My Age of Investment

After finalizing two investments in Rice and Meituan, Xia Jingxing organized and held the 2009 year-end summary meeting of the two major enterprise groups, Domestic Holdings and Fuxing Industry, and formulated development goals and plans for the two companies in 2010.

In the past year, Renaissance Industries has achieved numerous milestone-level breakthroughs.

For example, Fuxing Mobile achieved sales of 26.62 million units in 2009, and its annual revenue reached RMB 100 billion for the first time.

If you add in the Honor mobile phone, which has already launched its first product on the market, and its tablet computers and other businesses that are ready to launch, Fuxing Consumer Electronics Group has firmly entered this year's Fortune 500 list, and it is not the kind that is at the bottom of the crane. Get a good ranking.

Benefiting from the high pricing of mobile phones and the divestment of some R\u0026D projects, such as the heavy burden of SoC chips being left to Fuxing Semiconductor, Fuxing Mobile’s net profit margin, or its ability to attract money, was immediately reflected, with a profit figure of about 400 About 100 million yuan.

With such strong profitability, it is easy to raise several little brothers from the same mother, Honor mobile phones and Fuxing tablets.

On the premise of ensuring the healthy development of its own business, the excess profits of Fuxing Mobile-Fuxing Consumer Electronics Group will be handed over to the parent group Fuxing Industrial to support the development of other sub-groups.

Compared with the Fuxing Consumer Electronics Group, which has been completely on the right track and has begun to take off, the other major sub-groups and business groups appear to be much mediocre, and many are still in the stage of burning money.

For example, the aerospace business group has become self-sufficient as DJI's drones have grown in popularity and sales.

But the rocket company suddenly recruited a large number of Russian and Ukrainian experts, and later announced the launch of a series of projects, such as purchasing and assembling rockets, building launch bases, and officially launching the first rocket in 2010...

It is foreseeable that rocket companies will spend a lot of money in the new year.

DJI is barely able to support itself, let alone support its little brothers like Fuxing Mobile.

Calculated by date of birth, although Rocket is bigger, he is actually the younger brother of DJI.

In addition, it is almost certain that the aerospace business group will not be able to produce its own blood in the next ten years. During this period, it can only rely on the eldest brother of the Fuxing Industrial Group for blood transfusions.

Also in need of long-term external blood transfusion are the cloud and smart business groups.

Fuxing Cloud has been developed and is building server centers in multiple cities and regions across the country.

As a test product, Hainei.com became the first company in China to move to the cloud.

The current feedback from users is good, and next step is to migrate Ali to the cloud.

Just having two customers, Hainei.com and Ali, is definitely not enough. Fuxingyun’s mission in the new year is to find more partners to promote its own cloud services.

The cost of building large-scale server centers, optimizing and upgrading cloud services, large R\u0026D expenditures, and R\u0026D team salaries all need to be amortized.

It will take at least a few years to reach the profit equilibrium point.

The development of Fuxing AI is much more difficult than that of Fuxing Cloud. Fuxing Cloud has at least begun commercial use, but smart voice assistants have not yet reached the level of commercial use and are always being explored in the laboratory.

The research and development of autonomous driving has also had a difficult start. Without several years of continuous investment in research and development, it can't even be built in the laboratory.

However, the two major business groups of aerospace, cloud and intelligence pale in comparison to Fuxing Semiconductor’s ability to burn money.

After Huaxin International merged into Fuxing Semiconductor as a whole, and successively launched the acquisition of several wafer fabs originally operated by Huaxin International, Fuxing Semiconductor has shouldered a huge burden.

Sky-high fab depreciation, huge fab capacity nowhere to be released, and backward manufacturing processes are all major problems facing the revival of semiconductors.

The good news is that SoC chips and IoT chips will be officially put into production this year. Coupled with the baseband chips that continue to sing and perform, Huaxin International's wafer factories will not waste production capacity.

However, in order to achieve full production, the entire industry chain from chip design to terminal product sales needs to work together to break the deadlock, gain market share from various competitors, and then hand over chip manufacturing orders to our own companies. Come and do it.

In short, Fuxing Semiconductor is also a bottomless pit, maybe the biggest bottomless pit, and there is no hope of profitability in the next few years.

The situation of FAW Group is slightly better, but the situation is similar to that of the Aerospace Group, which is a small horse pulling a big cart.

Wuling Motors' meager profits cannot support Fuxing Automobile's research and development, early marketing, production capacity ramp-up and other tasks, so the parent group can only provide long-term assistance.

The new energy business group currently has three main businesses, 3C products, such as consumer batteries for mobile phones, tablets, and laptops, automotive power batteries, and solar energy.

At present, only the consumer battery business is profitable, and the latter two are still not very popular. While focusing on research and development of key technologies, they are waiting for the wind.

It will take at least a few years for the trend to come.

Apart from Fuxing Consumer Electronics Group, the one with the best development is Fuxing Smart Home Group.

Although the traditional home appliance business ranks second-rate, it cannot support a complete range of products. A small amount makes a lot, and the revenue is tens of billions a year.

The product is relatively low-end, and the profit is a little slim. The net profit margin is only a few percent. Compared with Fuxing Mobile, it is only one-tenth of others. All the money earned is hard-earned money.

In view of this, Xia Jingxing formulated a cornering overtaking strategy for Fuxing Zhijia.

For example, the first smart home product will be released this year, and it will also use this as an opportunity to enter the high-end market and try to enter European and American countries.

In order to change the backwardness of the home appliance manufacturing business, Fuxing Smart Home Group also established a subsidiary Digital Industry.

At present, this company has integrated the resources of all home appliance manufacturing factories under Fuxing Smart Home, and has also cooperated with Fuxing Research Institute on several large R\u0026D projects, such as industrial Internet and industrial cloud platform.

In short, digital industry is a test field for Fuxing Industry in the field of integration of industry and technology.

If the exploration goes well, in the future the manufacturing of the group's mobile phones, tablets, laptops, automobiles and other businesses will all be integrated into the digital industry and a series of smart factories will be established.

Of course, it is still in the initial stage of exploration, and there is no shortcut to be found. We can only take it step by step and accumulate experience.

This is the general situation of Fuxing Industry. Among the seven babies on a vine, currently only Dawa Consumer Electronics, Erwa Home Appliances business has jumped out of the gourd, and the other five gourds are still in the process of being nurtured.

Fuxing Industry is like a white-bearded grandfather. On one hand, the first and second sons need to go out to fight monsters and ensure the safety of the rear; on the other hand, they need to water and fertilize the other five gourds.

Compared with the grand-scale Fuxing Seven Sons, the pattern of domestic holdings is slightly smaller.

After adding two new King Kongs one after another, Domestic Holdings now owns ten King Kongs.

The five major platforms of Hainei.com, Weibo, WeChat, MOMO Voice, and Domestic Mailbox form a social matrix to attract users and continuously expand the traffic pool of Hainei Holding.

The five major players of Domestic Literature, Domestic Games, Domestic Pictures, Tudou Video, and Kugou Music have built a pan-entertainment matrix to provide monetization channels for the traffic absorbed into Domestic Holdings. They are also enriching the services of the Domestic Holdings system, enhancing the brand and increasing growth. Influence.

The layout of the Ten King Kong is not without its disadvantages. It exposed Xia Jingxing's ambitions for China's Internet too early, frightened Qianxun and Penguin, and promoted the alliance between the two companies.

In order to give the brothers in trouble some color, Xia Jingxing planted a series of bombs.

For example, he encouraged 360 to stir up trouble, be the pioneer, and also took the lead in forming the Internet Video Alliance. In addition, Zhang Zhao had hoarded the online film and television copyrights under Xia Jingxing's instructions over the years. A two-pronged approach was used to cut off the high-quality content of Qiguo Video to the greatest extent. supply.

Once there is no high-quality content, such as classic movies, new movies, and popular TV series, it will not work no matter how much traffic Qianxun directs to Kiwi Video.

Of course, Kiwi can also pirate videos, and Xia Jingxing welcomes them to do so. Tudou always arranges people to keep an eye on any trouble with Kiwi's videos. Once there is any action, the Internet Film and Television Alliance will speak out for justice.

Not to mention these counterattacks, the main goal and task of Domestic Holdings this year is to launch WeChat, strengthen WeChat, and send WeChat overseas.

Speaking of WeChat going overseas, under Xia Jingxing’s special instructions, Zhang Yong has sent people non-stop to build a branch in Singapore. In the early stage, he will mainly promote the release of games and MOMO voice. Once he has established a foothold, he can immediately turn into a WeChat offensive. Bridgehead in Southeast Asia.

In addition, it is worth mentioning that Haihai Holdings’ revenue this year exceeded 10 billion for the first time, and it finally looks like a giant.

The reason why the revenue exceeded 10 billion so quickly is that domestic games have made great contributions, contributing 60% of the entire group's revenue, which is 6 billion yuan.

Although this level of revenue is not comparable to that of Fuxing Industrial, a large company, the gross profit margin and net profit margin of the business are high. The net profit of the game business is almost 4 billion.

Relying on this large-scale profitable business, it directly wiped out the losses and R\u0026D expenditures of all other businesses, and even made a surplus of more than one billion.

Compared with Fuxing Industrial, which gave Xia Jingxing a headache, Overseas Holdings was simply a top student.

If there is no substantial cash burn in the future, Haihai Holdings will hardly need Xia Jingxing's capital injection and blood transfusion, and it already has strong self-blood production capabilities.

After the two conferences were held in succession, Xia Jingxing had a comprehensive and clear understanding of the development of these two core industrial groups in the country.

There is only one stumbling block standing in the way of domestic control and dominance. As long as we win WeChat, we will have the power to strengthen Qin. We can reach the throne in just a short time, and we can even go further than the penguins in the previous life - such as going overseas and unifying the network. video industry.

In contrast, Xia Jingxing was more worried about reviving industry.

Currently, most of his focus has shifted to reviving industry.

He controls countless companies at home and abroad, but there are only three companies that he actually founded, Facebook, Vision Capital, and Renaissance Industries.

The three companies together witnessed his personal struggle history and also represented the three stages of his venture capital career.

From starting a business to accumulating capital, to investing in innovation and excellence, and then concentrating all resources on the industrial platform of Fuxing Industrial.

In fact, with its development to this point, Fuxing Industry can no longer be described as entrepreneurship and investment in the conventional sense.

It’s more like a venture capital complex.

Initially there was only one Fuxing mobile phone. Later, with continuous acquisitions, it gradually evolved into seven Fuxing companies, spanning consumer electronics, home appliances, semiconductors, automobiles, new energy, aerospace and cloud computing, artificial intelligence, and many other cutting-edge technologies. industry.

Behind each sub-group and business group is one or more heavyweight companies that have extraordinary influence in the industry and have the opportunity to become the world's number one.

When each champion company follows his baton to arrange and combine, and engage in deeply integrated cooperation, the sparks produced by the collision will surely be extremely bright.

Why is it called a venture capital complex?

At present, Fuxing Qizi has cooperated with Vision Capital to create a mobile phone industry chain and a semiconductor industry chain. In the future, it may also create a new energy industry chain, automobile industry chain, smart home industry chain and many other industry chains.

The companies under Fuxing Industrial are leading companies, but it is impossible for one company to do everything. It also needs partners and needs to build an ecosystem.

And those partner companies that join the business ecosystem of Fuxing Industrial can obtain investment from Vision Capital and achieve good development.

Such a layout means that the development dividends of multiple industries and industrial chains can be reaped from the head to the tail.

As the industry leader, Fuxing Industrial’s subsidiaries are fish heads;

The countless upstream and downstream companies invested by Fuxing Industrial Industrial Investment Fund, Mobile Phone Industrial Investment Fund, and Vision Capital are equivalent to fish tails.

Throughout the entire development process, many domestic blank industries can be filled, such as the rocket and lithography machine industry chain;

And those weak industries can be strengthened, such as semiconductors;

As for industries that are already developing well, such as home appliances, they can follow Fuxing Industrial to go overseas - as long as they are connected to the Hongmeng system, they can still consider giving their peers a ride. After all, the landscape needs to be big and the vision needs to be broad.