Chapter 930: You're Losing Your Money

Seeing the smile on Fang Chen's face, Shen Wei and Liu Xuehong's heads couldn't help but hang lower.

"Look at the way you two are now, how do you look like the general manager and vice president of a 10,000-person factory, it's just embarrassing, the Fujitsu has a thicker background than us, can afford to lose money, is more famous than us, the quality of the equipment is better than ours, you can get the order from the Eastern Suburbs Bureau, it's nothing, or are you worried that I will unload your head?" Fang Chen took a sip of the mutton soup in the bowl and said casually.

Hearing this, Shen Wei's face suddenly swelled with a blush, "Fang is always wrong, we underestimated the strength of the opponent too much, and we have been immersed in the arrogance of the previous victory, we didn't pay attention to the opponent at all, let alone perceive the opponent's possible counterattack, and never considered the due plan as a whole." ”

"Okay, I'm too lazy to listen to what you two are doing with my crying faces, besides, Fujitsu can be so ruthless, I didn't expect it, it's amazing!" Fang Chen sighed.

He was also surprised that Fujitsu was able to decisively reduce the price from the original $320 to $180, a full 45% price reduction, and give up the high income from the installment loan.

He just calculated in his heart that Fujitsu did this at the cost of two billion Chinese coins.

If Fujitsu had continued to fight with them, the profit on the financial statements would have dropped from the original 1.6 billion yuan per year to minus 4 billion yuan, and it would also have to bear the same huge pressure as Qingtian Communications, which would not have seen a penny of cash in two years.

Carefully calculated, Fujitsu will have to throw more than 4 billion yuan into China this year to continue to maintain this strength.

Such a big price, Fujitsu actually said that it would be paid, Fang Chen really felt like he had been taught a lesson by Fujitsu at this time, he still underestimated Fujitsu.

I thought that Fujitsu had a big business and a high level, and it was natural that there should be a big company disease, and it was difficult to make decisions quickly, but who knew that this was not the case at all.

"I think the reason why Fujitsu was able to make up its mind so quickly is that the East Japanese government has given them a backing, and the company is all supported by you alone. Shen Wei slapped his sycophants on the back.

Liu Xuehong glanced at it in surprise, his face was calm as usual, as if it was indeed Shen Wei, and suddenly felt that he had to study hard with Shen Wei.

Of course, he also knew that what Shen Wei said was true, unlike Qingtian Communications, where all production costs were funded by Mr. Fang with his own efforts, as long as Fujitsu sold the equipment, the Dongwa government would immediately give the equipment to Fujitsu, that is to say, the loan contract signed by the Post and Telecommunications Bureau to purchase the switch was actually signed with the Dongwei government.

Just like Feng Lun and his real estate development and selling houses, the buyer signs an installment contract with the bank, not with a developer like Feng Lun.

What Fujitsu really needs to bear is a loss of about $80 per line, and the pressure is definitely much less.

Therefore, it is natural that Mr. Fang is even more amazing.

He just felt that Shen Wei's tone of voice just now was too explicit.

"What the hell is the East Japanese government? That's a little bit worse than me. Fang Chen smashed, smashed, and said.

Immediately afterwards, Fang Chen sighed, and said a little helplessly: "But there is no way, who makes Dongwu rich, it is the second largest economic country, with a per capita GDP of 28,000 US dollars, 50% more than the Americans, and two years ago, he also shouted that if he sold Tokyo, he could buy the United States, and it is naturally nothing to pay this money in advance, and the average Chinese per capita is only more than 300 US dollars, which is one-ninetieth of the people, which is incomparable." ”

He naturally also wants Huaxia to be strong, help him support him, and don't let him be so difficult.

But the key is that it really can't be done, as far as the domestic situation is concerned, although it is not as poor as a jingle sound, but it is almost the same, and the dignified cabinet of the big country actually calculates him all day long for a mere two or three billion US dollars.

He blushed for Dean Zhu when he thought about it.

Therefore, if Dean Zhu can not cry poverty with him, he is already thankful, and he dares to think that Dean Zhu is like the Dongwei government, and he will bear the installment payment for him with a stroke of the pen.

It can be said that the interest-free loan that can squeeze out one billion yuan for him is already the last copper plate in Dean Zhu's pocket, and it is the greatest support that can be given to him.

The financial support given by the above throughout the year will also allow the issuance of 500 million yuan of Pudong construction bonds, and on the basis of the original annual loan of 100 million US dollars to Shencheng, the preferential interest rate loan will be increased by 200 million US dollars per year from this year, and Shencheng will be allowed to issue another 100 million Huaxia yuan shares for the development of Pudong in addition to the original quota.

After thinking about it for a while, and coming back to his senses, Fang Chen looked at Shen Wei and the others, his face sank, and he said seriously: "I don't want to listen to the review, you tell me, what are you going to do next?"

"We have discussed with Jiamu, Bao and General Consultant Shen, and the first thing to move is the price, which is at least about $70 from the original price of $210......

Speaking of this, Shen Wei glanced at Fang Chen, although the price of the switch was reduced to one hundred and forty dollars, and several of them felt that it was more appropriate, but in the end, it was Fang Chen who made the decision.

"Then what is our current cost, has it come down?" Fang Chen asked.

"This is exactly what I want to report to you, according to your instructions to reduce costs, optimize processes, and upgrade procedures, the institute has made a lot of breakthroughs, and some new technologies have been used in actual production, and it is expected that not only the quality of the products can be raised to a higher level, but also the cost will be reduced from the original 100 dollars per line to about 87 dollars. ”

Hearing Shen Wei say this, Fang Chen nodded lightly, science and technology are the primary productive forces, and grasping the upgrading and transformation of science and technology is the right way.

In the previous life, Huaxia was able to reach a telephone penetration rate of 50 percent in the millennium at a rate that exceeded ten times the prediction of the experts of the Post and Telecommunications Bureau, instead of the so-called growth from 1% to 5%, is not because of scientific and technological progress, the cost of the exchange has dropped from 300 to 400 US dollars per line when the eight international giants monopolized it to 40 or 50 US dollars per line, and the quality and advanced nature of the product itself have made incomparable progress.

Of course, most of this progress depends on domestic companies such as Huawei and ZTE, and if you count on the eight international giants such as Lucent and Fujitsu, Huaxia's telephone penetration rate can increase fivefold in ten years, which is already a relatively optimistic prediction.

After all, no one is willing to spit out the meat that reaches their mouth.

Just like Fujitsu, if it wasn't forced by Qingtian Communications, how could it be willing to give up more than 2 billion profits this year and supply the Huaxia Post and Telecommunications Bureau switch at a loss.

"It's really good to be able to reduce it to eighty-seven dollars, thank you to the staff of the research room for me, and then the bonuses that should be given by various rules and regulations must be given to ......" Speaking of this, Fang Chen's voice paused, glanced at the two of them and continued: "But so that you can't your tail, you still need to continue to work hard, eighty-seven dollars per line is definitely not the end of the cost reduction, there is still a lot of room to be reduced." ”

Shen Wei and Liu Xuehong nodded yes again and again.

"In this way, one hundred and forty dollars per line, we can still have 37% of the gross profit, which is still a bit high, can we reduce it by another ten dollars to twenty dollars?" Fang Chen pondered for a moment and asked.

Shen Wei's face changed slightly, revealing a look of embarrassment, "Ten dollars is probably okay, so you can maintain 30% of the gross profit, but twenty dollars is really not good, if it is lower, it will not be able to guarantee the company's technological improvement, investment in various scientific research projects, and even some cooperation projects with various university research institutes and professors will also be cut off, as for the cooperation with foreign universities and research institutes, let alone the cooperation." ”

You must know that because of Fangchen's emphasis on scientific and technological research and development, Qingtian Communication will basically invest 100 million yuan in the company's various scientific research projects every month.

If the sales are calculated according to every 10,000-line switch and some other matching equipment in the computer room, the 3.6 million line switch of Qingtian Communication can create at least 6 billion sales.

The R&D expenses of 1.2 billion yuan this year are equivalent to 20% of the company's gross revenue.

Therefore, the gross profit must be maintained at more than 30%, so that the net profit can be 10% after subtracting 20% of the investment in scientific research.

If the price of each line drops to $120, minus the investment in scientific research, then DynaSky Communications will only have a net profit of 3%.

Thinking of this, Shen Wei suddenly had a shuddering feeling, in this era when industrial products can basically maintain 30% of the pure profit, Qingtian Communication only has 3% of the pure profit, he really feels like crazy.

This is a high-tech communication equipment company, even a foundry like Foxconn is not as good, and now Foxconn can still have 5% of the net profit.

Of course, this money was actually pulled out of Fang Chen's pocket, after all, Qingtian Communications is now poor, only spending money and no income, it is not as good as the first half of the year.

In the first half of the year, relying on the old products left by Luozhou telephones, LH24-LH240, etc., there are still one or two hundred million sales, not only can they be self-sufficient, but they can also pay bonuses without anything.

Fang Chen quickly calculated in his heart, and sighed helplessly, "3% of the net profit is a bit low, if it grows by another 5%, it can be about 8% to survive." ”

The communications industry is definitely a proper high-tech industry, especially after entering the 5G era.

What 5G has brought to human society is not only for example, upgrading from the picture era to the video age, that is, the so-called, 3G can see Kurai empty pictures, 4G can see Kurai empty video, and various video and short video websites have developed rapidly.

Because of the characteristics of 5G's high speed, low latency, and wide connection, human society finally has the opportunity to fully and synchronously extend all the functions of vision, hearing, taste, smell, touch, and central nervous system consciousness.

"High speed" ensures the massive amount of information and incomparably sufficient details, "low latency" ensures synchronization and interaction across space, and "wide connection" makes the existence of bits and pieces of the external environment said to be the sender of information details.

Flowers, trees, grasses, and trees have migrated from the high-fidelity of the physical world to the data world, and for the first time in the new world where things are connected, it will be possible for human beings to simultaneously free all their faculties from the shackles and confinements of the physical body.

But what is extremely incommensurate with the identity of a high-tech company is the profit margin of the communication equipment industry.

Originally, communication equipment companies, such as the so-called seven countries and eight systems, the eight international communication giants in the era of wreaking havoc in China, these enterprises can basically maintain about % of gross profits.

However, after the rise of Huaxia Communications such as Huawei and ZTE, such good days are completely gone, and the profit margin can basically only hover around 10%.

Take Huawei as an example, Huawei's revenue in 2018 was 720 billion, but its net profit was only more than 50 billion, about 8% of the net profit, which is very different from its identity as the world's largest communication equipment company.

The reason why Huawei's profits are so low is because Huawei has invested a lot of money in scientific and technological research and development, and Huawei's R&D expenses in 2018 are as high as a little more than 100 billion, almost twice the net profit, accounting for 14.1% of sales revenue.

In addition, Huawei's R&D investment is not only in 2018, but has been continuously invested for ten, 20, and 30 years, and Huawei has invested 480 billion yuan in R&D in the past ten years.

According to data released by the World Intellectual Property Organization (WIPO), a subsidiary of the United Nations, Huawei filed 5,405 patent applications with the agency in 2018, ranking first among all companies in the world.