What's wrong with me being a rich man?

Chapter 705 Behind the Scenes (4k)

The release of the interim report by Silicon Carbon Group immediately quelled the controversy.

Prior to this earnings report that exceeded market expectations, the share price of Silicon Carbon Group was HK$79.64. In just two days, it broke through the HK$100 mark, and the closing price the following day was HK$108.36, a surge of 36%, with its market value soaring from HK$662.5 billion to HK$901 billion.

Converted to US dollars, Silicon Carbon Group's market capitalization also broke through the $100 billion mark for the first time, reaching $116.11 billion.

In just two days, the previous debates have become like noise, and the topic of public opinion has smoothly shifted to something else: what could the future of silicon carbon look like?

The annual sales target is 15 vehicles, which means revenue of over 600 billion yuan.

This 600 billion was all squeezed out of the pockets of manufacturers such as Toyota, BMW, Mercedes-Benz, and Audi!
If they're going to cut 600 billion this year, will they cut 1000 billion next year?
Silicon Carbon Group has made it clear that it will soon launch a five-seater SUV, which will enter a more mainstream market competition. At the same time, the interim report also disclosed that it is developing a new model and has reached a cooperation agreement with a new factory in Ningbo.

All information indicates that this new energy vehicle company located in Lingang is quite optimistic about future growth and has not stopped its expansion.

Because of this interim report, CCTV, which had previously suspended its coverage of Yu Xing, has once again dispatched a filming crew to Lingang to conduct in-depth interviews with the leading company in China's new energy industry, which seems to symbolize a new public opinion signal.

At 5 p.m. on August 16, the day after the market closed following the release of the interim report, Silicon Carbon Group held a conference call to share the company’s financial information and future strategic plans with investors and analysts. President Yu Xing, Vice President Cui Zhiyu and other senior executives shared the company’s financial information and future strategic plans with investors and analysts.

Yu Xing gave a two-minute speech, and then spent five minutes emphasizing the significance of the carbon silicon automotive business's gross profit margin exceeding 20%, as well as the production capacity of the Lingang Phase II project and the preparations for the Ningbo factory.

Cui Zhiyu described the current sales network construction of the Silicon Carbon Group, the regional coverage of its directly operated stores, and its future plans to expand into lower-tier markets.

The executives of the silicon carbon management team mainly elaborated on the financial report. After they finished speaking, the institutional analysts who had been holding back immediately threw questions at the head of the company, Yu Xing.

The first question Goldman Sachs analysts asked was about the recently hotly debated battery issue.

"Mr. Yu, what are your views on the much-discussed debate between lithium iron phosphate and ternary lithium batteries? And what are your views on the R&D differences between Silicon Carbon Group and CATL?"

Since Yu Xing held the teleconference, he must have anticipated the problems.

He did not shy away from the issue, saying, "Silicon carbon has addressed this issue many times. We hope to provide consumers with a better user experience while having more safety redundancy. Lithium iron phosphate and ternary lithium are not contradictory opposites for the development of new energy in China. The joint development of different technologies can also bring the market choices that meet their respective needs."

"The disagreement between silicon carbide and CATL is a good thing. We all hope to make better products that are more accepted by the market. The disagreement is not a contradiction, but just a different choice based on our respective positions and needs. CATL is an excellent battery supplier. I want to emphasize again that it is a supplier. Therefore, the products made by CATL are ones that we can purchase."

Analysts from CICC followed suit, mentioning the issue of subsidy reduction for silicon carbon, which is also frequently discussed and belittled in public discourse.

"The reduction of subsidies is part of the healthy development of the new energy market. However, its impact on silicon carbon is relatively limited. There are two main reasons for this: first, our products are positioned in the mid-to-high-end market, and the subsidies account for a very small proportion; second, our cost reduction rate exceeds the subsidy reduction rate."

"As disclosed in the financial report, from last year to this year, our cost per vehicle has decreased by 4 yuan, while the subsidy reduction amount is 2 yuan during the same period. As our scale continues to increase, this impact will further decrease."

Yu Xing answered the question and then laughed, "Don't you have any questions for our senior executives? They're here to address market concerns as well."

Clearly, there are no questions to ask the senior management; the questions are all passed on to Yu Xing.

Guotai Junan Securities analysts used the emergence of the GAC Trumpchi GS7 as a starting point to ask about market competition and the low technological barriers of range-extended vehicles.

“I believe that range-extended vehicles are the most suitable technology for the domestic market at present. Many people criticize our vehicles for being neither gasoline nor electric, but in fact they can be both gasoline and electric, completely solving users’ range anxiety and charging problems.”

"Our products are based on user needs, and range extenders are only one part of the product. Therefore, Jiuzhou can become a best-selling product with a large space, high configuration, and good experience by focusing on the needs of family users. At the same time, we use a direct sales model to ensure a unified service standard and user experience."

"The new energy vehicle market is entering a period of rapid growth, and intensified competition is inevitable. Carbon Silicon is not afraid of challenges; on the contrary, we look forward to working with our competitors to better serve car buyers."

Yu Xing spoke continuously from his speech to his answers until his throat was dry.

"Mr. Yu, I noticed that Silicon Carbon had a fair value change gain of 3 million yuan this period, all of which came from investments in listed companies in the lithium iron phosphate industry chain. Why would Silicon Carbon use so much cash to buy stocks? Will this affect its investment in its main business?"

Another institutional analyst has raised a question whose answer can be found in the interim report.

Yu Xing's answer became more concise: "This is not a financial investment, but a supply chain risk hedging strategy."

After answering several more questions, the Q&A session, in which all the questions were directed at the CEO, was nearing its end.

The last question came from an analyst at CITIC Securities: "Mr. Yu, Silicon Carbon Group has strong confidence in its future prospects. Is your goal to become the number one luxury electric vehicle brand in China?"

Yu Xing denied it: "No."

He paused, then replied, "We already are."

Is Silicon Carbon Group already one?
No?
Regardless of whether it is true or not, with the popularity of Yu Xing's "We are already one" statement, and thanks to the further demonstration by Silicon Carbon Group in this conference call, Silicon Carbon Group's stock price rose again on the third day, by 6.8%, from HK$108.36 to HK$115.7.

After three consecutive days of gains, the market capitalization has approached HK$100 billion, averaging HK$1000 billion per day, completely sweeping away the gloom and turmoil that has plagued the Silicon Carbon Group since its listing.

On the first day of the price increase for silicon carbon batteries, industry insiders were still joking about batteries and discussing the differences between CATL and silicon carbon batteries.

Silicon carbon prices rose for the second day, and the industry quieted down as more attention was paid to various new energy projects.

On the third day of the rise in silicon carbon prices, despite Yu Xing's boastful remarks, everyone was speculating about the silicon carbon group's product development strategies, whether on Weibo, WeChat Moments, or during casual conversations.

A phrase that was popular on the internet quickly permeated the automotive industry: "Don't try to compete with Mr. Yu in operations."

Mr. Yu is indeed managing the Silicon Carbon Group exceptionally well!
After three days of sharp rises, the market is now in a two-day rest period on Saturday and Sunday.

Yu Xing and Liu Wanying both worked overtime on Saturdays, and only on Sunday did they snuggle up on the sofa and chat.

That morning, Yu Xing's mother, Chu Qiying, came over. Seeing the two chatting intimately, she didn't say anything and went back. When she came over in the afternoon, she was surprised to find them still on the sofa, being all lovey-dovey.

Finally, as evening approached, Chu Qiying waited until her son was alone before bringing up a family matter.

“Xingxing, things aren’t too busy at home lately. Your grandpa is getting old, and he’s mentioned a few times that he wants to visit Datong. We talked about it and decided to go when we had some free time.”

Chu Qiying mentioned Grandpa Yu Xing, who came to Haiyan from Datong, Shanxi decades ago.

Yu Xing laughed upon hearing this, "That's great, a good thing! Have you set a time? I'll come along." "Is it inconvenient for you?" Chu Qiying didn't want her son to add to the hype of this matter. Instead, she said, "What are you, some short seller, some industrial investor? If you go along, won't you just be dragged into making investments? We don't want to make a fuss. We just want to travel around and see things. We don't necessarily have to stay in Datong; we might visit other places."

Yu Xing blinked; this was indeed a problem.

In fact, we often receive many inspection invitations from various places. Some are more reliable and related to new energy, while others have no connection at all and are just blatantly trying to get us to spend money.

He thought it over and over, and then realized that his mother wasn't lying, so he said, "Then let's charter a plane. I'll pay for it. Everything, from food and lodging to transportation, will be on my tab. If you want something more glamorous, then..."

Chu Qiying interrupted, "No need for any glamour. Don't talk about me. Your grandfather is old and doesn't care anymore. Anyway, I'll just accompany him. I can't take care of the younger ones, but can't I take care of the older ones?"

Yu Xing chuckled and pointed behind him: "Xiao Ying is standing at the top of the stairs. If you have any complaints, just tell her."

Upon hearing this, Chu Qiying quickly turned around with a smile, only to find that he had missed his target.

She turned her gaze back to her son with hostility: "Even if Xiaoying were here, I could still say something. I don't know what you two are thinking. You're a grown man, so why are you so unhurried? And she just lets you have your way. I really need to give her a talking-to."

Yu Xing then gestured with his lips.

Chu Qiying ignored her son's actions and continued speaking.

A moment later, Liu Wanying coughed lightly, then said with a smile, "You're right, I need to think carefully about how to keep President Yu by my side. Oh dear, I need to criticize myself, I was too hasty."

Chu Qiying turned around and saw that this time they were really on the stairs.

She tilted her head back, still a little embarrassed: "Xiao Ying, you, you..."

Chu Qiying wanted to say that her future daughter-in-law was too career-oriented and didn't care about family status, but then she thought of her company, Red Falcon Capital, and shook her head and took back her words.

"Fine, I'll just take care of the old folks. The children and grandchildren have their own lives to live. You can just raise a robot to take care of yourselves in the future!"

Chu Qiying sometimes overheard the two chatting about all sorts of things, which reminded him of their discussion about the future of robots.

Yu Xing shrugged and watched his mother leave.

Liu Wanying commented, "Robots are great too; this could be a huge untapped market in the future."

Yu Xing wasn't thinking about whether it was a blue ocean or not; what came to mind at that moment was Zhong Zhiling and Lü Haiying's adorable child, and his eyes instantly softened.

Liu Wanying was unaware that she was still discussing the current investment situation in the robotics field.

Just as Yu Xing was about to talk to Xiao Ying about the future of their family, a message popped up on both of their phones.

— "Exposing Liu Wanying, founder of Red Falcon Capital and one of the masterminds behind Guoshanfeng."

A short essay about Liu Wanying suddenly appeared on different channels and spread rapidly because of its content.

Liu Wanying has always maintained a low profile, and the success of Red Falcon Capital is largely attributed in the industry to its backing by the carbon silicon ecosystem. As for the suspicion of short selling, the industry believes it is highly likely to be true, but the main focus of the criticism is on Yu Xing.

At this point, titles such as "the mastermind behind the scenes," "the woman behind Yu Xing," and "an important member of Guoshanfeng" were added to the list, and the rumors quickly spread throughout the industry.

Information spreads so quickly in the mobile internet era that even Chu Qiying returned half an hour later.

Once she entered the living room, she stared at Yu Xing and Liu Wanying, and asked out of the blue, "Really?"

Liu Wanying and Yu Xing exchanged a glance, feeling both helpless and inexplicably amused.

Seeing this reaction, Chu Qiying belatedly murmured, "Indeed, I should have realized it sooner; you two are just a bad match."

She was thinking about the short essay she had seen, which analyzed the timeline of Liu Wanying's founding of Red Falcon Capital after leaving the consulting firm and the start of her son's career, as well as the timeline of her activities at the mountain peak, all of which were interwoven.

Considering Liu Wanying's background and her relationship with Yu Xing, she is naturally highly suspicious, but it is only now that she has been brought out for analysis and dissemination.

Liu Wanying glanced at the contents again, then turned and asked, "What should we do?"

Yu Xing shook his head slightly: "Give it the cold shoulder, no response."

He believes that at this stage, it is no longer important who the members of the Over the Peak team are.

The carbon silicon group is showing strong growth momentum, and its hedge fund has been established. The peak has been relatively quiet recently, and the short selling of the past is over.

Liu Wanying nodded, feeling no longer as uneasy as she had when the mountain peak was first exposed. She just felt that it might be another scheme by short sellers.

Almost at the same time, Xu Xin, the head of Capital Today, who had just arrived home, also saw the short essay circulating in the industry and received indirect inquiries from many friends who wanted to confirm the authenticity of the news.

People were just guessing before, but now it seems like there's an insider leaking information, and the matter might be about to be confirmed.

Xu Xin gave only a vague answer, saying that she didn't know either and was just watching the show.

After dealing with the questions, she looked at the well-defined essay again and felt a strange sense of unease.

As night fell, this unease seemed to come true.

Another short essay has appeared, this time analyzing Li Song's position in Guoshanfeng and arguing that he is also one of the bosses.

Xu Xin utterly disdainful of such unfounded rumors, but her unease was subtly growing stronger.

She put down her phone and prayed silently, "It's not me, it's not me, it's not me..."

(End of this chapter)