Chapter 992
A scene of flourishing life and prosperity
“I acknowledge that there is indeed some room for debate regarding the current leverage ratio. But precisely because of this, we hope to use the listing to complete a structural transformation, by introducing strategic investors and replenishing capital, to gradually reduce the leverage ratio to a more reasonable level.”
"After listing, we will gradually incorporate all credit businesses into the licensed financial institution system and accept the same regulatory standards as banks. This is not to evade regulation, but to proactively embrace it. Listing itself is not the goal, but a process of quantitative to qualitative change in leverage, using capital market funds to replace the risk exposure of excessive leverage."
"We need the support of our leaders, and we need you to give us some time and an opportunity."
His throat felt a little dry after he finished speaking, but he didn't touch the teacup. He just sat there, looking into the calm and deep eyes opposite him.
He knew he had played all his cards, and the other party had only asked the most basic question.
Can Zhifubao's risk control withstand systemic risks?
He didn't give a perfect answer to this question, and he knew that better than anyone else.
He looked out the window at the old locust tree swaying gently in the early spring breeze, its branches just sprouting tender green buds. He suddenly remembered many years ago when he first sat in a dilapidated office and talked to a few investors about a project called Taobao.
At that time, he had nothing—no money, no resources, no backing, only passion and a silver tongue.
He eventually succeeded.
Now he sits in the most central courtyard of the capital, facing a man who wields immense power. His passion remains, and his words are still sharp, but some have already seen through his true intentions.
The leader slowly stood up, walked to the window, turned his back to him, and remained silent for a moment.
The branches of the old locust tree outside the window swayed gently in the wind, as if giving a silent answer to the persuader who had come from afar.
"This plan has its value, but the risks cannot be simply listed in the technical white paper. Issues such as leverage ratio, ABS revolving, and the quality of underlying assets must be clearly explained. Listing is not the end, but the beginning. Don't always think about using a larger valuation to cover the risk exposure; risks cannot be covered up, they can only be dismantled."
He turned to look at Jack Ma and said calmly, "Have the team refine the plan further. The issues need to be addressed in depth and thoroughly. This isn't just to appease me; it's for your own sake."
He provided an opening.
Although the measures were tightened, with leverage reduced, risk exposure eliminated, and the quality of underlying assets clearly defined, at least the door wasn't closed off entirely.
Jack Ma stood up and bowed to the leader.
Upon returning to Hangzhou, he immediately convened a meeting of senior executives, breaking down every word of the leader's speech, revising the plan, and requiring the team to substantially reduce the leverage ratio, make the ABS cycle transparent at each level, thoroughly investigate the quality of the underlying assets, and conduct stress tests to the most extreme scenarios.
After making these arrangements, he sat alone in his office, staring silently at the reeds outside the window for a long time, before picking up his phone and making a few calls.
Soon, Jack Ma had a newly printed copy of the "Zhifubao Science and Technology Innovation Board and Hong Kong Simultaneous Listing Plan (Revised Draft)" spread out in front of him, next to which was a "List of Strategic Investors". The names of the institutions on the list were densely packed on two pages, and the total subscription amount was astonishing.
But at this moment, what kept replaying in his mind were every detail of that meeting.
He had no way out; he had to succeed.
The news spread faster than anything else in Beijing's high-end financial circles.
One of the attendees said at a private dinner, "Old Ma is still running, the door isn't completely closed," and that very night the news spread throughout the investment circles of Beijing, Shanghai, and Hangzhou.
The following day, Jack Ma's phone was ringing non-stop. Masayoshi Son of SoftBank called from Tokyo to inquire about the progress via video call, and the vice president of Temasek flew from Singapore to Hangzhou.
Domestically, the National Social Security Fund, China Investment Corporation (CIC), the National Manufacturing Transformation and Upgrading Fund, and several state-owned enterprise (SOE) investment platforms have all expressed their intention to continue investing through various channels, adding, "We'll feel relieved once the leverage is reduced." The head of one SOE investment platform made a very direct statement over the phone: "Old Ma, it's not easy for you to bring back such a window from Beijing this time. We've long felt that the leverage issue needs to be reduced, and if you're willing to reduce it, we're willing to follow. It's not about helping you, it's about helping ourselves. The Zhifubao brand can't fall; if it does, no one can afford the losses."
Jack Ma hung up the phone and smiled at the screen.
That smile contained self-deprecation, weariness, and an excitement that came from finally seeing a crack after being suppressed for so long.
He began personally screening the list of investors. At this point, the game was no longer about playing skills, but about who was qualified to sit at the table.
Those hot money investors who only want to ride the wave and make quick money will be politely rejected; those long-term investors who are truly patient, have resources, and can withstand pressure at critical moments are the strategic allies that Ant Group must acquire for its IPO.
Three days later, Jack Ma hosted a small private dinner in the reception room on the top floor of the Zhifubao headquarters.
Fewer than ten people were invited, including representatives from the National Social Security Fund, China Investment Corporation, a state-owned enterprise investment platform, SoftBank, Temasek, and two leading domestic insurance asset management companies.
Before the banquet began, he stood by the window of the reception room, looking out at the Xixi Wetland in the night, then turned to everyone present and slowly began to speak: "Ladies and gentlemen, the listing plan for Zhifubao is being adjusted according to the leadership's requirements. The leverage ratio has been reduced, the ABS cycle has been clearly dismantled, the underlying asset quality has been thoroughly investigated, and the stress test has been conducted to the worst-case scenario. I know you are all waiting, waiting for the regulatory approval. But I want to say that waiting itself is the biggest risk. Now the cards are on the table; whether you play or not is up to you."
There were no small talk, no formalities.
Some people lowered their heads in thought, some exchanged glances, and some tapped their fingers lightly on the table, weighing the significance of this gamble.
A moment later, the head of an investment platform of a state-owned enterprise was the first to respond: "Yes. But the leverage issue must be properly implemented, not just talked about, but written into the plan in black and white."
The others nodded in agreement, and no one left.
After the banquet ended, Jack Ma stood alone by the window of the reception room, watching the first light of dawn on the horizon, and then picked up his glass of Longjing tea, which had long since gone cold, and drank it all in one gulp.
He knew that he had pried open this door bit by bit using leverage, his trump cards, and the credit he had built up over the years.
Behind him, Huangtuan, Ele.me, and Pinhaofan had just signed the industry association charter, rewriting the rules of the game in the food delivery industry; Pinduoduo and Taotian were still fiercely competing for the lower-tier market, and Xinghuo Express was forcing Cainiao to accelerate its transition from franchising to direct operation; and he himself didn't have many cards left to play. He had to win this gamble, because he couldn't afford to lose.
While Hangzhou is still in the midst of negotiations and weighing options, another major event is taking place in the southwest of Chongqing and Chengdu. The signing ceremony for the cooperation agreement between Chrysanthemum Factory and Seres was held quietly at the Chongqing-Chengdu factory.
There was no red carpet, no fanfare, just a simple white background with the words "Wenjie Brand Strategic Cooperation Signing Ceremony" printed on it, next to chrysanthemums and the Seres logo.
The venue was a corner of Seres' newly built assembly workshop. Behind the backdrop was the production line, and the robotic arms were still working tirelessly, as if providing a silent accompaniment for the ceremony.
Yu Dazui flew in from Shenzhen and went straight to the factory after getting off the plane.
He first took a walk around the production line, carefully inspecting the chassis welding and battery pack assembly of Seres' new generation range-extended platform, and then squatted down to chat with an engineer who was debugging a millimeter-wave radar for a while.
The engineer was young, probably in his early thirties. His fingers flew across the oscilloscope, adjusting parameters. Yu Dazui asked him if he could get the radar and the vehicle's electronic systems working together by the end of the month. The young man didn't even turn his head, only saying, "I'll work overtime to get it done for you."
At the signing ceremony, Yu Dazui didn't give a long speech, but simply said: "China doesn't manufacture cars, but it can provide its best technology to its most trusted partners. Seres has complete car manufacturing qualifications, a mature factory, and the courage to be a pioneer. China has a full-stack intelligent vehicle solution, from intelligent driving chips to HarmonyOS in-vehicle system, from electric drive to chassis domain control. The Wenjie brand doesn't belong to China, nor does it belong to Seres; it belongs to everyone who is willing to believe in China's intelligent vehicles."
The chairman of Seres stood next to him, wearing a dark blue work uniform with a brand-new Wenjie brand badge pinned to his chest. He didn't say much, only one sentence: "We transformed from van manufacturers to new energy vehicles. People used to think we were unsophisticated, but now we want to work with Chrysanthemum to make Wenjie a brand that Toyota and Tesla take seriously."
After the signing ceremony, Yu Dazui did not attend the banquet. Instead, he sat alone in the factory workshop, staring blankly at the production line for a long time.
This is Chongqing-Chengdu. A little over a decade ago, this area was a vast expanse of farmland and wasteland. Now, it has become one of the world's largest production bases for new energy vehicles.
He suddenly remembered that when he first took over Chrysanthemum Auto's business, someone inside gave him an analysis report that concluded that "Chrysanthemum should give up cooperating with car companies and directly manufacture cars itself."
Ren Zhengfei wrote four words on that report: "Build a solid foundation."
He didn't quite understand at the time, but now, looking at this car production line, which is more complex than any mobile phone assembly line he has ever seen, watching the robotic arms precisely weld, stamp, and rivet on the steel plates, and watching the AGVs silently glide on the ground, delivering parts to the next process, he suddenly understood: what Mr. Ren meant by "foundation" was not to make Huawei give up higher profits, but to make Huawei the foundation of the entire intelligent vehicle industry in China.
Seres is just the first one; there will be a second, a third, and more and more.
When all car manufacturers start operating on the same platform, those who are still observing today will find that they have no other choice.
Meanwhile, at the Xiaomi Technology Park in Beijing, Lei Jun was making final preparations for the official announcement of the SU7.
Just a few months ago, he was still struggling with the supply of Xuanwu batteries and the loss of production line workers. Now, he is standing in the spotlight, with a rendering of a silver-gray streamlined sports car slowly rotating behind him.
At the press conference, Lei Jun did not wear his signature dark blue shirt, but instead wore a pilot jacket with the silver lettering "SU7" printed on the back.
He stood in the center of the stage, the lights shining on his hair, making the sharp edges worn down by anxiety and overwork particularly clear.
He didn't talk about sentiments or tell stories. Instead, he unusually sped up his pace and, after taking the stage, he barely paused, precisely delivering data bullets into the quiet press conference venue where you could hear someone breathing.
"It has the lowest drag coefficient (Cd) among mass-produced cars in the world, accelerates from 0 to 100 km/h in under two seconds, and is seamlessly integrated with the Xiaomi ecosystem. Before you get in the car, the air conditioning, lights, and curtains at home are already set to your preferred mode, and the 'leaving home' mode automatically activates after you get out of the car."
"Exclusively supplied by Xuanwu Battery flagship model, the CLTC range exceeds 800 kilometers, and the actual range achievement rate at minus 10 degrees Celsius exceeds 90%. The intelligent driving chip is the latest generation AI inference chip customized by Galaxy Semiconductor, with computing power several times that of mainstream solutions on the market. The vehicle is equipped with eleven LiDARs, plus the HarmonyOS vehicle system, enabling intelligent driving in all scenarios on urban roads and highways."
There was no applause from the audience, not because the data wasn't impactful, but because the audience was still processing the impact of each new statistic. By the time everyone had finally come to their senses, the number that shocked them the most had appeared.
"The first smart sports sedan for young people, the SU7 standard version is priced at less than 400,000 yuan."
After he announced the price, the audience was silent for several seconds. Then, some people started screaming, and others immediately opened their phones to refresh the reservation page. The live stream was flooded with comments like a torrential downpour.
Meanwhile, on the shores of the South China Sea, BYD's overseas expansion is also proceeding at a rapid pace.
As Boatman stood in the global strategic command center of the Shenzhen headquarters, the giant screen in front of him displayed real-time production line data from factories around the world.
At the already completed factory in Hungary, robotic arms are giving the Dolphin and Yuan PLUS the final paint job; the Brazilian factory under negotiation is located only a few dozen kilometers from a deep-water port, which will significantly reduce logistics costs.
Further away, looking up, you can see the U9 making its final lap time sprint on the Nürburgring.
The engineering team spent a whole week in Germany, sleeping only a few hours each day, repeatedly adjusting the suspension stiffness, torque distribution ratio, and angle of attack of the aerodynamic kit.
The production car ultimately crossed the finish line in nearly seven minutes, with rubber particles and insect remains still stuck to its body.
The driver climbed out of the cockpit, took off his helmet, and said something that thrilled the engineers who were recording data: "Tell your boss that this car is faster than most European supercars."
When the news reached China, the boatman only said four words: "Keep running, get the one behind out too."
From Hangzhou to Chongqing and Chengdu, from Beijing to Shenzhen, from Xixi Wetland to the Nürburgring racetrack.
In this early spring of 2020, no one stopped.
Jack Ma is rallying his strongest allies for his final battle, Yu Dazui is camped out by the production line watching the engineers, Lei Jun is shouting out a price of less than 400,000 under the spotlight, and Boatman is watching the rolling global delivery data in the command center.
They all knew that this was no longer a war that could be won by burning money. Galaxy Technology had already rewritten the rules of the game for the entire industry with its technical standards, supply chain standards, and employee treatment standards.
Some people are chasing, some are betting, some are binding, and some are gambling.
But no one on this land is willing to stop, because they can't stop. (End of Chapter)