Video Game Empire

The mainland still implements the planned economic system, and the market economic reform has just begun. All factories are producing according to the tasks and indicators assigned by the superiors. ∈↗ Vertex Novel, he developed the product himself but did not produce it, and asked other factories to produce it on his behalf. Unless there is an administrative order in China, this situation will never happen.

"Is this the same principle as processing with supplied materials? You provide the machinery, equipment and raw materials, and then find someone to help with the production, and then pay a certain cost!" Xie Li thought for a while and said, "Your company can completely cooperate with domestic suppliers. For corporate cooperation, the fee we charge is definitely much lower than that of Hong Kong companies!"

Li Xuan shook his head, organized the language and said: "There are some similarities, but there are more differences. Specifically, we provide samples and technical information to the cooperative manufacturers, and then they will organize production according to the quality and quantity. We They will not undertake the investment in factories and equipment of OEMs, which are all the up-front investments necessary for cooperative companies to undertake orders, and they need to gradually recover their costs from the profits earned from OEM contracts!”

"That foundry company has to build a new production line for you. Isn't that a huge investment?" Xie Li thought about it and asked.

"This is also an opportunity for the other party to show their strength. We can't choose a small factory without any foundation for cooperation. And as long as the other party can sign a cooperation agreement with us, they can go to the bank to apply for a loan with the contract, so the threshold is not you. Imagine so high!" Li Xuan said with a smile.

The reason why Dongfang Electronics outsources the manufacturing process is because the replacement of electronic products is very fast, which means that the depreciation of the production line is also very fast, if you can't update the equipment quickly. Production efficiency will be reduced. As a result, enterprises do not invest a lot in equipment. Once the cash is turned into fixed assets, it is not easy for the company to turn around.

And Dongfang Electronics outsourced the production process. It is equivalent to leaving the pressure and risk of fixed asset investment to the foundry, and you can travel lightly. If the situation is not right, you can withdraw at any time.

What's more, the manufacturing process needs to recruit a large number of workers, and the resulting management costs are not cheap. If a single Dongfang game company produces its own arcade machines, handheld consoles, and game consoles, it will instantly become a huge enterprise with several thousand people. Such a large enterprise requires a high level of management art, otherwise it is likely to cause bloated and redundant staff, and the production cost is not as cheap as outsourcing.

"Dongfang Commercial, a subsidiary of Dongfang Group, purchases large quantities of various electronic components every quarter. If Minister Xie is interested, he may organize mainland electronics companies to participate in the bidding!" Li Xuan suddenly suggested.

"Oh, haven't you already outsourced all production. Why are you still purchasing parts yourself?" Xie Li asked with bright eyes.

"Although we are not responsible for production, we will be responsible for the procurement of main components. This is mainly due to several considerations, first of all, to control the quality. We are responsible for the procurement, which can prevent inferior components from entering production from the source. The manufacturing process can control the quality of products. In addition, the unified procurement by Dongfang Commercial has stronger bargaining power when negotiating with upstream suppliers. It can reduce procurement costs!” Li Xuan explained.

"Do you have any specific requirements for suppliers?" Xie Li continued to inquire.

"First of all, the supplier must have sufficient production scale to ensure timely supply. The products of several of our subsidiaries of Dongfang Electronics are still selling well, and the number of raw materials purchased each month is relatively large. If the scale of the supplier is too small, it is very likely that The supply is not enough. It affects our production plan!

Secondly, the quality of the product must meet our requirements! I have to remind you, Minister Xie, that we have a set of very strict quality control regulations at Dongfang Electronics. It is much stricter than the mainland standards. Many products that you think are qualified may be returned by our quality inspectors as defective products.

Therefore, if the mainland enterprises are ready to participate in the procurement bidding of Dongfang Electronics. Be sure to supply according to the quality standards we give, otherwise it is likely to cause unnecessary trouble! The last thing is of course the price. Choosing the best and the cheapest is the principle that every enterprise will follow when purchasing. After all, we want to reduce costs as much as possible! "Li Xuan explained meticulously one by one.

The mainland has a huge advantage that Hong Kong does not have, that is, it has a very complete industrial system. For example, most of the components of the electronic industry can be produced in China. The only thing to worry about is whether the quality performance is not enough, and whether it can be mass-produced cheaply.

In the next few years, the northward shift of Hong Kong's industry is an irreversible trend, and with the development of the Special Economic Zone, many mainland electronics companies have also moved south. In the Shangpo Industrial Zone just planned by the Deep Sea Special Zone, several large state-owned electronics factories have already decided to settle in within a few months. The Fourth Ministry of Machinery and the Deep Sea Special Economic Zone intend to build the Shangpo Industrial Zone into an electronics industry cluster by relying on the advantage of being adjacent to Hong Kong.

Although Europe and the United States are gradually easing the domestic blockade, this requires a process after all. Before 1984, many electronic components imported from the mainland had to be submitted to the Batumi Commission for approval. Relying on the advantage of being adjacent to Hong Kong, the deep-sea special zone can bypass these restrictions and smuggle a large number of electronic components through gray channels.

Throughout the 1980s, the SAR Government turned a blind eye to this. So much so that this confused account is still a major problem after the gradual transformation of Shangpo Industrial Zone into Hua-Qiangbei Electronics Market.

Many of the knockoff products sold in the Huaqiangbei market were imported through abnormal channels. Manufacturers can't come up with purchase invoices for raw materials at all to deduct value-added tax. If they want to make profits, they can only work **** tax evasion and evasion. At the same time, there is no warranty for parallel-imported parts, and the quality levels are uneven, making the copycat products synonymous with low-end and inferior quality.

There is a trading company in Heletang, where Brother Li Xuan is located, which specializes in cooperating with certain counterpart companies in mainland China. According to the needs of the other party, various electronic components are purchased from abroad, and then the goods are delivered from Hong Kong to the designated joint by speedboat. Such a gray channel integrating internal and external has been deeply rooted after decades of operation, so that the deep-sea SAR government has spent a lot of energy on cracking down in the 21st century.

Of course, none of this has much to do with Li Xuan, and he is not interested in participating in this kind of business. The deep-sea special zone was undoubtedly the place where the electronics industry in China developed the fastest throughout the 1980s, and Dongfang Electronics naturally hopes to draw nourishment from here.

Different from foreign countries, the industrial agglomeration in the mainland relies on the guidance of the administrative department. For example, the reason why state-owned electronics factories have come south to set up factories in the deep-sea special zone is also the result of the push behind the four-machine department of the competent authority. Hong Kong's electronics industry now has nearly 1,000 factories, large and small. Dongfang Electronics does not dare to say that it has completed all the integration work, but at least a large number of companies have been incorporated into its industrial chain plan.

Since this year, Dongfang Electronics has gradually promoted the transfer of peripheral enterprises in the system to the special zone. After all, with the soaring land and labor prices, the innate deficiencies of Hong Kong's manufacturing industry have become more and more obvious. For example, the picture tube factory that Dongfang Electronics is planning to build by a joint venture has not considered choosing a location in Hong Kong, but has directly set its sights on the deep-sea special zone.

In the future, China will be the world's factory. The cheap human resources in the mainland, whether it is manufacturing or technology research and development, can bring great benefits to Dongfang Electronics. It has more advantages than the corner of Hong Kong. Li Xuan naturally wants to advance. layout. And it is naturally beneficial and harmless to have a good relationship with the four-machine department in charge of the electronics industry.

"Then I have to inform the domestic enterprises that this kind of opportunity to earn foreign exchange at the door cannot be missed!" Xie Li said with a smile.

"I will ask Dongfang Commercial Company to send a detailed purchase letter. You can arrange for powerful companies to participate in the bidding according to the needs of our order!" Li Xuan smiled and nodded.

If the products of mainland enterprises can meet the procurement standards of Dongfang Electronics, handing over orders to mainland factories can definitely further reduce costs. After all, throughout the 1980s, the domestic thirst for foreign exchange reached a very crazy level. As long as the enterprise can earn foreign exchange, even if the production cost is higher than the export price, the government will make up for the loss of the enterprise through a series of means such as tax rebates and subsidies.

Li Xuan and Minister Xie Li had a very pleasant conversation. In the end, he said that Dongfang Commercial would send a special person to help the Fourth Machinery Department and organize the major electronics factories under the department to participate in the procurement bidding of Dongfang Commercial. Although Li Xuan does not plan to invest directly in the mainland for the time being, he has the opportunity to cooperate with mainland electronics companies for mutual benefit and win-win results. He feels that his trip to the north has been worth the fare.

Although the dishes of the reception banquet were very delicate, the portions were not large, and everyone did not pay attention to the food. After the dinner, there was a symposium. Deng-Lao and others attended and listened carefully to the opinions of all of you from Hong Kong.

The most enthusiastic speaker in the Hong Kong delegation is undoubtedly Mr. Zhong Siyuan. UUkanshu www.uukanshu.com He is the only politician in the 12-member group in Hong Kong, and he is a figure with a pivotal position in Hong Kong politics.

Beijing's message was clear, and the Chinese government's determination to take back Hong Kong in 1997 was unbearable. Taking back Hong Kong is by no means out of economic interests. The central government will not take a penny from Hong Kong in the future. The return of Hong Kong is a matter of sovereignty and dignity of a big country, and no bargaining is allowed.

Li Xuan hardly spoke much during the whole process, only using his ears and not his mouth, he just listened to the temptation and confrontation of everyone's words. He naturally knows the bottom line of the central government, but he does not need to come forward directly for this kind of political speculation.

ATV's subsidiary ATV is preparing a talk show called "Three Walks", with a host and a guest who has a positive and negative view. (To be continued..)

ps: Thank you for your enthusiastic votes, thank you! Please don't stop throwing votes, the gap has not yet opened! Before I know it, this book has reached 200 chapters, with more than 500,000 words. From 100 chapters to 200 chapters, Skye is working hard to code words step by step. Thank you for your support and encouragement all the way!