Chapter 243: Amazing Inside Story

Wanyan Company sent it to him as a vice president in charge of external liaison affairs, surnamed Wang.

Vice President Wang was still a little nervous. He sat in the reception room, and a secretary accompanied him to talk, and from time to time he put on tea and water, but this could not eliminate his anxiety.

The development momentum of Wanyan Company looks good now, with a 100% market share, and many people will be so envious of it? But the internal senior management knows that this kind of illusory market share is just because they have the initiative. Another reason is that other companies need some time to borrow Wanyan’s vcd disc drive and it takes some time to build their own assembly line. Therefore, more than a year now should be the golden period of Wanyan Company.

But after this period of time, a large number of imitation models and followers will emerge.

By that time, Wan Yan would have a hard time.

Vice President Wang came here this time, but was commissioned by the company's General Manager Jiang to come to chase Fan Wubing.

Now everyone knows that Fan's Investment Group is the largest consortium in China and has a very wide business involved. Several investment projects are over 10 billion yuan. If such a large consortium can support Wan Yan, quickly expand the production line, and occupy the local markets earlier, the situation will be different.

Even if you carry out further research and development, you will have financial support, which is much easier.

But I don’t know if the big boss of Fan’s Investment Group can look down on his small foundation? You should know that Wanyan Company’s output is only tens of thousands of VCD drives a year, with an annual output value of less than 200 million, which is difficult to attract others’ attention!

In just about ten minutes, the door outside opened, and a young man walked in surrounded by several middle-aged people.

Vice President Wang immediately stood up. He had learned about it carefully with President Jiang before, and had also inquired about Fan Wubing's appearance. He knew what he looked like. The person in front of him was Fan Wubing.

"Hello, Mr. Fan--" Vice President Wang rushed forward two steps and held Fan Wubing's hand.

"Vice President Wang is so polite. Please sit down quickly. Well, give Vice President Wang some good tea. The best big red robe I left here last time--" Fan Wubing smiled and let Vice President Wang go to the sofa, then turned around and said to the secretary.

Everyone greeted each other for a while, and then Fan Wubing said to Vice President Wang, "Vice President Wang came from afar, probably because he was proactive, right?"

When Vice President Wang saw that Fan Wubing was straight to the point, he stopped talking about anything else, so he said to Fan Wubing sincerely, "I'm not hiding it from Mr. Fan, my company is currently facing a big crisis. This time I came here to take the liberty to see Mr. Fan, but in fact I was asking for help."

Fan Wubing thought it was true, but he did not show any special appearance. Instead, he asked in surprise, "Oh, how could that be? After your company launched the VCD disc machine, it was in full swing. Even our company bought several disc machines for use! The price of more than 5,000 units per unit is 100 million. Your annual output must be hundreds of thousands, right?"

"Mr. Fan, you are joking. The current situation of our company is that 40,000 units a year is as high as 40,000 units a year! How come the saying of hundreds of thousands of units?" Vice President Wang smiled bitterly when he heard this, "If there is really a production of hundreds of thousands of units a year, he would not be facing such an embarrassing situation!"

"Oh, I'd like to hear it carefully." Fan Wubing nodded and said.

Vice President Wang slowly revealed his purpose for this time, but Fan Wubing was a little surprised.

At that time, Jiang and Sun invested more than 100 million US dollars. After establishing Wanyan Electronics Company, they produced decoding boards from C-cube Company and developed VCD DVD player. The first generation of VCD machines was launched in September 1993 and passed the national appraisal in November of the same year. However, Wanyan's first batch of 1,000 VCD machines were bought by various electronic companies at home and abroad as prototypes and became the object of dissection.

In order to match the VCD machine, Wanyan purchased copyright from the Audio and Video Press and launched karaoke discs. In order to make Chinese people recognize and accept VCD machine, Wanyan Company spent tens of millions of yuan on advertising, vigorously opened up the VCD market, established a unique product and brand, and formed a set of molding technology to dominate the VCD world.

However, Wan Yan's early investment was too much, resulting in the early cost of each VCD machine being too high. In addition, the advertising costs were added to each, and each was sold for more than 5,000 yuan, and there was no profit. As a result, although tens of thousands of VCD machines have been produced this year, the instructor has only sold less than 20,000 units now.

Fan Wubing is clear about the following events. In the original historical trajectory, Wanyan Company was unable to quickly expand its production scale and reduce production costs due to lack of financial resources. Wanyan, who would be the famous VCD king in China, dropped from 100% to 2% within two years, and was finally merged by Anhui Meiling Group and became Meiling Wanyan Company.

In fact, because the assembly technology of VCD whole machine is simple and does not require much investment, many VCD assembly factories have flocked in in the past two years, importing bulk parts, quickly assemble and produce VCD whole machine, and putting it on the market. However, China is only a major VCD producer, not a strong country. The key is that China still lacks technical strength. The core chips and decoding boards of VCD need to be imported from abroad, which limits the rapid development of domestic manufacturers and can only be bigger but not stronger.

"To be honest, our company has a financial crisis now, and the production line cannot be expanded in time, and the initial investment is too much, resulting in a lack of succession." Vice President Wang said bluntly to Fan Wubing, "We, Mr. Jiang, hope to raise funds from your company to expand the production scale and reduce the average cost."

"How much money do you need? This kind of thing should be to go to the bank? Or directly apply for financial support from the state?" Fan Wubing asked with some doubts, "They should always see the huge business opportunities here, right?"

In the development of a large electronics enterprise, it is almost impossible to leave the financial support of banks or states. Apart from the exception of Fan Wubing, it is rare to hear that the company does not have a loan. Fan Wubing is very curious why Wan Yan didn’t go to the bank to make a loan?

Given their current situation, it shouldn’t be a problem to borrow hundreds of millions of dollars?

Vice President Wang smiled bitterly when he heard this, "For the banking, we, President Jiang, went to talk in person, but it was not completed. Now the country has tightened monetary policy and is very stuck in the loan project. Especially for such huge loans, it is impossible to approve them in a short time. If you follow the normal channels and everything goes well, you will not see the money until next year. But by that time, the daylily will be cold! As for the national special fund support, we don't have that way!"

Fan Wubing curled his lips when he heard this, thinking that this was the case. No wonder Wan Yan did not have the opportunity to expand production. It turned out that they could not raise funds, so there was no way.

Vice President Wang continued, "Although we, President Jiang, have never dealt with President Fan, we have known all kinds of industries under the Fan Investment Group. We know that President Fan has strong financial strength and we also know that President Fan has always worked hard to support national enterprises. Therefore, we sent me to contact us, hoping that President Fan can help us not let this banner of revitalizing the national electronics industry fall down."

"How much does it cost?" Fan Wubing stopped for a moment, looked up at Vice President Wang and asked.

When Vice President Wang heard Fan Wubing's words, he was overjoyed. It was obvious that Fan Wubing's tone was loosened, so he quickly replied, "The more funds, the better, but according to the current market size, as long as there are 200 million or 300 million funds, a VCD disk machine production base can be built. The scale of one million units a year can be achieved, and the cost can also be reduced to less than one-third of the current one."

What he said is in line with reality. The initial investment is only hundreds of millions of dollars. Even if the decoding board imported from abroad is relatively high, as long as the output increases, the cost of each machine will be thinner. The cost of one machine will not exceed 1,000 yuan. With other operating expenses, buying about 1,500 yuan will make a good profit.

According to the current market conditions, as long as a machine is less than 4,000 yuan and reaches about 3,500 yuan, it can trigger a market explosion! Then a huge profit of more than 2,000 yuan per unit, and a sales volume of more than one million units a year is quite attractive!

After hearing Vice President Wang's words, Fan Wubing suddenly felt a little hesitant.

Obviously, Vice President Wang's words were very attractive to him. The key point is that they are different from Wang Shihan. Wang Shihan now has no foundation and wants to replicate by borrowing vcd disc machines. Wanyan Company is different. They have their own R&D team and experience in developing products. At this time, there are also ready-made production lines. If they want to expand the production lines, they are just a shortage of money and other conditions are already met.

The 200 million to 300 million yuan is really not a big deal for Fan Wubing, but Fan Wubing also considered another issue. There are many companies that dismantle and imitate Wanyan Company's disc machine, and there may be hundreds of companies. If he funded Wanyan Company with a high profile, it would be equivalent to a large group of people, and the interests involved were still very serious.

Fan Wubing felt that it was not worth it no matter how he thought about it!

At this time, Fan Wubing also realized a key point, why the bank did not lend them, and why the country refused to provide financial support to them.

The key is that the trick here is too deep. One company fell down, but hundreds of companies may have emerged. These companies may need bank loan support. In comparison, which one is more cost-effective?
Chapter completed!