Chapter 960
Domestic Enterprises Under the Butterfly Effect
In November, the Xixi Wetland in Hangzhou was shrouded in a thin morning mist. Most of the reeds had withered, and their grayish-white spikes swayed gently in the cool north wind, like countless hesitant hands waving in the wind.
Jack Ma stood in front of the floor-to-ceiling window in his office, staring at the wetland he had been watching for over a decade, clutching a newly printed document in his hand.
The cover of the document reads "Progress Report on the Preparation of Zhifubao IPO," with a date circled in red next to it.
That was the deadline given by the shareholders!
The door was pushed open, and the group's CEO, Zhang Yong, strode in.
The black coat was still damp and foggy from outside.
He placed a thick stack of materials on the table, his voice very low.
"Mr. Ma, the underwriting syndicate has updated the valuation model. Based on the latest profit forecasts and market share data, the market capitalization of the offering is expected to be between 200 billion and 280 billion US dollars. Even a small bite is enough for the entire Wall Street to digest for several years."
Jack Ma did not turn around.
Taotian Group's net profit exceeded 20 billion yuan last year, and its global active users exceeded 1.2 billion, covering four major sectors: payment, credit, wealth management, and insurance.
In the eyes of investment institutions, this is not a fintech company.
It's a gold mine yet to be tapped!
But another sentence kept churning in his mind.
Wang Donglai once told him: "Going public is not the problem itself; the problem is whether you are still the helmsman of Taotian after the listing."
He turned around, sat back down at his desk, and threw the preparation report in his hand onto the table.
"Old Zhang, do you think if Zhifubao goes public, will we still be able to do whatever we want like we do now?"
Zhang Yong was stunned for a moment.
He's worked with Jack Ma for so many years that he knows the man's thought process all too well. He never asks "Can we make money?" but only "Can we make it happen?"
"Mr. Ma, what do you mean..." he asked tentatively.
"What I mean is, after the IPO, Zhifubao will have to submit a report card every quarter. Profit growth cannot drop, market share cannot drop, and earnings per share cannot drop."
Jack Ma tapped his fingers lightly on the table, each word like a stone that had been pressing on his chest for a long time before he finally exhaled: "You and I are both very clear about the Zhifubao business model. If it goes public, won't it cause some risks?"
Zhang Yong fell silent.
He knew that what Jack Ma said was true.
The shareholder list of Taotian Group includes too many heavyweight investment institutions, and their value to Taotian is far more than just a "strategic layout".
They need to go public, they need to exit, and they need to turn their paper profits into real money!
However, changes in the regulatory environment, rising compliance costs, and intensified market competition are constantly shrinking Taotian's room for imagination.
The earlier a company goes public, the less uncertainty it faces, the higher its valuation, and the more successful its exit.
Jack Ma certainly understands this logic, but he has always tried to find a balance between the will of capital and what he wants to do.
Zhifubao is a new opportunity to create wealth, from which everyone can obtain substantial returns.
From shareholders and investment institutions to senior executives and employees.
As soon as this news spread, the property prices near the company in Hangzhou doubled, which speaks volumes.
"The shareholders have been urging us again recently."
Zhang Yong lowered his voice even further: "Last week, the board of directors clearly stated that they hoped the listing plan could be completed in the first half of next year. And it's not just the listing itself, but also the post-listing performance growth path needs to be locked in in advance. They said that if the profit growth rate does not meet expectations, the valuation model of the underwriting syndicate will have to be adjusted downwards. Even if it's only adjusted by a few percentage points, the market value affected will be tens of billions of dollars."
Jack rubbed his forehead.
The office quieted down, with only the faint sound of air from the air conditioner vents.
He recalled the first time he sat in this office and shouted to the whole team, "Let there be no difficult business in the world," with this same reed marshland outside the window.
But it was springtime, and the reeds were so green they looked like they'd just been painted.
At that time, he felt that as long as he ran fast enough, his opponents would not be able to catch up; and as long as he was determined enough, the rules would tilt in his favor.
Now he suddenly realized that the person pushing him forward was no longer himself.
"Old Zhang."
He took a deep breath, his gaze sharpening, and said seriously, "Tell me, what would happen if we brought Wang Donglai into this IPO?"
Zhang Yong thought he had misheard.
But Jack Ma didn't give him time to react and continued talking on his own.
“Yinhe Technology, which is in Wang Donglai’s hands, currently has the strongest assets and credit in the world. If he can intervene as a strategic investor before the IPO, it will directly send a signal that Zhifubao is not just a financial platform that has been swept up by the capital market. Its technological foundation, data security standards, and business model are backed by the top technology companies in China.”
"This is a structural advantage for regulators, investors, and our own team."
He tapped his finger on the table, as if stamping the sentence.
Zhang Yong frowned.
He thought for a long time before speaking: "Mr. Ma, what you want is not Wang Donglai's money, but a big banner. But he is not one of our people. His joining is like us inviting a surveillance camera to be installed in our board of directors. For many investors, this is not a plus, but a new variable."
He paused, then softened his voice further: "Besides, he had previously warned you that going public should be approached with caution. Now that you've pulled him into the picture, what will he think?"
What Zhang Yong didn't say was that, based on his understanding of Wang Donglai, it was unlikely that he would agree.
Deep down, Wang Donglai disapproved of what they were doing; otherwise, he wouldn't have done it.
Jack Ma stood up and walked back to the window.
The reeds swayed in the wind, their grayish-white plumes resembling countless hesitant hands.
He remained silent for a long time before turning around.
"His reminder to me precisely shows that he has seen the potential pitfalls. Bringing him in might lead to some other pitfalls. But at least, before we step on those pitfalls, we will know where they are. As for how investors view it, as long as Galaxy's name is on the shareholder list, and as long as the core technology licensing agreement is genuine and verifiable, the interpretations of the capital market and regulators will inevitably diverge."
He sat back down at his desk, his voice becoming even more resolute: "Some will interpret it as an endorsement of our profitability, while others will interpret it as an implicit constraint on our data governance standards. And both interpretations are exactly what I need. What I need is a Taotian that can survive amidst disagreements."
Zhang Yong closed his notebook, but couldn't help asking, "What if he doesn't answer?"
Jack Ma picked up the IPO preparation report and turned to the page with the date circled in red.
He looked at it for a long time, then said, "Then let's think of another way." ...
Shenzhen.
The palm trees at the Chrysanthemum Sakata headquarters are still lush and green, with only a hint of the coolness of late autumn in the south when the wind blows.
Ren Zhengfei sat at his desk, with a thick technical roadmap document spread out in front of him, internally codenamed "Qiankun".
This is not a specific product, but a whole strategic vision that goes hand in hand with Galaxy Technology.
He had been speaking for almost half an hour. He picked up his teacup to moisten his throat and looked up at the leader opposite him.
"We don't manufacture cars directly. We provide a full-stack solution, from chips to operating systems, from electric drives to the cloud. Car manufacturers can just take it and put their own label on it. We take the lion's share of the profits, and they bear the risks."
He closed the file, speaking casually, as if describing a circuit board wiring scheme.
Yu Chengdong stood up and pulled up the architecture diagram that he had prepared beforehand.
“From the most basic intelligent driving computing platform and HarmonyOS vehicle operating system to millimeter-wave radar, lidar and high-precision maps, we integrate core components and vehicle design, but do not touch the final manufacturing.”
He pointed with a laser pointer to the densely packed partner brands on both sides of the architecture diagram, his voice carrying his usual decisiveness.
"Automakers can differentiate themselves by adding higher-level applications to our architecture, while we safeguard the gross profit at the very bottom. Once this foundation is in place, if automakers only focus on the most superficial tuning and interior selection, their share of the overall vehicle value chain will be extremely limited. We are not just supplying parts; we are redefining how the automotive industry should slice the pie in the future."
After listening, the leader did not directly evaluate the solution itself, but asked a very simple question: "How long is the quality verification closed-loop cycle for your pre-integration solution?"
Yu Chengdong paused for a moment, then laughed, a laugh that carried a kind of honesty that came from being seen through.
"The leader asked a crucial question. In the past, when we started building cars from scratch, the biggest problem was not technology, but the inability to keep up with reliability verification and supply chain management. Mr. Ren made the final decision: not to make heavy asset investments in manufacturing, but to deploy the limited number of elite engineers to fill the gaps in algorithms, chips, and cockpit architecture."
He put away the laser pointer, his tone carrying a rare hint of self-reflection.
"However, Mr. Ren also told me that if this path doesn't work, Chrysanthemum will eventually have to learn to tighten the screws on the assembly line herself in the workshop."
Ren Zhengfei took over the conversation, speaking very slowly, as if he were carving words.
"Chrysanthemum's core asset is its people. We don't treat people as consumables, nor do we treat suppliers as supporting roles. The deeper we root ourselves in algorithm research, optical design, and chip architecture, the wider our partners' branches and leaves can grow."
He paused for a moment, then looked over his reading glasses and onto the leader.
"Over the next twenty years, tech companies must learn to simplify. It's not about taking on everything themselves, but about knowing which parts they must do themselves and letting others handle the rest. Profits must be shared to attract talent; maintaining basic standards is the key to long-term prosperity."
Looking at the much older man, the leader of Shenzhen suddenly realized that the reason why chrysanthemums were able to withstand round after round of sanctions and blockades was not because of their advanced technology, but because of their strategic determination to take root in the deepest part of the country.
The name "Qiankun" also has another meaning within the chrysanthemum: the future is uncertain, and we are all potential dark horses.
In this game of chess, the chrysanthemum chose a path that seemed circuitous but was actually the most solid.
……
On the other side of Shenzhen, there is the X-Mi Technology Park.
Lei Jun looked much older and haggard.
On the desk lay the latest design draft of X-Mer's first model, next to which was a parts cost analysis report recently submitted by the supply chain management department, and the latest round of competitor pricing strategy analysis from the marketing department.
The three documents were stacked together, completely covering the desktop.
The office door was pushed open, and Lao Zhou, the head of X-Mi Automotive's supply chain, strode in, holding a freshly printed document.
"Mr. Lei, the supply agreement for power batteries has been confirmed by Galaxy Energy. Xuanwu Battery's flagship model will be supplied to us first, and the price is 5% lower than the market average."
He took a breath and handed over the documents.
"Mr. Liao from Galaxy Energy asked me to pass on a message: Mr. Lei, rest assured in building cars, there will be enough batteries. He also said that if we have any optimization needs in the battery management system later, their Tiangong platform can open up the computing power interface for us to run simulations, without any extra charge."
Lei Jun took the report and turned the pages one by one.
He read very slowly, not skimming through the text as he usually did, but checking every single number almost word by word.
When he turned to the last page, his finger stopped on the price column, and he remained silent for a long while.
Lin Bin, the vice president of design standing next to him, clearly saw that Lei Jun's eyes lit up.
"President Lei..."
Lei Jun pinched the bridge of his nose with his thumb and forefinger, his voice a little hoarse.
"Do you know what my biggest fear was when I was traveling around the country to visit factories last year? It wasn't that I couldn't make cars well. I've been making mobile phones for so many years and I still have confidence in supply chain management. It was the batteries."
He put his glasses back on, and his speech returned to its usual steady pace.
“I’m afraid that after we finally manage to develop the molds, set up the production line, and procure the parts, the Xuanwu battery supply will be insufficient, or the price will suddenly double. In that case, it won’t just be a matter of how much money we lose; we’ll die before the final whistle blows.”
"Even if we secure the exclusive supply rights, it doesn't seem like a sure thing to me."
He stood up, walked to the window, and looked at the factory buildings that were being expanded in the industrial park.
"Now I'm relieved, based on Galaxy Energy's initiative to lower the price."
“Galaxy Energy provides more than just batteries; it provides a stable expectation. With this expectation, I dared to bring forward the original plan of launching at the end of next year to the middle of the year, dared to promise the delivery time to the dealers, and dared to explain the still loss-making figures in the financial report to the investors.”
Old Zhou hesitated for a moment before speaking: "President Lei, there's one more thing I need you to decide on. The contract manufacturer has recently reported that our production line worker turnover rate is too high. The reason is that the nearby Galaxy Technology factory is hiring, and the salary is much higher than ours. The workers are voting with their feet; once the experienced workers leave, the newly recruited ones have to be retrained. Right now is the most intense time for trial production, and the shortage of workers is really painful."
Lei Jun turned around, looked at Lao Zhou, and didn't hesitate at all.
"Raise! Not just a little, but to a level that can compete with Galaxy Technology. Social insurance and housing fund contributions will be made in full, overtime pay will be calculated according to labor law, and the year-end bonus pool will be established in advance. As for the employee benefits mentioned before, paid leave, training fund, and children's education subsidies, there can be no more delays, and they must all be implemented by the end of the year."
Lin Bin quickly did some mental calculations, then looked up as if to say something but hesitated.
Lei Jun waved his hand, his voice low but extremely firm: "I know what you're going to say, that it will increase costs, affect profits, and make the numbers on the IPO report look even worse. But have you thought about it? If we can't even retain workers, who are we going to show our profits to?"
He picked up the battery supply agreement and patted it lightly in his hand.
“Wang Donglai pointed out the way long ago: treating employees well is not charity, it's an investment. The supply price of Xuanwu Battery is 5% lower than the market price, one of the conditions being that the production line workers' treatment must meet the standards. This is not holding us back, but using the logic of the entire supply chain to tell us a principle: only those who are willing to give workers decent treatment deserve the best supply chain resources.”
He put down the documents and glanced at everyone in the office.
"Xmi Auto is my last entrepreneurial venture. I've staked everything on it. It's not about making an ordinary car, but about making a car that young people can afford, enjoy using, and feel proud to drive. To achieve this, in addition to good technology, good design, and a good supply chain, we also need a stable, dignified team that is proud of this product."
Old Zhou closed his notebook, only responding with a single, deeper, and more steady voice: "I'll take care of it right away." (End of Chapter)