Rebirth 08: Rise from copycat phones

Chapter 580: S20 Launch and Hailan Auto Market

This photonic quantum computer is actually a relatively primitive version, providing only about 500 qubits. It can be used in some fields, but its usefulness is questionable.

Compared to the development of superconducting quantum computers, Zhiyun Group's progress in the field of photonic quantum computers has been relatively slow.

But it is precisely because the performance of photonic quantum computers is relatively primitive, not yet ready for large-scale practical application, and temporarily unusable in the field of artificial intelligence, that Xu Shenxue was able to openly release it...

We didn't expect it to sell after releasing it; its practicality is very limited... The reason we still released it was purely to show off our skills, promote it, and enhance our global brand value!
Zhiyun Group has actually been very successful in the field of quantum computing. The YCL-51 superconducting quantum computer has impressive performance and the number of controllable qubits has reached 10,000. It is currently being used on a large scale in the field of artificial intelligence training.

However, this cannot be made public... The YCL-51 superconducting quantum computer and the MMK34 material it uses extensively are top secrets, with a level of secrecy comparable to the AI ​​fighter jets of Project X, and there is simply no way to talk about them.

Superconducting quantum computers are actually not that bad. Right now, they can only be used in the field of artificial intelligence. You can think of them as a super-sized APO graphics card.

The key issue is that the YCL-51 superconducting quantum computer uses the MMK34 room-temperature superconductor... This thing simply cannot be made public.

Given the enormous industrial influence of MM34, a room-temperature superconductor, it's unlikely to be declassified before the domestic industrial chain is adjusted and all preparations are completed.

If the MMK34 material were announced now, it's hard to say whether foreign competitors would go out of business, but a large number of domestic companies would certainly go bankrupt first...

This is a room-temperature superconductor. Even if a temperature of minus 25 degrees Celsius is still required, its industrial impact is still enormous, and it can be used in a large number of industrial fields!

Therefore, the secrecy surrounding the MMK34 room-temperature superconductor is not only to prevent competing countries from knowing about it... but also, more importantly, to protect the company itself!

Before the MMK34 material is announced, the relevant industrial chain needs to be adjusted to avoid severely impacting a large number of traditional power industries.

Often, it's not that creating something new or good will necessarily bring any benefits... MMK34 material is one such example. If used well, it can be a strategic material that drives significant industrial advancement, but if used poorly, it will first cause serious damage.

Similarly, there are autonomous driving technology and industrial robot technology... Hailan Auto has already perfected its autonomous driving technology, and its L4 level autonomous driving is impressive enough, but so far it has only been installed in Hailan Auto's private passenger vehicles.

It hasn't been promoted to the ride-hailing, taxi, and freight vehicle sectors... This thing can't be promoted and used right now. If it were promoted, a huge number of ride-hailing drivers and truck drivers would lose their jobs. The impact would be too great, affecting tens of millions of jobs.

The same applies to industrial robots. Zhuyun Group can even develop home service robots, which are far more technologically advanced than any industrial robot.

In the industrial sector, Zhiyun Group currently only develops specialized types of robots, such as underwater robots and space robots, which are designed for special environments and areas where humans cannot access them.

As for conventional industrial robots, Zhiyun Group has never made any... not because it couldn't, but because it was not feasible.

With factories using robots, what will happen to the hundreds of millions of workers?
Therefore, new technologies should not be developed haphazardly, and this applies to the fields of superconducting quantum computing and room-temperature superconductivity as well.

Everyone's working on quantum computers, including your Zhiyun Group, so why haven't we heard anything from you for years? Is your technology lacking?

If such comments, such as "the technology is not good enough," were to spread and be accepted by most people, it would be a huge blow to the brand of Zhiyun Group, which is something Zhiyun Group cannot accept.

The reason why Zhuyun Group's products can sweep the globe is because of its top-notch advanced technology... "Technology leading the industry" is a common slogan of Zhuyun Group.

For a technology-driven giant focused on cutting-edge high-tech fields, it is intolerable for outsiders to say that its technology is inadequate!

The biggest perception of Zhiyun Group to people around the world is that they are a top-notch high-tech company that plays with cutting-edge technologies!

This is also a major difference between Zhuyun Group and many other high-tech companies!
In people's minds, fruit is associated with mobile phone manufacturers!
Four Stars is also a mobile phone manufacturer, maybe with semiconductors added to the mix.

Google, that's for searching.

Microsoft, playing with operating systems...

Penguins are social and gaming enthusiasts.

Yihai Technology is involved in short videos and games.

Hailan Auto is involved in autonomous electric vehicles!

Zhuyun Group is relatively special; in most people's minds, Zhuyun Group is a high-tech company...

Instead of focusing on a specific product or industry, the company adopts a "high-tech" mindset. After all, Zhuyun Group does occasionally come up with some cutting-edge technology, such as artificial intelligence, robots, and virtual devices.

The greatest brand value of Zhiyun Group lies in this high-tech attribute!

Many people criticize Zhiyun Group for its expensive products and services... saying they are greedy and want too much money.

However, virtually no one criticizes Zhiyun Group's technology! ...Even executives from competing companies, when interviewed, have to admit that Zhiyun Group's technology is indeed impressive!
Top-tier technology and high price... These are two classic labels for Zhiyun Group's products and services!
Leaving aside the label of "expensive," the label of "top-notch technology" needs to be maintained!

In order to legitimize their companies and demonstrate their strength in the field of quantum computing... and since they couldn't talk about superconducting quantum computers yet, Xu Shenxue simply released the still-emerging photonic quantum computer!

This photonic quantum computer with over 500 qubits may not have much practical use, but it is technologically advanced enough to surpass other companies in the same industry. It is sufficient for showing off and maintaining the company's top-notch technology label!

Interestingly, after a press conference, Zhiyun Group's stock price fell instead of rising... This is typical for Zhiyun Group when it releases its S-series phones every year.

In most years, the stock price will rise before the release of the S series phone, and then fall after the release... This is a game between investors. Some investors are more optimistic and will overestimate the stock price before the release.

Some people are even betting on what game-changing product Zhiyun Group will come up with...

These optimistic investors and gamblers will slightly boost the stock price of Zhiyun Group before the press conference!
Once the product launch is over and the final product is clearly launched, the stock price will return to a level acceptable to most investors!
The only exception was in 15... That year, Zhiyun Group played its trump card and released a full-screen phone with 3D facial recognition. After the phone was released, Zhiyun Group's stock price continued to rise, making many people's bets pay off.

However, apart from this year, in other years the stock price generally declined after the press conference.

Even though the share price has fallen somewhat, Zhuyun Group's market capitalization in Hong Kong still reached US$6.5 trillion, which is extremely staggering.

In addition, the photonic quantum computer released by Zhiyun Group has also attracted a lot of discussion in the high-tech industry... As for ordinary people, they don't care much, as this thing has no practical use and is not very relevant to ordinary people.

Industry insiders are focusing their attention and discussions on the future uses and value of quantum computers, and the most crucial question is when quantum computers will truly mature and be used on a large scale.
However, most people are still quite pessimistic: even a top company like Zhiyun Group has not made significant breakthroughs in the field of quantum computing, let alone other companies, which are not as good as Zhiyun Group.

Under these circumstances, it's unclear how many years it will take before quantum computers can be widely used.

What they didn't know was that Zhiyun Group had already made a huge breakthrough in the field of superconducting quantum computing, and was now using it on a large scale in the field of artificial intelligence.

Moreover, they are already working on the sixth generation of superconducting quantum computers and are preparing to increase the number of controllable qubits to 50,000!

The development of cutting-edge technologies in the field of quantum computing by Zhiyun Group is faster than expected, and much faster.

——————

The release of the S20 series phones also marks the start of the annual autumn peak season.

From August to around October each year, it is the peak season for the release of various mobile phones, especially flagship models.

Following the release of its flagship phone by Zhiyun Group, other companies such as Apple, Samsung, and Vcool Electronics will also release their new flagship phones, thus kicking off the annual peak season for mobile phone sales.

However, during this period in August, other mobile phone manufacturers still have to avoid the brunt of the S series phones... Many years ago, no mobile phone manufacturer was foolish enough to release a phone in August...

Trying to directly challenge the S-series phones head-on will result in a disastrous defeat... This is a bloody lesson that countless mobile phone manufacturers have taught people through repeated failures over the years!
Therefore, throughout August, the Zhiyun S20 series phones, while not necessarily dominating the market, certainly dominated a large portion of the mobile phone market!
Especially in the domestic market, August is just before the start of the university semester, and many prospective college students have been waiting for the new generation of Zhiyun S series phones.

After all, the standard two-piece set for college freshmen in China right now is: Zhiyun S series mobile phone and Zhiyun Yun Book laptop!
Every year during the university enrollment season, it is the peak sales period for Zhiyun S series mobile phones and laptops!

In late August, since its release, the Zhiyun S20 has seen massive shipments due to ample stock, with global shipments exceeding 50 million units and domestic shipments exceeding 30 million units alone, demonstrating its consistently explosive sales performance!
However, this did not elicit a positive response from the capital market... Every year after the release of new products by Zhiyun Group, sales are always this high, so everyone had already anticipated this.

Shipments exceeding 50 million units are no news!
If shipments fall short of the expected 50 million units, that would be news!

However, many analysts, including those within the Zhiyun Group, saw a more positive signal in this sales data: in the first two weeks of shipments, the proportion of shipments from the domestic market increased by a full five percentage points compared to last year!

The Zhiyun S series phones are sold globally. Last year, the initial sales ratio between domestic and overseas markets was 55% and 45%, respectively.

The first batch of sales countries this year remained unchanged, still including China, the EU, Japan, South Korea, Australia, Singapore, and other regions. The market remained the same, but the sales share of China did increase by five percentage points, bringing the overall ratio to six to four!

This signal might not attract much attention from ordinary people, but it is indeed highly valued within the Zhiyun Group... This means that the Zhiyun Group has taken another step forward in its goal of increasing the proportion of domestic revenue, which will help the Zhiyun Group reduce its heavy reliance on overseas markets.

Over-reliance on overseas markets has always been a potential risk for Zhuyun Group, which has been trying to change this situation for many years, but with little success.

However, this year, the management of Zhiyun Group has indeed seen very positive developments.

Meanwhile, some external analysis institutions have also keenly noticed this... Of course, their focus is not on Zhuyun Group's reliance on overseas markets, but rather on the overall increase in domestic consumption power and economic growth.

After all, Zhiyun Group's total shipments haven't changed, and the initial sales regions haven't changed either. Given that there haven't been any targeted attacks or negative news in the initial overseas markets... and everything is basically the same as last year, the domestic sales share of Zhiyun Group's new S-series phones has increased...

This undoubtedly demonstrates that domestic consumption power has further increased.

Under what circumstances can spending power increase?
What else could it be but continued economic growth?

This type of expertise involves analysis reports in the field of macroeconomics, which ordinary internet users and consumers don't pay attention to, but many financial institutions do.

This is especially true when it comes to the significant domestic consumer market.

Currently, China's domestic market is the world's largest in many sectors, wielding significant influence.

For example, in the automotive market, the domestic market is the world's largest, not only the largest consumer market but also the largest automobile producer, with annual production and sales of around 25 million vehicles.

The mobile phone and even the entire smart terminal market is the world's largest market, with sales of hundreds of millions of units every year. As for production, it is even higher, with an annual output of about 1.4 billion units, accounting for more than 90% of the world's production capacity.

And the consumption power of this world's largest market continues to rise steadily, and the increase is quite significant... There are many things behind this.

Some data analysis agencies took advantage of this momentum to begin more comprehensive data collection and analysis... and produced a number of reports. The consensus among them was that with the rise of a large number of emerging industries in China, especially the rise of industries such as semiconductors, smart terminals, smart electric vehicles, robots, and virtual devices.

This has greatly boosted the overall growth of the domestic economy and brought more mid- to high-level employment opportunities... This means that a large number of ordinary people are earning more money, and with more money in their pockets, their spending power has naturally increased.

Of course, some analysis reports also point out that as domestic wage levels continue to rise, a large number of low-end manufacturing industries will face higher labor cost pressures, which will lead to a decline in export competitiveness. This is not good news for some labor-intensive low-end manufacturing industries.

This is also an inevitable consequence of sustained economic development: as the economy grows and people's incomes rise, labor costs for businesses also increase... Excessive labor costs will put pressure on low-value-added, low-end manufacturing industries.

However, the impact in the short term will not be significant... because in many fields in China, we have long since stopped relying on the advantage of labor costs... those are outdated stories.

China's manufacturing industry is now playing the game of technological and supply chain advantages!
Even many industrial products that seem to have low technological content are produced using a large number of automated equipment.

Needless to say, the supply chain advantage is obvious. More than 90% of the global production capacity of smart terminals is in China, which is a clear manifestation of the supply chain advantage. This is not only in the field of smart terminals, but also in many other manufacturing industries, especially many low-value-added industrial products that seem to have little technological content. These industrial products actually have more stringent requirements for the supply chain.

In the supply chain sector, China has an almost absolute advantage!

From mid-to-high-end equipment to raw materials, and then to various spare parts, everything is available.

Even the top-of-the-line semiconductor equipment and consumables in the industrial system have a complete supply... Fairy Mountain Holdings does this.

Relying on its technological and supply chain advantages, China's manufacturing industry is very strong, from low-end to high-end manufacturing.

All of these factors have driven overall economic development. As the economy improves and incomes rise, consumption naturally increases as well. This is ultimately reflected in the sales share of the new S-series mobile phones from Zhiyun Group, with domestic sales accounting for 60% in the early stages.

This is quite good data.

It is foreseeable that, in addition to S-series mobile phones, the domestic sales share of other types of smart terminal products, including robots and virtual devices, will also increase accordingly... This is a macroeconomic impact brought about by the overall rise in the domestic consumer market.

This is why Xu Shenxue pays close attention to the development of China's macroeconomy, and even goes so far as to push for a large number of his companies to be listed domestically, thereby leveraging the flow of domestic capital...

Because Xu Shenxue's business has reached such a level, boosting the domestic macro-economic growth is equivalent to boosting the domestic sales of products from his various companies; these are mutually reinforcing.

To further promote the healthy flow of domestic funds, Xu Shenxue's other company, Hailan Auto, will also be listed in September.

Over the past few months, Hailan Auto has reached agreements with major strategic investors, especially after the release of its full range of models equipped with solid-state batteries and the new Hailan HEV, an entry-level mid-size SUV, in May.

Strong sales volume and exceptionally high average selling price have significantly increased investors' acceptance of Hailan Auto's high price-to-earnings ratio.

In addition, the sharp rise in the stock price of Zhiyun Group starting in July has also greatly affected investors' valuation of Hailan Auto: after all, both companies are important enterprises under Xu Shenxue. Since Zhiyun Group can have such a high price-to-earnings ratio, there is no reason for Hailan Auto to be so low!
In addition, there are other factors at play, such as the continued decline of many traditional industries, especially the real estate industry. After a lot of funds flowed out of these areas, they also needed a new destination, and the high-tech industry became the first choice for these funds.

In the domestic capital market, the high-tech companies under Xu Shenxue's control are the most popular among investors.

A combination of factors led to the final valuation of Hylan Motors reaching $700 billion upon its IPO, meeting the expectations of Hylan Motors' management team.

As September began, the mobile phone market continued to stir up waves, with companies such as Apple, Vivo, Samsung, Huawei, OPPO and Vivo, along with Xiaomi, successively releasing new mobile phones.

Hailan Automotive officially listed on the domestic stock exchange, issuing 30% of its shares and raising a staggering $210 billion. These funds will be used by Hailan Automotive to expand its production capacity, especially solid-state battery capacity and vehicle production capacity.

It is also used for the promotion and operation of new brands, such as the two sub-brands Ella and Mite, as well as future sub-brands.

It is also used for the development of various new car models, and the continued development and application of autonomous driving technology.

Hailan Group's goal is to increase the production and sales volume of its various brands and models to eight million vehicles within five years and ten million vehicles within ten years, aiming to become the world's largest automaker!
At the same time, a large amount of money will be invested in the research and development of robots... The management of Hailan Auto has wanted to develop robots for a long time, but the technology is not mature enough and the funds are insufficient, so it has been delayed.

The main goal of raising a large amount of money through IPOs is to develop robotics.

According to the vision of Hailan Auto's senior management team, the future Hailan Auto Group will be a top-tier high-tech enterprise with intelligent electric vehicles and intelligent robots as its two core businesses, supplemented by many other businesses, such as intelligent mobility software ecosystem, auto insurance, battery business, LiDAR and other sensors, and spare parts business.

This is how Hailan Auto positions itself: a high-tech enterprise!

It's not just a simple car manufacturer!

This is also the core reason why the market gives Hailan Auto a high valuation... It is a high-tech company, not a car manufacturer.

The price-to-earnings ratio of car manufacturers is far from that high!
Investors all viewed Hailan Auto as a high-tech company, and a high-tech company with great prospects.

Ultimately, this led to an initial public offering (IPO) valuation of $700 billion, and within just a few days of listing, the market capitalization of Hailan Automotive Group had already surpassed $800 billion...

In contrast, BYD, the second largest electric vehicle manufacturer in China, has also seen a very strong growth, but its market value is only around 100 billion US dollars, which is still a significant difference.

Hailan Auto's market capitalization of $800 billion also makes it the second-highest valued company in the domestic stock market... As for why it is second, it is naturally because there is a Zhuyun Group ahead of it.

Zhuyun Group has a market value of over 6.5 trillion US dollars.

Although the $800 billion market capitalization of Hailan Automotive after its IPO is very high, it is nothing compared to the current market capitalization of Zhuyun Group of over $6 trillion.

Whether we're talking about market capitalization, revenue, profit, or even industry influence!

Zhuyun Group is the undisputed leader!

(End of this chapter)