Chapter 545 - 287: The Ticket to Board the Rice Car
Of course, the biggest reason he wanted to make cars was that the concept of new energy was becoming more and more mainstream. He believed that new energy could be perfectly applied to automobiles, revolutionizing the automotive industry.
Unfortunately, he had already floated the idea by Wei Yuan, the group’s top executives, and several shareholders. They were either noncommittal or outright opposed to it.
Everyone currently believed they should continue focusing on phones—developing new technologies and features to expand their market share based on this core business.
So, there was nothing he could do.
His phone rang, drawing his attention.
He picked up his phone and saw, to his surprise, that it was a call from Mr. Chen.
The man had truly taught him a masterclass in marketing strategy on short-video platforms this time around.
The man’s Soda brand had already reached 130 million in total sales.
Before the current hype died down, who knew how high the sales figures could climb.
It was a staggering figure.
If this drink became a nationwide hit, the country would undoubtedly have a new, well-known beverage company on its hands.
’He’s achieving such stellar results right now, so why would he be calling me?’
Lei Xiaojun answered the call. "Mr. Chen, why the call today?"
Hearing the call connect, Chen Jincheng immediately said, "President Lei, I’m calling because I need to ask you for a favor."
Lei Xiaojun chuckled. "Please, Mr. Chen, go ahead. If it’s something I can do, I’ll certainly help you out."
Chen Jincheng got straight to the point. "President Lei, as you know, I’ve launched a new drink, and orders have exploded. With the ongoing promotion, I’m sure the orders won’t slow down. Right now, the factory I have will take a full month just to produce the orders from the current video campaign."
"I need to acquire more beverage plants to expand production, but I’m short on capital. So, I was hoping to ask if you, President Lei, could settle the commission from the last livestream shopping event ahead of schedule."
This was his goal. The total sales from the Rice Phone campaign had exceeded 5.2 billion, which, at a 10% commission, amounted to 520 million.
After deducting Tiao Yin’s 10% platform fee, he would still have 468 million.
After taxes, that sum would be around 320 million. Combined with the revenue from his current orders, it would be more than enough to fund a massive expansion of the Soda business and rapidly increase production capacity.
Lei Xiaojun hadn’t expected this to be the issue.
However, considering the man’s 300 million investment and his current order volume, it was understandable that his production capacity was insufficient.
At a time like this, the best way to rapidly expand and capture an untapped market was, naturally, to increase production capacity.
Although the commission was procedurally scheduled to be paid out after a set period, paying it in advance was no issue. It would only take a single order from him.
Just then, an idea struck him. He suddenly chuckled and said into the phone, "Mr. Chen, the early settlement is no problem at all. But before that, I’d actually like to discuss something with you. Or rather, I’d like to hear your analysis and get your opinion on a matter."
Chen Jincheng was taken aback by this.
’What could a titan like him possibly need my opinion on?’
’Honestly, in every respect, shouldn’t I be the one asking for his opinion? After all, his grasp of the big picture, his vision, his business strategies... none of it was something I could compare to.’
Nevertheless, he said, "President Lei, please, go on."
Lei Xiaojun said with a smile, "Mr. Chen, I was wondering, what are your thoughts on the automotive industry?"
’The automotive industry?’
Chen Jincheng’s mind immediately flashed to the Rice Car from his previous world.
He remembered that Rice Car was an automotive company, a subsidiary of the Rice Group, that wasn’t established until March 2021.
The initial investment was a staggering 10 billion, yet before he transmigrated, Rice Car’s valuation had already reached 450 billion.
He remembered all this, of course, because he had bought a Rice sedan in his previous world and had even looked up information on the company. Back then, Rice Car was incredibly popular.
The Rice Car company wasn’t entirely owned by the Rice Group.
The likely reason was that a bold, aggressive move into the automotive industry was considered too risky by some within the Rice Group, so there were dissenting voices.
This was perfectly normal.
Many tycoons had faced similar situations. Their own companies were fully capable of undertaking a project, but the conservative, old-guard shareholders wouldn’t approve it.
So, these tycoons would have to secure investments from friends and partners—a few hundred million here, over a billion there, another sum from someone else—just to get the project off the ground.
Lei Xiaojun must have used a similar method.
After all, the initial investment was 10 billion, and subsequent funding rounds were also substantial.
Some might ask: Lei Xiaojun’s net worth exceeded 44.7 billion in 2018, so why couldn’t he invest 10 billion himself?
But that would be a naive assumption. Much of that 44.7 billion was the market value of his shares. In 2018, the Rice Group had 106 billion in current assets and 61.9 billion in current liabilities, meaning it only had 30.2 billion in available working capital.
Even if that number had increased significantly by 2021, the group’s old guard would never agree to fork over tens of billions at once for a venture in the automotive industry with no guarantee of success.
He recalled that someone had once disclosed the ownership structure of Rice Car. The Rice Group’s shareholders collectively held just over 57% of the shares, and that figure even included contributions of technology and IP.
In other words, President Lei had to raise the majority of the capital himself.
As for the rest of the shares, President Lei himself held a 24% stake, President Lin held 9.1%, and numerous other funds that President Lei brought in as investors each held a few percent.
’So, the Rice Car project was an absolutely golden opportunity. If I could get a chance to invest, even a small amount, to secure some shares... and if my Python and Sparrow Swallowing Dragon plan succeeds on top of that, I would completely ascend into the upper echelon of society—the so-called "old money" elite.’