Chapter 635
Impenetrable
Chapter 635 Impenetrable (4k)
Wherever people are, there the storm will be.
This is not only Xu Xin's feeling, but also the feeling of many people in the industry who witnessed the "explosion" of the head of silicon carbon. Repeated facts have proven that Yu Xing does indeed have the ability and influence of a major short seller.
From the Shenzhen Stock Exchange to the Hong Kong Stock Exchange, from the Hong Kong Stock Exchange to Frankfurt, from Frankfurt to Nasdaq...
Yesterday it was burning through Chinese Yuan, today it's burning through Euros, tomorrow it'll be burning through US Dollars...
This performance dispelled any doubts some had about whether the "members" were still the "leaders."
However, with fires here and fires there, and stock prices falling here and there, the losses amount to at least hundreds of millions, and often billions or even tens of billions. The grudges and feuds between short sellers and listed companies seem quite distant in the news reports.
When Guo Shanfeng was first exposed, Dong Zeyou was also caught up in the attention, but later he only paid attention occasionally, wanting to know whether such an evil short seller's company could actually go public, and also wanting to know whether he would lose in a series of lawsuits.
As the chairman and general manager of Tongshi Nayuan, and also the head of a non-listed company, he never expected that he would suddenly be connected with the other party.
Before Guo Shanfeng's exposure, Dong Zeyou had heard about the deeds of the head of the carbon silicon industry on many occasions. He knew that Guo Shanfeng had come to Tongshi as a consultant to the province, ruined a cooperation between the city and a new energy project, and was not optimistic about another ongoing cooperation.
However, the latter was still pushed forward and implemented.
Unfortunately, once the news of Guoshanfeng's involvement was exposed, problems quickly arose with the project, causing Tongshi to have great hesitation about whether to continue its cooperation with Zotye in the new energy field, and it also faced great pressure from the province.
Jinma Co., Ltd. is still suspended from trading, and the operation of the chain of Tieniu-Jinma-Zotye is still under investigation. The copper market has to give this cooperation a more careful consideration.
To put it bluntly, the companies that the big short sellers have named have all encountered problems, big and small, and their influence is limited to a small area. It is not a wise move to continue pushing forward the project under pressure now.
If a bigger problem arises, they could previously claim ignorance, but now they will need to take responsibility.
Dong Zeyou knew that the city was in a real bind lately. Whenever these things came up at the dinner table, he would inevitably complain or even curse Yu Xing. After all, the city was promoting new energy as a direction for economic transformation, hoping to take advantage of the industrial boom to develop it.
Now, things are much better. The big short sellers can still easily list their companies in Hong Kong, while local projects are facing a dilemma.
Given this situation, based on his personal feelings, and also concerning his career, he reacted very coldly when he was suddenly approached by the Silicon Carbon Group for cooperation.
Tongshi Nayuan is a local state-owned enterprise that mainly produces battery precursor iron phosphate. It is backed by two listed state-owned enterprises, Anada and Zhonggang Tianyuan, with the former holding 70% of the shares and the latter holding 30%.
Although the company is also pursuing a path in the new energy ecosystem, Dong Zeyou does not believe there is a need to connect with the silicon carbon group for any cooperation.
Who do you think you are, some kind of supreme ruler or short seller? How dare you interfere with a non-listed upstream company like mine?
However, after Dong Zeyou showed no intention of making contact, Yao Yanghui, who claimed to represent the carbon silicon supply chain management company, arranged a meeting and discussion through the city's investment promotion department.
Dong Zeyou agreed to meet and talk, but he still couldn't figure out the other party's intentions.
Silicon Carbon focuses on vehicle R&D and manufacturing, and does not cover battery business. CATL, the battery supplier, is not a client of Tongshi Nayuan. If we have to talk about potential partners in related businesses, it should be CATL that is negotiating, or at least Silicon Carbon should involve CATL, rather than just Silicon Carbon alone.
In addition, CATL's suppliers are very stable, and they all have long-term agreements. Moreover, it is usually not CATL that negotiates directly, but rather CATL's supplier, Defang Nano, that sends people to negotiate.
After carefully considering the situation, Dong Zeyou consulted his friends in the city and learned the latest news: it is said that silicon carbide and Ningde are going to jointly build a factory, and the factory will be operated by the former.
Furthermore, Yao Yanghui, who came from Lingang, may hope to cooperate with Tongshi Nayuan on equity in order to form a deeper bond.
As for why it's copper market sourced...
Dong Zeyou believes it is likely an apology from the Silicon Carbon Group for disrupting local projects.
Of course, Yao Yanghui, who came representing carbon and silicon, cited the region's radiation advantage as his reason.
The meeting between the two parties was fairly standard. However, when Dong Zeyou reported to the controlling shareholder, Anada, after the meeting, he gave a strongly biased suggestion that he was unwilling to cooperate with the Silicon Carbon Group at the equity level.
Dong Zeyou is the deputy general manager of Ananda and has a lot of influence.
"The silicon carbon plant hasn't even been set up yet, we don't know how it's going, but now they want to acquire our shares and a seat on the board of directors."
"We have enough funds for development, and production capacity will be released by the end of the year. We also don't have to worry about orders."
"And that short seller, he stirs up trouble, who knows what might happen in the future."
Dong Zeyou strongly disliked the unusual actions of the Silicon Carbon Group. He believed that if they were to cooperate, they should cooperate normally. Bringing over this set of equity assets did not seem like a good thing.
"Old Dong, the silicon carbide vehicles are selling well, and the city is still willing to see Nayuan cooperate with the other side. It might be a good opportunity for expansion." Zhu Guanqun, chairman of Anada, conveyed the city's message politely. "You said this cooperation model won't work. How about we try something more flexible?"
The copper market was also quite surprised by this contact from the silicon carbon group.
However, Dong Zeyou himself was a member of Annada's faction and was fully responsible for Nayuan, and the cooperation method of carbon silicon was also unconventional, so the city's attitude was not particularly enthusiastic.
Soon, Dong Zeyou met Yao Yanghui for the second time.
This time, he made a slight concession and flexibly proposed cooperation conditions. Equity could be discussed, but no seats would be given on the board of directors, and his side would insist on completely independent operation.
Yao Yanghui offered room for negotiation on price, but insisted on having a seat on the board of directors.
A stalemate has occurred between the two sides.
"President Dong, why does Silicon Carbon insist on a seat on the board of directors?" Ke Yu, the director of Nayuan who participated in the talks, didn't understand why Silicon Carbon was so unwilling to back down. They insisted on getting a seat before they would continue to move forward.
"If they want to get involved, they need to have a legitimate reason," Dong Zeyou said disdainfully. "I think they're just trying to ride on Yu Xing's coattails and dreaming big."
He is both the major shareholder representative and has full control over the company's operations. Now that the company is financially secure, why would he need to introduce someone who hinders it?
Ke Yu nodded slightly and said, "President Dong, I heard today that Zotye may be resuming operations."
“Zotye’s project is the real big one; they’re making complete vehicles,” Dong Zeyou said. “This Yao Yanghui isn’t even part of the Carbon Silicon Group; he’s just a supply chain company under Carbon Silicon. Their joint venture with CATL hasn’t even started yet. He’s just using their connections to demand equity and a seat, and he’s quite arrogant.”
He now fully understands that Yao Yanghui is an executive at a silicon carbon supplier management company. Silicon carbon group is about to go public, but this company is a non-listed business.
Dong Zeyou believes that such cooperation is not of high value. His attitude is that if cooperation is possible, it should be done according to his own conditions; if cooperation is not possible, then so be it.
However, before the third meeting could begin, Dong Zeyou received a call from the city government, which instructed them to try their best to facilitate the cooperation, with the primary goal of securing funding from silicon carbon. This funding would allow them to expand production and also connect with the joint venture between silicon carbon and Ningde.
Regardless, the priority is to get the money. Dong Zeyou has been the head of the company for many years and is not entirely satisfied with this pressure, but he has not lashed out. During his meeting with Yao Yanghui, he accepted Yao's request for a board seat in principle, but also indicated that the change of seat would have to wait until the next shareholders' meeting.
Yao Yanghui, representing silicon carbon, agreed.
Both sides have basically reached a consensus on cooperation.
After the meeting, Director Ke Yu and the Chairman saw off the silicon carbon team, and said, "The seats aren't that important. We have plenty of seats, so we're not afraid of them causing trouble."
“A seat? What seat?” Dong Zeyou sneered. “First, transfer the money in. Whether or not there’s a seat depends on a joint decision. If Carbon Silicon insists on coming, then they need to know one thing: Nanosource isn’t decided by Carbon Silicon.”
Ke Yu hadn't expected the chairman to have such a plan, and a sense of unease arose in his heart. Although this was a non-listed business of silicon carbon, there was still that big short seller behind it. Wouldn't something go wrong?
Chairman Dong Zeyou didn't hide his words from others; as he spoke, there was naturally a chorus of support around him.
As Ke Yu watched this scene, a phrase suddenly popped into his mind: impenetrable.
If needles can't get in and water can't get in, then we don't know if short sellers can get in.
……
"Silicon carbon is going to accelerate its vertical integration."
"The joint venture operates on a dual-track system of self-production and external procurement, which maintains flexibility."
"When I get back, I'll have Yao Yanghui give me a report in person."
Yu Xing from Hong Kong immediately reviewed the project progress documents from the silicon carbon supplier management company, which this time emphasized the cooperation with Anhui Tongshi Nayuan Company.
all the best.
Nanosource produces lithium iron phosphate, which is the core precursor for the cathode material of lithium iron phosphate batteries.
Silicon Carbon Group hopes to have greater control in this segment, as it is a key factor in controlling the cost of lithium iron phosphate cathode materials.
CATL primarily purchases products from suppliers, mainly Defang Nano and secondarily from Taifeng Xianxing, through long-term contracts and joint technology research, thus ensuring its focus on its core business.
However, although Silicon Carbon Group is taking over the battery technology from CATL, it still wants to conduct deeper upstream and downstream integration in order to further reduce costs.
Therefore, before the joint venture project even started, other related actions were implemented step by step.
In addition to its cooperation with Tongshi Nayuan on iron phosphate, the Carbon Silicon Group hopes that the company will further expand its business scope and enhance its position in the industry chain. This would require the group to have greater say and even decision-making power in the company.
Yu Xing felt this was a win-win situation, as the copper market itself also wanted to make achievements in the new energy field.
He put down the documents he had finished reviewing and, seeing that the car owner and reporter Shi Kairui had basically completed the setup, chatted with him for a few minutes about his experience using Kyushu.
Shi Kairui gave it high praise: "President Yu, this is a product performance that I did not expect to see in a domestic car. Therefore, I will firmly buy silicon carbon stock."
Yu Xing laughed and said, "Many people are not optimistic about the performance of silicon carbon on the ChiNext board, and some are even shorting it."
“Mr. Yu, I don’t know much about this. I just think the product is pretty good, and the policies in mainland China are quite supportive. So, in the long run, the market value shouldn’t stay like this, right?” Shi Kairui observed Mr. Yu’s expression.
Yu Xing asked, "Does this mean the interview has begun?"
Shi Kairui immediately said, "Mr. Yu, we're not just chatting casually, let's start now, let's start now. Mr. Yu, you've stirred up a lot of waves in the financial market since you came to Hong Kong. Many people are wondering, why are you so accurate in grasping the fundamentals of listed companies?"
“Well, the more you short sell, the more experience you gain,” Yu Xing said thoughtfully. “I’m a medical student, and medical students are always accurate when they make a cut.”
Shi Kairui immediately pretended to take notes: "Okay, I understand. If you want to short sell well, you have to study medicine."
Yu Xing laughed and said, "Hurry up and bring it up. I've seen all the scenes I'll ever face in my life since I came to Hong Kong. In fact, I've said everything I need to say. You media outlets can compile each other's reports and we can put this matter behind us."
Shi Kairui said seriously, "No, President Yu, everyone is still very curious about you and Guo Shanfeng. I want to ask a question: Is Liu Wanying, President of Red Falcon Capital, also a member of Guo Shanfeng?"
Yu Xing shook his head: "No, she isn't."
Shi Kairui blinked and asked again, "Where is Mr. Hu Xubo from Qiming Venture Partners?"
Yu Xing laughed and said, "Why would you ask about him? He's not him either."
Shi Kairui immediately followed up with, "What about Xiong Xiaoge, the CEO of IDG?"
Yu Xing hesitated for a moment: "This... don't ask anymore, you can't keep asking about every single name."
Shi Kairui clearly sensed the difference in President Yu's attitude. This time, instead of denying it, he made excuses!
He pressed on quietly, "Isn't Xu Xin, the CEO of Capital Today, also an example?"
"Haha, even if it were true, I couldn't say with that kind of question." Yu Xing shook his head repeatedly. "There's no point in asking who the members are. Guoshanfeng is just an independent research organization, and we don't need to have any biases about it."
Shi Kairui truthfully recorded President Yu's attitude.
He wasn't making baseless accusations; this was a close partner of the Silicon Carbon Group, so it was only natural that they would be suspected.
"Mr. Yu, you didn't answer the reporters' follow-up questions about LeEco earlier." Shi Kairui brought up the group interview with the Hong Kong Stock Exchange, a topic that everyone was quite interested in after reviewing the situation.
Yu Xing shook his head: "Let's not talk about this. I have to be responsible for the judgment of the listed company."
Shi Kairui nodded: "So, Mr. Yu, as long as you talk, your words are responsible. This applies to SaaS, wearables, and gene sequencing, right?"
Yu Xing looked at the reporters in front of him who were trying to deduce the truth in reverse and sighed: "Look at you guys, there's no need for this, don't overanalyze it."
Shi Kairui understood; there was no need to overdo it, but reasonable extensions were acceptable.
Yu Xing observed the expression on the person's face. He wondered when it had started, but it seemed that everyone was trying to reach some kind of consensus about LeEco.
(End of this chapter)