Return To 1990

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Jiafeng Group, as the R\u0026D company became independent, Schroeder Group carried out equity restructuring of Jiafeng Group, abolished the board of directors and changed it to a board of directors. They held a round of negotiations with United Capital and Sun Hung Kai, but the two parties failed to reach an agreement.

The non-dilution equity agreement signed with Lu Feng has expired. Gudley was appointed as the executive president of Jiafeng Group, bringing in a new senior management team. In order to stabilize the middle management, four managers were promoted. As senior executives, At the same time, Goldman Sachs Capital was introduced to carry out drastic reforms in internal management, systems and subordinate enterprises.

Marginalizing Nokia, introducing Siemens, increasing investment in channel dealers and terminal sales malls, research and development has completely stalled, the sales department has cut salaries, and factory workers' piece-rate wages have been reduced. All expansion assets have been cleaned up and packaged in preparation for sales, and the overall front has shrunk.

At the management meeting, Gudeli sent several executives to target the middle management, restructure the board of directors, dilute the equity and cause damage to everyone's rights, temporarily freeze the management's equity, and change it to dividend rights. Su Yourong , Feng Zhiyao were completely reduced to minority shareholders.

However, the two still voted against the introduction of shareholders. Three months later, Goldman Sachs increased its share again. According to the board of directors' regulations, after touching the red line of diluting equity, small shareholders only need to object. In order to protect the rights and interests of small shareholders, they can no longer dilution.

In order to enter the market, companies such as Goldman Sachs and Siemens negotiated with two people. The two parties sold their shares and exited. After another three months, Goldman Sachs held more than 40% of the shares. The income of factory employees dropped again, causing a large number of workers to resign. Gudley was fired from the municipal government. Make an appointment.

Two months later, Jiafeng Group's reserve land was packaged and sold, and the Suzhou factory was resold to Skyworth. Jiafeng's TV and VCD market share continued to decline, and the terminal electrical appliance city established was mainly based on overseas brands.

At the end of 1997, many middle-level managers were fired, and many of them united to demand equity compensation. The vice president of Jiafeng Group said that there are performance requirements behind equity, and they were fired because these people did not meet the process requirements at the execution level. There are violations.

The lawsuit lasted for several months, and Jiafeng Group finally lost the case and paid some symbolic compensation. Those who received the money were scolding the several domestic executives who came forward.

At the beginning of 1998, Goldman Sachs controlled 78% of Jiafeng Group, and Schroders Group completely withdrew. Goldman Sachs sold many of Jiafeng's patent rights to Silicon Valley companies. The Dongguan factory was sold, the Tianjin factory was sold, and the headquarters building was sold. There are only 27 electrical appliance cities, a dozen brands, and hundreds of distributors left under the umbrella.

In April 1998, Jiafeng Group changed its name to Meida Commercial and became a small enterprise that sells brand leasing, channel sales, terminal sales, and patent licensing.

Jiafeng's major brands can still be seen on the market, but the quality is uneven and their reputation has plummeted!

Under this wave of operations, Schroders Group recovered its funds and made little profit. Goldman Sachs Group made a small profit through a series of moves left and right. The huge Jiafeng Group was dismantled to pieces, and there is no longer any Threat, with the help of huge sales channels, Motorola is in the limelight in China, and its cooperation with local governments to build networks has also turned into a bad debt.

On the seventeenth day of the first lunar month in 1997, Lu Feng simply packed his luggage and rushed to Xiangjiang.

The villa of more than 800 square meters, with only Lu Feng alone, seemed a bit empty. The family hired more than a dozen servants, mainly to clean up and repair the lawn. Unlike the villas in Shenzhen, it was several hundred meters away from the seaside. distance, with green plants in the middle, and confidentiality is absolutely top-notch.

At the end of February, the scorching sunshine seemed to be left. At the pavilion on the second floor, Lu Feng and Su Yourong were enjoying the coolness under parasols, looking at the silhouettes of people on the beach in the distance.

"Your coffee!" A servant in his thirties put the coffee on the table.

"I really regret buying this house. In such a big house, I don't even know if there is an extra family living in it." Lu Feng took a sip of coffee and said, "The servants we found are all in their thirties." Young lady, you are really good at arranging things!"

"This is a Filipino maid. They have been trained for many years. Find some old ladies for you. I'm afraid they can't even take care of themselves." Su Yourong drank coffee and said: "Aren't you a research and development company? Why hire so many employees?”

"I put all the equity of Minsheng Bank and Jiamei Food under Hurricane Capital. I need people to go to the mainland frequently. At the same time, I will strengthen the management of these two companies, and also to increase the valuation." Lu Feng said to her: "This Can you give me a higher estimate?"

Su Yourong put down the coffee cup, sighed and said: "It's not that I won't give you an estimate, it's that after the estimate, no one buys it. Don't stay at home all the time, participate in some activities, you need to get familiar with the capital world, the day after tomorrow There is a dinner party, I organized it, you should go too."

"Okay!" Lu Feng nodded and agreed.

In the evening, Lu Feng had a meal with everyone for the first time since coming to Xiangjiang. Wei Yandan was still responsible for business management, while Zhu Lidong was responsible for market development. Chips and other products needed to be sold, and they were also responsible for supply chain cooperation.

Du Guoying assisted Zhu Lidong in his work and also did some financing matters.

Compared with Jiafeng Group, everyone's workload has become smaller, but it is also more difficult. Zhu Lidong does not need to travel around the country to open up sales channels. Instead, he must focus on Fusang. Even in the domestic market, it is mainly Shenzhen.

The number of employees is small, between two and three hundred. Compared with the previous management scale of tens of thousands, Wei Yandan is quite comfortable with such a small scale.

"We have been through ups and downs for so many years. I am especially grateful for your company. We are not making the company smaller and smaller, but making the company deeper and deeper. Selling clothes and food can be done by one person. What we have to do , that is, we can do what others cannot, and now we are going further and further down the road!”

"We want to be high-end, sophisticated, and highly profitable. I believe that when you go out and introduce yourself to others many years from now, you can proudly say that we are engaged in the world's most high-end manufacturing industry, even if we sell clothes and tea eggs. No matter how many billions he earns, we don’t look down on him, come on! Cheers!!”

As Lu Feng spoke, he picked up the wine glass in his hand and everyone clinked their glasses together. The scene was very lively.

Lu Feng knew that when a company as big as Jiafeng Group was lost, everyone would definitely feel uncomfortable. He used to be an executive of a leading well-known company, but now he has become an executive of such a small company. He would definitely feel unbalanced. This It’s time to use the word high-end to make everyone feel more comfortable.

After they had finished drinking and eating, everyone dispersed. Before leaving, Liucheng stood beside Lu Feng and asked in a low voice: "Mr. Lu, when will the funds be available?"

"Did all the previous money go into buying equipment?" Lu Feng asked.

"R\u0026D equipment and materials are very expensive because of the small quantities. Some are more than ten times more expensive. In addition, some companies heard that they are from China, so it is good to buy them. There is nothing in terms of equipment this year. The problem is salary!" Liucheng whispered.

"How many months can it last?" Lu Feng asked.

"April or May at most. The current monthly expenditure for a series of chip factories is about 60 million yuan. This does not include the expansion of hydropower that is about to be built. Now our product market, the monthly profit is about 20 million yuan. , plus overseas R\u0026D centers, domestic R\u0026D centers, and talent introduction during the graduation season, the monthly expenditure should be controlled at about 100 million yuan, with a net loss of 80 million yuan!" Liucheng quietly calculated. Account.

"We lose one billion a year!" Lu Feng took a deep breath and said.

Just maintain the current production. Once a new product is mass-produced, it will cost another sum of money. The problem now is that if you mass-produce a product, you will lose a sum of money. The market is too small and the quantity is too small. In terms of procurement, They have no say at all, the other party is asking for prices.

"Are there any new products on the market this year?" Lu Feng asked.

"There are several iterations, but the more they are made, the less ambitious they are. As for memory sticks, the world's first-class standards are basically 64mb. After we iterated, we can only achieve 32mb, and the read and write speed is only 10% of others. Seven or eight of them are produced, because the market is too small to sign agreements in large batches, and the cost is more expensive than others!" Liucheng sighed in a low voice, feeling helpless.

"If you include these iterative products, how much will you lose this year?" Lu Feng asked.

"At least double it!" Liucheng replied.

"We must have a competitive product of our own as soon as possible. Where do you think we can make breakthroughs in the next one or two years?" Lu Feng asked.

"Screen! We have accumulated a lot on screens. Now there are two directions for screen display. Silicon Valley is doing plasma, and Fuso Enterprises headed by Sharp is doing LCD. We also have certain accumulation in LCD." Liucheng replied .

"You said the loss was more than 200 million yuan. If I give you more authority, you can lose 200 million US dollars this year. Can the LCD display be taken out by this time next year?" Lu Feng asked.

Liucheng hesitated, thought for a while and said: "How about giving another 100 million? We have a lot of technical reserves, but the patents in this area are in the hands of Sharp. We can pay them part of the money and do patent crossover next year. Production will begin in March!”

Lu Feng nodded and agreed, now they need profitable products!

They also talked about technology-related issues. Whether it was processors, motherboards, or data transmission, they were all more than one generation behind the world. Lu Feng asked them to make processors, storage, monitors, and hard drives 100% of the world's first-class level in 1999. Eighty.

At that time, we must launch our own set of competitive products and target the domestic consumer electronics field.

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