Rebirth 2010: I taught Mr. Lei how to make a mobile phone

Chapter 788 Life is like a play, everyone has their own ulterior motives!

On December 7, 2016, LeEco suddenly suspended trading.

As time went on, unease in the capital market grew daily. Investors who were trapped in their positions complained bitterly, and pessimistic sentiments from the media rose and fell.

2017年1月4日，法拉第（FaradayFuture）终于在CES 2017展会上发布了他们的首款量产电动车——FF91，一举拿下64124台的预订单。

Jia Yueting has shaken off the previous gloom and seems to have returned to his former high spirits. In an interview with reporters, he promised to gradually resolve the financial crisis in the short term. He also mentioned that LeEco Auto has its own financing, the listed company is introducing strategic investors, and the non-listed company is seeking some capital cooperation.

In response to the doubts, he firmly stated: "None of the decisions regarding 'car manufacturing' are worth regretting."

At the end of the FF91 launch event, this persistent dreamer expressed his deep feelings: "The road to revolution is bound to be full of thorns, but we believe that a smooth-sailing career is unlikely to achieve greatness, and the greater the hardship, the better the tempering."

I'm willing to dedicate my entire life to my dream, Dream On and All In!

It is said that the applause at the scene was thunderous.
Subsequently, rumors began to circulate that Sunac had invested in LeEco.

As soon as the news broke, many media outlets analyzed the possibility of a collaboration between the two companies, and the more they analyzed it, the more plausible it seemed.

On January 6, Sunac released unaudited operating data on the Hong Kong Stock Exchange, showing that the group achieved sales of RMB 1553.1 billion last year. In E-House CRIC's 2016 ranking, Sunac ranked seventh among domestic real estate companies.

According to Sunac's interim results report last year, some well-connected media outlets reported that the company had RMB 401 billion in cash reserves and RMB 1680 billion in saleable inventory at the end of the period.

These figures are from the middle of last year. After half a year of development, some financial media speculate that Sunac's cash reserves have reached at least 60 billion yuan, while LeEco's cash reserves are estimated by some institutions to be at least 10 billion yuan short.

This back-and-forth cooperation between the two parties is not just a baseless rumor or speculation, but a real possibility.

On January 13, the dust finally settled: Sunac released a major investment announcement, declaring that it would invest a total of RMB 150.41 billion in the LeEco ecosystem.

The specific transactions include:

Acquired an 8.61% stake in LeEco (300104.SZ) for 60.41 billion yuan;

It acquired a 33.5% stake in LeEco Zhixin for 79.5 billion yuan after the capital increase;

Acquired a 15% stake in Le Vision Pictures for 10.5 billion yuan;

Following this strategic investment, Sunac will become the second-largest shareholder of LeEco and will be deeply involved in LeEco Super TV and film and television content sectors, forming a cross-industry strategic layout of "real estate + Internet".

That afternoon, LeEco founder Jia Yueting and Sun Hongbin, chairman of the board of directors of Sunac, jointly attended a strategic cooperation signing ceremony held in Beijing.

The atmosphere at the scene was lively, and the image of the two Shanxi entrepreneurs shaking hands and making friends quickly spread across the country through major media outlets. This strategic cooperation, which the industry jokingly referred to as a "marriage of Shanxi merchants' capital," officially kicked off.

At the subsequent press conference, Sun Hongbin, with his powerful presence, unusually became the absolute protagonist.

The newly minted second-largest shareholder of LeEco delivered a witty and humorous speech, occasionally interspersed with a few swear words in a Shanxi accent, showcasing a distinctive personal style.

During the media Q&A session, he even took the initiative to answer several questions for Jia Yueting.

However, Jia Yueting was unusually reserved, only offering encouragement and laughing foolishly.

Speaking about the due diligence conducted over the past month, Sun Hongbin even said, "I probably know more about LeEco than Jia Yueting does." "Hello Mr. Sun, I'm a reporter from the Economic Observer. I'd like to ask why Sunac, a giant in the traditional real estate industry, is entering the internet and entertainment sectors, and why did it choose LeEco?"

Sun Hongbin's answer was, "I only look at two things when I invest. First, I need to determine if the project has potential. Second, I need to assess whether the team working on it is capable."

The real estate industry is a 10 trillion yuan market, the automobile industry is a 5 trillion yuan market, and the mobile phone industry is a 1 trillion yuan market, yet they are still fiercely competing. From this perspective, LeEco's ecosystem logic is flawless.

From a tactical perspective, LeEco did a good job. For example, when making cars, they started with the highest-end models and then moved downmarket, which was the right approach.

After saying that, he patted Jia Yueting on the shoulder next to him, "Old Jia has a rare entrepreneurial spirit. I admire him even more after seeing the accounts: he can do such a big business with such a small amount of money!"

LeEco's senior management team is a star team. I interviewed each of the executives, and each section head was quite impressive. If I were to do this job, it would be very difficult to bring all these people over.

Regardless of external public opinion, the entire LeEco employee team is in high spirits and remains united, which is excellent!
This shows that Lao Jia is not only good at doing things, but also good at managing people.

This statement is reminiscent of Wang Jianlin of Wanda Group and his unfulfilled dream of internet transformation.

When asked if he could become "the next Wanda," Sun Hongbin confidently responded,

"The next 5 to 10 years will be a golden age for some companies in China's real estate industry. This is still a huge incremental market, and we will grow rapidly."

It's impossible not to be optimistic about this industry. In two or three years, we will definitely be a company worth 2 billion to 3 trillion. Real estate will still be the root of everything for us.

My investment in LeEco was driven by its underlying entertainment sector, which represents a huge growth market.

I think this investment was quite worthwhile.

"Hello Mr. Sun, I'm a reporter from Sina Finance. I'd like to ask if your investment in LeEco carries a certain sense of mission, and what resources you will bring to LeEco?"
Sun Hongbin laughed heartily, “Investing in LeEco doesn’t involve any sense of mission. We’ll stick to our old business of real estate; our business is much bigger than that.”

Old Jia is short of money, I have money, and I think this is a worthwhile investment.

It's just that 150 billion might seem like a lot to you.

But for me, it was just an ordinary business deal, nothing special.

At the end of the press conference, Jia Yueting finally showcased his signature speaking skills.

In his 10-minute speech, it sounded like both a reflection and a declaration.

"LeEco has come this far, achieving a top-three ranking in televisions and a top-five ranking in mobile phones. These achievements are inseparable from our relentless pursuit and all-in spirit."

Unfortunately, our cash flow was too tight, our pace was too fast, and in particular, the fundraising capabilities of our capital and finance teams were not able to meet the requirements of our strategy.

Our philosophy is that strategy determines organization, but unfortunately, this time our organizational capabilities have not kept up with the major demands of the strategy, so it is an interactive process.

Similar to LeEco, the other side has already set an example and achieved great success, pointing LeEco in the right direction.

(End of this chapter)