Reborn, back to a small county town to become a wealthy family

Chapter 714 Winning in the Domestic Market
How could Luo Yang not notice?

He Maosong is a person in the investment circle. Although he is a little less influential, it does not prevent him from knowing some powerful figures in the investment circle.

He winked at Luo Yang, and it was most likely related to those matters.

The meeting wasn't over yet, but Luo Yang pretended not to notice and continued with the second matter: "Let's discuss the second-quarter dividend with Sequoia Capital. Lemon CC should contribute at least half of its profits, and Nayuki should contribute 60%."

"Okay, boss."

An Ying nodded first, then asked, "What are the standards for distributing the second-quarter bonuses?"

“Nayuki and Lemon CC will each contribute 1000 million yuan, half of which will be awarded to store managers, and the other half will be distributed to all staff at headquarters according to their job positions.”

Upon hearing this news, the senior executives present in the conference room all smiled.

With such a large bonus, each person would receive approximately tens of thousands of yuan, which is equivalent to half a year's salary, given their positions.

After finishing his two points, Luo Yang adjourned the meeting.

Around 12:00, lunchtime, Liu Haishan took Luo Yang out for lunch.

"Brother Luo, Lemon CC is supposed to complete its second round of financing in the second half of the year, but it hasn't found a suitable investment institution yet, has it?"

He Maosong had been holding out from the company meeting room all the way to the restaurant's private room when he finally got his chance. "I have some friends in the investment circle on Zhedong Road who have a lot of spare cash. Would you like me to introduce one or two reliable people to our company?"

After Lemon CC's first round of financing, Luo Yang's shareholding was less than 50%.

According to his plan, he would release 20% of his equity in the second round of financing, which would reduce his equity stake to only 40% after dilution.

This ratio is a bit dangerous.

"Sure, I would welcome well-established institutions and angel investors to join us."

Luo Yang smiled and said, "But this round of financing will be divided into A and B shares. I plan to release 20% of the B shares. If your friends are interested, they can participate in the competition."

"It doesn't matter whether it's a Class A or Class B stock."

He Maosong certainly knew the difference between the two, and also knew why Luo Yang only offered Class B equity for financing.

He knew that Lemon CC would be sold at some point, and his friends certainly knew as well.

My intention in getting involved this time is simply to make a short-term investment.

Before coming to Shanghai for the second quarter financial report meeting, He Maosong had a discussion with his friends in the circle and believed that Lemon CC was just beginning to exert its strength and that its future value would be far more than 10 billion yuan. It would not be too difficult to reach 30 to 40 billion yuan within three to five years.

Everyone wants to make money by acquiring shares in Lemon CC before it's sold off, with the investment potentially doubling or tripling in two or three years.

"Then you should contact An Ying directly later."

Luo Yang understood what He Maosong meant, so he said, "But don't make things difficult for her. At most, she can have two spots."

"Then I'll drink tea instead of wine, thank you, Brother Luo."

He Maosong, with a broad smile, raised his teacup and gestured to Luo Yang.

"Brother, do you have anything else to do this afternoon?"

After the business was over, Liu Haishan spoke up: "A friend of mine has set up a resort in Nanxun, which combines leisure and entertainment. How about we guys go there this afternoon to relax?"

At this point, he immediately added, "We'll be back after dinner, so it won't interfere with your important business tonight."

"I'm going back to the company for a lunch break after I finish eating."

Luo Yang glanced at his watch and replied, "I need to get to Kunpeng Technology at 2:30 this afternoon to hear the company's second-quarter financial report, and I also need to discuss with the company's technical department about participating in the Berlin Air Show in September. How about next time, after I'm done with this week, we can go together and relax for a day."

"Okay then, let's find some time to go next week."

Liu Haishan knew what was important and what was urgent, and seeing that Luo Yang was indeed busy, he did not insist.

"Don't you think about it? What's the point if you can't even drink alcohol at night?"

Cai Fujun chimed in, "Old Liu, you said next week, right? I'll remember that for everyone and remind you when the time comes."

"Heh, do you think I'm someone who's short of money?"

Liu Haishan scoffed, "Look at how fast Nayuki and Lemon CC are making money, I can't even keep up with spending it all."

After hearing what he said, everyone laughed.

As the food was served, the four of them ate and chatted, finishing in less than half an hour.

It was almost 1:30 when I left the restaurant.

Luo Yang's lunch break was ruined again.

He could only have the driver detour to the headquarters to pick up Chu Jing, and then go directly to the Science and Technology Park.

As Kunpeng Technology grew larger, the original half of the second-floor office space was no longer sufficient. After applying, the school gave the entire third floor to the company, and even Luo Yang's office was moved up there.

When Luo Yang arrived at Kunpeng Technology, there were only 5 minutes left before the scheduled start time of the meeting.

He and Chu Jing entered the conference room, where CEO Chu Jianming, CTO Liu Zenghui, CFO Pan Su, CHO An Xia, Marketing Director Ding Hongyi and other senior executives were already waiting.

"Let's begin the meeting."

Since he wasn't late, Luo Yang didn't need to apologize and simply signaled to the finance department to begin the report.

"Chairman, General Manager Chu, colleagues, I will now report on the company's financial data for the second quarter."

The person in charge of presenting the PPT content on the projected screen was the CFO, Ke Ruoyun.

As she pulled out the financial statements, she reported, "As of June 30, Kunpeng Technology's domestic market sales in the second quarter reached 12575.48 million yuan, of which the sales of Kunpeng 1 amounted to 4238.22 million yuan, and the sales of the new Kunpeng 2 model amounted to 8337.26 million yuan."

With the launch of two new production lines at Deyang Motor, the production capacity of Kunpeng 2 has caught up, and the new model has begun to be sold in the domestic market.

However, their markets are different.

Due to its smaller size, the Kunpeng 1 excels in battery life and payload capacity, making it more widely used in government applications. The strong presence of its distributors further contributed to the Kunpeng 1's continued growth in the second quarter. The Kunpeng 2, on the other hand, has a broader market in the civilian sector. Coupled with the popularity of its lightweight and stylish design among enthusiasts, this new model achieved sales of over 80 million yuan in the second quarter.

"Sales of Kunpeng 1 increased by 147.5% compared to the second quarter of last year. Sales data for Kunpeng 2 is not yet available."

"According to market research, in the second quarter of 2012, the domestic market size for application-grade drones reached 19775.35 million yuan, and our Kunpeng Technology's market share reached 63.6%, surpassing DJI's market share in China."

Even Luo Yang was shocked when the report reached this point.

In addition, a sense of surprise spread from the bottom of my heart.

It's important to know that this is DJI, the giant in the drone industry in Luo Yang's memory, yet it has been suppressed by Kunpeng Technology in the domestic market.

Future prospects
Luo Yang couldn't help but turn his gaze to Ding Hongyi.

It seems that this marketing director's trusted lieutenant has lived up to expectations and has taken control of the domestic market.

Just as Luo Yang was pondering, Ke Ruoyun continued her report: "As of June 30th, Kunpeng Technology's cumulative overseas sales in the second quarter reached 1872.55 million US dollars, of which Kunpeng 1 sales were 147.33 million US dollars and Kunpeng 2 sales were 1725.22 million US dollars."

Kunpeng Technology's financial reports are relatively simple, consisting of sales and profits, as well as some year-on-year data analysis.

The entire report took less than an hour.

The meeting was scheduled for an entire afternoon because the reports included not only from the finance department, but also from Chu Jianming on the company's overall business situation, the sales department's report on expanding into the US market, and a report on preparations for the Berlin Air Show in September.
"Financial data is closely related to market sales, so let's save the comments for after the sales report."

After the finance team finished their report, Luo Yang finally spoke up and gestured to Chu Jianming, saying, "President Chu, it's your turn to report."

"As of the end of the second quarter of 2012, Kunpeng Technology had a total of 1129 employees. Its headquarters, located in Minhang Science and Technology Park, housed three R&D departments: Flight Control System, Image Transmission System, and Gimbal System R&D Department. Including management and functional departments, the total number of employees was 445."

"Shanghai University of Engineering Science, located in Songjiang University Town, has two joint research and development departments: the Power Systems Department and the Body Materials Research and Development Department, with a total of 53 employees."

"In addition, a power battery R&D laboratory was jointly established in Yangshi City and Yuanfan Group. It has now been moved to Shanghai and is located together with the new energy power battery technology R&D laboratory, with 37 R&D personnel."

The test flight base is located in Sheshan, Songjiang District.

"The company has established Deyang Motor in Yangshi City. The newly added third and fourth production lines have been put into operation. The main assembly workshop has a monthly production capacity of 800 Kunpeng No. 1 models and 2450 Kunpeng No. 2 models. The capacity of the fourth production line will gradually reduce the assembly of Kunpeng No. 1 models and increase the production capacity of Kunpeng No. 1 models."

"Deyang Electric currently has 587 employees."

"To date, the company has established sales channels in 31 provinces and municipalities across China, and has also made initial progress in establishing sales channels in North America and Europe."

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"The breakthrough in power battery technology that I mentioned last time was thanks to the breakthrough in power battery technology for new energy vehicles. That's why you arranged for the two laboratories to be located together, right?"

After Chu Jianming finished his initial report, Luo Yang began to ask questions.

"Yes, Chairman."

During the report, Chu Jianming offered his suggestion: "There are many overlapping technical indicators on both sides. Putting them together can facilitate communication, share the technical research and development process, and save research and development funds and time."

Although Jiang Yuanshan owns shares in the new energy vehicle power battery technology R&D laboratory, they are still family, so he can take advantage of any benefits.

So Luo Yang nodded in agreement.

"Another issue is the production line."

Luo Yang went through the issues one by one: "Judging from the current sales figures in overseas markets, it's more than enough for the short term. Moreover, I can foresee that the market for Kunpeng 1 will gradually shrink, especially when drone power battery technology makes another breakthrough, and the new generation of drones greatly increases their range and payload capacity. At that time, the production capacity of Kunpeng 2 can be gradually released."

Currently, Kunpeng 1 occupies slightly more than one production line's capacity. When Kunpeng 2 starts selling, the capacity of Kunpeng 1 can be temporarily reduced to make up for it.

"Chairman, I believe that once the Kunpeng 2 opens up the overseas market, it will inevitably affect the sales of the Kunpeng 1. At that time, we can adjust the production line for the Kunpeng 1 model, which should be enough to cope for a period of time."

As expected, Chu Jianming shared the same thought as him.

"I think we should also prepare for a fifth production line."

Sales Director Ding Hongyi interjected, "Everyone, don't forget that the Berlin International Air Show in September is just around the corner. If our products receive significant attention at the air show, our sales in the European market could see a substantial increase."

"Director Ding's line of thinking has given us a hint."

Luo Yang thought of DJI, whose first-generation multi-rotor drones had also shone brightly at this year's Berlin Air Show.

So he turned his attention to Ding Hongyi.

"Chairman, General Manager Chu, colleagues, I will now report on our market development efforts."

While gesturing to the administrative staff in the conference room to replace the USB drive, Ding Hongyi began his preliminary report: "The finance department has already listed the detailed data. I won't go into detail about the sales of Kunpeng 1, but mainly about Kunpeng 2. Thanks to the sales channels provided by the chairman, which cover major cities across the country, we achieved a breakthrough in sales in the second quarter. With such a good foundation, our marketing department will definitely consolidate and expand our market share."

Luo Yang assigned the marketing department sales channels from Guangfan Electronics' nationwide network of direct sales stores, which were used to sell electronic products such as power banks, selfie sticks, and the Kunpeng 2 drone.
It is precisely because of these advantages that Kunpeng 2 achieved such outstanding results in the second quarter.

"Next, let me talk about the expansion in overseas markets."

Ding Hongyi flipped through the PPT slides, displaying a map of the entire United States and a layout of sales outlets.

"In the second quarter, the Kunpeng 2 achieved overseas sales of US$1725.22 million, of which the US market accounted for US$1547.3 million, far exceeding the combined sales in Europe and Canada."

Ding Hongyi projected his laser pointer onto the PPT: "Currently, we have completed market promotion in several major states on the East and West coasts of the United States. Next, I will lead the marketing team to develop the market in the central United States, which will be completed by mid-August. The rest of the time is just waiting. If we achieve success at the airshow, we can take advantage of the opportunity to conquer the European market."

The conversation naturally turned to the Berlin Air Show, leading to discussions about participating in the event.
"Mr. Chu, according to the information you have, is the model that DJI sent to the Berlin Air Show the one currently on the market?"

"Chairman, DJI's first-generation multi-rotor drone was only released to the public in mid-May, so it's unclear whether they have a more technologically advanced product to submit for the exhibition."

Chu Jianming replied, "However, according to the assessment of the commercial research company, DJI is unlikely to achieve a technological breakthrough in a short period of time unless they have a deep technological reserve."

"Prepare for the enemy with strict discipline."

Although his experience from his previous life told Luo Yang that DJI had not sent any new generation products to the Berlin Air Show and that its technological reserves were not necessarily deeper than those of Kunpeng Technology, he still remained wary of DJI.

When will our new Kunpeng 2.1 model, which uses the latest technology, be released?

Longer range, clearer wide-angle photography and image transmission, and better integration of navigation technology and flight control software.
Although there was no revolutionary technological breakthrough, it was still equivalent to progressing from the iPhone 4 to the iPhone 5.

(End of this chapter)