industrial overlord

Chapter 680 Worth and Not Worth

"Zhenhua, your money is spent... a bit sloppy." Chen Tian commented with a glass of beer in his hand, shaking his head while sipping it.

This was in a farm restaurant in the suburbs of Beijing. There were not many people eating, only Chen Tian, ​​Lin Zhenhua, and Huang Gang. As for the name of the meal, it was even simpler, just having nothing to do and gathering with friends.After chatting about the weather, international situation, domestic situation and other gossip, the topic turned to Hanhua's recent negotiations with KHN.Both Chen Tian and Huang Gang were aware of Hanhua's plan to invest in the purchase of the third-generation chip technology patent held by KHN, and they also helped from their respective fields.But Chen Tian has never been able to figure out the significance of this transaction.

"Huang Gang, what's your opinion?" Lin Zhenhua didn't answer Chen Tian's question directly, but turned his head to look at Huang Gang with a smile, and asked him.

Huang Gang is the youngest among the three. Although he is the deputy director of the Development and Reform Commission, he has no arrogance in front of Chen Tian and Lin Zhenhua.Hearing Lin Zhenhua's question, he smiled and said, "I have always admired Brother Lin's vision. I think Brother Lin should not make mistakes when it comes to investment matters as large as 20 billion US dollars."

"Huang Gang, you are wrong." Chen Tian said dissatisfiedly, he pointed at Lin Zhenhua, and said, "Don't be afraid of him just because he is covered in halo now, we can also criticize him for any mistakes Yes, the criticism is to help him improve. Zhenhua, are you right?"

Lin Zhenhua pretended to be honest, and said: "Ju Chen is right. I do have a lot of problems, and I need to be criticized by Director Chen and Director Huang frequently. However, in the case of KHN, I am Do you think you have done nothing wrong? Why should you be criticized?"

Chen Tiandao: "Could it be that you think your money is well spent?"

Lin Zhenhua said: "It can't be said that it's worth it, at least it's not a loss. There is no reason to make money in business. As long as you don't suffer a loss, it's not a mistake."

Chen Tiandao: "I think you are at a disadvantage. It has been 5 years since the third generation of industrial control chip technology was launched. Optimistically, it will take at most 2 years before the fourth generation technology will appear. By then, The mainstream machine tools in the world must use the fourth-generation technology, and the third-generation technology you bought is basically outdated. I don’t believe that you can earn back the 20 billion US dollars in the past two years.”

Lin Zhenhua said: "Why can't I earn back? At present, the annual purchase of CNC systems in the entire domestic equipment manufacturing field has reached more than 50 billion U.S. dollars, and the CNC systems in the machine tool industry alone have more than one billion. If we can achieve import substitution, It shouldn’t be a problem to get a share of more than US$20 billion a year from this market, right?”

"You're talking about sales, what about the profits inside? The CNC system is not just chips, circuit boards, resistors, capacitors, etc., are all costs?" Chen Tian retorted, obviously he also did some homework, for There is some common sense in this regard, "What's more, if you want to carve up the domestic market, you must ensure that the price is much lower than that of the imported system, so the profit margin will be even smaller?"

"If the operation is good, the profit can still be guaranteed." Lin Zhenhua is still smiling, "Also, we didn't say that we must recover the investment within two years, even if the fourth generation standard comes out, There will still be some devices that follow the third-generation standard, and our technology will not be a problem for another five years."

"This calculation is too passive." Huang Gang interjected, "According to Zhenhua's algorithm just now, if we can maintain more than 40% of the domestic market share, we can recover the 20 billion patents after deducting material costs, marketing costs, etc. The purchase fee is also possible. The key point is that you haven’t calculated the opportunity cost of the 20 billion dollars. I think, with Zhenhua’s business acumen, he wouldn’t make such a big mistake, right?”

The so-called opportunity cost refers to the benefits that can be obtained if the same time and money are used in other fields.For example, if a person starts a business with 10 yuan for a year, if he ends up with no loss or no profit, then in terms of opportunity cost, he will lose money.Because he can deposit 10 yuan in the bank and go to work for a year, so the final income will definitely not be zero.

According to the current situation in the domestic market, even if 20 billion US dollars is invested in a relatively unpopular industry, there will be hundreds of millions of dollars in return in a few years. If Hanhua's investment ability is used, it is entirely possible to earn back 10 billion in a few years. of.Therefore, if the goal of Lin Zhenhua's investment is only to recover the 20 billion US dollars he paid before, it will be a failure in terms of opportunity cost.

Lin Zhenhua said: "You say that I missed the opportunity cost, but you also missed the business risk I avoided. Think about it, ALK is pulling European equipment manufacturing companies to compete with us. Industrial control chips are our weakness. .What should I do if KHN stabs me in the back when the competition is at its most intense? Now that I have bought all the patents directly, KHN can no longer restrain me, so that I can let go of my courage to compete with the Europeans. Bar."

"This can be regarded as a reason, but this reason is too far-fetched." Chen Tian shook his head and said, "The chip technology is in the hands of others. It is indeed a trouble for you, but this trouble is not worth 20 billion US dollars. Go to the point of solving it. Why do I feel that there is a bit of conspiracy behind your investment. "

"Chen Bureau, don't imagine everyone to be so sinister, okay? I'm very pure." Lin Zhenhua said with a smile, "Actually, we negotiated with KHN just to avoid risks. We really don't have any conspiracy Ah. The conscience of heaven and earth..."

Seeing that Lin Zhenhua was about to swear with a smile on his face, Huang Gang also laughed. He said to Chen Tian: "Chen Bureau, let's not force Zhenhua to do this. I thought, Zhenhua must have deep meaning in doing this. It is understandable to keep it secret from us now."

"Fart, what is love and forgiveness!" Chen Tian said domineeringly, "It's really boring to hide from our buddies."

Lin Zhenhua had no choice but to pour a glass of wine, and said, "Brother Chen, I really have difficulties. Some things are not easy to uncover now, and you will understand later. Well, I will punish myself with a glass."

After that, he picked up the cup and gulped it down.Chen Tian looked at Lin Zhenhua's tired and lazy look, and couldn't be more serious with him, so he poured a full glass of wine and drank it in one gulp, while still muttering: "You are so boring! "

Everyone laughed for a while, and Chen Tian didn't bother to ask any more questions.After all, the company still has its own business secrets, and everyone's personal relationships are personal, and it's not appropriate to inquire too much about some business secrets.Chen Tian's own work is also full of secrets, and he will not reveal all these secrets to Lin Zhenhua.

Huang Gang asked with concern: "Zhenhua, you are going to spend 20 billion US dollars to buy KHN's patent this time. Will there be some difficulties in funding? Do you need us to call the bank for you?"

Lin Zhenhua said: "No need, thank you, Huang Si. Our Hanhua Microelectronics Company itself is a joint venture established by various enterprises. This time we need to raise money to purchase KHN's patents. Big. After our chips are put into production in the future, they will be able to meet the needs of various companies, which is very important for all companies.”

"That's good." Huang Gang nodded and said, "Again, many domestic institutions are now researching the third-generation industrial control chip technology, and they have encountered many technical difficulties. You can get the third-generation chip technology from KHN. The purchase of all the patents of chip technology has shortened the gap between us and the international advanced level at once, which is also helpful to other domestic units.

Even if foreign countries launch the fourth-generation technology two years later, when we want to catch up, we will have a better starting point.In this sense, the money was not too badly spent. "

Lin Zhenhua said: "Huang Gang, I heard your words, it seems that there is something in the words."

"Really?" Huang Gang asked with a smile, neither admitting nor denying that Lin Zhenhua said there was something in his words.

"What he meant was that the National Development and Reform Commission wants to have a hand in the technology you bought with money. These technologies cannot be exclusive to your family, but should be shared with others. It is better to have fun alone than to have fun with others. "Chen Tian provocatively said.

Huang Gang quickly waved his hand: "Chen Bureau, you have wronged me. What I mean is that if Zhenhua is willing to share these technologies with other organizations, we can consider subsidizing some expenses."

"This is indeed a good thing." Lin Zhenhua said with a smile, "However, we have to agree that technology can be shared, but intellectual property rights are bought by us and cannot be shared. Otherwise, other companies will use these technologies to produce chips for If we divide our market, we will lose money."

"Don't worry, we won't forcibly confiscate the technology you bought," Huang Gang promised.

"Zhenhua, in this way, all your obstacles will be cleared away? You guys have broken this situation carefully planned by ALK?" Chen Tian asked.

Lin Zhenhua nodded: "I think there are not many tricks they can play. For more than half a year, various companies in our industry and national scientific research institutes have worked hard to break through many technical bottlenecks. With the patents purchased by several companies, our technical level has improved a lot compared to the past. ALK tried to block us from technology, accessories, etc., and this plan has basically gone bankrupt.”

"Okay, since the other party's plan has gone bankrupt, shouldn't you consider a strong counterattack? ALK is an extremely anti-China company in Europe. I hope you can hit it hard." Chen Tian murderously Said vigorously.

Lin Zhenhua said: "We are ready. At the Frankfurt exhibition next year, we will launch a full range of products specifically for ALK, and grab all of its most profitable businesses. Dilla, I'm afraid I'll have to turn into a dead dog."

(End of this chapter)