Rebirth: The Era of Hong Kong Tycoon

Chapter 275 [Appliances and DRAM]

The Redmi Industrial Building on Hung Hom Road, Kowloon, covers an area of ​​13 square feet. It is a 12-story industrial building with an area of ​​9.5 square feet per floor. This is the assembly factory for Xiaomi Electronics to produce arcade machines, handhelds, and game watches.

Lin Rongheng met Xue Weiyi, the president of Xiaomi Electronics, in the office on the top floor.

At present, Xiaomi Electronics' antique ceiling fans, walkmans, handhelds, game watches, and arcade machines are all best-selling products in the world, among which Walkmans, handhelds, and game watches have created a precedent for products.

Xue Weiyihui reported: "Mitsubishi Electric has signed a cooperation agreement with us to provide us with technical support and help us complete the special IC design of the game console. Ricoh has also signed a cooperation agreement with the image processor."

Xiaomi Electronics already has the technology to develop and produce game consoles, but the products are no different from inferior consoles in the world. After all, there are at least 16 game consoles in Japan for such products, and Xiaomi Electronics is a foreign manufacturer. It is undoubtedly a loss-making business to sell such rough products.

So after Xiaomi Electronics mastered the R&D and design of game consoles, Lin Rongheng immediately instructed Xiaomi Electronics to develop a product with hardware quality that surpassed all game consoles on the market.

Xiaomi Electronics does not produce IC chips, image processors, memory chips, etc., and all technical hardware is provided by Japanese manufacturers; of course, they must also provide technical support during research and development.

These Japanese manufacturers have cooperated with Xiaomi Electronics, and they naturally welcome Xiaomi Electronics' slogan that hardware does not make money, because this is equivalent to Xiaomi Electronics making money for them.

The products of Xiaomi Electronics are naturally profitable. The hardware does not make much money, but the profit of the entire product is still about 6% to 8%, which is at the middle level of the industry.

Lin Rongheng said: "If we want to break through on the game console, we must carry out a hardware revolution! If we can't develop it, then our project will undoubtedly fail, and the research and development costs will be in vain."

Xue Weiyi nodded. He naturally knew this truth. Xiaomi Electronics did not have an advantage in video games. Research and development, and even in order to have a complete and advanced supply chain, Xiaomi Electronics gave up a large part of its hardware profits to Japanese manufacturers.

Taking 1979 as an example, the net profit of Xiaomi Electronics was only 2.2 million Hong Kong dollars, which was only the profit of a large real estate developer in Hong Kong. You must know that Xiaomi Electronics’ products are sold overseas, selling tens of millions of devices every year.

Lin Rongheng took out a stack of materials from his desk, handed it to Xue Weiyi, and said, "This is a game I conceived. If the video game console we developed can perfectly carry it, then our game console is undoubtedly A great success. If you go to a software game studio in Japan to develop this game, remember to ask them to sign a non-disclosure agreement.”

Xue Weiyi immediately cheered up, knowing that the boss gave him several classic video games, such as "Hong Kong Cubes" and "Donkey Kong".
"Super Mario Bros."?
plumber, brick
"This game is very good at first glance, no wonder the boss attaches so much importance to it!"

Lin Rongheng said with a smile: "It's a semi-finished product, and we have to rely on the game development studio. By the way, if we develop an excellent game console with removable game cards, then we can hand over the task of developing games to those game manufacturers. We A royalty system can be formulated, and the royalty refers to a series of systems that console manufacturers will formulate when developing a new console, including game quality review, platform access standards, and royalty ratios.”

Xue Weiyi quickly recorded it, and was going to Japan to discuss with the management there.

After discussing the video game industry, Lin Rongheng said: "Xiaomi Electronics already has a fixed net profit every year. It can be regarded as a medium-sized electronics manufacturer in the world. It's time to expand its business to home appliances!"

If he has money to invest, no matter how great the results are, Lin Rongheng's mentality is acceptable.What's more, Lin Rongheng plans to list Xiaomi Electronics in the next two years and raise a lot of funds to develop Xiaomi Electronics.

If such an electronic company does not introduce foreign capital or go public, it is still easy to be targeted by overseas countries. Although Xiaomi Electronics is only entering some fields that are not core technologies, it must be careful.

Besides, after going public, it can be privatized while the market is down.

Xue Weiyi already knew that the boss's ambitions were not small, otherwise the company would not use all the net profits in investment, and occasionally used money to subsidize Xiaomi Electronics. For example, the three buildings of Xiaomi Electronics were all purchased by Lin Rongheng alone.

"The mainland is opening up. If we enter the field of home appliances, then you, the boss, will indeed have an inherent advantage. Color TV, refrigerator, washing machine, which product field does the boss plan to enter first?"

"Let's get into color TVs first! But this time, we will go straight to the acquisition of the picture tube business of RCA in the United States, so that we don't have to start from scratch, and the technology is still very advanced."

Xue Weiyi was taken aback, and quickly said: "Boss, although American TV manufacturers have been beaten by Japanese manufacturers, it is still difficult for us to acquire their business from a large consortium like RCA."

Lin Rongheng smiled mysteriously, and then said calmly: "If we go to acquire it now, they will naturally reject us. But if we manipulate it and make this company besieged on all sides, they will naturally be willing to accept our high-priced acquisition."

Xue Weiyi knew that Lin Rongheng would not talk big words, so he asked cautiously, "How does the boss plan to operate?" He still couldn't believe that the boss could influence a large American conglomerate.

Lin Rongheng said: "The Radio Corporation of America has a large factory in Taiwan Island, which specializes in the production of color picture tubes and other products. I accidentally heard a friend in Taiwan Island say that the residents near this factory have a high chance of suffering from cancer. If I guessed correctly , RCA must be using and dumping carcinogenic organic chemical solvents in violation of regulations, and may even secretly discharge sewage into the ground.”

Xue Weiyi immediately said: "The boss wants to make a fuss about this, and deal a blow to the already dying RCA TV business?"

Lin Rongheng nodded and said: "This has to be done well. Once the RCA finds out, others will definitely not sell it to us! First, we must find a way to obtain evidence and contact influential environmental protection organizations in the world; A company and consortium that is happy to see this situation; in the end, it has to be deployed on Taiwan Island to attract the attention of the government and ferment public opinion."

Xue Weiyi questioned: "The first and third items are relatively easy to solve. How can American companies harm American companies in the second item?"

Lin Rongheng smiled and said, "Short stocks!"

Xue Weiyi was stunned, thought for a while and said: "Boss, let me handle this matter, and I will definitely stand far away from our company."

Lin Rongheng nodded, he didn't want to worry about this shit.

"Remember, even if this matter does not achieve the maximum effect, then even if this factory is closed, it is a very good condition for us. Moreover, we don't need to rush to deal with this matter, first collect evidence, It would be better to report it in the second half of the year or so.”

"Well, I know! You can't buy their TV business, even if you buy their business on Taiwan Island, it's very cost-effective."

To put it bluntly, the problem of this factory is the use of chemical agents in violation of regulations, and then secretly discharge. There is no problem with its own technology, equipment, and human resources.

In the end, Lin Rongheng said: "In addition to the TV business, the company also needs to enter the DRAM market, so you should also prepare together!"

Xue Weiyi directly agreed: "Okay, I will report to you in time!"

The whole company has only one single shareholder, Lin Rongheng, and the boss can do whatever he wants; Xue Weiyi believes that the boss's wealth is enough to play these industries, even if he doesn't make money, he won't lose money.What's more, the identity of the boss has something to do with the mainland, maybe someone else wants to serve the country and use this channel to absorb foreign technology!

　Recommended new book: Rebirth of Nirvana 1992 Mainland Business Literature

　　


(End of this chapter)