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

Chapter 546: 397-398: Hillhouse Technology Annual Review! (4000 words)
Now that Hillhouse has grown in size, its every move will be put under a magnifying glass. It will no longer be like when Hillhouse was still an electric fan factory where no one cared whether you lived or died.

In the past, Xicheng was a small but beautiful city with semiconductors, solar energy, and general mechanical industries as its core industries. It had made almost no significant achievements in the electronic technology and automotive industry sectors, let alone artificial intelligence, battery technology and other technology trees.

But since Hillhouse developed these cutting-edge technologies, Xicheng has slowly transformed into an East China city serving Hillhouse!
One enterprise is one city!

This is Hillhouse’s current strength in China!
In the past, especially four or five years ago, many wealthy families in the local area and the Yangtze River Delta region often found Gao Huaijun's mother, hoping that she could act as a matchmaker and form a strong alliance.

Now no one dares to mention this anymore!

For the boss of a company like Hillhouse, who can and who dares to be the boss’s wife?
I'm afraid that if Gao Huaijun wants to get married, he will have to report it to his superiors.

There is no way, the company is just too big.

It's so big that your every move will be closely watched under the spotlight.

Sales volume is hundreds of billions.

Even if Hillhouse separates Hillhouse Vehicle and Hillhouse Technology, both of them can enter the Fortune Global 500.

Even the most inconspicuous and weakest Hillhouse Derivatives BU now has sales of more than 200 billion!
The annual profit is more than 40 billion and close to 50 billion.

You know, there are a lot of Myanmar A-listed companies in China whose market value does not exceed 100 billion yuan.

It is no exaggeration to say that if a Hillhouse derivative alone could be listed on the Myanmar A-share market, it could become a quasi-blue chip stock with a market value of 1000 billion yuan!
In fact, it is that exaggerated.

If the mood strikes, it would be easy to speculate the value to two or three hundred billion.

After all, this is a subsidiary of Hillhouse Capital!

Which subsidiary of Hillhouse Capital is not a strategic-level entity in China?
However, even so, Gao Huaijun was prepared for the controversial launch of his driverless taxi, but he never expected that the controversy would be so great!

He used to not understand why there was such great resistance to the reform and opening up in 1979.

A large group of people were not well fed or clothed. They couldn’t even get enough rice every day, let alone meat.

Under such conditions, reform and opening up are met with numerous obstacles, which makes people today feel incredible.

However, now that Hillhouse has entered the taxi industry, Gao Huaijun suddenly understood.

Is there any reform that does not infringe upon everyone's interests?
Where is there no bloodshed and sacrifice?
Reform is not a dinner party, it is about making a group of people suffer, so naturally there will be a lot of people who oppose it.

From Hillhouse’s perspective, the promotion of driverless cars is now imminent!

One is that Hillhouse's current high R&D costs for artificial intelligence have made this department a money-consuming behemoth.

We now have a R&D team of nearly 11,000 people, and the annual salary alone is more than 4 billion yuan.

And this does not include other expenses such as five social insurances and one housing fund, performance, administrative expenses, operating expenses, R&D equipment, etc.

It's easy to invest tens of billions of dollars a year.

Currently, the autonomous driving module is the largest module in Hillhouse's artificial intelligence.

It is unrealistic for so many people to rely on Hillhouse's high-end cars for their livelihood.

Therefore, Gao Huaijun needs to find suitable increments.

The second is that foreign countries, especially the United States, have invested huge amounts of money in this sector.

The United States is a country with very high labor costs. Compared with the University of Tokyo, they have a higher and more urgent demand for driverless cars.

Gao Huaijun knew about this, and Hua Guo also knew about it.

Therefore, the current incremental market is just like when Emperor Qianlong saw the steam engine hundreds of years ago and felt that if he did not close his country to the outside world, his empire might be unstable.

You can't get away from it by closing your country to the outside world.

You have to go now even if you can’t!
Soon, amid controversy, Hillhouse also released its annual financial estimates for the new year.

Compared with the estimates in 2017, the estimates in 2018 are particularly different due to the involvement of self-commitment factors.

Gao Huaijun also seems to be particularly concerned about the sales situation in 2018.

This year, Hillhouse's fifth phase of R&D center "Qin Zhiyin" in Shanghai has completed the main structure construction.

The fifth phase of the Magic City R&D Center has now completely filled up the area in the middle of the lake.

In the later stage, there will be two major themes, Xia Zhixu and Zhou Zhili, which will be completed within four years.

In other words, after nearly ten years of construction, this place has become an ultra-large commercial cluster with a scale of over one million square meters.

Even the leaders of Demon City ten years ago probably could not have predicted this implementation situation.

A company can actually build such a large R&D center. A few years ago, people would think you were joking!

After having twelve R&D sub-centers including Didu, Pengcheng, Yangcheng, Helsinki, Stockholm, Brussels, Nuremberg, Dongjing, Rio de Janeiro, Yuzhou, Chang'an and Chengdu, in order to save costs, Hillhouse's R&D center expansion has slowed down this year and no R&D departments have been added.

The pace of expansion of Hillhouse's R&D center has stabilized and there will not be many changes.

The basic framework is also limited to this.

If there are too many R&D centers, the internal management pipeline will become too complicated, increasing the risks at the middle level.

Therefore, Gao Huaijun feels that such a framework is sufficient to tap the potential young people in the world.

Now, Hillhouse Chip Factory has transformed from a dim little player into the hope of the entire village.

After the completion of the second phase of the Hillhouse chip factory, the third phase of the factory will begin construction!
This factory will be located in the imperial capital!

It will be a large chip manufacturing plant jointly built by Hillhouse and the imperial capital government.

The core purpose is to produce high-end chips with advanced processes.

However, due to the purchase restriction regulations against ASML, Hillhouse can no longer buy a decent first-hand lithography machine in the market! Therefore, in addition to asking China to urge the 02 project to continue research and development, Hillhouse is also doing two things and starting to do its own research and development on lithography machines.

How could a company like Hillhouse put all its eggs in just one basket?

This secret R&D team was actually established two years ago. In the beginning, there were not many people, only about a hundred. A small part of them were Chinese employees secretly recruited from ASML and other lithography companies, while the other part was R&D personnel transferred from Hillhouse Lithography Factory to conduct reverse deconstruction!

Although the progress on this huge monster was very slow, we were able to gradually find some solutions.

For example, a patent for an EUV lithography machine called "Mirror, Lithography Device and Control Method" has been applied for a national patent.

As Hillhouse has always adhered to the practice of not fighting unprepared battles, this means that Hillhouse has made a major breakthrough in lithography machines, which is undoubtedly a significant boost to China's lithography machine industry.

The EUV lithography machine patent of "reflecting mirror, lithography device and control method" developed by Hillhouse is actually one of the core technologies of the lithography machine. Since the 90nm process, the light source used by the DUV lithography machine is a 193nm light source, while the EUV light source is 13.5nm. The corresponding wavelength of light is obtained through multiple refractions in media such as water, thereby realizing the production of 193nm to 65nm process with 7nm light source and the 13.5nm to 7nm process with 2nm light.

The lithography technology developed by Hillhouse should be designed to solve this core technical problem.

Hillhouse Capital is personally involved in the development of lithography machines because it has deeply realized that the slow development of lithography machines will take a long time.
After all, now Dalian’s advanced process DUV lithography machines are not allowed to be sold to China by ASML.

In this way, Hillhouse's personal involvement in the research and development of lithography technology can accelerate the progress of China's lithography technology.

Helping China is actually helping ourselves.

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Domestic lithography machines will form a complete industrial chain, making China the only economy in the world with a complete lithography machine industry chain.

With Hillhouse's deep involvement, related companies have successively carried out breakthrough research and development in dual workbenches, optical systems, objective lens systems, and light source systems. Now Hillhouse's breakthrough in light refraction technology will undoubtedly make up for the last important shortcoming, and the day when domestically produced lithography machines become a reality is getting closer.

Hillhouse Capital can’t afford to wait any longer. It feels like being strangled!
Hillhouse Capital is in a very tragic situation now. Such an important project actually requires a private enterprise to undertake it all from start to finish.

There is no way!

If it fails in another two years, Hillhouse cannot imagine how Hillhouse Technology will collapse!
In the annual summary of Hillhouse Group's sales in 2018, although the performance of Hillhouse Technology and Hillhouse Vehicle was affected by the self-financing, this impact has not so far had a profound impact on the sales of Hillhouse Technology. This impact will only gradually emerge in 2019, so the sales volume in 2018 was a big step forward compared to 2017.

Hillhouse technology sector.

Notebook products are a relatively low-key but stable business segment of Hillhouse.

However, the self-commitment incident does not have a particularly big impact on the laptop business. After all, the space inside the laptop is large enough, and as long as multiple cores are connected in parallel, a stable supply of low-end chips can be provided.

There is no need to use the most advanced overlay chips.

After Hillhouse launched the business notebook in 2017, Hillhouse now has a variety of practical notebook products such as gaming notebooks, business notebooks, thin and light notebooks, and women's notebooks.

Now, after five years, Hillhouse's layout in the notebook computer field has been completed.

Compared with the old driver Lianxiang, the product quality still has some problems, but in comparison, the problems are not particularly big.

Some old problems that existed a few years ago, such as heat dissipation causing the hands to feel hot and the power ports being extremely easy to break due to the pursuit of extreme lightness and thinness, have been effectively solved.

Hillhouse is a company that pays great attention to customer experience. Once it has established a firm foothold in a field, its iteration speed is actually very fast.

Correspondingly, the performance in 2018 also increased to 832 million units. However, due to the vicious competition in the notebook business, there was only a simple increase compared with 2017. Now the sales of notebook computers have only reached 362 billion yuan.

The unit price of Hillhouse's laptop business is continuing to decline, but due to the increasing sales volume, it has also brought Hillhouse a very stable source of profit.

Moreover, due to Hillhouse's long-standing high appearance and its disruptive product concept in the notebook market, as well as the role of Hillhouse's ecosystem.

Therefore, although Hillhouse’s notebooks have never been as famous as Lenovo’s, it has firmly established a foothold in the notebook market.

Hillhouse's folding screen mobile phone gave a huge surprise after the release of the tri-fold mobile phone.

It can be said that Hillhouse has achieved direct dominance in the ultra-high-end folding screen market!
After receiving two million orders in December 2017, Hillhouse received orders for three million units in 12!
You know, the core sales volume of mobile phones is in the first month, and it is released slowly afterwards.

And now the three-fold mobile phone is still the electronic Moutai.

Basically, you have to pay an additional 1000-2000 yuan to buy a mobile phone.

It’s been a year!

This is simply a sales miracle!
The fact that this mobile phone has been able to maintain its sales volume is quite impressive.

For an ultra-high-end mobile phone that costs 2 yuan and has sales at this level, it can only be said that it is picking up money with a sack.

In 2018, the sales volume of this mobile phone continued to increase, with sales reaching 600 billion yuan.

Gao Huaijun himself couldn't imagine that such a mobile phone would become a mass-selling machine.

The sales volume of other two foldable screen mobile phones also increased slowly from 106 million units to 118 million units.

The overall sales volume also increased to 160 billion yuan.

The combined sales volume could reach 760 billion yuan.

The Mate series and P series are Hillhouse’s flagship mobile phones.

At the same time, these two mobile phones will also be the two products most affected by the suicide incident.

However, in 2018, due to the advance stockpiling of high-end mobile phone chips, there was no major impact for the time being.

Now Xiaoling APP's overseas expansion strategy is very successful. It has successfully occupied the top position of entertainment APP in South America and the East and Central regions. The targeted promotion of these two products has greatly increased the sales volume compared with the original mild one.

Now the Mate series and P series have provided a very strong role in conquering the market abroad, especially Gwai, which has been dominating the charts in Europe.

In 2017, Mate 12 sold 1453 million Mate series mobile phones, setting a new historical record and refreshing the historical skyline.

In 2018, the successor product of mate12, mate13, still achieved very good sales results.

1543 million Mate series mobile phones were sold.

Sales reached a terrifying 776 billion yuan!

(End of this chapter)