At the end of December 1986, Lin Qi ended his trip to Beijing.

Although Lin Qi did not decide to immediately increase the scale of investment in the capital, he still took precautions and invested 100 million yuan per year in the core area of the capital to buy shops or office buildings with a larger area.

As for where the funds come from, of course, Lenovo dividends. Because, the monopoly of the domestic Pangu host in the domestic market general agent, although each computer only earns 200 yuan of profits, but the victory is in the exclusive monopoly, a year shipment of more than one million units, which makes Lenovo now close its eyes to earn hundreds of millions of yuan in gross profit margin every year. In addition, Lenovo is a monopoly channel provider of hardware and software retail around Pangu in China, and the gross profit margin of this market is much higher than that of Pangu host.

All in all, Lenovo is now much larger than it has historically been, with net profit expected to exceed 300 million yuan in '86 after deducting operating costs and taxes.

What makes Lin Qi speechless is that Lenovo has actually satisfied this kind of general agent business, and has no further technical pursuit.

Even if the new venture electronics company authorized Lenovo to produce motherboards, hard disks and other hardware, Lenovo felt that the cost of independent production was better than taking the goods from the Shenzhen factory. Therefore, Lenovo did not invest too much money to do it seriously because it was troublesome.

It is precisely because of this that Lin Qi feels that it is meaningless for Lenovo to ask for so much cash, and it should take out the profits for dividends. Therefore, starting from 86 years, Lenovo needs to take out 66% of its profits every year for dividends.

Since the new venture electronics company belongs to Lenovo's major shareholder, in addition, the second shareholder of the Chinese Academy of Sciences has no opinion. The rest of Liu Lenovo's team is not satisfied with getting a dead salary, and dividends can also allow these entrepreneurial teams to get hundreds of thousands of yuan or even millions of yuan in dividends in the 80s. After all, Lenovo's two major shareholders both agreed to employee stock ownership. Currently, Lenovo has a 15% stake in its management and employees.

The new venture electronics holds 45% of the equity, and the Institute of Computer Science of the Chinese Academy of Sciences holds 40% of the equity. Because Lenovo's profits are to some extent dependent on the products provided by the new start-up electronics company. The resources provided by the Chinese Academy of Sciences are not very large, at most, some office space and some human resources were provided in the early stage, and of course, there are intangible assets of the Chinese Academy of Sciences. Without this background and tiger skin, Lenovo's sales staff is not so easy to make many domestic users accept Pangu computers. And Lenovo's salesman was able to quickly open the situation, also relying on the awesome advertising slogan "The State Council and the Chinese Academy of Sciences both use Pangu computers".

Although Lenovo is a commercial company, it has done very successfully. However, Lin Qi still felt quite disappointed, so he made a decision to let Lenovo pay a large proportion of dividends.

Anyway, cash is in the hands of Lenovo, and it can only develop into a large company at most, but it is absolutely impossible to develop into a company with core technology.

Therefore, Lin Qi would rather let Lenovo share the profits, and then use the dividends to invest in real estate.

Because, it is not a bad thing to have more reserves of real estate, and sooner or later the new entrepreneurship department will invest heavily in Beijing. When the time comes, whether it is a golden shop or an office building, it will be useful. Even if you don't need the property yourself, renting it out can bring a lot of profits.

……

After Lin Qi returned to Shenzhen, Rong Jian had been waiting for a long time.

"Mr. Lin, I am looking for you this time, as long as it is because Aika Electronics Company plans to go public in the first half of next year!" Rong Jian said excitedly.

"Oh?" Lin Qi asked, "How many billions is the valuation?"

"That's right, because Aika Electronics Company holds the equity of Xinai Electronics. The joint venture of Xinai Electronics not only involves you and me, but also involves state-owned assets. There is no precedent for this part of the assets to be listed overseas. Therefore, I am ready to cut the previous relationship between Aika Electronics and Xinai Electronics. Rong Jian said, "At present, Aika Electronics Co., Ltd. holds 24% of the equity of Xinai Electronics Co., Ltd., and several state-owned shareholders in Beijing cannot afford to contribute funds for this part of the assets, and are not ready to acquire, leaving only Mr. Lin's Xinchuang Electronics Group, which has the right of first refusal." I'm also happy to quote HK$5 billion, Mr. Lin, do you want it?"

"Of course!" Lin Qi said with a smile, "Who do we want from the largest foundry of Xinai Electronics Group in Xinai Electronics?"

Although the profit margin of Xinai Electronics Company is not high, it is completely dependent on the orders of Xinchuang Electronics Group to survive. However, if such a tall giant as Xinchuang Electronics Group leaves this little brother who specializes in dirty work, it will also paralyze product production and after-sales.

From this point of view alone, Lin Qi will not hesitate to eat the equity of Xinai Electronics Company.

"After the sale of this part of the assets of Xinai Electronics, we Aika Electronics mainly have two major businesses left - LCD panel and battery business. Rong Jian said with a smile, "These two major businesses have an income of 7.3 billion yuan in 85 years and an estimated revenue of 14.7 billion yuan in 86 years." The net profit is also close to 1 billion! Because the largest customer of Aika Electronics is Xinchuang Electronics, and we have signed a long-term supply agreement, this order is very stable and has a high growth rate. Therefore, we are regarded by the market as a very pure concept of new entrepreneurial electronics, and the IPO valuation is HK$30 billion......"

LCD panels and rechargeable batteries are now basically supplied to the handheld computers and laptops of Xinchuang Electronics, well, and there are also four-wheel drive cars that will purchase a lot of batteries.

The procurement of the new entrepreneurship department alone has made Aika Electronics have great growth. Not to mention, Aika Electronics is still actively developing more customers.

Of course, in the short term, more than 90% of the company's business is counting on the big customer of the new entrepreneurship department, and the logic of investing in Aika Electronics is to bet on the continuous growth of the new entrepreneurial business, and the new entrepreneurial department will continue to cover the little brother of Aika Electronics!

As long as these two logics exist, then investing in Aika Electronics is equivalent to indirectly investing in the new venture electronics group.

It is precisely because of the fact that Xinchuang Electronics is not listed, so all kinds of capital have no choice but to invest in these surrounding enterprises.

Lin Qi smiled: "This valuation is quite good!"

Of course, it's pretty good, but eight years ago, this company was just a low-end electronics factory that produced electronic watches, with assets of only a few million. It is precisely because of the hitchhike of Lin Qi that Aika Electronics has grown rapidly.

And Rong Jian realized the importance of Lin Qi that he recruited Lin Qi to join the shares. A few years ago, Lin Qi invested 200 million yuan to obtain 20% of the equity of Aika Electronics. If the IPO goes smoothly, the value of Lin Qi's equity can increase to HK $4.8 billion, with a return of 23 times in just two years!

In essence, this is no longer the rate of return that normal venture capital should have, but Lin Qi's connections, so that the cooperative partners are willing to send money to please him!

"If you go public in the U.S. or Japan, the valuation will be even higher. Rong Jian said.

"Not good!" Lin Qi shook his head and said, "In the Japanese market and the American market, after the initial IPO, it is more difficult to continue to raise additional funds in the future. Relatively speaking, the procedures for Hong Kong listed companies to issue additional shares for financing are relatively simple, and investors have a better understanding of our performance, which is more beneficial to the development of the company!"