Rebirth 08: Can a mobile game company also build a tech empire?

Chapter 127 Uninvited Guest

"Perhaps they have some internal considerations."

Lin Bing said.

"Or perhaps you're busy with other projects, should we reach out to you?"

"never mind,"

Lu Chen put down the list.

"Let's finalize the deals with Sequoia Capital and SoftBank first. We'll talk about IDG later."

Lin Bing nodded, about to speak.

There was a sudden knock on the office door.

Susie pushed open the door and came in, her expression somewhat subtle.

"Mr. Lu, a guest has arrived."

"Who?"

Susie hesitated for a moment, as if organizing her thoughts.

"Mr. Xiong Xiaoge from IDG said he wants to see you and is downstairs now."

Lu Chen was stunned.

Lin Bing was also stunned.

The two looked at each other and saw surprise in each other's eyes.

Xiong Xiaoge?

Uninvited?

"Please invite him up."

Lu Chen quickly got up and straightened his clothes.

"No, I'll go down and get it myself."

Downstairs, in a corner of the coffee shop.

A middle-aged man in his fifties was sitting there.

There was a glass of Americano in front of me.

He was wearing a simple dark shirt, and his hair was gray.

He had a gentle smile on his face.

But those eyes revealed a shrewdness and sharpness.

Lu Chen walked over quickly.

"Mr. Xiong, I've long admired your name."

Xiong Xiaoge stood up, extended her hand, and smiled warmly.

"Mr. Lu, I am the one who has long admired you. I have been studying the Conquer Online 1 product for a long time, and today I finally have the opportunity to meet the young people behind it."

The two hands are clasped together.

Lu Chen felt that the other person's palm was large and powerful.

This is a seasoned veteran who has navigated the business world for decades.

"Mr. Xiong, please come upstairs, let's talk slowly."

Tea has been prepared in the conference room.

After Xiong Xiaoge sat down, she didn't rush to talk about business.

Instead, he first looked around the conference room.

"The environment is nice, simple and practical. Mr. Lu, your company's style is just like your products."

Lu Chen smiled.

"Mr. Xiong, you flatter us. We just want to get things done well; we don't pursue those superficial things."

"Making good products is the greatest form of honesty."

Xiong Xiaoge picked up her teacup.

I took a small sip.

"I've been using Conquer Online 1 for almost two weeks now. To be honest, I was quite surprised when I first got it."

"What's so surprising?"

"I'm amazed that such quality can be achieved at this price."

Xiong Xiaoge put down her teacup, her eyes becoming serious.

"1999 yuan, double-sided glass, metal frame, ZUI system, and its smoothness even surpasses many phones in the 3000 yuan price range. Mr. Lu, how did you manage to do that?"

Lu Chen did not answer immediately.

He knew that Xiong Xiaoge was testing him.

To gauge the depth of his understanding of the product.

To test whether he really knows his stuff.

"Because we were very clear about this from the very beginning."

Lu Chen spoke slowly.

"What we want to make is not a high-end, niche product, but a smartphone that most Chinese people can afford."

"So we pursue excellence in design, but we have to make sacrifices in terms of profit."

"A 5% profit margin is almost unimaginable in the mobile phone industry, but we are willing to do it because we believe that as long as we have enough users and a large enough ecosystem, the future returns will far exceed this 5%."

Xiong Xiaoge listened attentively, nodding occasionally.

Ecology!

Mr. Lu, you mentioned a key word.

He looked at Lu Chen, his gaze becoming even more focused.

"Many people who make mobile phones only see the hardware itself, but what you see is the ecosystem, which is what interests me the most."

Lin Bing took over the conversation.

"Mr. Xiong, our Journey ecosystem is not just about the phone itself."

He briefly introduced the company's organizational restructuring.

ZhengTu Communications is responsible for the hardware.

Zhengtu Interactive Entertainment is responsible for the game.

ZhengTu Network is responsible for the platform.

Voyager is responsible for AAA games overseas.

"The mobile phone is the entry point, the app store is the bridge, and games and Z-dimensional content are the content and services. These four sectors support each other and form a complete closed loop."

After listening, Xiong Xiaoge remained silent for a few seconds.

Then he gently tapped the table.

"good!

The architecture is very clear in its approach.

He looked at Lu Chen, a hint of admiration in his eyes.

"President Lu, your team is more mature than I imagined."

The conversation that followed became increasingly in-depth.

Xiong Xiaoge asked many detailed questions.

Supply chain management, production ramp-up, ZUI system iteration plan, app store developer policies, Z-Dimension user growth, Voyager's AAA game projects —

Every question was to the point.

Clearly, he had done his homework.

And it's the kind of thing where they really put in the effort.

Lu Chen and Lin Bing answered one by one.

There was no concealment, nor any exaggeration.

In front of investors of this caliber.

The best strategy is to be honest.

Time passed second by second.

The sky outside the window gradually darkened.

Xiong Xiaoge glanced at her watch.

I realized we'd been talking for almost three hours.

Time flies.

He smiled.

"President Lu, President Lin, it's been a pleasure chatting with you, but it's time to get down to business."

He put down his teacup, his expression becoming formal.

"I've heard about the financing plan for Journey Technology. It's valued at 8 billion RMB, and they're selling 10% of their shares to raise 800 million RMB, which is equivalent to 110 million USD."

Lu Chen nodded.

"That's right, Mr. Xiong, what do you think of this valuation?"

Xiong Xiaoge did not answer directly.

He leaned back in his chair.

My fingers tapped lightly on the armrest.

"Mr. Lu, I approve of your product and your team, but 110 million US dollars is no small amount. I need to convince my partner."

"So, I'd like to hear your plans for the future. How do you intend to use this 110 million US dollars?"

Lu Chen knew.

This is the real test.

However, he was prepared.

"First, expand production."

He raised the first finger.

"The biggest problem for Conquer Online 1 right now is that production capacity can't keep up. Once we have more money, we will increase contract manufacturers and expand production lines to ensure stable supply. This is the most important thing in the short term."

Second, research and development.

Lu Chen raised his second finger.

"We will develop new products. The consumer electronics industry iterates too quickly. If we wait until the hype of Journey 1 has died down before we start developing, it will be too late. At the same time, the next generation of Journey series products will also be launched. We want to surpass this generation in performance, design and user experience."

Third, ecology.

He then raised his third finger.

"App stores need more developers, Z-Dimension needs more high-quality content, and games need more investment. With money, we can allocate special funds to support developers, incentivize creators, and allow the entire ecosystem to grow rapidly."

Fourth, overseas.

The fourth finger.

"Voyager is currently developing two AAA games, which is a long-term investment that requires continuous cash flow support. At the same time, the Journey brand also needs funding to go global. We will enter the America, Southeast Asia, and Europe markets sooner or later."

After Lu Chen finished speaking, he looked at Xiong Xiaoge.