Wu Hengyuan continued: "In addition, Chongguang's mobile base station has passed the acceptance of experts from the Ministry of Posts and Telecommunications, and has received orders for 279 units in 17 cities in five provinces, which is expected to become a new growth point for profits in the second half of the year."

However, at present, 80% of the components of mobile phone base stations need to be imported, and Motorola has to pay patent fees, so the gross profit margin is not high, and it is estimated that it can be maintained at about 30%, and it may be close to 20% in the future.

On the base station business, our competitors are mainly Huachuang and ZTE, but the mobile base station business is currently the hottest, the entire industry is growing in an all-round way, Chinese are desperately buying mobile phones, the growth rate of the market is estimated to double every year in the next few years, so we don't have to worry about products not selling.

And the base station business can expand our supply chain, so that our purchase price can be cheaper, but also to hire more workers, for the Hushan government, we can provide a large number of production line employment opportunities, which also increases the local weight of our enterprise, relying on the development of this new business, our Hushan new plant phase III construction project has been nearly completed, a 200-meter-long giant plant will be put into use soon, specifically used to manufacture base station equipment, the whole set of assembly line is currently in the installation and commissioning, our R & D building has been capped, can be put into use within the year, the equipment inside are world-classThere is also the largest and most advanced electromagnetic darkroom in China, and in the future, we will not have to go to the Beijing Post Telecom Test Center to rent a space in the research and development and testing of our communication equipment. ”

Other directors nodded frequently when they heard this, and they were excited about the performance and development of Chongguang Communication in the first half of the year.

Wu Hengyuan said: "At present, there are many projects under research in Chongguang Communication, such as PHS whole system turnkey project is very important, we have more than 200 front-line engineers are developing around this project, in addition to GSM and PHS mobile phone assembly and research and development business is also in the process of research and development, the pre-research work of network router business is also nearing completion, and the research and development of ADSl technology and related equipment has also invested a lot of manpower and financial resources.

In short, now we have a big spread in Hushan, and the harvest period should be in the next few years, I can assure you of the board of directors that the next growth of Chongguang Communication is unlimited, just like Mr. Hu said, as long as we firmly grasp the lever of technology research and development, and make our own core technology, then all problems are not a problem. ”

Hu Yiting smiled: "Very good, after listening to Mr. Wu's words, I am very encouraged, and then the Microelectronics Division will fully cooperate with Chongguang Communications, and come up with the core chip design of related projects as soon as possible, such as the router, I already have a draft, it should not be a big problem, I also have a plan for the single-chip design of PHS mobile phones, let us work together in the second half of the year to build the blueprint into reality." ”

Wu Hengyuan was a little excited: "God! Great! Mr. Hu really deserves to be the super brain of our Chongguang! It is the heart of our Chongguang to survive! It is the greatest guarantee for us to move from victory to victory! Mr. Hu, rest assured, I will fully cooperate with you during the second half of the rotation period and implement these R&D projects of Chongguang Communication into products one by one! Let's do it in an all-round way! Blossom on all sides!"

The other directors were also very excited when they heard this, and simply applauded, and the rhythm of the applause gradually became intense, uncontrollable, and even chaotic.

For Hu Yiting's consistent genius temperament, this kind of omnipotence, everyone can only express their inner turmoil in this way that is almost worshipful.

Hu Yiting smiled, raised his right hand slightly, and patted his palm forward.

Next, let's talk about the product business of the Microelectronics Division. Hu Yiting said.

Wu Hengyuan looked at Wang Lili: "Let's talk about this piece by Mr. Wang, I had almost no contact with this piece in the first half of the year, and now I have just taken over." ”

Wang Lili nodded briskly and said directly: "In the first half of the year, all the businesses of Chongguang Microelectronics were growing rapidly.

THT1062 Although it continues to sell well, and more than 10 million pieces have been produced and sold, each patent is only one yuan, which is really nothing to do for today's Chongguang, so I won't talk about it."

Youying Overlord coprocessor is our most dazzling star product in the first half of the year, only in the domestic market, we have sold a total of 11 million pieces to Changxiang and other machine manufacturers, as well as dozens of large and small graphics card and motherboard manufacturers, with a total profit of more than 3 billion yuan, and the products of these manufacturers are mostly exported in addition to some of them in China, earning a lot of foreign exchange for the country.

In the foreign market, we completed more than 14 million export contracts in the first half of the year, with a total profit of 460 million US dollars, that is to say, in the first half of this year, more than 40 million computers sold in the global PC market, one-third of them used our Youying Overlord coprocessor. Of course, my estimate may be wrong, after all, our chips are also used by many users as the first choice for upgrading old computers, so our share of new installations may not be so high.

In addition, our global partner Cyrix has been reported to ship more than 5 million 6X86-Dragon series processors in the first half of the year, although the price of some of their products has been reduced, and we have promised them to reduce the royalty by 1% per million, with a minimum of 10%, so we have reduced the royalty fee we charge them to 15% of the selling price, and the cumulative royalty collected from Cyrix in the first half of the year has exceeded $350 million.

In addition, we have also licensed technology to AMD and reached a technology cross-licensing agreement with Intel, so we are expected to obtain patent money from AMD in the second half of the year, and Intel's new products may have a negative impact on the sales of Cyrix and AMD-related products.

Therefore, after comprehensive consideration, we estimate that in the second half of the year, the demand for Youying Overlord coprocessors in the domestic and foreign markets will continue to increase, after all, mid-range models account for half of the PC market sales, and the number of users who need to upgrade continues to increase, in addition, we expect that the Japanese side will once again propose to increase the number of films, so the profit of the Youying Overlord chip in the second half of the year is expected to slightly exceed the first half of the year. ”

Wu Hengyuan applauded: "Mr. Wang has done a beautiful job, just this chip has created more than 800 million US dollars and 3 billion yuan of profits for us in the first half of the year!

Wang Lili said with a smile: "Good products can sell themselves by themselves, I really don't dare to take credit." ”

Lin Yun praised: "Mr. Wang is too modest, the Microelectronics Division is indeed our Chongguang ace department, and the profitability of a product will compare all of our Chongguang Communications." ”

Hu Yiting hurriedly said: "Don't underestimate optical communication, the good days of hundreds of billions of dollars a year in the future are still ahead!"

Lin Yun's eyes lit up: "Thank you, Mr. Hu, I also believe that as long as Mr. Hu is at the helm, Chongguang Communication will one day become China's Lucent, China's Alcatel, and China's Ericsson!"

Hu Yiting smiled and said: "Okay, good, it's good to have confidence, sooner or later, be patient." ”

Everyone laughed when they heard this.

Wang Lili took over with a smile: "The sales momentum of our VCD decoding chip CMP1J1 is also rising, and 8 million pieces have been shipped in the first half of the year!"

Although we have lowered our selling price seven times in the face of Scober's price reduction competition, from $60 per piece at the beginning of our launch to $27 at present, this price is still much higher than our cost of production, and the profit is still very high. On the other hand, Scottber seems to have no motivation to continue to lower prices, since the price was adjusted to $32 in mid-June, there has been no movement for more than a month now, and it is estimated that they do not want to continue to follow up on the price reduction and fight the price war with us.

In addition, I heard that their new VCD decoder chip has been developed, according to the parameters and functions they announced before, it should be imitating us, for example, they added karaoke function, and also provided manufacturers with a custom LOGO setting interface.

In short, I estimate that the VCD market at home and abroad will continue to maintain rapid growth in the second half of the year, so the price per piece should be stable at more than US$25.

At present, Huajing Factory has undertaken all of our CMP1J1 chips, so we don't need to spend dollars on the production of this chip now, as long as we pay RMB, the current Huajing Factory gives us a price of 510,000 yuan per 1,000 pieces, equivalent to 51 yuan a piece, so we still have a lot of profit margins, if Skober moves, we can easily defeat them with a price war.

To sum up, CMP1J1's profit in the first half of the year is still very good, with a total profit equivalent to more than 1.6 billion yuan. ”

Ma Huateng's eyes straightened when he heard this, and he exclaimed: "It's amazing, it's amazing, the microelectronics division is simply a cash cow, so much money! How can this be spent?"