Reborn since 1993

Chapter 392: There is no turning back when the bow is fired
Dongling Hi-Tech is no longer the makeshift team it had when it was first established a few years ago. Now, senior management positions, especially department managers, are basically filled to the hilt.

If a position becomes vacant, there will be many people eyeing it not only inside but also outside. In this way, when you become a department manager, not only will your salary plus bonus and dividend basically start at one million, but your power and status will also increase significantly.

The fact that Duan Youli dared to take the responsibility is enough to show his character. He is not like Liu Jiande of Xicheng Wireless Factory No. 1 who is a non-stick pan. But if he really gets serious, his position as production manager may be in trouble or even lost.

"Now is not the time to discuss this. What is the current situation of the production capacity of Xiaolingtong mobile phones?"

Li Dongling spoke up to help Duan Youli out of the predicament. In fact, he was also expressing his support for Duan Youli. Anyone with a discerning eye could hear that Li Dongling did not blame or replace Duan Youli's ideas. Li Dongling was quite clear about Duan Youli's dilemma.

Hearing that Li Dongling had saved him, Duan Youli was relieved. "The sales volume of Xiaolingtong has exceeded our expectations. Before, Dongling Hi-Tech's production department had never produced products with such a large shipment volume. We were not experienced enough, and the production line staff were not skilled enough!"

"In addition, Dongling Hi-Tech introduced several mobile phone production lines from overseas for trial production, acquired some technologies and patents, and invited some overseas engineers as consultants. The rest of the mobile phone production lines were all imitated, improved, and self-developed by Dongling Hi-Tech!

Including production lines, high-speed automatic placement machines, etc., which took a lot of time.

Dongling Hi-Tech's production department is now the only one in China that has independently developed a domestic mobile phone production line with the longest process, the most complete procedures, and the deepest finishing that can compete with mobile phone manufacturers such as Nokia, Motorola, and Ericsson.

Dongling Hi-Tech can independently complete the entire process including mobile phone shell injection molding, spraying, shielding treatment, component mounting, whole machine testing, and whole machine inspection!"

"It took a lot of time to develop the production line and train the staff. In addition, the sales of Xiaolingtong exceeded expectations, resulting in insufficient production capacity!"

Duan Youli said that Dongling Hi-Tech's production department chose to develop its own mobile phone production line. Of course, this is related to the fact that the current level of mobile phone technology is not yet too sophisticated, otherwise Dongling Hi-Tech would not be able to do it.

Duan Youli's production department basically works with the technical department to improve the mobile phone production line while it is in production, and then copies the improved production line. Regardless of whether it is a PHS, GSM or CDMA type of mobile phone, there are basically huge differences in production equipment, processes and technology.

"In addition to the reasons on the production side, it is also related to the parts supplier..."

Duan Youli's eyes unconsciously glanced in the direction of Li Dongling, and then he continued, "Dongling Hi-Tech's parts suppliers have never handled a large order like Xiaolingtong.

Suppliers including Dongxin Semiconductor, Dongfang Optoelectronics, BYD, and Hanxi New Materials spent a considerable amount of time upgrading their equipment and increasing production capacity. Parts were always difficult to supply in sufficient quantities, which also restricted the production of Xiaolingtong! "

Duan Youli has something to say but hasn't said it clearly, that is, Li Dongling requires that all Dongling Hi-Tech products, such as Xiaolingtong, Shenzhou digital cordless phone, Silver Sable mouse, and Shenzhou USB flash drive, be purchased from Dongling Hi-Tech's own parts suppliers as much as possible!
This means that Duan Youli has no choice but to purchase parts on a large scale from overseas or wait for Dongling Hi-Tech's parts suppliers to increase their production capacity.

The advantage of cultivating suppliers in the industrial chain by yourself is that you can control them at will. You know the subordinates you have cultivated well and you basically don’t have to worry about quality problems.

Dongling Hi-Tech can fully control the suppliers in the industrial chain. There is no need to worry that the younger brothers will be suddenly abducted one day, or the cooperation with Dongling Hi-Tech will be suddenly terminated, because Dongling Hi-Tech has countermeasures. As the parts suppliers of Dongling Hi-Tech, including BYD, have all been invested in by Dongling Hi-Tech!
But the shortcomings are also obvious. Currently, if we take any single one of Dongling Hi-Tech's parts suppliers out, there is still a certain gap in technology compared with its overseas counterparts.

This requires Dongling Hi-Tech to be cultivated slowly. There is no use in being impatient. The heights that Dongling Hi-Tech can finally reach will determine how high my younger brother can climb.

In its past life, Apple selected component suppliers instead of developing its own. But that was based on the fact that it had the support of America and did not have to worry about any disaster.

If Dongling Hi-Tech also uses a large number of overseas parts suppliers, once it is targeted by America, then the foreign parts suppliers will not dare to disobey America's orders. If they say they will cut off the stock, they will cut off the stock for Dongling Hi-Tech. Then they will have no place to cry...

Building our own industrial chain may be a bit slow, but as long as we don't go astray, there is hope of catching up. The key is to be the leader and lead the way. Once the industrial chain is completely built and the cost can be greatly reduced, then Dongling Hi-Tech's mobile phone business will be a dimensionality reduction blow to any opponent, regardless of quality or cost!
Just like BYD Auto in its previous life, it self-developed the entire industrial chain, including R&D design, batteries, motors, electronic controls, drives, management systems, production, and assembly. After 2100 years of hard work, when it came out, it launched a car model priced at yuan and claiming to be able to run kilometers, which directly overturned the table in the automotive industry and forced some friendly competitors to start cursing.

"We have already decided to develop our own production line and purchase parts from Dongling Hi-Tech, a parts supplier. This will not change now or in the future!"

Li Dongling said, this is to endorse Duan Youli, Duan Youli does not have to pay any price for this. "Next year, what level of production capacity can be achieved?"

"Now the Dongling Hi-Tech Industrial Park in Shanghai has started production, and the third phase of the Yangcheng Dongling Hi-Tech production base is also about to begin. If the full production capacity is put into operation next year and the supply of parts can keep up, the production capacity is expected to increase by about twice compared to this year!" Duan Youli said.

Li Dongling turned around, looked at Ren Yuefeng and Zhang Ao, and then nodded. Starting next year, as long as Xiaolingtong can maintain a certain market share in China and then start to attack the overseas market, the annual shipment volume can exceed 20 million units, which is already quite good.

What Li Dongling needs is to maintain the sales volume of Xiaolingtong in the next few years, and then take advantage of the good market of PHS. Whether he asks Nippon Telephone and Telegraph Company or other manufacturers such as Panasonic, Kyocera, Nokia, Ericsson, and Motorola to take over Xiaolingtong, he must make Xiaolingtong's performance look bright and beautiful.

After Shenzhou digital cordless phones and Xiaolingtong, other responsible persons also reported on the status of products such as Silver Sable Mouse and Shenzhou USB flash drives to other departments.

“The sales of the Silver Sable Optical Mouse have increased due to the impact of the overseas gaming market, and the revenue this year is expected to exceed 6500 million US dollars!
The price of USB flash drives has experienced a round of price cuts due to the emergence of other brands such as Toshiba. This year, the revenue from the sales of Shenzhou USB flash drives is approximately US$2.27 million!
This year, Tanglin Hi-Tech's headquarters revenue is expected to be around US$6.7 billion, with a net profit of around US$938 million."

Hu Zixian, the financial manager of Dongling Hi-Tech, revealed some of Dongling Hi-Tech's background to everyone present. However, such performance and profits still made everyone in the conference room excited.

Dongling Hi-Tech's current performance has made it the undisputed leader in the domestic technology industry. Whether in terms of performance or profit, the second place cannot catch up. Even the current Chrysanthemum Factory is not as good as Dongling Hi-Tech!

"More than 68% of Dongling Hi-Tech's business comes from overseas markets. Old Europe has become Dongling Hi-Tech's largest overseas market, followed by Japan, Hong Kong, Brazil and other places.

The mobile phone business has become Dongling Hi-Tech's largest business, contributing more than 73% of its revenue!
The second largest business is digital cordless phones, the third largest business is USB flash drives, and the fourth largest business is computer peripherals such as the Silver Sable Mouse!

Hu Zixian reported the financial situation of Dongling Hi-Tech to the conference room, mainly Li Dongling, "Because of the self-developed production line, plus the investment in Dongxin Semiconductor, Dongfang Optoelectronics, Shenzhou Storage, Wanjia Electric City, and the supply of parts from Dongling Hi-Tech's parts industry chain, a large part of Dongling Hi-Tech's profits have been reduced!
According to Nokia's earnings forecast, Nokia's net profit this year may exceed US$25 billion, far exceeding Dongling Hi-Tech's profit!"

Mobile phones are the most profitable products of this era, without a doubt. Relying on the mobile phone business, Dongling Hi-Tech's performance this year has exploded, which is equivalent to a direct increase of nearly 70% in revenue.

Nokia, which had just ascended the throne of the mobile phone empire, performed even more ferociously. Two years ago, Nokia was losing $25 to $ million a year. However, just over a year later, Nokia's net profit reached $ billion. It is conceivable how profitable the mobile phone business is.

Not only Dongling Hi-Tech and Nokia, but other companies related to mobile phones, such as Motorola, Ericsson, Samsung, Kyocera and others, have achieved explosive performance.

Precisely because it is making so much money, Motorola has started to do something weird. It feels like the earth can no longer accommodate it, so it has launched its ambitious Iridium project, which is now being promoted around the world, causing Motorola's stock price to rise.

"At present, Dongling Hi-Tech's biggest expenditure is on technology research and development, as well as Dongxin Semiconductor, Dongfang Optoelectronics, Shenzhou Storage and other businesses!"

As the chief financial officer, Hu Zixian reminded Li Dongling that although Dongling Hi-Tech seemed to be making a lot of money now, it also had several money-eating beasts under its command, and these money-eating beasts would require Dongling Hi-Tech to spend a lot of money to support them.

Li Dongling rubbed his cheek. He also knew what Hu Zixian meant, but the arrow has been shot and there is no turning back. He had already spent a lot of money, bought so much equipment, and recruited so many R&D personnel. If he stopped now, all the previous efforts would be wasted. If he wanted to restart, it would probably cost even more money.

"Next year, the R&D budget will be increased!"

"More improvement?!"

Hu Zixian couldn't help but shout, "According to the plan made before, Dongling Hi-Tech Headquarters will take out 5% of its profits every year to invest in research and development funds for companies such as Hanxi Joint Laboratory, Dongxin Semiconductor, and Dongfang Times.

Now this amount of funding will directly exceed more than 400 million yuan, and this does not include the special research and development projects that Dongling Hi-Tech Headquarters is responsible for..."

(End of this chapter)