〖Chapter 371 has been released, welcome to subscribe, thank you!〗

Apart from making a phone call to Zhou Shouyuan to help find someone, Li Zehua did not participate in any other matters.

The original plan was to lock up Liu Sen and use him as a bargaining chip to make the other party afraid to use tricks in the future. It was the Taishan Sect's overreaction that made Li Zehua realize that something was wrong.

Only then will there be a series of major actions afterwards.

Fortunately, the power he controlled at that time was not strong enough, so Lijiapo took advantage of the situation and ended up frightening him instead of giving him a gift...

"Keep this matter to yourself and never tell anyone else."

After returning to the hotel, Li Zehua washed his face and regained his spirits. Facing Zhou Shouyuan, who was in tears and laughter, he said unhappily, "Okay, isn't it normal for this kind of thing to happen in Indonesia and Malaya?
I don't believe you haven't seen more outrageous stories. Aren't there many stories about the Malaysian family and the Luzon family in the past few years?"

Zhou Shouyuan then put on a normal smile, "Isn't this just to cooperate with you? The big boss is frowning, and I, as a subordinate, don't take it seriously. What if you make things difficult for me later?"

"How big are your feet? I'll order a pair for you later!"

Zhou Shouyuan is different from others. He is an ally rather than a subordinate. Li Zehua understands this clearly. After the joke, he calls Lin Wenhui in.

The three of them made a brief summary of the details of the whole day's negotiations.

Lin Wenhui started by introducing: "...after three months of full communication, and your personal appearance and face-to-face communication with the bosses of several groups.

We have reached an agreement on the share allocation of the Group's Southeast Asian branch, with Temasek Holdings as the lead investor. The preliminary agreement on the first round of financing cooperation is as follows:
Micropayment Financial Services Group, each company invested US$1 million and holds 20% of the post-investment shares.

WeChat Technology, US$8000 million for a 20% stake.

SF Lifestyle Services Group, US$3000 million for a 30% stake.

Qingyun Electronic Technology Group, US$3000 million, holds a 25% stake.

Rongwei Electronic Technology Co., Ltd., US$500 million for a 10% stake.

Pinxixi (International) E-commerce Company, US$2200 million, 20% stake
Douyin Interactive Entertainment Technology Co., Ltd., $200 million for 5% of the shares..."

Hearing this, Li Zehua couldn't help but ask: "The valuations of Roewe and Douyin are so low?"

Zhou Shouyuan said:

“The unit price is too low. You require that the price of the entire Roewe series cannot be higher than 1,000 yuan. Based on the labor costs in the mainland, the purchase of external parts, and the cost of technology patent licensing, this price has almost no profit.

Even if you can get additional data package subsidies from telecom operators, long-term losses are inevitable.”

Li Zehua frowned, "Don't they know that, except for the first generation of products, the subsequent Roewe series will use cheaper purely domestic technology and parts?"

Contrary to what most people imagine, smartphone-related technologies have actually been developed in China for six or seven years, but no unified standards have been formed and no one has stepped forward to integrate resources, so costs naturally cannot be reduced.

Moreover, most of the technologies lag behind the mainstream by one or two generations, so it is difficult to gain a competitive advantage, but it is better to have it than not. The Honor Panda uses 500/800 million pixels, and Roewe can make do with around one million.

Other aspects are nothing more than low frequency, smaller memory and storage, and easy heating after long-term use (process materials should be saved as much as possible).

But there are also advantages!

For example, the quality of mobile phone screens is similar, both are supplied by Chengdu BOE Semiconductor, the Roewe mobile phone audio equipment is louder (without considering the sound quality), and the battery is removable and has a longer battery life.

It also thoughtfully provides users with a purely domestic mobile phone operating system.

In this respect, it has more advantages than the Android system, because the whole package launched by Google in collaboration with more than 40 companies charges fees but still has many loopholes.

Qingyun and Beidou Navigation System have jointly launched the Qingyun mobile operating system for overseas markets. It is completely free and also provides a series of other related products, all of which are free of charge.

Zhou Shouyuan didn't know whether to laugh or cry after hearing the introduction, "Chairman, no matter how much you say, it won't change the fact that Roewe phones don't make money. It's impossible for a thousand-yuan phone to make a 10% net profit.

Even if all parts and systems are domestically produced and costs continue to be reduced, making 50 yuan per unit would be a great profit, not to mention the need to build a huge sales and maintenance network.

In the past few years, there was only investment but no output. The profit from selling 5 million units was only million, which was not even enough to cover the annual maintenance costs of building sales outlets.

If this continues, the annual loss will be at least over 10 billion.

How many people are willing to bear long-term losses? "

What Zhou Shouyuan said is true. In the early stage, Roewe could ship its products through the sales network of local telecom operators, but as its scale grows, it will easily impact the original sales system.

Relying on its cost-effectiveness, Roewe mobile phones can easily seize the market share of other similar products. Over time, the following electronic product dealers will unite to boycott.

If you don’t make money from selling products, who would want to be a sucker?

Therefore, it is imperative to build a sales system covering the entire Southeast Asia. Fortunately, Roewe Electronics does not need to bear all the expenses in this regard, as Qingyun Electronics and SF Life Service Group can share the expenses.

Otherwise, if we really build thousands of sales outlets from scratch, the annual loss will be more than 10 billion.

Li Zehua had no choice but to give up and turned to ask Lin Wenhui, "What does Douyin Interactive Entertainment mean? Two million dollars to send away beggars?"

Lin Wenhui said: "We are still communicating. There are two main reasons. First, Southeast Asia's communication infrastructure is poor and wireless signal coverage is weak. The call quality can only be guaranteed in large cities and their surrounding areas.

Many remote areas cannot even guarantee electricity, and WeChat Technology’s video call function is not easy to use outside the city, not to mention video entertainment that requires higher data transmission.

Based on the current situation, everyone agrees that the scale of Tik Tok's interactive entertainment users in Southeast Asia will be inherently limited, and no one can change this business logic in a short period of time.

We can only wait for the overall environment to improve.

But you know, it is very difficult to expect these people to take the initiative to upgrade infrastructure services. We can only pin our hopes on Roewe Electronics, whose low-end smartphones sell well and can increase the user base.

Profitable services will encourage telecom operators to increase investment, expand network coverage and improve transmission speeds.”

Li Zehua sneered: "These guys are really cute. Roewe Electronics' products can expand the user base of telecommunications companies, but they don't invest.

They are waiting for us to do the most difficult things and then sit back and enjoy the fruits of our labor. This is really absurd.”

He was thinking that after two years, if he could establish good relations with these local forces in Southeast Asia and have money in his hands, he could take the opportunity to enter the telecommunications industry and even take away the pot, leaving no soup.

Lin Wenhui was helpless. The development status quo in Southeast Asia has always been like this. Priority is given to the development of model projects, and the good places are comparable to Europe and the United States, such as Lijiaopo, Kuala Lumpur, Malaya, and Bangkok, Siam.

This is a paradise for the rich and hell for the poor. If you leave the big cities, even if you just go to the suburbs, you will find that it is exactly the same as Africa and has retained its original ecology.

The most basic water, electricity, road transportation and modern facilities required for a living environment are all missing. Many rural areas have no electricity or running water, and life is not much different from a hundred years ago.

He envied the University of Tokyo from the bottom of his heart, because only there could a modern infrastructure system covering the entire country be established.

The three words "Village to Village" are enough to explain everything.

What he didn't know was that even before Li Zehua was reborn, many places in Southeast Asia had not changed at all. For example, Annan, near Dongda, needed more than 30% of its electricity to be provided by Yunnan and Guangxi provinces.

At the slightest sign of trouble, the power would be cut off immediately, leaving the other side in complete darkness.

Haven’t you seen those big guys who once fled to Southeast Asia to invest and build factories, only to come back in disgrace to make a living? One reason is that the local infrastructure is not keeping up.

Quality education is the foundation!
Who can tolerate a group of employees who can’t even figure out the simplest addition, subtraction, multiplication and division?
The wages are low, but their productivity is ridiculously low...

"The second point is that everyone believes that Douyin is also based on social culture, which conflicts with the positioning of WeChat technology. In the current environment, WeChat's convenience will quickly occupy the market."

Lin Wenhui has a deep understanding of the current situation in Southeast Asia. "When the telecommunications equipment needed by short video platforms is updated, it is very likely that there will no longer be a place for it in the market."

"It's good to underestimate it! It's better not to invest, so that you don't have to share the money in the future." Li Zehua wanted to applaud them. The Douyin short video platform is indeed hardware-intensive. At least in the 3G era, it is difficult to achieve real-time live broadcast and provide traffic support for unlimited short video viewing.

It is impossible to expect the self-financing telecommunications operators to fill the gap out of their own pockets. Except for Dongda, no other company dares to boast that its infrastructure is ahead of economic development.

Most foreign telecom operators will only raise funds to upgrade their infrastructure based on actual demand growth (with serious lags). Otherwise, investors and financial institutions will not give them money.

For example, if a local area wants to upgrade and build telecommunications facilities covering a million people, it must first consider whether there are so many users, how many years it will take to recoup the investment, how to maintain its advantage in the face of competition, etc.

Then we had to lobby investors, get policy subsidy rebates, negotiate with financial institutions, and finally one or two years had passed, coupled with the slow construction environment.

Hey, five or six years have passed from the project initiation to the completion and commissioning, so when our northern neighbors are starting to enjoy smart manufacturing in the 5G era, they haven’t even completed 3G coverage, let alone 4G.

Don't ask, the answer is 3g is enough.

In reality, the money invested in 3G has not yet been earned back, so how can there be any motivation to continue upgrading and updating equipment technology?
What does it mean to fall behind step by step?
That’s it!

It doesn’t matter to ordinary users whether 5G is fast or not, and they don’t need to download big movies every day. The key is the smart industry that represents the foundation of a great country. Smart manufacturing cannot be separated from it...

"Please remember that after micropayments are fully rolled out in the Southeast Asian market, the investment direction through platform financing, commissions from product sales, and advertising revenue will be preferentially tilted towards the telecommunications sector."

Li Zehua is a person who will take action once he sees an opportunity. It is impossible to popularize 5G in any place other than the University of Tokyo, but 4G must be arranged.

In this industry, whoever controls the upstream will have the greatest say in the future.

While taking notes, Lin Wenhui asked, “We are not worried about domestic funds, but how do we solve the foreign exchange problem?

Currently, telecom equipment system suppliers, whether Qualcomm, Nokia, or Huaban, will not accept Southeast Asian currencies, right?
Even with Li Jiapo’s support, it would be difficult to get enough US dollars.”

“So we need to raise the valuation of various key resources on the market as much as possible, to a number that will make our competitors in the Southeast Asian market despair.

Then, we will use the public funds we have raised to swallow them up bit by bit, such as various commodities such as gold, silver, copper, iron, and even agricultural products.

As long as we have these resources to participate in international trade, we can earn foreign exchange through various trade with Todai.

If that doesn’t work, we can move some industrial assembly lines that don’t involve core technologies here, expand to surrounding markets based in Southeast Asia, and earn additional foreign exchange reserves.”

Li Zehua thought about it and added: "In the future, we can consider bringing in Roewe Electronics' semi-finished product assembly line. By getting some high-tech subsidies, it will help reduce costs.

As for the foreign exchange reserves, they must complement the industrial advantages of the group company. When you return, you will take the lead in setting up an import and export trading company to be responsible for these matters. "

Lin Wenhui wrote down everything he said. Zhou Shouyuan saw that the details of these things were almost the same before moving on to the next topic:
"Regarding the strategic cooperation with Lijiapo Semiconductor Industry, Mr. Lin Wendi expressed some different opinions. He hoped to recruit college students from the mainland who are interested in developing in the semiconductor industry.

Focused training, rather than short-term training and exchanges lasting three months or six months, will be more helpful in establishing a complete scientific research system.

The West has no restrictions on Lijiapo's cutting-edge technology and top-level equipment, especially here, through the channels of Jiaobenji, we can obtain the most advanced lithography technology and core equipment."

“The group is not considering it for now, mainly because the capital and other conditions are not yet mature. Rashly entering such a large industry will hinder the group’s development.

However, the channels can be handed over to relevant ministries and commissions. If they are willing to invest in establishing an entire production and R&D system, the group is willing to provide all necessary support.”

Are you kidding? Even if we invest in lithography machines and wafer chip business at this time and sell Qingyun Group as a package, the investment will not be enough.

How could a country's heavy equipment be made by just one person? In history, it took the country two or three decades and hundreds of billions of dollars to barely catch up with the gap within ten years.

His consistent principle towards Zhongxin was not to consider holding shares directly before 2012. Even if the Shanghai government urged him again and again, he would arrange for the Hong Kong Foundation, which had nothing to do with the group, to transfer the money.

One or two hundred million each time can keep him alive, but any more would be the end of him. It's not that he doesn't have money, he could squeeze out a lot, but the problem is that it's a drop in the bucket, and it's hard to help Zhongxin achieve leapfrog development.

More importantly, he found it hard to believe in a company that had just driven out its founder. Zhang Rujing's ending scared him. Even if he invested money and became a major shareholder, he would not be able to get control.

So why wade into muddy waters?

It is better to just give it a try first, and when the time comes and you have money in your pocket, then consider finding another way to enter the battlefield.

The prerequisite is that all businesses of Qingyun Group are on the right track and the layout can be completed before it suffers a comprehensive suppression from Yutai Capital.

He did not do nothing for this purpose. For example, Nanyang Polytechnic University is currently frantically contacting Liang Mengsong, who teaches at Sungkyunkwan University in South Korea.

There is nothing else to do, just a sense of family and country, plus a lot of cash, and the main theme is simple and crude.

Although Lijiaopo's semiconductor industry is not as powerful as South Korea's Samsung, it also has a certain foundation. Especially now, there is no shortage of funds, orders, or future. The only shortage is top talents.

According to Li Zehua's usual personality, as long as they are willing to come, he will first offer them the highest salary and benefits, and then make a big promise in advance. In the future, Lijiaopo will train three to five thousand scientific research talents, and then pack them up and bring them back to China.

It's fine if he wants to start his own business or acquire an industry. Anyway, he won't show up in person. He will let professionals do it. He will put on a vest and pay the money behind the scenes, and then consider other issues when the time is right.

As for why he must consider 12/13, it is mainly because he does not have that much money in his pocket. Compared with the huge investment in the chip industry, the money he has is not enough.

At that time, the non-compete agreements between Zhang Rujing and Liang Mengsong had just expired, so it was convenient for them to do anything.

As for Roewe's current orders, it doesn't matter. The second batch of standard systems for smartphones, including storage, flash memory, image processing and more than 80 chips, are all entrusted to Zhongxin for foundry production.

A mobile phone has hundreds of chips, and with five million or fifty million mobile phones, the accumulated order scale is an astronomical figure. Five billion chips of various types every year, even if you only make a profit from your hard work.

It can also make Zhongxin fat and healthy. What the wafer factory fears most is no orders. The yield rate is not high enough, resulting in high production costs. If there are orders, everything will be fine.

Now with Roewe, a major mobile phone manufacturer, and Shenzhou Electronics, a subsidiary of the rapidly growing Qingyun Group, the scale of chips required by the home appliance alliance will allow Zhongxin to expand its production capacity at full capacity.

With it attracting attention in the front, when a fund company and Lijiaopo jointly invest in and set up a factory in the mainland in a few years, it won't be so eye-catching, and maybe it can even gain the understanding of Youtai Capital.

Wouldn't it be perfect if we could poach more talent from TSMC, Samsung and other companies in the next two years?

He trains talents through front-line teaching work, and can also work part-time at the research institute to do technical development after get off work. He still has enough money to support himself, so he can use it as a reserve of technology.

Li Zehua had only one request: there should be no technical disputes, because many people were eyeing this thing, and the electronics industry was related to the lifeline of the group's overseas strategy, so no accidents could happen.

"Take out some money and donate it to universities like Nanyang Technological University every year, and add Hong Kong University of Science and Technology and other polytechnics. You can discuss the specific amount with Lin Wendi.

We should control the number of special recruits and not make a big fuss about it. This is also our small contribution to the development of the semiconductor industry."

Although he does not have the ability to change the current situation of the semiconductor industry, Li Zehua is still working hard bit by bit to prepare for the future.

“In addition, I have already reached an agreement with Lijiapo to build a research and development center in the semiconductor industrial park. Tell Lin Wending that I will give him 500 quotas this year.

In the future, we will add additional people every year. Don’t focus on software design. There are plenty of talents available in China. I only want talents in hardware research and development and technical research and development.

Try to recruit Chinese scientific researchers in China as much as possible, or from large companies in Europe, America and East Asia.

In the future, the necessary funding will not be reduced every year, and the number of places will increase every year. Let him pay more attention to the ideas of top scientific research talents, and transfer them all to China when the time is right. "

Zhou Shouyuan did not refuse, even though this was digging into Lijiaopo's scientific research foundation.

Li Yilong did not refuse. What was he worried about? They would have a share of the technology dividends in the future anyway, and the technology output would inevitably require Li Jiaopo to pay extra patent fees.

You see, it's that simple. I provide the money and you provide the technology. There's no so-called bottleneck. We can all do business in harmony. How great is that!
Finally, Li Zehua explained the matter of the funds in the Hong Kong account again, "Don't accompany me back to China this time, go to Hong Kong instead and settle the matter of the foreign guarantee and domestic loan first.

In addition, it is particularly important to take inventory of Qingyun Investment's total assets and divest investments involving sensitive technologies. You and Yao Xiangjun must coordinate clearly and not be careless. "

Lin Wenhui nodded, then looked at Zhou Shouyuan, "With the help of Qingyun Investment's financing, we should be able to ask these people to do something about cotton reserves." (End of this chapter)