Yike released its second quarter financial report which was not very good.
In addition to the decline in sales caused by limited production capacity, some of the revenue reported in this financial report cannot be reproduced in the short term. For example, Yike receives technical services from Yike Optoelectronics, Yiguo, Yixin, Douyin and other companies.
fee.
Regarding this part, Wang Yan, the president of Sina, read it carefully several times. Well... they have all paid? Why didn't Yike ask Sina to pay?
Wang Yan thought about it and went straight to Shencheng in the name of official business. However, when he arrived here, there was no problem with Sina's affairs, but Mr. Fang, whom he wanted to meet, had already arrived in Luzhou.
He continued to rush to Luzhou, and this time he called his boss directly to confirm that he would be in Luzhou before setting off. However, as soon as Wang Yan arrived in Luzhou, he received a call from Liu Zonghong, the secretary of BOSS, saying that Mr. Fang had to go to the capital temporarily for something.
The president of Sina had no choice but to fly back to Beijing and made an appointment to meet 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. It was another half an hour before he saw Mr. Fang walking into the suite quickly.
He had not seen Mr. Fang recently, and when he met him, he felt that the boss was not as haggard as he had imagined, but instead had a calmness that naturally appeared in difficult situations.
"Mr. Fang, I went around in a circle to catch up with you!" Wang Yan stood up to greet the boss.
"Brother Wang, if you have anything to do, why don't you just call me?" Fang Zhuo shook his old friend's hand and said with a smile, "Or, I have to come to the capital sooner or later to save you the trouble of traveling."
"You come to the capital, but you come and go in a hurry every time." Wang Yan said helplessly, "I know you are busy, and I am embarrassed to disturb you."
Fang Zhuo sat down, nodded, and admitted: "I've been really busy lately. Sometimes something happens out of the blue. I always feel that it's better for me to come forward, so I'm willing to run around more at this time."
"Mr. Fang, the more times this happens, the more brothers and units need to bear the pressure together." Wang Yan felt the boss's schedule and went straight to the point, "I think Yike, Yixin, and Yigou
We paid a technical service fee, why didn’t you tell Sina?”
Fang Zhuo was a little surprised. He turned to look at Liu Zonghong, raised his teacup, and said with a big smile: "Brother Wang, you have been chasing me all this way, so you just got on the pole to pay?"
Wang Yan nodded solemnly: "You must pay what you deserve."
Fang Zhuo mused: "Sina is not easy either."
Wang Yan blinked: "We're okay."
Except that it is not directly or indirectly built by Yike like Yigou, Yike Optoelectronics, and Yixin, our Sina is not bad. On the one hand, it is a well-known domestic game company, and on the other hand, it has established a long-standing reputation in the field of information distribution in the mobile era.
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Although Yike is facing a very difficult situation now, the Yike department is still very strong in the country.
Wang Yan feels that Sina has the responsibility to contribute in the current situation, but he also does not think that the Yike Department will decline from now on, because, in his view, the core of the Yike Department is not Yike Company, but Mr. Fang.
Yike is indeed the company with the greatest achievements in the Yike department, but other companies do not live off the blood of Yike. Instead, they each have their own advantageous businesses.
Wang Yan is aware of the problem of limited production capacity of Yike, but does not think that this will be a long-term problem. Once it is solved by Yike and Bingxin, it means that the external restrictions for a considerable period of time will also be opened up.
All these things are of course necessary to provide help in times of need.
What's more, the friendship between Sina and Mr. Fang is also unusual. It was an acquisition case that was recorded in textbooks.
Wang Yan's eyes were bright and he did not avoid the boss's eyes. He had already expressed his position through the pursuit of this trip and his positive attitude.
"Actually, Yike is not that urgent about revenue, but everyone thinks that we need to stabilize the situation, so we have to deal with it like this." Fang Zhuo thought about it and said tactfully, "Sina can just do its own thing.
.”
"President Fang, since Bingxin and Yike were restricted one after another, there has been a lot of anger within Sina!" Wang Yan said seriously, "This is not my idea alone. I held a meeting in the company before I came, and everyone was unanimous.
attitude, I am willing to do my part to spend the current moment with Yike!"
He stood up excitedly after saying this.
Fang Zhuo waved his hand, motioning for his old friend to sit down, and said with a smile: "Okay, since you have spare power, then... buy back the remaining game shares of Yike."
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, such as World of Warcraft and LOL, both of which are operated by the latter. In order to show the progress of smartphones, 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 it is an important territory for Sina.
Now even if Sina makes a one-shot acquisition at a slightly higher price, high-quality games will not be a loss-making business.
Wang Yan naturally understood this. He originally wanted to mention the technical service fee again, but then he thought about it and realized that his attitude had already been expressed. Mr. Fang was not the kind of person to be polite when he was in special need.
Therefore, he only thought for a moment before nodding: "Okay, Mr. Fang!"
After Wang Yan completed the matter of share money, he couldn't help but mention the current situation of Yike and Bingxin, and also asked about the situation where Yike was targeted by short sellers again after a few years.
Just in the middle of the month, data released by Nasdaq showed that Yike had climbed to the second position, with only a US$300 million gap from Alibaba's shorted position.
It is almost certain that Yike will achieve the honor of "No. 1 in the world" again by the end of this month.
"There is nothing we can do about it. The main energy in this situation is not there now. If they want to go short, they can go short." Fang Zhuo shook his head, "There should be many people who have made money from Yike now."
At its peak, Yike's market capitalization exceeded US$400 billion and has now fallen to US$250 billion. Although there was not a large amount of short selling at the beginning because the situation was unclear, some institutions must have made money from this decline.
"I think this group of short sellers is coming in force, and they mean to continue to distort the value measurement of Yike." Wang Yan said seriously, "Like Russell, he is constantly making noises, singing short on Yike."
Fang Zhuo nodded slightly: "They are probably still waiting."
Yike's stock price has fallen for more than half a year. The short sellers probably want to wait for a sudden drop when Yike or the secondary market cannot withstand the pressure, which will inevitably lead to more selling and crushing, and Russell
The statements made by people like you on various occasions now are all trying to do this.
Of course, Fang Zhuo did not carefully study what the short sellers were doing, nor did he know what price they wanted to wait for before stopping.
He only knows that he is waiting for the breakthrough of photoresist or 10nm. The former is still unclear, but the dawn of the latter within the year has gradually become clear.
Even if SMIC's 10nm process is also restricted by Yike's foundry union, it will be able to set aside at least half a year by then, which will buy time for the breakthrough of photoresist.
Fang Zhuo came to Beijing this time 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 burst out stronger power in the future situation.
He and Wang Yan chatted about the current situation for a while, and felt a little extra emotional after seeing this old friend again for a while.
"Yike won't have any big problems. Sina is also developing very well. Brother Wang, we have lived up to the consensus of that year." Fang Zhuo mentioned that year.
Wang Yan was equally emotional and said after a long time: "I am now the best president in Sina's 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 Fang Zhuo’s reasons for uniting the front when he controlled Sina. Whether he wanted to be “an ordinary CEO with no aspirations” when he evaluated Sina, or “a business strongman 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 tea cup, replaced the wine with tea, and smiled at each other.
At midnight, Fang Zhuo said goodbye to his old friend who had been acquired by a hostile takeover, and took out his mobile phone to make a call to SMIC, confirming that risky trial production might be attempted in August or September.
He was not sleepy and asked his secretary to make 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 something happening with BOE's flexible screen. We can see the new news when we go back."
So self-conscious.”
Selfy is also a well-known product brand created by Yike, but it was determined to stop production to make way for Mars at the beginning of the year. The company felt it was a pity.
However, the R&D department also felt that Selfy and Mars were becoming more and more overlapping in their product positioning, and the imaging performance of the two was almost the same as the hardware progressed. Therefore, they took the opportunity of discontinuing production to reconsider a more radical design.
BOE has tested a flexible screen this year and is expected to officially enter mass production next year.
Therefore, the new Selfy wants to use flexible screens to change the design style, focus on "fashion" elements, and position folding products 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 has fewer iterations.
Fang Zhuo said "Yeah": "That's good news. Mars pursues the best flagship positioning and is top-notch in all aspects. Selfy is going to change."
Liu Zonghong said: "The good news is coming gradually."
Fang Zhuo smiled and said: "I don't know how the new Selfy will be yet. Is this considered good news?"
"Isn't this good news about the progress of domestically produced screens?" Liu Zonghong said seriously, "Mars has almost achieved a nationally produced supply chain. As soon as chip production capacity is restored, the dilemma will be solved."
Fang Zhuo drank the rest of the coffee in the cup: "Okay, let's wait, just wait for this blade."
This trip to the capital to promote the merger of Ice Core and SMIC did not meet any resistance. On the contrary, there was a vague attitude that "it should have been done this long ago".
Since the founders, management, administrative leaders, and company employees have no objections, then let’s do our part.
Fang Zhuo was thinking about the merger and considering the breakthrough of SMIC's technology. This time he had to learn from the experience and lessons of Ice Core, and he must try his best to accumulate chips before the industry saw any clues.
I went to bed very late that night but got up very early the next day.
Fang Zhuo chatted with Kong Yu about SMIC's news so that he could make changes and prepare.
"If SMIC can make a breakthrough..." Kong Yu paused for a long time on the other end of the phone before continuing, "Then hide it as much as possible until the photoresist breaks through, and then we can dedicate it to our short-selling friends."
"That's what I mean too." Fang Zhuo said, "It depends on whether various conditions allow us to show the greatest sincerity."
Kong Yu is deeply excited. One is to ensure existing competitiveness, and the other is to ensure advanced competitiveness.
Taking advantage of the fact that at the end of the month, Yike's short position has become the largest in the world, and we will add another "wolf is coming again", then we will see 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 talents, can accurately capture fleeting opportunities in the market, create benefits for customers that exceed expectations, have the ability to understand the rise and fall of enterprises, their strengths and weaknesses, and have 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 Nasdaq data, Yike undoubtedly ranked first in the world with short positions of US$14.2 billion.
Moments like this will undoubtedly allow Yike to occupy the media space again.
In addition, there are three news from China that make the market a little confusing. First, Ice Core's 16nm is confirmed to be discontinued, which means that the photoresist is indeed consumed. Second, Yike mobile phones from various channels are almost out of stock.
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These two pieces of news confirmed each other, making short sellers excited.
However, the third news is just the opposite. It is said that mainland China has achieved a breakthrough in domestic photoresist.
However, regarding this "rumor", Russell from RC Hedge Fund did not believe it at all. Whether it was based on the judgment of industry experts, the performance of market share, or the operation of Ice Core International, he did not think that there could be any in China.
Such a breakthrough.
Moreover, looking back at the last news from the China Wafer Manufacturing Services Alliance, the intentions of this "supposedly" are even clearer.
"Fake News!" Russell faced the media and gave an extremely confident judgment, and further predicted Yike's situation, "Yike no longer has any mobile phones in stock! Even if there is, it is only a small amount, which is completely unaffordable.
What effect did it achieve!”
"In the first quarter, Yike relied on previous mobile phones to support revenue, and in the second quarter, it relied on sucking blood from companies in the system to support revenue. Even so, Yike's revenue still declined sharply!"
"Ice core production is suspended, what will Yike do in the third quarter?"
"Q3 is the beginning of Yike's complete collapse!"
"Yike is not worth 250 billion, not even 200 billion!"
"We will see this day together, within the next few months!"
Russell not only stirred up public opinion, but also gave out all the news related to Yike that he could get, including the performance of various channels in the European and Chinese markets.
The wolf is coming, and short-selling institutions are rushing to escape.
The wolf is here again, and the withdrawal of short-selling institutions this time is only a small part.
Without market performance and no clear news, the rebound of Yike's stock price was extremely weak. The gossip was more like useless chicken blood. After a short period of stimulation, it quickly fell silent.
Yike's mobile phones are sold out, and regardless of advertising or technical expenses, the real weakness that cannot be concealed is already before our eyes.
Many investors who hold Yike stocks are hesitant. Some are trapped in high positions, and some want to take advantage of the opportunity to buy the bottom. But the current situation... to cut or not to cut?
Just cut it, it hurts.
If you don't cut it, can you still wait for Yike's recovery?
Such a decision seems to be just short of finalizing Yike's situation.
Many people weighed it repeatedly, and finally wanted to wait for Mr. Fang's direct statement, or the release of Yike's third quarter financial report.
