Hazan, the deputy general manager, who reeked of curry.
It took another half hour before he finally managed to explain his intentions thoroughly to Meng Hao.
To put it bluntly.
This so-called global agency was about pooling resources for three to five years to capture the global mech market.
Once the market was monopolized, prices would be raised to start generating profits.
This was the same playbook as certain delivery and ride-hailing platforms domestically in Daxia.
Indeed.
There was nothing new under the sun.
Capital behaved the same way everywhere.
During the three to five years of market penetration.
Both Huarong Technology and Tester’s mech division would supply mechs to Tada at almost cost price... a price that had to match the one stipulated in the gambling agreement.
Tada Company’s responsibility would be to subsidize 10% to 30% on top of the purchase cost of each mech to penetrate the global market.
After all.
There were quite a few countries eyeing the 30 billion annual mech market.
Over five years.
The total market would be 150 billion.
According to Tada's calculated cost price, which was 70% of the market price, this amounted to 110 billion US dollars.
Adding Tada Company’s subsidy of about 30 billion.
This meant.
The company that accepted the gambling agreement, along with Tada Company, would lose 70 billion US dollars within five years to capture the global market.
And the mech supplier would lose at least 50 billion US dollars within five years.
All to gain future profits.
Meng Hao mentally drafted a plan and calculated.
If according to Tada Company's Hazan’s estimation, the 50 billion loss would take 10 years or longer to recoup.
Including the 50 billion profit and interest over five years, it would take at least 15 years of maintaining the current market to break even.
For vast capital, a 15-year wait for profitability was not a significant issue.
However, for the vast majority of small and medium-sized enterprises.
Let alone losing for a year, even losing for half a year could lead to immediate bankruptcy.
The immense cash flow of capital was also one of its advantages.
For instance, those domestic delivery and ride-hailing platforms in the past had burned through tens of billions of assets over seven to eight years before gradually becoming profitable.
Meng Hao finally understood Mashek's intention.
This was his overt strategy, aimed at making Meng Hao retreat from the challenge.
After all.
Fifty billion US dollars, converted to Daxia currency, was 350 billion... Huarong Technology's current market value and fixed assets combined were only 1.5 billion US dollars.
“So.”
“Do you accept the gambling agreement?”
Mashek asked Meng Hao with a smile.
As expected.
This brilliant entrepreneur, with one move, struck at the vital point of Huarong Technology.
He was far more astute than the late James of NG Company.
If Meng Hao agreed to participate in the gambling agreement, the meager 1.5 billion funds would not last even half a month.
If he refused, it would mean abandoning the mech industry, not only crippling Huarong Technology’s cash cow but also causing distrust from the public and the nation.
After all.
Most ordinary people did not understand what a gambling agreement was.
All they would see was Huarong Technology withdrawing from the mech market it had pioneered.
Then, all of Meng Hao’s previous efforts would turn to dust.
Mashek's move was indeed both brilliant and vicious.
However.
He had underestimated one thing.
Calculated at a 30% discount on the current selling price of 1 million US dollars for Huarong Technology's Phantom-class mechs, which was 700,000 US dollars, or 3.5 million Daxia coins.
This, at its core, was not a loss!
In fact.
Meng Hao could still make a profit.
He could continue to subsidize and maintain the domestic market price of 1 million Daxia coins per mech.
However.
Meng Hao would absolutely not reveal his trump card easily.
In the video.
He put on an extremely hesitant demeanor.
Compared to Tester’s mech technology, Huarong Technology’s mechs undoubtedly offered higher cost-effectiveness and more black technology.
“I understand now, this so-called tripartite gambling agreement is essentially a winner-takes-all, loser-loses-everything situation!”
“I still feel there isn’t much benefit for us at Huarong Technology!”
“Operating independently, without collaborating with any company, is more in line with our interests!”
Using a strategy of retreating to advance.
Meng Hao adopted a stance of “before you, Tada Company, sweep the global market, we can still make a small profit.”
Mashek curled his lips.
He thought Meng Hao was already intimidated but remained unwilling to give up.
And Tada Company's deputy general manager, Songzan, seemed to want to try and retain Meng Hao.
“The gambling agreement is indeed a winner-takes-all, loser-loses-everything situation…”
“If the two of you participate in this 1 billion US dollar gambling agreement, all products supplied by the losing party will not be returned.”
“However, to add to the stakes, how about this: the winner can additionally receive a decommissioned Annihilation-class nuclear submarine…”
Wow.
India was impressive.
Even retired military equipment like nuclear submarines could be used as stakes.
“You know, Mr. Songzan, we at Huarong Technology are a private enterprise and cannot engage with the military.”
Meng Hao feigned difficulty.
“Oh, my dear Meng.”
“I am very optimistic about your company’s products, which is why I conducted a series of preparatory studies on your information before.”
“For whatever reason, you resist cooperating with the military… but, rest assured, this is a decommissioned nuclear submarine, all military equipment has been removed, and it has been transferred to our Tada Company.”
Tada Company was truly impressive.
They could even acquire military nuclear submarines.
“Consider this, if you win the gambling agreement.”
“You will own the world’s first nuclear-powered… underwater sightseeing submarine!”
“God, what a great gimmick, a private company that can use a nuclear-powered submarine as a civilian sightseeing vessel would surely shock the world.”
It was evident.
Songzan genuinely wanted Meng Hao to participate in the gambling agreement, and even to acquire Huarong Technology’s Phantom-class mechs.
Every word he spoke seemed to strike a chord with Meng Hao.
Using a nuclear submarine as an underwater sightseeing vessel… such an underwater sightseeing facility that could remain submerged for months without refueling was indeed tempting and could establish Huarong Technology as a world-class private company globally.
Whether feigned or genuine,
Meng Hao was indeed tempted.
“Good.”
“Okay.”
“No problem.”
“I will participate in this tripartite gambling agreement.”
Meng Hao finally nodded.
Unlike Songzan's elation, Mashek’s heart was filled with cold laughter and pity.
He laughed coldly at Meng Hao’s youth and impatience, thinking he could withstand the immense later investments by seeing the immediate benefits.
He pitied him for encountering a worthy opponent only to witness his imminent downfall and complete shipwreck in the ocean of commerce.