Life 1984

Chapter 366 Catastrophic Failure

Guo Wanhua thought that it was not impossible for Li Yunhai to make profits by speculating on his own stocks.

After all, this year, the Securities Regulatory Commission in Xiangjiang has not yet been established.

Moreover, Intel's attack on Sihai Group was not something Li Yunhai could control. It was a force majeure force from the outside world.

Li Yunhai just took advantage of an information gap and sold his stocks first, then bought them back after the stock price fell.

He can easily make billions of Hong Kong dollars. Even if someone questions it, they can only say that he has a vicious vision and sees the opportunity right.

But Li Yunhai would not do this.When Xiangjiang's stock price was in turmoil last year, Li Yunhai did not use this method to make profits.Because in the final analysis, this kind of behavior is manipulation of stock prices.

Manipulation of stock prices does not necessarily involve external institutions, but may also be internal managers of the company, major shareholders, invisible shareholders, individuals, concentrated financial advantages, internal information advantages, management advantages, or special conditions that other investors do not possess, to achieve the goal of lowering the stock price. Sustainable changes are all manipulation of stock prices.

Guo Wanhua held Li Yunhai's hand and said anxiously: "Yunhai, we have to do this because we have no choice! The orders we received this year have not been completed yet. If we really can't deliver them, then we will start from the CES Electronics Show and two dealers. None of the PC orders received at the conference will be completed! Not only will we not make any money, we will also lose money! What are you going to do to compensate?"

Li Yunhai shook his head calmly and said resolutely, "No matter what, I'll lose all my money! I'll just go back to Xizhou and open a repair shop."

Guo Wanhua knew that she could not convince Li Yunhai, so she said: "Then let's find a way to save it first! I hope Intel won't drive us all away."

However, this is definitely wishful thinking. If Intel even dares to sue AMD, will it let the Chinese Sihai Group go?
Li Yunhai contacted Shen Xiulan and asked how many PC orders had not yet been delivered?
Shen Xiulan didn't know that such a big thing had happened, so she thought it was a normal inquiry, so she did some statistics and told Li Yunhai: "There are 12 Alien computers and 8 Longteng PCs."

20 computers in total!

That’s 20 chips!

This batch of goods was supposed to be Sihai Group’s sales record this year!
If Sihai Group can buy a few months, it will definitely be able to complete these orders.

But time flies, and Intel will not give licensees any buffer time at all.

Since the launch of 386, Intel has turned a profit and its annual revenue has reached more than 30 billion US dollars. The huge profits will only make Intel go further and further down the road of dictatorship.

If it can purchase this batch of chips from Intel, Sihai Group can still maintain these orders. The worst thing is that it will not make money.

What if the order is scheduled a few months later?Then Li Yunhai could only return all the money received to the purchaser, and also pay compensation for the losses caused by these orders to the purchaser.

Not only did Sihai Group lose billions, it will also pay billions more!

Then Li Yunhai really has to lose all the money he has earned in the past few years.

His major projects in Xizhou, Xiangjiang, Beijin and other places will also be suspended due to lack of funds.

Li Yunhai couldn't imagine how serious the consequences would be!

Lin Xiaofeng, who was far away in the United States, flew to Intel headquarters for negotiations the next day.

In fact, Intel did not pay attention to this small company before Sihai Group asked MJ to shoot an advertisement and held a global dealer conference in Hong Kong.

This is just like smuggling and counterfeiting. When you are making a small fuss, no one knows your existence and is too lazy to care about you.But once you make a big fuss, you will immediately be focused on and hit hard!
While Intel was fighting a lawsuit with AMD, they were also reducing the authorizations of other companies. As soon as MJ's commercial came out, their people were eyeing it. They immediately contacted Sihai Group's newly established branch in New York and asked Sihai Group to stop Produces X86 chips.

Lin Xiaofeng approached Intel to negotiate, but the result was very bad.

Intel is particularly strong and directly refuses any form of authorization, whether it is a permanent authorization of the instruction set or a short-term production authorization.

Lin Xiaofeng said a lot of good things, hoping to get the authorization and asked the other party to give a price.

The other party said casually, OK, do you want permanent authorization?Then give us $500 billion!

Lin Xiaofeng smiled bitterly, not to mention US$500 billion, even US$50 billion, Sihai Group cannot afford it now.

The other party was obviously deliberately trying to embarrass Sihai Group.

Lin Xiaofeng knew that there was no need to discuss this matter, and even if she found Li Yunhai, she would not be able to come up with a solution.

She then requested a five-year chip production authorization from the other party.

Intel said yes, but we can only give you a production license for the 286 chip, and the licensing fee is US$1500 million a year.

286 chip is a chip that is about to be eliminated.

Any chip is expensive when it first comes out. After two or three years, when a new generation of chips comes out, the price of the old chips will drop.

A chip that costs only a few dozen dollars sold for $950 when it first came out.

After a year or two, the price has halved.

In another two years, it sells for $150, and then for $90.

Not to mention the 286 chip, the 386 chip is so expensive now. In three or four years, it will only be sold for about 100 US dollars.This is Intel's official price cut. If it is a chip produced by another manufacturer, the price will only be lower.

What’s the point of such authorization?
Lin Xiaofeng took the next best step and asked Intel for a grace period.

Intel has a tough attitude and says without leaving any room for error, you must end production within three days!Otherwise, we will initiate a lawsuit and ask you to compensate us for US$20 billion in infringement fees!And ban your products from entering the United States!

Lin Xiaofeng was shocked. The other party was so aggressive that she felt powerless to resist. She had no choice but to follow Li Yunhai's final instructions and order 30 chips from the other party.

The other party finally softened his tone and said that it is okay to order chips, but our current production capacity is limited and a new factory is still under construction. We will deliver your 30 chips within 6 natural months.

Lin Xiaofeng was stunned!
Half a year!

The day lilies are cold!

This is really going to kill the Sihai Group!

Lin Xiaofeng followed Li Yunhai's instructions and did not refuse on the spot, saying that she would discuss it with the headquarters.

After she left Intel, she immediately called Li Yunhai, no matter what time it was.

Li Yunhai hadn't gone to bed yet and had been waiting for Lin Xiaofeng's call.

After listening to Lin Xiaofeng's report, Li Yunhai let out a long and leisurely sigh!

Lin Xiaofeng knew that Li Yunhai was suffering, and said: "Yunhai, what should we do now? We definitely can't come up with the US$500 billion in licensing fees."

Li Yunhai hummed, even if he sold the entire Sihai Group, he would not be able to raise US$500 billion.

In 1988, the New York Times published an article saying: "The formidable Intel has monopolized its own market. The entire PC industry and Wall Street have realized that Intel controls one of the most profitable monopoly industries in the world!"

This year Intel was 20 years old, with revenue of US$30 billion, climbing 500 places on the global Fortune 50 list, to No. 150!
And what about Sihai Group?

It is just a baby that has just been born four years ago. Its total market value is less than 200 billion Hong Kong dollars, and it cannot even enter the Fortune 500.

Just as Li Yunhai was thinking about countermeasures, Lin Xiaofeng's voice came to his ears again: "Yunhai, should we order their chips? Or should we buy their 286 chip production license?"

Li Yunhai said: "Order the chip! The authorization of the 286 chip is of little significance!"

Lin Xiaofeng said: "Although it doesn't mean much, if we get the authorization, our lithography machines can continue to be produced. We launch a cheap computer and sell it domestically, and there is still a certain market. Now the 286 chip is very cheap. Now, we can keep the price of computers as low as possible."

Li Yunhai pondered: "A five-year license, US$1500 million per year! That would cost US$7500 million! Do you think we can earn so much money every year on the 286 chip?"

Lin Xiaofeng said: "This? I'm not sure. You are the boss, please make your decision."

Li Yunhai said: "Okay, let's take a gamble! Our self-developed chips haven't come out so soon, so we have to produce our own chips."

Lin Xiaofeng said: "Yes, it is reliable for us to produce our own chips."

Li Yunhai said: "That's it, we get the authorization for the 286 chip and order 30 chips at the same time."

Lin Xiaofeng said: "For 30 chips, we need to pay a payment of almost US$3 million! They are very overbearing. They have to collect the payment first and then help us arrange production."

Li Yunhai sneered: "This is the advantage of monopoly. No matter what conditions they offer, we can only listen to them!"

Lin Xiaofeng said: "30 chips are enough for us to sell them for a year, right?"

Li Yunhai said: "It's hard to say now. Auntie, you are in the United States. Please contact our distribution association in the United States, especially Hebrew, Mike and others, and ask them in person to extend the delivery time."

Lin Xiaofeng said: "Then it will be delayed for more than 6 months?"

"um, yes!"

"What if we can't reach an agreement?"

"If we can't reach an agreement, we will go bankrupt!" "..."

Li Yunhai and his Sihai Group have suffered the biggest crisis in history!

And it is a major crisis with no solution!

In order to continue the chip business, Li Yunhai needs to hand over 286 to 30 million US dollars to Intel, obtain a five-year 386 chip license and order [-] [-] chips.

If buyers collectively return goods and demand compensation, Sihai Group will really be on the verge of bankruptcy.

This unprecedented crisis came so suddenly!
Li Yunhai was completely powerless to resist.

Now he can only let others control him.

Next, he raised $4 million and transferred it to a U.S. account to obtain Intel's 286 chip license and also purchase 386 chips.

On the other hand, Sihai Group is fully mobilized to communicate with buyers from all over the world.

If it can be postponed, try to postpone the delivery as much as possible. If it can't be postponed, try to let the other party cancel the order and prevent the other party from suing for compensation.

There are only three days until the Chinese New Year.

The entire Sihai Group members were shrouded in a heavy gloom, and no one had the intention to spend this new year.

Lin Xiaofeng and David originally planned to return to China in the next two days, but they couldn't come back.

Chinese people celebrate the New Year, but foreigners don’t.

Everyone at Sihai Group worked overtime during the New Year and took the time to explain to the buyers and strive for understanding.

As long as there are no fines, Sihai Group can survive this harsh winter.

Even if the foreign businessman does not cancel the order, it will be very difficult for Sihai Group in the next six months.

In the past two years, the computer business has been their largest income. As a result, because the chip was stuck, they could not produce the 386 model within six months. This was a huge blow to Sihai Group.

As expected, 90% of the orders that Li Yunhai worked hard to secure at the CES show and dealer conferences were returned by foreign businessmen.

Li Yunhai invested heavily in publicity and held dealer conferences, but ended up with this outcome.

Fortunately, most of the orders have been signed recently, and many foreign businessmen have not yet had time to pay. They are also considerate of Sihai Group and will not be held responsible for breach of contract.

Li Yunhai took a long breath.

Although it did not have to pay huge liquidated damages, Sihai Group was still severely damaged.

All the money in the account was used to pay Intel to purchase chips and 286 licenses.

Coupled with the fact that it will not be able to make money from 386 Computers in the next six months, Sihai Group's revenue will be cut in half.

On February 2, New Year's Eve, Li Yunhai took Lin Zhi back home in a hurry.

His parents asked him: "Why did you come back so late this year?"

Li Yunhai would not tell his family about his troubles at work. He would only say that he was too busy at work and came back late.

The roof of the building where the third child lived was crushed by heavy snow and the rainwater eroded the adobe house, making it uninhabitable, so the third child moved to a new house.

This kid finally understood the benefits of a brick house, but unfortunately he still didn't repent and couldn't make progress in studies. After the holidays, he played cards and smoked outside with a group of half-year-old children every day.

Li Yunhai didn't have the energy to take care of him, not to mention his brother, but his son. If he was so disobedient, what could he do?
On New Year's Eve, festive firecrackers were set off in the village.

Li Yunhai and Lin Zhi stood at the door of their home, looking at the cheerful small mountain village. The unsatisfactory work situation was finally relieved at this moment.

Lin Zhi comforted him and said, "Yunhai, let's just do some small business! Don't be too demanding. Even if we don't make computers, we can still make money."

Li Yunhai hummed: "I know! The lesson learned this time is too profound! We have lost at least 10 billion US dollars! This is equivalent to all our hard work in the past few years being in vain!"

Lin Zhi said: "How could it be in vain? We also have Sihai Group, we also have CCA patents, micro piezoelectric printers, and Sihai Xerox copiers! We also have Sihai typewriters, learning machines, and translators! Our product lines It’s still very rich.”

Li Yunhai said: "Have you noticed? Only your own skills are reliable. Relying on others to support you is like a castle in the air. If someone else gets stuck, all your efforts will be in vain! We spent so much money to hire MJ for publicity. We held another global dealer conference, but it turned out to be a total loss! Others wanted to buy our alien computer, but now there is no product for sale!"

Lin Zhi said: "Yes, so let's sell these products with independent intellectual property rights first! We don't have chips, but we have memory and motherboards. We just can't sell complete machines."

Li Yunhai gritted his teeth and swore to God: "One day, I, Li Yunhai, and Sihai Group will definitely take back half of the computer industry!"

Lin Zhi saw his ambition, as well as his loneliness and sadness, and said, "Yunhai, just take a break for half a year! Don't think too much. Our life is already very good, and I am very content."

Li Yunhai put his arm around Lin Zhi's shoulders and said warmly, "Okay!"

Lin Zhi's belly became more and more pregnant, as if she was carrying a small watermelon.

Thinking about the days of pregnancy, I should have been conceived in August last year, and the due date was at the end of June or early July.

Li Yunhai and Lin Zhi discussed that they would get married as soon as his 22nd birthday passed, and said that July 7st would be a good day.

Lin Zhi said that at that time, my belly was as big as a ball. How could I get married?

Li Yunhai said it was nothing, and he didn’t want to wear a Western-style dress, so we could do whatever was convenient for us.

Lin Zhi smiled shyly: "If our relatives and friends see it, they will definitely laugh at us."

Li Yunhai said: "It's too late for them to wish me well! This is called double happiness! Hahaha!"

The New Year atmosphere in the village is still so strong. Young people who went out to work all went home to celebrate the New Year, and the number of people in the village suddenly increased.

Li Yunhai had previously planted a seed in major cities across the country, which was to support more than 1000 printing shops.

These printing shops are all opened by villagers in the Meishan area.

Now, this seed has become a spark, driving more people to join this industry.

Many villagers in Meishan area began to raise their own funds, rent equipment from Sihai Group, and opened printing shops in major cities across the country.

Li Yunhai made Meishan people successful and allowed them to enter a good business that makes them rich.

These people in turn helped Li Yunhai make money.

The rental of equipment and the purchase of consumables have continuously brought considerable profits to Sihai Group.

On the first day of the Lunar New Year, there was an endless stream of people coming to Li's house to pay New Year's greetings.

The first batch of Meishan villagers who went out to open a printing shop all made money and went home to build buildings. They came to thank Li Yunhai, carrying chickens, ducks and geese raised at home, bacon and candies.

Li Yunhai repeatedly said that there is no need to give gifts, please take them back!

But everyone said, you helped us and made us money. We also built a brick house at home. We have nothing to repay you. Please don't dislike it if I give you some local products from home.

Seeing that Li Yunhai refused to accept the gift, everyone put down their things and left.

Even the Li family couldn't catch up.

Seeing this scene, Li Yunhai's frustrated heart was suddenly burned by the sun.

Who says his efforts are meaningless?

This is his meaning!

Through his efforts, his family's life has been greatly improved, and he has also changed the national-level poverty-stricken city in Meishan area!

Almost all printing shops across the country are opened by Meishan people, and the number now reaches more than 6000.

In the past two years, more people will invest in this industry and open copy printing shops in various cities.

Xiongguan Road is really like iron, and now it is over from the beginning!
The glory of the past and the setbacks of the past have all disappeared in the long river of history with the sound of New Year's firecrackers.

When the Spring Festival was over, Li Yunhai took Lin Zhi on the way back to Jiangzhou.

No matter how tortuous the road ahead is, Li Yunhai will unswervingly embark on a new journey! (End of chapter)

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