Chapter 837 Phoenix Technology Corporation's Horrible Profits

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Kunpeng Information Technology Company should be said to be the world's largest Internet media company, as well as the world's largest advertising platform, and the company with the most revenue under Phoenix Technology.

Last year, the revenue of their company alone was as high as 3.8 trillion yuan, of which advertising revenue accounted for the highest proportion. It is not wrong to say that it is an advertising company.

Among their many businesses, the streaming media business is still the one that makes the most money. The annual income of members has reached trillions of yuan, and the number of viewers they serve is countless.

It can be said that wherever there is the Internet, there are their services. Everyone in the world who has access to the Internet has enjoyed their streaming media services. It is not an exaggeration to say that they are the most influential media in the world.

Streaming media advertising revenue is not bad at all. Last year's revenue also exceeded the 1 trillion yuan mark, reaching 1.2 trillion yuan. However, this part of the revenue is not exclusive, and the revenue attributed to the platform is only 600 billion yuan.

In addition, there are additional paid content service fees, which also brought them 300 billion yuan in revenue, and the streaming media business alone created 1.9 trillion yuan in revenue.

The income of the news portal platform is much inferior to that of the streaming media platform, but it still brings them 500 billion yuan in income, and the growth rate shows signs of slowing down, with a growth rate of only 25%.

The growth of search engine business revenue is still relatively stable. Last year’s revenue reached 600 billion yuan, a relatively large increase from the previous year. As a dominant search engine, this achievement is considered normal.

The e-mail business also brought them 200 billion yuan in revenue last year. The e-mail market is not large in size, and they can achieve such results because they are the world's largest e-mail system with the highest market share.

In particular, the intelligent security service for e-mail has been loved by the majority of enterprise users, and there are many intelligent services that have also improved the efficiency of enterprises.

The revenue of the music platform has also increased compared with the previous year, and the revenue has reached 350 billion yuan. However, the future growth space of this business is limited, and it may reach 500 billion yuan before it will fall into a bottleneck period.

The reason is that the income source of the music platform is relatively single, basically relying on membership fees and on-demand payment, the advertising income is very low, and it is impossible to expand the advertising income like other platforms.

The revenue of the text content platform has reached 200 billion yuan, and the growth rate is quite fast, achieving a growth rate of 100%. There is still a long period of growth in the future, and the growth momentum is very strong.

In addition to the above main businesses, other scattered businesses also have a combined revenue of 50 billion yuan. Among them, the electronic map business is a niche business, and its growth momentum is fierce.

While seeing the gratifying results, he also realized that this is the pinnacle of the traditional PC Internet business, although there may be growth in the future,

But growth will slow sharply.

The reason is that Internet access is already large enough, and Internet users will increase in the future, but the growth rate will be much slower, and the income of Internet users who access later will not be so high, and the value created for them will be relatively limited.

In the past few years, the traditional Internet has been developing at a high speed, which has driven the rapid development of Internet content-related businesses. Now there are more than 1 billion access users, covering a larger number of people, about 3 billion people.

However, if the current operating income can be maintained, it is not bad. After all, the market cannot grow infinitely, and he has long been mentally prepared for this.

What makes him more gratified is that the domestic contribution is getting higher and higher. Even in the new revenue added last year, the domestic contribution is the most important. It can be seen that the role of expanding domestic demand is very obvious.

In the past, no one wanted to spend thousands of yuan per year as a member. However, after the big salary increase last year, the income of various positions in society has increased significantly. The membership fee of thousands of yuan is still affordable for many people.

This year, he plans to continue to increase the salaries of his employees substantially, raising the average monthly salary to 10,000 yuan and raising the minimum salary to 8,000 yuan to further expand domestic demand.

Qingluan Information Technology Co., Ltd. achieved a 100% increase in revenue last year, with a revenue of 400 billion yuan, which finally demonstrated the strong ability of social platforms to make money from advertising.

Compared with streaming media platforms, social platforms are personal platforms, and the number of users will be much higher than that of streaming media platforms. There is still a lot of room for future advertising revenue growth.

According to the experience of previous lives, Qingluan Information Technology Company's social platform revenue will gradually stabilize after reaching trillions of yuan. If it weren't for improving user experience, the revenue last year could actually be even higher.

Now that the era of smartphones is coming, social platforms have even greater potential for development. Leaf Book is still very optimistic about their future development.

Qingluan Information Technology Company was involved in almost all the social platforms in the previous life, and everything was done better than in the previous life, and the localization was also very successful.

Before the virtual world comes out, as long as they can maintain their aggressiveness, there is basically no problem in continuing to secure the top spot on the global social platform.

Moreover, the super social application in the era of mobile Internet, the short video social platform, they have been developing for a long time, Ye Zishu read it, and the effect is much better than the Douyin he has seen in his previous life.

Now the application of this short video platform is installed on smartphones, and it will be fully popularized with the popularization of smartphones. In the future, it will become a super social platform.

Danque Financial Services Company was still losing money last year, and the loss further expanded, reaching 70 billion yuan. It is a subsidiary of Phoenix Technology, and there are several loss-making companies.

In the past, Lei Jun was quite troubled by the loss of Danque Financial Services Company. After talking with Ye Zishu, he felt that the bigger the loss, the better.

Because the greater the loss, it means that their payment system will account for a higher proportion of global payments, which is very important for stabilizing the market position and changing payment methods and habits.

They just want people all over the world to get used to using their payment system. Once everyone gets used to this convenient payment method, it will be difficult to adapt to the original payment method.

However, it was not the era of mobile Internet before, and it was not friendly to offline payment. It was difficult to achieve coordinated development of online and offline, and most of them were used to purchasing online services and shopping on e-commerce platforms.

Penetration into the offline payment field is very limited, but with the advent of smartphones, the situation will change fundamentally, so the next is the most critical period for the development of Danque Financial Services Company.

At present, their payment platform has been embedded in the smart phone of Qinglong Technology Company, which can make quick payment in two ways.

The first method uses short-distance wireless communication technology, which is suitable for offline point-to-point payment. It is similar to the NFC payment method in the previous life, and it can be done by touching a mobile phone or a smart wearable device.

Compared with credit card payment, this payment is more convenient, and you don't need to carry a wallet or card bag, which is suitable for almost all offline businesses.

At present, they are working hard to promote this payment method, because it is faster and safer, and it can also drive the development of a large number of offline hardware, and the industrial scale will be larger.

The second method is the QR code payment method, which was the most used method in our country in the previous life. It is characterized by low popularization cost and no need to purchase special equipment.

But in terms of security, it is lower than the first payment method, and it is suitable for individual merchants or payments between individuals. After all, they may not be willing to buy corresponding payment devices.

Previously, the offline payment method was carried out through smart wearable devices, but the number was not large enough, resulting in the low popularity of offline payment, and many merchants were unwilling to cooperate.

Now that smartphones have finally come out, it will take a few years for everyone to have a smartphone and it will become popular. At that time, merchants will definitely see the opportunities and will naturally be more willing to connect to their payment systems.

In order to achieve the purpose of rapid promotion, they plan to allocate 50 billion yuan for the rapid promotion of offline business this year, and it is very likely that they will continue to increase promotion expenses in the future.

These promotional expenses are mainly used for users to pay subsidies offline. If the number of smartphones is not enough, otherwise the budget for promotional expenses will be higher.

Ye Zishu has no objection to their way of spending money. Compared with making money, he cares more about the strategic significance of the payment system, which is more meaningful than simply making money.

It can even be said that if it really achieves full online and offline coverage, then it will have the ability to reshape the global payment system, and other so-called various payment methods will have no power to fight back against this.

In order to achieve this achievement, it is nothing to spend more money, let alone 50 billion, even if it costs hundreds of billions for promotion, it is worth it.

At present, their online payment market accounts for almost 100%. The reason is very simple. In addition to spending money and leading their own technology, they also have huge online resources.

All the online services of Phoenix Technology Company only support the payment system of Danque Financial Services Company, and this measure alone has knocked out other payment systems.

All the entity enterprises under him also support the payment system transfer of Danque Financial Services Company, and they also have great influence in the field of enterprise business.

If it is transferred through a bank, a handling fee will be charged, but through the payment system of Danque Financial Services Company, there is no need to pay handling fees for the time being, which is quite friendly to enterprises.

It's not that there are companies launching their own payment systems, and it's a group led by big banks. Unfortunately, although they are a banking system, they have inherent advantages.

However, they did not pay for the scene resources. At the beginning, many users tried to use their products, but found that they could not be used at all.

All online businesses do not support their payment systems, which is a nuisance to users, and they have to pay handling fees to use their systems.

For banks, they have never thought of doing business at a loss. Even if they launch an online payment system, they still want to scrape a layer of oil in the early stage of promotion. Such an approach is very capitalist.

Moreover, the coverage of their bank payment alliance is not large enough. For example, Danque Financial Services Company has developed silently for so many years, and with the first-mover advantage, it has built a bank payment system covering most of the world.

Whether it is domestic payment or cross-border payment, it can be easily handled. For many people, using the payment system of Danque Financial Services Company is the best choice.

There is no need to connect to an additional system, which also increases the cost, and their payment system still uses the previous inter-bank communication technology for security, and the process is very slow.

The payment system of Danque Financial Services Company is more advanced in technology, and its security is also guaranteed. The payment is basically received in real time, and it also provides more intelligent services, which is conducive to the development of business between enterprises.

Therefore, these emerging competitors usually persevere for a period of time before dying out. There is no business, and it is not worthwhile to maintain a large amount of manpower.

In the past two years, the e-commerce company has been in a stage of rapid development. Their self-operated shopping platform has spread all over the world, and at the same time, the global logistics system is also developing.

However, there are still serious flaws in their global logistics system, that is, ocean transportation still needs to rely on third-party transportation companies, and they only do logistics from ports to warehouses and from warehouses to users.

This kind of approach is definitely no problem at ordinary times, but once there is fierce competition, if you make a difference in this aspect, it will kill them.

Therefore, filling in the missing links in logistics will be an important task for them to develop logistics in the future, and they will wait for the development of the ocean-going freighter manufacturing business of Huanyu Group.

If this shortcoming is also made up, it means that they can not only do their own commodity transportation business, but also do third-party business and develop as a separate business.

Although they are not the only e-commerce platforms in the market now, their market share is very high, as high as 98%, and other e-commerce platforms can only be reduced to a niche.

The reason is simple. First of all, they have a lot of exclusive products, such as the electronic products of Qinglong Technology Company, and their e-commerce platform is the first choice. Moreover, the more popular products, the more they can only get the goods.

The second is the advanced intelligent logistics system, which is incomparable to other e-commerce platforms. It is not only technologically advanced, but also covers a very wide range. This is one of their core competitive advantages.

It often takes a week or even longer for the goods of other e-commerce companies to reach users, while their logistics system can deliver them to users within three days, or even on the same day.

Finally, there are more products and more guaranteed quality. In the past few years, they have spent a lot of energy in purchasing products and have many very good partners.

Many partners even signed exclusive supply agreements, which further reduced the types of goods on other e-commerce platforms, making it difficult for them to obtain the same quality of goods, not to mention brand issues.

And the market cannot wait for them to develop slowly, and capital will only invest when it sees a certain value, and it is easy to run away if the limelight is not right.

The external capital is not like that of the e-commerce company, where all the funds come from within, so there is no need to worry about the sudden rupture of the capital chain, and the funds provided are still very large.

With all the advantages, I don’t know how other e-commerce platforms will compete. It can be said that as long as the e-commerce company itself is not stupid, it will basically sit firmly on the Diaoyutai.

In addition to the self-operated platform, an e-commerce platform similar to the previous Taobao was also launched at the end of last year, mainly to attract small and medium-sized businesses and individual sellers.

Although there is no need to spend money to register like some platforms in the previous life, but if you want to operate on this platform, you need to pay a deposit. The purpose of this is to avoid selling fake products or fooling consumers.

With the deposit, it is easier for consumers to protect their rights, and the deposit will gradually increase with the sales revenue of the online store. The proportion of the deposit depends on the credit rating of the store.

Stores with higher credit ratings will have less deposits, and vice versa, the higher the ratio, this will help long-term stores strive to improve their credit ratings.

In order to avoid the phenomenon of order swiping, the logistics and transportation of this platform are all handed over to their own logistics system for distribution, so it is difficult to make fraudulent orders.

Because if you cheat like this, it is easy to find out, and the cost of doing so is too high. The higher the value of the product, the less it is possible to improve the credit rating of the store by swiping orders.

As for the way of making money, different regions and countries adopt different ways of making money. Some countries use a sales commission model, while others are completely free.

But the most expensive thing in the world is a free lunch. Merchants need to spend money to buy advertising promotion. If there is no advertising promotion, it means that it will be difficult for consumers to see it.

Last year, their total global sales reached 5 trillion yuan, and the self-operated platform contributed most of the revenue, while the profit margin of the direct-operated platform is actually quite high, and the net profit of products is around 10%.

It’s just that the entire e-commerce system is still expanding wildly at present, and the infrastructure investment that needs to be built is very high, so overall, it has not made money, but it has not lost money, and it is basically in a state of neither loss nor profit.

The total revenue of Seagull Interactive Entertainment last year was 850 billion yuan, and the growth rate is not very high. If nothing else, the growth rate will become lower and lower.

The reason is simple, that is, the market is basically occupied by them. If there are no revolutionary technologies and products, the market will naturally not expand so fast.

However, their growth may be relatively fast next year. The reason is that the emergence of smartphone platforms and smart glasses will drive the development of games suitable for these two platforms.

Smart glasses, in particular, will give gamers a completely different gaming experience, and will naturally increase the unit price of the game, which is very beneficial to increasing their income.

The latest company established under Phoenix Technology is Hummingbird Life Service Company. They did not conduct business last year, but were only conducting research and development, so their income was zero.

However, with the emergence of smart phones, they will launch their own o2o application services one after another this year. As for how far it will develop, it is still hard to say, but he is still looking forward to it.

The above are the businesses of Phoenix Technology's subsidiaries. Phoenix Technology also has some businesses, such as cloud computing business, robot services, and so on.

Most of the cloud computing services are used internally and do not need to pay fees, but there are also many external businesses, and there are some revenues, but compared with the revenue and input costs, not only did not make money, but also lost money.

Instead, what really made money for Phoenix Technology was to provide supporting services for the robots of Qinglong Technology, which earned them a lot of money.

Like service robots, the cheapest service provided costs tens of thousands of yuan per year, and some service fees are as high as 100,000 yuan per year, which is still very considerable.

Last year, Qinglong Technology Company sold more than 15 million service robots, and even their service business was in full swing, creating an income of 400 billion yuan for them.

Including the approximately 5 million service robots sold in the previous year, each robot contributed an average of 20,000 yuan in revenue to Phoenix Technology, which is quite impressive.

Of course, Phoenix Technology is not the only company that provides services for service robots. New Oriental Education Group also provides education-related services, and Tai Chi Group also provides medical-related services.

It’s just that most of the users who buy service robots are still mainly individual businesses and enterprises, and the number of individual households buying and using them is still not enough, unless the family is particularly rich.

After all, for a family, it is a waste of 100,000 yuan just to chat at home. There is no need to buy service robots for education and medical care. It can also be done with other equipment, and it can be done better.

This kind of business is a long-term business. Although the general-purpose robot has come out, the service robot of Qinglong Technology Company will still occupy the mainstream of the market.

After all, general-purpose robots cannot be bought. If you hire a general-purpose robot, the price is too expensive, even much more expensive than hiring ordinary employees, which is not cost-effective for businesses.

Universal Robots and Qinglong Technology's robots belong to two completely different systems, and their operating logic is also completely different. Don't worry about Universal Robots robbing their robot business.

Moreover, Universal Robots is only engaged in high-end positions in the short term. After all, the number is limited, and it takes a lot of time to earn back the cost of engaging in low-end positions.

Moreover, the universal robot will only serve in the country. At least Ye Zishu has not thought about providing services overseas.

After reading all the annual reports of Phoenix Technology, the overall development last year was very good, with a total revenue of 14.7 trillion yuan. Although it was jointly created by more than a dozen companies, it is still terrifying to have such a scale.

And the profit margin is very high, the net profit margin is the same as last year, reaching 60%, and the net profit is 8.82 trillion yuan, a figure he did not expect.

Although it may not be more profitable than Taiji Group, being able to compete with Taiji Group has already demonstrated the strength of Phoenix Technology. As the world's top software Internet company, it deserves its name.

In contrast, the revenue of physical enterprises may be higher, but it is absolutely difficult to achieve such a high net profit. This is the horror of the software service industry.

The next step is to distribute profits. Yeshu intends to ask Phoenix Technology to pay 7 trillion yuan, and leave the remaining 1.8 trillion yuan for their own use.

Among them, the main purpose is to provide funds for the next Hummingbird Life Service Company. After all, this company wants to develop rapidly and has invested a lot of funds. It is not harmful to reserve more funds.