Entertainment mogul: Starting his business with the internet

Chapter 513 An Inevitable Tribulation

The air in the meeting room seemed to freeze.

Sun Tongyu took in everyone's shocked, confused, and even slightly "wishful thinking" expressions, but made no attempt to explain.

At this moment, before Pinduoduo was even established and its business model was proven, any words seem pale and powerless.

Performance is the only convincing proof.

Only when that day comes will everyone understand the disruptive power of "social + e-commerce" and see the amazing potential hidden in the lower-tier market.

He took a sip of water, then switched to the PowerPoint presentation, where a more ambitious strategic blueprint was displayed on the screen.

His voice remained steady and powerful: "The third phase is planned for 2016. The core theme for that year is: upward development and branding."

The laser pointer's red dot landed on a strategic node, at which point the platform would launch a financing round, with the funds primarily used to establish a "brand pavilion" and tentatively provide targeted subsidies to brands such as iPhone and Dyson.

At the same time, by promising "tenfold compensation for counterfeit goods," they aim to shed the "low price, low quality" label and attract mid-to-high-end users who value quality and brand.

Taking a breath, his gaze became more profound: "2017 will be the year that Pinduoduo lays the foundation for its future. I believe that by then, the e-commerce market will be divided into three major players, each with its own unique strengths."

At this point, Sun Tongyu's face couldn't help but show excitement and anticipation, and his tone became increasingly enthusiastic.

"This year, Pinduoduo will become the 'third pole' in the industry, forming a core competitiveness that is difficult for competitors to replicate."

At the same time, we will begin exploring the possibility of replicating this social relationship-based e-commerce model and agricultural digitization experience in overseas markets.

Finally, his gaze fixed intently on the ever-composed Song Ci, and he declared firmly, "At that time, I will fulfill my promise to Chairman Song."

Pinduoduo will no longer be the second Taobao.

It's a new e-commerce model rooted in mobile social networking, reconstructing the relationship between 'people, goods, and place,' and deeply embedded in the vast soil of manufacturing and agriculture!

As soon as he finished speaking, Sun Tongyu took a deep breath, as if a great weight had been lifted from his shoulders, and bowed slightly to the crowd:
"This is the development strategy I have devised for Pinduoduo. I welcome your feedback."

The meeting room was silent. The blueprint was too grand and too awe-inspiring to be digested at a moment's notice.

Then Song Ci slowly raised her hands and began to clap. The crisp applause was exceptionally loud in the conference room, instantly breaking the tense atmosphere.

Zhang Yong, Wang Jing, Chen Dejun, and Zhang Tong seemed to wake up from a dream and followed suit.

Although there may still be some doubts, there is more admiration for this courage and vision.

"Mr. Sun spoke very well, with a clear line of thought and well-defined goals," Song Ci praised, then glanced at each shareholder present.

"You have all carefully reviewed the equity structure plan. If you have any objections, please feel free to speak your mind now."

When the equity structure was mentioned, Sun Tongyu felt a mix of emotion and satisfaction. His experience at Taobao had instilled in him an extraordinary obsession with control.

Now, Song Ci's proposed solution allows him to hold Class B shares, giving him ten times the voting power, fundamentally guaranteeing his autonomy in management.

This made him deeply admire the young tycoon's magnanimity and ability to recognize and appoint capable people. This trust was more precious than any financial support.

The shareholders, who had been pondering this for a long time, spoke up one after another, and their opinions were surprisingly unanimous.

"No objections, the plan is fair."

"The equity structure design is reasonable and can maximize the initiative of the management team."

Seeing this, Song Ci nodded slightly and moved the discussion to the next step: "Alright, since there is no objection to the shareholding, let's discuss the next topic: the shareholders' capital contribution."

Mr. Sun, as the CEO of Pinduoduo, what specific plans and budgets do you have for the platform's initial startup funds?

Sun Tongyu had already prepared a plan for this, and explained it clearly: "Everyone, in order to avoid early financing interfering with the execution of the strategy..."

I recommend that the company refrain from seeking new funding within the first 24 months of its establishment. Therefore, an initial $2000 million is needed as seed capital.

He explained in detail: "Of this, approximately $600 million will be used for technology and platform development. This includes recruiting a top-tier technical team to develop recommendation algorithms based on social relationships, a group-buying engine, and a stable mobile platform."

"The second part, about $700 million, or 35%, will be used for initial subsidies and user acquisition in lower-tier markets. This is the ammunition for the initial 'saturation attack,' and it is crucial."

"The third part, approximately $400 million, will be used for the logistics system and initial supply chain setup."

It's not about building its own logistics network, but rather about collaborating deeply with Shentong Express to optimize warehousing, sorting, and last-mile delivery for Pinduoduo's "blockbuster" model.

"The remaining $300 million will be used to pay team salaries, rent office space, and maintain the company's daily operations."

Sun Tongyu specifically emphasized, "Because of the highly attractive equity incentive plan, we can appropriately control cash compensation in the early stages and invest more funds in the business itself."

This budget plan is detailed, well-reasoned, and virtually flawless. After careful review, all shareholders expressed no objections.

Song Ci finally made the final decision: "In that case, all parties will contribute capital according to their shareholding ratios. As for the $300 million capital shortfall corresponding to the 15% executive and employee option pool..."

Then, turning his attention to Zhang Tong, he said, "It was paid by Huiwen Asset Management."

Zhang Tong understood immediately and quickly replied, "Of course, Chairman Song, don't worry."

In addition to their capital contributions, the other shareholders also contributed important strategic resources: Tenda's traffic, Shentong's logistics, and Sun Tongyu's team.

As a purely financial investor, Huiwen Asset Management cannot provide resources of equal value. Therefore, it is a reasonable arrangement for it to bear more financial pressure in order to balance the contributions of all parties.

“Okay! It’s settled then.” Song Ci stood up, placed her hands on the table, and announced loudly, “I’ll leave all the subsequent matters, such as company registration, team building, and business launch, to President Sun.”

Sun Tongyu abruptly stood up, his face flushed with excitement, straightened his back, and spoke in a strong and clear voice:

"Chairman Song and all shareholders, rest assured! I, Sun Tongyu, will do my utmost and will never let you down!"

At this moment, he was full of vigor and enthusiasm.

Unlike his past work on Alibaba's platform, Pinduoduo will be entirely his own business.

It was a vast world where he could freely display his talents and ideals, so how could he not take it very seriously?

After the details were finalized, Song Ci smiled and said, "President Sun, Chairman Chen, Sister Tong, I have other matters to attend to today, please forgive my poor hospitality."

"Please see everyone off on my behalf, Mr. Zhang. Let's get together properly again on the day Pinduoduo is officially established!"

Sun Tongyu, full of vigor, firmly grasped Song Ci's hand: "Chairman Song, rest assured, I will do my utmost!"

Chen Dejun and Zhang Tong exchanged a few polite words with smiles, their words filled with optimism about the project's prospects. Zhang Yong, as instructed, led Sun Tongyu and the other two out of the meeting room.

Song Ci strolled to the floor-to-ceiling window, gazing at the distant, towering city skyline, the sunlight casting a long, slender shadow over him.

After a moment, he turned around and asked solemnly, "Sister Jing, how's the progress of the global recruitment of artificial intelligence experts that I asked you to do last time?"

Upon hearing this, Wang Jing's expression turned serious, and her words carried a touch of seriousness: "Chairman Song, the progress is slower than expected. Most of the targets are professors from top universities and core researchers from large-scale scientific and technological laboratories."

These individuals are already accomplished and successful; a high salary alone is not very attractive to them. What they value more is academic freedom, a conducive research environment, and the potential of a platform that can truly achieve technological breakthroughs.

Song Ci unconsciously tapped her fingers lightly on the window frame: "I know that for truly top talents, money is often not the primary driving force."

But money is the most direct way to demonstrate our resolve and strength. He paused, his voice not loud, but carrying an undeniable decisiveness.

"In this way, you personally take the lead, spend a lot of money to hire the world's top headhunting firms, and continuously and firmly contact these experts."

At the same time, we can demonstrate Tenda's unique advantages in data, computing power, and application scenarios to them.

"Where there's a will, there's a way. I believe that as long as the direction is right, we can always find like-minded people, and we will always have the opportunity to break through."

"Yes, Chairman Song, I will increase my efforts." Wang Jing quickly made a note of it, then remembered something and looked up to report.

"In addition, I would like to have a conversation with Professor Zhu from the University of California, who is on your list of people you are particularly interested in."

“Professor Zhu!” A glint of light flashed in Song Ci’s eyes. This professor was a world-renowned expert in computer vision, statistics and applied mathematics.

After a brief moment's hesitation, and a quick consideration of the schedule and the safety of the meeting, I said, "Okay. We'll arrange a meeting during my visit to the US next month."

Let's hold it at the Consulate General in San Francisco; the environment there is relatively secure. Also, my meeting with Bill Gates has been arranged.

"Don't worry, I will personally follow up on these important trips," Wang Jing quickly agreed, her expression solemn.

The chairman's trip to the United States is of great significance, involving Tenda's future global strategic layout, and cannot afford to make any mistakes.

At this moment, Zhang Yong, having seen off his guests, returned to the conference room and sat down in his original seat.

Song Ci sat down again, his gaze sweeping over his two capable assistants, and cautiously advised: "While I am in the United States, you should stay in China and not make any plans to travel abroad."

Zhang Yong and Wang Jing exchanged a glance, understanding the chairman's deeper meaning: this was to avoid potential risks.

Zhang Yong's expression was extremely solemn: "Chairman Song, according to the latest news from President Wilson of the North American branch, things are indeed not peaceful in Washington."

Some lawmakers have already proposed a full investigation into WeChat on the grounds of 'data security,' and some have even specifically requested that you appear before a congressional hearing.

He breathed a sigh of relief and continued, "Fortunately, when Guan Hai took office, the North American branch followed your arrangements and strongly supported the Donald Party!"

With the huge public relations and lobbying expenses invested each year, Wilson can currently use his connections to temporarily suppress and delay this matter.

However, given the current situation, a security review will likely be inevitable once the group initiates its IPO process in the US.

"The tree desires stillness, but the wind will not cease." Song Ci's face showed little surprise, as if everything was within his expectations.

“I am aware of these circumstances. This trip to meet Gates was also a precautionary measure to make some arrangements in advance.”

For Tenda to expand globally, it cannot go it alone; it needs to find more influential allies within the United States and build a broader community of shared interests.

Upon hearing this, Wang Jing couldn't help but suggest, "Chairman Song, could you consider listing on the Hong Kong Stock Exchange or the A-share market? After all, the size of the domestic capital market is now vastly different from what it used to be."

Song Ci shook his head, his expression resolute: "The size and capital liquidity of Hong Kong stocks and A-shares still lag behind Nasdaq."

Tenda's vision is to become a truly global company, listing in the US and undergoing the most rigorous market scrutiny to maximize the group's valuation potential and global influence.

As he spoke, his tone softened, with a sense of effortless ease: "Where there are high mountains, there are roads for travelers; where there are deep waters, there are ferries for ferries."

The path of globalization is destined to be bumpy, but as long as we are strong enough and our strategies are flexible enough, we will always find opportunities for breakthroughs. There is no need to be overly anxious.

His composure impressed the two people present.

Since being encouraged by his wife Liu Shishi and determined to develop WeChat and TikTok, Song Ci had been fully prepared for the difficulties he might encounter.

Compared to the extreme pressure faced by companies like Huawei in his previous life, he felt that Tenda's current situation could only be described as "minor setbacks." With its advantage of foresight, he believed they could always find a way to survive.

Intending to ease the slightly heavy atmosphere, she proactively changed the subject: "Alright, let's put these things aside for now. Is there anything else you need to discuss?"

As if reminded, Wang Jing immediately replied, "Chairman Song, there's one more thing, about Tiangong Special Effects."

"Tiangong Special Effects?" In Song Ci's memory, Tiangong Special Effects had been developing quietly and unobtrusively. With the support of Tengda Technology and funds, its special effects technology had reached the leading level in Asia.

It primarily provides technical support for film, game, and animation projects both within and outside the group, and is a business segment that is stable and profitable but has a low profile.

"What's wrong with them? Have they encountered a bottleneck in their technological development?"

"It's not a technical issue, it's a strategic transformation requirement," Wang Jing explained. "Tiangong Special Effects noticed that Toutiao Video is building an animation community and believes this is an excellent opportunity."

Tiangong Special Effects does not want to be just a technology service provider. It hopes to proactively transform itself and integrate scattered animation talents and creative projects in China through investment, cooperation and platform operation.

The goal is to become a hub for animation talent and projects, covering the entire industry chain from 3D and 2D animation to comics, games, and merchandise.

Hearing this, Zhang Yong chuckled and pushed up his glasses: "This Hou Shen, usually so quiet, has quite the ambition. Is he trying to build a Chinese 'Pixar' group?"

After a moment's thought, Song Ci smiled with interest and said, "Not a bad idea! Tiangong Special Effects itself has a solid technical foundation."

If one is only satisfied with taking on projects and doing special effects, then it is indeed a waste of talent.

Actively seeking transformation, integrating resources, and building a platform company is a very forward-thinking approach, and I think it's feasible.

He immediately instructed: "Sister Jing, you are in charge of entertainment, let Hou Shen and Zhou Juan communicate."

Although one focuses on content communities and the other on technology integration and industry investment, their directions are slightly different, but their goal is the same: to expand the animation industry. They can work together to avoid wasting resources.

"Have them submit a detailed cooperation and transformation plan as soon as possible."

“Okay, Chairman Song, I’ll arrange it right away.” Wang Jingli responded promptly and made a note of the task.

(End of this chapter)