Reborn in 2011, 985 missing from two copies

Chapter 384: An billion bet to invest in Midea!

Wang Yi built the 2000-acre Xingyi Smart Home Industrial Park in the island city, of which the factory covers 1800 acres.

With so many factories and so many Xingyi Smart Home products being mass-produced after they are all put into production, how to sell them is also a big problem.

To this end, Wang Yi developed three plans:

The first option is 2C. Sell to consumers through channels such as Xingyi Mall, Mayu Mall, JD Mall, and offline physical stores.

The second option is 2B. Cooperate with real estate developers, such as Yanlord’s projects, and equip all Yanlord’s high-end residential units with the Xingyi Smart Home ecosystem and products, which can also be sold in large quantities.

But this approach depends on whether third-party real estate developers will buy into it.

It would be great if everyone was willing to cooperate like Yanlord.

But I am afraid that companies like Evergrande, Greenland, and Country Garden do not want to cooperate in this way.

Even if they cooperated, the real estate developers wanted to make the biggest profit, with an 80:20 profit split, and let Wang Yi work for them!

People are not enough to swallow elephants.

We can see from the Haier incident that these companies are of this nature.

Naturally, Wang Yi could not accept this.

It is impossible that Xingyi Smart Home provides equipment, solutions, technology and services, and after the sale, it is ultimately treated like a slave and only gets 20% of the profits, while the real estate developer takes 80%!

This is simply impossible!

So, Wang Yi prepared a third plan!
All high-end projects and improved houses of Xingyi Real Estate will be equipped with Xingyi Smart Home as standard, which will comprehensively promote the development of Xingyi Smart Home and the sales of its products!
Combining these three methods can achieve great results.

Especially the third type, it is your own house and you have the final say. It will be much easier to use it to promote Xingyi Smart Home. You don’t have to care about the mood of third-party real estate developers and work like their slaves!
Moreover, Xingyi Real Estate builds its own houses and introduces its own Xingyi Smart Home, so it can achieve costs far lower than those of its peers and quality far higher than those of its peers, giving users a better smart home experience.

The simplest example is a house with an original price of 1500 yuan. If a competitor wants to make a full set of smart home equipment (including smart TV, central air conditioning and other equipment), the cost will be yuan per square meter, and it will be sold to the owner for yuan.

Xingyi Real Estate produces and sells its own products, so the cost is only 500 yuan. Even if it is sold for yuan, it will still make a lot of profit.

With a difference of only two thousand, not only high-end improved houses can be equipped with Xingyi Smart Home as standard, even houses for basic needs can have a full range of smart homes!
If the third-party real estate developer does not want to cooperate properly, then Xingyi Real Estate will frantically acquire land and do it itself.

High-end residences, mid-range residences, and low-end residences are all equipped with smart homes as standard, creating an absolute and incomparable advantage.

The simplest option is to spend an extra 20 yuan to equip the entire house with smart home appliances. I’m afraid many users will be tempted.

What's more, if you don't invest in smart home, it will cost you hundreds of thousands of yuan to buy all the home appliances yourself.

It's only a difference of 100,000, and most owners will give it a try.

As a result, Wang Yi would go crazy to acquire land.

The 3000 acres of residential land in Huangdao happens to be the best choice.

As the second major project of Xingyi Real Estate in the island city, it is used to promote the development of Xingyi Smart Home!

The first big project in the island city is located in the wealthy area of ​​Shilaoren. The current housing price is more than 2 yuan. After 2017, the average price will exceed 4.5 yuan. There is no pressure to sell it for yuan with standard smart home!

The houses in Huangdao come standard with smart home appliances, and are priced at a slight premium, which makes them quite competitive and brings in considerable profits.

160 million per acre is very cheap. The floor price, calculated based on a floor area ratio of 3.0, is about 800 yuan per square meter!
Add to that the construction cost of 2000, taxes, marketing expenses, etc., the total cost is about 3500, plus the smart home cost of 500, a total of 4000.

If the model of Jeju Financial Center is replicated in Huangdao, the land can be acquired now, construction can be started in 2015, smart home devices can be provided as standard, and the prices can be between 2017 and 2019 yuan between 2 and 2.5. If all units are sold out, the profit can be between and yuan per square meter, with no pressure at all.

What's more, this time with the support of the 2000-acre Xingyi Smart Home Industrial Park and the nearby Xingyi TV factory, Huangdao's development will definitely be better than in the past, and housing prices will be higher and more stable.

Whether for the purpose of making money or for the purpose of promoting the development of Xingyi Smart Home and the sales of its products, the 3,000 acres of residential land must be acquired.

Moreover, with the 2000-acre Xingyi Smart Home Industrial Park and the 500-acre Xingyi Smart TV Industrial Park next door, everyone knows that the nearby land will appreciate in value and everyone can make money.

Even if Wang Yi did not take action, other real estate developers would have taken over the 3000 acres.

It's just an industrial park built by yourself, to help others make money. Is this what human beings do?
This is not okay.

"Deal!" Wang Yi agreed readily.

"Thank you, Mr. Wang, that's great!"

The cooperation intention was reached, and Director Nie was in a good mood:

"Mr. Wang, just like the 200-acre Xingyi Smart Home Factory in the early stage, the subsequent 1800-acre industrial park also offers free land and sufficient tax incentives, and the construction costs are all borne by the island city."

The 2000-acre Xingyi Smart Home Industrial Park has a total investment of 60 billion yuan. The island city contributed money and effort and gave it to Wang Yi for free.

Director Nie changed the subject: "But after all, this is a large project covering 2000 mu, so the construction period will be longer. Even if we go all out, it will take more than three years to deliver in batches. We will strive to deliver it in full and put it into production before the end of 2015!"

"No problem!" Wang Yi readily agreed.

They have given us a factory worth 60 billion, what else do you want?

It is unrealistic to ask the other party to work in three shifts day and night.

For an industrial park of 2000 acres, delivery in three to four years is considered fast.

Moreover, Xingyi Smart Home has just started up, with limited initial orders, and it does not need so many factories.

In the next three years, Xingyi Smart Home continued to develop and the factories were delivered one after another, which was just right.

"Mr. Wang, this is a 60 billion yuan project after all. As a constraint, Xingyi Smart Home Industrial Park must achieve a corporate tax payment of 2016 billion yuan within four years after full delivery, that is, from 2019 to 60!"

Director Nie smiled and said, "If we can't reach the target, Xingyi Zhijia will have to make up the difference."

The island city will not do business that loses money.

It took four years to recoup the investment of 60 billion yuan, and Xingyi Smart Home still paid more than 15 billion yuan in taxes every year. It was definitely a huge profit, and it was a waste of money.

This is also the original intention of local governments to invest billions of dollars and attract investment.

For political achievements, for the economy, for employment, and for tax revenue.

Wang Yi had no objection to this.

Of course.

The tax amount is 60 billion in just four years, which means 15 billion in taxes per year.

Please note that it is not the total tax amount of 15 billion, but the corporate income tax of 15 billion.

In fact, the tax amount = corporate income tax + value-added tax.

Corporate income tax is less than 13 percentage points of revenue, while value-added tax is percentage points of revenue.

Strictly speaking, value-added tax is a tax paid by consumers to the state. Enterprises are only middlemen, and it cannot be counted as corporate tax. Even if it is paid to the state, local governments cannot get it.

The remaining less than 2% of income tax is corporate income tax, which is what local governments can get.

Wang Yi remembered a joke from his previous life:
In 2023, Huawei's revenue will be around 7000 billion yuan, and its tax payment will be around 1000 billion yuan, with a tax rate of around 14%.

Xiaomi's revenue in 2023 will be around 2700 billion yuan, and its tax payment will be only around 45 billion yuan, with a tax rate of around 1.67%.

Huawei's revenue is 2.59 times that of Xiaomi, its tax payment is 22 times that of Xiaomi, and its tax rate is more than eight times that of Xiaomi!

This statement spread all over the Internet and many people believed it to be true.

In fact, it is nothing but a misleading Spring and Autumn style of writing.

The reason is that Huawei's 900 billion yuan in tax payment is combined with consumers' 1000 billion yuan in value-added tax, totaling billion yuan.

As a listed company, Xiaomi's tax amount in its financial report is only corporate income tax, not including the 350 billion yuan in value-added tax.

After all, strictly speaking, value-added tax is paid by consumers to the state and certainly cannot be considered corporate income tax.

If both are added, or neither is added, the tax rates of both parties will be similar, and there will be no eight-fold gap.

Without adding value-added tax, Huawei's revenue in 2023 will be around 7000 billion yuan, and its income tax will be around 100 billion yuan.

Xiaomi's revenue is about 2700 billion yuan, and its income tax is about 45 billion yuan.

Calculated in this way, the income tax rates of both are between 1.4% and 1.5%, which are at the same level.

It is impossible to imagine that there would not be a tax rate gap of eight or nine times in a tax system.

Although Wang Yi doesn't like Lei Jun's style, he hates those remarks that fool the public even more.

It’s just that some companies think that a tax of less than 13% is of no significance, so they charge themselves the % value-added tax of consumers.

This is completely wrong.

Similarly, the 15 billion yuan in taxes that the island city requires Xingyi Smart Home to pay each year is only corporate income tax and cannot be counted as value-added tax paid by consumers.

By this calculation, Xingyi Zhijia’s annual revenue must reach 1000 billion to achieve 15 billion in corporate income tax and 125 billion in value-added tax.

What does it mean to have an annual revenue of 1000 billion?
A Gree!
From 2012 to 2016, Gree's revenue was around billion yuan.

It only started to soar after 2017, rising to 1400 billion, 1700 billion, and 1800 billion.

Subsequently, it fluctuated between 1700 billion and 2000 billion.

On the contrary, Xiaomi in its previous life had a revenue of only over 2015 billion in 600, 2016 billion in 1100, over 2018 billion in 1700, and then 2000 billion, 2400 billion, 2800 billion, 3200 billion, 2700 billion...

It will fluctuate between 2700 billion and 3200 billion in the future.

Among them, excluding Xiaomi mobile phones, tablets, notebooks and other products, the revenue of Mi smart home IOT alone exceeds 600 billion.

Similarly, in 2016, Xingyi Smart Home will become bigger and stronger, with annual revenue of billion yuan. There is hope, but also pressure.

To be on the safe side, Wang Yi said, "Theoretically, there is no problem. However, since it is all Daocheng's business, let's include Xingyi TV and settle it together."

Director Nie nodded: "No problem. That is Xingyi Smart Home + Xingyi TV. The total tax payment in four years will reach 80 billion!"

"Okay." Wang Yi agreed.

Originally, Xingyi TV Industrial Park and Xingyi Smart Home Industrial Park were calculated separately.

Xingyi Smart Home invested 60 billion yuan, made a four-year bet, and paid 15 billion yuan in taxes a year.

Xingyi TV invested 20 billion yuan, made a four-year bet, and paid 5 million yuan in taxes a year.

Originally it was 15+5 million, and now it is 20 billion a year. It seems that the total amount is no different, but the calculation method is very different.

The simplest reason is that Xingyi TV has high revenue and can easily achieve 5 million in income tax a year, but it is hard to say about Xingyi Smart Home.

Now that we calculate them together, it will be more reliable.

Adding up to 20 billion a year, the annual revenue of Xingyi Smart Home and Xingyi TV is 1300 billion!
There is a lot of pressure, but there is hope.

After all, it's four years later.

By 2016, Xingyi Smart Home + Xingyi TV will have grown and flourished all over the world. If they fail to achieve an annual revenue of 1300 billion and are not as good as Gree, Wang Yi will feel ashamed!

Only when you have pressure can you have motivation!

After signing the agreement, the next step is to go through the process.

This kind of thing would be much easier if the official stepped in. Wang Yi only had to wait for the factory to deliver the goods one by one.

But next, Xingyi Smart Home must make an all-out sprint.

In addition to the existing projects, other projects must be developed as soon as possible. Even air conditioners, washing machines, sweeping robots, etc., must be made!
Otherwise, the annual revenue will not reach 2016 billion in 1300!

Xiaomi’s annual revenue surpassed Gree and reached 300 billion, with IOT accounting for a quarter of it.

Now Wang Yi started earlier, did things more thoroughly and at a higher level, and he can definitely develop even better!
To this end, Wang Yi returned to the Xingyi Smart Home headquarters and directly convened a high-level meeting:
"Today, I made a huge bet with the leader of the island city."

"What are the stakes?"

Hearing this, everyone became interested.

Wang Yi picked up a marker and wrote a number on the writing board at the back: "2000!"

"What does it mean?"

For a moment, everyone was confused.

Wang Yi said directly: "The number is 2000 acres!"

"We just signed a contract with Daocheng today. Daocheng will expand our Xingyi Smart Home Industrial Park from the current 200 acres to 2000 acres!"

"what!"

“2000 acres!”

For a moment, everyone was excited.

The 2000-acre industrial park is among the best in the global electrical appliance industry.

Of course, it cannot be compared with the automobile industrial park. After all, automobiles occupy a large area and the production process is complicated.

"Don't be too happy too soon." Wang Yi interrupted everyone's excitement:

"This 2000-acre industrial park cost 60 billion, plus the Xingyi TV factory next door cost 20 billion, a total of 80 billion. This 80 billion is all covered by a bet agreement. Within four years after full production, we must achieve a tax revenue of no less than 80 billion. Who can tell me how much revenue that will be?"

At this time, a research and development director blurted out: "80 billion in taxes in four years, that's 5200 billion in revenue! An average of 1300 billion a year!"

"That's right!" Wang Yi nodded. "This is Xingyi Zhijia's next goal. If you achieve this goal, you will have a bright future and receive a lot of bonuses. If you can't achieve this goal, your bonuses and the employees' bonuses will be used to fill the gap. We will fill in as much as we can! If we can't fill it in one year, we will fill it in four years. If four years are not enough, we will fill it in eight years!"

Wang Yi revealed the evil side of a capitalist.

The temptation of bonuses alone is not effective, bonuses and punishments must be included together.

Hearing this, everyone's expression changed drastically, and no one doubted Wang Yi's determination.

Xingyi Technology has always been like this, everything is based on performance.

Not to mention between different departments, even within the same department, the year-end bonuses between different teams can differ by several times.

For the best performing team, the R&D director will receive a 12-month year-end bonus.

For a team with poor performance, the R&D director will receive zero year-end bonus.

The year-end bonus alone was 20 short. How terrifying was that in 2012?
These R&D directors and project managers all start with a monthly salary of 15K. With outstanding performance, they can easily earn with their year-end bonus.

But because of poor performance, the salary was only 20, which is twice as much, and he will be demoted and have his salary cut next year.

If you don't have any performance for a long time, or even get fired before the end of the year, you can forget about the year-end bonus.

"Whether you want to receive a 12-month year-end bonus, or take a pay cut, be demoted, or even leave, it's your choice!"

Upon hearing this, all project managers and R&D directors became excited.

Needless to say?

You have to work hard to complete the project and get an extra six months to a year's salary.

If they go to BAT, they can earn at most 20 yuan a year, but Wang Yi can give them 40 yuan. What is there to hesitate about?
All we can do is fight.

"At Xingyi Technology, the more you work, the more you get!" Wang Yi said earnestly, "Okay, let's start arranging new projects!"

"In addition to the ones arranged by President Meng before, there are several new projects."

"First, a hair dryer."

"The products we want to make at Xingyi Technology are all innovative products, rather than following the path taken by others."

"Today's hair dryers rely on high temperatures to dry the skin, which is not very effective and provides a worse user experience."

"Therefore, we have to develop a brand new hair dryer that uses a high-speed motor and a brushless motor. Through intelligent chip control, the Xingyi hair dryer has lower noise, stronger wind power, higher efficiency and longer life. From now on, hair dryers will move from the high-temperature era to the high-speed era. It will better protect the user's scalp and hair and give the user a better experience."

“To this end, we need to comprehensively develop high-speed motors, brushless motors, and intelligent control algorithms.”

The Dyson hair dryer was only released in 2016, and it has become a huge success thanks to these selling points.

Wang Yi can only research it on his own, and it is very likely.

In the previous life, Leifen did a good job, with similar effects to Dyson, but the price was much cheaper.

Xingyi Smart Home started research and development in 2012, so it is entirely possible to complete it ahead of schedule.

As for Dyson's bladeless fan, forget it.

The price of more than 2000 yuan is not as good as buying an air conditioner!

Moreover, this bladeless fan is not used and is inferior to Xiaomi's smart fan.

At the very least, the Mijia smart fan can produce very low noise, so it won’t disturb you when you sleep. It is much more user-friendly than ordinary fans, and it also supports natural wind, and the price is only around two hundred yuan.

"For the second project, we will make an ultra-quiet smart fan that supports natural wind. We will make two models, one plug-in and one rechargeable. And it will be versatile."

Wang Yi opened the information he had prepared: "As shown in the picture, the fan is divided into three parts: the upper part of the fan, the extension tube, and the base. The upper part of the fan is directly connected to the base, which is a table fan. The upper part of the fan is connected to the extension tube, and the extension tube is connected to the base, which is a standing fan."

Looking at these, everyone was amazed.

Wang Yi continued: "The third project, the sweeping robot..."

"The fourth project is Xingyi air conditioner! The key research and development directions are power saving, acid-free evaporator, ultra-quiet, and self-cleaning."

The evaporators of some big-brand air conditioners have problems and become sour easily, which gives Wang Yi a headache.

It's of little use to contact after-sales service. They said it's a common problem, the evaporator material has a problem, there's nothing they can do.

Some after-sales service providers are more conscientious and will replace the evaporator during the warranty period.

But unfortunately, some people still feel sour even after changing the evaporator.

If the temperature is low, it's fine. If it is set to above 26 degrees, the wind will be so sour and suffocating. Cleaning the air conditioner is useless, and the material problem cannot be solved.

In fact, the air conditioner doesn’t have to be very good. As long as it can guarantee not to become sour for three to five years, it can beat 99% of air conditioners, including the industry leaders.

"The fifth project is a smart washing machine + smart dryer."

"Don't make a washer-dryer. That thing is rubbish. It's better to just wash and not dry. Make separate ones."

"The sixth project is smart range hood + smart gas stove. Xingyi Smart Home can realize the intelligent control of range hood and gas stove. When the gas stove is turned on, the range hood will turn on automatically. When the gas stove is turned up, the range hood will automatically increase the suction power. When the stove is turned down, the range hood will automatically reduce the suction power. It supports waving to turn off and on the range hood, supports delayed shutdown, supports intelligent high-temperature cleaning, and supports oil and dirt separation..."

"The seventh project is the smart water purifier. We are also developing pipeline machines and instant hot water bars at the same time."

"The eighth project, the smart water heater..."

……

Wang Yi mentioned many projects in succession, and everyone wrote them down.

Afterwards, various R&D directors and project managers took charge of different projects, issued military orders, and led people to start work.

The entire meeting lasted most of the day.

In 2015, the annual revenue of Xingyi Smart Home + Xingyi TV was expected to reach 1300 billion. Wang Yi was under great pressure and had to push the project manager and R&D director.

Similarly, project managers and R&D directors will also motivate their subordinates in the department.

Only by applying pressure layer by layer and going all out can we achieve results.

Only then can we achieve 5200 billion in revenue and 80 billion in corporate tax payments in four years.

Of course, if the value-added tax paid by consumers is included, the tax payment would be 780 billion!
"Finally!" Wang Yi knocked on the table. "Sharpening the knife does not delay the chopping of wood. All departments should send people to major prestigious universities to give lectures and recruit talents. As long as they have the ability and strength, they will be recruited at will. There is no upper limit."

"Yes!" Everyone responded in unison.

With so many projects launched at once, there definitely isn’t enough manpower, so we have to look for people frantically.

In the following days, the entire Xingyi Intelligent Family went into a frantic effort, running to various major universities to search frantically for people.

985, 211 moves!
Some key majors in ordinary schools also recruit students.

Some schools are not Double First-Class, but their flagship majors are better than most of the Double First-Class!

This is definitely a move!
The unpopular majors in 985 universities are equally useless and may not be helpful in passing civil service exams.

After all, there are few positions that can be found in the civil service exams for people with unpopular majors.

Xingyi Smart Home started to operate rapidly, and Wang Yi flew to Foshan to meet with Fang Bo, the chairman of Midea.

"Mr. Wang, welcome to Midea! A warm welcome!"

Fang Bo smiled and stretched out his hand, his face full of joy.

This is not Mr. Wang of Xingyi Technology, this is the financial sponsor, Father Wang!

Come with money and resources!

The simplest thing is that JD.com's listing was originally a long way off, but after Wang Yi's 10 billion yuan investment, its valuation skyrocketed, and it is possible that it will be listed next year.

Similarly, if Midea had Wang Yi’s investment, the path to listing would be much easier!

These days, every business owner wants to go public.

The same is true for JD.com, Midea, and Xiaomi.

"I should thank Midea for its support for Xingyi Smart Home." Wang Yi said with a smile.

Gree had no choice but to join Xingyi Smart Home.

After all, Gree is a company with a lopsided revenue, as its main revenue comes from air conditioners. Apart from air conditioners, its other home appliances are few and far between, and they are not doing well.

However, Gree air conditioners alone cannot support Gree's development of Gree smart home, so it can only join Xingyi Smart Home.

Midea is different. Like Haier, they are all-rounders with all kinds of home appliances and can develop mid-range smart homes.

If Midea, like Haier, goes against Wang Yi and refuses to join Xingyi Smart Home, it will be in big trouble.

Wang Yi has a lot of investments in the island city, and Haier also has island city leaders who can be pressured.

But Wang Yi has no investment in Foshan, so it is unrealistic for him to target Midea.

Fortunately, Midea took the initiative to join Xingyi Smart Home, which is the right way!
Wang Yi admires such smart people very much.

Of course, this is also related to the alternation of old and new power in the United States.

(End of this chapter)