When Yuedong Internet cooperated with IDG, Chen Xiao put forward an additional condition.
The additional condition is to let IDG lend Chen Xiao 20 million RMB personally.
Chen Xiao has used most of the 20 million RMB to acquire Jiangzhou Machinery Factory Zhongjing Company and transform its equipment to make it suitable for the production of pure carbon crystals.
That means Chen Xiao has no money now.
Technology products all cost money in the initial stage. Even if Changtian Technology is now making profits from Lingyue MP3, its speed is far less than the current speed at which Chen Xiao is burning money.
Unless Lingyue MP3 can be mass-produced on a large scale, Changtian Technology can still achieve breakeven so far.
This presents a paradox.
Because Chen Xiao has no money, carbon crystal storage cannot be mass-produced.
And because carbon crystal storage cannot be mass-produced, Chen Xiao cannot make more money.
Chen Xiao chuckled at the thought of this.
Sure enough, the steps are too big, and I will pull my balls.
In the past six months, Chen Xiao has expanded his industrial chain too much.
He felt that he needed some time to digest it.
Yuedong Internet can indeed make money here. If it continues to develop on this scale, it will be able to make tens of millions in profits by the end of the year.
In the next few years, the Internet will experience an explosive period. Yuedong Internet will also have a period of rapid growth. It is not a big problem for annual profits to reach hundreds of millions of yuan.
But because the time period was too long, Chen Xiao couldn't wait.
However, according to the agreement between Yuedong Internet and IGD, the annual dividends attributed to shareholders are only 10% of profits.
The remaining profits will continue to be invested in the development of Yuedong Internet.
Chen Xiao sat on the sofa in the laboratory, drank a cup of strong tea, and thought about how to make money.
The best way to make money is of course financing.
If you want to raise funds, you must come up with core technology.
There are currently three parts that can be financed.
The first part is Yuedong Internet.
However, Yuedong Internet has just completed its first round of financing, and there has been no major breakthrough in products or users. At this time, using Yuedong Internet to directly complete the second round of financing, not to mention the dilution of the shares, the premium will not be high, which is quite uneconomical.
The second part is the carbon crystal storage of Changtian Technology itself.
Carbon crystal storage is the world's leading storage device. If you use this technology to finance, you will definitely be able to get a good price.
But Chen Xiao was unwilling to do this.
Carbon crystal storage is the core technology of Changtian Technology, and it still has a wide range of prospects and uses in the future. If the corresponding equity is diluted at this time and a financing of 100 or 200 million RMB is obtained, it seems that it can solve the urgent need at present, but in the long run, it will not be suitable for The damage to Changtian Technology is very great.
Selling basic technology like carbon crystal storage at a bargain price of 100 to 200 million is something Chen Xiao would not do as long as he did not have Alzheimer's disease.
The last one that can be financed is Lingyue Company.
Lingyue is currently very famous around the world, especially in the field of MP3, and is fully capable of competing with Sony, Samsung and other companies without falling behind.
Moreover, Lingyue Company is only an application of technological products and does not involve core technological technologies.
As long as MP3 players equipped with carbon crystal storage can have a hot sales, then Lingyue Company should be able to sell them at a good price.
Only by giving up can you gain.
In the early days of starting a technology company, it is indeed necessary to sacrifice some interests in order to gain something more long-term.
Chen Xiao reduced the company's expenses and used all working capital to produce carbon crystal storage and Lingyue MP3.
He also found the relevant departments in Jiangzhou City and made relevant loans using Changtian Technology as the carrier.
This loan is far less convenient than later generations, and it is even more difficult to get loans for science and technology companies in inland cities.
It is almost impossible to borrow tens of millions, and Chen Xiao only borrowed more than 1 million. All these funds were used for the production of carbon crystal storage and the manufacture of the latest Lingyue MP3.
Chen Xiao has done her best to ensure that Guomei Mall has products in first- and second-tier cities.
On the day Lingyue MP3 went on sale, many people gathered in the Guomei exhibition hall, especially in Yanjing and Shanghai.
Some of these consumers are people who are really willing to buy Lingyue MP3 to listen to music, and some are professional reviewers from various media or newspapers and magazines.
Especially emerging technology magazines like "Computer Enthusiast".
Among them, the testing column for new products is very popular among readers.
There has been a lot of negative news before the sale of Lingyue MP3 equipped with carbon crystal storage.
For example, the storage capacity is not as much as officially advertised, or the data stored in it is easily lost, etc.
In order to get accurate information, each of these questions must be answered first by consumers.
Only in this way can you ensure the timeliness and readability of your magazine's news.
Wang Xiang is extremely worried about the sales of the new Lingyue MP3.
But he found that Chen Xiao was not in the company these days, and he couldn't help complaining: "Isn't Chen Xiao still celebrating the New Year these days? Why aren't you nervous at all?"
Zhou Linghua also rushed to the company headquarters from the factory. He and Wang Xiang drank tea together, but he was actually very nervous.
Chen Xiao’s order to him was to gather all resources to produce Lingyue MP3.
This time the company has spent a lot of money. If the sales of the products do not meet expectations, then Lingyue Company is likely to suffer a rupture in the capital chain.
At that time, although Chen Xiao was able to use part of Yuedong Internet's funds to rescue Lingyue Company through capital operations and loans.
But the risk is very high and it is not very compliant.
Just when everyone was worried, Liu Xiaochuan, the representative of Yuedong Internet IDG, called Wang Xiang.
Liu Xiaochuan said: "Mr. Wang, I wonder if you are free now? I have something to talk to you about."
"I'll wait for you in the conference room."
Wang Xiang patted Zhou Linghua on the shoulder and left the office.
In the conference room, Liu Xiaochuan, who had just arrived for work, was waiting for Wang Xiang.
IDG is also one of the major shareholders of Yuedong Internet.
Therefore, IDG will send employees to work at Yuedong Internet.
Liu Xiaochuan is one of the shareholder representatives. His daily work is to urge and supervise whether Yuedong Internet operates in accordance with the investment agreement between the two parties. As the contact person between IDG and Yuedong Internet, he promptly reports some demands of Public Opinion Internet to IDG.
Yuedong Internet's current operating conditions are very good, and IDG is also quite satisfied, so Liu Xiaochuan rarely meets with Wang Xiang alone.
Wang Xiang and Liu Xiaochuan exchanged pleasantries for a while and asked, "What are Mr. Liu's orders?"
Serve as shareholder representatives of major shareholders and as directors on the board of directors.
Liu Xiaochuan was also appointed as the vice president of Yuedong Internet.
Liu Xiaochuan waved his hand and said: "This time I am not looking for Mr. Wang to please the Internet."
Liu Xiaochuan took a sip of tea and said, "I was entrusted by the headquarters to discuss with Mr. Wang whether our company can cooperate with Changtian Technology again."
Wang Xiang's heart skipped a beat when he heard what Liu Xiaochuan said.
He knew that the company was short of money during this time.
If we can get financing from IDG again, it will definitely solve the company's urgent needs.
Chen Xiao was originally a very calm person, but after the Spring Festival, he was looking for various connections to get loans, which already shows the problem.
Technology companies are really burning money.
This is completely different from the original foundry where Wang Xiang worked.
Moreover, in the face of the ban from companies such as Netac, there are many industrial closed loops that require Changtian Technology to complete in person.
This sounds simple to say, but is very cumbersome to implement. The main problem is lack of money.
There are many reasons for lack of money.
A Changtian Technology wants to upgrade the equipment of the carbon crystal production line.
Another factor is the impact of the lawsuit with Netac and the negative reports of Changtian Technology by Western public opinion.
Many coastal manufacturers are unwilling to take orders from Lingyue Company in order to maintain friendly relations with Sony and other companies.
For example, an MP3 control button was originally produced by a factory in Yangcheng.
However, because this factory has cooperation agreements with Sony and other companies, it declined the order from Changtian Technology directly after the Spring Festival.
Zhou Linghua also went to Yangcheng after the Spring Festival, hoping to find other OEM companies.
However, I found that most of the manufacturers with good quality cooperate with companies such as Netac, Sony or Samsung.
Since then, this small component needs to be completed by Changtian Technology alone.
Although this small part is not valuable, if it is to be produced, it involves a complete set of equipment from the production line to raw materials, which is very expensive.
In order to ensure the quality of the product, Chen Xiao stopped purchasing related parts from small factories. Instead, he asked Zhou Linghua to produce them in the factory first, and then found a large OEM manufacturer at the same time.
Lingyue MP3 has a great reputation in the industry, but because its output is not large, in the eyes of coastal factories, it is just a small company and only provides small orders.
It is perfectly normal to choose to cooperate with large manufacturers and suspend cooperation with small ones.
Wang Xiang quickly cheered up and asked: "Mr. Liu's words are serious. I wonder what kind of cooperation your company is willing to carry out?"
Liu Xiaochuan pushed the information he had prepared to Wang Xia and said: "The headquarters is interested in Changtian Technology's carbon crystal storage and is willing to invest in its project."
Liu Xiaochuan laughed and said: "I also heard that the capital chain of Changtian Technology is relatively tight during this period. I hope that this time our cooperation will continue the good atmosphere of Yuedong Internet cooperation."
What Liu Xiaochuan handed over was just a framework agreement.
The agreement does not specify the specific amount, but it is already clear that IDG will obtain relevant equity in the company where the carbon crystal storage is located in the form of investment.
Liu Xiaochuan said: "The framework agreement did not mention the amount, but as far as I know, the amount should be eight figures, about one meter."
Eight digits of rice is equivalent to hundreds of millions of RMB.
Wang Xiang's heart skipped a beat, and then he felt calm.
On the one hand, Western academic circles and public opinion circles are strongly denying carbon crystal storage.
On the one hand, Western investment companies came to ask for investment.
What a contradiction.
Who is lying?
Obviously, capital does not lie.
Wang Xiang feels that Chen Xiao's decision to let the company do its best to produce carbon crystal storage during this period was quite correct.
This wave of carbon crystal storage should be stable.
(End of chapter)
