Seeing the smile on Fang Chen's face, Shen Wei and Liu Xuehong couldn't help but lower their heads.

"Looking at what you two are like now, you don't look like the general manager and vice president of a large factory with tens of thousands of people. You are in such a miserable state. Fujitsu has a stronger foundation than us, can afford to lose money, is more famous than us, and the quality of the equipment is better than ours. How can we get it?" Just go to the Eastern Suburb Bureau and get the order, it's nothing, or are you worried that I will remove your head?" Fang Chen took a sip of the mutton soup in the bowl and said casually.

Hearing this, Shen Wei's face suddenly flushed, "Mr. Fang, we were wrong. We underestimated our opponent's strength too much, and we were immersed in the arrogance of our previous victory. We didn't pay attention to our opponent at all, let alone notice it." The opponent's possible counterattacks have never been fully considered and the plans should be prepared."

"Okay, I'm too lazy to listen to you two crying and criticizing me. Besides, I didn't expect Fujitsu to be so cruel. It's amazing!" Fang Chen sighed with a sigh.

He was also surprised that Fujitsu could so decisively lower the price from the original price of 320 US dollars to 180 US dollars, a full 45% price reduction, and give up the high profits from the installment loan.

He just calculated in his mind that Fujitsu did this at the cost of two billion Chinese coins.

If Fujitsu continues to fight with them, the profits on the financial statements will drop from the original 1.56 billion per year to minus 5.4 billion. In addition, they will have to bear the same responsibility as Qingtian Communications, which will not see a cent of cash in two years. huge pressure.

Calculating carefully, Fujitsu will have to invest more than 4 billion in China this year to continue to maintain this intensity.

For such a big price, Fujitsu actually paid it as he said it would. At this moment, Fang Chen felt that he had been taught a lesson by Fujitsu. He still underestimated Fujitsu.

I thought that because Fujitsu was a big business and had a high level of hierarchy, it should be a big company disease and it would be difficult to make decisions quickly, but who knew that this was not the case at all.

"I think the most important reason why Fujitsu was able to make up its mind so quickly was that the Japanese government was there to back them up, and the company is all supported by you alone. If you really want to be honest, I think it's you. "Shen Wei slapped him on the back of his plan, neither light nor serious.

Liu Xuehong glanced at him in surprise, his expression calm as usual, as if it was indeed Shen Wei who was like this. He suddenly felt that he had to learn from Shen Wei about flattering.

Of course, he also knew that what Shen Wei said was true. Unlike Qingtian Communications where all the production costs were financed by Mr. Fang himself, Fujitsu only needed to sell the equipment. The Japanese government will immediately give the equipment money to Fujitsu, which means that the loan contract signed by the Post and Telecommunications Bureau to purchase the switch was actually signed with the Japanese government.

It's the same as Feng Lun and others developing real estate and selling houses. Home buyers sign installment contracts with banks, not developers like Feng Lun and others.

What Fujitsu really needs to bear is a loss of about US$80 per line, so the pressure is definitely much less.

So, naturally Mr. Fang is more impressive.

He just felt that the tone of Shen Wei's words just now was too explicit.

"What's the secret of the Dongwa government? It's not even close to me." Fang Chen said, talking loudly.

Immediately afterwards, Fang Chen sighed and said helplessly: "But there is no way, who makes Dongbo rich? It is the second largest economic country, with a per capita GDP of 28,000 US dollars, 50% more than the United States, and the former After two years, they have been saying that if they sell Tokyo, they can buy the United States. The advance payment is naturally nothing. The average per capita in China is only more than 300 US dollars, which is one-ninth of other people's. It is incomparable."

Naturally, he also wants Huaxia to be strong and help him support him, so as not to make it so difficult for him.

But the key point is that it really can't be done. As far as the situation in the country is concerned, although it is not that poor, it is almost there. The powerful and powerful Kuei is plotting against him all day long for a mere two to three billion US dollars.

He blushed for Dean Zhu just thinking about it.

Therefore, he was grateful to Dean Zhu for not asking him to complain about his poverty. How dare he think that Dean Zhu, like the Japanese government, would bear all the installment payments for him with a stroke of a pen.

It can be said that being able to squeeze out an interest-free loan of one billion for him is already the last copper in Dean Zhu's pocket, and it is the greatest support he can give him.

Unexpectedly, the Pudong New Area, an important national asset, is related to the existence of China's economic development in the next few decades. The financial support provided by the above throughout the year only allows the issuance of 500 million yuan in Pudong construction bonds, and the original annual loan of 100 million US dollars to Shanghai. Basically, starting from this year, it will increase its borrowings at preferential interest rates by US$200 million per year, and allow Shanghai to issue another 100 million Huaxia currency stocks beyond the original limit for the development of Pudong, etc., which is not much money.

After thinking wildly for a while, Fang Chen came back to his senses. He looked at Shen Wei and the two of them, his face darkened, and he said seriously: "I don't want to listen to the self-examination. Tell me what you are going to do next?"

"We have discussed with Jiamu, Baoyong and General Counsel Shen. The first thing we need to change is the price. From the original price of 210 US dollars, we will at least drop it to about 70 US dollars..."

Speaking of this, Shen Wei glanced at Fang Chen. Although they all felt it was more appropriate to lower the price of the switch to one hundred and forty dollars, it was Fang Chen who made the final decision.

"Then what are our current costs, and have they been reduced?" Fang Chen asked with concern.

"This is what I want to report to you. According to your instructions on reducing costs, optimizing processes, and upgrading procedures, the institute has made quite a breakthrough. Some new technologies can already be used in actual production. It is expected that by then Not only can the product quality be improved to a higher level, but the cost will also be reduced from the original one hundred US dollars per line to about eighty-seven US dollars."

After hearing what Shen Wei said, Fang Chen nodded slightly. Technology is the primary productive force, and the right way is to seize the opportunity to upgrade and transform technology.

In the previous life, why was China able to reach 50% telephone penetration in the millennium at a speed that was ten times faster than expected by postal and telecommunications experts, instead of the so-called increase from 1% to 5%? Isn’t it because of advances in technology that the cost of switches has increased from When the eight international giants had a monopoly, the original US$300 to US$400 per line dropped to US$400 per line, and the quality and advancement of the products themselves have made extraordinary progress.

Of course, most of this progress relies on domestic companies such as Huawei and ZTE. If we count on the eight international giants such as Lucent and Fujitsu, China's telephone penetration rate can increase five times in ten years. It is already a relatively optimistic estimate.

After all, no one is willing to spit out the meat in their mouth.

Just like Fujitsu, if it hadn't been so forced by Qingtian Communications, how could it be willing to give up its profits of more than 2 billion this year and supply switches for the China Post and Telecommunications Bureau at a loss.

"It's really good if it can be reduced to eighty-seven dollars. I would like to express my gratitude to the employees of the research laboratory, and then the bonuses that should be given by various rules and regulations must be given..." At this point, Fang Chen paused and looked at the two of them. He continued with a glance: "But to prevent you from raising your tail, you still need to continue to work hard. Eighty-seven dollars per line is definitely not the end point of reducing costs. There is still a lot of room for reduction."

Shen Wei and Liu Xuehong nodded in agreement.

"If you calculate it this way, at one hundred and forty dollars per line, we can still have a gross profit of 37%. This is still a bit high. Can it be reduced from ten dollars to twenty dollars?" Fang Chen pondered for a moment and asked.

Shen Wei's face changed slightly, showing embarrassment, "Ten dollars is probably okay. In this case, we can still maintain 30% of the gross profit, but twenty dollars is really not good. If it is any lower, there is no guarantee that we will improve the company's technology." , investment in various scientific research projects, and even some cooperation projects with various university research institutes and professors will have to be cut off. As for cooperation with foreign university research institutes, that is not to mention."

You know, because Fang Chen attaches great importance to technological research and development, Qingtian Communications basically invests 100 million in the company's various scientific research projects every month.

If sales are calculated based on every 10,000-line switch and some other supporting computer room communication equipment, Qingtian Communications' 3.6 million-line switch can create at least 6 billion in sales.

Then this year's R&D expenses of 1.2 billion are equivalent to 20% of the company's gross revenue.

Therefore, the gross profit must be maintained above 30%. In this case, after subtracting 20% ​​of the scientific research investment, 10% of pure profit will remain.

If the price per line drops to US$120, minus the investment in scientific research, Qingtian Communications will only have a 3% net profit.

Thinking of this, Shen Wei suddenly felt shuddering. In this era when industrial products can basically maintain a 30% net profit, Qingtian Communications only has a 3% net profit. He really feels like he is going crazy.

This is not a high-tech communications equipment company. It is not even as good as an OEM like Foxconn. Now Foxconn still has a 5% net profit.

Of course, this money was actually taken out of Fang Chen's pocket. After all, Qingtian Communications is very poor now. It only spends money but has no income. It is not as good as the first half of the year.

In the first half of the year, relying on the old products left over from Luozhou Telephone, such as LH24-LH240, etc., we still had sales of one to two billion. Not only could we be self-sufficient, but we could also pay out bonuses.

Fang Chen quickly calculated in his mind and sighed helplessly, "3% net profit is a bit low. If it increases by another 5%, we can make do with around 8%."

The communications industry is definitely a high-tech industry, especially after entering the 5G era.

What 5G brings to human society is not just the upgrade from 3G to 4G, but also the upgrade from the picture era to the video era. In other words, 3G can see empty pictures, and 4G can watch videos. Video and short video websites have developed rapidly.

Because of the high speed, low latency, and wide connection characteristics of 5G, human society finally has the opportunity to fully and synchronously extend all functions of vision, hearing, taste, smell, touch, and central nervous system consciousness.

"High speed" ensures massive information and extremely detailed information, "low latency" ensures synchronization and interaction across space, and "wide connection" enables every bit of existence in the external environment to become the sender of information details.

Every flower, every tree, every grass and every tree has migrated with high fidelity from the physical world to the data world. In a new world where things are connected, it will be possible for human beings for the first time to simultaneously free all their faculties from the constraints and confinement of the physical body.

But what is extremely disproportionate to the identity of a high-tech enterprise is the profit rate of the communications equipment industry.

Originally, communication equipment companies, such as the so-called seven countries and eight systems, and the eight major international communication giants are raging in China, these companies can basically maintain a gross profit of about 50% to 60%.

However, after the rise of China Telecom such as Huawei and ZTE, such good days are gone forever, and the profit margin can basically only hover around 10%.

Take Huawei as an example. Huawei's revenue in 2018 was 720 billion, but its net profit was only over 50 billion, or about 8% of its net profit. It is completely different from its status as the world's number one communications equipment company.

The reason why Huawei's profits are so low is because Huawei invests a lot of money in technology research and development. Huawei's research and development expenses in 2018 reached a little more than 100 billion, which is almost twice the net profit, accounting for 14.1% of sales revenue.

%.

Moreover, Huawei’s investment in R&D is not just in 2018, but has continued to invest for decades, twenty, and thirty years. In the ten years from 2009 to 2018, Huawei invested 4,880 yuan.

Tens of billions of R&D funds.

However, this has also yielded fruitful results. According to data released by the World Intellectual Property Organization, a subsidiary of the United Nations, Huawei submitted 5,405 patent applications to the organization in 2018, ranking first among all companies in the world.

Therefore, Fang Chen is quite satisfied that the net profit of Qingtian Communications can be maintained at around 8%.

The only thing that makes people feel a little regretful or unwilling is that in this era of the 1990s, when every inch of land is precious and full of violence, only 8% of the net profit is made, which makes people feel shabby.

Even Huawei can still make 50% of its gross profit.

But when he thought about his scientific research investment ratio of 20%, which was much higher than Huawei's 14.1%, Fang Chen felt a little relieved.

After thinking for a while, Fang Chen said: "Let's put more investment in scientific research, try to reduce costs as soon as possible, and provide better communication equipment to the country and people. You don't want 04's product strength.

You've always been inferior to Fujitsu and the others, right? As for the price, just set it to the minimum of one hundred and twenty dollars per line, and if you make less, you'll make less."

After hearing this, Shen Wei suddenly became anxious, "Mr. Fang, this 3% net profit is too small. What if Mr. Zheng says that there are projects in the research laboratory that require additional scientific research funds? Do you think I am?"

Give it to him or not? You will lose money!"

"Okay, this scientific research funding has nothing to do with Qingtian Communications now. In the future, the scientific research funds will not go to Qingtian Communications' account, and will not be linked to Qingtian Communications' profits. They will come from my pocket." Fang Chen said.
Chapter completed!