Chapter 2875 The Development of Xiaomiao Electronics

Since May 2009, the price of DreamSnow2 in the mainland market was raised to 2199 for 16GB and 2599 for 32GB, Fairy Company has been criticized by many people.

They felt that Xiao Qi had already earned enough money, but he still wanted to raise the price, which would reduce the discounts for the people of the country, which was really unkind.

Fairy Company didn't have a special explanation for this. It wasn't until the six major electronic manufacturers in Huaguo and Xiaomi Electronics launched domestic mobile phones that everyone suddenly realized that Xiao Qi was making way for them.

Think about it, if the price of Huaguo's domestic mobile phone and Fairy's DreamSnow2 collide, what will it look like?

I dare not say that none of them can be sold, but it is definitely not the current one that is selling well, and it is still selling well in Southeast Asia.

Although it seems that they can't reach the sales volume of 50 million units in the first year, but the sales volume in half a year is almost more than 13 million units, which can be regarded as fulfilling their expectations.

For this reason, Fairy Company also specifically lowered the patent contracts with their six major mobile phone manufacturers, and did not charge patent fees based on a total of 300 million units, which saved them a lot of expenses.

The remaining Xiaomiao Electronics has a much easier life than these six big companies, because they are themselves subsidiaries of Fairy Company-although Yu Lihong doesn't think so, but his employees are all for Xiao Qi is proud of controlling Xiaomiao Electronics, which makes Yu Lihong feel a little uncomfortable.

Yes, now that Xiaomiao Electronics is developing so well, the technology, raw materials and parts, and even the sales network provided by Xiannv Company are very important, but without Yu Lihong's sudden call for technical personnel to develop and manage the company's affairs, Xiaomiao Electronics Can the company grow to where it is today?

You know, in the past five months or so, the sales volume of Xiaomiao Electronics has directly exceeded 18 million units, ranking second in mainland China, even stronger than Huawei and Lenovo!

And Xiaomiao Electronics has a high degree of praise.

Because of the strong technical force, the selected parts suppliers are also very powerful. With the quality control system of Fairy Company, the repair rate of Xiaomiao Electronics is less than 1%, which is much higher than the other 3%.

Encouraged by such encouragement, Xiaomiao Electronics has actively started to develop Xiaomiao Mobile 2. It is expected to be listed again by February next year at the latest to complete the update.

Of course they also have many shortcomings.

For example, Fairy Company, which ranks first, has controlled the repair rate at 0.002%, followed by Apple's repair rate is only 0.007%, and Samsung is 0.01%. The quality of these big companies is indeed very good, and the praise is also very high. If Xiaomiao Electronics wants to learn from them, it must strengthen its product quality control again.

In fact, Yu Lihong knows the weakness of Xiaomiao Electronics, that is, in order to control costs, the components they choose are relatively cheap, including LCD screens, CPUs, etc., which are not as good as DreamSnow2.

But the price of DreamSnow2 is not much more expensive than that of Xiaomiao mobile phone, but why is the profit margin so high?

very simple. Because they adopt a large number of purchases, suppliers are willing to make small profits but sell more, and more importantly, many technical patents are owned by Fairy Company. After excluding this part of the cost, the cost can be reduced by more than 30% at once. This is something that Xiaomiao Electronics cannot do.

Although Xiaomiao Electronics is a 60% subsidiary of Xiao Qi Holdings, Yu Lihong has to do it alone, so Xiannv Company is only responsible for financial audits and other aspects. Xiaomiao Electronics is still responsible for its own profits and losses in operations, including the procurement of parts. This is also the case with the payment of various patent fees.

What they spend more than Fairy Company is not only the patent licensing of hardware costs, but also the patent fees of various software technologies. This part is more than 20% higher than that of Xiannv Company. Adding the two together, we can understand why DreamSnow2 has a high profit margin, while Xiaomiao Electronics only has a gross profit margin of about 15%.

Of course, although the gross profit margin is very low now, this part is only the beginning. As the price of parts and components decreases and the production and sales increase in the future, the gross profit margin will naturally continue to increase.

Even so, Xiaomiao’s gross profit margin has reached RMB 120 million in five months, and its net profit is about RMB 70 million.

Because there was no repayment of the loan, Yu Lihong applied for it with Xiao Qi, and all the 70 million was rewarded to the company's employees, and he himself took 3 million, which is considered an average level.

Xiao Qi doesn't care that Li Hongfa's bonus is all the profits so far. Xiaomiao Electronics has a promising future, and it has achieved preliminary results at this stage. It should be rewarded and encouraged.

What's more, the amount of money he invested is a very small part, and it's not yet his turn to rely on Xiaomiao Electronics to make money.

In Xiao Qi's view, the most important thing for Xiaomiao Electronics now is to immerse themselves in development, and after encouragement, everyone who is motivated can develop better.

But what made Yu Lihong depressed was that when he went to the toilet, he heard everyone talking about it, and Xiao Qi was the one who was thanked by everyone, thinking that this reward was given by Xiao Qi, who has always been generous.

It's just that Yu Lihong doesn't have so much time to be depressed, he has more important things to do now.

Yu Lihong's idols are Xiao Qi and Qiao Gangzhu, but in terms of actual actions, Yu Lihong's idol is more inclined to Qiao Gangzhu, because he is outgoing and likes to express himself, not like Xiao Qi. Like Qi, he is behind the scenes everywhere, and he doesn't want to deal with the outside media at all.

Therefore, Yu Lihong specially allocated part of the funds of Xiaomiao Electronics to do marketing for himself, and wanted to make himself a pioneer of the new generation of Internet smart phones.

For more than half a year, Yu Lihong has been everywhere in the propaganda on the Internet, newspapers and magazines, as if he has become the leader of the new generation of smart electronics. Those who don't know think that he is stronger than Xiao Qi.

Under the packaging of a public relations company, Yu Lihong gave speeches everywhere, promoting Xiaomiao Electronics as a brand specially created for the Internet. It claims to be the most closely connected with the Internet, and it is a brand specially created for young people. Use the least profit to serve everyone.

Not to mention, the Xiaomiao mobile phone of Xiaomiao Electronics is at least very beautiful in appearance. In this regard, Yu Lihong also learned from Xiao Qi and Qiao Gangzhu. Coupled with the right price and the publicity of Internet brands, many young people are willing to try this phone to see how it is.

So Xiaomiao mobile phone is a smart phone supported by Fairy Lab technology. Compared with the mobile phones of the other six mobile phone manufacturers, it is indeed very good in terms of running speed and battery life. In addition, Yu Lihong used his demagogic speech to make everyone admire him and Xiaomiao mobile phone , naturally won everyone's love.

Compared with the Xiaomi mobile phone in the previous life, the backing behind the Xiaomiao mobile phone is even stronger. It is definitely not comparable to Rebs when he started his business.

Coupled with the continuous support of Xiannv Company, Xiaomiao mobile phone has been on the right path from the beginning, and its development is naturally much faster than that of Xiaomi Company.

Xiao Qi spent 300 million yuan to obtain 60% of the shares of Xiaomiao Electronics.

But it doesn't mean that he only paid so much. Fairy's technical support is a very important item. Then, in terms of parts and components for Xiaomiao mobile phone, the parts supplier chosen not only provides the best source of goods and the most favorable price, In terms of payment, it can be settled after 3 months; in terms of foundries, Yinhuang Electronics and Star Electronics were selected. Excellent workmanship and low cost... These are all for Xiao Qi's sake.

Otherwise, if someone from another company comes, do you think the price will increase by more than 20%?

Therefore, the development of Xiaomiao Electronics is inseparable from Xiao Qi's support.

Even the increase in its valuation has the bonus points of "Xiao Qi Investment".

Bank of America Merrill Lynch, which has recovered a little bit of vitality, has offered a valuation of 5 billion yuan for Xiaomiao Electronics. If it develops at the current speed, it will definitely exceed 50 billion yuan in less than three years. !

Bank of America Merrill Lynch also began to actively contact Xiaomiao Electronics. It is hoped that it can be listed in the United States, or at least listed in Hong Kong.

But Yu Lihong refused without hesitation.

When he told his friends in private, he felt that Bank of America Merrill Lynch’s valuation of Xiaomiao Electronics was too low, and the IPO valuation was calculated based on 10-15 times the annual turnover. Now Xiaomiao Electronics is at least about 20 billion yuan!

And Yu Lihong also said that unless Xiaomiao Electronics achieves a valuation of more than 30 billion US dollars, he will not consider any listing plan.

Well, although Yu Lihong only owns 28% of the shares, which is less than half of Xiao Qi's, Xiao Qi doesn't care about Xiaomiao Electronics at all. Therefore, he and the management have the final say on everything.

At the beginning, Yu Lihong was still a little worried that Xiao Qi would take the opportunity to control his company, but for more than a year, he was the only one who asked Xiao Qi for help, and Xiao Qi never ordered him, which made Yu Lihong believe that Xiao Qi Qi does not have any intention of annexing Xiaomiao Electronics.

Of course, if you think about it, it's a little sad. Xiaomiao Electronics is far worse than those companies that Fairy Company has annexed.

Yu Lihong did not have the extravagant hope of being equal to Xiao Qi through Xiao Miao Electronics. Xiao Qi's assets of more than 700 billion US dollars, even if he did Xiao Miao Electronics well, it would take at least a dozen or twenty to be comparable to Xiao Qi's. property.

What's more, Xiao Qi's real property is more than that. Yu Lihong knows that the land of Xiaoyao Logistics is worth at least 300 billion U.S. dollars. Forbes and Fu Run's shameless rankings that collect money are simply irresponsible row property!

Therefore, Yu Lihong's goal is to become the most powerful professional manager like Gangzhu Qiao. This is already the best honor!

Doing the math now, Xiaomiao Electronics' revenue this year should be more than 1.7 billion yuan.

After stabilizing the consumer market, Xiaomiao Electronics not only needs to make efforts in mainland China, but also needs to continue to promote in Southeast Asia and the Indochina Peninsula.

I would rather use the money earned in the mainland market to subsidize the markets of these countries, and I want to make the name of Xiaomiao mobile phone famous.

It would be great if Xiaoyao Mall can be opened all over Asia!

Then all the marketing efforts can be saved!

Yu Lihong sighed again.

Although this is relying on Fairy Company, but who called Xiaoyao Mall's channels so good?

In the Indian market, Xiaomiao mobile phones are extremely popular, contributing almost one-third of their monthly sales of more than 3 million!

Thinking that Xiao Qi has such a trump card channel, Yu Lihong sighed again, why can't he be so good? (~^~)