On the second day of April, Yike's stock price has dropped significantly, and the company's overall market value has dropped from a stage high of 289.5 billion U.S. dollars to 266 billion U.S. dollars. Even the latest excellent financial report cannot save this trend.
Yike's net revenue in fiscal year 2015 reached US$161.9 billion, which was still a 21% increase compared to the violent fiscal year 2014. This was particularly difficult amid the turbulent situation in the second half of last year.
However, the more beautiful Yike's 2015 financial report is, the uglier its financial report this year will inevitably be. After all, the lost US market clearly contributed 34.1% of revenue in the financial report.
According to analysis, this is related to Yike's efforts to supply the US market and channel dealers' clearance sales in the fourth quarter.
But such an important market is not even the most critical issue for Yike today.
More important and critical than the 34.1% figure is 71.2%.
This is the proportion of revenue contributed by mobile phone products in Yike’s financial report.
It is still similar to last year's financial report. It is not that Yike's tablet, laptop, mobile ecosystem and other business income cannot be improved, but that the mobile phone business is too strong. Compared with 69.9% in 2014, the proportion in 2015 has actually increased.
.
Therefore, the priority of Yike Mobile's production capacity issue has been higher than the divestment of the US market.
According to discussions on Wall Street, Yike's current stock price reflects the negative impact of losing the U.S. market, but the negative impact of production capacity issues has not yet been fully digested, which means there is still room for decline.
It is said that the photoresist news from the China Wafer Manufacturing Alliance caused the stock price of Yike to fluctuate. However, such good news cannot be verified by the actual production capacity in the market, which will inevitably cause the stock price to suffer further losses.
Hedge funds always respond more quickly and have a keener sense of smell. After verifying and retrieving various information, they also generate greater greed. Does Yike really seem to be out of ideas?
The answer to this question is increasingly confirmed by market performance.
In the first week of April, Mars 9 Pro was frequently out of stock in the European market. At the same time, Yike seemed to be frequently trying to expand its enterprise business.
By the middle of the month, the 2016 Q1 financial report put aside everyone's curiosity about the real situation of Yike. Compared with the same period last year, key data such as net revenue, operating profit, and net profit all showed sharp declines.
Among them, Q1 net revenue in 2016 was US$29.344 billion, down 44.03% from US$52.432 billion in Q1 last year; operating profit was US$9.72 billion, down 47.23% year-on-year; net profit was US$6.27 billion, down 54% year-on-year.
Yike's market is sluggish, production capacity is limited, profits are declining, product costs are increasing, and, let's add a "significant" description.
At the same time, both Apple and Samsung’s Q1 financial reports hit new highs, and many executives spoke excitedly.
"The U.S. market is the most advanced market in the world. We are very happy to see that American consumers are using more and more Samsung mobile phones. This is an extremely correct choice!"
"Samsung is the best mobile phone in the world and the king of Android!"
"Samsung is the smartphone sales champion that consumers around the world support with practical actions!"
Samsung is particularly excited to be equipped with Qualcomm Snapdragon this year. On the one hand, it uses Taiji’s technology, which has indeed eliminated the problems that have plagued it in the past two years. On the other hand, it has largely inherited the vacancy in the Android ecological niche in the US market. Naturally, it has
Sales surged.
It's just that Apple is more moisturizing than Samsung.
With Mar 8.8 and Mars 9, Yike has confirmed its first position in the Yusan family for two consecutive years. However, this virtuous cycle was broken by geopolitics. Apple, which was originally in the middle, has more space and is divided between Yike and Yike.
More shares under.
Wall Street is extremely bearish, rivals are carving up the market, hedge funds are pouring in again, the industrial chain has been unable to receive support, and stock prices have suffered further losses...
With the release of the Q1 financial report, Yike's production capacity dilemma has become a bit more tragic.
After the Spring Festival, Sohu Finance tried to use short videos to talk to different guests on Douyin, and after seeing Yike’s financial report, it specially asked its head Zhang Chaoyang to comment on the current situation.
"Yike is still very profitable now. Although the stock price has still fallen, this situation is more or less expected by everyone, and the decline is not bad."
"It earned almost 42 billion Chinese dollars in the first quarter, which is a net profit, and its revenue was nearly 200 billion Chinese dollars. It is still very large."
"If it were Sohu, if we could achieve this result, I could run around the capital three times."
"Of course, the standards are different, and the measurement standards are different. Whether it is our peers, Wall Street, Silicon Valley or mass consumers, they all look at Yike based on the standards of a global large company."
"It should be said that we all look at Yike based on the standards of the world's top 50 companies."
Zhang Chaoyang spread his hands: "Why should we use such a standard?"
He faced the camera, thinking about Yike's current situation, and couldn't help but sigh: "Because, Yike has indeed reached that position, and he has developed in everyone's eyes year by year."
Yike's development history is very transparent. The first angel investment was obtained from a TV show. In the past few years, Yike's products have gradually climbed to the number one position in the world.
Therefore, Zhang Chaoyang's sigh contained an unconcealable feeling.
It would be fine if it was defeated by commercial means. What kind of thing would it be if it was defeated by geopolitical factors?
"Mr. Zhang, how long do you think it will take for Yike's production capacity problem to be solved? How should Yike handle the challenges it faces next?" asked the host of Sohu Finance.
Zhang Chaoyang shook his head twice, pondered again and again, and then said: "Yike's matter is difficult and complicated. It cannot be explained clearly in a few words, and almost no one can explain it clearly, but I always have expectations for him."
He frowned again, shook his head for the last time, and sighed worriedly: "This is the time when our survival is in danger."
As a veteran in business, Zhang Chaoyang's worries in front of the camera felt very real to the audience, and many domestic media and even bloggers were giving advice to the current Yike.
Regardless of whether the idea is useful or not, everyone has gradually reached a consensus that now is really the time when Yike's survival is in danger.
On April 15, Nasdaq’s fixed information disclosure time, Yike was quickly catching up with the companies that had been shorted before, and its position had reached 10.5 billion US dollars, ranking fourth.
Alibaba is US$11.9 billion, Tesla is US$11 billion, Apple is US$10.6 billion, and Yike is US$10.5 billion.
It was on this day that Fang Zhuo ended his inspection tour of the mainland's semiconductor industry chain, returned to Shanghai, and attended the recent intensive meetings of the Yike General Office.
"This is a time when the survival of the sincerity is at stake. I saw what Mr. Zhang of Sohu said. What do you think?"
Fang Zhuo had a cup of bitter coffee before the meeting and started by quoting the sliced video he saw on Douyin.
"It's indeed not easy." Qi He answered objectively.
Fang Zhuo nodded and said with a smile: "Yes, how can anything in the world be so easy for us? This is a time when life is at stake. However, the core of ice is to work tirelessly within, and those who are ambitious and talented forget about the outside world.
I want to repay Yike's glory in times of crisis."
He paused and then said: "This is a time when our sincerity's survival is in danger, and it is also a time to turn the tide."
"Mr. Fang, if you record a video like this, it will definitely get a lot of likes and retweets. It will also push up our stock price and boost the morale of everyone." Yu Hong said sincerely.
"I speak from my feelings. There are difficulties and there are hopes. I saw everyone working hard during this trip and I felt very comforted." Fang Zhuo said about his feelings about the inspection trip, "Everyone is also very concerned about it.
Yike is willing to provide the greatest help within its capabilities."
Everyone nodded. This time, no matter from what aspect, everyone’s expectations and support for Yike could be felt.
"The problem now is that we may face the possibility of the situation deteriorating further." Yu Hong considered, "The production capacity issue needs to wait. We still have notebooks to sell this year. Intel and AMD both have licenses for us, but we don't know.
At some point, this line may be cut off, and the company is not fully prepared. Even if the chip is designed, it still needs the support of advanced manufacturing processes."
Yike's Y-Book notebooks have actually sold well in the past two years, but they have been overshadowed by the performance of mobile phone products. Because of its performance, Yike's goal for this line is to become the top three in the domestic market.
With the top five in the world.
Last year's global notebook shipments were approximately 164.44 million, down 6.3% from the previous year. Judging from this development trend, Yike's efforts in this field do not seem to be a good choice.
However, Yike has sold 21.09 million Y-Book units last year, approaching the fifth position in the world.
This effect is somewhat beyond internal expectations, and is generally believed to be driven by the power of the smartphone brand, which makes everyone even more dissatisfied with the positioning of a brand assembler.
However, not wanting to be a brand assembler is not just a matter of hardware, but also the expansion of the system ecosystem, the vast world of drivers, various compatibility supports, etc. are all very difficult.
From this point of view, it is good to use Ice Core's advanced technology to earn some hard-earned money from AMD. High value-added products do have high tangible and intangible thresholds.
Fang Zhuo responded calmly: "Let's do it step by step. When you are pinched, face it. Once it happens, it will be familiar again, and everyone will get used to it."
Qi He asked at this time: "Mr. Fang, what kind of help can SMIC provide..."
"SMIC is not bad." Fang Zhuo simply answered.
Only a few people knew that Dr. Liang led his team to enter SMIC, and he did not intend to talk about such news on this occasion. SMIC is the most advanced foundry manufacturer in China besides ice cores. It currently uses 20nm to manufacture "Yike Optoelectronics"
"Morning Light" series of chips is also the latter's new choice after verifying GlobalFoundries' technology.
"Our notebooks can still be sold, and our smart home is growing at a very good rate. There is actually a lot of profit mining in the YMS ecosystem, and there is also room for the development of technical service fees." Qi He said one by one that he can make up for the revenue this year.
Regarding the business acquisition, "Yike Cloud may need to digest this year's corporate results, but the performance of the European market will not be affected too much, and it may be able to maintain a 30% growth."
Yike's production capacity is affected by its three series of products: Mars, Selfy, and Galaxy. Among them, mobile phones are its core business, tablets are also Yike's previous second growth curve, and notebooks are the third curve.
Liu Qiangdong was also calculating next to him: "Notebooks have grown by 30%, and revenue has been supplemented by US$3.9 billion. Smart homes have grown by almost US$1 billion. The YMS ecosystem is slightly more ***. This is US$1.5 billion. Yikeyun's revenue this year is
The situation is good, more than 2 billion U.S. dollars, and there are also technical service fees. We collect some money from Tesco, Mi Tuan, Douyin, and Yixin, adding up to 3 billion U.S. dollars from them... and the transfer of Yike Optoelectronics.
The technical cost, even after discounting, is US$1 billion, which is quite a lot.”
Qi He's mental arithmetic speed was very fast and he gave an answer: "12.4 billion US dollars!"
Fang Zhuo couldn't help but laugh and said: "You guys know how to pick off the skin. This year's revenue target is 80 billion US dollars, which is success. Let's live through the hard times."
This is a huge decrease based on last year's standards, but Yike has grown rapidly in the past two years. If we use the revenue two years ago as a reference, 80 billion is not bad.
The target previously discussed within Yike was actually 90 billion, but Fang Zhuo felt that there was no need to be so nervous at this special stage.
But now that the conversation was over, he continued to listen to the next steps in different business plans.
After such a morning meeting, after everyone else had left, Yu Hong asked about a more promising direction: "Is Dr. Liang's research and development at SMIC going well? Is there no problem with the integration of the two sides?"
"It went well, well, it went very well. There is nothing dissatisfied with the team selected by SMIC." Fang Zhuo paused for a moment and smiled, "I heard that Dr. Liang's first words when he arrived at SMIC were, 'The record of large companies can be checked.
', and then everyone was convinced."
"You have a good attitude and can make jokes at any time." Yu Hong was busy from morning to night during this period, and she looked a little haggard, but she didn't feel it herself and was still thinking about the company. "If Dr. Liang can
10nm has been successfully launched. According to this experience, if SMIC is also restricted, the inventory of this batch of 10nm chips will only be 60 million at most."
SMIC needs to ramp up its yield rate and production capacity. If everything goes well, if it encounters the same photoresist dilemma, SMIC will only have half a year's production capacity.
Yu Hong frowned and said: "Being beaten passively like this is really a struggle. The key is to restore the supply of photoresist, which can at least maintain the supply of basic production and allow the blood to flow."
Fang Zhuo nodded slightly and did not mention the possibility of a breakthrough in photoresist within the year. He mentioned something special: "The capital has asked Bingxin to submit another list of special enterprise support. Now it is time to concentrate more resources. Once successful,
If the core achieves a 10nm breakthrough, if it also encounters restrictions, it will inevitably lead to a larger-scale confrontation."
Yu Hong walked a few steps, asked the robot in the office to make a cup of coffee, then sat on the sofa, frowning and said: "Washington has imposed severe restrictions on Yike since it decided to take action, changed the law, and kicked it out of the market.
The companies that instigated our allies are desperate to kill us."
"I now feel that this is still very iconic. What I mean is that if Yi Ke survives, it will be an example of resisting Washington."
"This kind of helps break down everyone's fear to a certain extent."
Fang Zhuo said with a smile: "Mr. Yu has elevated the meaning. We just do our best in the moment. Other influences and fluctuations are okay or not, they are all natural."
He continued: "On the way back, I was also thinking about the market value of Yike. Later, I still felt that the market value is not the market value. We have developed to the point where we now have various IC designs, advanced manufacturing processes, and real industrial chain companies.
These are all valuable.”
Fang Zhuo also took the coffee handed over by the robot and smiled: "This robot is also a good achievement. The visual recognition, data processing and command understanding are much better than before."
He took a sip of coffee: "Yike has solved the performance problem and built a certain ecosystem. Now if we break through the production capacity limit, everything will be fine."
Performance, ecology, productivity.
Yu Hong couldn't help but nod. This was a concise summary of strategic key points.
She hesitated and asked a question: "Is there any news from the photoresist side?"
Fang Zhuo asked calmly: "How can you see it?"
"Look at the look in your eyes." Yu Hong stared into the eyes of the man in front of her. "The eyes seem different."
Fang Zhuo: "..."
He drank half a cup of coffee and said with a smile: "No, I just prayed to God by the window, hoping to receive blessings and give me more ability and ideas to solve the problems we face.
Yu Hong looked at Mr. Fang suspiciously and started talking nonsense again.
"But God didn't give me any movement, and there was only my own voice in the office." Fang Zhuo looked at his hands stirring up the business storm, "I realized then that I don't need blessings, I am the strongest me."
"Okay, okay, stop talking. I won't guess anymore." Yu Hong felt that a certain tendency had been verified, but she stopped asking. The hard days were longer and shorter, but it didn't seem to matter now. Yike relied solely on the domestic market.
Then you can survive.
This is the brand power of Yike over the years, the R&D investment over the years, and the hard work over the years.
Fang Zhuo spread his hands: "If you ask again, I will have a detailed chat with you."
Yu Hong glared at the man in front of her, raised her wrist and looked at the time: "Get ready for the meeting. No matter whether it's good or bad, no matter what uncertainty there is, it's up to you."
Fang Zhuo stretched out his hand and sent Mr. Yu away as a gift.
When he was the only one left in the office, he thought about the company's affairs for a while before pulling out a research and development report from Xinyang Luzhou from the drawer.
Fang Zhuo looked at it carefully for a while and had to admit that he really didn't understand it at all, but he just needed to understand the meaning of the conclusion.
He silently recited the nouns in the report several times, then took out a pen, ink, paper and inkstone. After a while, he took a big stroke of his pen and wrote the words "polyester cyclic acrylate".
Fang Zhuo admired these eight words for a while, hesitated for a moment, and gave up the idea of hanging them in his office.
Forget it, it's just a possibility, let's wait for the concrete implementation.
Fang Zhuo sighed leisurely, put away the restlessness in his heart, and locked the words in the drawer.
Whether it is photoresist or Dr. Liang’s research and development, as long as one of the two turns around, Yike’s current struggles will be greatly alleviated, and the entire system will have more vitality.
However, the current struggle is also a really troublesome struggle...
Fang Zhuo is confident about the future and actually doesn't mind talking about Yike's current situation.
Others returned to Shanghai, and while dealing with various tasks, they also took time to take pictures of the newly evolved robots in their offices, and introduced the progress of visual algorithms to everyone.
The rough version of Yike's robot was an eye-opener for viewers, but most people in the short video comments were still asking about the production capacity of Yike's mobile phones.
Fang Zhuo always saw this kind of problem, so he introduced the situation objectively and acknowledged Yike's struggle.
Such words coming from the head of Yike himself will undoubtedly become the content of news reports, but regardless of the decline in stock prices or the performance of the market, it is actually no secret and there is nothing to hide.
only……
Within two days, Nasdaq's end-of-April data was released. The short-selling data, which was originally thought to be a bomb due to Mr. Fang's remarks, actually declined instead of increasing, with a decrease of nearly US$2 billion.
This Nasdaq data has become the reference for the media to measure Yike's situation. This sudden drop is really confusing.
Similarly, Fang Zhuo was also quite confused. This time there was neither a cry of wolf nor a change in market capacity. There was no good news, so why did the short sellers run away again?
Kong Yu, the gasoline man, gave his own opinion on this situation: "Mr. Fang, they may not understand your honesty and think that such a statement is deceptive, so..."
Mr. Fang confessed that he had suffered a lot from others, and he was often unforgiving of others. Suddenly, this happened...
Therefore, those with psychological shadows rushed to avoid danger, resulting in such a bizarre scene.
Fang Zhuo sneered: "Isn't this considered influential?"
"Yes, this is definitely Mr. Fang's broad influence." Kong Yu praised, "They also think that we have set a trap, that is, we are purely using the villain's heart to judge the gentleman's belly!"
Fang Zhuo gladly accepted the compliment. A trap is a trap, but this upright research and development was a trap for a gentleman. If he stepped in like this again, he would be punished.
