Reborn Tycoon Rise

Chapter 185 LCD Price Increase

Just when Xu Zhi was about to answer, Li Jiacheng's voice came from next to him: "Speaking of cooperation, our Yangtze River Estate has also cooperated with Xu Sheng several times. My Yangtze River Real Estate construction team is also experienced, and HSBC's Chinese Bank , Haifu Center are all masterpieces of my construction company. If Xu Sheng wants to find someone to build the building, the price will definitely be favorable!"

When Bao Fuda heard this voice, he immediately became furious. The current competition between Real Estate and Bao Yugang for Wharf is all because of this person!

Looking back, I saw Chen Zengxi, Li Shauji and Li Jiacheng standing behind them.

Bao Fuda said: "Xu Sheng, you have to thank these people. They made you spend tens of millions of Hong Kong dollars in vain."

Li Jiacheng smiled and said: "It's just business competition. Does bidding for a piece of land make everyone become enemies?"

"There are no enemies in shopping malls, only interests!" Li Zhaoji said from the side: "Xu Sheng, your company is developing such a large office building. My construction company can also participate in cooperation in this regard!"

Xu Zhidao: "Okay, it's too early to talk about this matter now. When I complete the legal procedures for this land, the bidding will naturally be open. If you are interested, you can participate in our company's future project bidding!"

Li Jiacheng and others smiled and said: "No problem, we will definitely participate when the time comes!"

In this era of skyrocketing housing prices in Hong Kong and the accumulation of capital, there is a saying: Those who are rich are not as good as those who gather money.

People who really use their own funds to develop and start a business are generally stupid. The richer they are, the more they owe money. For example, Chen Songqing, the number one fraudster in Hong Kong, if he hadn't encountered a real estate crisis, he might have become one of the top ten scammers in Hong Kong. One of the richest men.

The funds for this land auction did not come from Xu Zhi's own company funds, but from the loan line given to Xu Zhi by Standard Chartered Bank.

Since the last time Shen Bi refused to sell Hutchison Whampoa shares, Xu Zhi ordered all the company's main funds in Xiangjiang to go to Standard Chartered Bank. Although Midea's core profits were kept in overseas tax havens, the flow of only part of Xiangjiang shocked Standard Chartered. Bank executives said that the funds for this land auction, including subsequent construction costs, will be loaned from Standard Chartered Bank.

According to the agreement before the auction, the winning bidder needs to remit funds to the account of Xiangjiang Metro Company within half a month after the auction. This period of time is enough for Evergrande Group to communicate with the bank.

The land has been obtained, and the next step is to invite bids for the design of the building. If it is owned by oneself or used as the headquarters of one's own company in the future, the design fee for the bidding will definitely be high. However, Xu Zhi's purpose is to achieve the lowest house price in two years. Gaofeng was all sold for cash, so naturally he didn't care about the design. After allowing HK$5 million for the design of the entire building, the bidding was assigned to the vice president below. Xu Zhi only needed to wait until the future model was released and Xu Zhi agreed. !

One week later, funds from Standard Chartered Bank were directly transferred to the account of the Xiangjiang Metro Company. Evergrande also signed a contract with the Metro Company and filed it with the Hong Kong government. Evergrande Group’s first large-scale real estate project is about to begin.

However, Xu Zhi has already focused on the electronics industry. It has been more than 2 months since the release of Gameboy, and the total sales have exceeded 2 million units. Due to the serious inversion between production capacity and demand, many young people in some areas of Japan have I queued up all night just to get a handheld device the next morning.

He Guoyuan walked into Xu Zhi's office worriedly and said, "Is there a problem with Gameboy?"

"What's wrong?" Xu Zhi couldn't help but asked, "Is there a quality problem? Or has it been copied?"

He Guoyuan shook his head and said: "No, Sharp just sent a fax, saying that because the price of LCD raw materials has increased recently, the company's costs have increased, and they require a price increase for the LCD screens sold to us!"

"Price increase? Don't we have a contract?" Xu Zhi frowned and said, "How much are they going to increase?"

"In terms of the contract, the first time we signed was for 3 million LCD panels. Now the transaction is almost completed. The current price increase is the second price negotiation." He Guoyuan replied: "The original contract price with us was HK$10 per piece. , now they demand an increase to HK$13!”

"An increase of 3 Hong Kong dollars? This guy has a really big appetite." Xu Zhi frowned and said: "Our profit from a Gameboy is only 1 US dollar. If we agree to his price increase, half of our profits will be gone!"

Gameboy follows the route of small profits but quick turnover. This kind of handheld console is easy for many electronic companies to get started. Therefore, in order to kill competitors, Xu Zhi does not intend to make a lot of money on each machine. He will take the quantity route and occupy the market first. .

However, companies that can do this must have one thing: the cost of the product has been controlled to the lowest level, such as Coca-Cola. But the core problem of Midea Electronics is that the LCD screen is not manufactured by itself, which is a big loophole.

Xu Zhi said: "This kind of LCD screen is not only made by Sharp. Have you consulted companies such as Epson and NEC?"

He Guoyuan said: "After asking, all of them gave the same answer, asking for a price increase."

"All manufacturers together?" Xu Zhi immediately understood and said: "It seems that these Japanese companies are ready to cooperate this time and poach a piece of meat from all LCD demand companies."

He Guoyuan nodded and said: "Yes, with the advent of the electronic technology era, the demand for LCD screens is increasing. Japan's previous low-price sales should be to eliminate American competitors and cultivate the market for LCD screen products. This time Japanese manufacturers just used the excuse of rising raw material prices to immediately raise prices."

In an era when computers had not yet become laptops, the main sales targets of LCDs were electronic calculators, industrial screens, electronic watches and other products. Although these cannot compare with the demand for later generations of smartphones and laptops, the total volume is not small. There are hundreds of millions of LCD watches sold around the world every year. Although the number of Midea Gameboys is far less than the sales of watches, they are also very sensitive to the price of LCD screens because of their large screens.

"The core components are controlled by others. It is actually a matter of time!" Xu Zhi said calmly: "Our company has emerged from many electronics companies relying on creativity, but technology is the core competitiveness, otherwise it will just be a rootless development.

The LCD was actually my mistake. I had thought about this problem before, but I thought there would be no problem in the short term, because after all, so many manufacturers can produce it, and we have many choices. However, I never expected that these Japanese companies would join forces to raise prices. price. "

He Guoyuan said: "Then what should we do now?"

Xu Zhi asked: "You are the general manager of the company, what do you think should be done?"

He Guoyuan replied: "Gameboy is already our company's flagship product. Although the profit is far less than that of arcade machines, once we solve the technical problem of replacing game cartridges and combine it with some good quality games, it will be enough to monopolize the market, so the LCD segment will continue to From a strategic perspective, we must be involved, and I think we should build our own LCD factory!”

Xu Zhi nodded and smiled: "Yes, but the LCD industry is more complicated than the motherboard. It's okay to build a motherboard factory here in Xiangjiang, but there are almost no professionals in the LCD field. How are you going to solve it?"

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