Chapter 1036 King Yu Company
To deal with the unlucky guy surnamed Cai, just fight him to the end.
The financial crisis is dangerous, but of course it is also an opportunity.
Samsung saw an opportunity.
And soon came up with a trick that later became famous all over the world - counter-cyclical investment!
After the financial crisis broke out, Samsung held an internal meeting and made a major decision to take advantage of the opportunities brought by the crisis to accelerate production capacity expansion and expand market share in the fields of panels and memory chips.
It can be summed up in two words.
Throw money.
With this opportunity, Samsung hopes to continue to advance in the field of chip foundry and ultimately achieve the goal of squeezing out TSMC.
The South Korean government is also actively cooperating, spending US$14 billion to support the development of Samsung, LG and Hynix.
As the international financial crisis rages around the world, in the field of semiconductors, Samsung is conquering the international market.
After the financial crisis, the panel and memory chip industries in the Wanwan region declined rapidly.
Only TSMC grew against the trend and withstood Samsung’s attack.
In the competition with Samsung, the far-sighted Zhang Zhongmou won!
However, the battle is far from over.
Technically superior to the opponent, he also suppressed his opponents in the competition. TSMC's top brother has a smooth journey.
However, the arrival of a new era gives Samsung a good opportunity to catch up.
Apple under the leadership of Joe has brought the smartphone era to the world.
Before Apple, Samsung’s foundry business performance was not outstanding.
In 2009, Samsung's foundry business ranked 9th in the world, one-third that of SMIC and about one-thirtieth that of TSMC.
With the size of Samsung, it can basically be ignored.
In 2007, Jobs released the first-generation iPhone, with a 3.5-inch full touch screen, metal body and iPhoneOS operating system, which truly opened the door to the smartphone era.
After the launch of the first generation IPhone, it was like opening the door to the future of smartphones.
Soon Apple began to realize the biggest difference between smartphone SOC and feature phone SOC.
Smartphones have almost endless demands on mobile phone SOC performance.
In order to meet the performance "black hole" of smartphones, Apple will develop its own mobile phone SOC.
Apple can handle the design itself, but the key is who will do the manufacturing?
This first place was snatched away by Samsung.
Apple's iPhone 3G uses Samsung's SOC processor - S5L8900.
Apple’s first contract (A4 chip OEM) was given to Samsung. Until the A7, Apple has cooperated with Samsung for OEM production.
TSMC also wanted to have a taste of ‘Apple’, and the turning point came with the A8 chip.
As long as the hoe is wielded well, there is no corner that cannot be dug down.
Zhang Zhongmou personally flew to the United States to secretly meet with Jobs and Cook, and finally pried the OEM order from Samsung.
Apple’s A8 uses TSMC’s 20nm process technology.
Before meeting Apple, TSMC’s old customers were Qualcomm, NVIDIA, etc. TSMC led by Zhang Zhongmou relied on the speed of implementing Moore’s Law to retain customers.
Everyone in the industry knows that TSMC has a famous three-shift system, working around the clock and responding at any time.
Zhang Zhongmou will never slack off in occupying the top of the mountain by taking OEM work to the extreme and leaving no chance to his opponents.
In 2008, General Liang Mengsong resigned due to personnel issues at TSMC and switched to Samsung.
After joining Samsung, Liang Mengsong boldly innovated and decided to skip 20nm directly and upgrade from the 28nm process to 14nm.
Although many people thought it was impossible at the time, Liang Mengsong was indeed a giant in the industry, and it finally happened.
This move enabled Samsung to instantly surpass TSMC's 16nm process and have the most advanced process technology.
It also made Samsung change from a chaser to a leader for the first time.
With its lead in 14nm, Qualcomm, which has always had a good relationship with TSMC, switched to Samsung on the 14nm node.
Since then, Samsung has become an inescapable competitor for TSMC in terms of advanced manufacturing processes.
The chip foundry industry has also changed from one company dominating the market to two powerful companies competing for hegemony.
Xu Liang’s plan is for SMIC to replace Samsung and become the other pole besides TSMC.
First, increase market share through counter-cyclical investment and squeeze out competitors.
Through technology investment, we will continue to move towards advanced manufacturing processes.
"Mr. Zhang, the situation is already like this.
If we continue to think of showing mercy, SMIC will lose its future.
So, take action when it's time to take action.
It’s just litigation, both Hanhua and Hongyan are good at it.
TSMC won’t win that easily. "
Zhang Rujing nodded slightly.
"Another thing Mr. Zhang may not know is that Hanhua is also the major shareholder of Ames, the world's leading lithography machine manufacturer.
Since 2001, we have continued to increase our holdings.
Qinglong Fund now holds 14.2% of Ames’ equity and holds US$1.7 billion in convertible bonds of Ames.
At the same time, he also holds two board seats on the board of directors of Ames.
So in terms of equipment, SMIC enjoys the same advantages as TSMC. "
In fact, if you include the shares of ASML held by Hanhua's London office, Hanhua's New York office, etc., Hanhua's shareholding in ASML has approached 20%.
It is the absolute majority shareholder.
Zhang Rujing was a little surprised.
As an industry insider, he certainly knew that Hanhua was the major shareholder of Ames, but he did not expect to hold so many shares.
In order to avoid unpredictable risks, most of Hanhua's shares in Ames are held in a shell.
Not specifically researching, I don’t know how much equity Hanhua actually holds.
If Hanhua controls SMIC, it will indeed give the company a great advantage in equipment.
Thinking of this, the resistance in my heart is much less.
"Mr. Xu, this matter is very important. I hope to discuss it with people in the company when I get back."
"Of course.
But I hope it won't take too long. ”
"In a week at most, I will give you an accurate answer."
"No problem."
At this point, everything that needs to be said has been said, and Zhang Rujing is ready to leave.
Xu Liang personally delivered it to the door.
Zhang Rujing stopped.
"Mr. Xu is really prepared to invest US$10 billion in SMIC?"
"Of course. I not only said this in front of Mr. Zhang, I also mentioned it yesterday when I faced the leader of Modu Zhou. Zhang If you don’t believe me, Sir or someone from SMIC, you can consult Leader Zhou.”
Zhang Rujing nodded.
As leader Zhou, Xu Liang could not fool him on this matter.
After saying ‘goodbye’, Zhang Rujing strode away.
"Mr. Xu, this Rujing looks a bit stubborn and may not agree."
Li Jinling said.
“He had no choice.”
The reason why Xu Liang was still willing to say hello was entirely because he gave the other party a certain amount of respect because he was a rare talent.
Otherwise, he could just follow the contract and end up controlling SMIC.
"Go and ask if Zhao Ronghua is here."
Li Jinling nodded and turned to leave.
It didn’t take long before I came back. "Mr. Xu, Mr. Zhao has arrived."
"Let her in."
Soon, a middle-aged woman with a capable temperament wearing a dark purple suit with small lapels, black pencil pants, and short ear-length hair walked in.
"Mr. Xu."
Pointed to the sofa opposite.
“Sit.”
Wait for the other person to sit down.
"I have read the semi-annual report of Yuwang Company. The sales revenue is 190 million Chinese dollars, and the net profit from the main business is 41.26 million Chinese dollars, which is very good."
The net profits of water purifier manufacturers on the market are generally between About 12%, while Yuwang Company’s net profit has reached 20%.
Zhao Ronghua was relieved.
Yuwang Company was developed on the basis of Delong's Xianghuo Torch Environmental Protection Technology and Ouchen Environmental Protection Technology Co., Ltd., and uses RO reverse osmosis technology to produce civilian water purifiers and filter elements.
RO reverse osmosis technology is not a fancy thing. It is a membrane separation and filtration technology that uses osmotic pressure difference as power.
Originated from the research on aerospace technology in the United States in the 1960s, it was gradually transformed into civilian applications and has been widely used in scientific research, medicine, food, beverages, seawater desalination and other fields.
RO reverse osmosis membrane pore size is as small as nanometer level.
Under a certain pressure, water molecules can pass through the RO membrane.
The inorganic salts, heavy metal ions, organic matter, colloids, bacteria, viruses and other impurities in the source water cannot pass through the RO membrane, thus strictly distinguishing the permeable pure water from the impermeable concentrated water.
It is not difficult to make a water purifier in the country.
Because the reverse osmosis membrane, which requires the most technology and is the most critical, is imported by everyone.
Xiang Huoju and Ou Chen had a certain foundation, but they just wanted to make quick money and failed to do quality control, which directly ruined their production.
As soon as Zhao Ronghua took office, his first step was to improve the modern enterprise management system.
After the framework is set up, let’s start dealing with people.
One warning, two direct expulsions.
If you don't abide by the company's rules, you can still be regarded as a good example and it won't cause too much turmoil.
The iron-blooded and high-pressure management instantly wiped away the atmosphere of laxity, superfluity, nepotism, and unfair rewards and punishments left over from the Delong era.
With these three measures, the number of people in Yuwang Company’s management team has been reduced by a quarter, administrative costs have been saved by one-third, and efficiency has nearly doubled.
The newly launched Yuwang water purifiers and filters rely on Xu's sales channels, such as Fuhua's fine decoration houses and the home appliance stores of Kelong Supermarket.
Open the market quickly.
But after eating up all the traffic brought by Xu's channels, King Yu's development has reached a certain bottleneck period.
“Without your strong support, King Yu would not be able to develop so fast.” Zhao Ronghua said modestly.
"There is no need to say polite words. Just look at you and you will know that you have nothing to do without going to the Three Treasures Hall. Let's talk about it."
"You have a sharp eye."
Zhao Ronghua took out a document and handed it over.
"Mr. Xu, this is the inventory of all water purifier products accumulated by Xiang Torch and Ou Chen during the Delong era. The total value is about 54 million.
60% of the products have no quality problems, and the remaining 40% of them have quality problems.
My idea is to take out all these water purifiers and smash them.
This will not only enhance the awareness of factory employees to strictly control product quality, but also improve the quality of the products. Also do some marketing for the company.”
This kind of thing is not new.
Haier, which did this for the first time, reaped the biggest dividends.
Delong also did this for a while after acquiring Xiang Torch, using a road roller to crush all the unqualified spark plugs.
Now King Yu does this again.
It will have a positive impact on employees, and it can indeed strengthen their quality awareness, but it is basically impossible to achieve the effect of Haier.
“I agree to this.”
After saying 'thank you', Zhao Ronghua continued.
"Mr. Xu, I hope the head office can support us with a sum of money."
"You also want to acquire companies in the same industry?"
"No."
The affirmative answer surprised Xu Liang.
During this period, he spent a lot of money on his subsidiaries. Fengshou and Denong made great efforts to acquire the same industry and continue to expand. Even NVC Lighting, which holds 50% of the shares, came to beg for help, thinking of acquiring Opple.
She actually gave up?
Zhao Ronghua explained quickly.
“At present, all domestic water purifier companies only produce. The better ones will do some research and development, but generally they don’t pay enough attention to after-sales.
Whether it is Angel, which currently has the largest sales volume , or the second Qinyuan.
They basically follow the dealer model.
Although this model can quickly spread products across the country, it will also cause a problem.
Dealers will not feedback accurate customer information.
The water purifier is different from other products in that its filter element needs to be replaced regularly.
If we cannot accurately grasp customer information, we cannot provide timely and thoughtful after-sales service. Many customers use water purifiers beyond the expiration date without knowing it.
When a problem occurs, blame all the reasons on the manufacturer.
The original loyal customers were lost just like this.
There are also some dealers who maliciously replace high-quality filter elements with inferior filter elements in order to make money.
They take the benefits, but our manufacturers bear all the disadvantages.
Directly operated stores are the best way to solve these problems.
Offline stores with a good and unified decoration style can also promote the 'Wang Yu' brand to the greatest extent.
Combining online and offline, try to sell a water purifier and add a loyal user. ”
Xu Liang showed appreciation.
There are many excellent professional managers in the world, but not many can have a long-term vision and work down-to-earth.
“This is Yu Why does Wang’s net profit margin reach 20%, almost double that of the same industry? ”
Zhao Ronghua nodded confidently, "What we sell is not just products, but also meticulous and thoughtful services."
"Now there are 33 direct stores owned by King Yu, right?" Xu Liang asked with a smile. road.
“Yes. But with King Yu’s current revenue and profits, it is difficult for us to quickly expand the scale of our direct-operated stores while taking into account research and development, so we can only ask you.”< br>
“How much money do you want?”
“200 million.”
"200 million? Chinese coins?"
"Yes."
Xu Liang sighed slightly, "Of all the people who find me, you ask for the least money."
< br>"Yuwang is a new company. With our current ability, we can only absorb 200 million. No matter how much we have, it will just pile up on the account and not turn into revenue. It is of little significance."
See Looking at the mature and calm woman in front of him, the admiration in Xu Liang's eyes became more intense.
"I'll give you the money, but there's one more thing you need to be responsible for."
"Please tell me."
"A few days ago, Hongyan has officially acquired Supor, a cookware company. It is planned to integrate Supor, Yuwang and NVC Lighting into a group company.
I want you to be the CEO of this group."
Zhao Ronghua's face showed shock, Hongyan acquired Supor. Although the matter has not been officially made public yet, as a senior executive of the company, she has known about it for a long time.
But she didn't expect that she would have the opportunity to take charge of this high-quality company with revenue of more than 2 billion Chinese dollars and rapid development in the field of cookware.
(End of this chapter)