I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 387 075-076: Hillhouse Technology is about to go public! (5000 words today)
It's just like when your child is taking the college entrance examination, you're so nervous that you can't sleep, worrying that your child won't do as well as others.

The Chinese branch companies of Lianxiang, Dell, Huipu and other companies are also closely watching the sales of Hillhouse MateBook.

When Hillhouse announced its sales volume, it can be said that it shocked all its competitors and friends!

After hearing the specific numbers, many people couldn't help but feel their hair stand on end!

Now Hillhouse's first-month sales have explosively increased to 152 million units.

According to estimates, sales in a calendar year can fully achieve an annual market share of over 3%.

This number is really scary!

Many brands have been operating their main business for more than ten years, but have always been lingering on the edge, with only 1% of the market share.

no way.

Although a laptop computer does not look like a high-tech gadget, it still has a very high technological content. Without hundreds of R&D personnel, especially high-tech R&D personnel, it is impossible to develop a product with certain product strength.

Moreover, even if it is developed.

You have to fight against three big mountains in the market: Lianxiang, Dell, and Huipu.

It is also impossible.

And now...

As a newcomer who has just entered this industry, we have achieved such results at a time when other competitors are being squeezed out before we can come up with any big moves.

That's scary enough!
This means that in the four areas of brand, quality control, channels, and promotion, Hillhouse has achieved the best possible level of perfection without any distinction.

You know, all business in this world is actually trust transactions.

The threshold for all businesses is actually not as high as imagined.

This is also the reason why coarse grain companies in later generations dared to enter the automobile industry, which is completely unrelated to the industry.

If you want to make a lot of money, you must have strangers paying you all the time. If no strangers pay you, your business will be close to the end.

Making money is about harvesting trust, making money is about harvesting traffic.

The more people trust you, the more traffic you will have, and the more money you can make from them.

Trusting others is an ability, and being trusted by others is a blessing.

All friendly competitors, including Lianxiang, have to admit with a heavy heart the fact that Hillhouse is a company highly trusted by consumers of technology products!
I have lowered the price to this extent, but you can still make a big splash in the market. It's totally unbelievable.

Do you think that the channel team that Lianxiang has spent more than ten years to build is a vegetarian?

Or do you think that even the room for price reduction gained by sacrificing profits can be ignored?
At this moment, Liu Qing at the Lianxiang headquarters was also very curious. He looked at the Hillhouse notebook in his hand again and again, wanting to see what was so good about this product!
It was able to unexpectedly take down a few points of market share on the basis of Lianxiang's defensive price cuts.

"Their core point is that they are very thin and light, but at the expense of some performance!"

“For example, here, the optical disc area was directly cut out.”

"Here, the round port has been turned into a USB port, which greatly increases the service life of the socket."

"The battery here is thinner, and the battery life is directly shortened by 50%!"

The R&D manager standing by reviewed the laptop computer and explained the situation to Liu Qing.

As he spoke, his expression changed from frivolous to solemn.

Hillhouse dares to do this in its cross-field research and development.

This R&D capability is indeed good.

More importantly.

This company is really brave!

Directly subvert the internal layout.

The notebook market has existed for many years, but this is the first time he has seen such a unique innovation.

Even if he tries to make up for it, he has to admit that Hillhouse Technology is bold in developing its products!

Although this laptop sacrifices some performance, its weight is reduced by more than 50% compared to products of similar size and specifications!
Moreover, because their laptop uses chips developed by themselves, the cost is reduced by a large part.

Don't underestimate this.

All in all, the cost of this product was reduced by a few hundred yuan!

You know, in this era of fierce competition in the laptop market, 100 yuan is very likely the core competitiveness of product cost control.

This is a loss of several hundred dollars, and the addition of self-developed chips, just thinking about the future makes him feel shocking!

"The weight of the laptop has been reduced by 50%!"

"Tsk tsk tsk, they dare to use self-developed chips!"

“They are really not afraid of death.”

Yang Qing muttered to himself.

The biggest difference between a large company like Lianxiang and Hillhouse is that there are too many bosses.

There is Yang Qing, Liu Zhi, and a bunch of other directors of various kinds.

It seems that thin and light notebooks have a promising future, but who will bear the consequences if they fail?

Insufficient batteries, frequent overheating of the body, fragile electrical sockets, etc. are all major culprits.

Who will take the blame in the future?

By shirking responsibility here and there, time has passed and the product has not been developed!
This is the characteristic of large companies with serious bureaucracy.

What's even more deadly is.

This company has transformed from a physical manufacturing company into a financial company!
The money earned from micro-loans is more than that from the main business.

Do you believe it?
This means that Lenovo has gradually transformed from a PC giant to financial capital on Wall Street.

Just like the broadcasts in later generations, the trajectory of actions is exactly the same!
In 1999, the broadcasting company moved its headquarters and ultimately chose Chicago among many cities that offered olive branches.

The reason for choosing Chicago was not the small settlement allowance and 6000 million US dollars in tax breaks (the broadcasting revenue had reached 500 billion US dollars at that time).

But it is because Chicago is a global financial center.

Why should a broadcaster of a manufacturing company take finance into account as the most critical consideration?
The traditional way of making money by manufacturing aircraft can no longer satisfy the appetite of capital. Broadcasting needs to develop into finance and look for higher-profit business: lending.

In 2005, Boyin established the "Boyin Financial Company" to focus on the leasing financing market.

Leasing is a big business in the civil aviation sector. Many airlines want to buy aircraft but don't have enough money, so they lease them. What to do if you don't have money to lease?
You can apply for a loan from the Broadcasting Finance Company.

Currently, financial profits account for 23% of broadcasting profits.

After tasting the sweetness, broadcasting began to promote outsourcing frantically.

For example... A certain Three Kingdoms...

In order to concentrate on finance.

This is also the core reason why, in later generations, the broadcaster continued to modify the outdated B737 into the short-legged B737MAX with serious design flaws, instead of redesigning a single-aisle aircraft of the same level.

It eventually led to a disaster!

How expensive is it to redesign a single-aisle aircraft of the same class?

Considering the labor costs in the United States, it would cost at least several billion US dollars.

And if things don’t go smoothly, the CEO might even be fired!

Do I need to cause trouble for myself?

Moreover, the board of directors did not support it. After all, under the condition of maximizing profits, the B737 had not yet been squeezed to the last drop of profit.

I can earn money just by standing, so why should I work so hard?
Similarly, Lenovo, which is already one of the giants in the PC business, is also on the same trajectory as broadcasting.

This company, which is unable to get rid of its big tail, can make less money on the PC business as long as it does not lose money. Then it uses the physical manufacturing industry as a cover to continuously borrow low-interest capital and then lend it out at high prices.

In the business of borrowing low and renting high, just start lying down!
Working in the industry is so hard, but after a year of hard work, you may still suffer losses, and your work will be in vain.

Where is the place where you can speculate on real estate (Lianxiang has a real estate company called Rongke Real Estate) and lend money?
In fact, there are quite a few people who want to make money.

Apart from the stagnation of the mobile phone business, the company is doing relatively well.

Afterwards, Yang Qing called Liu Zhi.

He hopes to make corresponding changes to Lian Xiang!
Compared with the relatively more difficult natural painting, some design concepts on thin and light notebooks are still very easy to imitate! In his opinion, the ultimate goal of doing PC business is performance.

If Hillhouse solves the weight problem by sacrificing performance, then it would be making a very wrong move in the PC market.

If you take one wrong step, all of them will go wrong!
Consumers have a very low tolerance for products with quality defects.

In the future, Gao Ling will definitely suffer the consequences of such recklessness!
However, neither he, nor his competitors in other PC businesses, nor even most of their competitors in the automotive industry, know this.

How strict is Hillhouse’s control over product quality!

We give enough money.

Quality control, you must do it to the extreme!

This is Hillhouse’s only standard now.

When it first started producing MP3 players, as a small company, Hillhouse did not do very well.

Only people in Hillhouse’s supply chain know how variable Hillhouse’s standards for quality control are!
This is also why the supply chain dares to say that it is making Hillhouse products.

I did it and felt sad for a while.

If you don’t do it, you will feel sad for the rest of your life!

Computer component suppliers like Hillhouse basically had more than a dozen or a few engineers stationed in Hillhouse's Yuzhou foundry before Hillhouse's Matebook was launched.

When testing the product, Hillhouse’s engineers went back home at three in the morning every day.

Good guy!
It's eight o'clock in the morning again.

The improved plan will be determined on the same day and must be completed within 24 hours before continuing testing.

This large group of engineers were doing tests at the foundry, and each of them had a sad face and looked like they were about to cry, which gave the people at Foxconn a small shock.

Hillhouse’s finance department also has an important assessment – ​​“paying suppliers on time”!
Hillhouse’s finance department will proactively call suppliers to settle your bill!
Otherwise, he will have to write a statement of the situation and his bonus will be deducted.

In fact, Hillhouse is completely different from its competitors in this regard.

Competitors would like to hold on to your funds for up to 12 months, and then issue acceptance bills to settle the accounts.

This situation will not happen to Hillhouse Capital now.

The core reason is that Gao Huaijun's control over the product is truly terrifying, to the point of being too meticulous in details.

For example, if one out of 1000 finished products has a little bit of plastic burr, all the goods will be reworked!

The packaging code was not in the correct position and all work was done again.

There are also batches of font colors that are inconsistent, and even the slightest color difference will result in rejection, which makes the OEMs complain bitterly.

But the time required for rework in China will also be charged!

In this regard, Lian Xiang is completely incomparable.

I use money to pave the way and destroy your supply chain so that it is unwilling to supply me with products. I also set higher standards for myself, fearing that Hillhouse will no longer cooperate with me in the future.

This is what Gao Huaijun learned from a small supermarket brand in later generations - Pang Donglai.

Hillhouse has been able to develop to this point without any product failures.

The core reason is because of Gao Huaijun’s big Samane action!
However, although Lian Xiang regarded Hillhouse's entry into the PC market as a formidable enemy, Gao Huaijun did not feel too much about it.

The future trend of PC ports will inevitably be an increasingly fierce zero-sum game, and the profit margin will tend to be downward.

The unit price of a single machine is also trending downward.

In this area, even if the volume wins, it doesn't mean much.

It just serves as the N supplementary service in 1+N.

Similarly, Hillhouse Smart Screen, Hillhouse Smart Glasses, Hillhouse Matepad, etc., actually play the same role.

Hillhouse now has thousands of direct-operated channel stores and several thousand core channel stores. If the business volume is not broad enough, it will not be enough.

Therefore, in terms of business development, PC business is important enough, but it is not as core as imagined.

At least, before entering the large-scale centralized procurement on the government platform, Gao Huaijun was thinking about slowly innovating on this type of product and ensuring a small portion of the profit.

. . . . . .

Time passed quickly, and it was January 2015, the night before Hillhouse Technologies went public.

Gao Huaijun held a cocktail party at the hotel where he was staying.

In addition to some celebrities from the Freeport film and television circles, some bigwigs from China's electronic technology industry and automobile field, bosses from the financial industry, and well-known domestic and foreign media reporters were invited.

Tonight, the entire banquet hall of the Freeport Regent Hotel is not open to the public and has been booked by Hillhouse Capital.

After shaking hands and greeting some visiting guests, Gao Huaijun accepted interviews from media reporters on a small stage in the hotel.

The first person whose name was called was a reporter from the central bank.

The reporter of the central bank's reporter in Freeport quickly asked, "Does Hillhouse Technology's listing this time mean that Hillhouse has completed its domestic industrial integration and is making final preparations for large-scale overseas expansion?"

As China's number one media, the central bank asked this question.

Other media reporters all desperately stretched their microphones towards Gao Huaijun.

In an instant, Gao Huaijun was in the spotlight.

"Wow! Boss Gao really has the style of a superstar!" Li Ruotong, who was invited to attend the event, whispered to Louis Koo who was standing next to him.

"That's for sure. A big boss like him has more capital than most of the financiers in the Freeport entertainment industry, so it's natural that he has a strong aura." Louis Koo said to himself, holding a bottle of champagne in his hand, without looking at Li Ruotong over there.

In "The Wandering Earth", he grabbed a small role as a captain of a ground rescue team.

Although it was only a five-cent or even a six-cent, he was still very happy.

Because he had read the detailed script that had been finalized and was ready to start filming. The film had a grand framework, was well-made, and the actors' plastic surgery was the most prestigious in China's history.

He is very optimistic about the success of the film.

When Gao Huaijun heard the central bank's question, he smiled and said, "Hillhouse has successfully landed in Europe! Our overseas sales in 2014 have reached 103 billion yuan, exceeding our expected performance of 62 billion yuan!"

The reporters present all shouted.

Hillhouse’s rapid development was really beyond their expectations.

In their inherent impression, Hillhouse’s domestic business is very strong, but its overseas business is average.

However, no one expected that Hillhouse’s overseas sales would directly exceed 100 billion yuan!

Judging from this trend, it is very likely to become an important profit source for Hillhouse in the near future!
"Also, I have another announcement..."

Gao Huaijun then looked around.

At this moment, all the guests in the audience gathered around, wanting to hear what Gao Huaijun wanted to say.

"We at Hillhouse Technology have decided that after this listing, we will set up overseas research institutes in cities such as Stockholm, Helsinki, Nuremberg, Munich, and Moscow to develop the world's most cutting-edge scientific research fields!"

"It is expected that the total number of employees in these R&D institutes will eventually reach about 5000."

When these words came out, everyone in the audience couldn't help but be shocked.

This was also the first time Gao Huaijun announced this news to the public.

It is well known that Hillhouse itself has a large number of R&D employees, but currently it only has three R&D centers: the Xicheng headquarters, the Shanghai branch, and the Beijing branch.

Now, Gao Huaijun announced this news while Hillhouse Technologies was going public, which means that Hillhouse has truly begun to expand from the inside out!
The total number of R&D personnel stationed abroad has reached 5000.

This is a courage that other Chinese technology companies dare not even imagine!
It is said that Hillhouse is a company run by engineers, and this is taking engineer management to the extreme.

Some of the technology giants present stopped talking and looked at Gao Huaijun with horror.

In their hearts, they also knew what this meant.

This means that Hillhouse has officially started to open branch mines and started the internal and external dual circulation model!
Hillhouse’s products have always been known for their high product power, but if it fails to gain a reputation abroad, it will be difficult to make further progress and seize the throne in China.

This is also the most shocking thing about Hillhouse's move.

When Hillhouse has the ability to integrate global resources, then these technology company bosses present here now.

There are two questions in my mind.

That is, in the future, how much market share will Hillhouse take?
How far will Hillhouse advance?
(End of this chapter)