Chapter 455: Strategic investment

At the end of December 1999, Zhiduoxing Group held the year-end board of directors to summarize this year's achievements and make detailed plans for next year's development.
Zhang Weiguang sat on the throne, with Zhang Yang and Kurishenko on the left and right, with other executives in order.
"Everyone, this year has been a very successful year for Zhiduoxing Group. We reorganized several companies to form a group company and listed on the New York Stock Exchange. Not only did we raise $6 billion in capital, and the stock price did not fall. , Still growing."
"Last year, we were rated as the leader of the gaming industry by many media. Some minority media disagreed, believing that our profits are not as good as Nintendo, we are not as influential as Nintendo, and our heritage is not as good as them."
"But this year, the revenue in the game industry exceeded 8 billion US dollars, and the profit margin reached 15% for the first time, with a net profit of about 1.3 billion US dollars."
"Whether it's revenue or net profit, we are the first in the industry. At present, we are also a rider in terms of word of mouth. The only thing that is similar to us in performance is Uranus. And Uranus' sales are not enough for us. A quarter of G2, we are still Zhiduoxing GMINI, this sales are also growing rapidly."
"Of course, our revenue and profits in educational electronics products are also growing rapidly. Now our products are not only sold in the Chinese market, but also entered the Eastern European market. Europe and the United States also have agents."
"This part of the profit growth is due to the popularity of the product of the repeater. Now the market of ordinary computer learning machines is shrinking. From next year, it will go downhill. The Wenquxing electronic dictionary and repeater will continue to grow. The main revenue direction of the company's educational electronic products in the future."
"Our overall net profit will exceed US$1.9 billion this year, including game console business, education electronics business, hardware investment business, patent licensing business, product agency business, etc."
"However, next year, it will be a more critical year for Zhiduoxing Group. Whether we can hold the industry leader and whether we can make the company's market value exceed 20 billion US dollars will all happen in this year."
"There are many people who do not understand the company's listed stock offerings and think that the company is not short of money and there is no need to go public. Even if it is listed, there is no need to go to New York, Hong Kong or the mainland."
"But if you don't go to New York, you won't be able to raise so much money. Without so much money, you can't get the company to buy shares in Chaowei Semiconductor, increase the number of shares in Eagle Weida and SanDisk, and you can't invest in LCD panel companies ."
"I know that many people have a lot of confusion about the company's investment. Our main business is game consoles. Investing in game companies, everyone can understand this. What everyone does not understand is why they should invest in the hardware industry. Like Nintendo, they are all Cooperating with other hardware companies can reduce hardware expenditures, make the company more resistant to risks, and guarantee a higher profit margin."
"But you have also seen that because we invested in SanDisk, the company's handheld uses the latest memory card, which exceeds Nintendo's GB series."
"Because we invested in Eagle Weida, we have a better graphics card, which is very prominent in 3D performance and weakens the influence of the CPU. This ensures that even the sloppy PS2 is better on the CPU. 3D performance is definitely not much better than us."
"But it is undeniable that the CPU is the core of an electronic product, and this part of the expenditure is also the highest. If we have a CPU with better performance and a cheaper price, then the cost of our game console can also drop a lot, allowing We better occupy the market."
"So we only invested in Chaowei Semiconductor, and in the future we plan to promote the merger of several equity hardware companies to become a comprehensive hardware company and implement the same interface standards."
"Of course, Mr. Kurishenko's company also invested in sound card and memory business, and also included some basic electronic components."
"Everyone will find that when our companies are added together, we can directly assemble a computer. In fact, our game machine is an electronic computer, but in terms of functions, games and videos are strengthened."
"Many people think that our products can only be used to play games. In fact, our products can also be used to play video discs and use them as DVD players."
"It is precisely this function that gives us more advantages when expanding the market in Europe, and this advantage is still expanding."
"It's a pity that there is also an audio and video card on the PS2, which is said to be able to be used as a DVD player, but they are not compatible with VCD discs because they are not patented."
"From these, we can see that our investment is for the company's products to develop faster in the future. At the same time, the investment industry can also have other application directions, not just for game consoles~www.mtlnovel .com~ These investments are the company's strategic investments, including the LCD panel companies that the company has been in contact with during this time. Some people will wonder, what does this have to do with the company's development?"
"Some people may know, some people don't know yet. The company's next step is to launch two peripherals. One is a power cord with battery function, which can be used as an external power supply to power Zhiduoxing GMINI."
"The other one is a portable LCD screen, a small screen with a big slap, but no domestic company can produce it. We also purchased it from Treasure Island and South Korea."
"These two products can turn Zhiduoxing GMINI into a portable game console and an on-board game console. The addition of functions will increase the market."
"And we got the news that the company is also developing this. We have to take the lead and occupy this market while suppressing the development of competitors."
"The company's strategic investment is not to see any benefits in a short period of time, and the capital invested will be a lot, and even continuous investment in the future, it is possible that those companies will also lose money."
"But from a long-term perspective, this will play a decisive role in the company's development. It will help us to have lower costs in the future and not be subject to other companies' checks and balances. At the same time, we can do better product research and development and improve efficiency."
"The long-term development of the company must be considered from a strategic perspective. Don't just pay attention to the gains and losses in front of you. Well, I will say so much today. The rest of the things will be handed over to the company's president Zhang Yang."
Zhang Weiguang picked up the tea cup on the table, he said what his son told him, and he continued to say the rest, he could only play it by himself, or forget it.
Zhang Yang glanced at his dad, you have finished speaking, what would you tell me?