Chapter 273: If it's not used as military spending, it must be used as reparations

Feiyan Technology is what Li Dongling uses to charge into NASDAQ to harvest leeks. Now there is no need to worry about performance. The rest depends on fate and timing.

Although mini radios cannot become a mainstream appliance industry, just like digital cordless phones, they will still exist for ten or so years without any problem. It is estimated that it won't be until the smartphone era arrives that the era of mini radios will completely end.

And for the multi-functional emergency radio, to be honest, I wouldn't dare say it won't be eliminated in a hundred years, but at least within twenty or thirty years, this kind of emergency radio will have a market.

Emergency management departments around the world will be the largest purchasers of Feiyan Dolphin radios. This thing belongs on the list of essential household emergency items. Global emergency departments will definitely purchase it as one of the emergency devices to store and distribute to households.

Relying on these orders alone, in the future, Feiyan Technology only needs to continuously upgrade the Dolphin's functions and performance, and orders will be received continuously. After all, the Dolphin radio's performance was verified during the last American hurricane; it is reliable at critical moments!

Relying on mini radios, Feiyan Technology's performance doesn't need to be worried about. Then, it depends on how big a slice of the pie Feiyan Technology can get in the internet era.

"Netscape, which makes browsers in America's Silicon Valley, is about to go public. After Netscape goes public, if it can set off a frenzy in the internet era, then for Feiyan Technology, it will be the best opportunity to go public!"

"What?!"

By that time, compared to the net worth brought by Feiyan Technology, the salaries, bonuses, and rewards of any other company wouldn't count for anything at all when compared to Feiyan Technology's equity.

Li Dongling said to Hu Zixian. As soon as these words were spoken, the faces of Ren Yuefeng, Yao Luoying, and the others in the conference room couldn't help but show surprised expressions. Li Dongling's actions seemed to be in response to a major event.

In the period when overseas companies had not yet imposed a technical blockade on the country, Dongling High-Tech used a large amount of profit for this R&D, which was not understood by everyone. There were even voices of ridicule, thinking that Dongling High-Tech was fishing for fame and worrying about nothing, or deliberately creating gimmicks to attract attention with the name of domestic goods. Because in the previous dozen years, although foreign countries often raised prices on technology and equipment, they didn't say they wouldn't sell to the mainland.

This time it was Hu Zixian's turn to be stunned. To be honest, hoarding cash flow to maintain 19 months of operations, he felt, was already not low. Looking at domestic peers, which peer company could retain cash flow to maintain more than half a year, would be considered to have risk awareness. Dongling High-Tech had hoarded quite a lot of grain, but now, Li Dongling actually still thinks it's not enough.

Dongling High-Tech's current cash flow is such that even if it encounters special circumstances, and all of Dongling High-Tech's businesses are not making money, it can still continue to maintain R&D and pay salaries to staff, holding on for 19 months.

The investment in these three major areas accounts for over 78% of Dongling High-Tech's annual expenditure!

"Starting this year, Dongling High-Tech needs to prepare more cash flow to deal with risks that may come in the future. In addition, starting from the second half of the year, Dongling High-Tech's Hong Kong headquarters can use mortgage methods to borrow USD loans with a term of more than three years from banks in Hong Kong and overseas in Japan, Siam, Korea, and other places!"

Hu Zixian recovered and asked Li Dongling, "Then, how much cash flow do we need to prepare?!"

Dongling High-Tech's investment in technology is led by Li Dongling. In this technological age where "buying is better than making, and renting is better than buying" is prevalent, Dongling High-Tech would rather spend a large amount of funds to cultivate R&D teams and self-develop components and equipment, which seems quite alternative.

Only when it flips the table will various rogue means emerge one after another, just to suppress the opponent's company. At that time, people will know how rogues play. If there is no backup preparation at that time, I am afraid it is really possible to be strangled to death, or kneel down to beg for life, acting as a dog for the other party, just to survive...

Li Dongling is unwilling to see Dongling High-Tech, which he built with his own hands, encounter this one day, being strangled by the neck, forced to kneel down, and even paying huge fines to beg for life. If there is this money, if it is not used as military spending, could it be used as reparations?!

Similarly, now Li Dongling would rather spend money on R&D than one day kneel down to hand over the industry in his hands to the other party, and pay a large fine to survive on the other party's mercy.

Dongling High-Tech's annual investment in technology now accounts for about 8% of revenue. It is already the company with the highest R&D investment in the domestic technology industry, bar none!"

Ren Yuefeng thought hard for a while, but really couldn't think of any major trouble Dongling High-Tech has recently that needs so much cash flow, and couldn't figure out what major events have happened recently.

But this time, after Hu Zixian finished speaking, he thought everyone was ready to adjourn the meeting, and half of his butt had left the seat, when he suddenly heard Li Dongling's words.

Hu Zixian said these things as a matter of routine. Every time such a full executive meeting was held, Hu Zixian had to report it so that Li Dongling, Ren Yuefeng, and others would be clear about Dongling High-Tech's finances. Although Li Dongling held the approval power for finances, he rarely intervened in these matters.

The act of chasing internet concept stocks is something that, in the previous life, had already been played out in America. At its most insane, it was claimed that everything could be "internet-ized." Every industry in America was frantically chasing the internet concept because if they didn't, their stock prices wouldn't rise at all—they would even fall. Even Buffett, who adhered to traditional value investing and didn't play the internet game, saw his net worth stagnate during those years, and he was once mocked and labeled as "conservative."

Influenced by his own collapse in real estate speculation in Yazhou, Hu Zixian, who is in charge of Dongling High-Tech's finances, has cared about one thing most since taking office, and that is the obsession with cash flow, which has made Hu Zixian continuously push up Dongling High-Tech's cash flow reserves.

Similarly, before America started acting like a rogue, countless people regarded it as a beacon of civilization, a maintainer of world order, the hope of human future, etc.

Li Dongling's words made the executives of Dongling High-Tech present feel a jolt. They naturally understood what the opportunity Li Dongling was talking about meant.

Hu Zixian, who manages Dongling High-Tech's purse, said that an 8% R&D to revenue investment ratio might not seem like much in the later era of using 25% or more of revenue for R&D, but in this era, Dongling High-Tech dares to play like this, which is a precedent. How many companies dare not invest in R&D at all, just for fear of wasting money, or that R&D is a bottomless pit that will drag them down.

"Dongling High-Tech's cash flow is still not enough!" Li Dongling said to Hu Zixian again.

"Feiyan Technology's Himalaya radio needs to be developed as soon as possible. How its functions are and what the user scale is are secondary. These can be improved in the future. The key is that Feiyan Technology must become an internet concept stock!"

In terms of technology, it is mainly led by the technical department of Dongling High-Tech headquarters, as well as Dongxin Semiconductor and Dongfang Optoelectronics. The promotion channels are Focus Media, and the sales channel is the overseas Wanjia Appliance City.

"Dongling High-Tech's cash flow in the account can ensure that in the event of problems in all business lines, Dongling High-Tech can continue to support it for 19 months with current expenditures. If expenditures are reduced, it can support it for more than 24 months!"

"Not enough!"

Hu Zixian looked at Li Dongling, who was speaking, with some surprise and confusion, not knowing what Li Dongling meant by this.

"As long as it can go public, Feiyan Technology can develop car radios, car audio systems, and other products. In terms of performance, perhaps some articles can be written!" Li Dongling said.

"Bill Gates once said that Microsoft is always only 18 months away from bankruptcy. This is equally applicable to Dongling High-Tech!

If Feiyan Technology can get on NASDAQ, then everyone in the conference room can share in Feiyan Technology's equity, and their net worth can soar with Feiyan Technology's stock price, even achieving financial freedom.

Let Dongling High-Tech solve the trouble within 19 months. If they grit their teeth and reduce some expenditures, they can hold on for another two years.

Dongling High-Tech spends so much money every year on self-development, which is like "persecution delusion." If components were purchased from overseas, then perhaps a large amount of R&D expenses could be saved. If that money were distributed as dividends, or split between major shareholders and management, or at worst distributed to staff, wouldn't it be fragrant? Instead, it is invested in R&D and wasted. There are quite a few people who have this view now.

Although Li Dongling nominally said it was to guard against troubles Dongling High-Tech might encounter and to hoard a large amount of cash flow, this obviously tossing movement is a bit too big.

As long as it can get on NASDAQ, there are too many opportunities to harvest leeks. Li Dongling can let Feiyan Technology make MP3s, repeaters, reading machines, and other products. There are plenty of ways to make Feiyan Technology's performance look incredibly bright, making it a rare big bull stock in performance among the NASDAQ internet concept stocks that are generally losing a mess. Then the stock price won't soar, and the leeks from Wall Street institutions and the global investment industry won't be screaming to take over the market?!

"Currently, Dongling High-Tech's main investment is still mainly concentrated in technology, promotion channels, and sales channels."

This perhaps cannot be blamed entirely on them. After all, people have beautiful expectations for unknown things and people. Before a rogue shows its true face, before it acts like a rogue to the victim, perhaps the impression of the rogue still stays in the impression of a Jianghu big brother, righteousness first, helping brothers, and talking about Jianghu morality. But when a rogue acts shamelessly, you know what kind of goods the rogue is. A hooligan can make an innocent family suffer a devastating disaster!

"Starting from this year until the year after next, Dongling High-Tech's Hong Kong headquarters needs to prepare at least 3.5 billion or even more USD!"

Li Dongling said. In more than a year, Soros, that giant crocodile, will bring a group of hyenas to sweep Asia. Dongling High-Tech also needs to prepare in advance. Of course, if it can harvest some leeks while protecting itself, that would be even better.

(End of chapter) ===== CHAPTER 274 =====