The Industrial Giant Reborn

"The LCD industry is still blank in China right now, right? If you want to enter this market at this time, the national level will definitely support it. However, this industry, because of the emergence of notebook computers and potential new color TV solutions, has already been promoted internationally. The change is so hot, and Japan and South Korea already have the foundation in this area, if you want to do it, you need the entire Yanjing Electronics Factory to go all out, which is a bit like taking a gamble." Chen Zhiwen added.

Yanjing Electronics Factory is indeed one of the top electronics factories in China, but it is not a big name in the world. Although the LCD industry is still not as good as the unparalleled investment of later generations, a domestic enterprise , if you want to do it, it is still very laborious.

"I have also discussed this matter with the company and the district committee leaders. They all believe that the risk of doing so is too great. Today's No. 1 Electronics Factory is still very profitable, so they do not want to change." Wang Dongsheng said : "It's just that I still think that the future direction of color TVs and even desktop computers will be based on liquid crystal. The first is what I just said, the cost of liquid crystal will only get lower and lower. The second is the energy consumption of liquid crystal, which can be controlled. Well, it will be much lower than the color picture tube. In theory, the clarity of the liquid crystal will be much better than the color picture tube, and the weight will be much lighter. There are almost no restrictions in terms of size. European and American societies are basically economically prosperous. Everyone likes big TVs, but there is an upper limit to the size of color tubes.”

"Your concept is similar to mine." Chen Zhiwen smiled and said, not to mention other things, just in terms of area, CPT will definitely lose to LCD.

It’s not that color picture tube technology can’t be made big. Basically, the smaller the electronic products are, the harder it is. Making small and clear color TVs is more difficult than making them big. As long as you have money, you can make a 100-inch color TV or even as big as a house. Managing color TVs is not a problem at all, and Midea can do it easily. But let’s not talk about who will buy such a thing. Even for transportation, it is estimated that large and heavy trucks will be required.

Color TVs before LCD technology, the most common and largest color TVs on the market, were basically only 42 inches in size, and the larger ones were 45 inches. If you think about it, it would be impossible, because two adult men might not be able to lift it. It is very laborious to move or lift, and the installation is extremely inconvenient. In places where labor costs are too high, the installation cost is estimated to exceed the color TV itself. Furthermore, it involves moving internal appliances in the home. Such a color TV is also inconvenient.

As for LCD, it is much lighter. Even if the early LCD did not pursue ultra-thin technology, an adult can easily pick up a 45-inch LCD color TV. This is a great convenience for transportation and for consumers. The same goes for.

Of course, other factors need to be considered, such as price, power consumption, clarity, etc., as Wang Dongsheng said. Taken together, it is inevitable that LCD will replace color tubes. International home appliance companies have such a consensus. However, when a major replacement can be achieved depends on the development of LCD technology.

And no matter how high the other advantages are, if the price is too high, there is still no way. However, outsiders don't know, but Chen Zhiwen knows the approximate time. Although he was not very clear about the development history of LCD TVs in his previous life, he also knew from his memory that in China, too It was around 2005 that LCD TVs started to be replaced. In developed areas such as Europe and the United States, it was generally 5-10 years earlier, which means that the fastest would be a few years later, and the slowest would be less than ten years.

Chen Zhiwen also remembered that at the beginning of the new century, although there were many color TV brands in the country, many of which were exported, the LCD field had always been stuck by overseas countries. Only later did BOE make a breakthrough and achieve industrial independence.

"Yes, I insist on this. I think they are still unwilling to invest in Yanjing No. 1 Electronics Factory, so I hope Mr. Chen can help me and support me in developing the LCD industry." Wang Dongsheng said.

"Although I am the major shareholder of Yanjing First Electronics Factory, I can indeed interfere in some matters, but you also know that this is a state-owned enterprise after all. It would not be good for me to interfere with such a large investment." Chen Zhiwen shook his head and said : "I'll give you a plan. Nowadays, it's popular in China to do business abroad. How about you take your team and go out alone, then I invest, and then bring in the Yanjing State-owned Assets Supervision and Administration Commission, and we three parties work together. How about it?"

In the original plan, Chen Zhiwen actually wanted Yanjing No. 1 Electronics Factory to follow its original route. However, history has changed too much and they are doing very well now. It is a bit difficult for them to develop the LCD industry without breaking the bank. , even if you are a major shareholder, it is not easy to force a state-owned factory to change industries.

Anyway, Wang Dongsheng has been found, so it is better to let him lead the team, come out, and then go his own way alone. In this way, they, the founders, can also receive shares and dividends, and they can work harder to make the company better. Otherwise, even if Yanjing No. 1 Electronics Factory agrees to make LCDs, it is hard to say whether they will continue to invest as much as they did historically if they do not receive dividends. There is a high probability that they will not. This is also human nature. , there is no need to test human nature.

"Going overseas to start a business?" Wang Dongsheng was somewhat unresponsive to this reply.

"Yes, state-owned enterprises generally focus on stability. In addition to meeting the country's product demand, their main obligation is to stabilize employment. Take the First Electronics Factory, the actual number of employees is almost 5,000, but counting these people Family members, etc., almost have to support more than 10,000 people. This is a social responsibility. I don’t comment on whether it is good or bad, but they will not allow you to take huge risks like this. Even if I come forward, It may not necessarily have much effect, and I won't come forward for this kind of thing again." Chen Zhiwen said: "So, if you want to do well in LCD or other technologies, you have to set up your own company, so that you can With absolute management rights, you can do whatever you want. Only in this way can you succeed."

Historically, Yanjing No. 1 Electronics Factory suffered losses for seven consecutive years, and Yanjing City could not bear the losses. If Wang Dongsheng and others are willing to contract, it is basically decentralized enough to let you do whatever you want. It can't be any worse than bad.

But now the First Electronics Factory is still very prosperous. The biggest responsibility of a state-owned enterprise is to assume social responsibility. Generally speaking, it will not do too risky business, especially now that it is still profitable, and all employees and families can live and work in peace and contentment. If you bring these people together, there will only be infinite resistance.

Chen Zhiwen did ignore this point when he made direct investment. Later, after he got to know the state-owned enterprises, he gave up his previous ideas and instead hoped that Wang Dongsheng could start his own business.

However, no matter what, it is still necessary to introduce state-owned capital, because if BOE wants to develop, it must have state support behind it, because LCD technology is also blocked by foreign countries. Only the state can introduce these technologies. That is today. Chen Zhiwen can only play a helpful role in such matters, but cannot make the final decision. After all, Midea is strong in creativity, not technology. Although Midea also has many basic technology patents for LCD, they can It is still far less than the full national level investment of the entire Japan and South Korea.

There is no way for Midea to compete with international giants in many fields despite specializing in technology. Moreover, the best solution is to support the development of investment companies, which is the case for TSMC and BOE.

"Mr. Chen, can you support us to start our own business independently?" Wang Dongsheng thought for a while and asked. This was something he had not thought of before coming today. He originally thought that it would be a matter of allocating resources from the First Electronics Factory at most, but unexpectedly it turned out that I started my own business.

"Yes, what resources do you need? Make a plan. As long as it is reasonable, then I will invest." Chen Zhiwen said: "This matter is relatively big. You also need to consult with your family and your team before making a decision. And , related plans also require a lot of time and energy to come up with and then decide. During this time, you can also think about what to do. If you need any resources and information, you can go to Midea to find someone for help, because you are still in public office. I am not in a position to give you funds until I leave my job."

"Okay, I will make a detailed plan." Wang Dongsheng nodded and said.

"Okay, that's it. I'm quite optimistic about the future of the LCD industry. In fact, if Hong Kong wasn't suitable for industrial development, I would have started making LCDs in Hong Kong ten years ago. Mainland China can be said to be our common destiny. It's a chance, I hope you can succeed, as long as you can make it, I will not be short of orders." Chen Zhiwen said again.

Hong Kong industry, for ordinary industries, high artificial land prices are the biggest problem, but for high-end industries, this is not a big problem, because high-end industries have high profits and can easily survive in Europe and the United States. The wages in Hong Kong No matter how high it is, it won't be much higher than Europe and the United States, and the biggest problem is the lack of people and high-end technical talents. The foundation of industry is a large number of engineers. Without these people, even if the capital is increased ten times, it will not be able to make money.

Therefore, no matter whether it is a low-end industry or a high-end industry, it is not suitable to stay in Hong Kong. Even Red Bull is like this. It is just that Chen Zhiwen forced a small part to stay in Hong Kong. This is the personal wish of the "investment boss" , this is also because there is a large industrial factory near Tin Shui Wai, which can stabilize the economy of the entire town. Only in this way can landowners with large tracts of land obtain the highest returns.

"I will definitely not let Chen Sheng down." Wang Dongsheng replied. A company that can be personally followed and invested by Chen Zhiwen will at least receive a lot of internal support from Midea in the future, which is rare in the domestic electronics industry.

The LCD industry must rely on domestic development. This is also Chen Zhiwen's early prediction. If it is inconvenient for him to do it himself, then he will adopt the same investment method as chips to cultivate future giants. While making profits, he will also It can ensure that your industry can have multiple supplies in the future and reduce risks.

However, again, history has changed too much. No one knows whether TSMC and BOE can achieve the same successful ending as they did in history. Therefore, Chen Zhiwen’s capital will continue to invest in other people, as long as there are potential candidates. Yes, you can invest in it. Just like ten years later, venture capital will invest in the Internet industry. If you invest in a hundred companies, 99 companies will lose money. But as long as one company succeeds, all the investment will be recovered, and there is a high probability that it will still be possible. Make a fortune.

However, in the original history, the rise of BOE was almost 30 years later. This was a very long-term investment plan. In the short term, there will be no obvious return on investment. Although it is worth it, there is no obvious return. You don't need to pay too much attention. As long as Wang Dongsheng starts his own business and the plan he submits is feasible, then he can just invest.

In China, there are still many projects suitable for precise and rapid investment, such as the most basic infrastructure.

On the fifth day in Yanjing, Chen Zhiwen met with Director Wang from the transportation department at the Mandarin Oriental Hotel in Yanjing.

The Mandarin Oriental Hotel is a five-star hotel under Landmark. Originally, it only had three hotels in two small places, Hong Kong and Macau. When Chen Zhiwen acquired Landmark, he planned to focus on developing it. But when there are already hotels all over the country abroad, At a time when there are various Intercontinental and Hilton hotel chains, Mandarin Oriental is the best choice to develop domestically. In addition to its good business, it can also take advantage of the current opportunity to build several very large five-star hotels. .

Nearly 20 cities, including Yanjing, Shanghai, Shenhai, Yuezhou, and Jinling, have invested in a hotel located in a prime location in the city center. The building where Chen Zhiwen is currently located has 66 floors, which is currently the highest in North China. The hotel building is surrounded by two auxiliary buildings, each with more than 40 floors, and a large grassland park, with a total area of ​​160 acres and a construction area of ​​320,000 square meters.

"Director Wang, please take a seat." Chen Zhiwen greeted with a smile: "This is a local tea I found in Western Guangdong Province. It tastes very good."

"Thank you, Mr. Chen." Director Wang also politely replied. Chen Zhiwen is also very close to the entire domestic top management. Ten years after the reform, they invested too much in the country and brought hundreds of people to the country. Direct and indirect employment, as well as a large amount of foreign exchange exports every year, these two points alone can be said to be one of the biggest helpers of the reform.

"Director Wang, why are you here?" Chen Zhiwen asked.

"It's like this, Mr. Chen, you once proposed to build a highway from Shanghai to Hankou. At that time, the relevant national departments did not have such a plan, so it was ignored. But now, because Benefiting from the economic development along the Yangtze River, the central government decided to build this tunnel. I wonder if Mr. Chen is still interested?" Director Wang asked. (End of chapter)