RBCT Chapter 1453 Weakness (4k)
Chapter 1453 Weakness (4k)
Chapter 1453 Weakness (4k)
Yike released a not-so-good second quarter financial report.
In addition to the sales decline caused by limited production capacity, some of the revenue in this financial report cannot be replicated in the short term, such as the technical service fees collected by Yike from Yike Optoelectronics, Yiguo, Yixin, Douyin and other companies.
Regarding this part, Sina's president Wang Yan read it carefully several times. Hmm... they all paid? Why didn't Yike ask Sina to pay?
Wang Yan thought about it and decided to go straight to Shencheng on the pretext of official business. However, when he arrived here, Sina's matter was no problem, but Mr. Fang, whom he wanted to meet, had already arrived in Luzhou.
He continued to go to Luzhou, and this time he called his boss directly to confirm that he would be in Luzhou before leaving. However, just as Wang Yan arrived in Luzhou, he received a call from his boss's secretary Liu Zonghong, saying that Mr. Fang had to go to Beijing for some urgent matters.
The Sina president had no choice but to fly back to Beijing and arrange a meeting at 11 o'clock in the evening.
Wang Yan didn't see Liu Zonghong until 10:50, and learned that his boss was on the phone. Half an hour later, he saw Mr. Fang walking quickly into the suite.
He hadn't seen Mr. Fang recently, so when he saw him he felt that the boss didn't look as haggard as he had imagined. Instead, he had the calmness that naturally appeared in difficult situations.
"Mr. Fang, I went around in circles before I finally caught up with you!" Wang Yan stood up to greet his boss.
"Brother Wang, if you have anything to say, why don't you just call me?" Fang Zhuo shook his old friend's hand and said with a smile, "Or, I'll have to come to Beijing sooner or later, so you don't have to travel so much."
"You come to the capital, but you always come and go in a hurry." Wang Yan said helplessly, "I know you are busy, and I am embarrassed to disturb you."
Fang Zhuo sat down, nodded, and admitted: "I have been quite busy recently. Sometimes something comes up out of the blue. I always feel that it would be better if I come forward, so I am willing to run around more at this time."
"Boss Fang, times like this are the time when we need our sister companies to shoulder the pressure together." Wang Yan sensed his boss's schedule and got straight to the point. "I noticed that Yike, Yixin, and Yiguo all introduced a technical service fee. Why didn't they tell Sina about it?"
Fang Zhuo was a little surprised. He turned his head to look at Liu Zonghong, raised his teacup, and laughed, "Brother Wang, you chased me all the way just to pay me?"
Wang Yan nodded: "It has to be handed over."
Fang Zhuo groaned and said, "It's not easy for Sina either."
Wang Yan blinked: "We are okay."
Except that Sina is not directly or indirectly created by Yike like Yiguo, Yike Optoelectronics and Yixin, we are also doing well. On the one hand, it is a well-known domestic game company, and on the other hand, it is a new player in the field of information distribution in the mobile era.
Although YiKe is facing a very difficult situation now, the YiKe system is still very powerful in China.
Wang Yan feels that Sina has a responsibility to contribute under the current circumstances, but he also does not think that the YiKe system will decline from now on, because, in his opinion, the core of the YiKe system is not YiKe Company, but Mr. Fang.
Yike is indeed the most successful company in the Yike system, but the other companies do not survive by sucking Yike's blood. Instead, each has its own advantageous business.
Wang Yan knew about Yike’s limited production capacity, but he did not think it would be a long-term problem. Once it was solved by Yike and Bingxin, it would mean that the external restrictions for a considerable period of time would be expanded.
All of these things are, of course, meant to provide timely assistance.
What's more, the friendship between Sina and Mr. Fang is also unusual. It is an acquisition case that has been recorded in textbooks.
Wang Yan's eyes were bright and he did not avoid his boss's gaze. He had already expressed his position through the pursuit of this journey and his positive attitude.
"Actually, Yike is not that eager for revenue, but everyone thinks that the situation needs to be stabilized, so this is the solution." Fang Zhuo thought about it for a while and said tactfully, "Sina just needs to do its own thing."
"Boss Fang, ever since Bingxin and Yi Ke were restricted one after another, people in Sina have been very angry!" Wang Yan said seriously, "This is not just my opinion. I held a meeting in the company before I came here. Everyone has the same attitude and is willing to contribute to and get through this moment with Yi Ke!"
As he said this he stood up excitedly.
Fang Zhuo waved his hand, motioning his old friend to sit down, and said with a smile: "Okay, since you have the spare capacity, then... buy back the remaining game shares from Yi Ke."
He took a sip of tea and continued, "It just so happens that Yike is doing the subtraction, and Sina is doing the addition. You can discuss the price."
Yike and Sina have common game projects. Games like World of Warcraft and League of Legends are operated by the latter. In the early days, in order to showcase the progress of smart phones, Yike also had some good mobile games, which were later handed over to Sina for operation.
Yike has not needed games in recent years, but this is an important territory for Sina.
Even if Sina makes a one-time acquisition at a slightly higher price now, high-quality games will not be a loss-making business.
Wang Yan naturally understood this. He wanted to bring up the issue of technical service fees again, but then he thought, his attitude had already been expressed, and Mr. Fang would not be the kind of person who would be polite when he was in urgent need.
Therefore, he only thought about it for a moment before nodding and saying, "Okay, Mr. Fang!"
After Wang Yan completed the matter of the membership fee, he inevitably mentioned the current situation of Yi Ke and Bing Xin. He also asked about the situation where Yi Ke was targeted by short sellers again after several years.
In the middle of the month, data released by Nasdaq showed that Yike had climbed to the second position, with only a gap of US$3 million from Alibaba's short positions.
It is almost certain that Yike will achieve the honor of "No. 1 in the world" again by the end of this month.
"It can't be helped. The main focus of the situation is not there now. If they want to short sell, then they can do so." Fang Zhuo shook his head. "There should be quite a few people who have made money from Yi Ke now."
At its peak, YiKe's market value exceeded 4000 billion US dollars, but now it has fallen to 2500 billion US dollars. Although there was no large-scale short selling in the beginning because the situation was not clear, some institutions must have made profits from this decline.
"I think this group of short sellers is coming with great momentum, and they intend to continue to distort the valuation of Yike." Wang Yan said seriously, "Like that Russell, he has been speaking out frequently, shorting Yike."
Fang Zhuo nodded slightly: "They are probably still waiting."
Yi Ke's stock price has been falling for more than half a year. The short sellers probably want to wait for a situation where Yi Ke or the secondary market can't bear the pressure and plummets, which will inevitably lead to more selling. Russell and his ilk are trying to do this by speaking out in various occasions.
Of course, Fang Zhuo did not carefully study what the short sellers were doing, nor did he know at what price they wanted to stop.
He only knows that he is waiting for a breakthrough in photoresist or 10nm. The former is still unclear, but the dawn of the latter within the year is gradually becoming clear.
Even if SMIC's 10nm is produced by Yike, it will be limited. At least half a year will be left, which can buy time for breakthroughs in photoresist.
Fang Zhuo's visit to Beijing this time was to communicate in advance about the merger of Bingxin and SMIC. The two companies will still retain their respective brand operations, but the integration of funds, talents and resources will undoubtedly bring out stronger power in the future situation.
He chatted with Wang Yan about the current situation for a while, and felt a little extra emotional after seeing this old friend again after a while.
"YiKe will have no major problems, and Sina is also developing very well. Brother Wang, we have lived up to the consensus we reached back then." Fang Zhuo mentioned those years.
Wang Yan also sighed, and after a long while he said: "I am now the best president of Sina in its history."
There is no doubt that Sina, which once had chaotic management, is still standing in the era of mobile Internet under the leadership of Wang Yan. He is the best president.
This sentence was one of the reasons Fang Zhuo united the front when he controlled Sina. He wanted to be evaluated as "an ordinary CEO who was unsuccessful" or "a business tycoon who solved the profit dilemma and created the company's glory."
"Brother Wang, of course you are." Fang Zhuo affirmed without hesitation.
Wang Yan raised his teacup, drank tea instead of wine, and smiled at Mr. Fang.
At midnight, Fang Zhuo said goodbye to his old friend who was involved in a malicious acquisition, and then took out his cell phone to call SMIC to confirm that a risky trial production might be attempted in August or September.
He was not sleepy, so he asked his secretary to make him another cup of coffee.
Liu Zonghong saw that his boss was not looking at his phone or flipping through documents. While watching him drink coffee, he told him some new news about product development: "Mr. Fang, there is some progress on the flexible screen at BOE. We will be able to see the new Selfy when we go back."
Selfy is also a well-known product brand created by Yike, but it was discontinued at the beginning of the year to make way for Mars, which was considered a pity within the company.
However, the R&D department also feels that the product positioning of Selfy and Mars is becoming increasingly repetitive, and the imaging performance of the two is almost the same as the advancement of hardware. Therefore, this time, taking the opportunity of discontinuing production, they have also reconsidered a more radical design. BOE has been experimenting with a flexible screen this year and is expected to officially achieve mass production next year.
Therefore, the new Selfy wants to use flexible screens to change the design style, highlighting the "fashion" element and positioning the folding product in a way that is completely different from Mars.
Anyway, no matter when the production capacity is restored, Yike will definitely focus on Mars in the early stage, and it doesn’t matter if the new Selfy is iterated less.
Fang Zhuo said, "That's good news. Mars is pursuing the best flagship positioning and is top-notch in all aspects. Selfy needs to change."
Liu Zonghong said: "The good news is gradually coming."
Fang Zhuo smiled and said, "We don't know what the new Selfy will be like yet. Is this considered good news?"
"The progress of domestically produced screens, isn't this good news?" Liu Zonghong said seriously, "Mars has almost achieved a fully domestically produced supply chain. As long as chip production capacity is restored, the dilemma will be solved."
Fang Zhuo finished the remaining coffee in the cup: "Okay, then wait, just wait for this blade."
This trip to Beijing to promote the merger of Bingxin and Zhongxin did not encounter any resistance. Instead, there was a vague attitude of "it should have been done long ago."
Since the founders, management, administrative leaders and employees have no objection, then we should just take the lead.
Fang Zhuo was thinking about the merger and considering SMIC's technological breakthrough. This time he had to learn from Bingxin's experience and lessons and accumulate as many chips as possible before the industry saw any clues.
I slept very late that night but woke up very early the next day.
Fang Zhuo talked to Kong Yu about the news about SMIC so that he could make some changes and preparations.
"If SMIC can make a breakthrough..." Kong Yu paused for a long time on the other end of the phone before continuing, "Then keep it hidden until the photoresist breakthrough, and then present it to our short-selling friends."
"That's what I mean." Fang Zhuo said, "It depends on whether the conditions in all aspects allow us to show our utmost sincerity."
Kong Yu was deeply excited. One was to ensure existing competitiveness, and the other was to ensure advanced competitiveness.
Taking advantage of the fact that YiKe’s short positions have become the largest in the world at the end of the month, and adding another “wolf is coming again”, it will depend on how many short-selling friends are qualified to stand in front of Mr. Fang.
Kong Yu has deep expectations for this.
- If you have extraordinary talent, can accurately capture fleeting opportunities in the market, create returns beyond expectations for customers, have the ability to understand the rise and fall and pros and cons of companies, and have the firm determination and sufficient resources to participate in short selling, then you may be qualified to die in front of Mr. Fang.
……
On the last day of July, along with the Nasdaq data, Yike was undoubtedly the world's number one with a short position of US$142 billion.
Such moments will undoubtedly make Yi Ke occupy the media pages again.
In addition, there are three pieces of news from China that make the market seem a little confusing. First, Bingxin's 16nm process has been confirmed to be discontinued, which means that the photoresist has indeed been consumed. Second, Yike phones in various channels are almost out of stock.
The two pieces of news confirmed each other, making the bears excited.
However, the third piece of news is just the opposite. It is said that mainland China has achieved a breakthrough in domestically produced photoresist.
However, Russell of RC Hedge Fund did not believe this "rumor" at all. Whether it was from the judgment of industry experts, the performance of market share, or the operation of Bingxin International, he did not think that China could have such a breakthrough.
Moreover, looking back at the last news from the China Wafer Manufacturing Service Alliance, the intention of this "rumored" statement becomes even clearer.
"Fake News!" Russell gave an extremely confident judgment to the media, and further predicted Yi Ke's situation, "Yi Ke has no mobile phones in stock! Even if it does, it's only a small amount, which will have no effect at all!"
"Yi Ke's revenue in the first quarter was supported by its previous mobile phones, and in the second quarter it was supported by sucking blood from companies within the system. Even so, Yi Ke's revenue still fell sharply!"
"Ice core has stopped production, what will happen to Yike's third quarter?"
“Q3 is the beginning of Yike’s complete collapse!”
"Yike is not worth 2500 billion, not even 2000 billion!"
"We will witness this day together, in the next few months!"
Russell not only stirred up public opinion, but also provided all the information he could get related to Yike, including the performance of various channels in the European and Chinese markets.
The wolf is coming, and short-selling institutions are scrambling to escape.
The wolf is here again, but this time the short-selling institutions are only withdrawing a small part of the money.
Without market performance and clear news, Yike’s stock price’s attempt to rebound is extremely weak. Rumors are more like useless chicken blood, which quickly returns to silence after a brief stimulation.
Yike phones are sold out, and whether it’s advertising or technical costs, the real weakness that is difficult to conceal is already at hand.
Many investors holding Yike shares are in a state of hesitation. Some are trapped at high prices, and some want to take the opportunity to buy at the bottom, but given the current situation... should they sell or not?
Just cut it off, it hurts.
If you don’t cut it, can you still wait for Yike’s recovery?
Such a decision seems to be just one step away from a final conclusion on Yi Ke's situation.
Many people weighed the pros and cons again and again, and ultimately wanted to wait for Mr. Fang’s direct statement, or the release of Yike’s third-quarter financial report.