Video Game Empire

Hong Kong's manufacturing industry had the ability to assemble TV sets before, but it did not have the ability to engage in key upstream industries, and all core components were imported. This time, Li Xuan allowed a large number of key technologies to be authorized to the outside world, and also supported them in the form of orders.

Dongfang Group is planning to build an annual production capacity of 10 million color picture tubes in the deep-sea special zone. This is not a satellite. The company's annual sales of TV sets in the US market are as high as 5 million units. If it can reduce production costs and fight a wave of price wars, it will definitely be able to regain some market share from Japanese manufacturers. The TV business alone can eat up more than 5 million picture tubes.

The arcade business of Dongfang Game Company is also reaching a peak. The total number of arcade machines sold by the company last year exceeded 2 million. Each arcade machine also needs a picture tube, which can eat up 2 million picture tubes.

Even if the golden age of the arcade industry doesn't last too long, it's likely to boom and bust in the next two or three years, going downhill. But the shrinking demand for picture tubes caused by the decline in arcade sales can be more than made up for by the burgeoning personal computer business.

The principle and structure of a computer monitor are almost the same as that of a TV, and the picture tube is also the core component of the monitor. In 1984, Aikang's series of personal brains, the total global sales volume has exceeded 1.7 million units.

According to the analysis and forecast of the Oriental Economic Research Institute, a think tank within the group, in the next five years, the annual sales of Aikang's computers will exceed 5 million units, which is enough to offset the demand gap for picture tubes after the decline of arcade machines.

That is to say, in the whole year of last year, the total amount of picture tubes consumed by Dongfang Group was at least 9 million. Then count the picture tube data of the company's export. Dongfang Group can easily digest the production capacity of 10 million picture tubes.

And this also means that as long as it can take orders from Dongfang Group, the upstream raw material factories will be full of oil. There is this kind of lucrative business. Other capital in Hong Kong is naturally very willing to enter.

Since last year, Dongfang Group has invested in technology in the form of shares. It has successively supported two phosphor factories, three glass bulb factories, one shadow mask factory, one deflection coil factory and two metal parts stamping factories in the deep-sea special zone.

"At this time last year, there were still tracts of farmland here. The efficiency of the SAR government is very high. It only took half a year to complete the land acquisition and three links and one leveling! According to the current construction speed, wait until the beginning of next year. All these factories can be built and put into production!" Ke Lilun pointed to the rows of tall tower cranes not far away, and introduced to Li Xuan who was standing beside him.

The swarms of construction sites under construction are all newly established deep-sea special zones and part of the national-level electronics industry development zone. One of the core projects in the development zone is the TV manufacturing base.

Li Xuan proposed this in person when he met with Mr. D last spring. Willing to invest in the deep-sea special zone to build a giant electronic manufacturing base with picture tubes and TVs as the core. After receiving the affirmation and support of Mr. D, the green light was given to this plan from both the central and local governments.

For example, the central government quickly approved the application for the establishment of a national-level electronic development zone submitted by the deep-sea special zone, and gave the special zone government more autonomy in terms of foreign investment approval, land approval, tax incentives, etc.

On June 1 last year, the People's Congress of East Guangdong Province promulgated the "Provisional Provisions on the Administration of Wholly Foreign-Owned Enterprises in East Guangdong Province". This "Regulation" allows foreign capital to set up factories in three special economic zones in the province as sole proprietorships, provided certain preconditions are met.

Except for the Shekou Industrial Zone, there was no precedent for wholly foreign-owned factories in China before. All investment promotions are carried out in the form of Sino-foreign joint ventures and Sino-foreign cooperation. The "Interim Regulations" issued by the Guangdong Provincial People's Congress also solved the legislative gap. The National People's Congress is also accelerating the formulation of the Law of the People's Republic of China on Foreign-funded Enterprises, which is expected to be promulgated next year.

Li Xuan suddenly proposed on a whim. Come and take a look at this newly established state-level electronic development zone last year. In fact, the development area is now full of messy construction sites, and there is nothing to see at all.

On the way back, Ke Lilun pointed to every factory outside the car window and introduced to his boss in detail: "Li Sheng. This factory is a metal parts stamping factory invested and established by Mr. Wang Jianzong, the second son of the Wang family of Johnson Electric. This Dexing metal manufacturing company, in addition to accepting our orders, is also responsible for some orders of Johnson Electric!”

Johnson Electric is the only one in a single field in the later Hong Kong-funded mechanical and electronic industry. Manufacturing companies that can achieve global leadership. Johnson Electric was established in 1959. In the early days, it mainly relied on the large-scale toy manufacturing industry in Hong Kong. Production of low-end toy motors. After completing the initial technical accumulation, Johnson Electric is gradually entering the field of high-performance micro motors in recent years.

"Mr. Wang Songliang, the founder of Dechang Electric, is over 70 years old, and he began to hand over most of the company's affairs to his eldest son. In order to avoid his death in the future, the two sons will be separated due to family property disputes. Wang Lao is very willing to The second son jumped out of the family business to start his own business.

Mr. Wang Jianzong was also one of the first people who came to contact us. In order to support his son, Mr. Wang personally came forward to guarantee him, and loaned 35 million Hong Kong dollars from Jiahua Bank to set up this Dexing Metal Manufacturing Company! "Colilan continued to introduce.

In fact, when Dongfang Group showed its style and expressed its willingness to accept external capital and jointly undertake the company's industrial transfer, many people made a test to Li Xuan, either overtly or covertly.

He is naturally embarrassed to say frankly, I no longer see the profit of manufacturing. This also hurts other people's self-esteem too much, so he just perfunctory. Anyway, Li Xuan's attitude is that Jiang Taigong is fishing, and those who wish to take the bait.

And the Oriental Group has never had a precedent for harassing its partners before. On the contrary, all those who followed the "God of Fortune Li" made a lot of money. Therefore, in the past year, the industrial park promoted by the Oriental Group in the deep-sea special zone has leveraged more than 1 billion Hong Kong dollars, of which the Oriental Group's own investment is less than 200 million Hong Kong dollars.

"Many people in Hong Kong are still doubting. Do I have any ulterior motives? Otherwise, why would I give the opportunity to make money to others for no reason! Because assembly line manufacturing is the lowest cost-effective link in the entire product cycle. The height of our Oriental Group is no longer on the same level as other Hong Kong companies!" Li Xuan said with a domineering smile.

Li Xuan is not without money. On the contrary, Eastern Group's cash flow is very abundant. Especially after the transfer of a part of the broadcaster's equity to ge last year, the Oriental Group has recovered more than one billion US dollars in cash. Coupled with the strong revenue capabilities of each subsidiary, the huge debt that the Oriental Group had previously borne due to the acquisition of the company has been digested.

But if it weren't for the monitor, which is also an indispensable accessory in personal computers, Li Xuan has no intention of letting Dongfang Group get involved in the crt (cathode ray tube) industry. Even when he bought the company, it was for the TV station, and the TV business was purely a by-product.

In Li Xuan's view, CRT TV is already a sunset technology, and its lifespan will only have more than ten years left. The future era belongs to liquid crystal technology. Since the time for crt technology is short, Li Xuan naturally does not care much about the issue of technical confidentiality.

The most important part of the TV is the CRT picture tube, which is mainly composed of five parts: electron gun, deflection coil, shadow mask, phosphor layer and glass casing. The most technical part of this is the electron gun, which directly affects the picture quality of the TV.

Therefore, the Dongfang Group's own investment is mainly in the production of electron guns, and the rest are handed over to other companies to manufacture by way of technology investment. If it weren't for the fact that he couldn't believe the current technical level of Hong Kong companies, Li Xuan would even let other companies be responsible for the production of electron guns.

The proliferation of technology is bound to lead to more intense competition and a rapid decline in the profits of the entire industry. But for Orient Group, the TV industry is just a non-core peripheral business. And whether it is Sony, Panasonic, Hitachi among Japanese companies. Or South Korea's Samsung, the TV business is an important source of profit for them.

In Li Xuan's view, Dongfang Group's biggest competitors in the future are destined to be Japanese companies and growing Korean companies. If you can quickly turn the global TV industry into a cabbage price. It is bound to greatly weaken the profitability of Japanese and Korean companies. This is definitely more beneficial than detrimental to the Oriental Group!

In the eyes of Li Xuan, it is just a tasteless crt industry, but in the eyes of others, it is indeed a delicious big drumstick. Therefore, Li Xuan is willing to do his best to support Hong Kong's local capital to enter the TV industry. Let them compete in **** price competition with Japanese and Korean companies in the global market.

For example, Lu's Electronics Co., a benchmark enterprise that Li Xuan single-handedly supported, is in addition to making orders for TV sets and computer monitors for the Oriental Group. Self-created TV brands are also developing rapidly. Especially in Southeast Asia and mainland China, it is gaining more and more market share.

Mainland China is definitely in the next fifteen years. One of the fastest growing home appliance markets in the world. In another time and space, Japanese and Korean electronics companies have grabbed a lot of profits in the Chinese market. Taking the TV industry as an example, the mid-to-high-end market is basically in the hands of foreign brands.

For this reason, Changhong also fought a **** price war in 1996 in the name of "serving the country by industry". Since then, the price war has become the most important magic weapon for the domestic electronics industry, and China has also become the world's factory in just 20 years.

Therefore, in addition to supporting Hong Kong capital to enter the electronics industry represented by televisions and picture tubes, Li Xuan also began to vigorously support the domestic electronics industry. This time he came to the special zone not just to visit Xiangmihu Resort, but also to attend the ribbon-cutting ceremony of the joint venture factory established by the company and Huaqiang Electronics Co., Ltd.

There is a well-known electronic market called Huaqiangbei in the deep-sea special zone of later generations, which is known as the largest electronic parallel wholesale market in the world. In fact, the predecessor of Huaqiang North Business District was the location of Huaqiang Electronics' factory in the Shangbu Industrial Zone previously planned by the Deep Sea Special Zone.

After the establishment of the deep-sea special zone in 1979, the eastern Guangdong provincial government relocated a number of "small third-line" factories originally built in the mountainous areas of northern Guangdong to the deep-sea special zone. From this, Huaqiang Electronics Co., Ltd. was established, hoping to develop into an important electronics manufacturing base in China by relying on the favorable conditions of Hong Kong.

In the early days of its establishment, Huaqiang Electronics Co., Ltd. was mainly engaged in the processing of raw materials, mainly undertaking foreign trade orders such as radios and tape recorders from Hong Kong merchants. With the increasing demand for TV sets in the domestic market, Huaqiang Electronics hopes to introduce advanced TV production lines from abroad through a joint venture.

This time, Dongfang Group actually grabbed this joint venture opportunity from Japan's Sanyo Company. Because there are strict restrictions on the import of TV sets in China, Japanese companies have to choose joint ventures with domestic companies in order to enter the Chinese market.

But the ultimate goal of Japanese companies is to maximize profits. Therefore, the conditions for cooperation they propose are naturally harsher. In contrast, Li Xuan is simply a model of a "patriotic entrepreneur"!

You want the most advanced TV production line? Of course we can provide it, but the price is slightly more expensive. In fact, we have an old assembly line in Mexico. Although the automation level is slightly lower, it is actually very suitable for the actual situation of abundant labor in China. The most important thing is that its price is much lower than that of the new production line, which can greatly save the cost of building a factory.

Do you want to build your own picture tube factory? Of course, there is no problem, but if you want to build a complete picture tube production line, not only will the investment be expensive, but the technical requirements are also very high. Anyway, in the electronic development zone in the special zone, there are already complete sets of picture tube parts factories.

Can you guarantee the export ratio of the products produced by the joint venture factory to ensure that the joint venture company can earn foreign exchange? This is of course no problem, but we have to use the way of OEM! By the way, if domestic funds are tight, we can also provide Hong Kong dollar loans!

In this way, it took only 12 months for a large-scale factory with an annual output of 250,000 color TV sets to stand in the Shangbu Industrial Zone of the Deep Sea Special Zone, showing everyone what is called deep sea speed!

This is only the first phase of the project, and the second phase of the project is already under construction, and it is expected to be put into production before the end of the year. At that time, the new Huaqiang joint venture company will have an annual production capacity of 400,000 color TV sets, of which 200,000 will be exported, and will also have the ability to assemble and produce 500,000 color picture tubes!

This production capacity may not be a big deal for Dongfang Group, but for the current domestic electronics industry, it is already one of the largest manufacturers. According to statistics from the Ministry of Electronics Industry and Industry, in the list of top 100 electronics companies last year, Huhai TV No. 1 Factory, which ranked first, has an annual sales revenue of only 400 million yuan. After the Huaqiang Company is fully put into production, the annual output value can almost reach this level! (To be continued..)