Reborn since 1993

Chapter 1282 Competitor Crusher

Su Chicheng, the head of the budget management committee of Dongling High-Tech, spoke to Li Dongling and other senior executives of Dongling High-Tech about the budget audit for next year.

The largest expenditure is Dongling High-Tech's research and development budget.

Dongling High-Tech's R&D budget has been increasing every year, and the increase is astonishing, from the earliest 5% to 7%, then to 9%, and finally to 15% last year.

The outside world only sees that Dongling High-Tech has made rapid technological progress in recent years, producing products such as chips, panels, mobile phones, and computers.

Those competitors only envied Dongling Hi-Tech for being able to launch these products, and demanded that their own technology departments follow Dongling Hi-Tech's example.

But those competitors never mentioned how much money Dongling Hi-Tech actually invested in the research and development of these products.

Every year, Dongling High-Tech invests huge sums of money, not only to support its own technology department, but also to provide subsidies to companies such as Tianya Technology, Dongxin Semiconductor, Dongfang Optoelectronics, Shenzhou Storage, and Hanxi Joint Laboratory.

After all, these companies and laboratories, such as Dongxin Semiconductor, do have revenue and their chip sales are quite good.

However, developing chips and lithography machines is extremely expensive, and they simply cannot support those money-devouring beasts on their own.

If Dongling High-Tech headquarters doesn't provide subsidies, Dongxin Semiconductor probably really won't be able to hold on.

"Based on this year's revenue, Dongling High-Tech's total R&D expenditure next year will reach 3.3 billion US dollars!"

When he announced the amount of funding, Su Chicheng himself couldn't help but swallow hard.

As the person in charge of approving the funds, his hands probably trembled uncontrollably when he signed this budget approval document.

Next year, Dongling High-Tech's R&D expenditure will reach a record high since the company's establishment!
Although compared to IBM's $5.2 billion in R&D spending, Ford's $72.36 billion, General Motors' $63 billion, and Siemens' $62 billion, Dongling High-Tech's R&D spending is only about half of theirs.

However, this is already the limit of the R&D funding that Dongling Hi-Tech can afford. The revenue of the companies mentioned above is much higher than that of Dongling Hi-Tech, but their R&D investment accounts for about 5% of their total revenue. Among them, Siemens, which has the highest proportion, only accounts for about 8.5%.

Dongling High-Tech's R&D accounts for 15% of its revenue, which is quite risky in today's technology industry!
This is just Dongling Hi-Tech's R&D investment compared to overseas giants. If it were in China, Dongling Hi-Tech's R&D expenditure would probably be much higher than the total revenue of more than half of the companies in the A-share market!
Compared to its competitors, Dongling High-Tech's investment in research and development is practically dwarfed by theirs.

However, to support the R&D system that Dongling Hi-Tech has established, these funds must be invested. This includes not only the technical department at Dongling Hi-Tech's headquarters, but also a number of its subsidiaries such as Xishanju, Gaode, and Chitu Lingyun Technology. Among them, Gaode is even related to the Beidou satellite project.

Many universities and research institutes that have joined the Hanxi Joint Laboratory now rely on funding from Dongling High-Tech's R&D system to maintain the operation of their laboratories.

These funds are distributed layer by layer, and by the time they reach the various R&D project teams, companies, universities, and research institutes, they actually become somewhat stretched thin.

"Research and development funding must be invested. This is something that Dongling High-Tech must do as long as it continues to operate!"

Li Dongling began by saying, "Back when Dongling High-Tech was first established, the philanthropist Li spent a lot of money on research and development."

It doesn't make sense. Now that Dongling High-Tech has made a profit, it's reluctant to invest in research and development.

The new products from Dongling Hi-Tech, along with the scale of new technologies and patents added each year, demonstrate that these R&D expenditures have not been wasted and Dongling Hi-Tech has received sufficient returns!
Hearing Li Dongling approve the R&D budget for next year, Su Chicheng felt a weight lifted from his shoulders.

Besides the R&D budget, the remaining tasks include investment in Dongling Hi-Tech's parts supply chain, logistics procurement, and funding approvals for Dongling Hi-Tech's global headquarters and automobile production base.

But compared to the research and development funding, these projects are nothing!

"This year, Dongfang Jiayuan has built more than 3400 new employee residences in Pingyang, Yanjing, Shanghai, Pengcheng, and Yangcheng. Of these, 1,200 units, including some villas, are sold to outsiders, and the remaining 2200 units can be distributed as year-end bonuses this year!"

The basic living facilities配套的地下朴路，社区幼儿园，社区超水，社区快递站，社区巴士站，社区诊治，所有配套的基本生活设施，都能都齐全服接出。

"In addition, the logistics department also purchased a batch of shopping cards, cars, motorcycles, computers, televisions, mobile phones and other electronic home appliances from Oriental Shopping Mall as year-end bonuses this year."

"This year's Dongling High-Tech New Year Celebration is jointly organized by the Logistics Department and Oriental Media. The program has been finalized, and the list of invited guests has also been sent to the assistant's office!"

At the end of the meeting, Gao Peng, the head of the logistics department, gave a report to Li Dongling.

The allocation list for Dongfang Jiayuan, the employee housing of Dongling Hi-Tech, is determined along with the annual year-end bonus.

This year, Dongfang Jiayuan built several thousand employee housing units in multiple locations across China. While this may seem like a lot, it's simply not enough for all the employees of Dongling Hi-Tech. The speed at which Dongfang Jiayuan is allocating housing is far slower than the speed at which Dongling Hi-Tech is expanding its workforce.

Not to mention that the houses in Dongfang Jiayuan are not only for the headquarters of Dongling High-Tech, but also for employees of Focus Media, Torch Group, Dongfang Express, Tangyao Group, and Gaode Map.

After all, these companies are also under Dongling High-Tech. We can't just ignore them completely. These companies aren't like stepchildren. Even if their benefits aren't as good as those at headquarters, they can't be completely neglected!
The problem isn't scarcity, but inequality. If there's any bias, it could lead to internal strife within Dongling High-Tech. So, the deserved benefits should definitely be given, even if it's less!

This results in the fact that the number of houses built in Dongfang Jiayuan each year is far from enough to accommodate everyone. Not to mention that Dongfang Jiayuan is employee housing and is positioned as a mid-to-high-end property, with the goal of rewarding employees. Unlike those real estate developers who build houses at all costs regardless of their quality, Dongfang Jiayuan will continue to focus on rewarding employees in the future.

The Dongfang Jiayuan villas were sold to Dongling Gaoke's own employees at cost price, or even with a partial subsidy. The main way to make money and break even was by selling the villas.

The villas in Dongfang Jiayuan are highly sought after, and their designs are all handled by well-known designers.

In addition, some of the houses in Dongfang Jiayuan were sold to their own people, while others were mainly sold to local municipal government and state-owned enterprise users, and still others were given away as gifts to police stations, fire departments, university faculty and staff, etc.

This gives the residents of Dongfang Jiayuan a certain social standing. Whether in Pingyang, Beijing, or Shanghai, Dongfang Jiayuan has a high level of prestige, and more importantly, it retains its value!
Even if the residences in Dongfang Jiayuan become old and need to be demolished in the future, these residences are all in prime locations.

Furthermore, the residents are connected to the local municipal government and state-owned enterprises, so maintenance and demolition are guaranteed. This ensures that Dongfang Jiayuan will not become an old, dilapidated, and neglected place in the future. Dongling High-Tech would never cheat its own people.

"The housing allocation quotas must be allocated properly and distributed according to the approval process. I don't want any unexpected problems to arise!"

Li Dongling looked at Gao Peng and said that Dongling High-Tech's housing allocation quota has changed from being open to anyone to requiring more than two and a half years of employment to be eligible to apply. If you leave the company within five years, you will have to pay the difference in housing price. The application requirements will become increasingly stringent in the future.

Especially in Beijing, Shanghai, Shenzhen, and other places, as it becomes increasingly difficult to obtain local residency and housing prices rise, the Oriental Garden residences in these areas are expected to become increasingly sought-after, with countless people vying for this shortcut to obtaining residency in Beijing and other places.

There's no guarantee that nothing bad or shady might happen here. Li Dongling doesn't want Dongfang Jiayuan, which was originally intended as employee benefits for Dongling Hi-Tech, to end up being distorted or even becoming a tool for some people to profit from.

"Don't worry, Mr. Li. The logistics department reviews applications based on the lists submitted by each department, and Manager Zhou is also overseeing things. There won't be any problems."

Anyone who dares to reach out, I'll chop off their dog paws!

Gao Peng patted his chest and made a bold statement, saying that the logistics department had been severely punished by the disciplinary committee this year, and for Gao Peng, the more important thing was that he lost face.

At this critical juncture, if anyone dares to cause trouble again, Gao Peng will really have to deal with them severely.

"Send out the guest list and invitations for this year's annual meeting in advance, whether they are from the provincial capital or Beijing!"

The annual meeting of Dongling High-Tech is no longer just for its own people. It also needs to send invitations to people who support and endorse Dongling High-Tech, such as the Pingyang Municipal Government, Hanxi State-owned Investment Group, Hanxi Provincial Department of Industry, Hanxi Municipal Government Office, and important figures in Hanxi Provincial Government, as well as the Yanjing Economic and Trade Commission, Development and Reform Commission, State-owned Assets Supervision and Administration Commission, and Industry and Information Technology Commission.

Whether the other party's director comes or not is not something Dongling High-Tech can decide, but the invitation must be sent; that's the rule of the game.

……

Sitting in the reception room, Feng Miaoyu flipped through a magazine in her hand. The room was well-heated, and the members of the Yanjing Business Daily team who had come with her had long since fallen asleep.

Feng Miaoyu and the others had been waiting for a whole day, from day to night. Feng Miaoyu was also starting to feel the strain, so she kept drinking coffee and tea to force herself to stay awake.

Feng Miaoyu knew that this interview opportunity was rare, and if she missed it, it wouldn't be so easy to get another one.

Just as Feng Miaoyu refilled her coffee and took a sip, she suddenly heard a huge cheer coming from the headquarters of Dongling High-Tech. Feng Miaoyu knew that everyone at Dongling High-Tech was working overtime today, since the senior executives were having their year-end meetings, and the lower-level employees couldn't possibly run away.

The cheers that came from the building where Dongling High-Tech's headquarters was located spread to the entire Changqing Road, with cheers and shouts rising and falling.

If Feng Miaoyu had a high vantage point, she would see that not only the entire Changqing Road, but also the Dongling Hi-Tech Pingyang Production Base, Torch Group, and even the construction sites of the Dongling Hi-Tech Global Headquarters Base and the Dongling Hi-Tech Automobile Production Base, were experiencing tremendous noise.

"Dongling Hi-Tech sent an email to all employees announcing that year-end bonuses would be distributed, starting at ten months' salary!"

Feng Miaoyu then found out why there was such a loud cheer.

(End of this chapter)