Reinventing the Millennium

On September 21, there were still 9 days until the end of Q3.

After Bingxin confirmed that the photoresist was available, Fang Zhuo called Beijing.

In just two hours, leaders of multiple departments confirmed that they would fly to Luzhou in the afternoon, including his brother Zheng Danrui, who was in charge of some business work.

At 12 noon, Zheng Danrui called Fang Zhuo on the way to the airport to inquire about the exact progress of the photoresist research and development work.

Fang Zhuo gave a concise explanation.

Zheng Danrui's heart was surging, and he suddenly asked: "Yike's third-quarter financial report is coming out soon, and the revenue is not good after all."

Even if the production capacity is restored immediately, the revenue of the past third quarter cannot be made up, and there will inevitably be an extremely ugly financial report, which is the last straw that has been exaggerated recently.

Fang Zhuo knew what he was talking about and smiled, "Obviously, financial reports are not the only criterion for measuring the value of a company's stock."

Many institutions have repeatedly emphasized a point of view during this wave of short selling, believing that "financial reports are the most important criterion for measuring a company's stock price", trying to use Yike's Q3 financial report, which has been unable to recover, to defeat the stock price.

However, Fang Zhuo will show another criterion for determining stock price trends-expectations.

Zheng Danrui felt relieved when he heard what Mr. Fang said. Since the world-renowned mobile financial company has good news, the old devil will definitely be able to make good use of it.

He did not talk about this topic again, but talked about the leaders he would meet in the afternoon.

The current situation of Yike and Bingxin has been discussed many times, and there are also many written materials. There are also many struggles on the import of photoresist, but being controlled by others is being controlled by others, and the BIS is pinching the top, so it is difficult for Bingxin to resume supply in the short term.

However, once it is available in China, the situation will be completely different.

Fang Zhuo has the same expectation for this change, and DuPont has also used its ideas to prove this direction.

The call between the two was interrupted because Zheng Danrui arrived at the airport.

When the plane that had hurriedly flown from Beijing landed in Luzhou, Fang Zhuo saw Zheng Danrui again and was with many leaders.

There was not much greeting. The most important thing for this trip was to listen to the latest report.

Just like the previous report in the early morning, this time it was still Xinyang's head Wang Fuxiang, R\u0026D director Chai Qingliang and Bingxin's vice president Yan Zongrui who jointly described the current situation.

After confirming that the 16nm photoresist was indeed a breakthrough, the focus of the conversation turned to the relevant guarantees of the next process node. This was described in detail by Yan Zongrui about the continuity of the photoresist due to the process technology.

"Mr. Fang, this is really a solid surprise!"

"Great, this is a photoresist that cannot be sealed, this is the Bingxin spirit that cannot be sealed!"

"Mr. Fang, great!!"

The leaders from Beijing gave high praise.

Fang Zhuo said seriously: "This is thanks to the courage of the Xinyang team to shoulder the heavy responsibility, and the perseverance and dedication of all Bingxin employees. We have long proved our competitiveness on par with the world's advanced level. This time we once again demonstrated our enterprising spirit to the world with practical actions. It will not only consolidate our leading position in the industry, but also continue to vigorously promote the development of the mainland semiconductor industry."

Xinyang's Wang Fuxiang was overjoyed when he saw Mr. Fang's eyes signaling his direction, and was surprised when he heard the words of another leader.

A leader joked: "Mr. Fang, you have said everything we said, what else do we say?"

Everyone laughed.

The current situation is clear. The biggest problem of Bingxin's operation has been solved, just like the clouds have been cleared, and the next work will be easy to do.

Wang Fuxiang and Chai Qingliang also received praise from the leaders. However, after completing their reports, they made room for the head of Yike to have a deep talk with the leaders.

"Chai, Mr. Fang asked you what you want before, and you said you want to think about it. Have you thought about it now?" Wang Fuxiang smiled on the way back and asked the hero.

Chai Qingliang nodded and said seriously: "I thought of it."

Wang Fuxiang asked in surprise: "Thought of it? What do you want?"

"I heard that Mr. Fang has a fund that can manage money. I want to put all the money of me and my relatives and friends into it." Chai Qingliang replied, "I plan to mortgage my house first."

Wang Fuxiang: "..."

He said with a smile: "You... you are taking risks with your own money. You might as well ask Mr. Fang directly for it."

"It's my own money, so maybe it doesn't count. I can think about it again later." Chai Qingliang said so.

Wang Fuxiang: "..."

He walked a few more steps and asked: "Did you really mortgage your house?"

Chai Qingliang said strangely: "Yes, what's the hesitation? I developed the photoresist myself. Mr. Fang is obviously going to counterattack. The short sellers will definitely bleed. If you don't mortgage it now, when will you mortgage it?"

Wang Fuxiang thought it made sense.

This... I won't mortgage my own house. Otherwise, mortgage some of the company's stocks?

Let's have a taste of short sellers?

Wang Fuxiang has made up his mind. If he wants to play, he will play big!

…

The third quarter is coming to an end. The countdown on the "KILL YIKE" website has been changed to a blood red color to suit the occasion. Although it is unknown who did this, it has always been one of the materials reported by the media.

Even the exchanges between institutions will often talk about this website and the news on it.

On September 27, an exchange meeting on Wall Street was held as a special session for Yike. Senior executives from institutions such as Knicks United Fund, Greenlight Capital, and Castle Investment, which had recently spoken out, were present. Everyone discussed their views on Yike.

In the evening, they held another cocktail party, which was basically attended by the same camp that shorted Yike. In addition to those who had shorted Yike recently, there were also people who had been beaten up by Yike twice before.

For example, John Paulson, who was awarded many shining names such as "King of Short-selling", "Wall Street Short-selling God" and "No. 1 Hedge Fund" due to the financial crisis.

He had to close his fund because of short selling Yike. Since then, he has stopped engaging in this area of ​​business and instead focused on giving speeches and publishing books. He has also made a lot of money.

Yi Ke suffered a blow from BIS this time. Paulson has been paying attention to this matter and thinking about the changes and future in the market. He waited until May and finally decided to come out again, secretly established a new hedge fund, and started shorting Yi Ke. division.

However, Paulson was extremely cautious and withdrew immediately as soon as he heard the news about the China Wafer Manufacturing Alliance. Then he withdrew again after observing Mr. Fang’s abnormal performance. He waited until the news of the ice core photoresist breakthrough at the end of August. Three withdrawals.

Three advances and three retreats.

Now it’s the fourth time I’ve shorted Yike.

Regardless of market performance or professional judgment, Paulson believed that Yike could no longer maintain its stock price, so he made a public appearance at this time to announce his return.

John Paulson was very popular back then, and he actually had a lot in common when he attended the reception this time.

"Yike's Q3 must be its worst quarterly financial report in history." Paulson held a glass of wine and chatted with Russell, the pioneer of short selling. "No matter what news comes from China, the market is already numb. What was said about photoresist and production capacity restoration before is now definitely false news.”

"I told the media at the time that it must be false. Many people still had hope for Bingxin and Yike." Russell said disapprovingly, "BIS decided to use photoresist to attack Yike. This is very secret. It’s also very sudden, and it’s absolutely impossible for Yike to solve it in a short time.”

Photoresist involves foreign manufacturers, and BIS's long-arm jurisdiction requires a lot of effort.

Paulson agrees.

Russell looked at the senior short seller, took a sip of red wine, and asked with a smile: "Paulson, you fought with Fang Zhuo, what did he think of him?"

This question has interested many people, and they have quieted down to hear the views of the former "King of Short Sellers."

Paulson's expression became a little more gloomy. After a few seconds of silence, he said, "Fang Zhuo is still very fierce."

When everyone heard this comment, a shadow seemed to flash in their hearts.

"But there is a saying in China." Paulson held the wine glass and said slowly, "There is no freedom when a hero is shipped. Fang Zhuo is indeed very fierce, but this time is different."

Russell was very satisfied with this and raised his glass: "To 'This time is different'!"

The market is gone, the photoresist is gone, the financial reports are no longer good, and the production lines are not running. This time is different!

Everyone raised their glasses.

Chanos, the "short-seller master" of the Knicks United Fund, was very happy tonight. After drinking several glasses of wine, he loudly said: "What's Yike, what's Fang Zhuo, come on, listen!"

He attracted everyone's attention and made the place quiet. Then he touched the glass in his hand to the wine glass in the hand of the person next to him, making a "bang" sound.

The wine glass broke and the red wine spilled all over the floor.

Chanos laughed loudly: "Listen, this is Yike's broken voice!"

Everyone laughed, and more Yike's broken voices could be heard in the venue.

Paulson had not communicated with so many peers for a long time, and he was in a particularly comfortable mood as he was once again the opponent he had been shorting before. He clinked glasses one by one with the fund managers who had spoken out against Yike, and finally returned to Russell. .

"Russell, when do you think Yike's Q3 financial report will be out?" Paulson chatted about the last moments.

"If it doesn't come out on the 31st of next month, it will be on the 15th of November at most." Russell said about the process and guessed, "I think it will come out in early next month. Yike has already There’s no chance, so what’s the point of dragging it on?”

According to regulations, Yike's Q3 should be announced before the 31st, but there are special circumstances. It can submit Form 12b-25 to the SEC, which is "a form notifying the inability to submit periodic reports on time." In this way, there will be a short period of time. The deadline is usually 15 calendar days.

Paulson nodded and said thoughtfully: "I think Fang Zhuo will wait until the last moment."

"Why?" Russell asked.

Paulson thought about the fierce Mr. Fang and shook his head: "Feeling, just feeling."

Russell Heeran: "The longer he delays, the greater the negative sentiment in the market. I hope Fang Zhuo is a person who can accept failure."

Paulson thought about the current market sentiment and said with a smile: "He can do it. He can give lectures and sell books like me."

The two looked at each other and smiled, clinking glasses again and listening to Yike's broken voice.

The reception was very lively. Russell was playing TikTok recently. He even patted his colleagues who were in high spirits and marked them with text.

——My colleagues with whom I have unanimously agreed. They all agree that the only shortcoming of Yike is that it is very weak.

…

Kong Yu, head of GA Fund, arrived in Luzhou late at night.

The first time he met his boss, he showed the grand scene of his friends outside.

Fang Zhuo looked at it carefully and smiled: "The last supper."

"Hehe, this is my first reaction." Kong Yu made a cup of coffee by himself, "Mr. Fang, they have reached a consensus, but I think their conclusion is wrong."

Fang Zhuo wants to hear what the Gasoline Man is selling.

Kong Yu announced his opinion: "I think the only shortcoming of Yike is that it looks weak."

Fang Zhuo laughed dumbly.

He threw the document in his hand to the gasoline man opposite.

Kong Yu took it and read it. He looked at the title first and immediately knew that the middle part was incomprehensible. He turned to the final conclusion and sighed: "Dr. Liang is really unparalleled in the world!"

On September 17, photoresist broke through.

After 12 days, the risk trial production of SMIC’s 10nm process was successful.

Fang Zhuo had already spent the joy of knowing the news for the first time, and nodded: "Indeed, Dr. Liang is unparalleled in the world. If the ice core was not restricted, we would probably be able to complete the small-scale mass production of 10nm in the middle of the year. Now we can Launch a new flagship.”

That means that Bingxin and Yike can completely consolidate their lead over other manufacturers. Unfortunately, this hard-to-build cycle has been interrupted.

"Dr. Liang is a sharp tool, and ice cores are also a sharp tool." Kong Yu looked over and over at the documents of the risky trial production, and couldn't help but sigh, "Mr. Fang, how can you get along with someone like Dr. Liang?" Is there a rival?"

Fang Zhuo said calmly: "It's too much praise. There are still many problems later, but at least we can solve them one by one, and we will live up to everyone."

Kong Yu digested the latest good news for a while, and then re-calculated the situation in front of him.

After a while, he asked: "Mr. Fang, how long can the news about SMIC's 10nm be hidden?"

Generally speaking, equipment and raw material manufacturers will be ahead of manufacturers in adapting to advanced processes, and manufacturers are also conducting research and development on multiple processes at the same time. However, there will still be clues about SMIC's 10nm breakthrough.

"The Q3 financial report will be pushed to November." Fang Zhuo did not answer immediately. Instead, he talked about the timing of the financial report that is of concern to the outside world. "It will not be released before the 31st. We will apply for an extension. In November, almost the second week, the election in the United States will be held." The results will be announced, and if there is no problem, we will present gifts to the couple at that time. ”

Kong Yu looked at Mr. Fang in surprise, and then understood that there might be some additional meaning in it.

He asked: "This time the short squeeze is on the Austrian currency side..."

"Don't say hello in advance. This is our own breakthrough. It's just a matter of making more or less." Fang Zhuo said, "When the time comes, we will make a final call. They can make as much as they want, it doesn't matter."

Kong Yu is almost certain that his friends still want to make more money, and they are about to step down. If they don't use it anymore, it will be invalid.

Fang Zhuo thought for a while and continued to talk about the key work arrangements: "Yike's autumn press conference will be held in the second week of November. There will be no on-site release. Well, let's make a two-line press conference. , pre-sale the new generation Mars10 equipped with 10nm chip.”

The new generation of Mars 10 cannot use ice core technology as everyone expected. Therefore, this time it is replaced by SMIC technology, which is still half a generation ahead.

Kong Yu thought about all the information and arrangements, Yi Ke's unprecedented press conference, the situation and the bloodshed, and sighed: "Okay, let's give a gift to the newlyweds."

Immediately, he said loudly: "A gift for Mr. Fang!" (End of Chapter)