Although D&F started with firearms, the biggest source of profit is no longer guns, and the most popular products in the market are not guns.

What is that?

Body armor!

Before the end of the Fourth Indo-Pakistani War, D&F relied on orders from Pakistan and surpassed its competitors, including Huaxia Enterprises, to become the world's largest supplier of body armor, with a market share of more than 40% at its peak.

Last year, D&F sold 3.5 million pieces of body armor.

What is this concept?

Although the market share has decreased to only 37%, the most sold are the more expensive and high-performance level 4 body armor.

Body armor alone generated $6 billion in revenue last year and made a whopping $2.5 billion in profits.

In fact, this is only the profit on the books.

Why?

Because the upstream manufacturers of body armor are also related to D&F companies, the actual profits are higher.

What's more, D&F has been selling body armor through informal channels, and this revenue is clearly not included in the normal revenue.

In a separate report, D&F sold 5.2 million pieces of body armor last year, with total revenues of more than $15 billion.

How were the extra 1.7 million pieces of body armor sold?

Quite simply, it's an informal channel.

For example, Saudi intelligence agencies privately purchased 300,000 pieces of body armor from D&F, and entrusted all of them to Angu to ship.

Where?

In war-torn areas such as Syria, Libya and Lebanon, aid is provided to local rebels or pro-Saudi local forces.

Because it is a secret aid, it cannot go through formal channels.

Of course, this kind of body armor, which is sold through informal channels, is also more expensive in price.

For example, a Class 4 body armor that sells for only $1,500 in the formal market can sell for more than $3,000 in informal channels.

In fact, even the CIA is a customer of D&F.

Last year, the C.I.A., through a private American company, procured 150,000 pieces of body armor in three batches from a defense equipment sales company controlled by D&F, most of which were supplied to rebels in Venezuela and some sent to Syria.

As part of the deal, the C.I.A. managed to erase the illegal records of all D&F executives, including Wang Dong and Serena.

So, why does the CIA do business with D&F?

Quite simply, globally, only D&F is the only one that can provide Class 4 body armor for less than $3,000 and can supply it in large quantities in a short period of time, and only D&F can provide delivery services, that is, Angu has a strong private shipping channel.

Through cooperation with the CIA, D&F's body armor has also successfully entered the US market.

Of course, it is still the defense equipment sales company incorporated in the United States that is still relied upon.

In the U.S., D&F's products are trademarked by other companies and recognized by almost all U.S. law enforcement agencies, including the FBI.

The FBI, alone, bought at least 50,000 pieces of body armor last year, and all of them were 4A level 4A that cost as much as $5,000.

In addition, there is the anti-narcotics department of the United States.

Now, D&F is promoting advanced body armor to local law enforcement agencies in the United States, as well as state police departments.

D&F's body armor is very popular in the U.S. market, and the key is that it is affordable.

You must know that the 4A level 4A body armor that can block 7.62mm NATO bullets fired from 200 meters away has a factory price of more than $8,000 from other companies, and some Western manufacturers even exceed $10,000 for their products, while D&F companies control the price by about $5,000.

Why is it so cheap?

Quite simply, it is produced in Pakistan, and one of the largest production lines is in Gwadar port.

What's more, D&F has established a complete production line from raw materials to finished products, which can minimize production costs.

In addition, D&F has its own product development team.

In terms of materials, a huge amount of research and development funds have also been invested.

All in all, it is thanks to Pakistan's low labor that D&F is able to provide the best body armor at the lowest price.

In fact, body armor is also the product that D&F has promoted the most in the past few years.

In Gao Jun's words, the significance of popularizing and promoting body armor is not only to make money, but to create another market worth tens of billions of dollars, or even hundreds of billions of dollars.

What market?

Firearms & Ammunition Market!

You must know that after the popularization of body armor, the existing firearms will be affected the most.

The extreme bravery of Pakistani Army officers and soldiers in the Fourth Indo-Pakistani War has a lot to do with having reliable body armor.

It has long been proven that 5.56 mm NATO bullets and 7.62 mm M43 bullets are difficult to effectively kill and injure infantry protected by body armor.

In fact, this is the key to the fact that DF762 can get orders in more than 30 countries.

In addition to new bullets such as countersunk bullets, only 7.62 mm NATO bullets have some value among today's ammunition.

Why?

Level 4A body armor is still too expensive and not everyone can afford it, so the power of the 7.62mm NATO shell is barely passable.

It's just that with the popularization of Level 4A body armor and the improvement of the performance of Level 4 body armor, the 7.62mm NATO shell will be phased out sooner or later.

You know, in the laboratory, body armor that can block 7.62 mm NATO bullets without reinforcing inserts has been manufactured, but the production price of raw materials is still too expensive, so it will take several years to solve the problem of the production process before it can be promoted.

By that time, all conventional bullets will be phased out.

In addition, perhaps even the current head-sinking bomb will be threatened.

As a result, almost all countries, including the United States, will have to replace ammunition, which will create a market for firearms and ammunition worth hundreds of billions of dollars.

D&F has been working in this direction and has already begun to design a caseless rifle.

At that time, D&F is expected to beat H&K to become the global hegemon in the firearms sector and capture the largest market share.

According to Gao Jun's estimates, if D&F can take the lead in the next round of firearms revolution, it will earn no less than $50 billion in revenue and more than $20 billion in profits in the next few decades, and it will also be able to make a profit from selling ammunition in the future.

It can be seen that the promotion and popularization of body armor is actually promoting the firearms revolution.

Of course, the huge profits brought by this also provided the conditions for D&F to develop new guns and ammunition and occupy a leading position in the firearms revolution.

From this point of view, Gao Jun is undoubtedly the number one hero.

Wang Dong has to admire his talent in management.