After the Divorce, I Could Hear the Voice of the Future
Chapter 625 - 617: The Price of Growth

Chapter 625: Chapter 617: The Price of Growth

"This Mr. Lu isn’t an easy person to talk to, but you might be an exception."

Yu Dazui showed a hint of contemplation, sensing Mr. Ren meant something deeper, and offered to help arrange a meeting with Lu Liang.

About two years ago, when Tianxing Technology was just starting out, Lu Liang was wielding his hoe everywhere and visited Shenzhen, where they shared a drink.

And during last year’s 5G voting gate incident, they tacitly made Lenovo a key attack target, and often communicated privately, making them rather good friends.

"We’ll talk about it later, it’s not yet the time to seek Lu Liang’s help."

Mr. Ren shook his head; it’s best to solve some matters by oneself if possible, asking for help will create debts of gratitude.

Yu Dazui seemed thoughtful but didn’t say much more.

If they can’t solve a problem that requires Lu Liang’s help, it likely comes at a great cost.

So it’s best to avoid it if possible.

Meanwhile, Lu Liang received a call from Deep Blue President Wei, and the two had a pleasant conversation, confirming their meeting time for tomorrow.

"The effect seems good; Deep Blue doesn’t plan to stir things up." With a smile on his lips, Lu Liang decided to give Deep Blue a little discount.

The radar laser add-on package developed by Tianxing was originally priced at 15,000 per set; since Deep Blue is the first to pledge allegiance, they should get a 30% discount.

"But even at a 30% discount, we still have a profit of about 9,000 per car sold."

Lu Liang squinted his eyes with joy, already tasting the benefits, as the cost for the radar laser add-on package was only 1,500, sold tenfold.

Just didn’t expect that the automotive sector is still in a monthly loss of billions, while the software has begun to turn profitable.

"Platforms are the world’s most profitable business, and software platforms are a goldmine." Hu Weiwei murmured.

Tianxing Car Machine has started making profits, and once this news spreads, the company’s valuation is likely to appreciate further.

The stock she’s holding as dry shares will also become more valuable.

"A 10% market share is unstable; a higher share is needed to secure market position, Li Xiang and NIO dominate the high-end, Wuling the low-end, but the most popular mid-range market of 100,000 to 150,000 is missing."

Lu Liang pondered, suddenly focusing on Weima, whose EX5 sold over ten thousand monthly, ranked fourth in May’s new energy sales.

If he could acquire Weima Automobile, Tianxing Car Machine’s market share could increase by another 3%.

"Shen Hui is a tough nut to crack." Wang Xiaofeng handed over Shen Hui’s personal profile from Weima.

Ten years ago, at thirty, Shen Hui was already the general manager of BorgWarner’s Chinese District, a leading global automotive parts company.

Shen Hui is also known for his adeptness in capital operations, with typical cases like the acquisition of Volvo by Geely, hailed by the industry as "a snake swallowing an elephant."

It can be said that Shen Hui is one of the few professional automotive personnel among the new automotive forces, which was also a strong endorsement for Weima Automobile’s financing.

In the angel round, they received a stunning $1 billion financing, with ABC rounds getting favorable attention from Tencent, Alibaba, and Baidu; in less than three years, the financing scale exceeded 23 billion, making "Weiliao" seem like a little brother in comparison.

"Can we use capital involvement to have Weima install our car system?" Lu Liang asked.

Wang Xiaofeng suddenly said, "Mr. Lu, maybe we don’t need to bother, just patiently wait for a while, Shen Hui will come seeking help."

Lu Liang raised an eyebrow: "Why do you say that?"

"Weima’s spontaneous combustion rate is high, almost reaching one in ten thousand; as of now selling 105,300 units, 23 spontaneous combustions occurred, though Weima has suppressed related news."

Wang Xiaofeng took out the information learned from friends: "Mr. Lu, look, this is Weima’s store and production plan for this year."

"300 stores planned? 250,000 unit sales target?" Lu Liang stared wide-eyed, couldn’t help rubbing his eyes, thinking he had seen wrong.

Even Tianxing Automobile only has 225 stores, with a tentative production plan of 140,000 units; where does Weima get the confidence to play like this?

"Maybe it’s because of us." Hu Weiwei had an odd look, clearly having heard some whispers.

Last year, Weima Automobile only had 78 stores, topping Li Xiang, NIO, and others in number but often being overlooked due to a lack of presence.

This year, their plan to open 225 stores started, and soon after, the plan for 300 stores at Weima Automobile was revealed.

Apparently, they don’t want Tianxing Automobile to be the sole star, but when it comes to creating buzz, Shen Hui compared to Lu Liang is like a novice; the money was spent but still barely noticeable.

Lu Liang pondered for a moment, suddenly having a light bulb moment: "Is Weima’s cash flow very tight?"

They initially launched the 225 store project, planning to invest 1.8 billion dollars, but in the end, they overspent by 220 million dollars.

Lu Liang believed that as long as the money was well-spent, spending more or less wasn’t a big issue.

If it were another company’s CEO, Zhuo Yifan would likely have been sacked with a 100% probability.

Weima Automobile’s 300 store plan requires at least 2.5 billion dollars, and they also built factories like Tianxing, wanting to achieve the 250,000 units production plan for the year, which would require production lines costing at least 1.5 billion dollars.

Just these two expenditures amount to 4 billion dollars, equivalent to 27.2 billion yuan.

Based on publicly disclosed financing news, Weima Automobile has only raised slightly over 23 billion yuan.

"How much money is left in Weima’s account? Where is their money coming from?" Lu Liang asked back-to-back.

"At the end of April, Weima conducted a 500-million-dollar financing, with cash flow disclosed as approximately 2.8 billion yuan."

Wang Xiaofeng picked up another piece of information: "I asked a third-party investigation; Weima’s debts amount to 28.9 billion yuan, their monthly guaranteed loss is 2.2 billion yuan."

Lu Liang said: "Assuming the financial disclosure by Weima at end-April is true, after financing, they only have a total of 6.2 billion yuan. If losing 22 billion yuan monthly, this won’t last even three months, correct?"

Wang Xiaofeng nodded: "If Weima finances again next month, it shows their cash flow is very tight; if not, it means they are falsifying financials, and the internal situation may be worse than we imagine."

Weima’s current situation is not optimistic, trying to imitate Tianxing but without backing from a wealthy supporter like Lu Liang.

Unless their upcoming sales continue upward momentum until securing funds survive the crisis.

Otherwise, Weima is very likely to be the first new force car company eliminated.

Building factories is nice, but not everyone can handle it; otherwise, "Weiliao" wouldn’t all choose contract manufacturing tacitly.

Tianxing Automobile, if not for Lu Liang’s constant infusion, would have gone bankrupt by now.

Now they just need to await the right time for aid when needed.

If there isn’t such an opportunity, they can create it.

A 1 in 10,000 spontaneous combustion rate is indeed not low, far above the industry average by four times.

"Being a fellow new energy car company, we must prioritize the bigger picture and cannot destroy market development for personal gains."

Lu Liang sighed and continued: "But consumers should at least have the right to know; hiding it isn’t a solution, can’t close our eyes and pretend not to see, right?"

"You’re right, Mr. Lu."

Qin Siyuan understood and quickly agreed with a smile.

He understood that the issue with Weima is solely Weima’s issue and not an industry one.

"As a member of the industry, Mr. Lu, as the creator of the nation’s largest new energy industrial park, ought to protect consumers’ interests." Wang Xiaofeng smiled, appearing upright.

If you covet something and seize it, it’s called forced robbery; but if it’s for the industry’s growth, it’s benevolent.

Like Ming Chengzu Zhu Di aiming to strike Xiongnu northward and expand land, but for lack of justification, he thoroughly scrutinized the historical records until finding the circle siege of Baideng a thousand years ago, giving a righteous reason for his northern expedition.

In ancient times, launching a justified military campaign was an important strategy to boost troop morale and public perception.

In modern times it’s similar, with Weima’s high self-combustion rate and tight funds, they might explode anytime; intervening would be unquestionably righteous.

As for the price Weima pays, the public doesn’t necessarily need to know.

Just like the Chinese people have loved peace since ancient times, not knowing why the land has expanded more and more.

"Let’s wait a bit longer until mid-next month; I should have some time then."

Lu Liang smiled, exchanged a few words, and waved off Wang, Hu, and Qin.

He stood in the office on the 33rd floor, looking down at the neatly arranged factory workshops and orderly transport vehicles.

Lu Liang drank his tea, sighed: "Why do I feel increasingly hypocritical now? Maybe it’s the price of growth."