He is eager to learn about mobile phone research and development because of a joint investment project between Huagu International and the province.
Fujian Kanglong Electronics plans to invest in the construction of a large-scale mobile phone factory integrating R&D and production in East China. The total investment is expected to reach 1 billion.
Mobile phone research and development and production are a combination of high-tech and labor-intensive industries. Jinling started late in the high-tech field, and there is no company that can take advantage of it.
In order to diversify the industry and solve the employment problem, the province specially sent a team to contact Kanglong Electronics and won this project.
After preliminary inspections and discussions, the province finally came up with a plan, which is to build the most advanced mobile phone R&D and production base in China with joint funding from Fuzhou Kanglong Electronics, Huagu International and the government.
Huagu International attaches great importance to this cooperation and is very urgent. Jiang Ming is one of the leaders of this project.
What Yi Xiaohai said made Jiang Ming realize that the water in mobile phone research and development was much deeper than the group had estimated.
"Kanglong Electronics is very large, with hundreds of R&D personnel alone. The company is also well-known in Fuzhou, so there should be no problem with its strength"
"Mobile phone research and development is really not something that big companies can influence"
Nokia, the giant in the mobile phone industry, failed to keep up with the era of smart phones. Within a year, the market was robbed and it eventually collapsed: "If mobile phone research and development cannot produce products, no matter how big the company is, it will be useless"
Jiang Ming is not worried about this: "Kanglong Electronics promises to start mass production within one year"
"Have they produced results?"
"They gave us a concept model, but it cannot be mass-produced. Now we need to study how to mass-produce it"
"Since we already have a concept model, we shouldn't suffer any loss in investment at this time We should be able to produce a finished product with tens of millions, and then we'll just think about how to sell it. If the advertising is good, we should be able to get 100 million in the first year." Easy¡¡"
Jiang Ming glanced at Yi Xiaohai: "Do you think the largest mobile phone R&D and production base in China can be acquired with tens of millions"
"This" Jiang Ming's question really stopped Yi Xiaohai.
The largest mobile phone R&D and production base in China cannot be solved with just tens of millions.
¡°But the technical content of mobile phone research and development is indeed not high now. In addition, the concept phones have been released, and they are very close to the finished product, so the investment amount should not be too large.
But judging from Jiang Ming¡¯s appearance, the investment amount seems to be quite high.
"Isn't there 200 million or 200 million?"
Yi Xiaohai feels that according to current prices and R&D progress, an investment of 200 million is already relatively high. Any more would be risky.
"One billion"
Yi Xiaohai was shocked by the figures reported by Jiang Ming: "Don't you tell me, that R&D base requires an investment of 1 billion?"
Jiang Ming nodded: "That's 1 billion"
"Bullshit" Yi Xiaohai cursed without even thinking.
Now in the 1990s, it is not easy to invest billions or tens of billions in 20 years. An investment of 1 billion, let alone a research and development center, is more than enough to invite all the high-end talents in the domestic mobile phone communications industry.
And the domestic market is so big. If Yi Xiaohai remembers correctly, one of the best mobile phone brands in China sold 600,000 mobile phones in 2000, ranking first in sales of domestic brand mobile phones.
What is the profit of their business?
After deducting personnel wages, establishment of sales outlets, taxes, etc., the real profit of a mobile phone is about 500, and the annual profit is 300 million.
Whether Kangron Electronics' mobile phones can reach that level is unknown. Even if it can reach 700,000 sales, it will pay back in four years. During this period, it will invest money in developing new models and developing sales channels. It will take almost five years before it really starts to make money. .
The risk of this kind of investment is high and the return is not proportional.
Yi Xiaohai now finally understood why Jiang Ming attached so much importance and was so cautious.
"Brother Ming, I think it's best for you to persuade your grandpa. The amount is too high and it's not a wise choice"
"The situation of the group is relatively bad. The Young People's sect advocates the overall transformation of the group, and they are the ones who promoted this cooperation. Grandpa made the decision after weighing it"
Jiang Ming is opposed to this investment, not only because of the huge investment, but also because they have no understanding of the mobile phone communications industry, and the group does not have complete sales channels. Once the mobile phones are produced, how to sell them is another problem. .Yi Xiaohai¡¯s words strengthened Jiang Ming¡¯s determination to oppose.
"Just wait a moment, I'll show you some materials"
Jiang Ming stood up from the pool, went out to find his assistant, got a document, and handed it to Yi Xiaohai: "Take a look"
Since Yi Xiaohai knew so much about mobile phone R&D and production, Jiang Ming simply showed the information to Yi Xiaohai. The more suggestions Yi Xiaohai gave, the greater the chance that he would convince his grandfather.
Yi Xiaohai took the document handed over by Jiang Ming and opened it.
This is a tripartite cooperation agreement.
Fuzhou Kanglong Electronics, Huagu International and the government jointly funded the establishment of a new company to jointly manage the mobile phone production and R&D base.
The Jinling government provides a 1,500-acre commercial land for the construction of a mobile phone R&D and production base. This land is worth a discount of 70 million, accounting for 7% of the new company's shares.
?Fuzhou Kanglong Electronics invested 150 million, plus technology shares, accounting for 22% of the new company's shares.
Huagu International invested 850 million, accounting for 71% of the shares.
After the cooperation, the government will establish a co-managed account and the three parties will jointly supervise it to ensure the safety of funds.
After Yi Xiaohai briefly browsed through it, he found that in addition to the excessive investment amount, Huagu International took the greatest risk.
At the back of the document, there is a brief introduction to Fuzhou Kanglong Electronics, which has no practical use, but the company that controls Kanglong Electronics is an offshore company, which makes Yi Xiaohai wary.
¡°Have you checked the qualifications of this company?
"The government has inspected it, and the group has also sent people to inspect it. The company there now has more than 4,000 employees"
"Do you know the proportion of researchers and what research results they have produced?"
"These materials and prototypes are all at my grandpa's place"
Yi Xiaohai stared at the offshore company on the document in trance.
In this era, due to the poor communication of information, there have been many scammers who specialize in defrauding companies and governments.
Their method is very simple. They set up a shell company overseas, acquire a bankrupt factory in the mainland, and then get some high-end products from abroad, OEM them and turn them into their own R&D products.
Then they will go to the government and describe the future prospects of the product as very good, and then build a factory. Once built, it will be the largest in China and the largest in Asia.