Chapter 706 New Year’s Vision, Kill MG

"Mr. Gao, have you done any specific assessment? How much impact will the company's R&D and production have on the company's R&D and production after adopting the extreme plan?"

For the first time, Hu Yang lit a cigarette in the conference room, and even Xia Bing did not protest. Now, everyone is in the same mood, and no one can care about such a trivial matter.

"Mr. Hu, after we adopt the extreme plan, the quality of our communication products and terminal products will undoubtedly decline. In addition, there are several chips being designed, which will extend the design cycle. Generally speaking, in the short term, the quality of our communication products and terminal products will decline.

Our impact will be huge."

Gao Mingkang then provided a set of data. After the implementation of the extreme plan, it is estimated that the company's revenue will drop by 29% and profits will drop by 33%.

This impact can be said to be very large. If it continues like this, it will even affect the survival of the company.

Yan Hanzhang felt the same way and couldn't help but sigh:

"Mr. Hu, Mr. Gao, everyone, the situation of our Charming Semiconductor is similar to that of Mingkang Communications. For example, products containing the company's components are prohibited from entering the North American market.

As a result, not only Charming Semiconductor will be affected, but also a large number of domestic companies such as Charming Electronics and Ark Computer will be affected to varying degrees."

North America's actions this time have a far-reaching impact.

From a small perspective, it will accelerate the decoupling of semiconductor technology between Huijia and North America. From a larger perspective, it is likely to affect the economic cooperation between China and North America.

Things have reached this point, no one within the Huijia department has any illusions about North America anymore.

There are only two ways in front of everyone now, either to break out of the tight encirclement and establish an industrial chain entirely of its own. Or, the Huijia system collapses and is left to be slaughtered by others.

"Everyone, the situation is now clear. In my opinion, all the companies in the Huijia family have begun to implement extreme plans one after another.

While we try to consolidate the domestic market, we must actively explore the European market, Southeast Asian market and other global markets including the African market.

Let me emphasize again, there is no way out by surrendering. The other side’s purpose is not to incorporate us, but to completely defeat us. So, everyone, let’s take action for our survival!”

Everyone discussed it for a long time and basically reached a consensus.

Finally, Hu Yang announced that the entire Huijia system began to implement extreme plans in sequence and fully decoupled from North America.

After the meeting, Gao Mingkang came to Hu Yang's office.

"Mr. Hu, we are burning the boat this time. Fortunately, none of our companies are listed in North America, otherwise it would be even more troublesome."

Gao Mingkang couldn't help but admire Hu Yang's foresight. He had blocked Mingkang Communications and Xentong International's plans to go public in the United States a long time ago.

"The people in North America have no bottom line and will do anything to maintain their so-called lead. This day will come sooner or later. And sooner or later, we will have to break through this level!"

Hu Yang's eyes looked out the window, the bright sun was hanging high in the sky, and his heart also ignited endless fighting spirit.

"Mr. Hu, you are right, this hurdle will pass no matter what. Then I will go back first, there are still a lot of things to do in the company."

Gao Mingkang smiled and stood up to say goodbye. He knew that from this day on, everything would be different, and he was not discouraged about the future.

When Hu Yang sent him out, he happened to meet Yu Hongbo in the corridor.

"Lao Yu, you go to my office and sit for a while. I'll be back soon."

Yu Hongbo greeted Hu Yang and Gao Mingkang, and Hu Yang asked him to go to the office first.

Hu Yang sent Gao Mingkang to the elevator and then turned back.

"Mr. Hu, the stock trend of Minkang Communications is very bad today. It fell 11% in the first hour after the market opened. At present, the decline has a tendency to expand further.

Observing from the market, there are obvious signs of concentrated selling by large funds, and I suspect that someone is shorting the company's stock through bad news."

Yu Hongbo did not hesitate and directly told Hu Yang the news.

Hu Yang and Gao Mingkang were mentally prepared for the drop in Mingkang Communications' stock price. Faced with all-round suppression from North America, few companies in the world could survive.

However, Hu Yang noticed Yu Hongbo's narrative. Is there someone short selling Mingkang Communications?

"Lao Yu, please wait a moment..."

An idea flashed in Hu Yang's mind, and he suddenly remembered something. This matter was very important. He didn't bother to continue talking to Yu Hongbo, and immediately called Wu Xinhui over and asked her to contact Han Wen.

When the call was connected, Hu Yang walked to the small reception room next door with his mobile phone.

"Awen, do you have any clues about what I asked you to inquire about? Li Kailong has brought out HK$50 billion in funds from HSBC. What is he going to do?"

"Boss, I just passed the border and was just about to report this matter to you. Otherwise, I will be in your office in about 30 minutes. Let's wait until we meet?"

Han Wen obviously didn't want to talk about this on the phone, so he planned to meet with Hu Yang before reporting.

"Well, then I'll wait for you. Hang up first."

Hu Yang felt that there was no need to care about this little time. After hanging up the phone, he returned to the office.

"Lao Yu, you also know the current situation of the company. North America has begun to suppress us in all aspects. This is big bad news, and stock price fluctuations are inevitable.

However, it is not that easy for someone to take advantage of this opportunity and want to short us. From now on, you should keep an eye on the stocks of the listed companies under our Huijia Group. No matter what happens, you must tell me as soon as possible."

Hu Yang suspected that the large funds shorting Mingkang Communications might belong to Li Kailong.

As a result, less than half an hour after Yu Hongbo left, his hunch was confirmed.

"Boss, I don't know the details yet, but Li Kailong invested the funds in the securities market and didn't run away. I heard that Li Kailong was going to short-sell the stocks of our Huijia department. Some said it was Xintong International, and some said it was Mincom Communications.

...In short, there is anything to say.”

Xiangjiang is such a big place, and it is difficult to keep it completely secret. Han Wen also spent a lot of money this time, and finally learned some new information.

"That's right! Awen, Li Kailong has already taken action. He is shorting Mingkang Communications. As for whether he will make any new moves in the future, it is difficult to say. So you have to continue to keep an eye on him and report any news to me in time.

report."

Hu Yang secretly clenched his fists, it turned out that boy Li Kailong was waiting for him here.

Youdao is overthrown by everyone, and now North America has begun to suppress the Huijia Group in all aspects. So if the other party shorts the Huijia Group's stocks, it will really get twice the result with half the effort.

"Okay, boss, I understand. I will rush back to Xiangjiang now and I will definitely keep an eye on Li Kailong."

Han Wen did not dare to neglect, and did not even bother to eat lunch, so he hurriedly returned to Xiangjiang.

With the help of Guo Bingkun, Han Wen has initially established a network of contacts in Xiangjiang. It is much easier to collect any information than before.

"Eh? Mr. Gao, didn't you leave? Why are you back again? It just so happens that it's lunch time now, let's chat while eating.

Assistant Wu, please ask someone to bring some dishes downstairs, I will have lunch here today."

Not long after Han Wen left, Gao Mingkang came to Hu Yang's office again.

At this time, it was almost time to get off work at noon. Hu Yang arranged for Wu Xinhui to prepare, and he and Gao Mingkang came to his own small restaurant.

"Mr. Hu, the company's stock has fallen hugely. It seems that someone is taking advantage of the situation. I originally wanted to raise funds in the securities market next month. Looking at the current situation, I'm afraid it will be difficult to realize it."

Gao Mingkang sighed, feeling a little unhappy.

Hu Yang smiled casually: "Mr. Gao, with such big bad news, the stock price will of course have a large drop. Our best response now is to ignore it and let it fall."

Stimulated by sudden bad news, Mincom Communications's decline has just begun. Nothing is right now, so it is better to wait and see what happens.

"Mr. Hu, the problem is that I will have a big funding gap in the next two to three years. You also know that the suppression in North America will have a great impact on the company's revenue and profits.

If I reduce R&D expenses, the technical advantages we have accumulated with great difficulty will be completely lost. In this way, a vicious circle will be formed, and then the company will really be finished."

Why did Gao Mingkang return immediately after leaving? He just realized this problem and couldn't help but break out in a cold sweat.

"Mr. Gao, after your annual report is released early next year, if it is difficult to raise funds in the market, then the company will start a new round of capital increase and share expansion.

I have a preliminary idea, haven’t you already separated out the chip design company? Let’s start with this company first, what do you think?”

R&D expenses account for the majority of Mingkang Communications' operating expenses. Currently, the company's R&D expenses account for about 20% of the company's total revenue, which is unmatched by any other company in the country.

Such huge R&D expenses require the support of rapid corporate development. But now that Minkang Communications has been comprehensively suppressed by North America, its revenue and profits will drop significantly, making it difficult to continue.

If the company's R&D expenses decrease, it will inevitably affect the company's weak technological leadership. This is an endless cycle, and it is also the effect that North America wants to achieve by suppressing the company.

For Hu Yang, the only way to hedge is to raise funds. Under the current circumstances, Huijia can only rely on itself as the source of funds.

"What opinions can I have? It's too late for me to be happy. If you are willing to increase investment, I naturally won't care about a mere chip design company."

The chip design company is an asset that Gao Mingkang values ​​​​very much. This company carries the hope of comprehensively surpassing North American communication technology, and he will not easily bring in any more shareholders.

If he had to introduce new capital, Gao Mingkang still hoped to solve the problem within the Huijia Department. Therefore, Hu Yang's statement made him feel a little more confident.

The two had a casual lunch, and Gao Mingkang left the investment building immediately.

The domestic 4G layout is now at a critical stage, and the bidding work of several major operators is starting one after another. He does not dare to take it lightly.

Losing the North American market, losing North American parts and technical support, the domestic market is particularly important to Mincom Communications.

The time soon came to the end of December, and there was already heavy snowfall in the north, but the temperature in the deep sea was still as warm as spring.

Over this period of time, Mingkang Communications' stock price has plummeted, falling to HK$33 per share, a huge drop.

Yu Hongbo has been tracking the trend of this stock. At the same time, affected by it, the stock prices of Xintong International and even Penguin Empire have fallen significantly.

On the contrary, the stock price of Charming Semiconductor, which is listed in China, is relatively stable. So far, it has only dropped 13% compared with the highest price, which can be said to be very stable.

"Mr. Hu, Charming Semiconductor has escaped a disaster. But I am confused. The stock price of Mincom Communications has dropped so much, and even Xentong International has dropped by 25%. How come Charming Semiconductor is the best performer?

"

Yan Hanzhang has also been very busy recently. Today he came to Hu Yang for other reasons, and by the way he mentioned the company's stock price.

"Mr. Yan, don't you know? There is a big difference between the mainland securities market and the securities market in Hong Kong. The biggest difference is the different valuations and different trading rules."
To be continued...