Technology: Start by selling mobile phones

If Li Wanglong hadn't talked about dividends, he would have forgotten about it.

He previously invested 3.5 million to buy the "Wanglong Electrical Appliance Factory" and then gave Li Wanglong 5% of the shares.

The current equity situation is that he holds 95% of the shares of "Wanglong Electrical Appliance Factory" and Li Wanglong holds 5%.

According to general joint-stock companies, at the end of the year, the profits of the previous year must be disposed of.

Either pay dividends, or keep it on the company's books and continue to expand production.

Thinking of this, Mo Ran immediately turned to the first page of the annual financial report. The first was the operating data.

Operating income: 12.64 million.

"good!"

This data is expected.

Since acquiring "Wanglong Electrical Appliance Factory", he has given all production orders for "Nietzsche B43 TV" and subsequent "Nietzsche E55 LCD TV" to "Wanglong Electrical Appliance Factory".

For each TV, "Wanglong Electrical Appliance Factory" can get about 35 yuan in OEM fees.

The production orders for "Nietzsche A7" and "Luban No. 8" were subsequently transferred to Wanglong Electrical Appliance Factory. In the past few months, there have been orders for nearly 130,000 units.

The assembly cost of mobile phones is slightly higher than that of TVs, and each unit can earn about 40 yuan.

Immediately afterwards.

Mo Ran looked at the net profit column and was a little surprised.

Net profit: 398,000 yuan.

Net profit margin: 3.1%.

"The net profit margin is only 3.1%? Is this too low?"

Mo Ran shook his head. He had thought that the profit margin of contract manufacturing would be relatively low, but he really didn't expect it to be so low.

See this.

Li Wanglong shook his head in embarrassment.

"Mr. Mo... Our foundry industry is such a hard job. It may seem profitable, but after all the labor wages, equipment depreciation, water and electricity, food and accommodation, rent and losses are calculated, it is hard money..."

"Especially the loss...it is inevitable that defective products and loss will occur during the assembly process of mobile phones and TVs. This part is completely borne by ourselves."

"So... to be honest, I have done my best to achieve this level of profit margin."

"Well, I don't mean to blame you."

Mo Ran exhaled slightly. Nietzsche's good profit margin made him feel good.

Even the not-too-high-end TF chip industry like "Yellow River Storage" has actually achieved a net profit margin of 8% or 9%, which is still acceptable.

At this time, I really saw the "Wanglong Electrical Appliance Factory". This kind of bottom-level enterprise, which does not have much technical content and is purely labor-intensive, is commonly known as the "screw-driving" assembly line. Only then did I realize that the profits of the bottom-level manufacturing industry are really low. .

"No wonder companies at this time would rather invest in real estate than in industry."

"You can only make a little money in industry, but if you invest in real estate, your income will increase by 10% in a year."

After sighing, Mo Ran's eyes returned to the profit of 398,000 yuan.

to be honest,

This profit of 398,000 yuan is not important to him now. It can be divided into dividends or kept in the company's accounts.

but.

He did not speak in a hurry, but looked at Li Wanglong.

"Old Li, 'Wanglong Factory' also owns 5% of your shares, and I also want to listen to your opinion."

"What do you think you should do with the profits from the past few months?"

When Li Wanglong saw that Mo Ran was talking about this, he stopped refusing and replied:

"In my heart, I still hope to stay in the company account and not pay dividends for the time being!"

"Now that we have Nietzsche's order as a guarantee and a large number of skilled workers, I have the confidence and confidence to do better."

As he said this, Li Wanglong was even more encouraged when he saw Mo Ran listening seriously:

"And... Mr. Mo, I have something else that I have always wanted to discuss with you."

"In the past few years, I have been constrained by too little funds. The business in the factory was all about 'processing with supplied materials'. Now that the factory is stable and on the right track, I want to try to do 'all-inclusive materials' and provide one-stop OEM services." .”

"Not only will this improve some profits, but it will also increase our scope of business."

"Of course, doing this requires a lot of capital turnover to purchase various materials, and we also have to borrow some money from the bank."

Of course Mo Ran knows about "processing with supplied materials" and "all-inclusive materials".

For example, in the current production of "Nietzsche A7" and "Luban No. 8", Wang Fugui is responsible for purchasing the corresponding spare parts and then handing them over to Wanglong Factory, which organizes employees to complete the assembly.

This is processing with supplied materials.

This method is generally more common in small OEM companies, and it also targets orders from small customers.

And the "Nietzsche X1" produced by the R37 foundry is another model.

Except for the screen, all other parts are purchased by R37, providing one-stop service.

simply put,

It means that both parties agree on the "production plan" and "product price" of the product, such as what brand and model of CPU, what brand and model of memory, etc.

Then when the final delivery is made, the "product fee" is paid to the foundry at the agreed price.

The advantage of this is that the procurement process is also completely handed over to the foundry.

Mobile phone manufacturers only need to come up with product plans and do not need to set up additional purchasing departments or logistics departments, which greatly reduces departmental expenses.

Moreover, generally large foundries have scale advantages, and the cost of purchasing many parts in bulk will be significantly reduced, even cheaper than the purchase price of mobile phone manufacturers.

In addition, foundries will also benefit from this.

Because after the procurement link and the OEM link are opened, integrated management can be carried out, the overall production efficiency and even the yield rate will increase, and the production cost will decrease slightly.

This method is also the mainstream cooperation method of many large OEM companies, such as Foxconn and BYD.

Thinking of this, and thinking of the net profit margin of only 3.1% just now, Mo Ran was a little moved.

to be honest.

He has not given much support to "Wanglong Electrical Appliance Factory".

In addition to spending 3.5 million to buy the equipment and equity of "Wanglong Electrical Appliance Factory" in one go, he almost became a hands-off shopkeeper and did not invest any more.

Although Nietzsche's order was indeed given to "Wanglong Electrical Appliance Factory", the OEM price was the same as the market price, or even slightly lower.

Compared with deliberately leaving 20% ​​of the gross profit for "Yellow River Storage", "Wanglong Electrical Appliance Factory" is like a stepmother.

but.

Mo Ran sighed slightly in his heart.

However, because "Wanglong Electrical Appliance Factory" is a "labor-intensive enterprise", its development potential and industrial nature are completely different from those of Yellow River Storage.

It is impossible for Mo Ran to invest too many resources in the foundry industry!

so!

If you want to survive in the OEM market where competition is fierce, with giants such as Foxconn in the front and BYD and BOE in the back, you can only rely on the efforts of "Wanglong Factory"!

"No need for a loan..."

"Let's do this. I'll inject 50 million into the Wanglong Factory first, and you can start running it according to your ideas."

"Next, the 'Nietzsche A7', 'Luban No. 8' and LCD TVs will also adopt the 'all-materials package' approach. You will be responsible for everything. The specific ex-factory price, I will let Lao Wang and you Butt.”

Li Wanglong was stunned. He didn't expect Mo Ran to agree so readily.

You know, this is not millions, this is tens of millions!

"You... just agreed?"

But as soon as he finished speaking, he thought of something and said hurriedly:

"Mr. Mo, you invested 50 million, so let me reduce my shares too!"

"Otherwise, this 50 million capital injection alone would be equivalent to giving me 2.5 million for nothing! This is against the rules."

Moran frowned slightly, but forgot about this.

"Let's do this, reduce it a little, 3%."

"3%...3% is too much. My shares were only worth 250,000 before, but now they are worth 1.65 million!"

"Okay, stop talking nonsense, just 3%."

"Hey...Mr. Mo!"

Mo Ran did not continue to struggle with this matter. After he settled down, he immediately talked about the main purpose of coming this time-air conditioning OEM.

When he heard that Nietzsche wanted to enter the air-conditioning industry and asked about the OEM air-conditioning business, Li Wanglong was slightly stunned, then shook his head.

"Mr. Mo, it's okay if you want to enter the 'air conditioning' industry, but I don't recommend that you give us the air conditioning OEM business."

"oh?"

Seeing Mo Ran's confused expression, Li Wanglong continued to explain:

"To be honest, we are not professional in the air-conditioning business. This is also the first time Nietzsche has developed air-conditioning."

"I don't know how many quality problems you will encounter when making it... To be on the safe side, I still recommend that you find a mature enterprise to do the manufacturing first."

Such a reminder made Mo Ran feel that it made sense.

He couldn't help but nodded slightly and said:

"You should be more thoughtful. Do you have any good recommendations for air-conditioning OEM companies?"

"have."

After thinking for a while, Li Wanglong said:

"The largest air-conditioning company in Chengdu is Changhong, and they are also OEMing for external parties... It seems that Xiaomi is rumored to be OEMing for Changhong for its upcoming Xiaomi air conditioner."

"However... if you want to find Changhong OEM, I'm afraid there are requirements for order quantity and price. You can ask."

Mo Ran's eyes narrowed and his mind was racing.

He suddenly realized: Has Xiaomi not launched Xiaomi air conditioner yet?

Is it going to collide with Xiaomi air conditioner?

After a moment, he nodded calmly.

"Okay, I'll ask Wang Fugui to contact Changhong to see what the specific situation is."

…

After returning to the office from "Wanglong Electrical Appliance Factory", Mo Ran immediately ordered the financial director Lao Qian to transfer 50 million.

In the next two days, Mo Ran began to replenish his knowledge of the air-conditioning industry.

On the third day, Jiang Lan came to the office with a thick air-conditioning market report and product analysis.

Mo Ran opened the air conditioning industry report.

I have to say that Jiang Lan was well prepared.

In 2016, the air-conditioning industry shipped 112.35 million units, of which 45 million units were exported. The entire market size has reached more than 200 billion yuan.

Among them, Gree, Midea and Haier have the highest market shares. Gree is far ahead of the second place Midea with a market share of 14% with a market share of 39%!

Of course, not only domestic brands, but Japanese brands such as Mitsubishi Heavy Industries, Mitsubishi Electric, and Daikin are still active in the domestic market.

Besides,

In terms of market attention, frequency conversion has become the absolute mainstream, and bedroom air conditioners with small horsepower are the most popular in the market.

but.

Mo Ran was a little surprised that in the industry survey provided by Jiang Lan, air conditioners priced below 2,000 yuan received the lowest attention, only 6.2%.

The proportion of attention in the 2000-3000 yuan range is 24.1%.

On the contrary, 3001-5000 yuan received the highest attention, with a proportion of 34.8%.

However, if I think about it carefully, I think it is understandable. At this time, inverter air conditioners have become the mainstream, and the price of inverter air conditioners is not less than 2,000 yuan.

Even 2,500 yuan is very rare.

Putting down the report, Mo Ran said:

"So, your product suggestion is that our first air conditioner should be a 1.5P inverter air conditioner."

"That's right."

Jiang Lan replied:

"Furthermore, in terms of technical difficulty, air conditioners with small horsepower are the least technically difficult and have the most complete related supporting solutions."

Mo Ran exhaled softly. Regarding the product direction, Jiang Lan's thoughts coincided with his.

"What about the specific main functions? Or what about the selling points?"

"As you know, almost every product of our Nietzsche mobile phone or TV has touched the pain points of the market. Where do you think our air conditioner will mainly hit this time?"

Jiang Lan was obviously prepared.

“On the Internet, everyone is more concerned about the concepts of ‘intelligent’, ‘self-cleaning’ and ‘DC conversion’.”

"But... I think we have a better entry point - saving energy and electricity."

"Saving energy and electricity?"

"right!"

Speaking of this, Jiang Lan suddenly smiled.

"This is actually my pain point. Last summer, my electricity bill cost me more than 600 for three months!"

"My flesh hurts."

The slightly exaggerated tone made the conversation between the two relaxed, and Mo Ran also took advantage of this to pick up the tea cup and take a sip.

He thought in his mind that energy saving is indeed a good selling point.

only……

"If I remember correctly, the selling point of saving electricity has been promoted by the company a long time ago."

"I still remember the slogan was...'One kilowatt hour of electricity a night'?"

After the words fell, Jiang Lan shook his head and his expression became serious.

"What they say can only be achieved under the most ideal circumstances. They are just speculating on concepts!"

"And when I talk about power saving, we really mean it, rather than just speculating on the concept."

Mo Ran suddenly fell silent, and he suddenly felt a different kind of power.

After a moment, he said slowly:

“What’s the difficulty in saving energy?”

"A full DC inverter compressor is required, which may need to be imported."

"In addition, excellent 'electronic control procedures' are also needed, which requires the establishment of an excellent R\u0026D team. If the project team progresses slowly and has no results, it may not be able to catch up with the peak season this summer."

"Moreover, even if it is made, the cost will not be too low. It should be impossible to make it below 3,000 yuan."

Speaking of this, Jiang Lan stopped.

After a few seconds, she continued:

“So you need to weigh and consider, either we can make a common inverter air conditioner on the market. Although it does not have any outstanding highlights, with our accumulated brand awareness, as long as the quality is well controlled and the price/performance ratio is high, the sales volume should not be too bad. "

"Either we start from the perspective of 'energy saving', invest time in research and development, and truly create a good product with distinctive features."

"Of course! Such risks must be very high. It is very likely that sales will be sluggish and everything will be lost."

"It depends on what you choose!"

After the words fell, Mo Ran did not feel as entangled as Jiang Lan imagined, but said calmly.

"No need to choose."

…

PS: Thanks to book friend 20180424175928412 for the big 200 coin reward.

I went out to play with my baby today. Sorry for the late update.