My 1999

#1208 - The Future of Kunlun

"I think it should be guaranteed. I heard that a group of bosses including Shi Dazhu sympathized with Guo Wei's situation, or wanted to make things difficult for me, so they invested several hundred million in Guo Wei."

Wang Ling was a little surprised that Mr. Xu knew such a secret matter so clearly. Doesn't this mean that everything Guo Wei did in Lenovo was under the control of the other party?

Suppressing his surprise, Wang Ling said, "Then implement an employee stock ownership plan!

Guo Wei originally wanted to implement it after the MBO, and the employees were also looking forward to it.

If the company conducts equity incentives and lets everyone see the courage of the new shareholders, it can stabilize the morale of the troops. "

Yang Tingkun looked at Xu Liang, he put down the teacup in his hand and nodded with a smile, "This method is OK, is there any other way?"

“Cooperating with Hongmeng on a big project, such as cloud computing, has shown that the company has not only not gotten worse, but has gotten better and better.”

Xu Liang was silent for a moment, then said, "The investment in cloud computing is too huge, and Huaxia Digital cannot participate."

"Other projects are also fine, such as being the agent for Kunlun Mobile Phones, which can just fill the business gap caused by the termination of cooperation with the Conscience Company."

Xu Liang turned his head and smiled, "Old Yang, it seems like great minds think alike. We think alike."

Yang Tingkun, who was sitting on the side, smiled and nodded.

"With the addition of talents like Mr. Wang, our acquisition of Huaxia Digital is worth the money."

"Thank you for the compliment!"

Xu Liang gestured to continue.

"The effects of these measures will be immediate. At least everyone will regain confidence in the company."

"No!"

Xu Liang: "There is still one thing missing."

Wang Ling's face was full of confusion.

"You become the president of the company and show the conscientious old subordinates that we in Hongmeng can still accommodate people."

Wang Ling was surprised, but also excited.

He is now the president of China Digital Engineering Academy and vice president of China Digital IT Service Group, but he is not even among the top five in the company.

"Old Yang will temporarily serve as CEO. You two have many similar ideas and should have a lot in common."

Wang Ling understood immediately that the boss was telling him that if he did a good job, he could take over the position of CEO in the future.

After understanding this, he became even more eager and quickly said, "Boss Xu, don't worry. I will restore stability to Huaxia Digital as soon as possible."

"Old Yang, what do you think of people?"

"The overall feeling is pretty good. The specifics will depend on his usual performance."

Xu Liang smiled and said, "As the saying goes: You can know a person's face but not his heart. You really have to look at his daily performance."

Yang Tingkun agreed and took out a document and handed it over.

"Boss Xu, this is the management structure we have initially drawn up after Pangu Company absorbs Huaxia Digital's software business and R\u0026D team."

Xu Liang took it and flipped through it.

According to the opinions of Pangu's management team, the company will be divided into four parts: cloud computing department, big data department, office software department and industrial software department.

Below the four departments are the specific software development businesses.

Xu Liang took a look and found that there were a total of 13 different software, as well as 7 secondary business departments such as big data analysis and cloud storage.

“I think your vertical management structure is a bit complicated.

Pangu is the first-level management structure, the four departments are the second-level management structure, the major sub-business departments are the third-level management structure, and the major development teams are the fourth-level management structure.

If ordinary employees are at level five, you have to skip three levels if you want to hear the opinions and ideas of lower-level employees.

What do you think the chances are?"

Yang Tingkun is obviously a smart man. "You want to abolish the four departments?"

"Well... Your management team is directly targeting the major software R\u0026D departments and business departments, which only have about 20 people in total. Even if there are more, we can still handle it.

By removing this level, Pangu's management efficiency can be increased by at least 50%. "

"Understood. We will make the corrections as per your request as soon as we get back."

Xu Liang nodded and asked, "Can the company's big data analysis system now reach the third level?"

"Not yet. We still don't have enough data. We can only do 'diagnostic analysis' for now."

There are four levels of big data analysis systems.

1. Descriptive analysis: This is the basic level of big data analysis, focusing on summarizing and presenting historical data.

Statistical reports and data visualization charts are used to help users understand what is happening in the data. Common techniques for descriptive analysis include data visualization, data clustering, and data mining.

2. Diagnostic analysis: Based on descriptive analysis, further dig into the data to find out the causes and connections behind the data.

Through operations such as correlation analysis, regression analysis, and causal analysis, the relationship between data and the driving factors of changes are revealed, helping users understand the root causes of data changes.

3. Predictive analytics: Use statistical models and machine learning algorithms to predict future trends and outcomes.

Common predictive data analysis methods include regression analysis, time series analysis, and machine learning models such as decision trees, random forests, and neural networks.

4. Prescriptive analysis: Provide the best action plan and decision support based on predictive analysis.

This level not only predicts the future, but also develops action plans based on the predicted results to help users make better decisions.

Xu Liang's face became hesitant and he remained silent for a long time.

It was the first time that Yang Tingkun saw him like this.

In his impression, no matter what happens in the huge Hongmeng Group, the big boss can handle it with ease.

“Lao Yang, when a company grows to a certain size, it needs to assume certain social responsibilities.

Therefore, I plan to set up a big data analysis system for natural disaster warning within the company.

At the beginning we should not be greedy and try to do too much.

Do the earthquake first.

By collecting data on geology, air, flora and fauna before and during earthquakes around the world, we can build a big data model, continuously enrich the data, improve the algorithm, and build a rich earthquake database, so as to be able to predict earthquakes in the future.”

Yang Tingkun was shocked. He didn't expect that the thing that made the boss ponder for so long was actually this.

However, seeing his serious look, Yang Tingkun knew he was not joking and started to think about it quickly.

"Mr. Xu, data analysis is a probabilistic thing. We can never be 100% accurate. But for something like natural disasters, if we can't be 100% accurate, it will cause huge social problems."

Xu Liang understood what he meant.

If the higher-ups had listened to their advice and relocated people ahead of time, resulting in hundreds of millions or even billions of dollars in costs, but the earthquake did not happen in the end, who would be responsible for these costs?

"We try our best to be accurate, do our own job well, and don't ask about other things." Xu Liang said.

Yang Tingkun nodded and said, "I will go back and organize some people immediately."

"After all, this is a public welfare project. The funds will be provided by the group. We will give you 500 million Chinese yuan in advance. This year, you must spend all of it on this."

Yang Tingkun was surprised at his boss's generosity.

He could hire hundreds of high-quality engineers and still not spend all the money even if he worked for a year.

"Lao Yang, I've given you the money. I want to see results in half a year."

Yang Tingkun looked embarrassed, "Boss Xu, isn't half a year too short?"

"Is it short? Pangu has been doing data analysis for nearly three years and has established mature data analysis models and algorithms. Now that we have the foundation, is it difficult to add more details?

If it is a problem of funds and personnel, I will ask Mr. Xie to work with you to solve it."

Since the big boss had said so, what else could Yang Tingkun say but to agree.

Xu Liang sighed in his heart. If possible, he didn't want to force Yang Tingkun, but time was running out!

"By the way, you and Mr. Xie should hold a press conference together to discuss this matter. This way, you can go to the Earthquake Bureau to get data in the future and they will cooperate with you."

"OK."

Xu Liang hesitated for a moment and said, "If you think half a year is too short, let's start with Sichuan and Chongqing. That is the largest earthquake zone in our country and an area prone to earthquakes. Let's focus on that area first."

"Um."

After finishing the explanation, Xu Liang sighed. This was all he could do.

As soon as this project is completed, he can reveal Wenchuan's affairs to the higher-ups through a reasonable channel.

As for the final outcome, it is beyond his control.

By then, I will have a clear conscience.

——

As we entered January, the temperature dropped significantly.

But for Xu Liang, who has been practicing martial arts for many years, these are nothing.

After getting out of the car, he looked up at the towering 'Golden Landmark Building' in front of him, which is now the headquarters of Kunlun Industrial Group.

This 5A-level office building, which covers an area of ​​17,538 square meters and has a construction area of ​​100,000 square meters, was transformed from an unfinished building acquired by Taihua.

After its completion at the end of 2005, it was leased to Kunlun Company as its headquarters.

But as the company grew rapidly and the number of people increased, it was obviously not enough.

"Have you considered the new headquarters?"

Lei Jun at the side said with a smile: "We have already discussed with Shanghai, and the initial plan is to acquire a piece of land covering an area of ​​300,000 square meters, about 450 acres, in the Zhangjiang High-tech Park.

Twelve office buildings will be built on this land, with a total construction area of ​​about 500,000 to 600,000 square meters, which can accommodate 40,000 people working at the same time after completion.

“What about the budget?”

Lei Jun: "Because we are a technology company, we can enjoy great policy benefits when acquiring land, and we can get the land for about 500 to 600 million yuan.

The main costs are construction and decoration, and the total investment budget is about 5 billion Chinese yuan."

"The reserve price is a bit high, about 10,000 yuan per square meter." Xu Liang said with a smile.

As he owns the largest real estate company in the country, he is very sensitive to housing prices.

“It’s not particularly high, but it’s considered top-notch in China.

However, Kunlun Industries is striving to develop and develop towards the goal of becoming a leading technology company, so naturally its standards in all aspects must reach the top level in the industry.

Building a high-standard science and technology park can showcase the corporate image externally and enhance employees' sense of belonging internally.

Furthermore, our staff size has grown so rapidly that it is inconvenient to have multiple offices, and we can be more efficient if we gather together.”

Xu Liang nodded. Lei Jun's plan was still very practical. He was not as ostentatious as when he first invested in building the "Hongmeng Headquarters".

Otherwise, the total investment would be more than 5 billion, and a zero would have to be added at the end.

After entering the building and arriving at the office on the top floor, Xu Liang smiled as he overlooked the most prosperous Pudong Financial City and the Bund on the Huangpu River.

“Compared to when I first came here 2,000 years ago, Pudong has been thoroughly developed.”

"Eight years is enough to change a lot of things." Lei Jun said with a smile.

Xu Liang nodded and waved for him to sit down.

"I heard that you and Dong Mingzhu donated air conditioners worth 100 million Chinese Yuan to primary and secondary schools in the central and western regions?"

Lei Jun nodded and said, “I went to inspect the area some time ago and found that the development of our country is very uneven, especially in education.

Children in the developed eastern coastal areas can study in classrooms with air conditioning and heating, and at worst there are heating stoves.

But the children in rural Midwest China can only endure it. Many of them have frostbite on their hands. When they write, their fingers are so swollen that they can't even hold a pen steadily. It's so pitiful.

So I wanted to offer some help.”

"I understand your desire to help these children, but this is a bit thoughtless on your part.

Donating is very simple. Donating 1,000 or 10,000 air conditioners is no problem, but who will pay for the subsequent electricity bills and maintenance and repair costs? "

If there was a little education funding, we would not be unable to light a stove in the winter.

Lei Jun was stunned for a moment and then smiled bitterly: "I still fell into the wrong thinking and had some utilitarianism. I wanted to echo this home appliance pilot activity in the countryside and create a good corporate image in the rural market.

I didn’t expect it to become ‘Why not eat meat?’”

Xu Liang didn't say anything. In November last year, in order to boost the economy, the authorities planned to carry out a pilot program of bringing home appliances to rural areas in Shandong, Henan, Sichuan and other provinces, providing direct fiscal subsidies of 13% of the sales price for the three major categories of products: color TVs, refrigerators and mobile phones.

The subsidy was officially implemented on December 1 last year.

As the country's largest home appliance giant, Kunlun certainly would not miss such a big event.

At his request, Lei Jun and Dong Mingzhu even went to the three provinces to inspect the work in person, talked with electrical appliance dealers in counties and towns, learned about the actual needs of farmers, and made some preparations for bigger actions next year.

The impact of the current financial crisis has not yet fully spread. By next year, the country will call for expanding domestic demand and promote the policy of bringing home appliances to the countryside to the whole country.

Kunlun Industrial Group's 'Smart Home Division' is the core industry of Kunlun Industrial Group.

The promotion of home appliances to rural areas is a good opportunity for Kunlun Industrial Group to capture the lower-tier markets. If it is well managed, it will not only continue to expand the market share of first-tier brands such as Supor, Gree Air Conditioners, and Skyworth TVs.

It can also give Little Swan, Meiling Refrigerator and other brands that have fallen to the second tier a chance to catch up.

In short, he attaches great importance to the promotion of home appliances to rural areas.

"What happened happened, it's a good thing anyway, so I won't talk about it. The key now is that we must seize the opportunity of bringing home appliances to the countryside."

After a pause, Xu Liang continued.

"In the past, the rural market has not received much attention from home appliance manufacturers because of its relative dispersion, low consumption level, and much higher costs for logistics and after-sales services than in cities.

However, I believe that with the continuous deepening of the policy of bringing home appliances to the countryside, the factors restricting farmers' home appliance consumption will gradually begin to ease.

You have also personally visited counties and small towns and have seen that rural consumers are very enthusiastic about buying home appliances. It is not that they do not have money, but they have deposited all their money in banks and usually are reluctant to spend it.

However, the introduction of the home appliance subsidy policy will allow farmers to feel the real benefits and will greatly stimulate the consumption potential in rural areas.”

Lei Jun nodded and said, “This is an opportunity, but also a challenge.

In order to truly reap the benefits of this wave, we need to make some changes around the rural market that are more in line with the rural usage environment.

For example, adding rat-proof and lightning-proof designs to home appliances, or adding rural environment adaptability functions such as moisture-proof, ultra-wide power supply, and super-strong reception signals to home appliances.

At the same time, it is also necessary to improve the rural sales channels and distribution service system, and extend the business tentacles from first- and second-tier cities to the vast county and township markets.

After-sales service guarantees also need to be further improved. Farmers are looking forward to home appliances going to the countryside, and they also look forward to "services going to the countryside." We cannot damage the brand's reputation by quickly seizing the market.

From what I have observed, old brands such as Changhong and Konka have been declining for many years, but in the minds of farmers, they are still among the best brands of color TVs.”

Xu Liang nodded. He was from the countryside, so he naturally knew the reason very well.

"The first color TV purchased by many rural families was Changhong or Konka. Ten years ago, they were the best color TV brands and their brand image was deeply rooted in people's hearts.

Because of the lack of information in the rural areas, they don’t know that the two TV giants are already aging and falling behind in the new technology era.”

Lei Jun smiled and said, "That's right. I'm a little worried that Skyworth won't be able to compete with other brands in the rural market."

"This requires you as the CEO to come up with a solution."

Lei Jun nodded. "It's a pity that air conditioners, kitchen appliances, and small appliances are not included in the subsidy list this time. Otherwise, several companies could cooperate to organize some activities, such as giving away small appliances when buying a TV, and giving away air conditioner coupons worth 300 to 500 yuan when buying a refrigerator..."

Xu Liang: "Don't worry, isn't it all said above?

This is a pilot project. Once the results are good, we will definitely promote the successful experience to the whole country, and expand more subsidy categories.”

"I can't wait. After this survey, I found that the sinking market is really a gold mine. We must transform the home appliance production line for the rural market as soon as possible.

We need to expand the sales network to rural areas and improve after-sales service outlets. There is a lot of preparation work to be done.”

Seeing his excitement, Xu Liang smiled and asked, "Does the company still have sufficient funds?"

Although Kunlun Industrial Group has an ambitious development plan, it has six business groups, dozens of subsidiaries, and thousands of different products.

However, the focus during this period was still on internal integration. In terms of development, each company was still fighting on its own and had not truly achieved comprehensive integration in logistics, procurement, finance and channels.

Without being integrated into a whole, administrative costs remain high.

In addition to maintaining operations, most of the profits earned by the group are used for research and development investment.

After all, semiconductors, the Internet of Things, drones, and power batteries are all big money-burning industries.

In addition, there is a big boss who likes to do research and development, so Kunlun really doesn't have much cash in its account.

"Of the 2 billion dollars you gave me last time, there is still 537 million left; the group had a surplus of 5.74 billion Chinese yuan last year.

The company still has debts of 6.9 billion Chinese yuan.

However, with the construction of the industrial park and continued R\u0026D investment, the company's liabilities will increase to a certain extent." Lei Jun said.

"Reasonable debt is beneficial to the development of the group, so there is no need to worry too much."

Throughout 2007, Kunlun Industrial Group's total revenue exceeded 160 billion Chinese yuan.

The company with the highest revenue is Kunlun Technology.

In one year, Kunlun K1 mobile phones sold nearly 3 million units, and this alone generated 15 billion in revenue for Kunlun.

Compared with mobile phones, Kunlun sells more computers.

From the beginning of making computers in 2003 to now, in nearly five years, Kunlun Computer has taken root in Asia, especially in the Chinese and Southeast Asian markets.

It is second only to Lenovo in China. In the Southeast Asian market, it has surpassed Lenovo to become the best-selling computer brand in Southeast Asia by relying on the offline channels of Netcom and the logistics and channels of No.1 Store.

In 2007, nearly 9 million PCs and 12.8 million notebooks were sold, with domestic market sales accounting for 64%.

Plus MP3, MP4, speakers, external monitors, U disks and other devices.

Kunlun Technology’s total annual revenue exceeded 94 billion Chinese yuan.

It is undoubtedly the biggest revenue generator for Kunlun Industry.

Second only to Kunlun Technology is Gree, with total revenue of 38 billion Chinese yuan in 2007.

Skyworth ranked second with total annual revenue of HK$13 billion.

Other brands are much worse.

"The money in the financial account has made a profit of 4.1 billion US dollars, and there will be more income in the future. After a period of time, I will transfer part of the money to the company's operating account, and you can use this money to privatize and delist Gree, Supor, Little Swan, and Skyworth." Xu Liang explained.

Lei Jun nodded.

Privatization and delisting was a strategy that had been decided long ago. Otherwise, the "Smart Home Business Group" would never be integrated into a real company and connect finances, personnel and channels.

There is no way to save costs or improve efficiency.

"How is the development of Kunlun K2 mobile phone going?"

“The prototype has come out, but it is based on Samsung’s ‘APL0098’ chip and its functionality is much worse than we originally expected.

The Tianshan S1 chip we developed ourselves has not yet been released.”

There are not many options available for smartphone chips in the world right now.

Besides Samsung, there is Apple's own 'APL0098', also known as A4.

However, even the A4 was improved based on the Samsung processor, and it was not until the A5 that it truly embarked on the path of independent design.

The same goes for Kunlun, which also uses Samsung chips.

But Kunlun entered the SOC design industry later than Apple. If it weren't for Xu Liang's relentless investment in design and poaching of Chinese chip design talent from around the world, Kunlun would have been the first company to enter the SOC design industry.

There is no chance to make your own chips.

“Can you spare the time next year?”

Seeing that Lei Jun was a little hesitant, Xu Liang didn't make things difficult for him.

"Forget it, let's do it based on our own time. But you have to communicate well with SMIC to make sure they can make the chips we designed for us."

"yes."

"What stage has Liang Mengsong's cooperation with SMIC reached?"

Lei Jun hesitated for a moment, "The two sides have not yet carried out substantive cooperation."

"Why?" Xu Liang frowned.

"SMIC advocates the development of 45nm chips, but Liang Mengsong feels that if they just follow the footsteps of overseas giants, they will never catch up or even surpass them.

So he wanted to abandon the research and development of 45nm and directly study 32nm or even 28nm technology.

SMIC thought he was dreamy and unrealistic.

Liang Mengsong feels that SMIC has no vision.

After several meetings, the differences between the two sides were still difficult to bridge. Liang Mengsong had talked to me several times and suggested giving up cooperation with SMIC.

He said that it was a waste of life to stay with these short-sighted guys. "Lei Jun smiled bitterly.

Xu Liang suddenly realized.

When Liang Mengsong joined Samsung, Samsung adopted FinFET technology and successfully achieved mass production of 14nm process, which was half a year ahead of TSMC's 16nm process.

This technological breakthrough enabled Samsung to compete with TSMC and successfully snatch orders from Apple and Qualcomm, dealing a major blow to TSMC.

Now that he has joined Kunlun, he will choose the same development path.

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