Chapter 1252: Xikang Technology Valuation

Why is the flashing mechanism more harmful than beneficial for long-term development?

First, security considerations

Flashing may bring the risk of data leakage.

Chen Changliu attaches great importance to user data security and privacy protection. Free flashing may reduce the security of the system, giving criminals the opportunity to obtain important data such as user personal information, account passwords, etc.

For example, if users flash into a third-party system that is not officially certified, these systems may have security vulnerabilities and are easily attacked by hackers.

In the future, the operating system of the flower-growing family will definitely take the closed ecosystem route. In this case, the integrity of the system is crucial to ensure the normal operation and security of the device.

Free flashing may destroy the integrity of the system, causing system instability, functional abnormalities and other problems, affecting the user experience.

Second, business strategy

Chen Changliu's philosophy is to provide users with a unified and high-quality user experience. He does not want users to change the appearance and functions of the system by flashing, thereby affecting the consistency of the brand image.

If users can flash the machine freely, various versions of the system may appear, which is not conducive to the brand management and marketing of the flower-growing family.

Moreover, Zhonghuajia has its own app store, and plans to launch ecosystems such as Ma Yun services in the future. These services are optimized based on Zhonghuajia's operating system.

If users can flash the machine freely, they may choose to use other app stores or services, which will affect the development of Zhonghuajia's ecosystem.

Therefore, Zhonghuajia's system is to guide users to use its own ecosystem by restricting flashing, thereby improving user stickiness and loyalty.

Finally, there is the difficulty of technical support and maintenance.

If free flashing is allowed, Zhonghuajia needs to provide technical support for various versions of the system, which will greatly increase the difficulty and cost of technical support.

Moreover, since the user's flashing behavior may not be standardized, the problems that arise are also different, which will bring great challenges to Zhonghuajia's technical support team.

Moreover, Zhonghuajia's operating system is optimized for its own hardware devices, and different hardware configurations may require different system versions and drivers.

If users flash the machine freely, it may cause the system to be incompatible with the hardware, resulting in freezing, jamming and other problems.

In order to ensure the stability and compatibility of the system, as well as the above-mentioned issues, Chen Changliu does not engage in this free flashing function that is very individual in the eyes of mobile phone enthusiasts.

..........

Xikang not only organized this offline experience exchange meeting, but also spent money to invite celebrities to endorse it.

Even Liu Qianqian and Dabaobei, who endorsed Zhonghuajia mobile phones, received their offer, and the price was 50% higher than their market price.

And this is just the offer. If they bargain, the price will be even higher.

"Boss, Xikang suddenly became very generous. Originally, their foundation was not as deep as that of Weiwei and OV, but a series of actions in the past half month can actually compete with these companies offline without falling too far behind.

I estimate that the amount of financing they raised this time should be quite a lot!"

Chen Changliu nodded to Feng Xiao's judgment:

"This time, Xikang raised 70 million US dollars, with a valuation of 1 billion US dollars, led by Igd Capital and others. Cao Wenlong used to be the deputy manager of the investment department there, and he told me."

Feng Xiao was not very surprised to hear what Chen Changliu said. The turnover of 4 billion, the valuation of 6.8 billion, and the price-to-sales ratio of 1.7 are not high for Xikang, which is supported by Qualcomm.

The price-to-sales ratio can also be understood as the ratio of valuation to sales.

This also shows that the negative news on the Internet still affects the valuation of Xikang Technology.

In fact, there is no fixed standard for the price-to-sales ratio of unlisted mobile phone companies. It will vary due to various factors, but generally speaking, it will be in a relatively wide range.

For some unlisted mobile phone companies with strong innovation capabilities, large brand influence, promising market prospects and in a rapid development stage.

The price-to-sales ratio may be relatively high, such as around 1.5 to 3 times.

These companies usually have outstanding performance in technology research and development, product design, market expansion, etc., which can attract the attention and recognition of investors, and investors are willing to give higher valuations.

For some unlisted mobile phone companies with relatively ordinary development, general brand awareness and less outstanding market competitiveness, the price-to-sales ratio may be relatively low, roughly between 0.5 and 1.5 times.

Such companies may have a certain gap with leading companies in terms of product innovation, sales channels, market share, etc. Investors are relatively cautious about their future sales growth expectations, so the valuation will also be relatively conservative.

However, this is only a rough range. In actual situations, the P/S ratio of unlisted mobile phone companies will vary greatly depending on the specific situation of the company, the market environment, industry trends and other factors.

Although Xikang Technology has no technology research and development, it could have reached 1 before this year.

However, this year, it snatched the global launch of Qualcomm chips from Zhonghuajia, which shows Qualcomm's support for it, and Qualcomm is the world's number one chip supplier.

In addition, the domestic smartphone track is in a stage of rapid development. It can be said that such a market situation plus Qualcomm's support should be above 2.

However, because of the previous Zhonghuajia and Qualcomm incident, Xikang was also affected, so the P/S ratio is only 1.7.

How can I say about the 1 billion dollar valuation of Xikang Technology? Chen Changliu knows that it is much lower than that in the original space-time. This should be caused by the emergence of the flower-growing family.

In the original space-time, before the mobile phone was launched, it only developed an operating system and sold accessories such as mobile phone cases, headphones, chargers, and T-shirts. The valuation after financing was 300 to 400 million US dollars.

The first mobile phone was launched 3 months ago, and the valuation after financing was 1 billion US dollars.

The first mobile phone was launched 8 months ago, and the valuation after financing was 4 billion US dollars.

And Xikang in this space-time does not have the online voice of the original space-time. Although it has already released the third mobile phone, the valuation is only 1 billion.

However, Chen Changliu has nothing to be embarrassed about. After all, it is better for the flower-growing family to keep the money in China than for Feng Jun to give 90% of the money he earns to foreign countries.

PS: The typos will be corrected later.