Rebirth of the Official Business Route

These days, Xie Jiannan feels uncomfortable. The Asian economic situation suddenly deteriorated in the middle of the year. With only two months left, no one can turn the tide. The huge loss of Kewang this year is a firm and irreversible fact. Everyone has a clear understanding of this, but it has been publicized by the news media with great fanfare. In exchange, no one is in a good mood.

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

Generally speaking, it is difficult for the media to obtain accurate data, and it is usually based on the needs of publicity to tailor some data for publicity. For example, if the profit prospects are not optimistic, then only focus on publicizing the revenue data. Fastest update of novel chapters

At the beginning of November, Aida Electronics announced the operating data for the third quarter and made detailed forecasts on the financial status of the fourth quarter. That is to say, the situation of the disc player market is exposed to the public in this way. It is not something that the Kings family wants to cover up. A little professional media can obtain the operating data of Aida Electronics and the discs published by the Electronics Department. The sales data of the machine market red test speculates the financial situation of Kewang 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. As of the beginning of April, the production and sales volume of Kewang reached the break-even point, with a slight surplus in April. "Fiction" novel chapters are updated fastest

At the beginning of May, Aida Electronics was successfully listed on the backdoor. Financial data was merged into the listed company. After deducting the profits drawn from the mainland market to Kumho, it was merged into the revenue of the urban area of ​​Southeast Asia, and the net profit of the disc player business of Aida Electronics in the second quarter. It still maintains a high of 220 million Hong Kong dollars, which is also the total financial support for Aida Electronics' market value hitting tens of billions of dollars during that time.

The second quarter was also the easiest and most enjoyable period for Kewang. Domestic sales data rose steadily, and overseas company performance continued to be obtained. The profit attributable to Kewang headquarters was close, which made up for the huge marketing costs in the first quarter. Most of the deficits.

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 suddenly collapsed from the beginning of the third quarter.

At the beginning of July, the financial turmoil swept across Southeast Asia suddenly. There were hardly many warnings, and it was so thunderous that people were caught off guard.

Aida Electronics couldn't even stand alone. The net profit of the Southeast Asian market dropped from 40 million Hong Kong dollars in the second quarter to less than 4 million Hong Kong dollars. The pressure of the Southeast Asian market was transmitted back to China, resulting in increased competitive pressure in the domestic market. Single-machine profits have fallen sharply.

Relying on the cost advantage formed earlier, the net profit of the disc player business in the third quarter remained above 100 million Hong Kong dollars, but the overall financial situation was only one-third of that in the second quarter. At the stage of distributing money, 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 Electronic Land has also fallen from a peak of nearly 12 billion to about 5 billion.

The local disc player market in the fourth quarter is not optimistic, but when Aida Electronics announced the two types of data, it announced that it would use reserve funds to repurchase the company’s stock. A large amount of funds will acquire shares of Aida Electronics in the open market to maintain the current stock price from falling sharply.

When backdoor listing. Aida Electronics received an additional HK$600 million in reserve funds, plus two quarters of profit attributable to listed companies and previous capital surpluses. Aida Electronics can use up to one billion Hong Kong dollars, and can purchase up to 20% of the stocks from the market. The key to maintaining the stock price is to boost investors’ confidence. It does not require any real use of funds. Only the two or three billion yuan originally planned for dividends for stock repurchase is enough to maintain the stock price at the current level.

At this time, Yuexiu Holding did not care about the dividends of less than 100 million yuan, and let Aida Electronics repurchase the dividends. It can maintain the trust of Hong Kong investors in Yuexiu Holdings, and it can also moderately strengthen the control of Aida Electronics.

Kumho Electronics Technology Research Institute’s statement of increasing its holdings was to increase its control over Aida Electronics at low prices. Second, Kumho’s backdoor listing took away a huge amount of cash when the stock market was high. At this time, we should also make some expressions and show a responsible attitude.

Of course, Kumho has some responsibilities. At the time of the backdoor listing, Aida Electronics’ quarterly profit was as high as 250 million. After the backdoor listing, the profit scale immediately shrank to one-third of the level. The best time to take away four billion. Anyone who changes will admire Kumho's **** luck.

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

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

Due to the difference in manufacturing costs, Aida Electronics was able to maintain a meager net profit in Southeast Asia in the third quarter. In the third quarter, Kewang subsidized nearly 30 million in the Southeast Asian market, which does not count the previous losses of overseas companies. The most frustrating thing is the sudden increase in the pressure on the domestic market and the continued decline in stand-alone profits. Kewang can guarantee a certain surplus in July. In August, it is a short distance from the break-even point. In September, Xinyuan Electric rushed to move first. With the price offensive, Kewang's inventory loss alone is close to more than 30 million, and the profit of a single machine has fallen below the break-even point. The annual loss is very likely to exceed 150 million. This does not count the losses suffered by overseas companies.

At this time, we are far from seeing any signs of improvement in the economic situation.

In stark contrast to Kewang is Xinyuan Electrical Appliances, which is alive and well. Xinyuan Electric has never regarded Aida Electronics as a competitive target. It was in the process of merging several small factories into Xinyuan Electric that it received strong support from Aida Electronics to control Kumho behind the scenes. All-round support such as business support.

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

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

At the beginning of the year, Xinyuan Electric’s disc player production and sales were even less than a quarter of Kewang’s. By the middle of the year, it was still only one third of Kewang’s. However, they strictly controlled marketing and management costs and seized the disc player industry. The most lucrative profit opportunity has accumulated a certain amount of funds for subsequent exhibitions.

Entering the third quarter. The advantage in cost control was suddenly magnified. While Kewang was struggling to break even, Xinyuan Electric continued to increase its marketing efforts with ease.

At the beginning of September, Xinyuan Electric received Kumho’s price cut support for half a month ahead of schedule. It was able to set off a storm of price reduction promotions in the terminal market first, and suddenly narrowed the gap with Kewang in terms of production and sales, approaching half of Kewang’s production and sales. , Becoming the sixth-ranked enterprise in the disc player market.

The top six disc player companies have divided up 90% of the disc player market, and Aida Electronics is still on the top, although Aida Electronics has only 30% of its target reservations at the beginning of the year. But as of the end of October, it occupied 32% of the domestic market. Shinco Electronics ranked second. Kewang ranked third, with a 13% market share in the domestic market, BBK and Iduo ranked fourth and fifth, and Xinyuan Electric ranked sixth with a 7% market share.

Add sales data in overseas markets. The total market share of Kewangdi is higher than that of Xinke Electronics, but what's the use of this? Xie Jiannan sat in the office, looking painfully at the forecast data reported by the media.

At this moment. Kumho also entrusted part of the single-disc players of Aida Electronics to the foundry of Xinyuan Electric.

Although the cost of foundry is low, each machine has a gross profit of 20 to 30 yuan, the production and sales volume of single-disc machines of Aida Electronics is extremely large. The domestic market alone has sales of nearly 200,000 units per month. On the same level as the lake, an electronics company has a monthly profit of two to three million yuan, what else is not satisfied?

If Kumho can entrust this part of the foundry business to King Ke to do it, Xie Jiannan doubts whether he has the courage to refuse. Although the three jointly attacked Jincheng Real Estate to get some compensation-of course. It is still unknown when Jincheng Real Estate's earnings will be able to show up. But the financial pressure on Kewang is real.

The knock on the door interrupted Xie Jiannan's thoughts, and Chen Jingjiaolao's figure was reflected outside the frosted glass door. Controlling, Chen Jing, and Yu Ping served as the chairman and president, respectively. Dike Wang Gaoke has relied on Kumho's components and technical support to intervene in the underwriting business of mobile phone OEMs since October. It's a pretty good start.

Based on the inherent thinking of the Xie family, it is difficult to understand why Kumho used to support Xinyuan Electric and disc drive parts companies in the past. The economic crisis and financial turmoil have affected the domestic disc drive market, but Kumho has never relied on the disc drive. The strong position of the market reduces the profit margins of spare parts companies. At this time, Kumho has come to support Kewang Hi-Tech. It has been possible to see the trend of Kumho's changing role as a component supplier, but where is Kumho's goal?

Chen Jing walked in with the materials and looked at Xie Jiannan, who had been haggard by media reports these days, and handed him the materials. Seeing the newspaper on the table, she didn't say anything.

Not to mention that the annual net profit of Aida Electronics may be as high as 700 million yuan-this does not calculate the profit of Kumho on the components of the disc drive. Xinyuan Electric's profit this year will exceed 100 million, but Kewang wants Facing a huge loss of nearly 150 million yuan, how can such achievements make him, who has been crowned as a business genius in his youth, feel so embarrassed?

Will the blame be put on the head of the financial turmoil? If it were not for the sudden attack of the financial turmoil, it would not be difficult for Kewang to reach the profit target of 200 to 300 million yuan, but the media consistently accused Kewang's marketing strategy similar to gambling and the leap-forward corporate exhibition policy as the root cause of Kewang's huge amount of money this year. reason.

"King has become the target of media ridicule and has become a bargaining chip in their hands. They are planning to step on us to put pressure on CCTV. This year CCTV's advertising investment conference, they will make a big splash?" Xie Jiannan looked up. Looking at Chen Jing, she smiled bitterly.

A year ago, Kewang irrationally took the title of the CCTV standard king in 1997 at a cost of 350 million yuan, which became the bulls-eye of the media accusing Kewang's gambling marketing strategy.

"Perhaps..." Chen Jing replied. The relationship with Xie Jiannan has been weakened, but the work still has to be maintained, and it is impossible to leave at this time. Both Xiangxuehai and Aida Group are affiliated companies of Kumho, and it is foreseeable that they will most likely show up at this year's CCTV Advertising Investment Conference. Prior to this, by attacking the previous bidding champion by the place that was not compatible with CCTV or by the central ministries and commissions, the enthusiasm of the participating enterprises to compete for the bidding champion this year would undoubtedly be greatly increased.

"Liu Minghui's salary for the next year. Are you talking to him or me?" Xie Jiannan asked.

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

"Let me talk to him..." Chen Jing knows that it is cruel to discuss this issue with Liu Minghui, but after all, she is the vice president in charge of marketing, so she can't just push her internal affairs to others. It's not just Liu Minghui's problem alone, but the group of people who followed Liu Minghui into the King's Marketing Department last year are all headaches. Kewang will continue to go on, and continue to maintain the disc player business and continue to maintain Kewang’s brand. It is necessary to reflect on it. It is necessary to change the radical, gambling-style business strategy.

"Okay, you can talk to them. If you don't agree, you can get together and stay away." When Xie Jiannan said this, he felt like a hero.

Liu Minghui received the phone call from Chen Jing to her office, and was a little nervous. It was almost the time for the CCTV Advertising Investment Conference for one year. He was not concerned about the next year's marketing plan for King Kewang. But last year, on the eve of the CCTV Advertising Investment Conference, he and nine other salespeople switched jobs from Aida to Kewang.

The one-year employment period is coming to an end. Until now, King Kewang did not find him or anyone else to discuss the renewal of employment.

Liu Minghui can also imagine what the outcome will be.

Pushing open the door of Chen Jing's office, watching Chen Jing pick up and put on the glasses on the corner of the table, she looks beautiful and dignified as a professional girl. The middle managers of the company know that she and Xie Jiannan have fallen into a state of cold war. The root cause is the Chint Group. The place where the interest disputes with the Daya Group resulted.

"You sit..." Chen Jing reached out and asked Liu Minghui to sit down. Pursing your mouth. It’s difficult to talk about the topic. "Ms. Chen asked me to talk about my work arrangements for the next year, right?" Liu Minghui forced himself to write, and started the conversation first.

"Oh..." Chen Jing took a folder on the desk in her hand. Turning over and looking at it, he stopped talking, closed the folder and pressed it under the palm of his hand, leaning forward and looking at Liu Minghui, "Is it possible for you to go back to Kumho?"

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

Things have dragged on now, and any ending can be thought of. Liu Minghui doesn't want to turn his head back, and he is not the only one who thinks. Kumho is so fast, and it is not a shameful thing to change a job.

Faced with Chen Jing’s sincere eyes and suggestions, Liu Minghui did not hide anything, saying: “Kumho has established a new sales company and needs people. Some people will choose to go back and they will accept it. I have also contacted Yang Yun. It may be that when I left Aida last year, the influence was relatively large. No one can make any decisions. If you want to ask that person, the email was sent and only two words were sent back: I have read..."

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

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

Liu Minghui wondered how low salary he could accept, two hundred thousand, one hundred thousand? He sighed and kept a little dignity, and said, "I plan to go to Guangdong after the work I am doing. Some of my classmates opened an electronics factory there and are considering starting a business together..."

"That's okay. If you need help, please don't hesitate to say." Chen Jing did not have the heart to pass the folder to Liu Minghui.

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

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

Kewang collects up to 200 million funds from dealers in the form of seizures. 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 have begun to worry about them. The security of the deposit is at stake.

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

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

This year’s losses are unavoidable. The key is how to reverse the current disadvantages next year. But before that, we must maintain the confidence of dealers and the market in Kewang.

As long as Kewang changes the current overly aggressive business thinking, drastically reduces the amount of investment in market promotion, and adopts some prudent market competition strategies, it will not be difficult to continue production in the disc player industry. In the past half a year, Kewang has also been willing to invest in research. The production cost control is better than other disc drive manufacturers. The key is that after the profit of the single machine is rapidly diluted, the loss caused by the marketing cost is too large. This is the cause of the huge loss of Kewang this year. The direct reason is ~www.novelmt.com~ The scale of Aida's disc player business is twice that of Kewang, but their investment in domestic marketing this year is even one-third lower than Kewang...

Of course, it is not easy to reverse it.

Formulate new market operation policies and continuously strengthen cost control.

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

The top priority is to find a stable source of funds to improve the capital structure of Kewang.

Unfortunately, it is impossible for several major shareholders to continue to inject new capital into Kewang. Kewang’s huge losses this year have been unavoidable, it is also difficult to find new capital injections, and it is also very difficult for the bank.

Chen Jing sat quietly in the office, not knowing how to get rid of the current predicament, thinking in her heart, if it were him, how would he face the current predicament? Or should Kewang procrastinate and focus on Kewang Hi-Tech?