Chapter 399

Dongling Gao Ke is no longer the makeshift team it was a few years ago when it was just founded. Now, executive positions, especially department manager positions, are basically one person for one spot.

If a position becomes vacant, not only internally but also externally, many people are eyeing it. Once you become a department manager, not only is the salary plus bonuses and dividends basically starting at a million, but the power and status are increased by a large margin.

Duan Youli daring to take the blame is enough to show what his personality is like. He is not like Liu Jiande of the Xicheng Wireless First Factory who is slippery, but if it really comes down to it, his position as production department manager might encounter trouble, or even be lost.

"Now is not the time to talk about this. What is the situation with Little Smart mobile phone production capacity?"

Li Dongling said, which relieved Duan Youli. In fact, it was also an expression of his support for Duan Youli. Anyone with a discerning eye could hear that Li Dongling had no intention of blaming or replacing Duan Youli. Li Dongling was actually quite clear about Duan Youli's difficulties.

Hearing Li Dongling protect him, Duan Youli also breathed a sigh of relief. "Little Smart's sales volume exceeded our estimates. Previously, the Dongling Gao Ke production department had never produced products of such shipment scale. Whether it was experience or the technical skills of production line personnel, they were all insufficient!"

"In addition, for mobile phone production lines, Dongling Gao Ke introduced several mobile phone production lines from overseas for trial production, acquired a portion of technology and patents, and invited a portion of overseas engineers to serve as consultants. The remaining mobile phone production lines were all imitated, improved, and self-developed by Dongling Gao Ke!"

"Including production lines, high-speed automatic placement machines, etc., this took quite a lot of time."

"The Dongling Gao Ke production department is now the only one in the country that has independently developed a domestic mobile phone production line with the longest process, the most complete procedures, and the deepest precision processing, on par with mobile phone manufacturers like Nokia, Motorola, and Ericsson."

"Including the full set of processes such as mobile phone shell injection molding, spraying, shielding treatment, component placement, whole-machine testing, and whole-machine inspection, Dongling Gao Ke can complete them independently!"

"Developing production lines and training staff took quite a lot of time, and coupled with Little Smart sales volume exceeding expectations, it led to insufficient production capacity!"

Duan Youli said. The Dongling Gao Ke production department chose to self-develop mobile phone production lines. Of course, this is related to the current level of mobile phone technology not being too precise, otherwise Dongling Gao Ke wouldn't be able to play with it.

Duan Youli's production department basically produces and improves mobile phone production lines together with the technology department, and then replicates an improved production line. Whether it is Little Smart or GSM or CDMA type mobile phones, there are basically huge differences in production equipment, processes, and craftsmanship.

"Besides the reasons from the production department, it is also related to the component suppliers..."

Saying this, Duan Youli's gaze involuntarily looked toward Li Dongling's direction, and then he continued, "Dongling Gao Ke's component suppliers have also never handled such large orders for Little Smart."

"Including suppliers like Dongxin Semiconductor, Dongfang Optoelectronics, BYD, and Hanxi New Materials, upgrading equipment and increasing production capacity all took a considerable amount of time. Components have always been difficult to supply sufficiently, which also limited Little Smart's production!"

Duan Youli has one thing he hasn't explicitly said, which is that for products under Dongling Gao Ke like Little Smart, Shenzhou digital cordless phones, Silver Mink mice, and Shenzhou USB flash drives, Li Dongling requires them to be purchased from Dongling Gao Ke's own component suppliers as much as possible!

This resulted in Duan Youli having no way to purchase components from overseas on a large scale and having to wait for Dongling Gao Ke's component suppliers to increase production capacity.

The benefit of cultivating one's own industrial chain suppliers is that they are as obedient as one's own arms. The little brothers cultivated by oneself are well-known, and there is basically no need to worry about quality problems.

Dongling Gao Ke can completely control industrial chain suppliers and doesn't have to fear that one day the little brothers will be abducted or suddenly terminate cooperation with Dongling Gao Ke, because Dongling Gao Ke has countermeasures. As Dongling Gao Ke's component suppliers, including BYD, they have all been invested in by Dongling Gao Ke!

But the shortcomings are also obvious. Now, if any one of Dongling Gao Ke's component suppliers is pulled out alone, compared with overseas peers, there is still a certain gap in technology.

This requires Dongling Gao Ke to cultivate them slowly. Being anxious is useless. Only when Dongling Gao Ke reaches a certain height can the little brothers climb as high.

Apple in the past life chose component suppliers instead of cultivating them itself, but that was based on the support of America behind it, without worrying about any messy things happening.

If it were Dongling Gao Ke, if it also used a large number of overseas component suppliers, once targeted by America, those foreign component suppliers would not dare to defy America's orders. If they say they will cut off supply, they will cut off supply to Dongling Gao Ke. At that time, there would be nowhere to cry...

Building an industrial chain by oneself is a bit slow, but as long as one doesn't take the wrong path, there is hope to catch up. The key is that the leader must lead the way well. Once the industrial chain is completely built and costs can be significantly reduced, then Dongling Gao Ke's mobile phone business will be a dimensionality reduction strike against any opponent, regardless of quality or cost!

Just like BYD Auto in the past life, with full industrial chain self-research, R&D design, batteries, motors, electronic controls, drives, management systems, production, and assembly, all done by itself. After twenty years of hard work, when it came out, it launched a model priced at 100,000 yuan that claimed to be able to run 2,100 kilometers, directly flipping the table of the automotive industry and forcing some friendly merchants to start cursing.

"Self-researching production lines and purchasing components from Dongling Gao Ke component suppliers is something that was decided long ago. It won't change now, and it won't change in the future!"

Li Dongling said. This is endorsing Duan Youli, and Duan Youli doesn't need to pay any more price for this.

"Next year, what level can production capacity reach?"

"Now the Dongling Gao Ke Shanghai Industrial Park has started production, and the third phase of the Yangcheng Dongling Gao Ke production base is also about to start. If production capacity is fully operational next year and component supply can keep up, it is expected that production capacity can be increased by about double compared to this year!" Duan Youli said.

Li Dongling turned his head, looked at Ren Yuefeng and Zhang Ao, and then nodded. Starting next year, as long as Little Smart can hold onto a certain market share domestically and then start to fiercely attack the overseas market, an annual shipment volume of over 20 million units is already quite good.

What Li Dongling needs is to maintain Little Smart's sales volume these few years, and then take advantage of the good PHS market situation. Whether it is finding the Japan Telephone and Telegraph company or having manufacturers like Panasonic, Kyocera, Nokia, Ericsson, and Motorola take over Little Smart, he must make Little Smart's performance look bright and beautiful.

After Shenzhou digital cordless phones and Little Smart, other persons in charge also reported on the status of products like Silver Mink mice, Shenzhou USB flash drives, and other departments.

"Due to the influence of the overseas gaming market, the sales volume of Silver Mink optical mice has increased by a portion. This year's revenue is expected to exceed 65 million US dollars!"

"Because of the emergence of other brands like Toshiba, the price of USB flash drives has experienced a round of downward adjustments. This year, the revenue from Shenzhou USB flash drive sales is about 227 million US dollars!"

"This year, the revenue of the Dongling Gao Ke headquarters is expected to be around 6.7 billion US dollars, with a net profit of around 938 million US dollars."

As Dongling Gao Ke's financial manager, Hu Zixian revealed the bottom line of Dongling Gao Ke to the group of people present, but such performance and profit still made the group of people in the conference room excited.

Dongling Gao Ke's current performance is already the undisputed leader in the domestic technology industry. Whether in terms of performance or profit, the second place is far behind. Even the current Huawei is not as good as Dongling Gao Ke!

"Over 68% of Dongling Gao Ke's business comes from the overseas market. Old Europe has become Dongling Gao Ke's largest overseas market, followed by Japan, Hong Kong, Brazil, and other places."

"The mobile phone business has become Dongling Gao Ke's largest business, contributing over 73% of revenue!"

"The second largest business is digital cordless phones, USB flash drives are the third largest business, and computer peripheral equipment like Silver Mink mice are the fourth largest business!"

Hu Zixian reported the financial status of Dongling Gao Ke to the conference room, mainly to Li Dongling. "Because of self-researching production lines, coupled with investments in Dongxin Semiconductor, Dongfang Optoelectronics, Shenzhou Storage, and Wanji Appliance City, as well as purchasing components from Dongling Gao Ke's component industrial chain, a large portion of Dongling Gao Ke's profit was lowered!"

"According to the performance forecast released by Nokia, Nokia's net profit this year may exceed 2.5 billion US dollars, with profits far exceeding Dongling Gao Ke!"

Mobile phones are the most profitable products of this era, and there is no exception. Relying on the mobile phone business, Dongling Gao Ke's performance this year directly exploded, equivalent to directly increasing revenue by nearly 70%.

And as Nokia, which has just ascended to the throne of the mobile phone empire, its performance is even more fierce. Two years ago, Nokia was still losing 700 or 800 million US dollars a year, but after just over a year, Nokia's net profit reached 2.5 billion US dollars. One can imagine how profitable the mobile phone business is.

Not only Dongling Gao Ke and Nokia, but other companies involved in mobile phones, such as Motorola, Ericsson, Samsung, and Kyocera, all had explosive performance.

Precisely because it is too profitable, Motorola has started to play tricks. The earth can no longer contain it, and it ambitiously started the Iridium project, which is now being shouted about all over the world, causing Motorola's stock price to rise by a round.

"Currently, Dongling Gao Ke's biggest expenditure is technology R&D, as well as businesses like Dongxin Semiconductor, Dongfang Optoelectronics, and Shenzhou Storage!"

As the financial general manager, Hu Zixian reminded Li Dongling. Now Dongling Gao Ke seems to earn quite a lot, but under its hands, it is also raising several money-swallowing beasts. These money-swallowing beasts need Dongling Gao Ke to spend a large amount of money to raise them.

Li Dongling rubbed his cheeks. He also knew what Hu Zixian meant, but there is no turning back once the arrow is fired. He has already spent money to buy so many pieces of equipment and recruited so many R&D personnel. If he stops now, all previous efforts will be wasted. If he wants to restart, it is estimated that the money spent will be even more.

"Next year, increase the R&D budget by a portion!"

"Increase it again?!"

Hu Zixian couldn't help but shout, "According to the previously formulated plan, the Dongling Gao Ke headquarters takes out 5% of its annual profit to invest R&D funds into companies like the Hanxi Joint Laboratory, Dongxin Semiconductor, and Dongfang Era."

"Now this fund will directly exceed 400 million yuan, and this does not include those special R&D projects for which the Dongling Gao Ke headquarters is responsible..."

(End of chapter)