What's wrong with me being a rich man?

Chapter 522, Section 281
You dig up my dirt, I'll sue him, and he'll beat you up.

With Alibaba and Tencent shifting their focus, competition in the short video market has rapidly become more complex.

In addition to the intertwined poaching, non-compete agreements, and lawsuits, the impact of competition has also affected the distribution channels of mobile phone manufacturers.

2014 was a period of rapid development for smartphones, with the penetration rate increasing further. Many brands such as Huawei, Xiaomi, OPPO, and vivo emerged in the domestic market. Domestic brands occupied eight of the top ten spots in terms of annual shipments, leaving only Samsung and Apple as foreign brands.

With the 4G wave that started this year, mobile phone sales are destined to reach new highs next year.

The development of Silicon Carbon Data's software matrix is ​​inseparable from the changes in the smartphone market, and it has always maintained close cooperation with mobile phone manufacturers.

However, on December 8th, Coolpad, which had already signed a cooperation agreement for 2015, suddenly announced that the cooperation might not be able to continue due to technical issues.

Upon receiving the news, Zhong Zhiling immediately called Coolpad and, after several inquiries, vaguely learned of the special circumstances surrounding the new cooperation.

As for where the new collaboration will come from...

It wasn't mentioned on the phone, but considering that this matter involves "TikTok," it can only be one of the two companies that have plenty of money.

On the one hand, Zhong Zhiling instructed Vice President Feng Jingfu to fly to Coolpad to mediate, and on the other hand, he reported the matter to his senior.

The contract signed between Douyin and Coolpad involves 3000 million yuan. The two parties adopt the CPA model for settlement based on activation volume. Considering that Coolpad has a market share of over 9% in China this year, it can bring a lot of traffic to Douyin next year.

“The contracts have all been torn up. Coolpad, Coolpad, that’s not fair.” Yu Xing said thoughtfully after meeting Zhong Zhiling at the Silicon Carbon Group meeting that morning. “I remember Coolpad is a listed company.”

He remembered that Coolpad was a publicly listed company, and since Coolpad failed to continue developing in the highly competitive mobile phone market, its stock price was bound to suffer.

In addition, regarding Coolpad, Yu Xing vaguely recalled that it later cooperated with LeEco and was also affected by the LeEco incident.

Zhong Zhiling thought his senior mentioned the listed company because he wanted to make Coolpad hesitant due to its status as a listed company. He said, "It's a Hong Kong stock, but I didn't mention the signed contract to Coolpad. I feel that they don't necessarily want to break up the cooperation. If Alibaba or Tencent were to compete for the built-in position in the phone, it could be a high-price competition."

Yu Xing nodded slightly: "Hong Kong stocks, Hong Kong stocks are great."

Zhong Zhiling further stated, "We don't know what's going on over there yet. I've already sent Feng Jingfu there. If we insist on getting it at a high price, it would probably be going along with our competitors' wishes. After all, we're not as financially capable as those two companies."

Directly intervening in an already signed cooperation at a high price may not benefit oneself; it will certainly harm others.

Yu Xing chuckled: "The open and covert struggles are getting more and more intense. Wait a minute, I'll ask which side it is."

He directly sent a WeChat message to Joseph Tsai of Alibaba, asking if this situation existed.

Soon, the answer emerged: it wasn't Alibaba.

“It’s Tencent again. They’ve been the most aggressive lately.” Yu Xing shook his head. “Try raising the price a bit. Raise the base price from 3000 million to 5000 million. If that doesn’t satisfy Coolpad, then switch to a 3000 million + traffic sharing model. If that still doesn’t work, then there’s nothing else we can do.”

Zhong Zhiling was slightly taken aback: "Douyin won't be popular next year... uh, I see."

The software's built-in partnerships come in different models. Some are settled based on activation quotes, while others involve deeper revenue sharing. The latter is generally for gaming or e-commerce platforms. If users can generate consumption through the pre-installed app, manufacturers like Coolpad can get about 10 to 30 percent of the revenue. In addition, there is some revenue sharing from advertising.

If it's a company the size of Huawei or Xiaomi, the money they receive will be even higher.

According to the data disclosed in its financial report, Coolpad earned nearly 3 million yuan in revenue from this area this year.

If we can divide it up, that would be great.

The problem is that Douyin has no plans for commercialization next year. It will neither allow users to make purchases nor launch advertisements. Once the cooperation model is changed, there will be no way to share the profits. But naturally, Coolpad would not know about this.

Zhong Zhiling had to admire his senior's mind; this was truly a case of "using people to control people" that had been thoroughly ingrained in his mind, and a solution would pop up the moment he had a thought.

Evil people need to be dealt with by other evil people.

He mentally assessed his senior's strategy and added, "After next year, Coolpad's situation may not improve. I heard that 6% of its sales rely on carrier channels, but the Ministry of Industry and Information Technology has already issued a policy requiring carriers to reduce marketing expenses."

60% of Coolpad's sales are customized phones made in cooperation with carriers. Precisely because it relied on this convenient channel in the past, its online operations and offline distribution channels are relatively weak and chaotic.

If problems arise with carrier channels, this brand will face increasingly fierce competition in the mobile phone market.

"Next year is crucial. If we can't determine the winner within a year, it will be difficult later on. So, we should spend the money we need and put it where it's needed," Yu Xing stated. "If the pre-installed market is in a similar situation again, we can handle it in the same way. If you're unjust, I'll be unjust too, and there's nothing more to say."

Zhong Zhiling nodded. Originally, the cooperation between the two sides was going well, with Silicon Carbon Data focusing on volume. However, considering that the pre-installed market was also quite competitive, there was room for cooperation with manufacturers like Coolpad. But now that they were being threatened with competition, this was the only option.

"Tencent has really pulled out all the stops." Yu Xing looked south from the window, as if he could see Liu Chiping's firm determination to win in one fell swoop.

Regardless of any internal constraints Tencent may have faced in the past, judging from the current situation, Tencent's president has thoroughly gathered forces from all sides to try to promote the development of Weishi and curb the growth of its competitors.

Zhong Zhiling laughed and said, "But Douyin's growth rate is still quite good. Looking at the content output of the three apps, Douyin is more comprehensive and dynamic. Leyin has accessed Weibo traffic, fully mobilized celebrity resources, and even created a similar hot list. The fans' ranking efforts are really crazy..."

He clicked his tongue and repeated, emphasizing, "I don't know why it's so crazy, but when I use Leyin to browse short videos, at least half of them are videos that are ranked, and they also compete for things like the number of comments and reposts. It's just like Weibo."

"As for Weishi, I think it has real substance. Xing Ge, I think Tencent has accumulated experience in entertainment content, but it hasn't done a good job of content conversion and distribution yet."

Alibaba started as an e-commerce company, and WeChat closely followed the lead of Wechat. Moreover, it is largely a tool-oriented platform. Now, it is making its own music app and integrating it with Weibo, which is like a stroke of luck.

Tencent has been working in social networking and content creation for many years, and has more experience and resources in this area. However, its internal strategies have changed repeatedly, and its technical algorithms were put on the spot, which led to the "conversion and distribution" that Zhong Zhiling experienced.

“Big companies, of course, deserve respect.” Yu Xing shook his head slightly. “Give Tencent time, and it will definitely be able to adapt the technology and algorithms, and…”

He sighed: "I really didn't expect that Tencent would attach such a high level of importance to Lingang."

The revival of Weishi, the transformation of Weishi, and the burning of money by Weishi all happened faster than expected.

Zhong Zhiling laughed and said, "Brother Xing, this is how we respect you." Yu Xing shrugged. He had previously mentioned Cai Chongxin's straightforward "respect," and Penguin was obviously doing the same, and perhaps even carrying a bit of resentment.

The two chatted for a while about silicon carbon data and Douyin. Before leaving his office, Zhong Zhiling called Feng Jingfu, the vice president who had flown to Coolpad, to give him the solution. He then inquired about the silicon carbon group's preparations for the launch of the new car.

“There are so many things to do,” Yu Xing said hesitantly. “But after being attacked by Alibaba and Tencent, things that I thought I had to do personally don’t seem to be so difficult to handle. Everyone is working hard, and it all depends on how well the market accepts them.”

The competition in short videos is all out in the open. Fortunately, the work of the Silicon Carbon Group has been largely completed, and now it's just a matter of details before it faces the test.

As he spoke, recalling the meeting he had discussed earlier that day, he said to his junior colleague, "Today we discussed the annuity system that Silicon Carbon Group will implement starting from New Year's Day next year. Do you think Silicon Carbon Data needs this?"

“Annuity?” Zhong Zhiling hesitated for two seconds. “It increases costs, Xing-ge, this…”

Corporate annuities are a supplement established on a voluntary basis by companies and employees, with both parties contributing according to different proportions. They are considered a welfare benefit.

For example, if your salary is 1, you contribute 400 and your employer contributes 800, totaling 1200, which is then invested in a bank or fund. This money will be released when the vesting period ends or you retire.

The funds and profits paid by an individual always belong to him/her. However, if he/she leaves the company before the end of the vesting period, he/she can still receive a portion of the funds and profits paid by the company.

Zhong Zhiling's reaction is the most direct impact. The normal five social insurances and one housing fund are enough. The company doesn't need to pay this amount; it will only increase costs.

“I’m not asking for anything,” Yu Xing said, looking at his junior brother’s expression. “Well, it’s not a suggestion either, it’s just… we’re just having a chat.”

He thought for a moment and said, "Carbon Silicon Group is not like your Carbon Silicon Data in the Internet industry. I think the benefits and treatment should be better. I also hope to cultivate more employees who can grow with the company. Ford used to say that it hoped that all employees could afford their own cars. I also hope that the employees of Carbon Silicon Group can have better benefits."

Zhong Zhiling hummed in agreement but did not express his opinion. He simply said, "I think I can hear President Cui and the others objecting."

Yu Xing smiled. He had mentioned this at the meeting this morning, and it had indeed met with opposition, and the reasons were all very practical.

Zhong Zhiling noticed his senior's expression and tentatively asked, "Is the discussion over? Did it pass?"

"I've really convinced everyone on this point," Yu Xing shrugged. "Now I just hope things will be better next year, otherwise there is definitely pressure from all sides."

Because he was busy, and because his senior was busy, Chung Chih-ling hadn't talked much about things outside of work lately. But today he suddenly remembered the scene of drinking with him at a roadside stall.

He didn't say much, only hoping that Silicon Carbon Group wouldn't disappoint this time.

……

The atmosphere at both of the carbon silicon companies in Lingang became noticeably tense in the last month of the year.

On one hand, there's the anxiety about market validation; on the other, there's the over-excitement about intensifying competition.

The complications that Coolpad had created were eventually resolved by resetting the cooperation agreement between the two sides. Instead of choosing the new offer of 5000 million, the other party opted for a revenue-sharing scheme that seemed to bring more profits.

Yu Xing did not have any contact with anyone from Coolpad, but he still kept this friendly exchange in mind, thinking that there would be a time when they would meet again.

However, the image of Guo Shanfeng only flashed through his mind and he did not intend to appear in the near future, but he suddenly appeared in the media news on December 18th in the form of a reappearance.

On December 18th, at 12 PM, Yu Xing had just returned to the company when he suddenly heard the voice of his secretary, Zhang Yangxu.

"Guoshanfeng has made another move. Tsk, I didn't expect it to be BYD this time."

Yu Xing turned around in astonishment and said incredulously, "What? What did you say?"

Zhang Yangxu repeated, then said, "BYD's stock price has started to plummet."

"Guoshanfeng issued a short-selling report on BYD? The stock has already started to plummet? Wait a minute..." Yu Xing was both incredulous and completely bewildered. "What are you talking about?"

“Uh, I didn’t see any short-selling report. It’s just breaking news. There are similar comments on Weibo and Baixiaosheng. Hmm, Guoshanfeng’s official website doesn’t seem to be making any moves either.” Zhang Yangxu checked the messages on his phone. “But BYD’s stock price has plummeted. It’s already down 20%.”

Yu Xing was taken aback!
He hurriedly returned to his office, asking Xiaoying questions while browsing the news circulating online.

As a result, Liu Wanying denied the involvement of Guo Shanfeng, but BYD's Hong Kong stock did indeed plummet in the afternoon. It seems that this unusual trend led people to believe that Guo Shanfeng had once again targeted Chinese concept stocks.

The plunge in Chinese concept stocks is not necessarily a sign of a market crash. However, this year, the market crash has earned the nickname "King of Short Sellers" and the storm it stirred up in Europe has attracted too much attention. This sudden and unexplained plunge has led people to directly pin the blame on it.

As for why there was no short-selling report on Guoshanfeng's official website, details have been added: it was because an email sent by Guoshanfeng to the media was leaked, which led to the advance of short-selling funds.

Yu Xing: "..."

Liu Wanying: "..."

After the two finished reconciling the accounts, they looked at the detailed accounts online and found them absurd.

Yu Xing confirmed that Shan Feng had not made a move, and after checking with his peers, he saw no short selling targeting BYD. He also inquired about the fundamentals and found no problems. Meanwhile, rumors were circulating in the market that Buffett was reducing his holdings.

"This... doesn't seem right." Yu Xing pondered for ten minutes before discussing it, "The money from buying Alibaba last time can still be used. I think we can give it a try. What do you think?"

"The little stock market genius from Lingang is getting restless again, isn't he?" Liu Wanying said, but she also felt strange and surprised. "I won't offer any advice. If you lose money, you lose money."

After much deliberation, Yu Xing concluded that he would likely be stuck with the same situation as Alibaba for a while, so he might as well try some speculation.

He had just made his decision when new developments emerged in the market.

BYD quickly denied the allegations, claiming that Buffett had not reduced his holdings and that the "Oracle of Omaha" still held 2.25 million BYD H shares. They also denied any other similar claims of huge exchange losses related to their Russian operations.

However, it denied this and that, but never denied the involvement of the mountain peak, which fueled the rumors of the short-selling king's attack.

(End of this chapter)