The Industrial Giant Reborn

"Sheng Chen, here is the information provided by Yanjing No. 1 Electronics Factory. I asked someone to check the last part, and it is basically the same." After getting the relevant information, Lei Shengli brought all the information to Be your own boss.

The scale of Yanjing No. 1 Electronics Factory is really not very big. In the 1970s, sales exceeded 100 million. It can be said to be one of the largest factories in Yanjing. It even has its own hospital and school. But in the 1980s, After that, the entire sales plummeted by half, and large-scale sunk costs already existed, resulting in a loss of 20 to 30 million a year.

Of course, this is a huge loss for a company in Yanjing, but in Lei Shengli's view, it is child's play. Midea's game development also often fails, and generally one failure may exceed this number.

Chen Zhiwen took the information, read it carefully for a while, and said with a smile: "It's really miserable. All the male employees went to the airport and train station to do groceries, while the female employees went to the vegetable market to help."

"Yes, it is said that wages have not been paid for almost half a year." Lei Shengli said: "Because of this, some workers in the original business did not come to work, or did not work when they came, and it became a vicious cycle."

"So Director Qi wants us to give some orders to break this situation? Are their current products still not improved?" Chen Zhiwen asked after putting down the information.

In fact, having your own influence only makes history move forward a little bit. Even without you, Yanjing City’s No. 1 Electronics Factory would still be like this in a few years. It was once the largest electronics factory because it couldn’t keep up with the times. And declined.

It has to be said that those who can lead this kind of enterprise to become bigger and stronger again are all powerful people. Jianlibao can become bigger because it can be said that it has seized the opportunity and made its own domestic beverage. But in the electronics industry, you really have to rely on technology, and technology also requires years of accumulation to overcome.

"In 1981, color TV sets began to become popular in big cities in China. However, domestic production capacity was insufficient and the quality was not very good. In many cases, they could only be imported, including our color TV factory in Wanwan, which was all exported. Some were sold to the mainland, and some were resold from the deep sea in Hong Kong. At that time, the central government issued an announcement to encourage domestic companies to try to make finished color TVs or important parts. Yanjing No. 1 Electronics Factory once tried to develop its own domestically produced radio frequency The annunciator, unfortunately failed, and it cost 30 million yuan to enter. This may be one of the reasons why Yanjing No. 1 Electronics Factory is where it is today." Lei Shengli replied.

"Being able to take the initiative to research and develop, although not successful, is still very good. It is much better than those who dare not research and develop." Chen Zhiwen nodded and said.

When developing a high-tech product, the probability of success is actually very low. Some of the high-tech companies that can be seen in future generations were actually born out of a sea of ​​blood. Behind them, dozens of times more companies went bankrupt due to failed research and development. Or other companies that have declined.

For example, the current Apple company in the United States is famous enough and has sufficient funds. However, at the insistence of Jobs, the new computer developed was a very failed product, which caused the entire Apple company to fall into crisis. If history remains unchanged, Next year, Jobs will be kicked out.

As for various small companies in other fields, there are many such cases. In the game field that Chen Zhiwen is familiar with, how many companies have tried to develop new games, but after they are launched, no one cares about them. There are only a few that can succeed. Chen Zhiwen developed rapidly because of his prophetic golden fingers. However, even now with sufficient funds and rich experience team, many internally developed games still fail. This is a norm. Behind a hit game are dozens of games. There are even more other games with mediocre or even failed results.

Being willing to research and develop is much better than just thinking.

"I asked my friends in Yanjing to find out. In fact, the leaders of the Yanjing Municipal Government and the First Electronics Factory still want to become stronger and bigger. However, their capabilities are really limited and R\u0026D has failed. Last year, a financial subsidy of almost 15 million was given to the First Electronics Factory, but the hole was too big, and it would not work anymore. Yanjing City could not afford the subsidy, but the central government could not subsidize it either. This involved many other things. If a loss-making enterprise compensates for one, others will come to ask for money," Lei Shengli said.

"Can the current No. 1 Electronics Factory be a supplier of Midea?" Chen Zhiwen asked. There are actually many such companies in China, and the electronics industry is just one of them. All walks of life are also facing the impact of reform. If they cannot compete with their overseas counterparts, if they suffer serious losses, they can only turn to the government.

But it is impossible for the government to subsidize at will, and it has fallen into a very vicious cycle. But it cannot be done otherwise. Overseas products must have an impact on domestic companies, so that some companies can get back on their feet through R\u0026D progress, otherwise the entire country technology cannot be developed. Historical development decades later has also proven that this move was correct. Only companies that can survive in the face of competition can grow into new giants, such as Huawei.

However, this process was painful. It was not until the late 1990s, with the improvement of the entire economy, that these problems were slowly and gradually solved.

"Not very good, but they still have the foundation of talent and technology. If we specifically support them, it will not be difficult for them to survive." Lei Shengli replied. He had long understood that the boss must have wanted to help the company, otherwise As a boss, how can I care about an unrelated company? When the Yanjing No. 1 Electronics Factory was at its peak, its annual sales were only 200 million yuan, which was 100 million U.S. dollars according to the official exchange rate. But what is its actual value? Everyone knows it too.

Nowadays, the First Electronics Factory loses 10 million to 20 million yuan a year. According to this year's exchange rate, it is almost several million U.S. dollars. For Midea, this is a drop in the bucket. Any partial order for small electronic parts can be Make up the level.

"Support is not a problem, but this kind of state-owned enterprises have serious root problems. If there is no thorough reform, support is meaningless." Chen Zhiwen said.

"What Chen Sheng means is that we want to invest in it?" Lei Shengli also understood what the boss meant.

"Yes, I have this idea. Just like Hutchison Whampoa's previous investment in domestic auto parts companies with potential, we at Midea also need to rely on the power of capital to prepare for these in advance. However, it is a bit different from the automotive industry. Due to transportation costs and trade protection from various countries, the industry can basically only develop the market locally. But there is no such thing in the electronics industry. In other words, not only the mainland, but also companies with future potential in various countries around the world, we can Investment, especially in Bay and South Korea." Chen Zhiwen said with a smile.

No company can develop smoothly. Even if Midea is unlikely to miss many opportunities because of its golden finger, there is no need to give up the opportunity to invest in other companies. Taken together, it can have high returns and control Many electronic industry chains.

If Midea, which is about to invest in BOE, TSMC, and Foxconn in the future, all become major shareholders, then Midea will become a large investment fund company in the future even if its gaming industry disappears in an instant. , even if you take into account TSMC's sensitivity and have to reduce your shares in the future, you can still get very generous returns.

In addition to these three, there will be many other sub-tier companies in the future. In the foundry industry, it is not just Foxconn, but also R\u0026D companies or operating companies in the United States. There are also many suitable companies. Microsoft is just one of the future giants. Even if each company owns less than 5% of the shares, it complies with the foreign investment management law for high-tech companies stipulated in the United States and can guarantee huge investment returns.

"Previous investments by Hutchison Whampoa basically did not interfere with the operations of the invested companies. Does Midea need to interfere?" Lei Shengli asked again.

Midea has had joint ventures with state-owned enterprises before, but the joint venture is a new enterprise, and the entire staff is new. With the presence of foreign capital, it is basically much easier to manage. But now it is investing in a state-owned enterprise that has existed for decades. Then we have to face various problems in this kind of enterprise. Not to mention state-owned enterprises, it is a private enterprise or a foreign-funded enterprise. Generally, there are many problems with decades of history. Midea's previous overseas acquisitions are actually the same. .

"This is not to interfere, but to ensure that the companies we invest in can continue to operate normally and find their own suitable direction." Chen Zhiwen smiled and said: "In this way, you tell Director Qi that we can give some orders to Yanjing No. 1 Electronics Factory, but the condition is that it needs to accept our investment. In terms of operation, we don’t have to participate, but I need them to have a detailed plan, that is, after Midea helps Yanjing Electronics Factory solve the immediate debt problem, the entire How should the factory be run?”

Originally, he was not in a hurry to invest in an enterprise like BOE. When it failed in the late 1980s, he could invest again after the future BOE management came to power. But the problem was that this state-owned enterprise had problems in advance. , made Chen Zhiwen realize that because of his own reasons, it must have affected the development of the mainland's electronics industry, and even the international market would be different.

At this time, if he didn't intervene, I really don't know whether BOE would appear in the future. History has changed too much. It's not just some big international things, maybe everything has changed. Therefore, Chen Zhiwen decided to do it himself. Intervene first.

If you invest in shares to provide support, and then find a way to put capable people in the position, see if you can recreate the BOE in history. After all, the original BOE was also built by a group of young teams here. As long as these people return Now, there is an opportunity, and if there is a problem in the First Electronics Factory in advance and these people run away to start their own business, then they will most likely miss it.

Again, if nothing succeeds, then I can also obtain part of the equity in a large piece of land near the Third Ring Road in Yanjing. Anyway, the current No. 1 Electronics Factory is not worth much.

"Okay, then I'll inform Director Qi right now." Lei Shengli nodded and agreed. Before investing in a company, it's normal for them to write out a future plan. However, he didn't quite understand why the boss took a fancy to it. This company is gone.