Those Years When I Was Forced to Top the Forbes List

Chapter 204 Let's smash him first

"Mr. Chen, how can we negotiate these terms?"

Mayor Wu stood with his hands behind his back, looking quite troubled.

"Of course I can't let you have a hard time. Give me half a month, and I'll get BOE to change its attitude and come to Hefei to talk," Chen Xuebing said with a relaxed expression.

Mayor Wu glanced at him and asked, "President Chen, what's your plan? Tell me about it."

"It's best for leaders to know less about matters in the capital market. I'm currently in Hefei conducting research, and I'll let you know whenever I need your cooperation. However, you need to resolve any internal obstacles to your investment projects as soon as possible."

"Investment obstacles. We agree on vigorously developing the science and technology industry and leveraging Hefei's talent advantages. However, after we proposed this project to the province, the comrades from the Provincial State-owned Assets Supervision and Administration Commission did have some different opinions, mainly regarding profit and loss. Is General Manager Chen just going to stay in Hefei? He hasn't even gone back home for the New Year?"

"Haha, when I make money, every day is like New Year's Day. If I don't get a good result from BOE's investment, I'll just stay in Hefei."

"Making money makes every day feel like New Year's Day," this was the slogan Chen Xuebing used to shout at meetings every year in his previous life.

Chen Xuebing hasn't celebrated the Spring Festival for many years.

As a child, he always looked forward to the New Year, but ever since he entered the engineering industry, the New Year has become a crucial time for collecting debts.

At this point, he could lead a group of contractors to the client's office and demand an explanation. The client would most likely have to give an explanation, because everyone wants to have a good New Year.

But later, the industry became increasingly difficult, and he gave less and less explanation.

For a veteran engineer, this time of national celebration is actually a time of high energy and motivation for his work.

For him, who has been reborn, it is also a reminder: another year is gone.

Time is his most precious asset.

"Haha, Mr. Chen's work ethic is truly admirable."

Mayor Wu gave a thumbs up.

"In that case, our work cannot be delayed. I will send a team to take charge of your work. It's still early. I'll invite the State-owned Assets Supervision and Administration Commission over this afternoon so we can discuss it. Secretary Sun, how about we have dinner together tonight?"

Chen Xuebing put his hand in his pocket, nodded, and looked at Cai Zhijian.

"The comrades from the Provincial State-owned Assets Supervision and Administration Commission are being handed over to you. Can you handle them?"

Cai Zhijian straightened his collar and gave a confident smile.

……

Half past three in the afternoon.

The atmosphere in the conference room on the fourth floor of the government building was heated and intense.

Cai Zhijian unbuttoned his suit jacket and single-handedly slaughtered four opponents.

"Industry cycles and technology cycles—if you don't even understand these and only focus on the numbers in a financial report, then don't get involved in high technology; you can only do retail business!"

"When looking at financial reports, first examine industry trends, then analyze individual cases!"

"In 2004, since LCD TVs and plasma TVs began competing head-on in the large-screen market, the price of a 42-inch plasma TV dropped from 30,000 yuan during Labor Day to 15000 yuan during National Day."

"In the same year, Toshiba announced its withdrawal from the plasma business. In 05, Sony abandoned its long-standing plasma business and established the 'Bravia' LCD sub-brand. Fujitsu also withdrew from the plasma business."

"Panasonic hopes to use its advantage in plasma technology to shake off its followers, and it has a strong sense of confidentiality in its technology. It is unwilling to share with other companies, fearing that it will be copied and imitated by its peers. It is even less willing to form strategic alliances with any company. The plasma camp is already in decline."

"On the contrary, according to information collected by Wanfang Data and VIP Information, LCD TVs have developed rapidly and have already broken through 1080P full HD technology, which is difficult for plasma panels to break through."

"Televisions have gone through the CRT era and the plasma era. Although LCD started later and its market share is not high enough, all indications suggest that it is definitely the panel technology that represents the future!"

"I can say that 2004 was the year that global manufacturers realized the advantages of LCD panels, and it was also the first year of LCD panels."

"Then the reason why BOE suffered losses due to the sharp drop of 50% in global LCD prices is obvious. Major panel manufacturers in South Korea and Taiwan have invested heavily in fifth-generation production lines, which has exacerbated the pressure on the supply side and led to inventory buildup, causing prices to fall below cost."

"Will this trend continue? No, on the contrary, the market held by plasma will be quickly taken over by low-priced LCDs. With the market in the hands of LCD screen manufacturers, the strengthening of the raw material supply chain, the reduction of costs, and the rebound of prices are all inevitable trends."

"This is the industry cycle."

"Only when you understand these things can you look at this financial report in reverse."

"BOE Hydis, a subsidiary of BOE Technology Group in South Korea, had a negative impact of RMB 9.028 million on the consolidated financial statements in the first half of the year due to product restructuring and a sluggish market. The company relies on imported raw materials, has a small production capacity, and the newly built 5th generation production line has not yet achieved economies of scale, which has further exacerbated cost pressures."

"These are the main reasons for the losses, but can these problems be solved? As I just said, the limitation on raw materials is not technology, but scale. As long as the scale increases, the price of raw materials will definitely decrease. This is an economic law. Their newly built fifth-generation line will definitely increase its capacity over time. Isn't building this sixth-generation line also a way to increase capacity?"

"Also, everyone should take a look at the main operating revenue on page four: 134.6 billion. Compared to 04 billion in 120 and 111 billion in 03, this shows that the market demand for the factory's products is stable..."

Inside the conference room, the representatives from the Provincial State-owned Assets Supervision and Administration Commission spoke for less than 100 words in an hour. Each question they asked was followed by a 20-minute lecture. Their initial aggressive demeanor gradually softened as their eyes became clearer.

Chen Xue, standing outside the door, was so tempted by what he heard that he wanted to buy BOE's stock.

—If he weren't a reborn person.

LCD is indeed the future direction of panels, but BOE has not developed in a profitable direction.

Logically speaking, Chinese technology companies follow a different development path than their Western counterparts.

Western companies can "burn money first and then do things," but the development of hard technology in China is completely different from its status as a darling of the internet. It does not receive international funding and instead faces repeated suppression.

Without such a strong financial environment to support us, we have to find ways to make a profit first, and only after we survive can we engage in research and development.

But BOE is just too good. Backed by the support of the Beijing State-owned Assets Supervision and Administration Commission, it receives high amounts of government subsidies every year. Regardless of whether it is profitable or not, it is determined to carry out research and development and launch new production lines non-stop.

Without government support, the grass on their graves would be several meters high.

If it weren't for this bull market providing an exit strategy, he wouldn't have even dared to consider cooperating with BOE.

But since they were going to cooperate, he couldn't tolerate BOE being so willful.

Stubborn students need to be disciplined with physical punishment before they can be taught.

Now, Mr. Chen has withdrawn his teaching position.

At this moment, he is waiting for a phone call.

Just then, Mayor Wu and a middle-aged man came over.

He is not tall, has a side-parted hairstyle, wears thin-rimmed glasses, and has a kind smile.

From the middle-aged man's slightly forward half-body position, Chen Xuebing already knew who the newcomer was.

The moment the middle-aged man raised his hand, Chen Xuebing also raised his hand to meet him.

"Secretary Sun!"

"Mr. Chen, hello! You're so young and promising!"

Nowadays, everyone who meets Chen Xuebing for the first time inevitably praises him with this phrase.

"Hehe, Secretary Sun, you flatter me."

"I heard from the mayor that you have a way to address BOE's conditions."

Just as Secretary Sun asked the question, Chen Xuebing's phone rang.

Chen Xuebing took out his phone and saw it was an unfamiliar number. Without bothering with pleasantries, he raised his hand to indicate that he would wait a moment and answered the phone.

Both Secretary Sun and Mayor Wu were taken aback.

this.
Mr. Chen answered the phone at this moment.

Could he be some important person?

These days, cell phone calls are almost like hands-free calls; two people facing each other can hear each other clearly, and the voice on the other end seems a bit arrogant.

"Hello, Mr. Chen."

Chen Xuebing smiled and said, "Yes, I am the head of Qidian Technology. You must be Manager Zhang?"

"Ah."

"Oh, it's like this, I've seen your quote, and it's a bit high."

Before Chen Xuebing could finish speaking, he was rudely interrupted:

"If it's about negotiating the price, then forget it. Our marketing department has no authority to change the headquarters' quoted price."

Chen Xuebing's smile turned cold, but the temperature on his lips rose sharply.

"Oh, yes, yes! I know! Your factory's product quality has always been internationally leading, and its production capacity is also first-class. Our order is indeed very urgent, and the quality requirements are quite high, so we can only find you. How about this? I agree to the price, but could you send someone to come and discuss the delivery cycle and quality specifications in person?"

Where are you? Can't we come to Shanghai to talk?

"Tsk, I'm in a meeting in Hefei lately, I can't get away, and the people below me can't make decisions."

The other end interrupted again: "Hefei is too far away. Let me apply to my superiors. I'll give you an answer within a week." Chen Xuebing cursed silently.

The two leaders opposite could clearly see the words he uttered.

Tsk tsk, three words are enough to curse someone, why add the word "bitch"?

"Hehe, Manager Zhang, no need to apply. We need at least 200,000 screens, and the order volume is not small. I will book the round-trip airfare for your staff and cover the travel expenses. In addition, I will pay you 20,000 yuan as a service fee. How about that?"

There was a moment of silence on the other end.

Twenty thousand yuan.
Moreover, 20 orders?
Singularity Technology is an unknown company. We hadn't mentioned the order volume to them before, only inquiring about technical details and pricing. If we had mentioned the 20 yuan order earlier, they wouldn't have reacted this way.

"You want 20 screens? Why didn't your staff mention that before?"

"Hehe, Manager Zhang, you know how it is with the supply chain. If we order too much, the people below are afraid of being held responsible if the market forecast is inaccurate, so only I can make the order."

"Okay, wait for me a moment, I'll report as soon as possible."

"No, no, no, Manager Zhang, I'm in a real hurry. I'll have someone from my company contact you and book your flight for tomorrow. We can talk while you give me your report, how about that?"

".Fine."

Chen Xuebing exchanged a few polite words and hung up the phone.

Secretary Sun on the other side was a little confused.

You told us to wait for your call, is that all?

Mayor Wu, who had been following this project for so many days, had keenly sensed something amiss: "President Chen... the screen? Which manufacturer?"

Chen Xuebing's smile then became genuine: "Sharp, their people are coming tomorrow. I'll need to trouble the two leaders and me to put on a show then."

Mayor Wu suddenly realized, but the more he thought about it, the less he understood.

"Your phone factory is going to buy screens from them?"

Chen Xuebing smiled and shook his head: "It was already rejected. I just tricked them into coming here."

Singularity Technology initially selected four internal screen suppliers: Samsung, LG, JDI, and Sharp.

Sharp was one of the earliest developers of LCD technology and also had the most arrogant attitude. I'd heard long ago that they had cut off supplies to Samsung and Sony.

After contacting them, Sharp's prices for the same product category were more than ten percent higher than the other three companies, and they refused to lower their prices. Chen Xuebing removed Sharp from his list of potential partners very early on.

But now, we can use this as an excuse to lure them over.

Seeing the doubt on Secretary Sun's face, Chen Xuebing explained, "Sharp is now negotiating with Shenzhen for a 7.5-generation line cooperation. Its original intention is to prevent the establishment of a domestic 6th-generation line so as to monopolize our LCD market. Now that our negotiations with BOE are not going well, we should also ask Sharp to come and support us and help us raise the price. When their people come this time, we need to let them know that we are also preparing a large sum of money to invest in BOE's 6th-generation line."

Oh!
Secretary Sun gradually broke into a smile.

Cow!

They've got the skills!
"Okay! Mr. Chen's method works! Just tell us how you want us to cooperate!"

Secretary Sun's excitement wasn't limited to this clever method.

There are also some small additional expectations.

If Sharp really comes to Hefei to discuss building the most advanced production line here, is there a chance that Hefei will be able to acquire both Sharp and BOE?
Chen Xuebing noticed a hint of unease in Secretary Sun's smile and immediately straightened his face: "Secretary, Mayor, don't take Sharp seriously. If they were willing to come, they wouldn't be building in Hefei. Shenzhen can offer them better conditions."

He wasn't worried that Sharp would actually be stupid enough to build a 7.5-generation line here, but time was tight. If they were delayed by some traitors, they wouldn't be able to catch up with the exit cycle of next year's bull market.

Secretary Sun, though pointed out, remained unfazed and laughed heartily: "Don't worry, as long as BOE shows sincerity, we will definitely show sincerity too!"

Chen Xuebing's face showed reassuring confidence: "Don't worry, leave the negotiations to me. I will definitely get terms that satisfy both sides."

At that moment, both leaders realized the importance of this intermediary.

Mayor Wu suddenly thought of something, put his hands behind his back, and pondered:

"Wow, you've caught Sharp's attention. What if Shenzhen chooses to cooperate with BOE?"

Chen Xuebing chuckled.

"Don't worry, I have a backup plan. It will be difficult for Shenzhen to cooperate with them. Just keep a steady attitude. No matter what, talk when necessary. Trust me."

Secretary Sun and Mayor Wu exchanged a glance.

"Okay, we all believe you."

The reception that evening was as warm and welcoming as a gentle breeze.

The government building's second-floor restaurant offers a sumptuous meal.

Four officials from the Provincial State-owned Assets Supervision and Administration Commission were also present, and the confrontational attitude of the afternoon had vanished.

They were just raising questions out of a sense of duty. Whether or not to invest depends on Secretary Sun's attitude. He is a city leader and a provincial leader, with the full support of the province. He cannot be influenced by a few questions.

During the meal, the four people kept praising Mr. Cai for his international vision and profound understanding of the panel industry.

In reality, Cai Zhijian only did his homework for a week.

The internet has "Internet Plus".

Finance can also be categorized as "finance plus".

Investment bankers need to be able to quickly understand the trends and key technologies of an industry within a few days, combine this with their own judgment of economic trends, and offer their own insights. This is the basic skill of research.

Chen Xuebing introduced Cai Zhijian's resume with a smile, and everyone was full of praise when he mentioned Citibank.

Secretary Sun was very pleased that such an elite team had come from Hefei. He drank three cups in a row and even stood up to sing a section of "Taking Tiger Mountain by Strategy".

The mayor and the head of the United Front Work Department also sang in succession.

Chen Xuebing drank heartily.

His impression of this team was that they were honest, simple, and easygoing.

One leader can lead a team, and a team can lead an entire city.

The following morning, when Chen Xuebing sobered up.

It's raining outside the hotel window.

The room was unusually quiet.

He groggily picked up his phone and checked the time; it was already ten o'clock.

As his mind gradually cleared, he got up and slowly walked to his desk, turning on his computer.

Search: Latest news on BOE Technology Group's stock market.

Article 1: BOE Invests $12 Billion in Independent Development of Fifth-Generation TFT Technology

No.

BOE Technology Group Co., Ltd. 2005 Performance Forecast Announcement

No.

"Is the external market collapsing? BOE has suffered losses for years; here's what securities analysts say."

Chen Xuebing opened the webpage, looked at it for a while, and then smiled with satisfaction.

Old Lu is still the most reliable person.

The stock commentators Xu Jin contacted and the financial websites Li Xueling found have yet to respond.

But in no hurry.

The market opened on February 6th, and today is only January 26th.

Ten days in total.

During holidays, the stock market is closed, and stock prices remain unchanged.

But this was the perfect time for the news to spread.

The stock market and institutions will pay close attention to news during the holiday, but whether it is good or bad, they can only suffer and wait for the market to reopen.

Panic tends to intensify during longer holidays.

Since BOE is so confident, let's throw a punch at them first.

(End of this chapter)