my life reset

Chapter 614 Big money, counter-cyclical investment

Chapter 614 Big money, counter-cyclical investment

"Of course we can handle it! If we can't even handle the new round of price war, Glamor Semiconductor will really be defeated by others.

Next, I will talk about the second idea, which is counter-cyclical investment. "

Counter-cyclical investment is familiar to everyone here.The most typical one is that S star, relying on his own wealth and wealth, while using price wars to force his opponents into a corner, he is quietly expanding the scale of production.

When the dust of this round of price wars settled, the price of memory chips also fell to the floor.Just when the next economic cycle comes, S star can release its production capacity to its heart's content, but other opponents can only sigh.

Why can't others make counter-cyclical investments?

On the one hand, it is the reason of technical strength. If you do not have leading technology, you will not have leading products.If you can't guide the consumption trend, what do you need such a large production capacity for?
Another aspect is that counter-cyclical investment needs to be guaranteed with sufficient funds.However, most of the manufacturers that have gone through the baptism of price wars are not bad if they don’t go bankrupt. Where did the huge funds invest in the construction of factories?This is the difference between thinking and doing.

"Mr. Hu, I have confidence in technology, especially in the area of ​​flash memory. We will definitely be the world leader. However, if we implement this plan, our financial pressure will be too great."

Yan Hanzhang is well aware of the strength of Charm Research Institute. Under the leadership of Yang Chenglin and Sakamoto Takuya, they have embarked on a unique research and development path in terms of mobile device memory and flash memory.

On this point, Yan Hanzhang is not worried, what he is worried about is the problem of funds.

Glamor Semiconductor is now being suppressed by North America, and its shipments have been greatly reduced. It is already facing the pressure of survival.If we want to carry out counter-cyclical investment, the required capital is tens of billions, which is very huge.

"That's right, Mr. Hu, even if Charm Semiconductor conducts a new round of capital increase and share expansion, the funds that the few of us can provide will not meet the requirements.

We all know that Mr. Hu has a lot of money, and it is not a problem to spend tens of billions.But if you are really asked to pay the money alone, isn't it difficult to calculate the equity? "

Chen Hao immediately took up the conversation, not because he was stingy, but because it involved changes in the company's equity, no one would be insensitive.

Yes, Glamor Semiconductor has encountered great difficulties at present, but the difficulties will pass one day.If we were not optimistic about this company at that time, no one would invest in it.Now that you have already invested, under normal circumstances, you don't want the company's equity to change too much.

Because the amount of financing this time must be large enough to change the status quo.

Gao Mingkang didn't speak, but he also hoped that Hu Yang could give an explanation.

"Who said I have to invest by myself? No, Manager Liang is still here, I think it's better to let Hi-Tech Venture Capital come forward.

At the beginning, my original intention of establishing this fund was to support the development of the domestic semiconductor industry.Today, Glamor Semiconductor is in urgent need of funds, and Hi-Tech Venture Capital will naturally not stand idly by.

As for the way of financing, it is safer to issue corporate bonds.Other financing methods will either dilute your equity, or it will be difficult to get approval, and they are not suitable. "

Hu Yang will not cause internal discord at this time. He has no idea about the current equity situation, so he will not consider ways to increase capital and share.

He has a better way.

Liang Yu's mouth moved when he heard this, but he still didn't speak in the end.

"Manager Liang, you have heard Mr. Hu's suggestion. Do you have any questions?"

Chen Hao noticed Liang Yu's expression, so he asked a question.

Liang Yu thought for a while and said:

"Mr. Hu, the fund's current funds are quite sufficient. However, I have recently received a lot of applications, all of which are rising stars in the semiconductor industry, and some of them have passed the evaluation."

These words are very euphemistic, but the meaning is very clear, that is, if all the funds are given to Huijia Department, then Liang Yu will have no spare energy to support other companies with potential.

"Mr. Hu, Hi-Tech Venture Capital does not seem to have sufficient funds, which is a bit difficult. In addition, even if the funds can be used, if the debt ratio is too high, the company may not be able to bear it."

Gao Mingkang thought of other aspects, that is, the issue of corporate debt ratio.

Costs must be taken into account when running a business. Needless to say, the benefits of operating in debt, but the disadvantages are also obvious, that is, the high cost.

If Glamor Semiconductor's current profitability is very strong, then it's not a big problem.However, in the face of pressure from North America, the company's profitability has declined, and it is indeed unaffordable to increase excessive costs.

"Haha, you say it one by one, it's like a machine gun sentence after sentence, I can't hear clearly."

Hu Yang laughed and made a joke.

"Let's do one thing at a time. First, let's talk about the funding issue. Manager Liang, you don't have to worry about the funding issue. I decided to invest another 200 billion yuan in the Hi-Tech Venture Capital Fund in the name of Huijia International Investment. .”

At present, the funds on the account of Huijia International Investment are divided into two parts, one of which is in Xiangjiang, with 30 billion Hong Kong dollars.The other part is in the mainland. After paying Shenhai Jinke 1 million yuan, there is still 641.84 billion yuan left.

If Hu Yang invests another 200 billion yuan in the high-tech venture capital fund, there will be 441.84 billion yuan and 30 billion Hong Kong dollars left in the account of Huijia International Investment, which is still ample funds.

"Mr. Hu, don't you think about this matter? After all, the rate of return you invest in the high-tech venture capital fund will not be very high, which is a bit uneconomical."

Everyone got along well, Chen Hao hurriedly opened his mouth to remind him.

"It doesn't matter, it's better than keeping it on my account all the time."

Hu Yang nodded to Chen Hao, then said indifferently.

For him, money has value only when it flows, and it doesn't make sense to lie on the account.

The matter of funds was settled, and a stone in everyone's heart fell to the ground.

However, the cost of financing is still under pressure.

"Next, let me talk about the financing cost. At present, everyone must be aware of the stock price of Charm Semiconductor. As of the last trading day, the stock price has fallen to around the issue price, closing at 3.99 yuan."

When Glamor Semiconductor went public, the issue price was 3.80 yuan. Isn’t this price falling below the issue price now?
Even if a few people don't care much about the company's stock price, their expressions are not very good after hearing this.

Unexpectedly, Hu Yang paused for a moment, and then continued: "I estimate that the issue price will soon fall below the issue price in these two days, and even the integer mark of 3 yuan will be broken sooner or later."

In other words, is Charm Semiconductor's stock price likely to fall to 2 yuan or lower?
"Then our loss will be huge! Mr. Hu, do you think we should support the market later?"

Chen Hao calculated this carefully, and if it falls further, the company's market value will be ugly.

"I was going to talk about this problem. This time, because of fundamental changes in the company's fundamentals, the stock price has completely gone bearish. I estimate that the company's stock price will gradually stabilize after falling below 2 yuan.

Everyone, if the company's stock price falls below 2 yuan, I hope to conduct a stock repurchase.I am confident that with the improvement of the fundamentals of the company, the company's stock price will enter the upward channel again.If we repurchase shares at a very low position, it is tantamount to locking in the premium part of the next financing in advance. "

After repurchasing shares and then canceling them, the gold content of each share will naturally increase.

This is not the point. The point is that as the company's fundamentals improve in the future, the premium for financing will also increase.

On the basis of not affecting the rights and interests of major shareholders, the surplus obtained by such an operation is enough to offset the financial expenses for the next three years.

This is Hu Yang's plan!

"Hiss. That's a bold idea, but it might work."

Yan Hanzhang and others are not in finance, but after spending a few minutes, they can still understand Hu Yang's meaning.

To put it bluntly, it is to reduce the shares when the stock price is very low, and then issue additional shares at a premium to expand the shares when the stock price rises.

After the reduction and expansion, the shares held by major shareholders are basically unchanged.

"Have you figured it out? If you don't have an opinion, just do it. Manager Liang, after you go back, take out a charter and discuss it with Mr. Yan. What I mean is that the financing amount provided to Charm Semiconductor this time is 300 billion yuan. .

High-Tech Venture Capital can buy 200 billion yuan of bonds from Charming Semiconductor, and there is another 100 billion yuan. Mr. Yan, you can find a way to get a loan from the bank.The loan matter was agreed by the province and the city, so it shouldn't be a big problem. "

Even I have contributed 200 billion yuan, and the support promises promised by the province and the city should be fulfilled.

Based on Hu Yang's understanding of Qi Xiangmin, there really won't be any changes in this matter.

"Okay, Mr. Hu, I remember, I will put the financing of Charm Semiconductor at the top priority."

Liang Yu didn't say much, Hu Yang paid for the funds himself, he just had to follow suit.

Yan Hanzhang also said:

"Mr. Hu, I will implement the issue of corporate bonds and loans as soon as possible. In addition, I will come up with a plan within a week for strengthening research and development and building new factories."

Having a huge amount of money is not for the purpose of earning interest on the bank account, the money has to be spent, and the good steel has to be used wisely.

Hu Yang nodded, everyone added some details, and today's meeting is over.

Speaking of it, no matter Gao Mingkang or Chen Hao, they have cooperated with Hu Yang for so long, and they already have a tacit understanding.Otherwise, how could the bill involving tens of billions of dollars be passed so quickly?

"Mr. Hu, Mr. Gao, let's have a meal together. Look, it's getting dark."

Both Yan Hanzhang and Liang Yu had to work overtime at night, and once the meeting was over, they ran faster than a rabbit.

Hu Yang and Gao Mingkang walked at the end without any haste. As soon as they got downstairs, they saw Chen Hao standing there and hadn't left yet.

"Dinner? Well, then let Chairman Chen pay for it once."

Hu Yang hesitated, if not necessary, he really wanted to go home and spend more time with the little guy.

But Chen Hao has to give face, who made him Chen Jialin's father.

Gao Mingkang didn't refuse either, so the group of three came to a seafood restaurant.

"Mr. Hu, I don't think the fruit company should keep an eye on it too closely. I know that your primary target is Wesley now. Fighting on two fronts is a taboo."

The food and wine were served, and the three of them chatted while eating and drinking.

Chen Hao was talking gossip, and suddenly came out this sentence.

"Chen Dong, it's not that we are keeping an eye on it, but the fruit company is keeping an eye on Charming Electronics. Now, it is very difficult for Charming Electronics' products to enter North America, unless they give up their cooperation with Charming Semiconductor.

In this case, the domestic market is the most important, and Glamor Electronics must squeeze the market share of its opponents.As for the European market, the competition is fierce. Whether there is a fruit company or not, we have to work hard. "

Although he didn't know the meaning of Chen Hao's previous sentence, Hu Yang still explained it patiently.

"The truth is true, but if the fruit company is squeezed too hard in the domestic market, the suppression faced by the entire Huijia department may continue to escalate."

There was a little helplessness in Chen Hao's eyes, there was no solution to this problem.

"Chen Dong, please relax. There is a saying that soldiers come to block, water comes to cover, we can't be afraid of the suppression of North America, so we dare not compete with them? Besides, even if I am willing to make concessions, is it useful? Once weak, there will be a violent storm."

Hu Yang didn't say much, and Chen Hao doesn't blame him if he can't see clearly some problems.

But as a "comer", his memory will not lie. He knows better than most people today that some countries do not allow others to surpass it in the high-end industrial chain.

It is precisely because Huijia has the qualifications to threaten the North American semiconductor industry that it has suffered wave after wave of suppression.

"Chen Dong, I also think Mr. Hu is right. Let's, don't think about those useless things, just face the challenge bravely. If I don't believe it, I won't be able to survive."

Gao Mingkang can see clearly, so he never has any illusions.

Chen Hao didn't continue to argue, but drank a glass of wine silently.

"Mr. Hu, I have already received news that the provincial government is planning to hand over that woman to Xiangjiang. Now, I have nothing to say. When Jialin comes back from Europe, you should try to persuade him. Well, I still have something to do, let's take a step first, and you and Mr. Gao sit down for a while."

After Chen Hao finished speaking, he drank another glass of wine, stood up and walked out of the private room.

"Huh? What's the matter with Mr. Chen? Didn't he take the initiative to invite us out for dinner today? Why did he leave first?"

Gao Mingkang was very puzzled, he wouldn't turn his face if he argued a few words with his own people.

Hu Yang remained silent, he finally understood why Chen Hao brought up the matter of the fruit company.

Although Chen Hao doesn't like Liu Jia, he definitely loves his granddaughter.If Liu Jia was handed over to Xiangjiang, wouldn't the granddaughter become a motherless child?
It is estimated that after discussions with Li Kailong and others, they felt that it was difficult to keep Wesley, so they wanted to use this matter to intimidate Chen Hao and ask him to come out and say a few words for the fruit company.

But it is a pity that it is very difficult for Chen Hao to obstruct Hu Yang's plan with no conscience.What he said before going out was equivalent to confessing to Populus euphratica.

(End of this chapter)