Rebirth of Hong Kong Island, leading the technology war

Chapter 631 The纨绔少爷 (Wán kù shǎo yé, a spoiled young master) suddenly launches an attack! A professional analysis of power batteries stunned the entire audience, and the board members were paralyzed with fear!
Of course, some people thought that Hu Wenxin might just be putting on a brave face. As the chairman of the group, he had to keep his emotions in check, which was not difficult for someone of his caliber.

But the key question is, does Hu Wenxin really not mind that Hu Jiangshan might make potentially highly unprofessional remarks about such a significant investment deal in this setting?

This seems inconsistent with his usual cautious approach.

At this moment, Zhou Xuecong, a director who had always supported Hu Wenxin, couldn't stand it anymore. He coughed lightly and said, "Everyone, after all, Mr. Hu is not a formal member of the management team of our Hezhong Group. He probably doesn't know the details and decision-making background of this specific investment case of Yute Technology. It's probably not appropriate for him to express his opinion now, is it?"

It's not surprising that Zhou Xuecong would say that, because he has always firmly stood by Hu Wenxin's side.

The other directors who had a good relationship with Hu Wenxin nodded slightly upon hearing this, showing knowing smiles that indicated their understanding.

However, something even more unexpected happened.

Hu Wenxin waved her hand and calmly took over the conversation: "Xue Cong, it's alright. If A Shan does have some observations and ideas about this matter, it's fine to share them. He's not an insider of the group, so sometimes he can provide an outsider's perspective. As the saying goes, 'the onlooker sees more of the game.' Maybe some of his ideas can provide us with some new ideas or different perspectives."

Upon hearing Hu Wenxin's words, the board members present exchanged bewildered glances, their faces filled with disbelief and astonishment.

They never expected that Hu Wenxin would not only not stop him, but would instead encourage Hu Jiangshan to speak.

This is absolutely outrageous! When did he develop such strong confidence in his son?
Dong Jianming was also filled with doubt and suspicion: "What's going on? Hu Wenxin's behavior today is a bit unusual. How can he be so calm? Could it be that he's become such a good actor? It's one thing to be able to remain expressionless and calm, but why is he even taking on this challenge? This is completely out of character for him, who's always been so protective of his own. This is going to be interesting. Now, let's see if Hu Jiangshan has the guts to take this on."

At this moment, everyone's attention in the entire conference room was once again focused on Hu Jiangshan.

Everyone held their breath, eager to see how this young Mr. Hu, who had always been regarded as a spoiled brat, would react.

Is it stage fright and backing down, or is it just bluffing and talking nonsense?

Tian Ziyi was a shrewd person. Her sharp eyes were scrutinizing Hu Jiangshan intently, trying to catch even the slightest sign of embarrassment, panic, or helplessness from the most subtle changes in his expression.

In her view, someone like Hu Jiangshan, who was suddenly thrust into the limelight and faced scrutiny from a group of seasoned business veterans, should have revealed his true colors.

However, to her surprise, Hu Jiangshan did not show any particular emotion on his face.

Faced with Tung Kin-ming's sudden, almost deliberately difficult question, and the diverse and meaningful gazes that instantly focused on him, he showed no stage fright whatsoever. Instead, he simply smiled calmly and unhurriedly.

Hu Jiangshan cleared his throat and began to speak in a calm tone that was neither arrogant nor timid.

"Actually, I do know a bit about Yute Technology."

As soon as he said this, many people present looked at each other in disbelief.

This is absolutely unexpected!
Does anyone here not know what kind of person Hu Jiangshan used to be?
A typical spoiled brat who idles away his days, is ignorant and incompetent, and only knows how to eat, drink and have fun.

How could he possibly know anything about a highly specialized company like Yute Technology?

It's important to know that Yute Technology is not a local Hong Kong company, but a company rooted in the mainland that focuses on high-tech manufacturing.

For most ordinary people and business people living on Hong Kong Island who focus their daily attention on traditional industries such as finance and real estate, the name Yute Technology is still quite unfamiliar, and many people have never even heard of it.

At least at this point in time, its popularity is far from widespread.

So when Hu Jiangshan said that, most people's first reaction was that this kid was definitely bragging!

He probably doesn't even know what YuTe Technology does; he's just spouting nonsense to save face.

However, what Hu Jiangshan said next was like a silent slap in the face to those who had looked down on him.

Hu Jiangshan continued unhurriedly, "Yute Technology is a high-tech enterprise in mainland China that focuses on the research and development and manufacturing of power batteries. Moreover, as far as I know, it is currently the leading enterprise in this niche field, with a leading market share and technological accumulation."

Although Dong Jianming was somewhat surprised that Hu Jiangshan could accurately state Yute Technology's main business and industry position, he couldn't help but ask with a hint of testing, "Oh? It seems that Mr. Hu really knows this company. Do you know what the company's current operating status is?"

Upon hearing this, Hu Jiangshan's calm smile returned, and he replied confidently, "Of course I know. This company is indeed still in the investment phase, and its financial statements show a loss. This is a common situation for high-tech manufacturing companies during their rapid development phase, especially in fields that require continuous and substantial R&D investment."

That was exactly what Dong Jianming wanted to hear. He immediately seized on the opportunity and pressed further, his tone clearly questioning: "Since you know it's still losing money, what makes you think such a company has a bright future? Young man, are you so confident that you can guarantee this company won't collapse? Investing isn't something you can do based on feelings."

Despite the slightly provocative question, Hu Jiangshan remained calm and replied, "President Dong, please rest assured. Based on the information and analysis I have, I believe that Yute Technology will not face the kind of risk of financial collapse you mentioned."

Dong Jianming's expression froze. He hadn't expected Hu Jiangshan to draw such a decisive and resolute conclusion, without even the slightest hesitation or reservation. This was completely unlike the answer given by an outsider or a beginner. Tian Ziyi, sitting beside him, was now completely intrigued. Leaning forward slightly, she interjected with interest, "Mr. Hu, why are you so certain that Yute Technology has no risk of failure? There must be some convincing reason, right? It can't just be a guess, can it?"

"Of course there are reasons."

Hu Jiangshan nodded, his gaze sweeping over everyone present, and began to articulate his views clearly and logically: "First of all, as I just mentioned, Yute Technology is a leading company in the mainland's power battery field. In this field, the main competitors that can currently form substantial competition with it are a few companies such as Biyangdi."

"Moreover, it is worth noting that Yute Technology and Biyandi have different focuses and differences in their technical routes. If we focus on the ternary lithium battery technology route, Yute Technology's technological advantages and production capacity make it almost the first choice, or even the only choice, for relevant domestic car companies at present."

Hu Jiangshan paused slightly at this point, seemingly giving everyone time to process the information, before continuing: "Secondly, and more importantly, as you all know, the mainland is currently making every effort to develop the new energy industry, which has risen to the level of a national strategic direction. The government invests a tremendous amount of policy support and resources in this area every year."

Upon hearing this, most of the directors present nodded in agreement.

This is indeed a consensus. In fact, many astute investors in Hong Kong have long turned their attention to the booming new energy industry in mainland China, and leading companies in the sector are indeed in high demand.

"However," Hu Jiangshan changed the subject, pointing out the key point, "everyone here is a veteran in the investment world, with rich experience. You all know that the more high-profile and fiercely competitive a field is, the more intense the competition becomes, even to the point of being a red ocean, and the greater the potential risks. It's not a matter of investing in just any company and making a profit without risk. In fact, the companies that can ultimately break through the fierce competition, persevere to the end, and successfully go public to exit their capital investments are extremely rare."

Upon hearing this, Dong Jianming frowned and couldn't help but interject to express his concerns: "Mr. Hu, we understand all the big principles you're talking about, but the problem is that even if Yute Technology is currently the largest leading enterprise, it cannot guarantee that it will always be the first choice for support from the mainland government. If, at a certain stage of development, its technology or management encounters problems, the government may very well switch to supporting other similar, more promising enterprises. We cannot ignore this risk."

"That's impossible." Hu Jiangshan categorically denied Dong Jianming's hypothesis almost without hesitation, his tone so resolute that it choked Dong Jianming back what he was about to say.

Hu Jiangshan looked at Dong Jianming and explained in a calm but authoritative tone, "Mr. Dong, you may have some misunderstandings about how official investment institutions and industrial policies operate in mainland China. Once they have identified the strategic industries and core enterprises they want to support, they will not easily change their targets."

"In fact, before they decided to make a large-scale investment in a company, they had already organized a top-notch team of experts to conduct an extremely detailed, even rigorous, comprehensive evaluation of the company, especially assessing its core strengths such as technological accumulation, R&D capabilities, management team, and supply chain integration capabilities."

"Once it is confirmed that a company meets the requirements of national strategic development, the government will demonstrate great strategic resolve and will unswervingly invest resources to support it. When problems are encountered in the development process, they will not think of giving up, but will try their best to help the company solve problems and overcome difficulties together, until the company is successfully brought from the loss-making investment period into a healthy and profitable development fast track."

As Dong Jianming listened to Hu Jiangshan's analysis, his brows furrowed even more. He opened his mouth as if to refute, but couldn't find any particularly strong arguments.

According to some non-public information he had learned, Yute Technology did indeed receive large-scale, strategic investment from several national-level investment institutions in mainland China.

This in itself is the most powerful proof of its industry status and the level of importance it receives.

Hu Jiangshan's statement about the government's unwavering support is not unfounded.

However, Tung Kin-ming still couldn't fully agree with this optimistic assessment, and he insisted that there were still uncertainties in the market.

"Mr. Hu, aren't you being too optimistic? The business world is constantly changing. If Yute Technology cannot make a breakthrough in technology commercialization or market share in the next year or two and cannot turn a profit, I think even the official capital in mainland China has limited patience. It may adjust its strategy or even give up on it. Capital always seeks returns and will not wait indefinitely."

Despite Dong Jianming's renewed questioning, Hu Jiangshan remained confident. He shook his head and said with certainty, "Mr. Dong, you may have misjudged this point. Based on my analysis and judgment, Yute Technology is fully capable of turning a profit within the next year or two; it cannot remain in a loss-making state indefinitely."

Upon hearing this, everyone's faces showed even more curiosity and inquiry, and they all looked at Hu Jiangshan.

They simply couldn't understand why Hu Jiangshan had such strong, almost blind, confidence in the future of Yute Technology.

At this moment, Hu Wenxin, who had been listening quietly, spoke up: "Ashan, could you explain the specific basis for Yute Technology's turnaround to profitability in detail? It seems that everyone is very interested in this judgment and wants to hear your analysis."

Hu Jiangshan nodded to his father, indicating that he understood.

He gathered his thoughts and said, "Okay, in fact, the current losses of Yute Technology are mainly due to huge investments in two areas."

"The first aspect, and the most important point, is the high investment in technological research and development. Currently, Yute Technology is in a critical period of rapid technological iteration and upgrading, and needs to invest huge sums of money every year in the research and development of next-generation power batteries."

"However, as far as I know, their latest generation of power battery production lines, which have made significant breakthroughs in energy density and cost control, has completed technical breakthroughs and production line debugging and is about to enter the mass production stage. This means that the peak stage of the most expensive R&D investment is about to pass, and the return period brought about by economies of scale will follow."

Tian Ziyi listened intently, and immediately grasped the key point, asking, "Oh? What's the other reason for the loss?"

"Another important reason," Hu Jiangshan continued, "is the limitation of the price of key upstream raw materials, the most important of which is the price of lithium ore. The core cost of power batteries is largely determined by the price of metal materials such as lithium."

"Oh?"

Upon hearing this, everyone felt a slight jolt in their hearts.

(End of this chapter)