During this period, stocks plummeted, and rice was no exception.
Meanwhile, the company will also conduct a private placement of shares in the rice industry. Prior to this, the company will complete the acquisition of shares by Kechuang Biotechnology, which will help determine a good price for the subsequent private placement.
Rice phones, Rice cars, Rice smart home products, and the last one is a supplier product. The first two are self-operated by Rice, and these consume a lot of Rice's cash.
Especially for those who manufacture cars, breaking even is still a long way off.
A profit margin of over 10% per vehicle does not mean that total revenue and expenses can be reversed.
If it weren't for its poor financial situation, DaMi Auto wouldn't have sold its shares in KeChuang Future.
"Senior brother, I also believe in you. The maturity of the rice supply chain can be seen through the large-scale production using brain-computer interface VR."
The rice industry is indeed very strong in supply chain integration.
I personally have little objection to the investment in DaMi Auto.
In my opinion, investing in DaMi Auto is just a capital operation, and I can guarantee that we will not interfere with the specific operations of DaMi Auto.
At most, one external director may be appointed.
However, we may need to have our staff discuss the specific price and shareholding percentage with us.
Lei Jun felt relieved; as long as the other party was willing to invest, he wouldn't lose money no matter what.
With the backing of Kechuang Biotechnology, the price became easier to negotiate in subsequent private placements.
Private placement refers to the targeted issuance of shares to established institutional investors or individuals, offering investment products such as bonds or stocks.
This price is usually negotiated before the private placement.
The price of a private placement is generally lower than the price in the secondary market, and if the company is in a downturn, the price of the private placement can be even lower.
Of course, it's not necessarily true that these investors who participate in the private placement will benefit.
Hillhouse Capital, for example, frequently participates in private placements in China. However, they didn't make any money from their private placement of Gree Electric Appliances; in fact, they lost a considerable amount.
Private placements require participating institutions to be optimistic about the company's long-term development.
The company is in an awkward position. In terms of market share, it is worth more than this price, but in terms of profit and revenue, it is not worth this price.
The premium enjoyed by home appliance sellers and technology manufacturing companies is vastly different.
Rice is in this middle ground. If it were to adopt the same pricing standard as BOE, its stock price would have to be halved again.
The return on equity for rice has been declining in recent years.
Lei Jun nodded and said, "No problem, we can talk about it later."
Don't worry, I'll definitely give you a quote that offers excellent value for money.
Rice is known for its cost-effectiveness.
Actually, there's nothing wrong with the cost-effectiveness strategy.
Ford Motor Company initially pursued a value-for-money strategy, but later launched high-end brands such as Lincoln, Land Rover, and Aston Martin.
Of course, both Land Rover and Aston Martin have now been sold to other companies.
Dami Auto's strategy is to first focus on cost-effectiveness, establish a foothold, and then move towards the high-end market, following the same path as Dami mobile phones.
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