Rebirth: Starting from selling water to become the world’s richest man

Investing in Building a Factory——Longshan Wanyan

“Mr. Li, do you know anything about the emerging industry of VCD?”

Looking at Li Xianshan’s young face, Jiang Wanmeng’s heart was not as calm as it seemed.

He really didn’t expect that the boss of Longshanquan Company, which was popular all over the country recently, looked younger than him. This made him a little worried, fearing that the other party didn’t understand the VCD industry he was talking about.

You must know that Jiang Wanmeng is not a simple person. In 1992, when he was still working at a television station, by chance, he was sent to the United States to participate in the International Radio and Television Technology Exhibition. It was at this exhibition that he noticed an American family

. A company called C-CUBE has an MPEG decompression technology.

Based on his intuition, he immediately thought that using this technology, images and sounds could be stored in a relatively small optical disc, which meant that a high-quality and low-cost audio-visual product could be created.

In this way, he and the Chinese-American Sun Yansheng, the chairman of C-CUBE Company, hit it off and jointly founded Wanyan Company. The company’s name is a word from the names of Jiang Wanmeng and Sun Yansheng.

Wanyan Company was established in 1993, and the first batch of 1,000 VCD machines sold extremely well as soon as they were put on the market. He was just thirty-three years old this year, and it was also the most prosperous year in his life. “Mr. Jiang, I admire you very much

. Thinking of applying MPEG (image decompression) technology to audio-visual products and creating the world’s first VCD, this product will definitely change people’s entertainment methods in the next ten years.” Li Shanshan still has a feeling for such truly technical talents

. I admire them very much, especially because they have created a new industry. This innovative spirit is worth learning from.

Jiang Wanmeng was very excited after hearing what he said. There are very few people who understand this technology in this era. For him, it felt like meeting an old friend in a foreign land.

Jiang Wanmeng came to Longshan City this time mainly because the company had invested all its initial funds in research and development, and now it urgently needs to invest another sum of money to expand production.

He can guarantee that as long as he invests another amount of money, the company will continue to make profits in the future, but unfortunately the local banks are not willing to give him a loan.

In desperation, he came to Longshan City, hoping to borrow some money from the bank by virtue of his kinship with Tang Zeguo and the authority of the top leader in Longshan City.

But contrary to expectations, Tang Zeguo didn’t understand this technology and was unwilling to take risks, so he approached Li Shanshan and wanted to ask if Li Shanshan was willing to invest.

“Mr. Li, to tell you the truth, our company is currently experiencing difficulties in its development and we need a sum of funds to continue to expand production.”

Jiang Wanmeng hesitated when he said this, but gritted his teeth and continued: “I wonder if you have any ideas to invest in us? , I can guarantee that you will definitely make a profit in the future.”

After saying that, Jiang Wanmeng took out a piece of information from the briefcase he carried with him and handed it to Li Shanshan with both hands.

Li Shanshan took it and took a look. It was a “Feasibility Report on Wanyan Electronics VCD Research and Development”. This report listed some market survey data.

At present, in the domestic market, the sales volume of stereos is 1.42 million units, the sales volume of video recorders is more than 1.7 million units, the sales volume of LD video disc players is 1 million units, the sales volume of CD laser record players is more than 1.6 million units, and VCD has the above products All the functions, the price is even cheaper than these products.

An LD disc cost four to five hundred yuan at that time, while a VCD disc cost only forty or fifty yuan. It can be inferred that in the future, the annual sales volume of VCD machines will reach at least about 2 million units.

Li Shanshan briefly glanced at the feasibility report, then closed his eyes and meditated.

According to the memories of previous lives, VCD has developed faster than expected in the past ten years, and companies that invest in the production of VCD have made money.

But what is strange is that Wanyan Company, the inventor of VCD, not only failed to make any money, but instead changed from a “pioneer” to a “martyr”, and its market share dropped from 100% to 2%.

The problem here is huge. There are many reasons why Wanyan VCD does not make money. On the one hand, there are too many domestic piracy companies. They manufacture their own VCD products by studying Wanyan’s prototypes because there is no upfront investment. Therefore, you can occupy the market through low-price strategy.

Another aspect is Wanyan Company’s own problems, including low internal production efficiency and irregular management systems.

Li Shanshan really wants to help this company. After all, this is the only electronics brand independently founded by Chinese people. It is also the only opportunity for China to lead the world in the field of consumer electronics by the end of this century.

But if I give the money directly to them, I will definitely lose everything in the end, so what should I do?

Li Shanshan thought for two minutes, then suddenly opened his eyes, looked at Jiang Wanmeng and asked, “How much more money do you need?”

When Li Shanshan asked about money, Jiang Wanmeng felt that something was wrong, so he hurriedly said: “Now we only need 20 million. , we can quickly expand the production line, thereby reducing production costs.” ”

In this way, I propose to establish a Longshan Wanyan electronic products company in Longshan City, in which I will invest 30 million, accounting for 80% of the shares, and your technology will take the remaining shares. What do you think of 20% of the shares?”

After careful consideration, Li Shanshan decided to cooperate by setting up a joint factory.

In this way, as a major shareholder, I can prevent Wan Yan from taking detours, and allow Wan Yan, the creator of the world’s first VCD, to regain his glory. In the future, Wan Yan will export China’s electronic products to the world and become the maker of this industry, not just participants.

“This…” Jiang Wanmeng didn’t expect that Li Shanshan was so courageous that he would invest 30 million yuan to set up a factory.

It has to be said that this idea is very attractive to him.

“Mr. Li, please wait a moment. I’ll contact other people in the company.” After saying that, Jiang Wanmeng hurriedly walked out of the office to make a phone call.

At this time, Tang Zeguo was dumbfounded. It had not been ten minutes since Li Shanshan entered the house, and he decided to invest 30 million to build a factory. This was too rich.

“Sparkling, are you so optimistic about this industry?” Tang Zeguo felt that he still needed to remind him. After all, this was not a small amount.

“Uncle Tang, don’t worry, I won’t do loss-making business.”

Li Shanshan knew very well that the next few years will be the golden period for the development of VCD. As long as the company has its own controls, it will definitely make money. The 30 million he invested will be Time will inevitably return to your “pocket” exponentially.