After rebirth, I became a great master

Chapter 366 Complete Domestic Production

Zhou Haoran's concept for the subway is officially called the AFC system.

This refers to automatic ticketing and automatic ticket checking systems.

This thing is not available in China at the moment.

The price is too high.

A set costs several hundred million US dollars.

As a result, after the Harbour Metro introduced one system in 1999, domestic metro projects stopped exploring this area because they simply couldn't afford it. Even in the capital city, it wasn't until the 2008 Olympics, when the city needed to showcase its national image to the world, that the Capital Metro fully introduced the AFC system.

Even Zhou Haoran could only complete half of the AFC system in the short term.

That is, automatic ticket checking.

Smart cards and card readers are installed inside the turnstiles to achieve a combination of software, hardware, and mechanics.

This part is not difficult.

The most difficult part is automatic ticketing, including automatic top-up, which requires integration with the entire subway network and the central management system of the line, the station computer system, and the station terminal equipment.

The project is quite complex.

Zhou Haoran could do it too, the key question is whether he has the authority. If he works hard to develop the product, but the subway company doesn't buy it, then he's completely finished.

Let's start by testing the waters with automatic ticket checking.

This one is easy.

The R&D costs are relatively low, and Zhongbo Software can provide technical support.

Simply combine the turnstile with the smart card.

If Zhou Haoran manages to push this forward, it will be a significant step ahead in the industry. Overseas AFC systems generally use a combination of magnetic stripe cards and turnstiles, and technological updates are very slow.

Jiang Feibiao was completely confused.

Fortunately, I was attracted by Zhou Haoran's promise.

Science and education are essential for national rejuvenation!
This guy's research in the lab at Fudan University is both scientific and educational, making it arguably the biggest theme of our time.

"Brother, you know the situation with Narcissus Electric Appliances. Just tell me the truth: is Narcissus Group qualified to do this business you're talking about? If not, just give me a straight answer, and I'll contact someone else!"

Jiang Feibiao was still hesitant about this high-tech product.

Zhou Haoran laughed and said, "We can start with something simple, like a book lending card reader or an attendance card reader. The ones in the bathroom and cafeteria need to display the balance. If they're too complicated, we won't make them yet; we'll import them from abroad first. You can take your time and work on it!"

"Okay, let's do it!"

Jiang Feibiao was already tempted by what he said.

“President Jiang, you can definitely handle this. It’s easy. Most high-tech products in China are either imported or have core components bought from abroad and then assembled domestically.” Zhou Haoran wasn’t worried about this. “Let’s not even talk about computers and mobile phones. Many educational devices are assembled in small factories. Assembling an educational device is much more complicated than assembling a card reader.”

"When does it begin?"

Jiang Feibiao realized that this was his opportunity.

We can't compete with others in making washing machines, refrigerators, water heaters, and the like. But smart card readers are still a completely untapped market in China, so we can definitely capture that market eventually.

"Start it immediately, the sooner the better..." Zhou Haoran suddenly remembered something and looked troubled. "President Jiang, why don't you hold off for now? I've run into some trouble here. If you can handle it properly, then you can proceed."

"What trouble?"

Jiang Feibiao raised an eyebrow.

Zhou Haoran sighed, "Well, Hong Kong Island has returned to China!"

"what happened?"

Jiang Feibiao was a little confused.

Zhou Haoran followed him out of the subway station and quietly explained the challenges his self-developed project was currently facing, including the fact that some school leaders wanted to introduce the University of Tokyo's campus card.

"What?" Jiang Feibiao's eyes widened. "Don't believe you? You believe the Japanese?"

Zhou Haoran said, "The leaders are also trying to ensure the completion of political tasks."

"But we can't just blindly worship foreign things!" Jiang Feibiao said indignantly, especially since it involved the country he hated. "I just looked through your lab. Your project is so good, why spend so much money importing stuff from the Japanese?"

Zhou Haoran said in a deep voice, "This matter is actually a small one. However, the development of technology requires practice and experience. If we had used the University of Tokyo's product this time, it would have caused our product to lose the opportunity to grow."

"That's right!"

Jiang Feibiao's tone was heavy.

“Subway projects are too expensive; a single automated fare collection system costs several hundred million US dollars. If this equipment isn't domestically produced, our country's subway industry will never develop. Fortunately, my smart card project, if it works well, can fill this gap in our country's technology. Foreign equipment costs hundreds of millions, while our equipment might only cost a few million!”

Zhou Haoran deeply resented this.

Many traditional technology companies abroad, relying on their technological advantages, charge exorbitant prices.

These kinds of companies will all go bankrupt as soon as domestic alternatives emerge!

It's like a movie ticket vending machine.

Initially, it wasn't available domestically and had to be imported.

Foreigners always ask for exorbitant prices.

Later, domestically produced automatic ticket vending machines came out. They were cheap, easy to use, and technologically advanced, able to communicate and connect with smartphones, which completely wiped out foreign companies.

The seaport is where the country's modern subway system began.

Whether for personal or national interest, it is essential for him to get involved and help develop domestic alternatives.

Jiang Feibiao asked in a deep voice, "So how do you plan to handle this? We can't just hand over the market to the Japanese, can we?"

Zhou Haoran laughed and said, "The team from the University of Tokyo is here, even the professors are here. Next Tuesday, I'll have a live showdown with them to test whose product works better. It'll be a fair and just competition."

"Ah."

Jiang Feibiao nodded.

Zhou Haoran said, "We have a high probability of winning."

"We absolutely have to win!" Jiang Feibiao was still counting on this project to open up new business for the Narcissus Group, and he was even more anxious than Zhou Haoran. "Next Tuesday, right... Okay, I'll talk to my dad about it!"

...On the weekend, Qiao Nuo went to Zhongbo Bookstore with her master.

Holding an ice cream cone in my hand.

"An ice cream costs over ten yuan; this business is really profitable!"

Even Jono thought the ice cream was too expensive.

Zhou Haoran, who was driving, said, "Ice cream is cheap, but ice cream machines are expensive, right? They must be imported! For this kind of cold drink product, you can make back your investment in just one summer."

"Oh, I see..." Qiao Nuo suddenly realized, "It seems that business isn't doing too well."

Zhou Haoran said with emotion, "That's why everything is in ruins and needs to be rebuilt. Every industry and region needs to be localized."

Jono grinned and said, "The book project is one too."

The two went to Zhongbo Bookstore to meet with Deputy General Manager Qi Deqiang.

Let's discuss the domestic copyright issue of "Harry Potter".

Jiang Xiong and Wei Jie have been in England for several days.

Because they acted early, it was easier to sign the copyright agreement.

“I heard from Wei Jie before that the signing fee for the copyright of Harry Potter in the US market was only $10, and the royalty was 12%.” Zhou Haoran was an outsider, so he had to consult with an expert.

Qi Deqiang looked down at the faxed document. "The information here shows the same thing. No wonder it's America; they're really rich, and they offer really high terms."

"Huh?" Zhou Haoran was surprised. "These conditions are alright?"

Qi Deqiang said, "Such conditions can't be offered in China. Signing fees aren't common in China. Authors are lucky if they don't have to pay the publisher to publish a book, let alone pay a signing fee."

"Neither Yu Hua nor Mo Yan?"

"nothing!"

"Oh."

Zhou Haoran knew that domestic intellectuals were weak, unwilling and unable to fight back, and found it difficult to win their rights.

Qi Deqiang said, "In Europe and America, royalties are generally between 10% and 15%, and excellent works also receive a large signing fee. It's different in China. There are no signing fees in China, and royalties are very low, generally only 6% to 8%. Even a best-selling work like 'To Live' doesn't reach 10%. Maybe it will be better in a few years."

"The domestic book market is small..."

This is the only way Zhou Haoran can analyze it.

Qi Deqiang shook his head, "It can't be said to be small, we have a large population. There are mainly two factors. First, piracy is too serious, legitimate publishers don't make much money, so it's even less likely that they will give authors a lot of royalties."

Zhou Haoran nodded. "That's true."

"Secondly, the domestic book market has very low sales volume."

Qi Deqiang used an industry term.

Zhou Haoran didn't understand, "Market value?"

Qi Deqiang laughed and said, "That's an old way of saying it. 'Yang' means silver dollars. 'Marked price' is the price tag on the back of a book. There's also a corresponding 'actual price,' which refers to the book's actual selling price."

Zhou Haoran said with deep respect, "The good things from the past should truly be passed down."

"Mr. Jiang told me that we can negotiate the rights to 'Harry Potter'." Qi Deqiang can no longer act unilaterally. "The royalties are estimated to be between 6% and 7%, based on the low standards in China. There is too much uncertainty in the domestic market for this kind of magical literature."

Zhou Haoran was delighted, "Great! This price is very reasonable!"

"However, the publishing industry in Europe and America is very mature, with a whole set of market rules, which is very different from that in China." Qi Deqiang said helplessly about this.

Zhou Haoran asked, "What's wrong?"

Qi Deqiang said, "The other party requires that at least 5 copies be printed every year."

"can!"

Zhou Haoran accepted the condition without hesitation.

This condition is easy to meet.

50 copies would be easy.

Qi Deqiang continued, "There is another requirement: 5% of the total sales revenue each year must be allocated as marketing expenses to promote the Harry Potter series... To put it bluntly, it's about operating the 'Harry Potter' brand."

"Ah!"

Zhou Haoran thought to himself that the publishing market in Europe and America was indeed very mature.

That was a brilliant move!

Qi Deqiang said, "The domestic publishing market has never had such conditions before. To be honest, this is the first time I've ever heard of them. These conditions are really good; we've learned something from them."

“Different countries have different national conditions,” Zhou Haoran scoffed. “J.K. Rowling is ultimately a housewife; she doesn’t understand the ins and outs of business. Even if she allocated 50% of her annual sales to marketing, let alone 5%, what difference would it make?”

Qi Deqiang opened his eyes wide.

Suddenly I understood what Mr. Zhou meant.

5% is still reliable.

50% is ridiculous.

If Mr. Zhou dares to say that, then there is only one explanation.

This is also one of the most common forms of "insider trading" in the domestic publishing industry.

Data fraud!

In reality, 20 copies were published, but only 5 were reported.

In this way, you only need to pay royalties or marketing expenses based on the sales value of 5 copies.

"Then agree?"

Qi Deqiang understood what he meant.

“That’s acceptable.” Zhou Haoran felt that wasn’t the main point and asked, “What’s the contract term? How many years?”