"Gentlemen, I have learned about the situation you have reported through other channels."
"The group's current predicament is mainly concentrated in the overseas market, especially in Longteng Electronics. I looked at the financial statements and found that the sales of DVDs overseas alone reached US$2.3 billion last year. Not only that, but there are also refrigerators, washing machines, etc."
“That’s right, Mr. An. If we include these products, in fact, in just one year last year, Longteng Electronics’ sales in overseas markets reached nearly $4 billion.”
At first glance, this number may not seem high, but just think about it: in 1994, China's total exports amounted to 4 billion US dollars, which is a remarkable figure.
The current achievements are not only due to Chen Dong's strategic planning, but also inseparable from the efforts of everyone present.
Annie nodded, confirming Wang An's statement, and continued, "Manager Wang, what you mentioned is only the total export volume of Longteng Electronics, but I just checked the actual profit, and it's only a gross profit of less than one hundred million US dollars."
"In other words, after deducting costs and taxes, the actual profit may only be tens of millions of dollars."
“President An, our product profit margin is indeed a bit low, but the boss once said that we shouldn’t focus on the product profit in the early stages. The important thing is to seize market share first, and we have done a good job in this regard. Our market share among similar products has reached 40%.” Lin Zhiyuan quickly added.
He had met Annie a few times and knew she was someone close to Chen Dong.
That's why he was afraid that Annie would say to Chen Dong that they hadn't handled things well, especially now that no one could contact Chen Dong, so they had to be even more careful.
Upon hearing this, Annie chuckled and said, "What the boss said makes sense, but you need to realize one thing: what is the purpose of seizing the market? It's for profit! If we don't make money for a long time, it means that we have made a mistake in our positioning."
"As far as I know, the DVDs produced by Longteng Electronics have intellectual property rights and should be more competitive in the market than other similar products. However, what I see is the opposite. In other words, high-end models have always been monopolized by foreign companies, and we only produce some low-end products."
this......
The group looked at each other in bewilderment.
They actually knew what Annie was talking about, but saying it so bluntly still made everyone's faces turn ugly.
A product manager spoke up: "President An, you can't say that. Although our profit margin is not high, as one of the few foreign exchange earning companies in Shenzhen, we have still made a huge contribution to the country's foreign exchange reserves."
"Yes, Mr. An, right now is a time when the country is in dire need of foreign exchange. Government departments have repeatedly emphasized the importance of earning foreign exchange. You may not know this, but other companies, like textile companies, have even lower profit margins than we do now."
Annie was so angry at these words that she laughed. She slammed her hand on the table with a "bang" and shouted.
“I want you to understand one thing: we are a private enterprise. What we need to do is generate enough profit for the company, and nothing else.”
"Besides, we make high-tech electronic products, which are completely different from textiles produced using cheap labor. If you don't even understand this, I suggest you leave Longteng."
Everyone was stunned by these words.
Wang An's face and forehead were covered in fine beads of sweat; these words were essentially spoken to him.
It's important to understand that Chen Dong entrusted Longteng Electronics to him and Lin Zhiyuan to manage together. It was obviously impossible for Lin Zhiyuan to leave Longteng Electronics, since Lin Zhiyuan was the husband of Chen Dong's older sister.
Wang An, on the other hand, became the most awkward character.
Lin Zhiyuan lit a cigarette, took a few deep drags, and said, "President An, we shouldn't be thinking about external factors right now. First, we need to solve the problems we're currently facing."
"The US and Europe have issued an ultimatum to our company: if we do not pay the fines within the stipulated time, we will completely lose these two important markets."
Hearing Lin Zhiyuan's words, Wang An finally breathed a sigh of relief. Although Annie was young, she had been by Chen Dong's side for a long time and was in charge of several high-tech industries. In terms of presence, she was not much less than those who had been in high positions for a long time.
"Yes, Mr. An, shouldn't we discuss a perfect solution? We finally managed to secure 40% of the market share, and it would be a real pity to lose it just like that. But if we pay this fine, not only will we be giving away several years' worth of profits, but Longteng Electronics will also suffer a severe blow."
Anne nodded, not dwelling on the previous issue, and said, "There are solutions. Since our products don't generate enough profit overseas and we're constantly being manipulated by the other party, it would be better to cut our losses and cancel our entry into overseas markets altogether."
Are you crazy?
As soon as Anne finished speaking, everyone started arguing.
"Mr. An, is the boss aware of what you're saying?"
"President An, please reconsider. The overseas market is a key focus for our electronics factory's development. Many companies want to go global but can't, yet you want to withdraw from the overseas market. Do you know how much effort everyone put in to secure this opportunity?"
"President An..."
Annie was also at a loss. To be honest, she didn't agree with Chen Dong's decision at first. You see, no matter which region's market you open up, not to mention the manpower and resources, the money spent is an astronomical figure.
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