhibo Company two years ago to replace the president. He couldn't help but feel relieved and instead considered more appropriate wording.

Yu Xing didn't notice Su Yongqiang's expression and pondered, "Let's see when is the right time to make Zhibo Company part of the Silicon Carbon Group. Bosch Group has changed the way it competes. Now they're not blocking us, they're dumping us. Going it alone is not a good strategy."

Bosch's radar price is still higher than that of Chiba, but only by 10%. Objectively speaking, a set from Bosch costs 6000 yuan, while a set from Chiba costs 5400 yuan. Car companies with the capability and demand will likely choose the former.

Furthermore, Bosch clearly has more room for pricing, and it is far superior to Chiba Corporation in terms of both economies of scale and subsequent fees.

Based on this situation, Yu Xing believed that Zhibo Company's combat effectiveness could only be enhanced if it was placed under the umbrella of Silicon Carbon Group in the next stage. As for the funds it had leveraged during its development over the past few years, they could be handled as long as Silicon Carbon Group's sales increased next year.

If the situation becomes truly difficult to handle, Red Falcon Capital should actively assume a supplementary, coordinating, and facilitating role.

Su Yongqiang was taken aback when he heard this. President Yu really wants the company?
After hesitating for several seconds, he said, "Mr. Yu, so..."

Yu Xing looked at Su Yongqiang.

Su Yongqiang hesitated for a while but didn't come up with a plan on how to say it.

Yu Xing patted Su Yongqiang on the shoulder: "The market is changing, and we need to explore the most suitable development path together. I went to Shenzhen to see BYD's new car before. That model is also positioned at over 20 yuan, but it only has cruise control. I asked Cui Zhiyu to make a connection and see how Zhibo Company can effectively handle this part of its production capacity."

To be honest, it's quite difficult. BYD's Tang has already reached a price point of over 20 yuan, yet it still only uses its own sensors for cruise control. It would be even more difficult for other domestic automakers to purchase Zhibo's millimeter-wave radar.

If we shift our focus away from passenger cars, could commercial vehicles be considered?

There has been a brief discussion within the Silicon Carbon Group about this, with the consensus that commercial vehicles do not have an urgent need for it, as they are equally sensitive to costs.

Therefore, if Chiba Company wants to develop, it can only reduce costs and rely on the reputation of making features in mid-to-high-end models, but this brings it back to its current need to compete head-on with the Bosch Group in the market.

Yu Xing didn't elaborate on these points, as he still had other matters to attend to. However, Cui Zhiyu carefully discussed the internal analysis with Su Yongqiang, concluding that Zhibo Company's immediate growth wouldn't be guaranteed once the product was developed; rather, it required mutual cooperation and overall planning.

Su Yongqiang shifted his perspective slightly to consider the matter. Although he still complained about the "overall planning," he had to admit that Zhibo Company was indeed in a rather awkward position at this stage. Unlike new energy vehicle companies like Carbon Silicon Group, which received support, domestic policies had already attracted the attention of many venture capitalists. Upstream suppliers like millimeter-wave radar were still left out in the cold.

Zhibo Company has been able to develop to its current stage thanks to the support of both the Silicon Carbon Group and the funding and policies provided by Lingang.

Su Yongqiang returned to his company office, and after much contemplation, he had no choice but to accept reality.

The next day, he suddenly received a call from the Silicon Carbon Group. "President Su, let's go to BYD and Geely together and see if there are any sales opportunities."

Su Yongqiang hadn't expected silicon carbide to develop so quickly, which fueled his even greater hopes: "Have you contacted them yet? Are they interested?"

The voice on the phone sounded somewhat helpless: "President Su... had no interest and hadn't made any arrangements. She was initially unwilling to get involved, but President Yu personally called last night, which gave us a chance to talk. Let's do our best on this matter."

Su Yongqiang's worries returned: "What should we do then?"

There was a pause on the other end of the phone: "President Su, you're Zhibo's boss, you should be the one to say what to do..."

Su Yongqiang said confidently, "President Yu said that he would have Carbon Silicon Group acquire Zhibo Company later, so of course I had to ask what to do!"

The voice on the phone paused for a moment before finally saying, "Anyway, let's try it out together first. Even if we do acquire it, we can't let President Yu handle it all himself. You have to take on the responsibilities of your department."

Su Yongqiang thought it made sense. After asking a few questions about the schedule, he saw the other party was about to hang up but suddenly called out, "Wait, wait, don't hang up yet. I heard that Silicon Carbon Group has plans to go public quickly. Is that true?"

The person on the other end of the phone said with a hint of helplessness, "There are all sorts of opinions, I don't know, maybe."

After ending the call, Su Yongqiang reconsidered the possibility of Silicon Carbon Group acquiring Zhibo Company. He suddenly thought it wasn't a bad idea. If he and his company were to go public on their own, he didn't know when they would be able to. If they could get on the fast track of Silicon Carbon Group, they might soon become a listed company.

Of course, whether or not a match is made is probably beyond one's control.

……

Silicon Carbon Group needs to both accelerate its market expansion and consider how to further enhance its competitiveness in the future.

Zhibo Company and Konghui Technology are just two of many jobs.

Yu Xing believes that increasing investment in research and development or joint research and development is actually an inevitable path.

Ultimately, a globally renowned T1 supplier like Bosch cannot work more closely with Silicon Carbon Group. Even the development of software interfaces for data fusion is subject to fees, and in the future, Bosch will inevitably use this to share the greater value of multi-sensor data fusion.

Given this, as long as the silicon carbon group can initially establish a foothold, it would be better to change from "having no choice" to "being proactive." As for the cost of this strategic stance, the stock market is clearly well-suited to bear it.

However, the various plans of the Silicon Carbon Group still need to be put into practice based on market performance after the Spring Festival.

After hearing about Alibaba's "Leyin" initiative, Yu Xing spent a few days trying out this short video app that collaborates with Weibo. He felt that although the interfaces were similar, the way information was pushed was quite different.

He asked Lü Haiying and others for their opinions on this matter and found that everyone was very calm.

Lü Haiying further believes that the traffic diversion from Weibo to "Leyin" may not be a good thing. Like "Miaopai", which was previously exclusively embedded in Weibo, its development was parasitic on the traffic of many celebrities, and its content was also constrained by the performance of the user group.

In other words, "Leyin" + "Weibo" is likely to become a larger version of "Miaopai", rather than the full-format short video platform that Alibaba wants.

If the user group that creates the content has too narrow a demographic, the content produced will not be able to attract a wider range of potential users.

Yu Xing felt that this analysis made a lot of sense. Douyin has been developing quietly since its launch, trying its best to seek a broad user base mainly composed of young people, and now it has indeed gained more content.

Douyin is currently preparing to build a larger user base and then conduct the same kind of viral marketing campaigns that WeChat, WeiChat, and Weishi have all done during the Spring Festival.

The industry now has a fairly conventional feeling about the Spring Festival activities and knows what Douyin is going to do. It generally feels that it may be another "Weishi"-style rise and fall. Tencent disbanded Weishi last time because the daily active user scale dropped too much after the Spring Festival activities.

Reaching a high daily active user (DAO) rate is easy, but maintaining that DAO status is a question that everyone has been researching.

On the last day of October, Yu Xing had just finished meeting with the senior executives from CATL and could still see their departing car when Cui Zhiyu's voice came from beside him.

"President Yu, there's something I need your advice on." Cui Zhiyu seemed somewhat cautious.

"How about you come with me to the Guangzhou Auto Show next month?" Yu Xing said with a smile, first mentioning the itinerary, and then asked, "Is there anything that you, President Cui, can't decide?"

Cui Zhiyu, the vice president of Silicon Carbon Group, handles many of the company's daily affairs.

Cui Zhiyu didn't joke around; his expression remained serious. "President Yu, the internal audit team mentioned a suspected issue: Mei Hongzhi in the supply chain has a shareholding relationship with a supplier of charging modules. This..."

Before he could finish speaking, he noticed that the smile on President Yu's face had vanished.

Yu Xing paused for a few seconds: "The cars haven't even started selling yet, and you're already eating them? Isn't that a bit too hasty?"

Cui Zhiyu remained silent.

"Handle it as it comes," Yu Xing said calmly. "Replace the supplier that caused the problem. Surely one supplier shouldn't be enough to affect the progress of our new car sales?"

Cui Zhiyu immediately replied, "That's not the case."

Then, he hesitated and said, "Well, Director Mei was promoted from within, he is..."

Yu Xing looked at Cui Zhiyu and said directly without even hearing his name, "If there are any other related issues, deal with them seriously. It's not like you pushed him, is it?"

Cui Zhiyu shook his head: "It was IDG that pushed it."

Yu Xing nodded: "I see. After we find out the truth, we'll notify them directly. I believe that President Xiong and President Zhang won't be angry about this. In fact, it can serve as a model. No matter what, we should wait until we sell the cars and get results before we try to get any benefits."

He changed his mind and said, "First, make sure the supply chain is secure, then investigate. Since there's one, there might be several others like him. After the investigation, we'll see what happens. We'll either dismiss those who need to be dismissed or deal with those who need to be dealt with legally. Once this round of investigations is over, we'll issue another batch of options after the Series C funding round."

Hearing Cui Zhiyu's response, Yu Xing pondered for a moment before sighing, "I'm not a stingy person. We still have plenty of meat to eat and plenty of business to develop. You should pay more attention to the emotions within our organization."

Cui Zhiyu responded again, saying that the bad apples would be removed from the organization and the boss would issue more stock options, so the emotions he was worried about would never appear inside the organization.

(End of this chapter)