Chapter 674

These days, Xie Jiannan feels bad. The economic situation in Asia deteriorated sharply in the middle of the year. There are only two months left. No one can turn the tide. Kewang's huge loss this year is a certainty and irreversible fact. Everyone has a clear understanding of it, but no one is in a good mood to publicize it to the news media.

Around the beginning of November every year, CCTV Biao Wang enterprise inevitably becomes the object of many multimedia reports.

Generally speaking, it is difficult for the media to obtain accurate data. They usually customize some data according to the needs of publicity. For example, if the profit prospect is not optimistic enough, they only focus on the publicity of revenue data.

At the beginning of November, IDA electronics released the operating data of the third quarter and made a detailed forecast of the financial situation of the fourth quarter. In other words, the situation of the disc player market is exposed to the public. Kewang's family can't hide it if they want to. A more professional media can infer Kewang's financial situation as of the end of October this year from the operation data of Aida electronics and the disc player market monitoring sales data released by the electronics department.

The profitability of Aida electronics from January to April is still amazing, with a monthly net profit of 80 million, while Kewang's production and sales volume reached the breakeven point by early April, with a slight surplus in April.

At the beginning of May, Aida Electronics was successfully listed in the backdoor. The financial data were incorporated into the listed company. After deducting the profits extracted from the mainland market to Jinhu, it was incorporated into the revenue in the urban area of Southeast Asia. The net profit of Aida electronics's disc player business in the second quarter remained at a high level of HK $220 million, which was also the main financial support for Aida electronics's impact on the market value of 10 billion at that time.

The second quarter was also Kewang's most relaxed and pleasant time. The domestic sales data increased steadily, the performance of overseas companies also continued to make breakthroughs, and the profit attributable to Kewang's headquarters was nearly 100 million, making up for most of the deficit caused by the huge marketing cost in the first quarter.

If such a good situation can be maintained, Xie Jiannan's personal business life can be regarded as adding brilliance even if he can't compete with IDA.

The situation has collapsed abruptly since the beginning of the third quarter.

In early July, the financial storm suddenly hit the whole territory of Southeast Asia. There were few omens. It was so fast that people were caught off guard.

Aida electronics can't even be alone. The net profit in the Southeast Asian market dropped sharply from HK $40 million in the second quarter to less than HK $4 million; The pressure from the Southeast Asian market was transmitted back to China, resulting in increased competitive pressure in the domestic market and a sharp decline in single machine profits.

Relying on the cost advantage formed in advance, the net profit of disc 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. At this time, xiangxuehai was in the stage of vigorous construction and large amount of money distribution, and was unable to contribute too much profit to Aida electronics.

With the spread of the Asian financial crisis, the market value of Aida electronics also fell from a peak of nearly 12 billion to about 5 billion.

The disc player market in the fourth quarter is still not optimistic, but while publishing two types of data, IDA electronics claimed to use reserve funds to buy back the company's shares. Before selling the disc player business, Jinhu Electronic Technology Research Institute also announced that it would use a certain amount of funds to acquire the shares of Ida electronics in the open market, so as to maintain the current stock price from falling sharply.

During the backdoor listing, Aida electronics obtained an additional reserve fund of HK $600 million. Coupled with the profits attributable to the listed company in two quarters and the previous capital surplus, Aida electronics could use up to HK $1 billion, and could buy back up to 20% of its shares from the market. The key to maintaining the stock price is to boost the confidence of investors. There is no need to really use much capital. It is enough to maintain the stock price at the current level only by repurchasing the 200-300 million capital originally planned to pay dividends.

Yuexiu holdings doesn't care about less than 100 million dividend funds at this time. Allowing Aida electronics to repurchase the dividend funds can maintain the trust of Hong Kong investors in Yuexiu holdings and moderately enhance the control over Aida electronics.

The holdings increase statement of Jinhu Electronic Technology Research Institute is to take advantage of the low price to strengthen its control over IDA electronics. The second is that Jinhu's backdoor listing took away a huge amount of cash when the stock market was high. At this time, we should also make some representations to show a responsible attitude.

Of course, Jinhu should take some responsibility. At the time of backdoor listing, the quarterly profit of Aida Electronics was as high as 250 million. After backdoor listing, the profit scale immediately shrank to one-third of the level, which let Jinhu take away 4 billion at the best time. Everyone should praise Jinhu's shit luck.

Most importantly, 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 financial turmoil in Hong Kong, should also report some good news to boost morale. Of course, IDA electronics can't just report bad news without good news.

As the leader of the disc player industry, Aida electronics is so "desolate", and Kewang's situation can be known.

Due to the difference in manufacturing costs, IDA electronics could maintain a meager net profit in Southeast Asia in the third quarter. Kewang subsidized nearly 30 million to the Southeast Asian market in the third quarter, not counting the previous losses of overseas companies. The most frustrating thing is that the domestic market pressure has increased sharply and the single machine profit has continued to decline. Kewang can still ensure a certain surplus in July. In August, it is close to the breakeven point. In September, due to the price offensive launched by Xinyuan electric appliance, Kewang's inventory loss alone was close to more than 30 million, and the single machine profit has fallen below the breakeven point, The annual loss is likely to exceed 150 million, not counting the losses borne by overseas companies.

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

In sharp contrast to Kewang, Xinyuan electric appliance is alive and kicking.

Xinyuan Electric has never regarded IDA electronics as the goal of competition. It is precisely in the process of merging several small factories into Xinyuan electric that it obtained the strong support of Jinhu, the behind the scenes controller of IDA electronics, almost in all aspects of component supply, technology and business support.

Only at the beginning of the year, Xinyuan electric unexpectedly obtained one of the seven places from Jinhu. Therefore, it blackmailed nearly 10 million fees and test equipment from Kewang.

Xinyuan electric did not rashly start the marketing storm strategy, but steadily promoted on the basis of integrating the resources of several original small factories. They did not even have time to expand to emerging markets in Southeast Asia. The financial storm had already occurred, so they did not need to bear the losses in Southeast Asia caused by the financial storm.

At the beginning of the year, the disc drive production and sales volume of Xinyuan electric appliance was even less than a quarter of that of Kewang. By the middle of the year, it was still only a third of that of Kewang. However, they strictly controlled the marketing and management costs, seized the most profitable opportunity of the disc drive industry, and accumulated certain funds for subsequent development.

In the third quarter, the advantages of cost control suddenly enlarged. When Kewang struggled on the breakeven line, Xinyuan electric continued to increase its publicity to the market.

At the beginning of September, Xinyuan electric appliance obtained the price reduction support from Jinhu half a month in advance, and was able to set off a storm of price reduction and promotion in the terminal market. In terms of production and sales, it suddenly narrowed the gap with Kewang, close to half of Kewang's production and sales, and became the sixth enterprise in the disc player market.

The top six disc drive enterprises have carved up nearly 90% of the disc drive market, and Aida electronics is still high. Although the booking target of Aida Electronics was only 30% at the beginning of the year, it occupied 32% of the domestic market by the end of October. Xinke electronics ranked second, Kewang ranked third, the domestic market accounted for 13%, step by step, aido ranked fourth and fifth, and Xinyuan electric ranked sixth, accounting for 7% of the market share.

In addition to the sales data outside Shanghai, Kewang's total market share exceeds that of Xinke electronics, but what's the use of this? Xie Jiannan sat in his office and looked painfully at the prediction data reported by the media.

At this time, Jinhu entrusted a part of the single disc drive of Aida electronics to Xinyuan Electric Co., Ltd.

Although the OEM cost is low, and each machine has a gross profit of 20 or 30 yuan, the production and sales volume of single disc players of IDA electronics is very large. There are nearly 200000 units sold every month in the domestic market alone. Don't expect to be compared with Jinhu. An electronic enterprise has a profit of 23 million per month. What's not satisfied?

If Jinhu can entrust this part of OEM business to Kewang, Xie Jiannan doubts whether he has the courage to refuse. Although the three companies jointly snipe Jincheng Real Estate and get some compensation - of course, it is unknown when the income of Jincheng Real estate will be ready, the financial pressure of Kewang is real.

The knock on the door interrupted Xie Jiannan's thinking, and Chen Jing's charming figure was reflected outside the frosted glass door. Kewang high tech, which is controlled by Daya group, with Chen Jing and Yu Ping as the chairman and President respectively, has been involved in the mobile phone OEM and underwriting business since October, relying on the components and technical support of Jinhu.

Based on Xie's inherent thinking, it is difficult to understand why Jinhu has been so diligent in supporting Xinyuan electric appliance and disc player spare parts enterprises - the economic crisis and financial storm have affected the domestic disc player market, but Jinhu has never relied on its strong position in the disc player market to reduce the profit space of spare parts enterprises. At this time, Jinhu has come to support Kewang high tech, It can be seen that Jinhu is changing its role as a component supplier, but what is the goal of Jinhu?

Chen Jing walks in with the materials. Looking at Xie Jiannan, who has been haggard for media reports these days, she hands him the materials. When she sees the newspaper on the table, she doesn't say anything.

Not to mention that the annual net profit of Aida electronics may be as high as 700 million - not counting Jinhu's profit on disc drive components, Xinyuan Electric will make more than 100 million profits this year, while Kewang will face a huge loss of nearly 150 million. Why do he feel embarrassed when he was young and was crowned with the aura of business genius?

Put the blame on the financial storm? If it were not for the sudden attack of the financial storm, it would not be difficult for Kewang to achieve the profit target of $200.3 billion, but the media unanimously accused Kewang's approximate gambling marketing strategy and leap forward enterprise development policy as the fundamental reason for Kewang's huge profit this year.

"Kewang has become the object of ridicule by the media and the chip in their hands. They are going to step on our Kewang to put pressure on CCTV. Will they give a big punch at CCTV's advertising and investment promotion conference this year?" Xie Jiannan looked up at Chen Jing and smiled bitterly.

A year ago, Kewang unreasonably took the title of the 1997 CCTV Standard King into his arms at the cost of 350 million yuan, which became the target of the media accusing Kewang of gambling marketing strategy.

"Maybe..." Chen Jing replied. The relationship with Xie Jiannan has weakened, but the work still needs to be maintained. She can't leave at this time. Both xiangxuehai and Aida group are affiliated enterprises of Jinhu. It can be predicted that they are likely to be in the limelight at this year's CCTV advertising and investment promotion conference. Prior to this, attacking the last benchmarking king by local media or central ministries and commissions that are inconsistent with CCTV will undoubtedly greatly hit the enthusiasm of participating enterprises to compete for the benchmarking king this year.

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

The sales director with an annual salary of 800000 is too extravagant for Kewang electric appliance.

"I'd better talk to him..." Chen Jing knows that it's cruel to discuss this issue with Liu Minghui, but after all, she is the vice president in charge of marketing and can't casually push her work on others. It's not just Liu Minghui's problem. Those people who joined Kewang's marketing department with Liu Minghui last year have a headache. Kewang will continue to go on, maintain the disc player business and maintain Kewang's brand. It is necessary to reflect and change the radical and gambling business strategy.

"OK, you can talk to them. If you can't get together, you can get together and break up." when Xie Jiannan said this, he felt like a hero in the twilight.

Liu Minghui received a call from Chen Jingtong to her office. He was a little uneasy. It was almost time for the CCTV advertising and investment promotion conference next year. He was not concerned about Kewang's marketing plan for the next year, but last year, on the eve of the CCTV advertising and investment promotion conference, he and nine other salespeople changed jobs from IDA to Kewang.

The one-year Employment period is coming to an end. Until now, Kewang didn't talk to him or anyone else about renewal.

Liu Minghui can also imagine what the outcome will be.

Push open the door of Chen Jing's office and watch Chen Jing pick up and put on her glasses at the corner of the table. She has a beautiful and dignified image of a professional girl. The middle-level of the company all know that she and Xie Jiannan have fallen into a cold war. Investigate the root cause, which is caused by the interest dispute between Chint Group and Daya group.

"You sit..." Chen Jing asked Liu Minghui to sit down and sip her mouth. It was difficult to talk about the topic.

"Mr. Chen came to me to talk about my work arrangement for the next year?" Liu Minghui started the conversation first.

"Oh..." Chen Jing took a folder on her desk and opened it. She wanted to stop talking. She closed the folder and pressed it under her palm. She leaned forward and looked at Liu Minghui. "Is it possible for you to go back to Jinhu?"

Liu Minghui knew what the answer was under the folder. Even Chen Jing couldn't bear to say it, so he asked if it was possible to go back to Jinhu. In her opinion, it was a more appropriate way to go back to Jinhu.

Until now, we can think of any ending. Liu Minghui doesn't want to go back, and he's not the only one. Jinhu is so prosperous that job hopping is not a shameful thing.

Facing Chen Jing's sincere eyes and suggestions, Liu Minghui did not hide anything and said: "Jinhu has set up a new sales company, which needs people. Some people will choose to go back and accept it there. I have also contacted Yang Yun. It may be that when I left Aida last year, no one can make up his mind. If you want to ask for instructions from that person, there are only two words:" read "..."

Chen Jing doesn'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? You can reply to me in two days."

Liu Minghui thought to himself what a low salary he could accept, 200000, 100000? Sighed and kept a little dignity. He said, "I'm going to go to Guangdong after the work at hand. Some students opened an electronics factory there and consider starting a business together..."

"That's OK. If you need any help, just say it." Chen Jing really didn't have the heart to hand the folder to Liu Minghui.

Chen Jing spent half a day talking with the group of people who came to Kewang with Liu Minghui. Four people will return to Jinhu again. It seems that Jinhu retains the good work records of these four people. Only one person chose to stay and accept the new salary standard given by Kewang. The other four chose to leave Kewang with Liu Minghui. Indeed, it is difficult for people to accept that the annual salary was suddenly reduced to only The original level of one-fifth, one-sixth or even lower, and the people who chose to stay in Jinhu at the beginning, although they can't prosper all at once, they are enough to be envied by their peers.

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

Kewang collects up to 200 million funds from dealers in the form of deposit collection, which supports Kewang's current daily operation. Since the news that Kewang may suffer huge losses this year was disclosed to the media, those dealers began to worry about the safety of their deposit.

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

The value of the brand needs continuous market investment to maintain, and fixed assets will be continuously impaired with the extension of service life.

This year's loss is unavoidable. The key is how to operate next year to reverse the current disadvantage, but before that, we must first maintain the confidence of dealers and the market in Kewang.

As long as Kewang changes the current overly radical business ideas, greatly reduces the excess investment in market publicity, and adopts some stable market competition strategies, it is still not difficult to continue production in the disc player industry. In the past half a year, Kewang has been willing to invest in R & D, and the production cost control is better than other disc player manufacturers. The key is the rapid dilution of single machine profits After, the loss caused by marketing cost is too large, which is the direct reason for Kewang's huge loss this year.

The scale of the CD player business of Aida electronics is twice that of Kewang, but their investment in domestic market promotion this year is even one-third lower than that of Kewang

Of course, it's not easy to turn around.

Formulate new market operation policies and constantly strengthen cost control.

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

It is urgent to find a stable source of funds to improve Kewang's capital structure.

Unfortunately, it is impossible for several major shareholders to continue to inject new funds into Kewang. Kewang's huge losses this year can not be avoided, it is difficult to find new capital injection, and it is also very difficult to obtain bank loans.

Chen Jing sits quietly in the office. She doesn't know how to get rid of the current dilemma. She thinks, if it were him, how would she face the current dilemma? Or let Kewang delay so much and focus on Kewang high tech?

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