He Zhengcheng had also seen this thin, elderly man in his previous life. He was still vigorously promoting localization in various events across Daxia Country.
It was a pity that during that meeting, he was just a nobody, and the two of them didn't get to speak. This time, it seemed to be the same; his only notable achievement was investing in eBay.
The most serious dispute between Liu Chuanzhi and Li Guangnan was lending money to several Hong Kong businessmen with whom Lenovo had long-term cooperation, allowing them to use Lenovo's funds to buy Lenovo's shares.
This operation seems difficult to understand at first glance, as there appears to be related party transactions. However, only by delving into the background of that time can one perhaps understand it. This incident occurred when Hong Kong Lenovo (not the current Lenovo Group) went public in February 1994. Based on Lenovo's initial total share capital of 675 million shares and an issue price of 1.33 hong kong dollars, its market value was less than 900 million hong kong dollars. At this time, Lenovo was not yet the market leader in Daxia. And let's not forget, Daxia Country's stock market only started in 1992... It wasn't until 1997, when BJ Lenovo's assets were injected into the listed company Hong Kong Lenovo, that the current Lenovo Group was formed. By early 1999, its market value was only 5 billion hong kong dollars, or over 600 million US dollars. It wasn't considered a large company; it wasn't the large tech enterprise that acquired IBM's PC business ten years later.
Alright, let's not even talk about these factors. Based on Hong Kong Lenovo's total share capital of 675 million shares, BJ Lenovo held 261.8 million shares, and Hong Kong businessmen held 208 million shares, of which 193 million shares were acquired through debt, valued at 257 million hong kong dollars at the issue price.
Later, Hong Kong Lenovo suffered huge losses for two consecutive years, and its stock price fell to 0.29 hong kong dollars. The market value of the shares held by Hong Kong businessmen through debt was only 56 million hong kong dollars.
Here's the crucial point, pay attention to the key details, as some people may deliberately ignore or not want to mention them. Why did Hong Kong Lenovo, which had always been profitable, suffer huge losses of 250 million hong kong dollars for two consecutive years in 1994-1995 after going public?
Those who have been repeatedly 'harvested' by A-share financial predators might understand a thing or two.
Holding shares through debt comes with a price. If certain agencies were to investigate and find problems, would these Hong Kong businessmen be held responsible?
Does anyone believe that those few small Hong Kong businessmen could control Lenovo? Are they to be held responsible for Hong Kong Lenovo's losses?
The thinking of entrepreneurs and engineers is fundamentally on different dimensions, so it's best for Founders to learn a bit about management and not be misled by prejudice.
Alright, indeed, many media outlets said that these businessmen caused Lenovo huge losses. What's even more infuriating is that by this year, Lenovo's stock price had risen to nearly 3 hong kong dollars, and the Hong Kong businessmen indeed made a huge profit, earning 500 to 600 million hong kong dollars.
Unfortunately, these misleading articles use inconsistent data. It's important to know that the Lenovo Group we are familiar with was formed in 1997 when BJ Lenovo's assets, valued at approximately 1 billion hong kong dollars, were injected into the listed company Hong Kong Lenovo. By now, in 1999, state-owned capital holds nearly 75% of the shares.
As for the massive increase in Lenovo's stock price this year and next, isn't it obvious why? Surely no one believes that the current Lenovo is worth 100 billion hong kong dollars?
Sometimes the truth can be harsh. Lenovo and Huawei are two technology companies in different industries. If Huawei had insisted on independent CPU research and development in the PC industry, it would have died without a trace long ago.
It's not a lack of ability, but rather that the enemy is too strong and too focused on this industry. The setbacks Huawei is facing now might have been encountered more than ten years ago. Could Daxia have been as strong and unyielding then as it is now?
Lenovo has many shortcomings, but to blame it entirely for Daxia Country's lack of independently controllable CPUs is perhaps too unfair.
It's worth noting that during the same period, Founder and Tsinghua Tongfang also received assistance no less than Lenovo.
I won't say much about Lenovo later. Disappointment is disappointment, but the scholarly Li Guangnan was truly wrong in reporting Liu Chuanzhi. The discord between the general and the minister was the main reason Lenovo lost its technological gene.
He Zhengcheng, taking a third-party stance, calmly recounted some of his conclusions to Li Guangnan, causing Ma Xuezhen, who was beside him, to seem lost in thought.
"Is that really how it happened?" Li Guangnan turned to look at Ma Xuezhen.
"..." Ma Xuezhen remained silent.
"Why do you insist on knowing the so-called truth? Have you considered the impact this incident would have on Lenovo? From the moment you reported it, would Lenovo's technological accumulation advance or regress?" He Zhengcheng asked.
"This can't all be blamed on him," Ma Xuezhen said.
"Forget it, let's not talk about this anymore. Thank you, Mr. Li, for listening to so many unpleasant things from me. Now, let's talk about the purpose of my visit," He Zhengcheng said.
"..."
"I want to establish a fabless chip design company in Daxia, starting with multimedia chips for DVDs, MP3s, and televisions to accumulate experience and technology, and then move on to mobile phone chip research and development," He Zhengcheng said.
"That's excellent; these are all core key technologies," Li Guangnan replied.
"It seems Mr. Li might not understand my meaning. Let's talk about something else. Mr. Li, do you know about Japan's TRON operating system? It's also an open-source framework operating system. Do you understand why it failed?" He Zhengcheng asked.
"Japan's failure doesn't mean we will also fail. Even if we might fail, we must still make such an attempt," Li Guangnan said.
"I heard someone mention this in Silicon Valley; it may not be entirely accurate, but you can have someone verify it. Former America's Minister of International Trade and Industry, Hashimoto, once said: 'All companies that use the TRON system will lose fair treatment in the American market.'
Do you think developing chips and operating systems is a simple economic and technical problem? This is a complex political issue," He Zhengcheng said.
"Are you saying we have no chance?" Li Guangnan asked.
"Do you think so?" He Zhengcheng responded noncommittally.
"How does Mr. He see it?" Ma Xuezhen asked.
"This problem is actually not complicated. First, don't think of yourself as a savior; don't think that this company or its stock price will lose hope without anyone.
Second, don't be eager for quick success, thinking that with enough capital, you can see hope in three years, achieve hope in five years, and reach Intel's level in ten years.
If Mr. Li continues to hold such thoughts, then there's no need for us to continue talking. I hope to find a rational doer, not an empty dreamer," He Zhengcheng said.
"I..." Li Guangnan seemed very angry, his face turning red.
"Could Mr. He be more specific?" Ma Xuezhen asked.
"I firmly believe that Daxia must have independently controllable chips and operating systems. This is not for economic considerations, but for information security.
However, this is a problem for the entire industrial chain. Daxia has almost no advantages in the IT industrial chain. We cannot even produce a hard drive or a memory card ourselves. How long will it take and how much investment will be needed to produce qualified mass-produced chips?
Does Mr. Li know how much TSMC and Intel invest in research and development each year? No less than 10 billion rmb, right? Do you think we can catch up with them with less than one percent of that investment?
It's not impossible. They have tens of thousands of engineers; if Daxia Country mobilizes 100,000 engineers, does Mr. Li think that's realistic and in line with the laws of scientific development?
Even for the simplest operating system, do you believe that Microsoft would absolutely allow the widespread use and promotion of pirated Windows and Office in Daxia Country to suppress domestic operating systems and office software?
With such a powerful enemy, do we need to deceive ourselves? We must be prepared for a protracted war."
"Listening to you, we have no hope," Ma Xuezhen said.
"We must view the world and the development of this industry with a developmental perspective. If Daxia Country continues to develop at this speed, its GDP might surpass Japan's in less than ten years.
At that time, a prosperous and strong Daxia will be able to use national power to support this industry," He Zhengcheng said.
"You mean wait?" Li Guangnan's expression softened considerably.
"Alas..." He Zhengcheng sighed deeply, implying that it was difficult to find a true confidant.
"Talent needs to be cultivated, the market needs to be cultivated, and we also need to start cultivating several teams that can survive in the market environment," He Zhengcheng said.
"That makes sense!" Ma Xuezhen exclaimed.
"Chip design is the most time-consuming among them, and it also has relatively lower costs and investment. I want to set up two R&D centers in Hong Kong and Shenzhen, and cultivate a chip team of over 10,000 people over 10 years," He Zhengcheng said.
"What does this have to do with me?" Li Guangnan asked.