Chapter 652 Another two giant companies

The annual report of Xuanwu Technology Group is very complicated, and in the eyes of Ye Zishu, it is a bit cumbersome, mainly because their business is becoming more and more complicated, and the company system is getting larger and larger.

Ye Zishu glanced at their main business, and it has increased by 200% compared to last year. On the one hand, the revenue of the previous year was actually only less than half a year, and last year was considered to be a supplement.

On the other hand, their technological advancement has been more widely recognized, and many businesses have shown explosive growth, resulting in a somewhat high overall increase.

Therefore, their revenue for the whole year last year was more than 3.2 trillion yuan, but the net profit margin has declined, only 30%, and the annual net profit was more than 960 billion yuan.

In fact, he had foreseen the decline in the net profit rate. The high net profit rate of the previous year was a bit too high. Over time, it was not conducive to their market competitiveness.

Last year, they suddenly emerged, causing many companies to fail to react, but they are not easy to eat. With years of accumulation, it is not impossible to catch up.

Last year, their product prices were reduced a lot. On the one hand, it was to further stimulate market demand, and on the other hand, it was to squeeze the living space of competitors.

In addition, the research and development costs are much higher than before. In the past, many technologies were provided by Yeshu, but now Yeshu does not provide much technology. Many R\u0026D requires them to invest a lot, and the cost is naturally much higher.

If these factors are included, the net profit margin is actually similar to that of the previous year, because last year’s large-scale production and production costs were lower than the previous year, and the profit margin can still be guaranteed after the price cut.

Judging from their business situation, Wu Chaoqiang obviously listened to his words and introduced many measures in the whole system to ensure that the interdependence of its systems is not so strong.

Let many subsidiaries and even grandson companies not expect to completely rely on the needs of the system in business, but want to expand as much as possible, and the business operations of each independent company must become more independent.

Last year's revenue growth is not very normal. If there is no accident in the future, Xuanwu Technology's revenue growth may be relatively stable, and there will be no big ups and downs.

However, relying on the rapid development of the Internet and the semiconductor industry, the annual growth rate is at least about 30%. If other competitors are really wiped out, the growth rate will be even higher.

Ye Zishu decided to take away 600 billion yuan of their net profit, and the remaining 360 billion yuan is enough for them to use for capital reserves and business operations.

After reading the annual report of Xuanwu Technology Group, Ye Zishu directly read the annual report of Qinglong Technology Company, which has a close business relationship with them, and the revenue growth rate was even higher than that of Xuanwu Technology Company.

A lot of their business was carried out in the second half of the year before last year, and it was carried out throughout the year last year. According to normal growth, it will be at least double that of last year.

Last year, they not only launched new business tablets and smart earphones, but also updated existing businesses, and the communication business grew faster.

There are also digital home theater systems and various consumer, professional and industrial digital products, which gradually appeared last year, bringing them a lot of operating income.

Combined with the previous smart home concept, the digital home theater sold very well last year. A cheap home theater only costs about 5,000 yuan, which is affordable by ordinary families.

As for the higher-end digital home theater, there is no limit. There are tens of thousands of yuan, and there are hundreds of thousands of yuan. As long as they can afford the money, Qinglong Technology can always satisfy them.

Not to mention ordinary digital home theaters, even 3D home theaters can be installed for them, but the price is very expensive, costing millions of yuan, which has nothing to do with ordinary people.

They haven't launched a 3D digital cinema system for theaters yet, mainly because they want to give priority to the cinemas under Wancheng Foundation.

The digital home theater system alone has sold a total of 10 million sets worldwide, at various prices, some of which are modified from existing smart TVs.

Some use more advanced equipment.

This business has brought them 80 billion yuan in revenue, and then there are various digital products, such as digital cameras and digital video cameras, which ushered in a bumper harvest last year.

It was released at the end of the year before last, and the market reaction has not yet been stimulated. Last year was a real explosion, which can even be described as a mountain roar and tsunami, almost sending film cameras to the garbage dump.

Just 50 million consumer-grade digital cameras were sold, 10 million camcorders were sold, 10 million professional-grade cameras were sold, and 5 million professional-grade camcorders were sold.

There are also industrial-grade products. Although they are expensive, the quantity is not very large. They are mainly used for film and television drama shooting. These businesses have brought them a total of about 455 billion yuan in revenue.

And the very humble smart earphones, although they have only been sold for more than 4 months, the sales volume is not low, reaching more than 30 million sets.

The price of smart earphones varies, but the cheapest is 1,000 yuan, and the most expensive is 3,000 yuan. This business alone has brought them about 60 billion yuan in revenue.

They are so expensive, and they can still sell so many, it must not only be the smart earphones themselves, but also a series of services launched by brother companies around the smart earphones.

It is these services that make the smart earphones of Qinglong Technology Company so expensive, many people still buy them, because they think they are worth the money, and the smart earphones themselves have added a lot of high-tech technology.

Last year, Qinglong Technology Co., Ltd. obtained a total revenue of 4.5 trillion yuan, with a net profit rate of 30%, basically the same as that of Xuanwu Technology Group, with a net profit of 1.35 trillion yuan.

Net profit dropped by 5 percentage points from last year, mainly because of R\u0026D investment. If R\u0026D investment is excluded, the net profit margin actually rose slightly compared to the previous year.

In addition, Qinglong Technology Company has also started to build its own R\u0026D centers across the country. After all, Ye Zishu has reminded Ren Zhengfei that he cannot always rely on Phoenix Software Company.

What's more, they have more and more employees, and the scale of R\u0026D personnel is getting bigger and bigger, and it's a bit inappropriate to stay in someone else's venue.

In fact, they not only occupied the office space of the headquarters of Phoenix Software, but also occupied the office space of other software companies, otherwise they would not be able to accommodate so many people.

The number of their domestic employees has exceeded the 200,000 mark, a considerable number of them are sales personnel, because domestic appliances and electronic products also showed a great growth momentum last year.

Qinglong Technology Company has also gradually paid attention to the domestic market. Not only has it added more manpower, but it has also opened many new stores, and even operates under different brands to strengthen brand awareness.

Even if the marketing personnel are removed, the number of their R\u0026D personnel and administrative personnel has reached about 100,000, and it is necessary to build their own headquarters.

They are also following the practice of Phoenix Technology Corporation to build regional headquarters in major economic centers and scientific and educational centers across the country. Anyway, they are not short of money and can afford to do so.

After reading the annual report of Qinglong Technology Company, Ye Zishu directly took away 1 trillion yuan from their net profit, leaving only 350 billion yuan for them.

In the past, he basically only withdrew 50% of the profits, but this year he took out more. On the one hand, they didn't need so much funds, and it was a waste to keep them. The remaining funds were enough for them to use and reserve.

On the other hand, he wanted to continue to speed up the development of Wancheng Foundation. He felt more and more that if he didn't speed up, the domestic real estate market would change in a few years, and he had to take advantage of this gap to speed up the layout.

If he hadn't known that Wancheng Jiye's houses were difficult to sell at present, otherwise he would have asked Wancheng Jiye to borrow part of the funds from the bank, which would further accelerate the development of Wancheng Jiye.

In the next few years, Wancheng Foundation will basically only be able to get in and out, and it will be a huge pressure for them to borrow from the bank, unless the future profits of the brother companies can be guaranteed to repay the loan.

Although Ye Zishu is in a hurry, he has not reached this level. It is necessary to speed up his development according to his ability, but he should not be dazzled by it.

Compared with the previous two Big Macs, there is a huge gap in the revenue of Shengshi Cultural Group. The revenue of the entire group last year was more than 390 billion yuan.

Due to the existence of the intelligent music content creation system, Shengshi Records finally got rid of the previous decline, and the offline business has also made great progress. Last year, the annual revenue was about 150 billion yuan.

Among them, online music revenue has exceeded 120 billion yuan, which is much higher than Ye Zishu’s previous forecast, indicating that the number of users of the music platform has been greatly improved.

Offline business includes income from celebrity endorsements, concerts, licensing, etc., totaling 30 billion yuan. Among them, celebrity endorsement income is the highest, followed by licensing income, and concert income is the lowest.

Since they have a large number of music copyrights in their hands, it is not difficult to praise people, which leads to higher bargaining power with celebrities and naturally higher profit margins.

In particular, the cost of their music creation is very low, and the taxation of the cultural industry is very low, resulting in a net profit rate of 70%, and a net profit of 105 billion yuan.

If it weren't for raising a large group of music producers and letting them create original music, otherwise the profit margin would be higher. Nowadays, singers and stars don't have sky-high remuneration, but their income is much higher than that of ordinary people.

Relying on the digital advertising platform, Shengshi Advertising Company has also achieved tremendous development last year, with annual revenue reaching 120 billion yuan, which is much easier to earn than Shengshi Records.

Since the tax rate of the advertising industry is not too high, the net profit rate has reached 60%, and the net profit is 72 billion yuan. Although the revenue is lower than that of record companies, the future growth potential is higher than that of record companies.

Compared with the above two brother companies, the development of Shengshi Film and Television Company is not so fast. Although they have produced more film and television dramas, their revenue growth is relatively slow.

Last year, a total of 80 billion yuan in revenue was obtained. The headquarters' film and television revenue did not increase but fell. If it were not for the income from overseas subsidiaries to make up for it, the film and television revenue would be ugly.

However, the business of copyright authorization is very prominent, mainly because Phoenix Special Effects Company entrusts them with this part, and the income is divided into 50 and 50, so that they have a large number of film and television copyrights in their hands.

Their net profit margin is also relatively low, only 40%, and their net profit is only 32 billion yuan. Although they will not encounter difficulties in their operations, they will not improve much in the short term.

Ye Zishu promised them to create a new script, but was delayed because he was too busy. He didn't want to spend energy on this aspect, and let them fend for themselves.

Shengshi Toys' revenue was 30 billion yuan last year, and the situation is still good. The net profit rate is 50%, and the net profit is 15 billion yuan. It can be regarded as a company that he does not need to worry about at all.

Shengshi Entertainment Company is a company managed by Wang Changtian himself. Previously, the Internet cafe business and business were entrusted to this company. Last year, the revenue was 10 billion yuan, and it was generally in a state of loss.

They also have other incubated businesses, which are not large in size, and together they contributed 5 billion yuan in revenue. Compared with the investment, they are in a state of loss.

Although their overall revenue is not bad, and their profit margin is also good, but Ye Zishu did not take money from them. If they take less, it will not be used, and if they take too much, it will affect their development, so just forget it.