Reborn since 1993

Chapter 396: What I boasted about back then may come true now

Wu Xinyi hopes that Doxin Semiconductor can have its own semiconductor production company. People who come from Huajing all have some regrets.

Huajing entered the industry two years earlier than Shougang NEC Semiconductor, but it is still stuck in the stalemate and has missed a great opportunity.

Now all major manufacturers have their own chip factories. In fact, this is to avoid being controlled by others. Intel, Motorola, Texas Instruments, Hitachi, Philips, Siemens, Fujitsu and many other companies all have their own chip manufacturers and do not need OEM.

Companies like Doxin Semiconductor that look for chip manufacturers for OEM are actually "oddballs". After all, TSMC has only been around for a few years and is currently attracting orders everywhere.

If Dongxin Semiconductor can have its own semiconductor production company, it will not only avoid being controlled by chip foundries such as Shougang NEC as it is now, but also be able to use the lithography machines it develops in the future for its own use. Even if it sells itself, it will be better than not being able to sell any at all!

Before, why there was no team in China developing lithography machines was because even after they were developed, there were no buyers. Countless efforts, time, and resources were spent, but in the end, all was in vain.

After Doxin Semiconductor, companies such as Oriental Times and Shenzhou Memory also reported their performance this year.

Basically, the current situation of Doxin Semiconductor is not much different. It does not make much profit. Compared with its parent company Dongling Hi-Tech, it basically does not make any profit at all. But even Shenzhou Memory, which has suffered the largest loss, has only lost a few million RMB this year.

Li Dongling has prepared iron rice bowls for Dongxin Semiconductor, Oriental Optoelectronics, and Shenzhou Memory. For example, Dongxin Semiconductor makes money from mobile phone chips and landline chip businesses, Oriental Optoelectronics has orders for PHS screens, and Shenzhou Memory has USB flash drive business.

This ensures that even if these three companies are developing technologies such as lithography machines, LCD panels, solid-state drives, etc., which are like money-eating beasts, they can still earn part of the funds themselves, and will not end up earning nothing and relying entirely on Dongling Hi-Tech for support.

If they don’t make money, even companies like IBM, Philips, Toshiba and Nikon will not be able to survive.

Now companies like IBM also have their own lithography machine business, but they don’t take it seriously because it doesn’t make money. Philips has wanted to sell its shares in ASML several times because it invested money but couldn’t get its money back!

For Dongling Hi-Tech, as long as the losses of companies such as Dongxin Semiconductor, Oriental Optoelectronics, and Shenzhou Memory are not too outrageous, it is equivalent to making a profit.

With these three companies, Dongling Hi-Tech will be basically the same as South Korea's Samsung in the future. It will be able to independently develop core components. Chips, panels, and storage will all be in its own hands without being controlled by others. As for sanctions and bans on the sale of components, for Dongling Hi-Tech, they are just barking!
After Dongling Hi-Tech's parent company and Doxin Semiconductor reported their performance, everyone in the conference room turned their eyes to Yao Luoying, who was wearing a women's suit, and many of them had expectations in their eyes.

When Feiyan Technology was founded, Li Dongling painted a big picture for everyone in the conference room today.

All the managers and senior executives of Dongling Hi-Tech are hanging on this big pie. If this big pie seemed far away before, then this year, with the listing of Netscape, an Internet company in Silicon Valley, and the emergence of the Internet wave, this big pie has a chance to be realized!

This big pie is Feiyan Technology, which is listed on NASDAQ!

What are the salaries and bonuses? Just look at how many multi-millionaires and billionaires appeared instantly after Netscape went public. The number is more than a hundred times more than the salaries.

Yao Luoying could also feel that everyone's eyes were on her. Yao Luoying couldn't help but look in the direction of someone. Li Dongling smiled and nodded gently to Yao Luoying.

Seeing Li Dongling, Yao Luoying breathed a sigh of relief and stood up and said, "The sales volume of Feiyan A10 mini radio has exceeded million units this year, making it one of the most popular radio models in the history of China.

Currently, A10 is not only sold domestically, but also exported to regions around the world, including Hong Kong, Siam, Malaysia, Jiaozhi, Pakistan, Bangladesh, Old Europe, and America.

The Feiyan A10, which costs less than RMB 10, has the potential to become a legendary phone, and the export version is only around US$.

Today, when radio has not yet completely withdrawn from the stage, Feiyan A10 has created a miracle, selling nearly million units a year, not only in China but also overseas.

"If it weren't for the impact of other competitors, copycat phones and production capacity, the sales of Feiyan A10 might have increased. The marketing department is promoting it overseas. According to the marketing department's analysis, the sales of this model will be quite good in the next five years or even longer. The global sales in the future may exceed million units... or even more!"

Yao Luoying was a bit conservative and didn't dare to estimate too much, but in fact, the sales of the two radios, KK9 and R909, in the previous life, exceeded million!
“The sales volume of Feiyan Dolphin radios this year is 4.5 million units, with the main users coming from America, Canada, Germany, France, the United Kingdom and other places.

Although there are many brands of multi-function emergency radios now, Dolphin has been recognized by the industry. Its sales may decrease in the future, but it is expected to sell two to three million units per year! "Multi-function emergency radios are ultimately a niche market. Many families buy them as backups and may not even think of them when they are put away in a corner. It is impossible to buy one every year. Plus, with a unit price of $150, its sales volume is impossible to be high.

But more than half of the profits of Feiyan Technology come from Dolphin Radio!
"Last year, Feiyan Technology's revenue was $7.96 million and its net profit was $1.3 million. 84% of the revenue was contributed by Dolphin Radio, which also contributed more than 90% of Feiyan's net profit!"

It may sound absurd, but this is the difference between selling high-end products and mass-market products. Feiyan A10 is selling very well, with 5 million units sold a year, but the profit is less than %, and the selling price is less than yuan. Even if million units are sold, the profit is less than to million yuan.

Dolphin Radio, on the other hand, took the high-end route. Although it only sold a few million units, its profit was around 19%, which actually crushed A10 in terms of profit.

This is like the Apple computers in the past. It seems that other mobile phone brands sell tens of millions of units a year, but more than 90% of the profits in the entire smartphone industry are taken away by Apple.

However, the Feiyan A10 was originally launched to increase brand awareness, so there is no need to be annoyed.

With sales and production lines in operation, A10 provides jobs for Feiyan Technology. An annual shipment of million mini radios is enough to provide a large number of jobs. With jobs, there can be policy and financial support, which can also increase influence.

"Feiyan Technology is currently undergoing a full transformation. Although mini radios and car audio equipment are still Feiyan Technology's main business, next year..."

Yao Luoying said what she had discussed with Li Dongling before coming here today, "Feiyan Technology will announce to the public that Feiyan Technology has transformed into an Internet company, and Himalaya FM Radio will become the label and business card of Feiyan Technology!"

Feiyan Technology is just trying to sell dog meat under the guise of selling mutton. No matter whether it is an Internet company or not, it is Feiyan Technology and it is enough for it to promote itself.

As for whether other people believe it or not, Feiyan Technology has no right to care. As long as they believe in it themselves, that’s enough. Then Feiyan Technology will have the reputation of an Internet company. Coupled with the revenue brought by mini radios and car audio equipment, won’t it become the most popular company in the Internet industry?
As for whether people will find out the flaws, that is purely overthinking. There are so many investment banks and analysts on Wall Street who know nothing about the Internet. If you pull up any person on the street in America and ask him what the Internet is, I guarantee that he will show confusion and helplessness in his eyes.

"How is the development of Himalaya FM Radio going now?" Li Dongling asked.

"At present, Ximalaya FM Radio is developing two versions, Chinese and English, which are expected to be completed early next year.

In China, we have acquired some copyrights of music, novels, storytelling, opera, etc., and they will be available online early next year.

But the English version may take some time, mainly because the copyright is too expensive. Whether it is music, novels, poetry, etc., not only the copyright, but also the licensing fee is a huge sum every year. Himalaya FM Radio cannot afford such a high licensing fee for the time being!"

Feiyan is preparing to go public on the Nasdaq, and Himalaya FM Radio needs to appear in front of Americans, which is the world's largest Internet market. This will allow more investors to see Himalaya FM Radio, making it easier to go public.

The biggest problem facing Himalaya Radio in America is that it has no content. How can an empty website attract users? Even if it wants to tamper with the content, it has no idea where to start.

“Then add some homemade content to the English version of Himalaya FM radio!”

Li Dongling thought for a while and said that copyright in America is too expensive. Several major record companies and publishing companies decide what music Americans listen to. The content of newspapers and books is also determined by them.

Of course, you don't have to care about copyrights. The Internet is in a blank period in the legal industry all over the world, which means there are no legal provisions to restrict the Internet.

However, you can do small things, but if you want to poach talent from several major American record companies on a large scale, those giant companies will really bite you if they are pushed to the limit. This was the fate of the first company established by the founder of Uber. It was taken over by several major record and publishing companies, and was left with heavy debts and almost became a homeless person.

Li Dongling felt that it would be better to use the same method as the American radio station in his previous life, inviting American celebrities, politicians, singers, and sports stars to start their own podcasts on Himalaya Radio, and then talk nonsense on them...

It doesn’t matter whether the earth is flat or not, but as long as it is said and someone believes it, that’s enough, and Himalaya Radio will have influence.

(End of this chapter)