Is BOE short of money?
lack.

Is Qingyun Group short of money?
Also missing.

But Li Zehua still came with money, and the first thing he asked for was US$3 million. He also hinted that in the next three years, Qingyun Investment would provide BOE with no less than US$10 billion in financing.

There is only one requirement, that BOE reaches a strategic cooperation with Honor Electronics as soon as possible and becomes the latter's unbreakable ally in the domestic industrial supply chain.

"Mr. Li, please think carefully. BOE currently has no experience in large-scale production of smartphone screens.

The Chengdu production line has just entered the debugging stage, and the yield rate is far from meeting the mainstream market standards and is far from being self-sustaining.

Whether it is pursuing financial return on investment or based on the overall industrial layout, this is probably not a good choice.”

Faced with the financial sponsor who offered money to him, Zhao Yanshun, executive director and president of BOE Technology Group, wanted to agree to it right away, but out of professional ethics, he still hoped that the other party would reconsider it seriously.

Don't invest money on impulse and then withdraw the money after you sober up for a while. Although there is a contract agreement, if you really regret it, can BOE still swallow you up?
Don't wait until the time comes when the plan for expanding the new production line is arranged, but the money is gone as soon as you ask for it. That would be a big problem. Even if the penalty for breach of contract is increased tenfold, it is still not enough to pay for a high-generation production line.

Company development, especially in the semiconductor industry, requires large investments and a long preparation period, as well as high risks. If the market is good, there is some profit, but if the market is bad, for example, this year, a large number of peers have gone bankrupt.

Otherwise, it would not be BOE's turn to take over everywhere and introduce technical equipment that was strictly blocked in the past. When the market was good, they would not be sold abroad at all.

Affected by the financial crisis, overseas counterparts, especially those from China, now talk about friendship and brotherhood. They are eager to sign the contract today and start work tomorrow. In short, all they want is to pay the money.

From production line equipment technology to dispatching engineers to assist with installation and debugging, they participated in the entire trial production, fearing that BOE would not be satisfied. However, they just did not have enough money in their pockets.

Although many cities in the mainland have actively invited BOE to set up factories and invest there, the speed of BOE's counter-cyclical expansion this time is limited by its own funds and the uncertainty of the future market.

As the global semiconductor market continues to be sluggish, thinking about what ordinary people dare not think about, doing what ordinary people cannot do, and spending real money to expand production capacity is, to put it bluntly, a gamble.

If the market does not improve as expected, the excess production capacity will in turn drag down the entire company. Maintenance costs, labor costs, and every day the production line is idle will result in huge financial losses.

BOE has already experienced a period of pain from 01 to 03, and is now entering its second round of counter-cyclical strategy. No one has a clue about what the future holds.

Fortunately, Li Zehua is more confident than BOE’s management. What does BOE do?

The panel!
Smartphone screens, computer monitors, laptop screens, tablet computers, car screens, etc.

Do you understand? Each and every one of these is the essential technology for Qingyun Group's future main products, including Panda Glory Electronics, Pengcheng's Shenzhou Electronics and new energy vehicles.

Qingyun’s dream of a technological empire cannot be achieved without the support of BOE. Moreover, it is now on the right track and is only one step away from taking off completely.

Li Zehua has always said that money is just paper. If pure money, when it reaches a certain level, cannot be transformed into influence, it is no different from waste paper.

Look at the places where BOE has invested. Which place doesn’t offer the most favorable conditions and try its best to keep the production line?

Relying on USTC and BOE, Feicheng has transformed itself into a city of science and technology, thus securing a place in the fierce economic competition in the future.

What a coincidence, Qingyun Group also wanted to take advantage of this favorable trend to add a layer of golden halo to the group and invested in BOE. It was a great win.

BOE certainly wants the US$3 million investment promised by Qingyun Group. Even if there is no follow-up investment, such a large amount of funds can be used to launch a new production line.

The key is, is it reliable?
From the day Qingyun Honor Electronics came into contact with BOE, less than two months had passed before we learned that the other party had acquired Jinling Panda Ericsson Electronics and set up a research institute in Gusu.

I don't know much about BOE in other aspects. During the contact between the two companies, I have never heard that Qingyun Group has any intention of investing in BOE.

It was very puzzling. The boss of a friendly company suddenly came to me and said that he would give me US$3 million in financing and I only needed to issue a certain number of shares. Even the investment income guarantee such as debt-to-equity conversion was omitted.

If the cooperation is fine, another $10 billion will be invested in the next three years. This is not all, the other contract is even more outrageous.

BOE's smartphone screens have not yet been mass-produced, the yield rate and other factors are not yet stable, and the production costs are uncertain, while Honor Electronics has not even released its first smartphone product.

The market prospects, scale of cooperation, expected returns, and potential risks are all uncertain, and they say they want to reach a strategic cooperation right away. In the future, more than half of Honor Electronics' mobile phone screens will be supplied to BOE?

This is equivalent to two minors who are still in school and not old enough to get a marriage certificate discussing what to name their future child. Isn't this nonsense?
Zhao Yanshun felt that all his heartfelt words were wasted.

Because of Li Zehua's nonchalant attitude, he once doubted the reality of this world. Three hundred million US dollars, more than 2 billion RMB!
Are you just not going to take it seriously?

Looking back, I once ran around begging for help in order to raise hundreds of millions of dollars in financing, but in the end I only got a light response: "No investment."

I just want to cry.

“Please rest assured, Mr. Zhao, the cooperation with BOE was based on my careful consideration, even if there are deviations in the subsequent cooperation and the semiconductor industry does not see the expected surge in demand.

Even if BOE continues to make losses in the next ten years, even if the yield rate cannot be improved and the cost is higher than that of other competitors, the follow-up investment I promised will be arranged in place.

And Honor Electronics, a subsidiary of Qingyun, will also insist on fulfilling the contract and give more than half of the orders to BOE."

What else could Zhao Yanshun say? He was completely numb and asked stupidly, "Why do you do this?"

Li Zehua did not answer but asked, "I heard that when BOE first made money and had 3 billion in its account, everyone said it would be better to invest in real estate, which is a sure profit.

The result was that President Wang went against all odds and insisted on serving the country through industry. I wonder if this is true?"

Zhao Yanshun remained silent, completely understanding in his heart that another "madman" had arrived.

“Just think of it as paying for your dream!”

"What a way to pay for your dream."

Hearing that a big investor had come, and a like-minded person, Wang Dongsheng, who had hurried back from outside, just happened to hear this.

He came up and shook Li's hand enthusiastically, unwilling to let go for a long time.

One party wants to give money, while the other party is in short supply of money. After confirming the sincerity of the investment, the man and the woman are both interested, and the next things become much simpler. The specific details of the cooperation are left to the subordinates to discuss.

Wang Dongsheng personally led Li Zehua to visit BOE. On the way, they talked about the company's development history and the current status of semiconductor display panels.

At first, Wang Dongsheng thought that this junior was a taciturn person, because it was mostly him and Zhao Yanshun who were talking, while Li Zehua was listening, occasionally saying "hmm" to show his agreement.

But as the conversation deepened, especially when he raised a technical question and received no response for a long time, he became confused.

"Director Wang, President Zhao, please don't embarrass me. I don't understand a single word you say about the various professional issues concerning semiconductor display panels, including the new generation production line you mentioned."

Li Zehua spread his hands and laid it on the table, “My deepest understanding of this industry is that it is being used on TVs and will be used on smartphone screens in the future.

BOE is a national enterprise, and that is enough. I will be responsible for paying them. It would be best if they can beat Samsung in the future. Even if they cannot, at least they should be able to produce domestically so that they will not be strangled by others. "

As he said this, he was still worried that they would doubt his financial resources, so he emphasized: "Please rest assured, you don't have to worry about the money.

I have been doing some overseas business recently, earning several million dollars a day, sometimes tens of millions of dollars a day, but it’s only $10 billion, so it won’t affect me.”

The speed of buying warrants for Chinese stocks such as Qiandu was faster than he had imagined, and the end of the year was when Qiandu’s stock began to take off, rising every day.

Warrants are equivalent to buying stocks with ten times leverage. Every increase of a few dollars in Qiandu’s share price is an excess return. Moreover, in just four or five months, Qiandu’s share price rose from two or three hundred to more than seven hundred.

Google withdrew from the mainland market, and Qiandu began to monopolize the market. This kind of nuclear-level benefit cannot be easily changed by a few financial institutions.

The trend is consistently upward, faster than picking up money. Every day when Li Zehua opens his eyes to sleep, hundreds of millions of dollars will be deposited into his account. He can never spend it all.

Wang Dongsheng and Zhao Yanshun looked at each other and felt that the world had changed, becoming something they did not recognize at all.

It's really crazy that a complete layman sent hundreds of millions of dollars from afar to support localization just because of a sentence of paying for feelings and dreams.

Zhao Yanshun just wanted to yell: "Please give me another dozen of these people." Fortunately, Li Zehua didn't understand, and he had a group of professional talents under him.

Whether it is the signing of a contract or the specific details of cooperation based on semiconductor display panels, all of them have been carefully considered by countless people before being signed one by one.

The boss just opens his mouth and the employees run around for him.

It took the top management half an hour from the first meeting to confirming the cooperation, and the legal affairs and professional negotiation teams of both sides took a full month to finally determine the contents of the contract.

This was the result of Li Zehua's constant urging, because he discovered something interesting: BOE's products seemed to be supplied to domestic home appliance companies?!

……

"XXX brand graphics card, original price 1098, current price 698, all 698."

"XXX brand memory stick, original price 798, current price 498, all 498."

"Changhong xx model TV, original price 6999, current price 5599, plus a 200 yuan coupon for any item in the store."

"XX brand double door refrigerator, clearance sale, sell for money, original price 3988, current price 2098, don't miss it if you pass by, big discount."

In a Gome electrical appliance store in Yanjing, Liu Qiangdong seemed worried.

Looking around, especially for digital products on JD.com, Gome has got a bunch of accessories from somewhere and is selling them at a discount price below the market price.

Finding a place where no one was paying attention, Li Zehua asked curiously, "Why, Gome's promotional price is lower than your purchase price?"

"No, most of them are stuck at the right price, just a little higher than JD.com's purchase price, but if we sell them at this price, we can't guarantee the company's lowest operating cost."

Liu Qiangdong couldn't understand why JD.com was always the one that got hurt. The home appliance war gave him control over the goods, and now his core digital products are also facing an impact.

What bothered him most was the price. It was neither going up nor down. If he followed the price, he would end up selling at a complete loss.

If you don’t follow, the market will be taken away little by little by offline players.

Once upon a time, some computer mall merchants went to JD.com to purchase digital product components. Now, they can also be seen in Gome Mall.

This has to be said to be a kind of irony.

How long can JD.com last without its golden reputation of high quality and low prices?
"Although many people can see JD.com's 5% strategy, there is probably only one company in the country that can purchase goods at this price."

Li Zehua figured it out, "That shouldn't be the case. Logically, when a manufacturer signs a contract with Lianxiang, there should be some restrictions, right?
How can an assembly manufacturer take out the parts and sell them separately? Wouldn't this impact the manufacturer's own channels?"

Liu Qiangdong smiled bitterly, "The maintenance gap cannot be suppressed. With the sales volume of tens of millions of units per year, if we just report a few more points, we can get hundreds of thousands of additional orders.

If the price is distributed among various models, each single product will be enough for the market to digest for a period of time. After all, the assembled computer market is so small, and there are computer malls in various places that intercept consumer orders. "

“That’s why I said that we must support individual brands to expand procurement and reduce costs. You only purchase parts and let consumers buy and assemble their own computers.

But where are there so many people in the market who understand technology?

Aren’t they all computer assembly shop owners from all over the country? The problem is that they also have their own channels, and they may be agents of a certain parts manufacturer. If you don’t have a price advantage, who will buy from you?”

Hearing his light words, Liu Qiangdong subconsciously retorted: "I can't get the pricing power."

"Then use the scale advantage to hold the manufacturers hostage and threaten them!"

Li Zehua is very familiar with this trick, "Don't look at me as someone who doesn't understand technology, but I understand the market!
Except for a very small number of companies that have mastered core technologies, such as Western Digital, Samsung, and Intel, these large companies have no way to get involved.

The remaining companies that make memory sticks, off-brand hard drives, chassis power supplies, graphics card OEMs, motherboards, cooling and the like, with sales ranging from tens of millions to hundreds of millions, can be defeated one by one. "

Historically, JD.com has never attempted to get involved in the upstream manufacturers of its core business. Li Zehua doesn’t know whether there is any inside story behind this.

But he knew that now that he was here, he would never allow this situation to happen again, even if someone wanted to block him in front of him, he would do it without hesitation.

It doesn't matter if we get hurt or bruised. As long as we persist, sooner or later we will be able to establish a domestically produced electronic product industry chain other than the core ones.

As for the chips, they can only be handed over to Zhongxin. Qingyun would never dare to touch them openly because many people would die in the future.

In particular, the companies of Qingyun Group currently still have to rely on capital support. Once their ambitions are exposed in advance, they may be strangled in the cradle.

Liu Qiangdong frowned, "It's not that easy, you can see it too, just because I stand close to you, I am being suppressed now.

If you touch someone's core interests, won't you be beaten up every day? "

“If it was really that powerful, home appliance companies should have cut ties with us completely, but what about now?
Including Li Dongsheng and Sister Dong, has anyone openly turned against us?"

Li Zehua encouraged him, "You know Li Yanhong from Qiandu, right?
He is also a member of the Taishan Sect, and a core member!
But now, apart from playing some small tricks in private, such as making double jumps to fool consumers, no further actions including cancellation of cooperation have taken place.

why?
Ultimately, profit comes first. Qingyun Group has so many businesses, and he is willing to spend 300 to 400 million yuan on advertising every month, but the capital behind him is not willing.

For next year, don’t even think about it. Combined with the cooperation between Honor Electronics and a special product, the most conservative estimate is that it can contribute 8% or even 1/6 of the total performance of Qiandu.

You said that regarding the advertising business contract worth nearly one billion yuan, would Li Hongyan be willing to listen to Liu Aiguo?
Why would Liu Aiguo offer the same benefits to buy off Qiandu?"

Having said that, he paused, giving Dong Ge enough time to think, and waited until he gradually recovered before continuing:

“Take the procurement of digital product parts as an example. With JD.com, Pinxixi group buying, and even Pinxixi e-commerce platform all working together, are you still worried that you won’t be able to open up a large enough market?

We assemble the computers ourselves. The Pinxixi experience store can provide similar services, including after-sales maintenance. How many directly-operated stores does Lianxiang have in the country?
Pinxixi and JD.com will be able to open at least 30,000 to 50,000 stores across the country in the next five years, so you don’t have to worry about not having a suitable location to open a flagship store.

As long as JD.com has demand for some of the properties under Qingyun Real Estate, we will sell them to you at the real-time dynamic market price. With the online sales of Shenzhou Electronics and Honor Electronics, what are you still worried about?"

As Liu Qiangdong listened, he looked at the unusually glaring prices on the counter in the distance, and a surge of anger rose in his heart.

How can you not offend people when doing business?
Besides, he is in the home appliance business, why would he care about anything else?
Why did the other party suddenly come out to get involved? Is it because of the cooperation between JD.com and Qingyun Group that Liu Aiguo is unhappy?

Thinking of this, he couldn't help it, so he took out his phone and called the director who stayed in the company, "According to the statistical data later.

All digital products launched by Gome Su are 1% cheaper than theirs.

Put a conspicuous banner on the homepage, JD.com welcomes all online and offline product price comparisons, and will compensate for any price increase, and tell all consumers that JD.com’s prices are always lower than those of its competitors…”

His move was directly borrowed from the homepage of Pinxixi, because that's what Li Zehua did, launching a real price war without any empty words.

Su Ning, is Gome qualified to engage in a price war with online shopping malls?
It's really laughable. It's no exaggeration to say that even if the store rent is taken into account, there is no way to compare the discounts with Pinxixi.

Because Li Zehua can sell it by just adding a dollar to the purchase price, would Su Ning and Gome dare to do that?

Even if you are willing temporarily, that’s okay, just keep working hard.

Don't forget the words "subsidies for home appliances going to the countryside", but there is no mention of subsidies for products sold in cities. Su Ning Gome can make some products that enjoy subsidies through manufacturers.

But does it dare to blatantly withhold special state subsidies?

Qingyun Group’s legal department can’t sue it to death.

You've already torn your face off and are ready to kill your opponent, and you still tell me not to try to lift the lid and break the unspoken rules?
Go to hell!
"Why don't JD.com sell some of its products to Pinxixi as an agent, and use JD.com's own store in name. I don't ask for much, just a 0.6% platform service fee is fine."

"what?"

Dong Ge was confused. Can e-commerce companies open stores in each other's stores? (End of this chapter)