Volume 5 The Prosperous Years Section 11 Accept or Accept?

"Do you think the VCD market is too small, or not long?" Sha Zhengyang decided to test it again to see how strong this guy's market sense of smell is.

Duan Yongming glanced at Sha Zhengyang with some surprise, leaned back a little, and pondered intently, as if he was weighing Sha Zhengyang's intention to ask this question.

The Mercedes-Benz S300 has a spacious rear row, and there is no feeling of crowding for two people sitting in the car, which is a bit of a business class taste.

Duan Yongming is actually not so particular about this aspect, but as a business owner, there are too many people to deal with, whether it is a partner or a government leader, people rely on clothing and Buddha rely on gold clothing This is very marketable in China, so he also followed the local customs and got a Mercedes-Benz S300.

Tiger head run seems to have become the standard for the bosses of large enterprises in Wanzhou, and its initiator is Jiao Hong.

She brought a Mercedes-Benz S320 from Handu as a car, which even made Sanyo have a lot of opinions, thinking that the Lexus LS400, which is now invincible in the United States, should be used to beat Mercedes-Benz BMW to the ground.

However, Jiao Hong still did not choose Lexus after riding the imported Lexus LS400, which made Sanyo very disappointed.

But in private, Jiao Hong still mentioned it to Sha Zhengyang, saying that the V8 Lexus LS400 ride experience is really good, but she is the general manager of Sanyo Ruosi on behalf of Dongfanghong Group, the major shareholder, so it is more appropriate to choose a car brought by Dongfanghong Group, rather than taking Lingzhi according to Sanyo's advice.

Maybe Jiao Hong started this, and later Thunder also equipped with a Mercedes-Benz S300, followed by Wanzhou Pharmaceutical Factory and Handong Pharmaceutical Co., Ltd. have purchased two Mercedes-Benz S300, and finally Gaosheng Electronics also bought a S300.

This seems to have become a beautiful scenery on the streets of Wanzhou, and it has also become the capital for Wanzhou citizens to show off to other friends who come to Wanzhou.

"The market is certainly not small, the domestic economy has developed, the demand for cultural and entertainment life is growing, this is the general trend, especially as we all know, pirated discs from Nanyue are everywhere, this VCD DVD player provides an extremely rich source of films, now karaoke this entertainment method is beginning to be popular, home theaters can be equipped with one, so the market capacity is very large, and now it is mainly urban high-end families buying, I estimate that this year will begin to enter the homes of ordinary people, next year is estimated to be popular in rural areas, so the market is still very large。 ”

Duan Yongming's words made Sha Zhengyang nod, "So you still think this market won't last long?"

"VCD DVD player on the technical content is really not very high, a movement, an MPEG decoding chip, now Huazhong's MPEG decoding chip is better than the effect of Scottber, that is, the movement, as far as I know, Sony and Panasonic actually have the strength to develop the movement, but they didn't pay too much attention to it before, and now Sony is tackling technical problems, it is estimated that the movement will not be a problem at most next year, and Philips's eating alone will be this year. ”

Duan Yongming's judgment is also based on market research.

The lack of market technology threshold makes any grass platform team enterprise as long as it can live the supply of movement and MPEG digital chips, it can quickly pull up a video player company, if you are good at packaging and advertising, it is not difficult to make a lot of quick money in a short time.

But now the explosive growth momentum that is almost tumbling makes Duan Yongming a little scared.

In the fourth quarter of '95, the number of DVD player shipments was three times higher than in the third quarter, and in January '96, the increase in shipments was even more dramatic.

Duan Yongming estimates that the sales volume of VCD players in China may exceed 5 million units in 96 years, and may even exceed 15 million units in 97 years.

In particular, Huazhong's MPEG decoder chip soared in market share after beating Scober, and sold 600,000 sets of MPEG decoders last year, which is still the premise that Scober occupies a certain advantage in the market in the early stage, Huazhong Electronics' profit last year was as high as 15 million US dollars, equivalent to more than 120 million yuan.

The developer of MPEG decoding chips, Hanhai Hi-Tech, charged a patent fee of 220 yuan per MPEG chip in the form of patent authorization, which alone brought a net profit of 130 million yuan to Hanhai Hi-Tech, which directly made Hanhai Hi-Tech the hottest high-tech company in Hujiang.

Although the error correction ability of Scober's MPEG decoding chip is not as good as that of Huazhong, because the current market is in short supply, Huazhong still tacitly agrees with Scober, refusing to fight prices, and tacitly monopolizing to achieve high profits is a tacit reality.

The two sides stabilized the price of MPEG decoding chips between 500 and 550 yuan, and never fell below 500 yuan.

According to the hot trend of the VCD player market this year, Huazhong Electronics's capacity expansion construction from the second half of last year has come to an end, and it is expected that 4 million sets of MPEG decoding chips can be shipped this year.

However, due to the expansion of production, it is expected that the price of both sides will drop to a certain extent, but the price of each set of chips will not be less than 400 yuan, Huazhong Electronics is expected to achieve sales revenue of 1.8 billion yuan this year, and the profit may be as high as more than 1 billion yuan, which is also based on the exclusive patent authorization signed with Hanhai Hi-Tech, according to the production of Huazhong Electronics to implement a ladder patent fee reduction contract, when Huazhong Electronics sales exceed 1 million sets and 2 million sets and 4 million sets of patent licensing fees at different prices.

That's where the value of mastering a technology monopoly lies.

Even Duan Yongming was a little jealous of the high profits of Huazhong Electronics and Hanhai Hi-Tech, which also made him highly admire Sha Zhengyang's strategic vision and perspective.

If Sha Zhengyang hadn't lobbied him hard and assured him of the huge prospect of taking a stake in Hanhai Hi-Tech and Huazhong Electronics, he would not have made a desperate bet on the VCD player market, and now it seems that the huge return brought by this bet is unimaginable.

Because of this, Duan Yongming, who is always proud, has always regarded Sha Zhengyang as his biggest confidant, and thinks that after working hard for so many years, only Sha Zhengyang is stronger than himself in terms of strategic vision, which is comparable to his idol Buffett.

"Duan, are you worried that with the breaking of the monopoly of the movement by Philips, and the rapid increase in the production capacity of Huazhong Electronics and Scober, the bottleneck of the production capacity of the movement and MPEG decoding chips will be released, and more companies will pour into this market, causing the market to quickly turn into a buyer's market?" Sha Zhengyang heard Duan Yongming's worries.

"It's inevitable. The information I got that Sony was stimulated by the high profits of Philips' solo movement, and it will come up with a movement with even stronger error correction ability next year at the latest, and the production capacity will keep up, and Philips is also increasing the expansion of production capacity, aren't you already in contact with Philips? In the new year, Philips will build a movement production plant in your Zhenyang? Although Huazhong has a tacit understanding with Scooper in terms of price, but in the face of such a good market, who can watch the money not make money?

Duan Yongming was obviously also well thought out.

"Huazhong's 4 million sets of shipments this year are the bottom line, and may even break through 5 million sets, Scooper because of the impact of Huazhong Electronics' decoding chips, its own factory construction is a step slower, coupled with the worry about Huazhong tea energy, so the capacity expansion is conservative, but this year they have also expanded their production capacity, at least 2 million sets of production capacity, in this case, the market is so good, who doesn't want to rush in and share a spoonful?"

"Hehe, in this case, as soon as everyone rushes up, the market will be chaotic. ”

Sha Zhengyang shuddered a little when he recalled the tragic VCD price war in his previous life, and he went to buy a super VCD at that time.

In 98 and 99 years, VCD and super VCD standard war, followed by DVD and joined the war group, it can be described as a river of blood, VCD market in just two or three years from the blue ocean to the red ocean, countless VCD companies fell to the ground, and even the once prosperous standard King Aiduo also disappeared like a comet in the sky of fireworks.

"That's also a helpless thing, Chinese companies like to follow the trend, and are not willing to increase investment in technology research, Zhengyang, I really admire you, I actually dare to take over the Lenovo microelectronics design center without any comparison, I guess Lenovo was only afraid that they were kowtowing to give this hot potato gift out of the door. Duan Yongming laughed, "But now they're probably a little bit sorry." ”

"It doesn't matter if Lenovo regrets it, isn't the Chinese Academy of Sciences still among the major shareholders, and Fudan is not also among the major shareholders? The Chinese Academy of Sciences is the second largest shareholder after Dongfanghong, more than your Gaosheng Electronics equity, and the state-owned assets have not only not been lost, but are still achieving huge value-added. ”

Sha Zhengyang smiled coldly.

"If, according to what you said, Huazhong Electronics wants to achieve the shipment of 4 million sets of MPEG decoding chips, even if the patent licensing fee drops significantly, Hanhai Hi-Tech's net income from this piece alone can exceed six or seven billion, right? For the Chinese Academy of Sciences and Fudan, are we not considered the hens that have sent them golden eggs?"

Duan Yongming laughed loudly, "Of course, the Chinese Academy of Sciences and Fudan will laugh from ear to ear, I just said that Lenovo will definitely regret beating his chest, and I regret that Hanhai Hi-Tech should have invested an extra 10 million when it became a shareholder, at least to get the third largest shareholder, so as not to put this kid on an equal footing with me." ”

"Be content, the future market is still very big, and there are many investment opportunities, are you still afraid that you have money and no place to invest?" Sha Zhengyang glanced at Duan Yongming, "Ah Duan, my eyes are powerful enough, are you convinced?"