Chapter 416: The Performance of Consortium Enterprises in 2001
After seeing off the extremely excited Wang Huiyang, the office fell into silence again.
Wang Yaocheng, who was in a good mood, turned on the music, and the melodious violin excerpts of "Butterfly Lovers" flowed out like water, nourishing the heart that lacked the water of music and bringing wonderful enjoyment.
In the past 2001, the consortium has made great progress.
The Carrefour supermarket chain has grown to 208 hypermarkets and more than 1,100 city center stores. Its large-scale expansion has come to an end and it has begun to contribute good revenue, with annual net profit reaching US$3.78 billion.
Changjiang Technology Group's foundry business continues to develop, with a workforce of one million, and export earnings continue to grow.
The development of its Dell brand is in full swing and has become a major pillar of profit contribution. The group's annual profit reached 6.28 billion US dollars, and it is a prosperous scene.
Gli Group has grown rapidly in the fierce competition. It has introduced a number of internationally advanced household appliance production lines, refined and extended its product lines, and has become a well-known household appliance manufacturer with strong international competitiveness.
Through the multi-brand strategy, the company has launched three arrows, Glid, Sanyo and Thomson, to conquer the European, American and world markets, and the sales situation is very good.
2001
Annual sales reached 38.2 billion U.S. dollars. While fighting a price war, it still made a profit of 2.45 billion U.S. dollars, which is really commendable.
Huanghe Technology Group has also made significant progress;
Two fifth-generation large-size LCD production lines representing the world's advanced level have been put into production, and active planning for the sixth-generation advanced production line has entered the specific implementation stage.
expected
2002
The total investment scale of the two advanced sixth-generation LCD display production lines under construction may exceed 15 billion US dollars, which is definitely a huge sum of money.
This is despite the fact that land, water, electricity and labor costs are extremely low in mainland China, and more than 80% of them are equipment investments.
There is no need to talk about profits. After investing the profits from its Pacific Appliances Chain Company and Panda Electronics, Huanghe Technology Group still suffered a loss of US$370 million as a whole.
Huanghe Technology Group's unconventional development came at the cost of shouldering debts of up to US$25.5 billion. It is already good to be able to achieve such results.
The LCD industry is also a high-risk, high-investment, high-tech, narrow-diameter industry. There are not many companies that the world market can accommodate.
An advanced production line often costs billions of dollars to invest, and equipment depreciation must be completed within one and a half years, and no more than two years at most.
what does that mean?
This means that the capital must be repaid within one and a half years. If the delay is longer, it may form a heavy debt burden and delay the development of the enterprise.
The electronics industry is developing so fast that it is like a rocket taking off.
The LCD screen production line has changed through three generations in just five years, from the third generation production line in 1996 to the fifth generation production line in 2001 and the planned sixth generation in 2002. The speed is dizzying.
.
Where is the time for you to pay back your money slowly?
As the leading company in the entire industry, Huanghe Technology Group is still like this. You can imagine how miserable other LCD panel companies are.
Japanese panel companies as a whole are still stuck at the third-generation level. None of the high-generation LCD panel production lines have been put into production. The only exception is serious overall losses and production reductions to varying degrees.
It seems that Japanese capital has adopted overall strategic contraction measures, and the direction of technology export is towards Taiwan.
Among Korean manufacturers;
Samsung has two fourth-generation lines and does not have the ability to invest in the next generation of LCD screen production lines. The large-size LCD screens needed by the company have been imported from LG and Taiwanese companies, and the gap in capabilities in this area has become larger.
LG Group owns two fourth-generation lines. After jointly establishing a joint venture with the Dutch company Philips, it gritted its teeth and invested in a fifth-generation line, which is now close to being put into production.
Most of the Taiwan-funded manufacturers have fourth-generation lines. Chunghwa Picture Tubes and AUO have invested in fifth-generation lines with the support of Japanese capital, which are expected to be completed and put into production by the end of 2002.
In the competitive field of the world's LCD manufacturers, generally speaking, they all lag behind the first to second generation level of Huanghe Technology Group. Now it depends on who falls first.
Wang Yaocheng's goal is to take down half of the LCD panel companies, bloodbath the entire market, and achieve the goal of reshuffling the market as soon as possible.
The market gaps left by these enterprises were filled by Huanghe Technology Group without hesitation.
For the rest of the time, you can enjoy huge profits with peace of mind.
This abacus is a good one. Can it achieve the desired effect?
Only God knows.
in 2001
Atlantic Jinko Group, which is in the whirlpool of the storm, performed well while carrying forward the heavy load.
As a global leader in chip production, Atlantic Jinko and its wholly-owned subsidiary Korean Hynix accomplished the important task of suppressing competitors while still earning a profit of US$1.35 billion, which is extremely rare.
You know, Atlantic Jinko is burdened with loans of up to 43 billion US dollars.
Among them, two are investments in ten-inch wafer fabs that have just started production, and two are investments in 12-inch wafer fabs that are being developed with debt.
The investment scale of these two 12-inch wafer fabs alone exceeds 26 billion US dollars, which can be described as a truly massive investment.
From this perspective, Atlantic Jinko's revenue in 2001 was still very good.
One year's huge equipment investment and depreciation provisions amount to tens of billions of dollars. Excluding labor, taxes, and water and electricity costs, it is still possible to obtain a profit of 1.35 billion U.S. dollars. You can imagine how difficult it is.
This is despite all efforts to suppress chip production prices. Once you let go, making money will really be faster than printing money.
High-tech, high-input, high-output, and high-risk cyclical industries deserve their reputation.
Tasted the sweetness.
The consortium continues to invest tens of billions of dollars in Malaysia, purchasing a large area of land to build two eight-inch wafer fabs, which are expected to be put into production in mid-2002, and have reserved a vast land reserve for subsequent development.
Corning, whose performance has been stable, received stable income of US$3.7 billion in 2001 based on share dividends, which is as stable as ever.
HSBC, which has integrated and digested the results of mergers and acquisitions on a large scale, accrued US$17.7 billion in bad debts throughout the year, and its huge scale contributed to a pitiful profit of US$4.4 billion.
Not a penny of this money can be contributed to the consortium, and it is not enough to supplement the bank's liquidity.
therefore
HSBC plans to issue new shares on a large scale in 2002, and is initially expected to raise US$40 billion. It is still in the process of planning.
In the past two years, HSBC has made every effort to digest the results of expansion, consolidate the foundation of the bank, and comprehensively promote a modern lean management system.
Throw away your baggage and travel light.
Therefore, in 2002, a similar amount of bad debt losses will still be provided.
It is planned to take three years to dig out the abscess, and HSBC will be truly reborn and show the true style of the core enterprise of the consortium.
All its companies, except high-tech Internet companies with high valuations and low profits.
The most handsome guy in 2001 is still Atlantic Business Machines.
Under the control of President Yu Chengde, this wholly-owned subsidiary is still developing steadily, contributing a net profit of US$36.6 billion throughout the year, making it a true cash cow.
The global personal computer market is expanding rapidly. In 2001, the total market volume reached 145 million units, but the overall market size is still around US$258 billion.
Compared to a few years ago, there is no significant expansion.
This is due to the fierce competition in the personal computer market and the rapid advancement of electronic technology, which has brought about a comprehensive upgrade of personal computer products and portable computer configurations, and a sharp drop in product prices.
This increase and one decrease reflect the biggest feature of the personal computer market;
There is no price increase for increasing the quantity.
The overall market size has nearly doubled, and the total sales amount has almost stayed at the same level.
This market structure has also had a huge impact on Atlantic Business Machines. Its computer products and office supplies have experienced several rounds of substantial price cuts, and their profitability has shrunk significantly.
Throughout the year, more than 53 million units of OPPO brand computer products were shipped, with overall profits of US$11.5 billion. Compared with its peers, the company still performed well.
But compared to the historical peak;
Affected by the downward shift in the overall focus of the personal computer market, profits fell sharply by 67%. Market competition has further intensified, and it is no longer possible to maintain high profits.
As a traditional leading company in the world's office supplies field, Atlantic Business Machines Corporation continues to deepen and enrich its product line, achieving a profit of US$4.75 billion throughout the year and continuing to maintain its position as the largest company.
The most handsome guys appear in the mobile phone field;
The OPPO brand V3 mobile phone sells well all over the world, with more than 68 million units sold in one year. Together with the group's other series of mobile phone products, OPPO brand mobile phone shipments reached 92 million units a year, contributing more than 20 billion US dollars in net profits.
It can be said to be a powerful tool for attracting money.
This Motorola V3 mobile phone in the original world was originally a hit product. In three years, 140 million units were sold around the world. In a period when electronic products were updated every few months, it can be said to be a hit product with a long life.
now
The OPPO brand V3 mobile phone is about to become popular. Various personalized modified versions are emerging one after another, which not only enriches the product line, but also greatly promotes mobile phone sales.
To this day, the V3 mobile phone is still the star of the OPPO brand, contributing more than 1/3 of the entire group's profits.
This phenomenon has attracted great attention from President Yu Chengde;
As a large multinational company, it is definitely unhealthy for the entire group's profit performance to rely so much on one popular product.
therefore
Atlantic Business Machines' wireless communications division is planning to launch three blockbuster products to replace the popular V3 mobile phone market position and continue to bring stable revenue to the group.
Taken together
In the past 2001, excluding large expenditures on corporate mergers and acquisitions, the consortium's cash pool has steadily grown to US$42 billion, and the overall financial situation is healthy and orderly.
The first fiscal quarter of 2002 is coming to an end, and the consortium companies will still contribute revenue.
By the second half of the year, the consortium's cash pool can steadily grow to US$70 billion, enough to cope with a large-scale cross-border merger and acquisition.
In Wang Yaocheng’s view;
Mergers and acquisitions of US-owned telecommunications companies do not require full ownership, and it is actually impossible due to the sensitivity of the industry.
In the early stage, it is enough to control a simple majority, so the scale of M&A investment will not be large.
In the later period, by gradually expanding investment in fixed facilities and fiber optic cables, we gradually took control of the absolute controlling stake and completely brought it under our control.
The best solution is... try not to touch the sensitive nerves of Americans and complete the integration quietly.