Chapter 53: Fat Meat or Poison?

The Silver Mink mouse was selling well in the domestic market with almost no rivals, but computers in China were still essentially luxury items, and the number of ordinary families that could afford them was, in the end, a minority.

The biggest computer buyers in China currently were the various units in Beijing and the procurement departments of various provinces and cities. The bulk of it was purchased by these departments. The main clients of computer manufacturers like Lenovo and Great Wall were also departmental agencies, public institutions, or hospitals and large companies.

Ordinary families were still unable to afford computers that cost over ten thousand yuan. Even if the Silver Mink mouse occupied the entire domestic mouse market, it would only sell a few hundred thousand mice a year. Foreign brand computers like IBM, Compaq, and Apple, even when sold in China, were not very willing to cooperate with the Silver Mink mouse.

Li Dongling hoped that the Silver Mink mouse could be sold abroad. This year, global computer sales were estimated to exceed 37 million units. Domestic computer sales, whether domestic or foreign brands, added up to less than 500,000 units. The bulk was still in the overseas market.

Not to mention competing with Logitech in the overseas market, even if it just ate a scrap, the mouse sales would likely be much higher than in China!

Hu Zixian shook his head. "Currently, no overseas computer distributors or agents have contacted us!"

"To enter the overseas market, we need to find overseas agents and distributors, and we need to invest a large amount of advertising fees. Given our current situation, doing so carries too much risk!"

Hu Zixian said. His thinking was the same as domestic companies of this era—still tending to be conservative: develop domestically first, and when you really can't make money or compete domestically, then go overseas to find opportunities.

If they entered the overseas market rashly, once they lost money, the entire Dongling High-Tech could be severely damaged. Now, with the Silver Mink mouse's reputation, weren't they doing just fine domestically? Why take the risk?!

Li Dongling glanced at him, then looked at Yao Luoying, Chen Tao, Gao Peng, Li Dongshan, and others. Except for Yao Luoying, who seemed to have something to say, the others clearly agreed with Hu Zixian.

"Whether it's the Silver Mink mouse or the digital cordless phone currently under development, all other products developed by Dongling High-Tech in the future must go abroad!"

Li Dongling said. The domestic market certainly couldn't be abandoned, but for now, at least for the next ten years or so, domestic income and consumption levels would still be lower than overseas.

Harvesting leeks—of course, you can harvest them anywhere, but harvesting domestic leeks is not as profitable as harvesting foreign leeks. It's not that domestic leeks can't be harvested, but foreign leeks have a better price-performance ratio!

Listening to Li Dongling's words, Hu Zixian and the others all opened their mouths wide. Currently, domestic companies were all staring at their own small plots of land in China. None of them spoke so bluntly about harvesting foreign leeks like Li Dongling.

"What about the R&D of the digital cordless phone?!"

Li Dongling asked Chen Tao, who was in charge of Dongling High-Tech's technical department.

Chen Tao hurriedly replied, "It is currently under development. Mainly, some technical problems are stuck, and performance testing needs to be done on the digital cordless phone, which requires a certain amount of time. However, by July of this year at the latest, trial production can begin!"

Li Dongling glanced at Chen Tao. This R&D speed really couldn't be called fast. It was already March 1994. Saying it would be developed by July—but R&D was highly uncertain. An inconspicuous problem could drag on for weeks or even months.

"Develop it as soon as possible. The technical department can recruit more R&D personnel. If you need R&D experimental equipment, you can purchase it!"

"In addition, I plan to have Dongling High-Tech join forces with Pingyang University and Hanxi Jiaotong University to establish a laboratory, with an expected investment of no less than 15 million RMB. In the future, we will set aside no less than... 5% of our profits each year for R&D!"

Li Dongling said to Chen Tao. Hearing this, Hu Zixian, Yao Luoying, Chen Tao, Li Dongshan, Gao Peng, and others were truly shocked.

Currently, Dongling High-Tech's cash flow looked abundant. The settlement compensation from Microsoft, plus the previous earnings from satellite dishes, added up to quite a bit. But this time, Li Dongling was almost directly taking out about one-seventh of the cash flow to build a laboratory, not to mention setting aside 5% of profits every year for R&D.

In the current domestic context, this was considered shocking, especially since domestic tech companies, in pursuit of profit, were willing to purchase all components from abroad and were unwilling to invest a single cent in R&D, believing it to be a waste. Li Dongling was definitely going against the trend.

Now, investing so much money in R&D wouldn't be praised; instead, it would likely be ridiculed, especially since the two heads of a certain most famous domestic computer brand were currently in an internal conflict over whether to invest money in chip R&D.

Even the top domestic tech companies were like this, so one could imagine how bold Li Dongling's decision was.

Dongling High-Tech was not a state-owned company, and there was no dispute over equity. Li Dongling had absolute control over Dongling High-Tech, so the things he decided wouldn't be dragged out in Dongling High-Tech.

Establishing a formal, top-tier laboratory that could be used to develop new technologies was a must. If Dongling High-Tech wanted to arm-wrestle with overseas tech companies, it had to have its own technology; otherwise, it would always be controlled by others and wouldn't know when it would be throttled.

Setting aside 5% of profits for R&D each year, Li Dongling felt it wasn't even enough. In the future, major global giant companies, whether in medicine or technology, generally had R&D investments of 15%, and some could even soar to over 25%. Technology was entirely smashed out with money.

Dongling High-Tech currently certainly hadn't reached that point. Being able to set aside 5% of profits for R&D each year was already truly not easy. However, in the future, after having stable earnings, Li Dongling would definitely increase R&D investment.

Still the same saying: you can't become a fat man in one breath. A journey of a thousand miles begins with a single step. Dongling High-Tech starting to invest in R&D was better than buying components to assemble machines, right?!

"There is one more thing," Hu Zixian said. "Should Dongling High-Tech establish its own production factory, or acquire a production company? It can increase the mouse production capacity and also produce digital cordless phones in the future!"

Building a factory yourself or acquiring a production factory required a large initial investment, but once production started, costs could be significantly saved, and there would be no need to use OEM companies, putting every cent into their own pockets.

Li Dongling thought for a moment and said, "Have the finance department calculate how much money is needed to build a factory. You can also have people look for whether there are any suitable production companies to acquire!"

Seeing that Hu Zixian and Chen Tao had finished reporting, Li Dongling tapped the table lightly. "I have two more things to announce!"

"The first thing: Dongling High-Tech will undergo some management adjustments in the near future, and new executives will join!"

Li Dongling was giving a heads-up in advance. Regarding this, everyone wasn't actually surprised. Dongling High-Tech had previously been in a "grassroots team" mode. Yao Luoying, Hu Zixian, Gao Peng, and others all held multiple positions, so personnel adjustments were definitely needed.

"The second thing," Li Dongling stood up and smiled. "Everyone has worked hard during this period. The logistics department will purchase some televisions, air conditioners, pagers, etc., to be distributed as prizes. In addition, department staff will receive an extra month's salary as a reward, and those above department supervisor level will receive a bonus of 10,000 yuan. At the end of this year, year-end bonuses will be distributed!"

Li Dongling said this last sentence almost directly to Hu Zixian. When Hu Zixian joined, he proposed an annual salary of 50,000, which seemed like a lot, but he didn't expect Dongling High-Tech to reach this point. And he signed a two-year contract, which was simply a "cabbage price" contract.

However, Li Dongling certainly wouldn't treat Hu Zixian poorly. If it weren't for Hu Zixian's help, who knows what kind of mess Dongling High-Tech would have fallen into when Li Dongling was away. With a low salary, he would compensate Hu Zixian in terms of bonuses and year-end bonuses.

Hu Zixian showed a smile, as did Yao Luoying and the others. It wasn't about how much bonus Li Dongling gave them this time, but that it proved Li Dongling wasn't one of those stingy bosses who wouldn't pull out a single hair. If he earned a million, he was willing to give his subordinates an extra cent.

Just as he was about to walk out of the office, Yao Luoying suddenly said to Li Dongling, "Chairman Li, Vice Mayor Yao, who is in charge of Pingyang's industry and commerce, is coming to our company for an inspection this afternoon!"

Hu Zixian glanced at Yao Luoying and didn't think much of it. Yao Zhengru and a group of Pingyang municipal leaders had visited Dongling High-Tech many times during this period.

It was mainly because they were afraid that Dongling High-Tech would be poached or moved away. In this era, for a city like Pingyang, it was truly not easy to produce a company that earned foreign exchange. They definitely had to keep a close watch, fearing it would be "stolen" by some provincial capital city or another city. Coming to Dongling High-Tech frequently seemed to make sense.

A moment later, when Yao Luoying announced to Dongling High-Tech's staff that they would receive an extra month's salary as a bonus this month, including interns who had just joined, the entire Dongling High-Tech office building suddenly erupted in cheers.

In the afternoon, Yao Zhengru brought only one secretary and arrived at Dongling High-Tech in a low-key manner.

"Boss Li, you are truly young and promising. The waves behind the Yangtze River push the waves in front. You've done things we didn't even dare to think about!" Yao Zhengru said while shaking hands with Li Dongling.

"Vice Mayor Yao is too kind!"

It wasn't the first or second time Yao Zhengru had come to Dongling High-Tech. Except for the laboratory developing digital cordless phones, which he hadn't entered, he had already seen all other places. This time, he came directly to Li Dongling's office.

Seeing Yao Zhengru's posture, knowing he wanted to talk to Li Dongling alone, everyone else retreated.

"During this period, Luoying has caused you trouble at Dongling High-Tech!"

Inside the office, with only the two of them left, Yao Zhengru had just sat down when he suddenly clarified this to Li Dongling.

Li Dongling was slightly surprised, but didn't show too much shock, immediately guessing the relationship between Yao Luoying and Yao Zhengru. "Vice Mayor Yao is joking. Dongling High-Tech wouldn't be where it is today without Assistant Yao!"

Yao Zhengru looked at Li Dongling for a few moments, then said directly, "The city hopes that Dongling High-Tech can stay in Pingyang. Whether in terms of taxation, loans, land use, or other aspects, we will give Dongling High-Tech the greatest support!"

To keep Dongling High-Tech, the Pingyang municipal government had also spent a lot of money, preferring not to collect taxes for several years just to keep Dongling High-Tech.

"Dongling High-Tech's headquarters will not leave Pingyang!"

Li Dongling also said. As for where Dongling High-Tech's subsidiaries and laboratories would be placed, that wasn't certain.

Yao Zhengru could also hear the meaning in Li Dongling's words, but still nodded in agreement. Even if it was just the name of the headquarters, as long as it stayed in Pingyang, it would be of great benefit to the Pingyang municipal government!

"I came here today because there is one more thing I need to tip you off about in advance. Tomorrow, Mayor Luo will meet you personally. At that time, he might mention the Xicheng Wireless Factory No. 1 to you!"

Hearing this, Li Dongling looked at Yao Zhengru with some surprise, not knowing what he meant. ===== CHAPTER 54 =====