Chapter 465: The more powerful Qinglong Technology Company

Several groups under the company seemed to have discussed it, and they all sent their annual reports to him in the past few days. After reading the annual report of Xuanwu Technology Company, they had to read the annual report of Qinglong Technology Company.

Qinglong Technology Company's annual report has relatively fewer pages, and their businesses seem to be many, but they are not particularly complicated.

Regarding the three major businesses, communication business, consumer electronics business, and home appliance business, the main revenue came from the first two last year. The home appliance business only started listing at the end of the year, and the revenue scale is not large.

As expected, the communication business has just exceeded 200 billion yuan in annual revenue, occupying 98% of the global market share of Internet communication equipment and related services.

According to the current development speed, this year can basically break through the scale of 300 billion yuan, but the communication equipment of Huawei Technologies Co., Ltd. will also go on sale after the spring.

This will affect part of Lingtong Technology's market share. In the plan, the two companies plan to reduce the selling price by 20% in order to further accelerate the speed of global Internet construction.

In addition to the above purpose, it is to further squeeze the living space of competitors and keep potential opponents out of the door. Regardless of whether it can be fully realized, it will at least have some effect.

However, the forecast data they gave is much more optimistic than Ye Zishu. The overall revenue of the two communication subsidiaries is expected to reach 400 billion yuan this year, which is double that of this year.

The reason is also given very well, that is, the existing Internet content is becoming more and more abundant, and end users' demand for the Internet is becoming stronger and stronger, which will prompt Internet service operators to speed up the pace of construction.

In fact, most of the current Internet content services are provided by companies under the Phoenix Technology Company. Since they have not been developed for a long time, other Internet content is still in the stage of government website and enterprise website construction.

There are some companies that want to launch Internet content websites similar to Phoenix Technology, but their competitiveness is still too weak, and it is difficult to gain a competitive advantage.

Especially with the application of artificial intelligence, competitors have neither technological advantages nor cost advantages, let alone time advantages. As long as Phoenix Technology does not slack off, these competitors will naturally die out.

It is not so easy to follow the Internet business of Fenghuang Technology Company. If you want to get a share of the Internet content field, you can only find another way to survive.

But they still have to see if Phoenix Technology will launch a business similar to theirs. If it does, their so-called time advantage is actually not a big advantage.

Technically, Phoenix Technology will maintain its dominant position for a long time, coupled with the use of advanced programming tools, the efficiency is not comparable to other companies.

Unless it is a niche market, Phoenix Technology is unwilling to invest too much energy. Only these Internet companies can survive, and Phoenix Technology in the mass market will definitely not let it go.

Anyway, it is basically impossible for the Internet field to monopolize the market with creativity, let alone Internet companies like them, even Phoenix Technology cannot do it.

The secret of Phoenix Technology's dominance of the market is not creativity, but technology and efficiency. The former guarantees that the business that it can realize itself cannot be realized by others. For example, high-definition streaming media business, other companies cannot do it.

The latter ensures that Phoenix Technology can catch up from behind, and its product iteration speed is much higher than that of its competitors, while the cost is much lower than that of its competitors.

The Internet content market is changing rapidly. As long as a function cannot keep up with it in time, it may fall behind. If it lags behind, it will be directly eliminated by the market.

Far away, the consumer electronics business of Qinglong Technology Company is more complicated. The largest segment of the business is personal computers. In less than half a year last year, a total of about 30 million units were shipped worldwide.

The average price of each unit is 12,000 yuan. Since almost all sales networks are their own, although they have set up a sales company, they are also owned by Qinglong Technology Company.

The revenue scale of personal computers alone has reached 360 billion yuan. The net profit margin of this business is only 30%, and the net profit scale is 108 billion yuan.

Then for the music player, in less than four months, a total of 40 million units were sold worldwide, and more than 10 million units were sold in one month. The results are very gratifying.

The average selling price is 1,500 yuan. This business earned a total of 60 billion yuan last year. The net profit margin is relatively high, close to 40%, and the net profit is 24 billion yuan.

Then there is the electronic game console business, whether it is a handheld game console or a home game console, it is a cross-generational progress, and the sales volume and price are not low.

Handheld game consoles have sold 50 million units in less than 4 months, and the supply is still in short supply. The popularity can be imagined.

The average selling price of each unit is 2,000 yuan, with a total revenue of 100 billion yuan, a net profit rate of 38%, and a net profit of 38 billion yuan.

Home game consoles are relatively expensive, with an average selling price of 4,000 yuan. Last year, a total of 40 million units were sold, with a total revenue of 160 billion yuan, a net profit rate of 30%, and a net profit of 48 billion yuan.

Then there is the game share revenue. A total of 600 million copies of games were sold on the two platforms, with an average price of 360 yuan and a total revenue of 216 billion yuan. Qinglong Technology Company’s revenue accounted for 25%, with a revenue of 54 billion yuan.

This income basically has no cost, and the difference between revenue and net profit is tax. Even the cost of sales is negligible. The net profit margin is as high as 60%, and the net profit is 32.4 billion yuan.

Other businesses are relatively niche at present, and the market sales are not large. Among these major businesses, they are completely negligible, so I won’t write more here.

As for the home appliance business, last year it went on sale for only one month. Fortunately, there was a lot of inventory before the inventory, so there is no shortage of supply.

Although the sales time of the home appliance business is still short, the popularity of the market is still very high thanks to the gimmick of smart home, excellent product quality and advanced technology applications.

I originally thought that as a new brand, it would take a process for the market to accept it, but I didn't expect that consumers would not need it at all. The sales performance was very gratifying, and the total sales volume of various mainstream home appliances reached 30 million pieces.

Among them, the sales of smart TVs are very eye-catching. This category alone has sold 10 million units. Others are smart speakers, smart refrigerators, smart air conditioners, smart washing machines, smart kitchen utensils and so on.

If you want to have a good experience in smart homes, smart speakers are indispensable, and the sales volume is almost the same as that of smart TVs, close to 10 million units.

Since there are many types of home appliances, the grades of the same kind of home appliances are different, and the selling price is also very different. The annual report does not give detailed data, but only gives the total sales, a total of 120 billion yuan, with an average price of 4,000 yuan per piece.

The net profit margin of home appliances is much lower, only 25%. This is because some of these products have export tax rebates, otherwise the profit margin will be even lower.

However, such a net profit margin is still much higher than that of its peers, and the industry's general net profit margin does not exceed 5%. Such a comparison, it seems that Qinglong Technology's net profit margin is a bit profitable.

There are several reasons for this. Low labor costs, low R\u0026D costs, and low manufacturing costs are the main reasons for cost reduction.

The selling price of their products is generally higher than that of their peers. First, the concept of smart home is popular, and it is an exclusive business, and the market competition is not fierce. Second, the technology is more advanced, the product quality is excellent, and the premium is relatively large.

Since their products can be played all over the world, the price will only be higher than that of their peers, not lower, which is completely opposite to the situation in the previous life.

In terms of home appliances, the net profit scale is only 30 billion yuan, which is far behind other businesses. However, this is only one month's sales, and the annual performance is still very impressive.

The final data is that Qinglong Technology Company achieved a total revenue of 900 billion yuan last year, with a total net profit of 360 billion yuan, of which the net profit margin of the communication business was 40%, the net profit was 80 billion yuan, and the net profit of other businesses was 280 billion yuan.

The net profit margin of the communication business is very high. The main reason is that there are almost no competitors at present. The price is very high and some people buy it. At the same time, the production cost is very low. Mastering a complete set of technologies does not need to pay patent fees.

In this way, the overall net profit margin is as high as 40%, which surprised Yeshu. The net profit margin of other physical products is generally lower than 40%, and the communication business is flat, and the surplus is the income from game software.

Unexpectedly, the small game sharing business will increase the overall profit rate by a lot, and the net profit is much higher than that of Xuanwu Technology, which employs a large number of workers.

You must know that the total number of employees of Qinglong Technology Company in the world is only 50,000, of which 30,000 are marketing and sales personnel, and 20,000 are R\u0026D personnel and other personnel.

The per capita output value has reached 18 million yuan, and the per capita net profit is 7.2 million yuan. Among today's major enterprises, it should belong to the top ranks.

Such a high per capita output value is mainly due to the fact that all the manufacturing operations have been handed over to Xuanwu Technology, and they only focus on technology research and development and marketing.

The next step is the distribution of benefits. Such achievements are gratifying, but he still feels that the profit margin is too high, and the downstream manufacturing industry should be appropriately given up.

That is to give more profits to Xuanwu Technology Company, so in the proposal, he hopes that the net profit rate of Qinglong Technology Company will be reduced to 35% next year, and then gradually decrease every year, and finally hope to stabilize at around 25%.

The purpose of ceding more benefits to Xuanwu Technology is to allow Xuanwu Technology to continue to raise salaries for employees in the future, and to maintain a larger scale of employment.

As for the year-end bonus, it is the same as that of Xuanwu Technology Co., Ltd., six months' salary is given as a year-end bonus, and then 50% of the net profit is reserved for him to use, and the remaining 50% can be disposed of by themselves.

There is also the ratio of R\u0026D investment, which is still based on 10% of the revenue ratio. This also needs to be formalized. The current 10% R\u0026D investment is enough for their research and development.