My fintech empire.

Chapter 1232 [That’s because the stars didn’t really exert their strength! ]

At this moment, Fang Hong had been at the headquarters of Xingyu Technology for about an hour, and he had a general idea of ​​the company's layout progress in the new energy vehicle business. Qin Feng's business layout in this area was very accurate at the strategic level and met Fang Hong's requirements. He had nothing to guide, so he just let Qin Feng take the team to do it.

What is certain is that Xingyu Technology’s new energy vehicles are unlikely to be available on the market this year, and it may not launch its first product next year.

As the head of the company, Qin Feng is very confident. In the automotive industry, he does not think that the new car manufacturers are the future competitors of Xingyu Technology, nor do he think that traditional car manufacturers are the future competitors of Xingyu Technology in the field of new energy vehicles. In the past year, he has studied major automobile manufacturers, both domestic and foreign, and Qin Feng thinks that only BYD will be a strong competitor.

But while he is confident, he is not arrogant and he has a respectful attitude towards this industry. Therefore, Qin Feng is not in a hurry to launch the product. He follows the idea that taking it slow is the fastest way.

If you really want to promote it, Xingyu Technology can be promoted now, but it will appear mediocre.

If it is a start-up new energy vehicle company, it will definitely be seen as a potential stock by the market, and will be more tolerated and even receive a lot of praise.

But you are Xingyu Technology, the high-tech giant that developed the STAR series of smart phones that once crushed Apple's iPhone series of phones, forcing the other side to resort to tricks to suppress you. You have become the face of domestic technology giants and a synonym for high technology.

Once a new product is launched, not only will the market be paying close attention to it, but it will also be viewed with extremely high psychological expectations and be more demanding. If the final conclusion is that it is mediocre, it will disappoint people and attract countless ridicules.

Being small has its advantages, and being big has its difficulties.

Qin Feng knows that consumers now have high hopes for Xingyu Technology, especially the die-hard fan base, and the Chinese people also have high hopes for it, which also means more stringent requirements.

The resounding brand of Xingyu Technology cannot be destroyed. With so many people paying attention to its cross-border car manufacturing, there are also many people inside and outside the industry who want to make fun of Xingyu Technology. As the head of the company, Qin Feng is clearly aware of these.

The first product must not be rushed into the market. It is not a big problem if it is released a few years late. As long as the product itself can stand the test of the market, it will soar as soon as it is released.

Finally, Qin Feng looked at Fang Hong: "One more thing, the company's capital chain may be a little tight this year..."

Fang Hong said without thinking: "Then let's borrow money, issue corporate bonds. How big is the funding gap?"

Qin Feng immediately replied: "About 300 billion."

Fang Hong nodded and said, "It's not a small amount, but it's not too much either. Issue corporate bonds to borrow the money from the market. If no one buys, Qunxing will cover the loss for you."

The statement that there is a big boss is certain. Xingyu Technology is going to issue corporate bonds, and there is no doubt that they will be 3A-rated corporate bonds. Ordinary retail investors cannot buy them, and they will be directly absorbed by large institutions. Many institutions will rush to lend money to Xingyu Technology.

Because everyone knows and firmly believes that Xingyu Technology will never breach the contract, not to mention that there is a big brother, Qunxing Capital, behind it, so this deal is a sure win.

Fang Hong did not let Qunxing Capital directly provide capital transfusion for Xingyu Technology, but asked Qin Feng to borrow money from the market. What did Qunxing provide? Of course, it was credit support. With your guarantee and credit endorsement, people can lend money with confidence.

For Qunxing Capital, 30 billion yuan of funds can be taken out at any time without any pressure.

However, Fang Hong always adheres to the principle that if he can use other people's money to do his own things, he should try not to use his own money. This is like giving others a sip of soup and making more friends. Keeping his own money in his hand means that the expectation of the ability to provide a safety net is always there.

Xingyu Technology's profitability is not weak at all. Although its performance in 2016 did not maintain a strong growth momentum, it still maintained positive growth. The company's annual revenue last year was 8215.56 billion yuan, a year-on-year increase of +5.98%, and its net profit was 522.12 billion yuan, a year-on-year increase of +12.26%, with a net profit margin of 6.35 percentage points.

As a leading high-tech company, the net profit margin is low, and Apple's profit far exceeds that of Xingyu Technology.

But the revenue scale of more than 8000 billion is also an astronomical figure. Where did so much revenue go? In addition to the daily operating expenses of the enterprise itself, the increased expenses include the after-sales service launched. In order to retain those old users, a lot of money is invested in after-sales.

Then the largest expenditure item is R&D expenses. The main reason for the rapid surge in R&D expenses is the entry into the new energy vehicle field, which has added a money-eating beast. In addition, the investment in the mobile phone business has not stopped, and the investment in chips continues to increase, etc.

Especially in the past two years, the scale of Xingyu Technology's R&D investment has soared significantly. In 2016, Xingyu Technology's total R&D investment reached a staggering 3221 billion yuan, accounting for 39% of the company's revenue.

Whether looking at the national or global level, R&D accounts for 39% of revenue, which is unparalleled and no other technology company can compare with it.

The absolute amount of R&D funding is an even more exaggerated figure. In 2016, Xingyu Technology was ranked first in global corporate R&D investment, and it was far ahead of the second place.

In comparison, Apple's R&D investment in the same year was approximately 556 billion yuan in RMB, excluding exchange rate fluctuations, which was only about 17% of Xingyu Technology's R&D investment in the same period.

This is also a major factor why Apple still regards Star Technology as its most threatening opponent. Although it does not necessarily mean that more results will be produced if more money is invested, there is no doubt that the probability of producing results will be greater if enough money is invested.

To a certain extent, large capital investment means more trial and error costs. Your funds can only support you to try and error once or twice, but I can have more than ten times of trial and error. To put it another way, the probability of a blind cat catching a dead mouse will be greatly increased.

Faced with Xingyu Technology's crazy obsession with climbing Technology, any competitor would be nervous.

At this moment, Fang Hong looked at Qin Feng and asked, "Is there still a funding gap for next year?"

Hearing this, Qin Feng said in a deep voice: "It's hard to say now. Whether there will be a funding gap next year depends mainly on whether the VR head-mounted display terminal equipment launched this year can bring new performance growth points to the company. To put it bluntly, it depends on whether it sells well. If it sells well, it can offset next year's investment budget."

The increased budget is still invested in research and development. Xingyu Technology's research and development funds are still growing, and the main growth item is new energy vehicles.

After a while, Qin Feng added: "Whether the head-mounted display terminals sell well depends on whether the content desert problem can be solved."

Fang Hong smiled and said, "Matrix Quantum will not let us down. I have already told Chen Yu that his second-generation AI model will be open source soon. In addition, GameBox will follow up on the development of the head-mounted display client, and several game companies acquired by Qunxing will also launch games online to cooperate and follow up on the VR version, such as "Minecraft" and other well-known games. All games suitable for head-mounted display terminals will be released to me."

Fang Hong paused for a moment and smiled confidently, "Estar Video is also following up and cooperating to develop clients and related applications to provide film and television content for your head-mounted display devices. WeChat also provides support in the internal payment and transaction system. Haha, no content? Content desert? That's because Qunxing hasn't really made an effort. Once Qunxing makes an effort, it can quickly create an oasis in this desert."

……

(End of this chapter)