Black technology: a super empire spanning two worlds

Chapter 325 [Maximize Production Capacity]

Expanding production capacity 100 times in 15 months is indeed quite exaggerated.

However, this is not something that a major Eastern power cannot do. As the country with the most powerful and complete industrial capabilities in the history of human civilization, it has such an industrial foundation that as long as the money is in place, it can be done without any problems.

If the city where Likang Technology is located can't handle it, then let's build a factory in Linzhou. Linzhou will definitely give it the green light and fully support it.

However, it is foreseeable that if the leaders of the city where Likang Technology is located learn that it is going to build a factory in the neighboring city, they will definitely be anxious and will do their best to meet Likang Technology's demands. They will definitely support the expansion of production capacity with the full strength of the city.

Just kidding, a company like that is extremely rare in any city.

With the backing of a tech giant, Likang Technology's rise is unstoppable. Its contribution to the GDP and economy of its host city is beyond imagination. With its production capacity at full capacity, the city's annual GDP growth rate will not be less than 20% in the coming years. The impact on local employment and industry is self-evident.

How could Likang Technology possibly be allowed to build a factory in Linzhou? It's no exaggeration to say that if Likang Technology wanted to expand its production capacity, and needed to demolish the local municipal building to use the land for factory construction, the local leaders would agree to the demolition without hesitation.

Moreover, it can be demolished and rebuilt, which is like having double happiness.

"Besides expanding production capacity, which is of paramount importance, there is another important matter that cannot be delayed," Xiao Yu said to Zhou Chengyang via video link: "We plan to open 500 directly operated offline stores in major cities across the country."

Xiao Yu added, "In addition, we will open seven flagship stores: one in each of the four major first-tier cities, one in Jiangcheng in the Sichuan-Chongqing region, one in the city where your company is located, and one in Linzhou."

Upon hearing this, Zhou Chengyang nodded repeatedly: "Understood."

Besides expanding direct sales channels, the most important thing about opening offline stores is building a brand and providing after-sales service.

The two talked for a while before ending the video call. Mr. Zhou was going to be busy from now on.

It's worth mentioning that the most profitable part of the consumer-grade personal version of the "Flowing Star Language" product is actually the accompanying hardware. According to the data of the first day's orders, each user spent an average of about 6500 yuan on the hardware.

The net profit of a Flowing Star Language lifelike doll is 1460 yuan. Xiao Yu decided to take only 15% of the net profit margin, as it would be inappropriate to take too much, since the government provides a 25% subsidy and it would not be conducive to popularization.

However, the supporting hardware is not covered by subsidies, and the net profit margin reached 45%, which is definitely high added value.

On the first day, there were more than 1200 million orders, and the purchase of supporting hardware cost 820 billion yuan, which could generate a net profit of 371 billion yuan.

In contrast, while the sales figures for the Liuguang Xingyu lifelike dolls are larger, the corresponding net profit margin is 185.2 billion, which is only half of the net profit of the accessories.

In other words, the most profitable part of the Liuguang Xingyu lifelike doll consumer-grade personal product is actually the sale of its accompanying hardware, with profits equivalent to two lifelike dolls.

Overall, the net profit margin of the consumer-grade personal version of the Flowing Star Language lifelike doll is close to 25%, which is actually quite high.

Mr. Zhou is currently experiencing both pain and joy. The first day's orders are expected to generate a net profit of 556.2 billion yuan. According to the profit distribution plan of 30/70 between the two companies, Likang Technology will take 30%, which is expected to be 166.86 billion yuan in net profit.

Before he latched onto the coattails of a tycoon, how could Mr. Zhou have imagined that Likang Technology could rake in such a terrifying amount of profit in a single day?

……

The capital market was also celebrating. After Likang Technology hit the daily limit and reversed its losses to reach a new high, it hit the daily limit again on Tuesday and Wednesday. The company's stock price was pushed to a record high of 529.65 yuan, and its market value soared to 2462.87 billion yuan.

On Thursday, after three consecutive limit-up days, Likang Technology opened flat today and then experienced a rapid sell-off.

This is quite normal, because the profits are too substantial. Three consecutive 30cm limit-up days can double the value in just three days, with a cumulative increase of +119.7%. Today, the market did not open higher, so the profit-taking has begun.

Likang Technology's stock price fell to a low of 468.32 yuan during the session, a drop of -11.57%, but it stopped falling and rebounded around 9:37 am, turning from weak to strong, and turned positive around 10 am, with a huge trading volume.

Around 11:17 AM, Likang Technology's stock price surged to 688.54 yuan, a 30.00% increase, hitting the daily limit and marking its fourth consecutive day of limit-up trading after a reversal. The company's stock price also reached a new high of 3201.71 billion yuan.

However, it was "headshot" less than ten seconds after it hit the limit up, and quickly dropped 7 points before moving sideways.

After the market opened in the afternoon, Likang Technology successfully rebounded and closed at the limit up twice, but then failed to hold the limit up again. Its trading volume surged to the top of the three major trading markets. Today, it even squeezed out Lingjing Technology. It should be noted that for the past two years, Lingjing Technology has consistently held the number one position in daily trading volume, even when the volume was reduced to the minimum, it was still the undisputed number one in daily trading volume.

But today it was overtaken by Likang Technology, listed on the Beijing Stock Exchange.

Around 14:42 PM, bullish funds launched another attack on Likang Technology, successfully closing the limit up. This time, the limit up was not broken and remained so until the close of trading. The total trading volume for the day reached an astonishing 607 billion yuan, which was 172 billion yuan more than that of Lingjing Technology today.

"Wow, this is unbelievable! I finally understand what it means to 'rise without end, the sky is the limit'..." Shortly after the market closed, Zhao Mingjie looked at Likang Technology's stock chart with great amazement.

The second major upward wave started from 12.98 and has now reached the price of 688.54 yuan, with a cumulative increase of +5204.62% in the interval. This 52-fold increase took only 18 trading days, making it the stock with the most rapid short-term surge in the history of the A-share market, surpassing Lingjing Technology in its early days.

Zhao Mingjie has held this stock without making a single move, even with today's record-breaking trading volume.

His cost basis is only 1.47 yuan, and his current return rate has reached an absurd +46739.45%, a profit of more than 467 times. The market value of his holdings has soared from 20 yuan to the current 9364 million yuan, and he is very close to breaking the 1 million yuan mark.

……

The following day, Friday, February 6th.

Likang Technology opened at 725.88 yuan, up 5.42%, and continued to rise throughout the morning session, reaching new highs in a volatile manner.

Around 10:45 AM, Likang Technology's stock price rose by 12.95%, reaching 777.77 yuan. However, after about 10 seconds, it failed to break through this price and turned back, falling by 5 percentage points, narrowing the increase to around 7%.

Although 90% of retail investors couldn't buy this ticket, its popularity remained high, with many retail investors watching the spectacle.

When the stock price reached 777.77 yuan, onlookers in the stock forum's comment section exclaimed that it was a super "leopard top," indicating that the peak had been reached and the market had truly peaked.

Not only did the onlookers think this way, but the investors who participated in the stock speculation also thought so.

In the A-share market, such a special number is almost always a topping signal. The funds involved are more inclined to believe it, so the selling pressure increases and a lot of funds begin to flee.

Everyone remembered that when Likang Technology's first major upward wave peaked, the price was 27.27 yuan, which was also a special number, a double top.

This time, 777.77 became a triple number.

Furthermore, due to this unusual triple number, those outside the field who wanted to join the relay were hesitant, resulting in insufficient support for the relay.

Around 11 o'clock, Likang Technology's stock price remained high for 15 minutes before it plummeted after 11 o'clock, with the stock price crashing rapidly as funds panicked and fled in a stampede.

This stock saw little participation from retail investors; it was a three-way game between speculative capital, quantitative trading, and institutional investors.

They all wield sickles; it's a battlefield straight out of a god's domain.

After the price plummeted, the quantitative funds' algorithmic trading triggered the conditional indicators, causing the stock price of Likang Technology to collapse all the way down.

At the close, the stock plummeted by 24.10% to close at 522.60 yuan, with a market capitalization of 2430.09 billion yuan and a daily turnover of 346 billion yuan.

A large bearish candlestick pattern, resembling a leopard's head, swept down, completely wiping out yesterday's limit-up gains.

In fact, the trading volume in the morning session was already problematic. Although the absolute trading volume was large, it was clearly insufficient compared to the previous trading day, indicating a price increase without volume. By the close, the total trading volume for the day was 346 billion, a decrease of 261 billion compared to yesterday's record high of 607 billion.

Those who bought in today suffered huge losses, and countless retail investors who were watching the spectacle felt a chill. If they had bought in at the price of 777.77 yuan, they would have lost 32.8% that day. If there was a big gap down the next day, they would have been halved in just two days.

The Beijing Stock Exchange market is volatile, with daily price limits of ±30%. Prices can rise and fall very quickly.

……

(End of this chapter)