Rebirth 99 to become a car giant

"Everyone should be impressed that something very special happened to our group last year."

"That means Nanshan Carbon Fiber has been sanctioned by the United States!"

"All Nanshan Carbon Fiber products cannot be exported to the United States. This actually has a huge impact on us."

"But under the command of Mr. Cao and the leadership of Professor Zeng Jianying, Nanshan Carbon Fiber quickly reversed this unfavorable situation. It not only quickly started construction of a new T800 carbon fiber factory, but also opened up other overseas markets."

"Throughout 2009, Nanshan Carbon Fiber achieved an operating income of 16 billion yuan, becoming the world's largest carbon fiber manufacturer."

"In the future, with the commissioning of the new factory, Nanshan Carbon Fiber's production capacity will be further expanded, its market share will be further expanded, and it will make greater contributions to the development of the group."

As Dong Shengnan said this, he glanced at Zeng Jianying, who was sitting near Cao Yang.

Over the years, Nanshan Carbon Fiber has won many awards.

The company's products are also directly supplied to aerospace companies, making it a very special presence in the country.

To put it bluntly, just relying on a subsidiary company like Nanshan Carbon Fiber, Nanshan Group’s status in China will not be low.

Carbon fiber, a strategic product, is extremely important to the development of aerospace.

Not to mention that many high-end sports products also need to use carbon fiber.

"The equipment business has always been a business that Mr. Cao attaches great importance to. Although its scale cannot be compared with some other business departments, its importance is not low at all."

"Throughout 2009, Nanshan Equipment's revenue reached 15.5 billion, a year-on-year increase of 121%."

"Thanks to the future development of the automotive industry, various OEMs have expanded their production capacity, and the demand for equipment will also rise to a higher level. The future prospects of Nanshan equipment are still very worth looking forward to."

Compared with several other business divisions, the equipment business, once one of the group's three major businesses, seems to be performing less than stellar.

However, no one dares to underestimate Nanshan Equipment. It is a company that has really mastered the core technology.

Judging from the proportion of R\u0026D expenses in sales, except for emerging companies such as Nanshan Semiconductor and Nanshan Battery, the proportion of R\u0026D expenses in other business divisions cannot match that of Nanshan Equipment.

The difference is not even a little bit.

From here we can also see how much Cao Yang attaches importance to Nanshan equipment.

Sometimes, even if the research and development of some equipment is not particularly meaningful from an economic perspective, he supports Pan Jinxing to spend a lot of money to develop some special equipment.

Moreover, Nanshan Equipment has a R\u0026D team of several thousand people. If there is no continuous research and development of new equipment, the innovative spirit of the technical team will soon weaken.

This is definitely not a good thing for Nanshan Equipment.

"In addition to Nanshan equipment, Nanshan Mold, which has a long history, also achieved a 123% increase last year, with sales reaching 7.6 billion yuan."

"In the past few years, China's mold industry has developed rapidly, and the technical level of some other mold manufacturers has also grown rapidly."

"Many companies can already produce some mold products that are not very technical."

"In the face of such a fiercely competitive market, it is commendable that Nanshan Mold can achieve this growth."

Dong Shengnan naturally expressed his anger with Cao Yang in advance about some of his comments about various companies.

Otherwise, even if she was not afraid of offending others, she would not dare to make such comments like this.

Especially she also knew that He Qingquan, the general manager of Nanshan Mold, was called Master Cao Yang.

"There is also Nanshan Bearing, which was previously separated from Nanshan Gearbox and Nanshan Auto Parts. Its performance last year was also very impressive, and its turnover was equal to that of Nanshan Equipment."

"Bearings are a very basic quasi-standard part. They are not only used extensively in our gearboxes and engines, but are also used in many other places on the entire vehicle."

"After establishing Nanshan Bearing independently, it is now the largest bearing company in China. However, compared with giants such as SKF and NTN internationally, there is still some room for improvement."

Bearings can also be considered a flagship product of Nanshan Group.

He has made considerable contributions to the company over the years.

In particular, the research and development of high-speed rail bearings has brought Nanshan Bearing out of the industry and become known to more Chinese people.

"The company I want to report to you next, although its turnover is only 4.9 billion, is likely to be the company with the fastest growth this year, and that is Honor Mobile."

"Thanks to the excellent performance of HONOR 3G, Honor mobile phones, which just launched new products last year, sold 1.08 million units of HONOR 3G, and this sales volume is growing rapidly."

"Previously, due to production capacity constraints, our HONOR has always been in short supply."

"Now the production line that BYD has built for us is under intensive preparation and will be officially put into production after the Spring Festival."

"When the time comes, our Honor mobile phone will bring unprecedented impact to the entire Chinese mobile phone industry!"

Dong Shengnan knows Cao Yang relatively well, and she naturally knows how much Cao Yang attaches importance to Honor mobile phones.

If there is any business unit that can have an impact on Xingchen Auto's status in the future, it must be Honor Mobile.

At least Dong Shengnan thinks so.

Xia Qingqing, who was originally feeling a little depressed, felt inexplicably much better after hearing Dong Shengnan's words.

Naturally, she can feel how much everyone thinks of Honor phones.

That's enough!

By this time next year, the performance of Honor mobile phones will not be like this.

"The performance of Nanshan Robot was also very impressive last year."

“Not only did they make a splash at the Japan International Robot Exhibition, but they also sold their robot products to many customers at home and abroad, achieving a 152% year-on-year increase in turnover, and their turnover also successfully reached 4 billion. "

"Nanshan Robot's most famous product is welding robots. As various OEMs continue to build new factories, various stamping parts companies also need to expand production simultaneously. By then, the demand for welding robots will reach a whole new level."

Li Shigui quite agrees with Dong Shengnan's evaluation.

As the general manager of Nanshan Robot, he also specially summarized and sorted out the development status of various potential customers and was full of confidence in the market in 2010.

"Last year, Nanshan Battery was closely following Nanshan Robot in terms of revenue, and its turnover reached 3.1 billion."

"Although compared with other business units, this result is not particularly outstanding, but with the rapid development of China's new energy industry, the future of Nanshan Battery also makes everyone full of expectations."

"According to Mr. Cao, Nanshan Battery may become on par with Xingchen Automobile in the future."

When Dong Shengnan said this, he couldn't help but glance at Lin Cheng.

She was really not sure that the future of Nanshan Battery could be compared with Xingchen Automobile.

What kind of electric vehicle market is needed to support this result? "In addition to the various business divisions just mentioned, other business divisions such as Nanshan Fasteners and Nanshan Chemical are also in rapid development. Although the overall turnover may not be particularly outstanding, the growth rate is very gratifying, which is a good example of the rapid development of the group. Development has made its own contribution.”

At this point, Dong Shengnan's speech basically ended.

As in previous years, she did not say anything about Nanshan's investment situation.

She didn't even talk about the situation of Nanshan Group's shareholding companies in particular.

Companies such as Nanshan Hongqi and Nanyangcheng Commercial Vehicles can actually contribute some turnover.

Not to mention other companies such as Autohome, Nanshan Film and Television, and Weibo.

It can be said that the 529 billion turnover she just mentioned is a conservative figure.

“Everyone should be deeply impressed by Minister Dong’s explanation just now!”

At this time, it was naturally Cao Yang's turn to speak.

"I once said that the group will hit the 1 trillion revenue mark and become the largest private enterprise in China."

"This goal remains unchanged."

"But the time to achieve the goal is not 2020, nor 2015, but 2012."

"Next year, China's automobile industry is expected to be in a state of rapid development. Whether it is Xingchen Motors, Nanshan Transmission, Nanshan Engine and Nanshan Auto Parts, they are all expected to maintain high growth."

"In addition, after the initial production capacity problem is solved, Honor mobile phones will also usher in explosive growth."

"With the rapid advent of electrification, Nanshan Battery's business is expected to experience a blowout growth, and the first car model in the future will be officially launched."

"At the same time, Nanshan Semiconductor, which the group attaches great importance to, will also officially start production of the wafer factory and officially supply products to the group's internal customers and external customers."

"Against this background, the group's revenue growth target for 2010 is no less than 33%, reaching the RMB 700 billion mark."

Although the goal announced by Cao Yang seems very challenging.

An increase of 33%!

This is not a goal that ordinary companies dare to set easily.

The most important thing is that the turnover directly reached 700 billion yuan, which is very exaggerated.

However, the executives present did not feel panic this time. After all, the higher growth rate last year had been achieved.

Maintaining high growth for a certain period of time is not a problem normally.

Everyone even thinks that the economic development enthusiasm in 2010 is even more exaggerated than in 2009.

After all, affected by the financial crisis, China's automobile market was still in a state of negative growth at the beginning of 2009.

But now it's completely different.

In addition, the situation in the international market has also improved significantly.

Although it cannot be said that the United States and other countries have recovered from the impact of the subprime mortgage crisis, it is relatively certain that the economy has begun to move upward after entering a trough.

In this way, Nanshan Group's export business will definitely usher in a new growth.

Under the influence of many parties, achieving a turnover of 700 billion yuan in 2010 is not an unachievable goal.

"In order to continue to maintain a leading edge in the next step of development, the group's various business divisions can continue to boldly expand their production capacity in 2010."

"The construction of Xingchen Motors' new factory will be accelerated to create a total production capacity of 600,000 to cope with the production of new models and the increase in overall sales."

"Nanshan Transmission will develop an annual production capacity of 10 million gearboxes, a capacity of 15 million units in the next three years, and eventually develop towards a production and sales of 20 million units."

As a business with the strongest domestic strength and global competitiveness, Cao Yang is full of expectations for the development of Nanshan Transmission.

Although the future is the era of electric vehicles, it is still not that fast for electric vehicles to completely replace traditional fuel vehicles.

The Chinese market alone will have a scale of more than 20 million vehicles in the future. Considering the overseas market of tens of millions, the development space of Nanshan Transmission is still very large.

Of course, the construction of production capacity must be combined with the sales volume of the year, and it is impossible to go directly towards the ultimate production capacity as soon as it is started.

However, even so, as the boss of Nanshan Gearbox, Ji Hua is a little excited.

Production and sales of 20 million units!

If this is really realized, Nanshan Gearbox alone will become a company with a scale of hundreds of billions.

No matter where it is placed, it is very capable.

The most important thing is that Nanshan Transmission has basically completed the research and development of its main products, and will be more refined and improved in the future.

This means that R\u0026D investment can be greatly reduced and profit margins can be greatly improved.

By then, Nanshan Transmission's profit margin may be raised to a new level.

Become a person within the group who can significantly increase the business scale and make a lot of money.

"In addition to Nanshan gearbox, the engine factory can also further expand production."

"Although each OEM is building its own engine factory, we still have unique advantages for products above 2.0T."

"Even for 1.5T products, due to our huge advantages in scale and parts supply, the cost is lower than that produced by most manufacturers."

"So you don't need to be particularly worried about the prospects of Nanshan Engine. It will definitely continue to grow at least in the next five years."

"We will establish a production capacity of 6 million units within this year and eventually move towards a scale of 8 million units."

Relatively speaking, the production capacity target of Nanshan engine is not as exaggerated as that of Nanshan gearbox.

After all, as everyone has seen, companies such as BYD, Chery, and Great Wall are all developing their own engine production capabilities.

Will not always complete the purchase of products from Nanshan Engine.

This will definitely have a certain impact on the development of Nanshan Engine.

However, from the perspective of making money alone, Nanshan Engine may be more profitable in the future.

Because other manufacturers need to pay money when they produce technical products authorized by Nanshan Engine.

And they generally produce low-end products, while high-end products are purchased from Nanshan Engine.

The more high-end the product, the higher the profit margin.

For example, if the profit margin of a 3.0T engine is not set at more than 30%, how can it be embarrassed to sell it?

As for manufacturers who want to buy V8 or W12 engines, the profit margin must be at least 50%, or even 100%.

Otherwise, don't buy it.

Anyway, consumers who can afford to install this type of engine are not short of money.

If the engine is expensive, the entire vehicle will be too.

"As the group's layout in the material field, the development of Nanshan Special Steel, Nanshan Carbon Fiber and Nanshan Chemical in 2010 is also critical."

"Now Nanshan Special Steel has a production capacity of 1 million tons of special steel. This year we will strive to expand the production capacity to 2 million tons. In the future, we will basically use this level of production capacity to enhance the competitiveness of high-end special steel."

China has never been short of steel production capacity.

But what's missing is high-end products.

Cao Yang did not expect Nanshan Special Steel to have a production capacity of millions or even tens of millions of tons.

That way, you will earn less money.

Nanshan Special Steel mainly produces products that cannot be produced by other manufacturers, or products that need to be imported.

Baosteel, Anshan Iron and Steel and other companies can produce it, so it doesn't make much sense to compete with them for the market.

However, Cao Yang has different ideas about Nanshan carbon fiber.

"Currently, our Nanshan carbon fiber is the most technologically advanced in the world. In addition to completing the expansion of the T800 carbon fiber factory, we also want to extend the research and development of carbon fiber composite materials."

"If most carbon fibers are further processed into composite materials, the application market will be wider and the various properties of the materials can be further improved."

"In the future, the processing of carbon fiber composite materials will be the focus of Nanshan Carbon Fiber's development."

Now Nanshan Carbon Fiber already has the world's leading production capacity of T1100 carbon fiber. It is very difficult to continue to improve in a short period of time.

Therefore, how to bring out the capabilities of T800 and T1100 is something that needs to be worked hard in the next few years.

As long as composite materials are done well, the significance is no less than developing a new high-end carbon fiber.

Many parts on civilian airliners and fighter jets are processed using carbon fiber composite materials.

This also involves the cooperation between Nanshan Carbon Fiber and Nanshan Chemical.

As Nanshan Chemical, which is positioned relatively close to Nanshan Special Steel, its presence has never been very high.

Now is the time for Nanshan Chemical to show its talents.

For example, resin, everyone thinks it is just plastic. What technical content does it have?

In fact, it’s not the same thing at all!

High-end resin materials have a lower localization rate than special steel.

For example, the tear duct plug used to treat dry eye disease is a very small resin material.

Just a material that weighs less than a gram costs several hundred yuan.

China cannot produce various high-performance nylon materials.

There are still many places worthy of Nanshan Chemical’s efforts.

"Among the three material factories, Nanshan Chemical is relatively small. The next step can be to quickly expand the number of R\u0026D personnel to form strong competitiveness."

"The group now has more than 90,000 employees. This year it will definitely exceed 100,000, and it is not impossible to even exceed 120,000."

"Don't worry that the proportion of R\u0026D personnel is too high, as labor costs will be very high."

"In the end, a dollar invested in R\u0026D can be exchanged for 10 dollars in income. This business is still worth doing."

The group earned 100 billion yuan last year, and it must spend some of it as soon as possible.

Otherwise, Lingnan Province and Yangcheng City would probably have a lot of ideas on their books.

Basic materials research is very expensive. In the past, Cao Yang didn't dare to be too bold, but now he has enough confidence.

And many of Nanshan Chemical's products are also related to the semiconductor industry.

For example, things like photoresist can only be left to Nanshan Chemical for research.

If Cao Yang wants to realize the localization of the entire industry chain, there is a lot of work to be done.

Even for the campus recruitment in the second half of this year, he was thinking about a large-scale recruitment of 20,000 people.

"I won't go into detail about Nanshan's equipment. As long as you can't find a suitable domestic manufacturer to purchase the equipment that is needed for the development of each business division of the group, you can consider purchasing it yourself."

"The equipment industry is the most vulnerable to being stuck, so we must not take it lightly."

"There is no need to save money that should be spent. The research and development and use of various new technologies can also be boldly promoted."

The higher the level of industrial development, the higher the requirements for equipment.

For this kind of equipment, the scale effect is often very low.

Therefore, R\u0026D costs and selling prices are relatively high, and R\u0026D risks are also relatively high.

After all, not every attempt ends up being a product.

In the process of research and development, the cost of simply producing various prototypes is extremely exaggerated.

Let’s take an example of a car that everyone is familiar with to illustrate the gap between prototypes and mass-produced parts.

A car worth RMB 200,000 can cost as much as RMB 2 million during the early stages of R\u0026D and production of trial cars!

Even if you only need one or two trial vehicles, the cost can directly reach the level of 10 million.

One can imagine how expensive it is to engage in research and development.

After all, if you want to produce many parts, you must use molds.

As for the investment in molds, without production support, all of it needs to be amortized on prototypes, and the cost is very scary.

For example, a small bracket requires a mold investment of 100,000 yuan.

If 1 million parts are produced, the mold amortization fee is only 0.1 yuan, the cost of the part itself is 1 yuan, and it will be enough to sell for more than one yuan.

But if you only produce such a small bracket and sell it for less than 100,000, it will be a loss-making business.

100,000 and more than one yuan...

How to compare?

Otherwise, why would so many Chinese companies be reluctant to engage in large-scale research and development?

Without him!

It’s just too expensive!

The key is that even if you burn money, you may not get any output!

As a result, everyone's enthusiasm will naturally be low.

But Cao Yang is not worried. He knows the big development direction. Spending crazy money will usher in rocket-like development and eventually bring huge returns.

This is an advantage that other companies do not have.

"In addition, Nanshan batteries and Honor mobile phones are quite special."

"I won't say much more about Nanshan Battery. I have talked with Mr. Lin many times this month. We just need to develop according to the plan."

"But in terms of Honor mobile phones, the research and development of new products must keep up. The new generation of products is replaced every year. This pace must not be left behind."

"At the same time, tablet products other than mobile phones are also being developed simultaneously."

Cao Yang knew that the next few years would be a big year for smartphones.

Honor phones cannot make a good start and then be surpassed by others.

That would be depressing.

"Our automotive supply chain is relatively complete, but the mobile phone supply chain still relies heavily on imported parts."

"Whether it is independent research and development or supporting domestic suppliers, the goal of 100% localization of Honor mobile phone parts will never change."

"Even if some parts suppliers are in difficulty, we can consider supporting them and provide them with both technical and financial support."

"We must form the Honor mobile phone industry chain, and even make the Honor mobile phone supply chain a unique existence, so that suppliers can be proud to supply Honor mobile phones."

Cao Yang has seen the power of the Apple industry chain and Warwick industry chain in later generations.

Even the Tesla supply chain in the automotive industry is a very special existence.

Done well, the supply chain can also form a brand effect.

People have to go in first even if they don’t make any money.

There are even special classifications on the stock market to attribute you to a certain supply chain.

Invisibly, this is also good news.