Chapter 450 Highlights in the third quarter of 2003
Time passed by, and it was October 2002, the late autumn season, unknowingly.
Throughout the third fiscal quarter of 2002, all the companies under the consortium experienced collective growth, showing a gratifying situation.
Excluding the portion retained by the company, it contributed a net profit of US$25.6 billion in a single fiscal quarter, setting a record for a consortium in a single fiscal quarter.
Due to the huge expenditures of the consortium to acquire Samsung's semiconductor and LCD divisions, the originally depleted cash pool has been replenished, reaching a scale of US$32 billion.
Due to the rising price frenzy in the electronics and semiconductor industry, Atlantic Jinko, Hynix and TSMC all hit the jackpot and achieved a total net profit of US$8.98 billion in the third fiscal quarter, showing explosive growth in the money scene.
Looking ahead to the fourth fiscal quarter, the money picture is simply fascinating.
Among them
The world's DRAM chip market contributed 63.2% of the profits, totaling 5.675 billion US dollars, showing huge profits comparable to drugs. This was only a net profit of 8 to 9 months. It was really hard to make money.
Looking forward to 2003, this field alone may contribute more than 20 billion US dollars in monopoly profits. What a huge profit!
The chip foundry market has subsequently risen. Atlantic Jinko and TSMC together contributed a net profit of US$3.305 billion. They have made huge profits in this newly opened blue ocean, which has attracted widespread attention from the industry.
The outstanding performance of the three giants in the electronics and semiconductor industry pushed Atlantic Business Machines out of the top spot of the cash cow, ranking second with a single fiscal quarter contribution of US$4.771 billion.
Why consolidate the statements of the three giants in the semiconductor industry?
Isn't this bullying?
This is because, in the third fiscal quarter of 2003
The three giants of Atlantic Jinko, Hynix and TSMC have gone through dazzling mergers and acquisitions and reorganizations, and their asset transactions with each other are extremely frequent. It is a big project to clarify them one by one.
Atlantic Jinko swallowed up Taiwanese chip manufacturers UMC and World Semiconductor in one go, demolished three eight-inch wafer production lines and relocated them to Hynix Industrial Park in Malaysia for reorganization, and took over the application chip assets of Hynix Industrial Park in Malaysia.
TSMC reorganized China Microchip, which was also located in the Hsinchu Science Park, and Hynix swallowed up Samsung's semiconductor division worth US$40 billion, then changed hands and gave up the Hynix Industrial Park base in Malaysia. The mutual assets have undergone earth-shaking changes.
To truly calculate the mutual income and liabilities, it involves a lot of tedious accounting review work.
There are a lot of wrangling, the public is right, the mother-in-law is right, Chen Shi, the director of the accounting and auditing department of the consortium, has been made to complain constantly. This work will not be completed until at least the end of the year.
Wang Yaocheng, chairman of the consortium, makes decisions very simply. Once the arrangements are made, he just claps his hands and forgets about it.
It is a disaster to leave the job to the people below, for example;
The three eight-inch wafer production lines of UMC and World Semiconductor were demolished to the Hynix Industrial Park in Malaysia, which involved a lot of expenses. Is this part to be counted on Hynix or Atlantic Jinko?
How to share between each other, how to calculate, personnel expenses before and after internal asset transfer, etc., are all confusing and unclear.
As the presidents of their respective companies, Zhang Rujing and Yukio Sakamoto, two partners who used to have a very good relationship, are now quarreling with each other. The lawsuit has been filed all the way to Wang Yaocheng, and the plastic friendship has been completely broken.
In June 2002
Atlantic Business Machines Company has launched an improved version of the V3 mobile phone, V4. The built-in lens of the mobile phone has been upgraded from 300,000 to 1.2 million pixels, and the external OLCD display is larger, clearer and has more functions.
The V4 mobile phone has built-in Snake and Lianliankan games, and comes with high-quality headphones, so you can enjoy the game anytime and anywhere.
The pleasant ringtones have been expanded from 24 polyphonic to 32 polyphonic ringtones, with richer sound quality and better effects.
The memory has been greatly expanded, from the original recording space of 300 numbers to 2,000, and it supports short video shooting.
The V4 mobile phone uses an open Android system, which is particularly friendly to APP developers. The wireless Internet access is smooth without lag. It is the mobile phone with the best wireless network performance on the market.
The appearance design of the OPPO brand V4 mobile phone draws on Volkswagen's matryoshka strategy and makes minor improvements while retaining the essence of the V3's appearance.
Fashion elements are added to the design, the shape is more novel, it looks cooler, and it adds more functions.
In particular, the external display uses the world's first small-size OLCD liquid crystal display. Atlantic Business Machines Company called it "a technological advancement ahead of its time" and it was full of publicity gimmicks.
Based on the V3 mobile phone's sales of 140 million units in two years, the V4 mobile phone took over the baton from the former and continued to show strong sales.
Only in the third fiscal quarter of 2002
V4 mobile phone shipments reached 16.5 million units, and orders came in from all over the world, firmly occupying the world's high-end mobile phone market.
Fans of OPPO brand mobile phones have been queuing up all night to buy new products before they are released, creating a spectacular phenomenon-level news hot spot.
After repeated reports by the news media, the high-end image of the OPPO brand has been once again promoted.
The only criticism is;
The starting price of the V4 mobile phone is set at US$580, with the business version and premium version reaching US$780 and US$880 respectively. It was described as a "money grab" by the disgruntled public opinion media.
Even so, it cannot stop the love of OPPO brand mobile phone enthusiasts, who are proud to own a V4 mobile phone.
Facts have proved the success of the matryoshka strategy and it has been widely recognized by the market.
At this time, Atlantic Business Machines Company had its finger on the pulse of the market.
It is planned to launch the V5 mobile phone in the summer of 2004. The use of dual QVGA (resolution 240×320 pixels) screens is one of its biggest selling points. Both the inner and outer screens are made of 260,000-color TFT material.
The two screens are actually a double-sided OLCD, so although the viewing area is quite large, it does not consume that much power.
The resulting mobile phone has a very strong battery life, a higher screen resolution, richer colors, and stronger expressiveness, which is almost equivalent to the original Motorola V8 mobile phone from the same period in history.
The matryoshka strategy is very simple;
The appearance has been slightly improved, the screen is larger, the shape is more novel and in line with the trend of the times, there are more built-in functions, more memory, and richer music performance...
In fact, it remains true to its roots, it is still an ultra-thin flip phone.
The third-ranked consortium is Huanghe Technology Group. Based on the sharp increase in the price of LCD screens, Huanghe Technology Group has finally demonstrated its strong revenue capabilities.
Third fiscal quarter 2002
A subsidiary of Huanghe Technology Group
The LCD division contributed US$2.102 billion in profits.
Pacific Chain Electric Mall has more than 2,000 stores, contributing a net profit of US$966 million.
Panda Electronics contributed US$371 million in profits.
Playboy brand mobile phones contributed US$279 million, and Playboy brand clothing and luggage revenue contributed US$117 million in profits.
A total of 3.835 billion US dollars.
Take a closer look
After the price of LCD panels skyrocketed on August 2, as of the end of September, the LCD Division earned a total profit of US$1.179 billion in less than two months, which was more than the total of the previous seven months.
After all, it is the manufacturer with the most advanced technology and the largest production capacity in the world, accounting for more than half of the world's share.
On the basis of huge equipment investment in two fifth-generation production lines, Huanghe Technology Group can still obtain such huge profits. It can be said that its profitability is quite amazing.
The total investment in the two fifth-generation lines exceeds 10 billion U.S. dollars. Equipment depreciation needs to be accrued within 18 months. Excluding fixed costs such as labor, water, electricity, and taxes, equipment depreciation costs almost 600 million U.S. dollars per month. After these expenses are removed,
Talking about profits.
In the field of LCD panel production
The current price structure of Huanghe Technology Group is calculated in percentage terms. Raw materials, labor, water, electricity, taxes and other expenses add up to about 15%, equipment depreciation provisions account for 58%, and the remaining 28% is pure profit.
The enterprise retains part of the reproduction costs, and the excess is handed over to the consortium.
The production costs of Japanese, Korean and Taiwanese panel companies are slightly higher, almost double. Therefore, after the crazy price increase of 44%, they can not only recoup their equipment investment, but also make a full profit, and survive the disaster.
So, if the equipment depreciation accrual is completed after 18 months, isn’t the gain just pure profit?
Wrong.
Because every 18 to 24 months, LCD panels will experience a substantial price reduction. The price of a 32-inch panel that originally cost several thousand dollars will quickly drop to a few hundred dollars, thus entering thousands of households.
Market sales have grown rapidly.
At this time
The world's electronic market updates at an extremely fast pace. Only by eating soup can you get the maximum profit and maintain healthy growth of your company.
After taking a breath, Korean and Japanese countertop panel companies have launched their own development plans, investing heavily in fifth-generation and sixth-generation lines to increase advanced production capacity and prevent themselves from being left behind by Huanghe Technology Group.
The same is true for Huanghe Technology Group.
Today's 6.5-generation line technology has matured, and the profits recovered have not yet changed hands and been reinvested. There are also 7-generation lines, 8-generation lines, 8.5-generation lines, 9-generation lines, 10-generation lines...
If you want to stop and take a breath, you will be surpassed by your competitors immediately. You must keep running forward, investing, investing and investing again.
World market demand determines the iteration speed of the panel industry. A 42-inch TV sold for a peak of US$5,500, which is equivalent to more than 40,000 yuan.
More than ten years later, the same 42-inch LCD TV was worth less than a thousand yuan, and the panel was only four to five hundred yuan.
The difference is so huge that it is obvious.
After the depreciation of backward production line equipment is accrued, excluding raw materials, labor, taxes and land costs, everything is a net profit. Of course, there is huge room for price reduction.
The right to lower prices is in the hands of leading companies. If they want to maintain high profits for a longer period of time, they should lower prices later.
Wanting to suppress competitors, they cut prices before equipment depreciation accrual was over. This was the strategy adopted by Huanghe Technology Group in the past two years, which caused heavy losses to competitors and forced the death of a large number of companies.
So
The respite that the "Mainland Panel Purchasing Group" brought to Taiwanese panel manufacturers was time. When Huanghe Technology Group strangled them by the throat, they breathed precious fresh air.
If you want to kill them again, it will take more effort.