What's wrong with me being a rich man?

Chapter 627 Lobbying (4k)

LeEco has not only recently faced scrutiny due to Yu Xing's evaluation of its car manufacturing efforts.

In 2015, many people noticed Jia Yueting's excessive share pledging and judged that LeEco's capital chain was under great pressure. The market value also fluctuated from a peak of 150 billion in March to 110 billion, and finally fell to around 90 billion by the end of the year.

During this period, there were actions such as Jia Yueting cashing out at a high price and then promising to lend money to the company without interest to boost the stock price, the impact of mobile phone sales on market value rebound, and the non-listed company LeEco Mobile launching financing to further strengthen the ecosystem concept.

Jia Yueting is trying his best to keep the story of "LeEco ecosystem" going. As a capital operator, he is also well aware of the huge risks brought about by the broken capital chain. To this end, he has instigated Ying Jianren and others who support Tie Niu to launch a public opinion counterattack, and made preparations for a temporary suspension of trading.

LeEco faces the risk of falling into a death spiral due to its stock price decline, so the possibility of further stock price decline should be eliminated directly!
This decision was made by Jia Yueting after witnessing the collapse of Zotye Group, a subsidiary of Tieniu Group.

As soon as Yu Xing publicly expresses his pessimism about LeEco, the company immediately suspends trading to plan a major asset restructuring, and physically isolates itself for several months. This way, no matter what criticism it faces, at least it won't collapse at lightning speed.

Just like Steinhoff, who just defeated another company at lightning speed!
LeEco's stock price plummeted in a single day!
However, Sun Hongbin of Sunac dissuaded him from this plan.

In order to mitigate the risk of a stock price decline, Jia Yueting has recently been seeking support from external cooperation. He and Sun Hongbin originally planned to sell properties to raise money and dispose of LeEco's World Trade Center project under the leadership of He Jingang, chairman of Gezhouba Real Estate.

Unexpectedly, Sun Hongbin showed even more interest in LeEco, which led Jia Yueting to negotiate a deal.

At its peak, LeEco's market capitalization exceeded Vanke's by 100 billion yuan, making it the top stock on the ChiNext board. Moreover, the concept of "ecosystem" was popular, so the whole company didn't seem so hopeless.

Sun Hongbin had his own judgment and desires, and he also noticed Jia Yueting's occasional anxieties, and then understood his fear of the short-seller king's bearish view on LeEco's car manufacturing.

He was quite dismissive of this.

It was one thing before, but now that we're going to cooperate with Sunac, this powerful alliance means we have nothing to fear from the pressure of the short sellers.

Moreover, in the final analysis, LeEco Auto is not a listed business, and Yu Xing's Lingang base has no conflict of interest with LeEco, so it's not reasonable for him to manipulate LeEco at this critical moment.

“Sigh, that should be the case, but look at Mr. Yu’s reputation in the stock market now, the logic is in his hands.” Jia Yueting said worriedly, “I don’t know where I offended him, but he is not optimistic about my car manufacturing, nor about LeEco.”

"The proportion of my pledged shares is indeed not low. I'm not afraid of the worst-case scenario."

"If he says one thing, I'll fall to my death; even if he's wrong, I'm still doomed."

Sun Hongbin felt that there was some truth to this, but he still insisted on not suspending LeEco's trading.

Even with the latest alarming reports from Hong Kong media, he still stated in a phone call with Jia Yueting that a temporary suspension of trading for one week would suffice for the cooperation plan with Sunac, and that the actual completion of the cooperation would be enough to alleviate the crisis.

Sunac is listed in Hong Kong. The cooperation plan involves acquiring 7.8% of LeEco's shares for 60 billion yuan and then acquiring 18% of LeEco Pictures' shares for 12.6 billion yuan. This would make Sunac the second largest shareholder of LeEco's listed subsidiary, LeEco, and also an important shareholder of LeEco Pictures.

This funding is enough to alleviate LeEco's cash flow crisis.

The stock was temporarily suspended for a week to avoid being unfairly sold off, and then sufficient positive news was provided to support the stock price in the future.

Since Sun Hongbin wants to cooperate, he is willing to provide more support.

He also said on the phone: "I'm flying to Hong Kong right now. I'll meet with Mr. Yu there tomorrow. We can discuss anything. Even if I offend him in any way, I don't think he's a petty person."

Even after announcing the cooperation plan with Sunac, Jia Yueting remained highly nervous. Upon hearing this, he held onto a sliver of hope, wanting to turn hostility into friendship, although he didn't know exactly how the hostility would be resolved.

Fortunately, just after LeEco announced its cooperation with Sunac and applied for a temporary suspension of trading, a denial came from Hong Kong.

It wasn't a smile of tacit agreement at all; it was just a reaction of someone not wanting to answer. It's just the sensationalist writing style of unscrupulous tabloids.

"Many people don't understand this. LeEco Auto is just a non-listed business within the LeEco ecosystem, and I can't talk about it more right now."

Yu Xing's original words were published by the media who were also interviewing him at the scene.

Jia Yueting stared at the words with lingering fear. Although the other party did not comment on them in front of the media and clearly distinguished between listed and unlisted companies, there was still a hidden sense of menace in that "it is inconvenient to talk about it" statement.

When Sun Hongbin saw the original words that had been clarified, he felt that many public opinions were demonizing Yu Xing, and that his words clearly showed that he did not want to cause trouble.

He really didn't understand why Brother Jia had that kind of fear.

The following day, just as Sun Hongbin was about to depart for Hong Kong, he saw that Brother Jia was arguing with netizens on Baixiaosheng.

The root cause lies in the fact that Hong Kong tabloids fabricated news that Yu Xing was pessimistic about LeEco, and then LeEco temporarily suspended trading under the pretext of cooperating with Sunac. Many netizens believed that this was a sign of guilt and a last-minute retreat.

—Mr. Jia, if you're a tough guy, don't suspend trading, just go straight for the short sellers!

— I feel that LeEco still has some serious problems. Although Mr. Yu said that it was a non-listed business, where did the money for making cars come from?

Jia Yueting has been paying close attention to the public opinion on the Baixiaosheng Forum recently. He was just a little angry when he saw these comments, but he hasn't taken any action yet. What really made him register an account was another kind of ridicule.

One user posted: "I found an old statement by Mr. Yu where he said he quite liked watching 'Empresses in the Palace.' 'Empresses in the Palace' is a copyrighted drama by LeEco. You see, this shows that Mr. Yu was already paying attention to LeEco a long time ago. Therefore, there are clues to why Mr. Yu is pessimistic about LeEco. I support Mr. Yu in publicly expressing his views on LeEco!"

This statement was rather nonsensical, but it was precisely this nonsensicalness that thoroughly enraged Jia Yueting, prompting him to register a real-name account and rush in to comment.

Jia Yueting: "Can't you all just stay home and stop trying to sow discord online?"

Bai Xiaosheng's real-name registration is viewable. When the person in question suddenly appeared, it immediately attracted a crowd.

The poster replied directly: "I'm not trying to sow discord, Mr. Jia, please understand."

Jia Yueting: "I'll give you a piece of my mind."

The fact that the person in question seemed to have lost their composure only made the already skeptical users question the financial reports even more. Some even repeatedly tagged the account and said, "Regardless of what Mr. Yu says, Mr. Jia, can you explain the problems in LeEco's past financial reports? I don't mind debating with you."

Jia Yueting: "I'll argue with you, you son of a bitch."

The controversy that attracted so much attention was brought to a halt when several users banned and locked their posts, but it quickly spread again.

When Sun Hongbin arrived in Hong Kong and was on his way to the Ritz-Carlton Hotel, he saw such an uncivilized act and could only shake his head in silence.

That's not all.

Before setting off, he had already made an appointment with General Manager Yu through an intermediary. Now, looking at the time and considering the reliable rumors and actual achievements of the other party, he also felt that he could offer unique value on this trip.

The carbon silicon group is going to list on the Hong Kong Stock Exchange, but there are some questions about the process. Sunac China Fortune is a listed company here, and Sun Hongbin has a lot of connections, so he can still be used.

At 9 PM, Sun Hongbin arrived at the Ritz-Carlton Hotel. He had just stepped out of the elevator and reached Mr. Yu's floor when the doorbell opened. Yu Xing didn't want to see Sun Hongbin, but since the latter had arranged for Xiong Xiaoge and Xu Xin to meet him, he agreed. Having decided to meet, he naturally had to observe basic courtesy.

However, just as he met Sun Hongbin, he caught a glimpse of a dark figure rushing towards him from the side.

Yu Xing was already familiar with the process; no matter what the situation was, he would first shrink back into his room.

Sun Hongbin, not knowing what his emotions were, instinctively reached out to stop the old man who was rushing towards him.

Without saying a word, the old man clenched his fist and punched Sun Hongbin in the face as soon as he was stopped.

Sun Hongbin was completely stunned. He was knocked to the ground by several punches, and then the incredibly strong old man straddled him, punching him repeatedly.

He could only cover his face and struggle to break free.

The old man who attacked was brought under control in about thirty seconds.

Completely unaware of what was happening, Sun Hongbin was helped up.

When the old man saw Yu Xing reappear, he shouted angrily, "Yu Xing! Yu Xing!!"

Sun Hongbin looked at the frowning President Yu and asked blankly, "Oh, President Yu, who is he?"

Yu Xing was equally bewildered and asked, "Who are you?"

The old man grew even angrier: "You don't know me! Look at my face! Don't you recognize me?!"

Yu Xing looked him over carefully, then shook his head: "I don't know, I don't recognize you. Who are you?"

The old man struggled to break free of the control but failed. He gritted his teeth and said, "I am Chen Deyuan! Chen Deyuan! Sino-Forest, Chen Deyuan of Sino-Forest!"

Yu Xing finally realized that this was the chairman of Sino-Forest, a Canadian listed company.

He studied it for a few more seconds and said, "So it's President Chen."

Chen Deyuan was already over sixty years old. He struggled a couple more times but still couldn't move. He could only keep a straight face and say, "You recognize me?! You've done such a good thing to Sino-Forest!"

“I should be able to recognize him, but Mr. Chen looks haggard.” Yu Xing gave his reason, then nodded and said, “Just mention Sino-Forest directly. I remember it’s a $50 billion company that fabricated the size of its forest assets, falsified sales transactions and revenue data, had logistics capabilities that didn’t match its business, and had a very inconsistent business model. Mr. Chen, I remember you, I remember your Sino-Forest.”

The haggard Chen Deyuan, upon seeing his enemy, was now full of energy. Hearing the list of fraudulent acts, he felt no shame, but instead cursed incessantly.

At this time, the hotel staff also arrived.

Yu Xing waved his hand to stop the other party from taking the person away. He wanted to finish what he had been saying when he was interrupted by the insults, so he asked with concern, "President Chen, I remember that the Canadian court ordered you to pay one or two billion US dollars in damages. Is that true?"

Chen Deyuan's eyes widened in anger.

The hotel manager quickly whispered, "Mr. Yu, Mr. Yu, please don't say anything more. He's getting old; what if something happens to him..."

Sun Hongbin, who was covering his face, silently suppressed his opinion that "President Yu is not stingy."

The former victim was led towards the elevator by the crowd, but the old man struggled again.

Only then did Yu Xing have time to shake hands with Sun Hongbin, who had been inexplicably beaten.

However, the two had only exchanged a few pleasantries.

Chen Deyuan, who was struggling, shouted, "He's in cahoots with LeEco, they're all fraudulent companies! Yu, why are you wasting your breath talking to him!"

The old man's voice, strained and fading into the distance, cried out: "Short him! Short him! Short him!!"

Chen Deyuan is the victim, but he belongs to the group of people who have paid the most attention to information about the mountain peak. The latest "LeEco mystery" in mainland China is also something that is being closely watched. Only after hearing the greetings do you realize who has been punched.

He was being shorted himself, and he didn't want to see other fraudulent companies doing well!
Upon hearing this, Yu Xing and Sun Hongbin exchanged bewildered glances.

"Mr. Sun, don't mind it. I've heard a lot of noise in Hong Kong these past few days. Even the cars in the garage have been plastered with slogans. Please come in," Yu Xing greeted Sun Hongbin.

Sun Hongbin smiled awkwardly: "These people are really strange. Well, it's good that you, President Yu, can distinguish right from wrong. I saw what you said in the interview. LeEco's car manufacturing is a non-listed business. The listed company LeEco is doing just fine."

Secretary Zhang Yangxu familiarly brought out some liniment, which was leftover from Cui Zhiyu's last visit.

Sun Hongbin applied the medicine and felt a burning sensation.

"Whether the listed company is doing well or not is something we need to investigate carefully," Yu Xing said with a smile.

Upon hearing this, Sun Hongbin suddenly felt the burning sensation on his face intensify.

He thanked Zhang Yangxu and pondered for a moment before saying, "President Yu, to be honest, since Sunac and LeEco have reached a cooperation agreement, I've been working with LeEco in Beijing recently."

Sun Hongbin observed President Yu and saw that he didn't have any special expression; he simply picked up his cup and drank tea.

So he continued, "We at Sunac are building houses. Building houses has been around for thousands of years. We don't have much of an internet background. When we judged LeEco, the first thing we looked at was whether it was doing something with potential, and the second thing was whether the people were capable. I think Jia Yueting is a pretty down-to-earth person."

Yu Xing chuckled: "Really?"

“Yes, Mr. Yu,” Sun Hongbin said affirmatively. “I can say that Lao Jia is a very capable person. If I were him, I wouldn’t be able to do such a big thing with so little money. Moreover, I only started cooperating with LeEco after I fully understood its financial situation.”

He then emphasized, "I probably understand it better than Lao Jia himself; I completely understand it."

Yu Xing looked at the General Manager Sun in front of him. Hmm, he completely understood Sun Hongbin, and was more like Jia Yueting.

He held his teacup and asked, "Mr. Sun, I don't understand why you're telling me all this?"

Sun Hongbin said with a smile, "President Jia thinks you may have a misunderstanding about LeEco. I think President Yu is a person who does great things, and there is no need for him to keep an eye on LeEco. LeEco is doing quite well, and it is not worth wasting energy on it."

He added, "It just so happens that I had arranged to have dinner with some friends from the Hong Kong Stock Exchange during this trip. I'll organize a get-together tomorrow so we can all become friends."

Yu Xing put down his teacup and replied indifferently, "Hong Kong reporters and paparazzi are all watching me, Mr. Sun, I don't think it's necessary."

(End of this chapter)