"What do you think about the Frontier Research Center?"

Looking across the people sitting in the office, Fang Nian got straight to the point.

After answering Yang Yuliang's call as early as the morning, Fang Nian briefly informed the front office of the outcome of the matter.

Including some additional proposals from Yangpu District Government.

Naturally, it also includes the two-year exemption and three-year half-off policy.

Lu Weiyu took the lead and asked calmly: "I want to confirm again, Mr. Fang, have you really decided to completely independent the research center and choose another location for the headquarters industrial park?"

"Actually, it's not a very important decision. After all, Bai Ze and Zhu Yan are independent." Fang Nian said calmly.

Be it regrets or the art of compromise.

For Fang Nian, all this has become a thing of the past.

He has chosen to accept it calmly and peacefully.

After hearing what Fang Nian said, Guan Qiuhe took over the conversation: "The Yangpu District Government's proposal is very attractive. If the cutting-edge research center is implemented in the form of a company, most of the cutting-edge non-investment business revenue will be basically tax-free."

"Nor does it affect leadership in cutting-edge innovation."

Lu Weiyu agreed: "In fact, cutting-edge innovation is more like a functional department at the current development stage, providing all-round business support to various laboratories."

"..."

Wen Ye, Gu Yu, and Wu Fucheng did not express any other opinions.

After all, the front office does not involve so many power entanglements.

This is why there is an independent front office.

On the contrary, including cutting-edge companies, there is more or less competition for power.

Furthermore, the pros and cons of operating the Nuwa Laboratory and the Shengyu Laboratory that are already under planning, including the Nuwa Confidential Laboratory, have been clearly understood for a long time.

Considering long-term development, self-built office buildings are the best and once-and-for-all solution.

and……

It can also have more advantages in the form of public opinion and external image.

After it was finalized, Fang Nian looked at Liu Xi and arranged: "Liu Xi, make a separate budget plan for the Frontier Research Center and submit it after the holidays."

"Okay." Liu Xi agreed.

After a pause, Fang Nian said with a smile: "What we will discuss next are basically budget matters."

"Have arrangements been made to pay the 100 million yuan to Shanghai Qianyuan?"

Liu Xin hummed: "The transfer was arranged before three o'clock."

"..."

Before Fang Nian could speak, Liu Xi continued.

"Currently, the total funds available on the company's public accounts are 800 million yuan. According to previous plans, 100 million yuan will be invested this month to prepare a Taotie Materials Laboratory in Chang'an;

In order to promote the progress of frontier institutes in various places, based on the previous plan, I completed the proposed budget:

The Frontier Institute of the University of Science and Technology of China plans to invest 150 million yuan in April, the Beijing Frontier Institute plans to invest 100 million yuan, and the Harbin Institute of Technology and Yangcheng Frontier Institute plan to invest a total of 50 million yuan..."

"..."

Finally, Liu Xi concluded: "Although some operating funds are left in the company accounts of each subsidiary, including the budget of the Frontier Research Center, the total account should still have about 250 million available funds...

However, according to the company's financial risk management and control methods and with reference to corresponding models, based on the current situation, Frontier will fall into a moderate financial crisis in mid-June."

"According to the existing system and operating status, and according to the data model, Frontier can only alleviate its financial situation by transferring part of the shares held by Frontier Angels."

"..."

After listening to Liu Xi's words, everyone fell into deep thought.

From the establishment of Frontier to the present, although Frontier's paper assets have grown from 0 to tens of billions, it has actually been in financial crisis.

This is because Fang Nian’s plans for cutting-edge projects are relatively large, and all of them are basic science investments.

It is a completely asset-heavy, investment-heavy, slow-return enterprise.

And it is an enterprise with an imperfect business model.

For now, except for Frontier Angel, which is operating normally, the other three companies are operating in "abnormal" conditions.

Taking cutting-edge academics as an example, a huge amount of cash has been invested, covering almost all universities in China, and supporting a large number of academic research projects.

This is the most uncontrollable part of achieving results.

After nearly a year of incubation, there are only 37 completed projects in total.

Referring to market analysis, the most valuable ones at present are some technology patents based on the time division duplex technology standard under the 3GPP LTE framework.

A clearer statement is: LTE-TDD.

At present, domestic research companies on this technical standard include Juchang, Datang Telecom, Bell, ZTE, China Mobile, and low-key cutting-edge academics.

Although the research is done by professors from some universities, it is not directly related to cutting-edge academics.

But Frontier Academic has 51% patent ownership rights and 35% patent licensing rights.

Except for the first project agreement signed with Cheng Qian's supervisor's research group, all other academic investment projects are signed in this way.

Cheng Qian's share was pure 37.

The 51% patent ownership rights are mainly for some additional terms and services.

The most important one is: if necessary, Frontier Academic has the right to refuse the R&D team to authorize patents on its own.

That's why there's an extra 1%.

Therefore, it can basically be said that it belongs to cutting-edge academic research.

Of course, there are some additional terms.

Take for example the 37 projects that have completed all research so far, and cutting-edge academics have all received carte blanche.

The presence of cutting-edge entrepreneurship is very low.

It’s not that we’re not doing anything, but it’s almost entirely integrating the resources of cutting-edge societies and affiliated project funds.

Basically it is a pure expenditure state.

Of course, because we have jointly established a private equity fund with Fudan Science and Technology Park, some of our investments will benefit in the future.

Cutting edge innovation…

In fact, under the management of Lu Weiyu, Frontier Innovation is really the company that you don't have to worry about the least, it is in good order.

However, the stall is too large, and the investment is far greater than the income.

Take Nuwa Laboratory, which has already generated operating income, as an example.

Not counting last year’s licensing fees, the licensing fees collected so far this year alone are close to 100 million.

It looks impressive.

But the expenses are horrific.

Calculating the system data center alone is a net investment of hundreds of millions.

There is also the investment in various new features, which is simply a slow-motion stew. At first glance, it seems like nothing, but when you think about it carefully, your heart will be broken.

But never mention Baize.

Baize is a money-burning existence. Since its establishment, it has burned 4.7 billion yuan.

At least it is not in vain, actual tape-out is already planned...

While everyone was contemplating, Fang Nian spoke calmly: "For a business as big as Frontier, unless all six major laboratories are operating normally and products start to iterate, there will always be a financial crisis."

"There is no need to worry about financial issues. The rush at the capital level in March was not in vain."

"..."

After Fang Nian made the final decision, Guan Qiuhe said helplessly: "Okay, anyway, you are the only one who can make the stall so big and solve the source of funds for such a big stall."

"..."

Guan Qiuhe This is a true statement.

But it made everyone laugh.

After that, we briefly discussed the Qingming holiday matters, including the implementation of various matters.

A few additional things were mentioned at the end.

For example, Fang Nian has never had time to pay attention to the classic closed beta of ‘Tota Reborn’.

The first round of classic closed beta with prizes ended at the end of March, and a lucky team received a bonus of 5 million.

‘Dota Reborn’ is a big hit.

There was a trend of surpassing League of Legends.
To be continued...