Chapter 321 Chen Changliu's Shocking Decision

Two days later, Yangcheng TV News broadcast that Wu Hongliang, the tycoon in charge of economics, brought an inspection delegation to Huazhonghuajia Technology Co., Ltd. The list of personnel also included the deputy mayor in charge of investment promotion, Huadu District Secretary, District Mayor, etc.

The entire inspection lasted for more than an hour, and we also had cordial talks with Chen Changliu, the founder of the flower grower and one of the top ten outstanding young people in the province.

The main purpose is to ask in detail what difficulties the company has in production and operation that need the government's help to solve, as well as the city government's hopes for flower growers, etc.

After receiving the inspection from the Yangcheng City Government, Chen Changliu spent two days non-stop privately inspecting the other two candidate factory construction sites, and then started negotiations with the government departments.

A week later, Ke Meng, assistant general manager of Flower Planter, signed a Gigafactory settlement agreement with Huadong Town, Huadu District, Yangcheng City on behalf of Flower Planter.

Huadong Town has just completed the construction of three roads and one leveling, totaling 1,500 acres of industrial land, all of which were sold to Zhonghuajia Technology Co., Ltd. at a price of 100,000 per mu.

Of course, there are also a lot of other preferential policies such as taxation and bank loan coordination, which are not much different from the preferential policies received by foreign businessmen.

The super factory of Zhonghuajia Technology Co., Ltd. will be located in Huadong Town. The factory will be divided into three areas for construction. After the third phase is put into use, it will be able to accommodate up to 40,000 workers.

There is a large piece of land in East China Town not far from the flower grower's headquarters, where senior executives such as Chen Changliu, Ke Meng, Zhou Liming, Wu Bo, Liu Yang, and Zhao Na are all present.

Chen Changliu looked at the 1,500 acres of land in front of him, exuding blazing ambition. He waved his hand, pointed at the 1,500 acres of land in front of him and said:

"Everyone, the 1,500 acres of land in front of us will soon be built into a super factory for our flower growers. No one can stop the rise of our flower growers.

In the next 20 years, if we cannot build flower growers into leaders in the domestic science and technology field and fail to contribute to the country's science and technology construction in this era of rapid economic development, we will be ashamed of this era.

I want everyone in the country to give a thumbs up when they mention our flower growers, and make all college graduates proud to work in flower growers.

If we want to support my ambition, we must have competent technology in the field of science and technology.

I decided that in the next five years, I will invest 80% of my profits in research and development, and I will let our flower growers have our own core technologies in the fields of mobile phones, lithium batteries, etc..."

Chen Changliu's words aroused everyone's emotions, and they were shocked by Chen Changliu's courage.

80% of the profits are invested in research and development every year. This ratio is too high. You must know that the profit margin of flower growers is actually very good now.

These people are company executives and know the situation of flower growers better than anyone else.

According to their predictions, next year, the company's annual sales of the Mozu series of mobile phones will definitely exceed 10 million units.

Based on a minimum of 10 million units, annual sales exceed 3 billion, and net income is at least 500 million a year.

Since the launch of the low-end products, the MP3 series cannot be said to be very popular, but it is worth the money. Together with the two products M1 and M2, it has established the position of the flower grower in the MP3 field.

Therefore, since the launch of low-end products, sales records have been broken repeatedly.

It is estimated that the market share will reach 27%-30% next year, with annual sales between 1.5 million and 1.7 million units.

Based on the calculation of 150 units, it is expected that MP3 prices will continue to drop next year, but there is no problem with annual sales exceeding 700 million and profits exceeding 100 million.

Lead-acid battery shipments continue to rise, with annual sales exceeding 600 million and annual profits exceeding 100 million.

Based on this calculation, the flower grower's revenue next year will reach 4.3 billion, and the annual profit will reach 700 million.

Now that Chen Changliu has personally said that 80% of net profits will be invested in research and development, then their annual investment in research and development funds will increase by 500 million to 600 million, reaching 600 million or 700 million.

You must know that the research and development expenses for the entire year of 2004 exceeded 100 million.

And this is only in 2005. In the next few years, the profits of flower growers will further increase, and their R&D expenses will also increase accordingly.

Wu Bo and Liu Yang are the most excited, because with so much R&D funding, they can do a lot.

If we put it 20 years from now, R&D funding of RMB 600 million to RMB 700 million does not seem to be much, and it is simply not worth mentioning for some large manufacturers.

But that's not the case in this day and age.

In 2003, the annual revenue of PhD mobile phone was 10.8 billion, the publicity expenses reached 258 million, but the research and development expenses were only 58.5 million.

In 2003, Lianxiang's revenue reached 21.4 billion, and the cost invested in research and development was only 2 billion.

So how could Wu Bo and Liu Yang not be excited about Chen Changliu's decision.

The other executives had no objections, but were very happy.

Originally, these profits belonged to Chen Changliu himself. Anyway, their income is now top-notch in the industry.

The more R&D funds Chen Changliu invests, the firmer the company's foundation will be, and its ability to resist risks and development potential will become better and better, which will benefit them without any harm.

Chen Changliu looked at Wu Bo and joked:

"Brother Bo, I don't pay dividends. Do you, the shareholder, have any objection?"

"Hahaha, Mr. Chen, I have no objection. You have invested so much money in research and development, and it's too late for me to be happy. I'm already thinking about how to expand the research and development team. I'm going to go back and make a research and development direction plan. When the time comes, Please correct me."

"Okay, that's fine if you don't mind."

Chen Changliu was in a good mood today, and he continued:

"Everyone, do you know what I want to make Zhonghuajia look like?"

Everyone shook their heads, even Ke Meng didn't know.

"As I said just now, let Zhonghuajia become a leader among technology companies, this is the external development hope.

As for the internal, you may have thought about when I will give you shares, don't be embarrassed, this is human nature."

Speaking of this, Chen Changliu waved his hand to stop several people from talking, and then continued:

"Don't worry, you will all have shares, and I will list the subsidiary Zhonghuajia Lead-acid Battery Company at an appropriate time.

If the OEM business unit develops well, it can not only complete the company's production tasks, but also accept large-scale external orders.

It can produce various parts by itself. In the next step, I will also reorganize the OEM business unit into Zhonghuajia Electronics Company for listing.

If two listed companies are created, will you executives still lack shares?"

PS: The typos will be corrected first and then corrected.