Chapter 748 Trillion Investment

Jiuzhou Technology is increasing its R&D investment for the future. Companies such as Xiawei and Xiaxin, which have been doing well in recent years, have also started a new round of financing and R&D investment.

A reporter noticed that Xiawei Investment Holding Co., Ltd. disclosed the second medium-term note fundraising prospectus for 2023 on the official exchange, and plans to issue 10.5 billion yuan of medium-term notes to supplement the operating funds of Xiawei headquarters and its subsidiaries to support the development of various businesses and the implementation of key strategies.

Judging from previous financing records, since Xiawei turned to domestic financing in 2019, the total annual bond issuance has been controlled below 10 billion yuan. In 2021, Xiawei issued bonds twice to raise a total of 8 billion yuan. This year, Xiawei has raised more than 15 billion yuan in total through two bond issuances.

According to Xiawei's announcement, the term of this medium-term note is three years, and the interest rate range is 2.7%-3.3%.

Xiawei promised that the funds raised from the issuance will be used for the production and operation activities of enterprises that comply with the laws, regulations and policies of Daxia, and will not be used for long-term investment, real estate investment, financial management and various equity investments.

As of the end of the second quarter of 2023, the balance of cash on Xiawei's account was 298.9 billion yuan.

Based on this, Lianhe Credit determined that Xiawei's long-term credit rating was AAA, and the risk of default was extremely low.

Regarding Xiawei's large-scale bond financing this year, General Manager Ren explained that Xiawei's bond issuance cost was relatively low. If the employees' investment in the company was increased, the dividend cost would be too high.

"Anyway, they can issue as much debt as they want, and our funds are relatively abundant."

The retired Mr. Ren also complained: "I only knew about this bond financing after the news came out."

Yu Chengdong was even more straightforward. He said bluntly: "We can't wait until the difficult time to issue bonds, and the current financing interest rate is relatively low. Of course, the most important thing is that the financing channels of Western banks are not very smooth for our company, so we turned to domestic financing."

In addition, he also said boldly: "At present, Jiuzhou Technology's carbon-based chips and architecture have put great pressure on HiSilicon Kirin. There are only three semiconductor chip companies in the world now.

The most powerful Jiuzhou system company, the most conservative Western Semiconductor, and our Xiawei HiSilicon Semiconductor, which survives in the cracks.

The R&D investment of mobile phone chips is characterized by a higher level than the first level, so if we want to catch up with Jiuzhou Technology, we must increase investment and increase it to more than Jiuzhou Technology.

This year, our Xiawei's R&D investment in HiSilicon Semiconductor will not be less than 50 billion Xiayuan!"

Xiawei's CFO also said at the financial report meeting: "10% of Xiawei's annual income is fixedly invested in the R&D field. This has been written into Xiawei's basic law. Looking to the future, Xiawei will still increase investment in talents and R&D."

After Xia Wei, Xiaxin's big move also boosted the spirits of the media and global semiconductor practitioners.

After the second quarter's chaebol announcement, the chairman of Xiaxin Technology said: "In 2023, there will still be challenges and opportunities. The overall production capacity of the industry is in short supply, but the demand in some application areas has slowed down, and the shortage of production capacity has gradually turned into a structural shortage.

To this end, Xiaxin Technology has been actively carrying out industrial layout to promote the production capacity of carbon-based chips and high-end silicon-based chips. At the beginning of this year, Xiaxin Technology's new plant in Lingang, Pudong, broke ground, and the two major projects in Yanjing and Pengcheng are also progressing steadily. It is expected to start formal production in the third quarter."

After reading the manuscript for a while, the chairman talked about serious matters.

"In order to support the expansion, we at Xiaxin Technology learned from Jiuzhou Technology and began to tighten our belts. In 2010, the first year of listing, Xiaxin Technology did not pay cash dividends. In 2022, against the background of a substantial increase in operating performance, the company still adopted a profit distribution strategy of not paying cash dividends.

As of the end of the second quarter of 2023, Xiaxin Technology had 91.5 billion yuan in cash on its books, 61.967 billion yuan in long-term and short-term debts, and the company's contractual liabilities exceeded 10 billion yuan."

After the chairman's speech, some professionals summarized the reasons why Xiaxin Technology and Xiawei Company had to significantly increase their R&D investment this year.

Because these technology companies that have made great progress in recent years have many technologies, and even the main technology systems of the stage are all provided by Jiuzhou Technology, which means that many of the profits earned by the company will be paid to Jiuzhou Technology, and they have become an alternative "Jiuzhou Technology Branch".

If you want to get rid of this situation of being a younger brother, you can only be forced to forcibly increase R&D investment and retain more profits.

Of course, it is not just Xia Wei and Xia Xin, the partner companies of Jiuzhou Technology. Meidi, Dami, Bubugao and other companies have also issued similar documents.

While these partner companies are making a big fanfare and rolling up their sleeves to prepare for a big fight, Jiuzhou Technology’s official website has issued an announcement in a very low-key manner.

The title of the announcement is also very interesting. What does it mean to be "Trillion Investment, Recruiting Talents, and Creating the Future Together"?

The media reporters downloaded the appendix of this announcement and found industry experts for various interpretations.

However, after seeing the content of this announcement and the document, these experts could not believe their eyes.

Is there really a crazy company on this planet that invests 35% of its net profit in R&D and theoretical research?

"I'm sorry, I can't interpret Jiuzhou Technology's R&D investment report for you for now. The data on it is a bit unscientific. I need to study it again."

This is a rational response.

In addition, there are very straightforward ones, saying directly: "Can't you read the numbers? Companies like Xia Wei and Xia Xin have hundreds of billions, while Jiuzhou Technology directly took out trillions, and it's not a few hundred billion, but trillions! Is this normal?

Who dares to fire at Jiuzhou Technology at this critical moment? Even if I fulfill your wishes and discredit Jiuzhou Technology's R&D investment, don't you worry that your company can survive after your report comes out?

Besides, I don't think you can withstand the lawsuit from Jiuzhou Technology's Legal Department."

The media organizations in Daxia shuddered at the first moment when they heard the name of Jiuzhou Technology's Legal Department.

God has mercy on me. The things that Jiuzhou Technology's Legal Department has done in recent years are enough for those legal experts to write books and give lectures.

Normally, people can watch videos of lawless lunatics and have fun, but if they really become the protagonists in them, they will not be happy.

However, they dare not do crooked ways, but some people are willing to interpret them positively.

Shen Yi, who was once complained as the first bootlicker of Jiuzhou Technology, asked after forwarding this news: "With trillions of investment, what project has such great charm that Jiuzhou Technology is so desperate?"

I like to write about corporate capital, product development, industry, and current affairs, but my writing skills cannot support all kinds of pretentious face-slapping under the overall situation.

Learn from the lesson and continue to work hard in the future.

Good night. Book friends who subscribe here, love you~