Reinventing the Millennium.

Chapter 416 Transferring (Two in One)

There were only six people sitting in Yike's large conference room. After some exchanges of views that were generally recognized as having a lack of grace, the conference room fell into an evocative silence.

As a partner of DCM and the person in charge of Huaxia business, Connor has fully expressed his tough attitude by being reckless.

Xu Kaiwei was basically silent, expressing a silent attitude.

Zhang Hongli was basically silent, expressing a silent attitude.

Xiong Xiaoge was basically silent, expressing a complicated attitude.

In fact, just like what Fang Zhuo and Xiong Xiaoge said in their friendly exchanges in private, why did TSMC sue SMIC for shutting down the ice core?Even if he has judgment on other companies, why should he take additional responsibilities?
Yu Li, the contract is in black and white, clear and clear.

For love, do not avoid, do not back down, the fastest time to convene the board of directors for relevant evaluation.

What else can the leader of a third-party company do?
Therefore, Xu Kaiwei's request to call Fang Zhuo was to avoid legal risks. Zhang Hongli's little trick was to inform DCM that there had been a tacit agreement.

Also, Xiong Xiaoge rushed into the CEO's office today instead of attacking the board of directors.

Everyone understands that Bing Xin followed the procedures, and it is difficult to make legitimate accusations. All he can do now is to put pressure on the young president.

Of course, no one knows how Fang Zhuo can withstand pressure better than Xiong Xiaoge. Sitting in the conference room and witnessing Connor's real and fake behavior, he doesn't think it's useful at all. Fang Zhuo's hands.

There was a strange 2 minutes of silence in the conference room.

"TSMC sued SMIC on the 23rd. The latest news is that they have submitted a lot of evidence in their favor, and the claim amount is US$10 billion."

"This lawsuit will certainly not end quickly, it must be protracted."

"In addition, another point that I think deserves attention is that TSMC also submitted an investigation application to the US International Trade Commission, saying that the import and sale of SMIC semiconductor devices violated its patents."

"I don't know if you are familiar with the International Trade Commission. Its abbreviation is ITC. We, Yike, have dealt with it. One of the more troublesome points in this regard is that if the ITC makes a ruling, SMIC is likely to face imports. ban."

Fang Zhuo talked eloquently about the sudden news and started the formal process of the board of directors, as if the previous skirmish with Connor was just a spring breeze, and it was over when it passed.

The others didn't think there was anything wrong, and even Connor was quickly attracted by Fang Zhuo's explanation.

As the night passed, the assessments of several agencies focused on court proceedings, and the role that the ITC could play was overlooked.

"Mr. Fang, how long do you think the ITC will make a ruling? How much impact will it have?" Xu Kaiwei asked.

"I don't know. I called Zhang Rujing last night but I couldn't get through. I sent a text message about ITC. I don't know if he has seen it." Fang Zhuo said, "President Xu, you can ask the Goldman Sachs department to analyze the situation now." In this regard."

As long as Goldman Sachs is willing to act, it can certainly give a more comprehensive analysis.

DCM, IDG, and Deutsche Bank are the same, but the incident happened suddenly, and various news are true and false, so the focus has not been placed here.

Fang Zhuo also said: "SMIC's sales to the United States this year are about 1.3 million US dollars, and the annual sales amount is about 3.6 million US dollars. If the ban is really imposed, 36% of SMIC's sales will evaporate immediately, which will be fatal. hit."

Xiong Xiaoge:?

Is SMIC's sales situation so accurate?
Fang Zhuo turned his head to motion to Vice President Su Wei to turn on the projector.

Soon, the sales situation of SMIC in 2003 was greatly displayed in front of several presidents.

For a moment, Xiong Xiaoge thought he was opening SMIC's board of directors...

What is in front of us is obviously the annual sales table estimated by SMIC in the past 11 months.

Full-year 2003 sales are estimated at $3.65 million.

The US market sales were 1.34 million, accounting for 36.7%.

Japan is 0.41 million, accounting for 11.2%.

Europe is 0.40 million, accounting for 11%.

Formosa was 0.98 million, accounting for 26.8%.

Asia-Pacific (excluding Japan and Taiwan) was 0.53 million, accounting for 14.5%.

Xu Kaiwei coughed: "Mr. Fang, is this data accurate? SMIC is in big trouble this time."

Fang Zhuo looked at the president who sent him the information, and said affirmatively, "It's accurate."

"It is foreseeable that as SMIC's production line continues to release capacity, the importance of the US market to it will continue to increase. This is not only the sales market, but also the impact of technology transfer."

"Based on this consideration, if TSMC's evidence is all right, then SMIC can only use all costs to reach a settlement with TSMC."

"This all cost is... all cost."

Fang Zhuo paused, using his tone to emphasize his judgment on SMIC's actions.

Connor said pessimistically: "SMIC can only have half its life left at most, and it will not be able to compete with TSMC in three, five, or even ten years. Even if it can still go public, it can only linger."

He continued to say sincerely: "The fall of an industry benchmark, the impact of this impact may exceed your expectations, Mr. Fang, timely stop loss is never a cowardly act, but a wise decision."

Ice Core’s pile foundation project in Luzhou has just started not long ago, and most of the purchases of expensive equipment are still in the process of contact. DCM believes that withdrawing at this time is the best solution out of desperation.

Does DCM want to lose money?

Now it's time to break.

"Connor, you look at Goldman Sachs, you look at IDG." Fang Zhuo didn't mention Deutsche Bank, he pointed to the two over there, "Why are Goldman Sachs and IDG not in a hurry? They invest in the same way and face the same impact. As you said, an industry benchmark is about to fall..."

"But Mr. Xu and Mr. Xiong, their idea is to create another benchmark, instead of breaking up and sharing luggage like you."

Xu Kaiwei's expression remained the same, but Goldman Sachs was different.

Xiong Xiaoge's expression also remained unchanged. If you really count, IDG is divided into two companies, Huaxia and the United States, and social funds have contributed 3000 million US dollars.

Connor smiled, and he seriously asked for advice: "Mr. Fang, I am very curious about your confidence, capital, market, and technology. It seems that these three directions are all slipping in the direction of deterioration. Among other things, SMIC's listing Parents who have to fall do not know each other, do you admit that?"

"Admit." Fang Zhuo nodded.

"When SMIC goes public, the secondary market must be in a mess. Ice Core's production line will be completed at the earliest in early 05. What will be used for the next round of financing? Who will be willing to invest? How can I have the money to develop? How can I compete with those Foundry competition?" Connor asked calmly.

"Funding is indeed a big problem." Fang Zhuo still admits that it is reasonable to question this point. The fab is such a project that requires both technology and capital. It will not work without either.

He said slowly: "In the first round of financing, the local government plus Yike Group and my personal money basically accounted for half of the actual investment."

Because there is an option pool for talents, here is the actual investment.

"If you are unwilling to invest, Luzhou will not just watch the projects that have been settled with great difficulty be liquidated. This is one of them."

"Secondly, I personally still maintain the intention of additional investment."

Connor pointed out the problem: "As far as I know, most of the money invested by Mr. Fang this time comes from the appreciation of NetEase and Sohu's stocks. Where will you find such appreciation assets? Could it be that Mr. Fang is always Buffett?"

"Let's not discuss whether Buffett is Buffett or not." Fang Zhuo had a sincere look on his face, "Let's proceed from reality. Yike under my name is about to go public. This is an extremely high-quality asset."

He continued: "As long as Yike performs well after listing, the lock-up period will be over when the ice core production line is completed."

"If Yike stock is good, Bingxin will be good too."

Fang Zhuo strengthened the reciprocal relationship and said: "This time, Yike's listing is very important. I think Goldman Sachs, Deutsche Bank, IDG, and DCM can all consider holding Yike's stock. Mr. Su, go get it!" Our prospectus is here to show the four presidents."

What is the road show before the company goes public?

To put it bluntly, it is to sell the stocks that are about to go public to potential investors.

Su Wei got up in response and walked out of the conference room.

The four agency presidents in the conference room looked at each other.

Connor was stunned. He didn't expect such a turnaround at all. Bing Xin was about to lose money, so he asked him to take a heavy position in his stocks?

This, is this shameless?
Soon, Shencheng Yike's prospectus was placed in front of the four presidents.

Connor took the prospectus and first confirmed one thing, Fang Zhuo was really shameless.

Xu Kaiwei from Goldman Sachs said aloud at this time: "Eco's performance is indeed good. Considering its long-term copyright agreement with Sony Music, only Eco and Apple have sufficient competitiveness in this field in the US market, and they have also built moat."

Connor opened the prospectus without saying a word, and so did Zhang Hongli and Xiong Xiaoge.

Fang Zhuo changed to a new PPT at this time, and talked about Yike's performance and future development in a leisurely manner.

Well, consider it an advance road show.

Of course, Yike's profit is not as good as that of Apple, but it also has its own story to tell.

It has established its brand value in the fast-growing market of China, and it is expected to replicate the success of iMuscic in the future—of course, it seems to be possible for the outside world.

At the same time, although profits are low, sales are high.

Apple is not as aggressive as Yike in terms of channel development. They carefully share the profits of the machine, while Yike actively expands channels to ensure profits, making small profits but quick turnover.

Just as the APEX company quickly squeezed out Sony to become the No. 3 supplier in the United States with low-priced DVDs, Yike's mp[-] sales are expected to challenge Sony's walkman's sales position next year.

High sales bring paid interaction of online music, which is a reasonable story.

Fang Zhuo described it for 15 minutes in the conference room.

It can be seen that this small road show was very successful, and even Connor, who was full of complaints, did not raise any objections in this regard.

"Everyone, the success of Yike's stock price is my success, and I will not put down the ice core if I succeed."

"And, if Yike's market value is not satisfactory, I still hold shares in Sina."

"The assets of the first round of financing come from NetEase and Sohu's value-added assets. When necessary, the second round of financing can also have the value-added of Sina."

"This kind of financial security, Connor, what do you think?"

Fang Zhuo finally emphasized: "I invested 3 million US dollars myself. Am I going to sit back and watch the money go to waste? I can understand your feelings, but can you understand mine?"

Zhang Hongli from Deutsche Bank has been silent all the time, but now he comforted him: "Mr. Fang, the change is so sudden this time. We gathered here to make suggestions for Bingxin. I received the news as soon as possible. , Deutsche Bank also put a lot of pressure on me."

Fang Zhuo sighed and said, "Who doesn't have a lot of pressure? I put more money and effort into it."

He supported his forehead with his hands, and said with a choked voice, "I'm the one with the most pressure."

The collapse of adults is often only in a moment, and what's more, Mr. Fang's words do make sense.

Xu Kaiwei, Zhang Hongli, and even Connor were all moved.

Xiong Xiaoge raised his head, not knowing what to say.

The first time he thought of the staff meeting held by Guahao.com, the president also shed tears on the spot. Today's situation is much better... no crocodile tears.

This is called crocodile choking!
Fang Zhuo waved his hand to calm down his emotions, and then said: "Whether the capital market is optimistic or not largely depends on the development of our own ice core. Let's not worry about funds. The most important thing at present is technology."

"Hu Zhengming from TSMC is very important. He will fly from the United States to USTC at the end of next month. His guidance can bring great help."

"In addition, the University of Science and Technology of China and Hu Zhengming communicated through emails, and one thing has guided us in the direction."

"TSMC is now engaged in immersion technology with companies in the Netherlands, and Lincoln Laboratory in the United States has a similar solution. Hu Zhengming is very optimistic about the development of immersion technology. This may also be an opportunity for us to narrow the gap."

Zhang Hongli immediately asked: "You mean, license the technology from Lincoln Laboratory and bypass TSMC's patents?"

Fang Zhuo nodded: "We will have to wait until we meet Hu Zhengming to discuss whether it is feasible. The lawsuit between SMIC and TSMC will definitely last for a long time, and it will also attract the attention of the industry. Our ice core can Take advantage of this opportunity to chase two more steps and try."

"Moreover, it needs to be observed how much impact the SMIC incident will have. The current judgment is only out of routine. After all, it is the most dazzling fab in China, and there may be other forces to deal with it."

Connor was silent for a while, and said: "It's all a joke, how much can Hu Zhengming help? Is Lincoln Laboratory's technology mature? How can Yike's stock market performance be?"

"Then start with the easiest to realize. Yike's stock is the easiest to realize." Fang Zhuo said, "Could it be that there is no risk at all, just sit and wait for Bingxin to go public? Connor, next time there is such a Good thing, remember to take me with you."

Connor glared at Fang Zhuo, put his phone on the prospectus, and fell silent.

Fang Zhuo glanced around, and said, "The director's communication will be done first, and we will talk about any key new news from SMIC."

He told Su Wei: "Boss Su, let other people come in and listen to their analysis opinions."

After a while, teams from Goldman Sachs, IDG, DCM, and Deutsche Bank filed in to provide more professional analysis.

They sat in the conference room and saw that the expressions of several CEOs were all thoughtful. Even the most angry CEO Connor before was not angry, and kept a quiet posture, not knowing what he was thinking.

(End of this chapter)