There was no way Lu Haifeng would let Xiao Ma buy into China Star Technologies (CS). But he also couldn't afford to offend him.
After all, Penguin Company had been a massive help in publicizing the Hongmeng S2 launch. And right now, Xiao Ma had no apparent reason to be refused.
Haifeng sat in silence for a moment, thinking. Then he smiled slightly and asked:
"President Ma, have you ever considered… gaming phones?"
Xiao Ma blinked. That was not the response he'd been expecting.
"Gaming phones?" he echoed, puzzled.
The term wasn't complicated. Phones explicitly built for gaming.
But in 2014, the category barely existed. Dedicated handhelds like the PSP still dominated the market, and mobile games were lightweight distractions at best.
"I don't see them selling," Xiao Ma said frankly. "The mobile ecosystem's just not there yet."
His tone was dismissive. And honestly, he wasn't wrong.
At this point, the market had no big gaming phone players. Only a few names would eventually rise—Black Shark, Red Magic, and later iQOO (which would evolve away from the label).
Haifeng nodded. He understood the skepticism.
But then he met Xiao Ma's gaze, serious now.
"I believe the mobile gaming market will explode. And when it does, phones with gaming power will dominate attention."
Xiao Ma didn't answer right away.
He could tell Haifeng wasn't trying to pitch specs—he was talking long-term vision.
Still, he was here to buy shares, not discuss some experimental niche product.
"President Lu," Xiao Ma said firmly, "let's set gaming phones aside for now.
I came here to discuss your company's equity."
CS had become one of the most promising players in China's tech space. From Xiao Ma's point of view, they were a perfect fit for Tencent's broader mobile ecosystem.
And he wasn't just curious—he was prepared to spend big to get in.
Haifeng leaned back.
"To be honest, I really can't sell shares. But I have another proposal—something Penguin would be perfect for."
Xiao Ma frowned slightly. He didn't like being stonewalled, especially when he came in good faith. But he didn't press—CS had leverage, and he knew it.
Haifeng continued:
"I'm planning to launch a new company, specifically focused on gaming phones. A dedicated brand—first-class from day one."
"And I think Penguin is the ideal partner."
It was a pivot. A deflection. But a smart one.
Instead of turning Xiao Ma down outright, Haifeng offered him a seat at the table—just not this table.
Xiao Ma stared at him.
"You're serious?"
"Dead serious."
He didn't respond immediately. The idea was wild. No one had cracked gaming phones yet. It was a market without precedent, especially in China.
But Haifeng was already painting the picture:
"There's a vacuum in the market. No one's claiming it yet. Whoever moves first, claims the advantage—and the authority to define it."
"And let's be honest: Penguin already rules PC gaming. Don't you want to be the king of mobile too?"
The logic was sound. Tencent had the games. CS had the hardware. Together, they could build the category from scratch.
Still, Xiao Ma hesitated.
It sounded good, but where were the profits? Starting a phone company meant millions in upfront costs—R&D, factories, logistics.
And mobile phones were a war zone. How much could a "gaming phone" really sell for?
Could it break even, let alone make money?
He looked Haifeng dead in the eye.
"Alright then—when do you think this gaming phone company will become profitable?"
Haifeng didn't flinch.
"Before 2016."
Xiao Ma didn't respond right away.
He leaned back in his seat, eyes narrowing.
It wasn't a yes. But it wasn't a no either.
He understood the stakes. In his vision of the future, mobile phones would be the dominant gateway to the Internet, and Tencent needed to be part of that.
Even if the returns weren't immediate, the strategic value was undeniable.
And he was starting to believe Haifeng could pull this off.