Genius of the Rules-Style System

Chapter 1346: Chapter 644: Musk Arrives in Zhengyang

Yixing Company announced its financial situation for the past two quarters, sparking widespread public discussion. Many people were astonished at the profitability of the Unlimited Power Automobiles, but there were also some voices of doubt, mainly focusing on the issue of the company’s excessively high profit margins.

When the company noticed a large amount of discussion on profit margins in the public opinion, it immediately addressed the issue, "The profit from the last quarter primarily came from the sales of Unlimited Power Automobiles, and we have already invested in research and development for several consecutive quarters, totaling over four billion yuan." freeweɓnovel.cøm

For a company like Yixing that hasn’t been established for long, investing four billion yuan in research and development is truly impressive.

Additionally, the costs for Unlimited Power Automobiles must also take into account substantial initial investments.

For instance, patent fees paid to the Aerospace Bureau, Space Information Technology, and Advanced Compression Materials Company.

These departments are the main receivers of patent fees, and each Unlimited Power Automobile incorporates forty-four different patented technologies, with fees that need to be paid to other companies, although relatively less in comparison.

Of course,

the manufacturing and sales of Unlimited Power Automobiles indeed made a great deal of money for the company.

Once the financial situation for the quarter was disclosed, many professional assessment organizations could evaluate Yixing Company’s market value.

Being a newly established company and not yet listed on the stock market, Yixing could only rely on various factors for its market valuation, including mastery of professional technology, the scale of its real industry, user base, popularity of its manufactured products, and operational conditions.

Among these, operational conditions are extremely important. There’s a saying in the stock market that a company’s market value being twenty-five times its annual profit is considered normal.

Therefore, the market value of a non-listed company can be estimated by simply multiplying the profit situation by twenty-five to get an idea of the overall size of the market value.

This calculation method can’t be applied to newly established companies because most companies that have just started find it hard to turn a profit.

Yixing Company has already started to profit, and earned over ten billion in just one quarter.

Based on this figure, the company’s total market value would reach a staggering one trillion yuan.

However, other factors must also be considered in the market value calculation, and Yixing, unlike internet companies, does not have a large-scale user base. Their main competitive edge is the technology they control—

space light energy transmission technology.

This technology is unique to Yixing Company, with other companies having no possibility of applying for its use. Furthermore, they have partnered with domestic cutting-edge technology companies to use a variety of advanced technologies including Z-wave, space transmission technology, and anti-gravity technology.

In a sense, Yixing could be considered directly in the ’monopoly’ business.

This must be taken into account when evaluating the company’s market value, and it will substantially increase the valuation.

Soon,

many professional evaluation agencies published their appraisal results on Yixing Company’s market value.

Domestic evaluation agencies rated it at around one thousand two hundred billion yuan, marked as ’huge potential.’

International evaluation agencies had a slightly lower assessment of Yixing, but even the lowest estimate reached one hundred billion dollars, with greater emphasis on the earnings value brought by the Unlimited Power Automobiles.

The well-known Bell Index Company, in its assessment report, explained, "Unlimited Power Automobiles have become the most popular cars on the market. What limits Yixing’s development is not other enterprises or the market, but the company itself."

"The main limitation is the total value of energy transmitted, but technology is not a problem."

"If nothing unexpected occurs, Yixing Company will continue to grow better and larger. They possess infinite potential and may even occupy most of the automobile market."

"As for the field of space exploration, Yixing’s future is still uncertain, as the profitability of this sector has no precedent before them. They are like Musk’s SpaceX but possess more advanced technology than SpaceX, only lacking the corresponding heritage."

Bell Index Company evaluated Yixing’s market value at 135 billion dollars.

Domestic assessment companies rated Yixing’s market value even higher, but unfortunately, there are no globally influential assessment firms in the country. Data produced by related domestic firms are hardly accepted worldwide.

It must be acknowledged that in the field of data assessment, top international firms hold more authority, and their data receive more recognition, often having a century-long heritage and rarely altering their data due to external factors.

billion dollars—a truly astonishing figure.

A comparison would make it clear, as the top international automobile company, Baoma Group, has a market value of about 43 billion dollars.

The famous Ford Automobile’s market value is approximately 37 billion dollars.

Thanks to space light energy transmission technology and Unlimited Power Automobiles, Yixing Company is considered to have tremendous potential, quickly surpassing the market values of leading car manufacturers, even by several folds.

Calculated in dollars, it has entered the ’hundred billion-dollar club,’ and in yuan, it is fast approaching the ’trillion-yuan’ range.

——

Yixing Company’s disclosure of its financial status was clearly aimed at the upcoming financing round.

The company has a very clear strategy for the next round of financing. They are seeking not just capital, but also to exchange shares for the technology they desire, with software technology being the most crucial.