What's wrong with me being a rich man?

Chapter 624 Out of Control (4k)

Xu Xin was not physically present in Hong Kong, but before receiving Li Song's text message, she had already pieced together a picture of the Silicon Carbon Group's IPO prospectus launch event online.

When she saw someone using text to describe how President Yu began analyzing a listed company live, she had only one feeling: the nickname was indeed well-deserved.

This is definitely not a prospectus release conference; it's a meeting of the king of short sellers!

Xu Xin is naturally extremely familiar with the financial reports of listed companies. While watching the progress of the meeting, she was also reading the financial reports and related information of Steinhoff Company. She is certainly not an unknown person.

As a retailer specializing in furniture and home furnishings, it operates in 32 countries and employs over 100,000 people. It is the second largest furniture retailer in the world after the well-known IKEA, and its current market value is 18 billion euros, which is equivalent to more than 100 billion yuan in Chinese yuan.

Why "again"?
When this thought crossed Xu Xin's mind, she could only sigh silently.

Steinhoff was no nobody, but he certainly didn't kill nobodys when crossing the mountain.

After the short-selling king finished marking the anomalies he found in a short period of time, another well-known short seller jumped out and released a short-selling report. Xu Xin looked at the content sent by her husband and fell into deep thought and hesitation.

Steinhoff probably has serious problems, but...

Xu Xin replied to Li Song: "No wonder President Yu insisted on going to Hong Kong. It turns out there was such a public short-selling performance that required his presence. As expected of President Yu, he is indeed unpredictable, and he came to conduct this pre-arranged short-selling."

Li Song tapped his hands repeatedly and replied instantly, "It doesn't seem like it! It doesn't seem like it was prepared in advance! You don't know, you weren't there, you don't know!"

Xu Xin: "I think he really has some kind of mind-controlling drug. It seems that these big short sellers are in cahoots. I can only say that this performance was quite good."

Upon seeing this, and sensing the atmosphere, Li Song mustered his courage and replied, "I'm too lazy to talk to you."

Xu Xin was stunned.

After typing that line, Li Song still felt a little guilty. He reached out and took a picture of the scene. Some people were whispering and discussing, some were clapping and cheering, and some, like him, were taking pictures and recording. Meanwhile, President Yu was sitting on the stage, looking at the content on the screen.

He added, "I've said it before: the king of short sellers after the exposure is the real king of short sellers. Whether Mr. Yu likes it or not, he has more resources and more influence to sway consensus, until... the king of short sellers changes hands."

Yu Xing didn't call himself the King of Short Sellers; he earned it through genuine short selling. If this title changes hands, it's because he made a mistake by short selling at the peak.

However, as long as Yu Xing does not make any mistakes when crossing the mountain peak, he can drive a brief consensus among many institutions and investors regarding a listed company.

Qingtian Software proved this, Tieniu Group's Jinma Shares proved this, and Steinhoff will soon prove it too!
The consensus reached by the public can quickly influence stock price fluctuations, creating opportunities for profit-taking. This is also why regulatory agencies focus on scrutinizing and regulating such short sellers.

Looking at President Yu on the stage, Li Song felt his heart surge with emotion; this was the spirit of short sellers.

Seeing that President Yu was signaling for quiet, he tried to calm himself down, but then his phone vibrated and he saw a message from his wife that read, "You're too lazy to tell me, aren't you?" His emotions surged again.

“Even now, we cannot rashly draw conclusions about Steinhoff.” Seeing the room quiet down, Yu Xing reiterated his position: “I still maintain that short selling is neither mysterious nor complicated. If a company is too perfect, so perfect that it goes against market trends and industry common sense, then we need to be careful.”

"Over Peak is a research firm that takes the fundamental analysis of companies to the extreme."

"My attitude toward companies has always been not to personify them. When problems arise, we should point them out. Short selling is a part of the market ecosystem."

"Well, please focus your attention on our prospectus for now. We'll discuss the summit in a separate media segment later."

Yu Xing outlined the arrangements for the subsequent media session, and many reporters who were already itching to speak up held back again, including the Japanese reporter who had previously wanted to be bold and was now considering stepping forward to raise questions later.

Because of the live performance, Hong Kong reporters showed more respect, and this respect turned into questioning of the Silicon Carbon Group's IPO.

“Mr. Yu, I am Xia Ming from Oriental Daily.” Xia Ming, a reporter in the front row, was called upon and, after identifying herself, asked a crucial question about qualifications: “I noticed that Silicon Carbon Group is applying for listing on the Hong Kong Stock Exchange’s Growth Enterprise Market (GEM). However, as far as I know, the revenue figures submitted by Silicon Carbon Group for the two fiscal years are quite disjointed. In 2014, the main revenue came from two patent licensing deals worth 3000 million RMB, one to Linggang Company and the other to Zhibo Company. But Silicon Carbon Group is a shareholder of both of these companies. Is this kind of related-party transaction appropriate for Silicon Carbon Group’s IPO application?”

The well-known Hong Kong media outlet Oriental Daily News pointed out a revenue issue that is bound to be questioned for Silicon Carbon Group: its main business of whole vehicle sales has not been operating for long enough, so it can only make up for it with the patent licensing fees from the previous year.

“Good question.” Yu Xingxian praised, then answered, “First of all, the patent licensing fee in 2014 was not a random source of revenue. We originally planned to continue licensing new patents in 2015, but it was postponed due to the application process and the financing of Linggang Company. Therefore, for Silicon Carbon Group, patent licensing is also a good source of revenue. More importantly, it actually brought about resource exchange and cooperation.”

“Carbon Silicon did invest in a lidar company like Linggang, but it operates independently and also received investment from Huawei last year.”

“The development of new energy vehicles is different from that of traditional gasoline vehicles. Carbon Silicon Group not only produces and sells, but also needs to increase its R&D investment. In other words, because of our integrated strategy of R&D + production + sales, lidar and millimeter-wave radar will play a strong role in future intelligent driving. The patent authorization in 2014 and the vehicle sales in 2015 are not differences in business model, and the relevant transactions fully comply with the regulations of the Hong Kong Stock Exchange.”

Yu Xing gave a comprehensive answer, which can be regarded as a rehearsal for the exchange with the Hong Kong Stock Exchange.

Listing eligibility is a major point of contention and cannot be taken lightly.

Xia Ming politely replied, "Thank you for your answer, Mr. Yu. Yes, I support Silicon Carbon Group's listing in Hong Kong, but it would be even better if it were a peak listing."

Laughter and even whistles could be heard at the scene.

“Mr. Yu, hello, I’m Cui Jinghe from Phoenix TV.” Another reporter, Cui Jinghe, stood up and asked, “Carbon Silicon Group just launched a new car last year, and the results were indeed impressive, but why did you rush to IPO in less than a year? According to Carbon Silicon Group’s announcement, you were going to list on Nasdaq last year. Since you thought you could overcome the challenge, why did you give up on going to the US?”

The question was a bit pointed, and the fact that the trip to the US was canceled as soon as the mountain peak was exposed suggests a guilty conscience.

“The Silicon Carbon Group chose this stage to rush to go public in order to better accelerate development in the early stage of the new energy market boom,” Yu Xing replied. “Coming to Hong Kong is the result of comprehensive consideration. There are indeed factors related to the peak, and the issue of the peak will be given a fair result by the law. However, an important consideration for us to choose to list in Hong Kong is that we can more deeply feel the potential for our development in the Chinese market here.”

The short seller king's answer sounded nonchalant.

Cui Jinghe pressed further, "Mr. Yu, do you think the Hong Kong Stock Exchange will be lenient towards your short-selling status? Or is there political interference involved?"

“I just did a public financial report analysis of Steinhoff, and one important reason is that I think such openness is a good way to break the filter.” Yu Xing compared it with the previous case, “The more mysterious and secretive it is, the more people will think that Guoshanfeng is insider information and manipulating the market, and the more imaginations will arise. I have confidence in the Hong Kong Stock Exchange’s system and in the compliance of Silicon Carbon Group. The truth is actually that simple.”

Choi Kyung-hwa was not satisfied with this answer, but it was certainly more respectable.

There are rumors circulating that Silicon Carbon Group has received additional protection for its Hong Kong listing.

"Mr. Yu, Silicon Carbon Group sold 8.25 vehicles last year, but that was the result of policy subsidies. If Silicon Carbon Group successfully lists in Hong Kong this time, wouldn't losing the subsidies cause huge losses to Hong Kong investors?" a reporter in the middle questioned.

"We have plenty of orders for silicon carbon. To date, we have received 3.5 large orders, which covers the Q1 production capacity of our Lingang Phase I factory," Yu Xing said seriously. "Subsidies are a normal phenomenon in industrial development. Tesla in the United States also receives a lot of subsidies. As our sales increase, our brand awareness and trust will gradually increase, which will inevitably lead to more sales. I believe that investors who choose Silicon Carbon Group this time will reap considerable returns in a few years."

Standing nearby, Cui Zhiyu, the vice president of the Silicon Carbon Group, was quite disappointed. His boss had placed a large order of 3.5 units, but there wasn't much reaction from the audience. They really don't know their stuff!
However, he then thought that the industry insiders in mainland China would soon know the information, and he could hear the surprise of his peers when he returned.

Regarding the questions about the current situation and future prospects of the Silicon Carbon Group, the latter half of the response was mainly given by Yu Xing himself.

As the founder of Silicon Carbon Group, Yu Xing has devoted himself to this aspect for the past few years, which makes him seem very capable. In terms of size and prospects, Silicon Carbon Group is capable of being listed on the main board. It is currently listed on the Growth Enterprise Market. If it weren't for its empty shell status, it would have gone very smoothly.

As questions were answered one by one, the atmosphere gradually picked up again, with everyone still more concerned about the short sellers.

Yu Xing asked twice, but seeing that no reporter wanted to ask about the prospectus of the Silicon Carbon Group, he could only look left and right, and with a slight sense of helplessness, he began the final chapter of this press conference.

It's almost midnight, and the press conference has already gone overtime since 9:30.

Yu Xing glanced at the time and said, "It's already noon, so we'll have to respond to the three questions about the summit. In fact, as I said before, the law will give a fair answer."

He ignored the dissatisfaction in the audience and randomly pointed to a reporter who had not asked a question before.

The reporter was visibly agitated: "Mr. Yu, I'd like to ask you, why did you decide to get involved in short selling?"

Yu Xing did not expect to hear such a question.

The answer is simple, of course: for the money.

He pondered for a moment and said, "Many people may know that I have a medical background. The human body needs a healthy system to survive. Short selling is like a scalpel in the capital market for me. Going over the mountain peak to issue a research report is like making an incision on a stubborn disease."

Yu Xing casually added, "I don't really like the title 'King of Short Sellers.' I think it would be nice to be called 'Doctor.'"

He believes that such a connection can clarify the location of the mountain peak, making it less dangerous and simply a normal feedback mechanism.

Li Song was thinking that President Yu's first short selling was during his company's research period. While he was feeling complicated, he suddenly heard the voice next to him and couldn't help but laugh out loud.

"Butcher! What kind of doctor is he? The way he's holding a scalpel is clearly that of a butcher!"

The room was filled with reporters raising their hands to ask questions, and some even threw out their questions without regard for order.

Yu Xing ignored the questions from the air and pointed at a foreign reporter.

Just then, a reporter from Japan suddenly rushed onto the stage, shouting, "Yu Xing, you should feel ashamed of the company you harmed in Japan! You ruined so many jobs! You forced people to commit seppuku! You are a demon!"

Yu Xing has been known by two names in Japanese media: the Sorrowful Immortal and the Sorrowful Demon King.

The reporter who suddenly jumped up was quickly stopped by the security guards.

Seeing the man's agitation, Yu Xing asked slowly, "Which Japanese company are you talking about that has been harmed? There have been too many short sellers, I can't remember."

The reporter, who had been restrained, uttered a series of words in Japanese.

Yu Xing can now speak English fluently, but he has never studied Japanese, so he can only respond to the camera by holding up his fingers and counting: "I really can't remember, it might be that Mitsubishi Motors falsified the engine performance."

"It could be that Kobe Steel falsified its materials, or, as I saw with Toray Industries in Japan before, they falsified the strength data of their polyester filaments, but that wasn't exposed by Guo Shanfeng."

"Or is it Toshiba's financial fraud? That was indeed Guo Shanfeng's judgment based on fundamental research."

"Takata's airbags were faked? Mitsubishi Materials altered the cross-sectional properties?"

Yu Xing shrugged and said innocently, "Like Steinhoff, many of these problems can't be attributed to me. The real culprits behind those companies' problems are themselves."

All attention was focused on Mr. Yu's answer and the Japanese reporter who was being held down, but two Japanese audience members became increasingly angry as they listened and suddenly rushed onto the stage.

The security guards quickly caught up with one of them, but the last one stubbornly broke free and rushed straight at Yu Xing, who had already stood up on the stage.

This wasn't the first time Yu Xing had encountered such an unexpected turn of events. Just as he was thinking about the King of Qin circling the pillar, he saw Zhang Yangxu suddenly push the bewildered Cui Zhiyu forward, which conveniently stopped the man who wanted to start a full-blown fight.

The two collided head-on, and seeing that the attack on Yu Xing was hopeless, the Japanese man punched Cui Zhiyu in the face.

The security guards quickly and roughly subdued the man, but then more people kept emerging from the crowd, some with microphones, some with cell phones, and some with anger.

The situation spiraled out of control, and the remaining security guards formed a human wall to isolate the area.

As Yu Xing left, he didn't forget to hold the microphone and announce, "Today's press conference is over. There will be a luncheon at noon. Thank you everyone."

Reporters tried their best to throw out questions from outside the human wall.

"Mr. Yu, Mr. Yu, is there anything else you would like to say to the public?"

"Mr. Yu, will you continue shorting after the peak?"

Do you think you will be found guilty?

Yu Xing walked to the door, his gaze passing through the wall of people and directly hitting the media cameras.

He gave his final response to the meeting with the "King of Short Sellers": "I have nothing more to say. Please give my regards to those fraudulent companies."

Yu Xinggang turned around, then turned back and changed his mind: "Never mind, I'll greet them myself."

The king of short sellers waved his hand and disappeared from the camera's view.

A reporter filmed Yu Xing's final response and felt that his eyes held an indescribable calmness, yet also seemed to carry a natural anger, half like the sea and half like fire.

(End of this chapter)