September 21st, there are still 9 days left before the end of Q3.
Fang Zhuo called Beijing after Bingxin once again confirmed that the photoresist was available.
In just two hours, leaders from multiple departments were determined to fly to Luzhou in the afternoon, including my brother Zheng Danrui, who was in charge of some business work.
At 12 noon, Zheng Danrui called Fang Zhuo on the way to the airport to inquire about the exact progress of the photoresist research and development work.
Fang Zhuo gave a concise explanation.
Zheng Danrui's heart was filled with excitement when he heard it, and he suddenly asked: "Yike's third quarter financial report is coming out soon, and the revenue cannot be seen after all."
Even if the production capacity is restored immediately, the revenue in the upcoming third quarter will not be able to make up for it. There will definitely be an extremely ugly financial report, and this is the last straw that overwhelms Yike that has been exaggerated recently.
Fang Zhuo knew what he was talking about and smiled: "Obviously, financial reports are not the only criterion for measuring the value of a company's stock."
During this wave of short selling, many institutions have repeatedly emphasized a point of view, believing that "financial reports are the most important criterion for measuring a company's stock price", trying to use Yike's Q3 financial report that has no way back to defeat the stock price.
However, Fangzhuo will demonstrate another criterion for determining stock price movements - expectations.
Zheng Danrui felt reassured when he heard Mr. Fang's words. Since the world-renowned mobile phone financial company has good news, Lao Mo will definitely be able to make good use of it.
He did not talk about this topic again, but talked about the leader he would meet in the afternoon.
The current situation between Yike and Bingxin has been discussed many times, and there are also many written materials. There is also a lot of struggle over the import of photoresist, but being controlled by others is controlled by others, and BIS is very tight.
It is very difficult to restore the supply of ice cores in the short term.
However, once it exists in the country, the situation is completely different.
Fang Zhuo has the same expectations for this change, and DuPont has also used its ideas to support this direction.
The call between the two was interrupted when Zheng Danrui arrived at the airport.
When the hurried passenger plane from the capital landed in Luzhou, Fang Zhuo met Zheng Danrui again with many leaders.
We didn’t exchange too many greetings. The most important thing about this trip was to hear the latest situation report.
Just like the previous report in the early morning, this time it was still Wang Fuxiang, the head of Xinyang, Chai Qingliang, the head of R&D, and Yan Zongrui, the vice president of Bingxin, who jointly described the current situation.
After it was confirmed that the 16nm photoresist had indeed broken through, the focus of the conversation turned to the related guarantees of the next process node. Yan Zongrui described in detail the continuity of the photoresist this time due to the process technology.
"Mr. Fang, this is really a solid surprise!"
"Okay, this is the photoresist that cannot be sealed, this is the spirit of the ice core that cannot be sealed!"
"Mr. Fang, okay!!"
Leaders from Beijing spoke highly of it.
Fang Zhuo said seriously: "This is due to the Xinyang team's courage to shoulder the heavy responsibility, and to the persistence and dedication of all Bingxin employees. We have long proven our competitiveness to be on par with the world's advanced levels. This time we are once again able to
Practical actions demonstrate our enterprising spirit to the world, which will not only consolidate our leading position in the industry, but also continue to vigorously promote the development of the mainland's semiconductor industry."
Wang Fuxiang from Xinyang couldn't help but feel elated when he saw Mr. Fang speaking and pointing his direction with his eyes, and was surprised when he heard what another leader said.
One leader joked: "President Fang, you have finished what we have to say, what else can we say?"
Everyone laughed.
Now that the situation has become clear, the biggest problem in the operation of the ice core has been solved, and the next work is easier to do.
Wang Fuxiang and Chai Qingliang also received praise from their leaders, but after completing their reports, they made room for in-depth discussions between the head of Yike and the leaders.
"Chai Gong, I asked you what your request was before. You said you wanted to think about it. Have you thought of it now?" Wang Fuxiang asked the hero with a smile on his way back.
Chai Qingliang nodded and said seriously: "I thought of it."
Wang Fuxiang asked in surprise: "Have you thought of it? What do you want?"
"I heard that Mr. Fang has a fund for financial management. I want to put all my money and that of my relatives and friends into it." Chai Qingliang replied, "I plan to mortgage the house first."
Wang Fuxiang: "..."
He couldn't laugh or cry: "You...you are taking risks with your own money, why don't you just ask Mr. Fang for it."
"It's my own money, so maybe it doesn't count. I can think about it again later," Chai Qingliang said.
Wang Fuxiang: "..."
He walked a few more steps and asked, "Did you really put the house on hold?"
Chai Qingliang said strangely: "Yes, there is no hesitation in this. I researched the photoresist myself. Mr. Fang is obviously going to make a counterattack. The short sellers will definitely be bleeding like rivers. If you don't bet now, when will you bet?"
"
Wang Fuxiang thinks it makes sense.
Let's think about it... Instead of mortgaging your own house, how about pledging part of the company's stocks?
Let’s also have a taste of being short?
Wang Fuxiang made a decision in his heart. If he wanted to play, he would play the big one!
…
The third quarter is coming to an end, and the countdown on the "KILL YIKE" website has been changed to blood red to suit the occasion. Although I don't know whose handiwork this is, it has always been one of the materials for media reports.
Even in the exchanges between institutions, this website and the news on it will often be discussed.
On September 27, a Wall Street exchange meeting was held as a special session for Yike. Senior executives from institutions such as Knicks United Fund, Greenlight Capital, and Citadel Investments, which had recently spoken out, were present. Everyone discussed their views on Yike.
In the evening, they held another cocktail party, which was basically attended by the same camp that shorted Yike. In addition to those who had shorted Yike recently, there were also people who had been beaten up by Yike twice before.
For example, John Paulson, who has been awarded many shining names such as "King of Short-selling", "Wall Street Short-selling God" and "No. 1 Hedge Fund" due to the financial crisis.
He had to close his fund because he was short-selling Yike. Since then, he has stopped engaging in this business and instead focused on giving speeches and publishing books, and he has made a lot of money.
Yi Ke was hit by BIS this time. Paulson has been paying attention to this matter and thinking about the changes and future in the market. He waited until May and finally decided to come back to work. He secretly established a new hedge fund and started shorting Yi Ke.
division.
However, Paulson was extremely cautious and withdrew as soon as he heard the news about the China Wafer Manufacturing Alliance. Then he withdrew again after observing Mr. Fang’s abnormal performance. He waited until the news of the ice core photoresist breakthrough at the end of August.
Three withdrawals.
Three advances and three retreats.
This is the fourth time I have shorted Yike.
Regardless of market performance or professional judgment, Paulson believed that Yike could no longer maintain its stock price, so he made a public appearance at this time to announce his return.
John Paulson was very popular back then, and there was indeed a lot in common with him at this cocktail party.
"Yike's Q3 must be its worst quarterly financial report in history." Paulson held a glass of wine and chatted with Russell, the pioneer of short selling, "No matter what news comes from China, the market is already numb.
What was said about photoresist and production capacity restoration before is now definitely false news.”
"I told the media at the time that it must be false. Many people still had hope for Bingxin and Yike." Russell said disapprovingly, "BIS decided to use photoresist to attack Yike. This is very secret.
It's also very sudden, and it's absolutely impossible for Yike to solve it in a short time."
Photoresist involves foreign manufacturers, and BIS's long-arm jurisdiction requires a lot of effort.
Paulson was convinced.
Russell looked at the senior short seller, took a sip of red wine, and asked with a smile: "Paulson, you fought with Fang Zhuo, what did he think of him?"
This question has interested many people, and they have calmed down and wanted to hear the views of the former "King of Short Sellers".
Paulson's expression became a little more gloomy. After a few seconds of silence, he said, "Fang Zhuo is still very fierce."
When everyone heard such comments, a shadow seemed to flash through their hearts.
"But there is a saying in China." Paulson held the wine glass and said slowly, "There is no freedom when a hero is shipped. Fang Zhuo is indeed very fierce, but this time it is different."
Russell was very satisfied with this and raised his glass: "Here's to 'This time is different'!"
The market is gone, the photoresist is gone, the financial reports are not good, the production lines are not running, this time is different!
Everyone raised their glasses.
Chanos, the "short-seller master" of the Knicks United Fund, had a great time tonight. After drinking several glasses of wine, he loudly said: "What's Yike, what's Fang Zhuo, come and listen!"
He attracted everyone's attention and made the place quiet. He touched the glass in his hand to the wine glass in the hand of the person next to him, making a "bang" sound.
The wine glass broke and the red wine spilled on the floor.
Chanos laughed loudly: "Listen, this is Yike's broken voice!"
Everyone laughed, and more Yike's broken voices could be heard in the venue.
Paulson had not communicated with so many peers for a long time, and he was in a particularly comfortable mood as he was once again the opponent he had shorted before. He clinked glasses one by one with the fund managers who had spoken out against Yike, and finally returned to Russell.
.
"Russell, when do you think Yike's Q3 financial report will be out?" Paulson chatted about the last moments.
"If it doesn't come out on the 31st of next month, it will be on the 15th of November at most." Russell said about the process and guessed, "I think it will come out in the first ten days of next month. Yi Ke has already
There’s no chance, so what’s the point of dragging it on?”
According to regulations, Yike's Q3 should be announced before the 31st, but there are special circumstances. It can submit Form 12b-25 to the SEC, which is "a form notifying the inability to submit periodic reports on time." This will give a short period of time.
The deadline is usually 15 calendar days.
Paulson nodded and said thoughtfully: "I think Fang Zhuo will wait until the last moment."
"Why?" Russell asked.
Paulson thought about the fierce Mr. Fang and shook his head: "Feeling, just feeling."
Russell Heeran: "The longer he delays, the greater the negative sentiment in the market. I hope Fang Zhuo is a person who can accept failure."
Paulson thought about the current market sentiment and said with a smile: "He can do it. He can give lectures and sell books like me."
The two looked at each other and smiled, clinking glasses again and listening to Yike's broken voice.
The reception was very lively. Russell was playing TikTok recently. He even patted his colleagues who were in high spirits and marked them with text.
——My colleagues with whom I have agreed, they all agree that the only shortcoming of Yike is that it is very weak.
…
On September 29, Kong Yu, head of MIGA Fund, arrived in Luzhou late at night.
The first time he met his boss, he showed the grand scene of his friends outside.
Fang Zhuo looked at it carefully and smiled: "The last supper."
"Hey, my first reaction was the same." Kong Yu made a cup of coffee by himself, "Mr. Fang, they have reached a consensus, but I think their conclusion is wrong."
Fang Zhuo wants to hear what the Gasoline Man is selling.
Kong Yu declared his opinion: "I think the only shortcoming of Yike is that it looks weak."
Fang Zhuo laughed dumbly.
He threw the document in his hand to the gasoline man opposite.
Kong Yu took it and read it. He looked at the title first and immediately knew that the middle part was incomprehensible. He turned to the final conclusion and sighed: "Dr. Liang is really unparalleled in the world!"
On September 17, photoresist broke through.
After 12 days, the risk trial production of SMIC’s 10nm process was successful.
Fang Zhuo had already spent the joy of knowing the news for the first time, and nodded: "Indeed, Dr. Liang is unparalleled in the world. If the ice core was not restricted, we would probably be able to complete the small-scale mass production of 10nm in the middle of the year. Now we can
Launch a new flagship."
That means that Bingxin and Yike can completely consolidate their lead over other manufacturers. Unfortunately, this hard-to-build cycle has been interrupted.
"Dr. Liang is a sharp tool, and ice cores are also a sharp tool." Kong Yu looked over the documents of the risky trial production and couldn't help but sigh, "Mr. Fang, how can you get along with someone like Dr. Liang?"
Are there any opponents?"
Fang Zhuo said calmly: "It's too much praise. There are still many problems later, but at least we can solve them one by one, and I will live up to everyone."
Kong Yu digested the latest good news for a while, and then re-calculated the situation at hand.
After a while, he asked: "Mr. Fang, how long can the news about SMIC's 10nm be hidden?"
Generally speaking, equipment and raw material manufacturers will be ahead of manufacturers in adapting to advanced processes, and manufacturers are also conducting research and development on multiple processes at the same time. However, there will still be clues about SMIC's 10nm breakthrough.
"The Q3 financial report will be pushed to November." Fang Zhuo did not answer immediately. Instead, he talked about the timing of the financial report that is of concern to the outside world. "It will not be released before the 31st. We will apply for an extension. In November, almost the second week, the election in the United States will be held."
The results will be known soon, and if there is no problem, we will present gifts to the couple at that time."
Kong Yu looked at Mr. Fang in surprise, and then understood that there might be some additional meaning in it.
He asked: "This short squeeze, where is the Austrian coin..."
"Don't say hello in advance. This is our own breakthrough. It's just a matter of making more or less." Fang Zhuo said, "When the time comes, we will make a final call. They can make as much as they want, it doesn't matter."
Kong Yu is almost certain that his friends still want to make more money, and they will soon step down. If they don’t use it anymore, it will be useless.
Fang Zhuo thought for a while and continued to talk about the key work arrangements: "Yike's autumn press conference will be held during the second week of November. There will be no on-site release. Well, let's make a two-line press conference.
, pre-sale the new generation Mars10 equipped with 10nm chip."
As expected, the new generation of Mars 10 cannot use ice core technology. Therefore, this time it is replaced by SMIC technology, which is still half a generation ahead.
Kong Yu thought about all the information and arrangements, thought about Yike's unprecedented press conference, thought about the situation and the river of blood, and sighed: "Okay, let's give a gift to the newlyweds."
Immediately, he said loudly: "A gift for Mr. Fang!"
