Rebirth of the Official Business Route

These days, Xie Jiannan felt uncomfortable. The Asian economic situation suddenly deteriorated in the middle of the year, and there were only two months left, and no one could turn the tide. Kewang's huge loss this year is a certainty and an irreversible fact. Everyone has a clear understanding of this, but if it is publicized by the news media with great fanfare, no one will be in a good mood.

Every year around the beginning of November, CCTV will inevitably become the target of numerous media reports.

Generally speaking, it is difficult for the media to obtain accurate data. Usually, some data are tailored according to the needs of publicity for publicity. For example, if the profit prospect is not optimistic enough, then only focus on the publicity of revenue data. Novel chapters are updated the fastest

In early November, Aida announced its operating data for the third quarter and made a detailed forecast for its financial status in the fourth quarter. That is to say, the status of the disk player market is exposed to the public in such a naked way, and it cannot be covered up by the Kewang family if they want to. The sales data of the machine market red test speculates Kewang's financial situation as of the end of October this year.

The profitability of Aida Electronics from January to April is still jaw-dropping, with a monthly net profit of up to 80 million yuan, while Kewang's production and sales volume did not reach the breakeven point until the beginning of April, and there was a slight surplus in April. Fiction novel chapters are updated the fastest

At the beginning of May, Aida Electronics successfully went public through a back door, and its financial data was merged into the listed company. After deducting the profits withdrawn from Kumho by the mainland market, it was merged into the revenue of Southeast Asian urban areas. The net profit of Aida Electronics’ disc player business in the second quarter It still maintains a high level of 220 million Hong Kong dollars, which is also the total financial support for Aida Electronics to hit 10 billion in market value during that period.

The second quarter was also the most relaxing and pleasant time for Kewang. The domestic sales data rose steadily, and the performance of overseas companies also continued to increase. The profit attributable to Kewang’s headquarters was close, which made up for the huge marketing costs in the first quarter. most of the deficit.

If such a good situation can continue, even if it can't compete with Aida. Xie Jiannan's personal business life can also be regarded as a brilliant addition.

The situation collapsed suddenly from the beginning of the third quarter.

At the beginning of July, the financial turmoil suddenly hit the whole of Southeast Asia, almost without warning, and it was so fast that people were caught off guard.

Aida Electronics was not even able to survive alone. The net profit in the Southeast Asian market dropped from 40 million Hong Kong dollars in the second quarter to less than 4 million Hong Kong dollars. Stand-alone profits fell sharply.

Relying on the cost advantage formed in advance, the net profit of the disk player business in the third quarter remained above HK$100 million, but the overall financial situation was only one-third of that in the second quarter, and Xiangxuehai was currently undergoing vigorous construction and large-scale development. put loose money stage,

It is still unable to contribute too much profit to Aida Electronics.

With the spread of the Asian financial turmoil, the market value of Aida Electronics also dropped from a peak of nearly 12 billion to about 5 billion.

The disk player market in the fourth quarter is not optimistic. However, Aida Electronics announced that it will use reserve funds to repurchase the company’s stock while releasing the two types of data. A large amount of funds will acquire the shares of Aida Electronics in the open market, so as to maintain the current stock price from falling sharply.

When backdoor listing. Aida Electronics obtained an additional 600 million Hong Kong dollars in land reserve funds, plus the profits attributable to listed companies in the two quarters and the previous capital surplus. Aida Electronics can use as much as one billion Hong Kong dollars, and can buy up to 20% of the stocks from the market. The key to maintaining the stock price is to boost the confidence of investors. It does not need to use much money. It only needs to repurchase the 200-300 million funds originally planned for dividends, which is enough to maintain the stock price at the current level.

At this time, Yuexiu Holdings didn't care about the dividend funds of less than 100 million yuan, and asked Aida Electronics to use the dividend funds for stock repurchases. It can maintain the trust of Hong Kong investors in Yuexiu Holdings, and can also moderately strengthen the control over Aida Electronics.

Kumho Electronic Technology Research Institute's statement on the increase in holdings is to take advantage of low prices to increase control over Aida Electronics. The second is that when the stock market was at a high level, Kumho took away a huge amount of cash through backdoor listing. At this time, it should also make some remarks to show a responsible attitude.

Of course, Kumho has to bear some responsibility. When it was listed through the backdoor, Aida Electronics’ quarterly profit was as high as 250 million. After the backdoor listing, the profit scale immediately shrank to one third. The best time to take away four billion. Anyone who changes it will praise Kumho's shit luck.

most important. The Asian financial turmoil continued to spread, and Hong Kong's Hang Seng Index was also at a relatively sensitive point. The Hong Kong authorities need some strong support; red chips, as the hardest-hit area of ​​the financial turmoil in Hong Kong, should report some good news at this time to boost morale. Of course, Aida Electronics cannot only report worries but not good news.

As the leader of the disc player industry, Aida Electronics is so bleak, and the situation of Kewang can be imagined.

Due to the difference in manufacturing costs, Aida Electronics can still maintain a meager net profit in Southeast Asia in the third quarter. In the third quarter, Kewang subsidized nearly 30 million yuan in the Southeast Asian market, which does not include the previous losses of overseas companies. The most frustrating thing is the sudden increase of pressure in the domestic market, and the continuous decline in stand-alone profits. Kewang can still guarantee a certain surplus in July. In August, it is only a line away from the break-even point. In September, due to Xinyuan Electric's rush to move Due to the price offensive, Kewang’s inventory loss alone is close to more than 30 million yuan, and the profit of the stand-alone machine has dropped below the break-even point. The annual loss is likely to exceed 150 million yuan, which does not include the losses suffered by overseas companies.

At this time, the economic situation is far from showing signs of improvement.

In stark contrast to Kewang is Xinyuan Electric, which is alive and kicking. Xinyuan Electric has never regarded Aida Electronics as the target of competition. It was precisely during the process of merging several small factories into Xinyuan Electric that it received strong support from Aida Electronics to control Kumho behind the scenes. Business support and other all-round support.

Only for the new CD player test quota at the beginning of the year, Xinyuan Electric unexpectedly obtained one of the seven quotas from Kumho, and because of this, nearly 10 million in fees and testing equipment were blackmailed from Kewang.

Xinyuan Electric did not rush to start the marketing storm strategy, but steadily advanced on the basis of integrating the resources of the original several small factories. They have not even had time to expand to the emerging markets in Southeast Asia. The financial turmoil has already happened, so there is no need to bear the losses in Southeast Asia caused by the financial turmoil.

At the beginning of the year, the production and sales of disc players of Xinyuan Electric was even less than a quarter of that of Kewang, and by the middle of the year, it was still only one-third of that of Kewang. The most profitable opportunity has accumulated a certain amount of funds for subsequent development.

into the third quarter. The advantages in cost control suddenly magnified. When Kewang was struggling to break even, Xinyuan Electric continued to increase its publicity to the market with ease.

At the beginning of September, Xinyuan Electric obtained Kumho’s price reduction support half a month in advance, and was able to take the lead in setting off a storm of price reduction and promotion in the terminal market. It suddenly narrowed the gap with Kewang in terms of production and sales, and was close to half of Kewang’s production and sales. , becoming the sixth-ranked enterprise in the disc player market.

The top six disk player companies have divided up 90% of the disk player market, and Aida Electronics is still at the top, although Aida Electronics' reservation target at the beginning of the year was only 30%. But as of the end of October, it occupied 32% of the domestic market. ST Electronics ranked second. Kewang ranked third, accounting for 13% of the domestic market, BBK and Aiduo ranked fourth and fifth, Xinyuan Electric ranked sixth, accounting for 7% of the market share.

Plus sales data from overseas markets. Kewang's total market share is higher than that of Shinco Electronics, but what's the use? Xie Jiannan sat in the office, looking at the forecast data reported by the media in pain.

At this moment. Kumho also entrusted some of the single-disc players of Aida Electronics to Xinyuan Electric for OEM.

Although the cost of OEM is low, each machine has a gross profit of 20 to 30 yuan, but the production and sales of Aida Electronics' single-disc players are extremely large, with sales of nearly 200,000 units per month in the domestic market alone. Compared with China Lake, an electronics company has a monthly profit of two to three million, what else is there to be dissatisfied with?

If Kumho can entrust this part of the foundry business to King Ke, Xie Jiannan doubts whether he has the courage to refuse. Although the three companies teamed up to attack Jincheng Real Estate to get some compensation-of course. It is still unknown when Jincheng Real Estate's income will be realized. But Ke Wang's financial pressure is real.

The knock on the door interrupted Xie Jiannan's train of thought, and Chen Jing's charming figure was reflected outside the frosted glass door. You Control, Chen Jing, and Yu Ping served as the chairman and president respectively. Dike Wang Gaoke began to intervene in the mobile phone OEM and underwriting business relying on Kumho's components and technical support from October. It's off to a pretty good start.

With Xie’s inherent thinking, it is difficult to understand why Kumho has been so diligent in supporting Xinyuan Electric and disc player spare parts companies. The economic crisis and financial turmoil have affected the domestic disc player market, but Kumho has never relied on disc players. The strong position of the market has reduced the profit margins of spare parts companies. At this time, Kumho has come to support Kewang Hi-Tech. It can already be seen that Kumho is changing its role as a component supplier, but what is Kumho's goal?

Chen Jing walked in with the materials in her arms, looked at Xie Jiannan who had been exhausted by the media reports for the past few days, handed him the materials, saw the newspaper on the table, and said nothing.

Not to mention that Aida Electronics' annual net profit may be as high as 700 million yuan-this does not include Kumho's profit on disc player components. Xinyuan Electric's profit this year will exceed 100 million yuan, but Kewang will Facing a huge loss of nearly 150 million yuan, how could such an achievement make him feel embarrassed when he was crowned a business genius in his youth?

Put the blame on the head of the financial turmoil? If the financial turmoil did not strike suddenly, it would not be difficult for Kewang to achieve the profit target of 200 million to 300 million yuan, but the media unanimously accused Kewang of gambling-like marketing strategy and leap-forward corporate development strategy as the root cause of Kewang’s huge losses this year. reason.

Ke Wang has become the target of ridicule by the media, and has also become a bargaining chip in their hands. They are planning to step on our Ke Wang to put pressure on CCTV. This year's CCTV advertising investment conference, will they fight hard? Xie Jiannan looked up. Looking at Chen Jing, she smiled wryly.

A year ago, Ke Wang irrationally won the title of CCTV's King in 1997 at a huge price of 350 million yuan, and became the target of the media's accusation of Ke Wang's gambling marketing strategy.

Maybe it is... Chen Jing responded. The relationship with Xie Jiannan has weakened, but the work still needs to be maintained, and it is impossible to just walk away at this time. Both Xiangxuehai and Aida Group are affiliated companies of Kumho, and it is foreseeable that they will probably make a big splash at this year's CCTV Advertising Investment Conference. Prior to this, attacking the previous bidder by media from local or central ministries and commissions that are not compatible with CCTV will undoubtedly greatly stimulate the enthusiasm of participating companies to compete for the bidder this year.

Liu Minghui's salary next year. Are you going to talk to him, or should I talk to him? Xie Jiannan asked.

A sales director with an annual salary of 800,000 is too extravagant for Kewang Electric.

Let me talk to him... Chen Jing knew that it would be cruel to discuss this issue with Liu Minghui, but after all, she was the vice president in charge of marketing, so she couldn't casually push her own affairs to others. It's not just Liu Minghui's problem alone, the group of people who followed Liu Minghui into Kewang's marketing department last year are all headaches. Kewang will continue to go on, continue to maintain the disc player business, and continue to maintain the brand of Kewang, so it is necessary to reflect. It is necessary to change the radical and gambling business strategy.

Okay, you can talk to them. If you can't reach an agreement, you can get together and break up. When Xie Jiannan said this, he had the feeling of a hero's twilight.

Liu Minghui was a little apprehensive when he received a call from Chen Jingtong to her office. It was almost the time for the CCTV advertising investment promotion conference of the year, and he was not concerned about Ke Wang's marketing plan for the next year. But last year, on the eve of the CCTV advertising investment promotion conference, he and nine other salespeople jumped from Aida to Kewang.

The one-year employment period is coming to an end. Until now, Ke Wang has not talked to him or anyone else about re-employment.

Liu Minghui can also imagine what the ending will be like.

Pushing open the door of Chen Jing's office, watching Chen Jing pick up the glasses at the corner of the table and put them on, she has a beautiful and dignified image of a professional girl. The middle management of the company knows that the relationship between her and Xie Jiannan has fallen into a state of cold war. The root cause is Chint Group The cause of interest disputes with Daya Group.

Sit down... Chen Jing stretched out her hand to invite Liu Minghui to sit down. pursed his lips. It was difficult to talk about the topic, Mr. Chen came to me to talk about my work plan for the next year, right? Liu Minghui forced himself to start the conversation first.

Oh... Chen Jing took a folder from the desk in her hand. Opened it and looked at it, hesitated to speak, closed the folder and pressed it under the palm of his hand, leaned forward and looked at Liu Minghui, Is it possible for you to go back to Kumho?

Liu Minghui knew what answer was pressed under the folder, and even Chen Jing couldn't bear to say it, so she asked herself if it was possible to go back to Kumho. In her opinion, returning to Kumho by herself was relatively a more suitable path.

The matter has been dragged on until now, and any ending can be thought of. Liu Minghui probably doesn't want to turn back, and he is not the only one who thinks this way. Kumho is so prosperous, it is not a shameful thing to change jobs.

Facing Chen Jing's sincere eyes and suggestions, Liu Minghui did not hide anything, and said: Kumho has newly established a sales company and needs people. Some people will choose to go back, and they will accept them. I have also contacted Yang Yun. It may be because I left Aida last year when I had a greater influence, no one can make up their minds, if you want to ask that person for instructions, send an email, and only two words are sent back: read...

Chen Jing didn't know how to comfort Liu Minghui anymore.

Chen Jing picked up the folder and asked, Would you like to take it back to the office to have a look? You can reply to me in two days.

Liu Minghui wondered how low a salary he could accept, 200,000, 100,000? Sighing, let's keep a little dignity, and said: I plan to finish the work at hand and go to Guangdong. A classmate opened an electronics factory there, and I'm considering starting a business together...

That's fine, if you need help, please let me know. Chen Jing really couldn't bear to hand the folder to Liu Minghui.

Chen Jing spent half a day talking with the group of people who followed Liu Minghui to Kewangdi. Four people will return to Kumho. It seems that Kumho has kept the good work records of these four people, and only one person chooses to stay. Accepting the new salary standard given by Ke Wang, the other four chose to leave Ke Wang with Liu Minghui. Indeed, it is very difficult for people to accept that the annual salary suddenly drops to one-fifth, one-sixth or even lower than the original level. Those who chose to stay in Kumho at the beginning, although they couldn't all become prosperous all at once, were enough to make their peers envious.

For Chen Jing, the headaches were far more than these.

Kewang collected up to 200 million funds from dealers in the form of confiscation. This fund supports Kewang’s current daily operations. Since the news of Kewang’s possible huge losses this year was revealed to the media, those dealers began to worry about them. Security deposit is at stake.

In the past year, Kewang invested almost 200 million yuan in fixed assets; almost half of Kewang's assets are in the brand of Kewang.

The value of the brand needs continuous market investment to maintain, and the fixed assets will continue to depreciate with the extension of the number of years.

This year's losses are unavoidable. The key is how to operate next year to reverse the current disadvantages, but before doing so, we must maintain the confidence of dealers and the market in Kewang.

As long as Kewang changes the current overly radical business thinking, significantly reduces the amount of investment in marketing, and adopts some safe market competition strategies, it will not be difficult to continue to produce in the disc player industry. In the past half a year, Kewang has been willing to invest in research and development, and its production cost control is better than that of other disc player manufacturers. The key is that after the profit of the stand-alone machine is rapidly diluted, the loss caused by marketing costs is too large. This is what caused Kewang’s huge loss this year. direct cause.

Aida Electronics' disc player business is twice the size of Kewang, but their domestic marketing investment this year is even one-third lower than Kewang's...

Of course, it is not easy to reverse it.

Formulate a new market operation policy and continuously strengthen cost control.

The capital structure supported by the deposit is extremely unbalanced. Once dealers withdraw their deposits from Kewang on a large scale, Kewang will be in trouble due to a serious lack of liquidity to maintain normal production.

It is imperative to find a stable source of funds to improve Kewang's financial structure.

Unfortunately, it is impossible for several major shareholders to continue to inject new funds into Kewang. Kewang's huge losses this year are inevitable, and it is difficult to find new capital injections, and it is also very difficult to obtain new capital injections from banks.

Chen Jing sat quietly in the office, not knowing how to get rid of the predicament in front of her, thinking in her heart, if it was him, how would she face the current predicament? Or let Ke Wang procrastinate like this, and focus on Ke Wang Gao Ke?