Chapter 570 Martyrs
The data for each segment was clear and concise, and many people in the audience nodded slightly, gaining a more intuitive understanding of Tenda's business structure.
“Next, let’s break down the cost structure (in US dollars),” Chen An emphasized.
"Human resources costs: total 2.954 billion (14%)"
Of these, the salaries of food delivery riders amounted to 1.055 billion yuan, accounting for 5% of total revenue; while the labor costs for non-R&D positions amounted to 1.899 billion yuan, accounting for 9%.
Research and development costs: Total 3.798 billion (18%)!
He deliberately emphasized this figure: "The high salaries of R&D personnel amounted to 2.216 billion yuan, accounting for 10.5%."
The remaining R&D-related expenses amounted to 1.582 billion yuan, accounting for 7.5%.
Speaking of R&D investment, Chen An's face showed admiration, "It is thanks to the chairman's business philosophy of connecting the future and being technology-driven."
Significant investment in research and development has yielded fruitful results: in the first half of the year, the group obtained a total of 1,258 patents globally!
This number caused a small stir in the audience.
"Let's look at the details!" Chen An explained in detail.
"Patents in areas such as WeChat (AI recommendation algorithm, voice processing), cloud computing (distributed architecture, edge computing), and blockchain (smart contracts, data encryption) account for 40%, totaling approximately 514 items!"
The patents account for 25% of the total, totaling approximately 320 items, covering game platforms (global illumination, virtual geometry, cross-platform synchronization) and digital entertainment (special effects rendering, horizontal and vertical screen stabilization).
AI (natural language processing, computer vision) and mobile payment (security encryption, risk control models) account for 15% of patents, totaling approximately 192 items.
According to authoritative statistics, Tenda Technology has jumped to ninth place in the global ranking of technology companies by the number of patents in the first half of the year, a significant leap from its previous 22nd place!
"Wow!" Thunderous applause erupted from the audience and lasted for a long time.
This is not just a number, but a symbol of Tenda's core strength and the culmination of the hard work of every R&D staff member.
On average, nearly seven patents are born from Tengda Labs every day, which is enough to make every manager present feel proud.
Song Ci smiled slightly. From the very first day the company was founded, he had been obsessed with investing in technology.
Every year, they invest huge sums of money in research and development, with an intensity comparable to that of Huawei, a company that relies on technology.
After the applause subsided, Chen An continued in his usual efficient style, speaking eloquently:
Business subsidies: RMB 1.688 billion (8%), local life service subsidies: RMB 1.266 billion, mobile payment market promotion subsidies: RMB 422 million.
Game channel revenue sharing: 2.11 billion (10%), which includes revenue sharing from joint operations of games and costs of cooperation with overseas channels.
Data center operations and maintenance: 633 million (3%), global server hosting, power consumption, and security maintenance.
Administrative and office expenses: 528 million (2.5%), including office space, logistical support and travel and entertainment.
Marketing expenses: 422 million (2%), used for public relations and global brand promotion.
Taxes and fees: RMB 1.899 billion (9%), mainly corporate income tax and cross-border business taxes and fees.
Asset depreciation: 1.055 billion (5%), mainly from normal depreciation of servers, data centers, and property equipment.
This series of detailed data clearly outlines the internal operating costs of Tenda, this massive business machine.
Song Ci's gaze was fixed on the data related to "local life," and she leaned slightly towards Zhang Yong, whispering:
"Local services contributed 6% of revenue, but rider wages alone accounted for 5%. With subsidies included, the proportion of total costs exceeded 11%."
At this rate of cash burn in food delivery and ride-hailing services, it will continue to erode the group's profits. Brother Yong, the separate financing process must be accelerated.
Zhang Yong's gaze remained fixed on the data on the screen as he nodded, "We're pushing it forward with all our might, and several top venture capital firms have expressed strong interest."
At this point, the report came to its final stage, which was also the part that best demonstrated a company's confidence: its cash flow and asset status.
Chen An's deep and powerful voice echoed in the hall:
"As of June 30, the Group's total cash and cash equivalents amounted to US$15.292 billion!"
The numbers on the screen stood out prominently.
Cash and demand deposits: RMB 8.44 billion;
Money market funds: 4.22 billion yuan, representing highly liquid and low-risk investments;
Short-term treasury bonds: 2.632 billion yuan, which are treasury bonds with a maturity of 3 to 6 months, balancing yield and liquidity;
In the first half of the year, the Group's net cash flow from operating activities was 9.706 billion yuan!
Upon hearing about this astronomical sum of cash reserves, Song Ci shook her head almost imperceptibly, then turned to COO Wang Jing and whispered:
"15.2 billion... It sounds like a lot, but looking at the global picture, Apple has 150 billion, Microsoft has over 75 billion, and Google has 50 billion in cash reserves."
With its limited resources, Tenda is only at a mid-level among global tech giants.
Having sufficient cash reserves is essential for resilience during economic downturns. It's a long and arduous journey!
Upon hearing this, a hint of helplessness flashed across Wang Jing's face: "Chairman Song, the company has been established for less than ten years."
This 15.2 billion yuan is almost entirely without dividends; it's a family fortune painstakingly accumulated bit by bit, and it takes time to build up.
As you know, in the first half of the year alone, over $1.8 billion was spent on global data center expansion and construction. That money just kept flowing...like water.
Song Ci nodded silently. He understood, but he still felt a sense of urgency.
The final part of the financial report is still ongoing:
"The group's total liabilities are US$5.705 billion, with a debt-to-equity ratio of 12%, indicating a very healthy financial condition. The liabilities consist of:"
Accounts payable: 1.688 billion yuan, consisting of channel revenue sharing payments and supplier payments;
Pre-payments: 1.266 billion yuan, for game recharge pre-sale funds and membership subscription fees;
Other payables: RMB 641 million, accrued for taxes payable and employee compensation.
In addition, the group's long-term equity investments and industry funds have yielded returns, currently valued at US$11.4 billion.
After speaking, Chen An calmly swept his gaze across the entire room and slowly concluded, "This concludes the report on Tengda Technology's main operating indicators for the first half of 2013."
After he finished speaking, he bowed slightly, and the audience responded with enthusiastic applause once again.
At the same time, Huiwen Asset Management.
Sunlight streams through the floor-to-ceiling windows, casting a halo of light over the minimalist office space.
Liu Shishi, dressed in a casual suit, led Lin Hao through the open office area.
When the employees saw their boss along the way, they all greeted her respectfully as "General Manager Liu," and their eyes were filled with curiosity when they saw Lin Hao standing next to her.
"Ah Hao, is my little company even worthy of your attention, President Lin?" Liu Shishi turned her head, smiling charmingly, her words laced with familiar teasing.
Lin Hao slowed his pace, glancing at the well-organized workstations, the fully equipped facilities, and the complex K-line charts flashing on the computer screen, and nodded slightly.
"Shishi, your company may be small, but it has all the essential parts. Huiwen has a high starting point and a capable team. Given time, it may very well be able to compete with established investment institutions."
His assessment was quite fair.
Although Huiwen Asset Management is far smaller than giants like Shanhai Capital, it is full of vigor and is on a steady and fast track.
"You're so good with words." Liu Shishi chuckled, quite pleased with the compliment. "Come on, let's talk in my office."
The office is spacious and elegant, and the assistant serves tea to guests.
As the two sipped their pre-Qingming Longjing tea, the conversation turned to Yaoke Media.
Just as they were getting to the crucial point, Lin Hao felt his phone vibrate in his pocket. He apologized and quickly took out his phone.
"Shishi, I need to take this call. It's my father." He gestured to Liu Shishi.
Liu Shishi gracefully gestured for him to proceed.
Lin Hao swiped to answer the phone: "Dad!"
A steady voice came through the receiver: "Are you in the capital?"
"Yes, I'm here," Lin Hao replied.
"There's an old gentleman who wants to meet Song Ci. Could you help introduce him?" Lin's father got straight to the point.
Lin Hao was slightly taken aback, and subconsciously asked, "Who is the other party?"
"It's Mr. Zhang Rujing, the founder of Donghai Huaxin International," Lin's father said, his voice trailing off with a barely perceptible sigh.
"Could you help introduce him? He has something very important to discuss with Song Ci in person."
"Zhang Rujing?" Lin Hao quickly searched his memory for the name, somewhat surprised. "How did he manage to get through to you with his connections?"
“Jinling has been busy with TSMC’s factory construction in Jiangbei recently, and I was in charge of the negotiations,” Mr. Lin explained. “I don’t know why Mr. Zhang came to us to inquire about the situation.”
He paused for a moment, as if organizing his thoughts, and his tone became more emotional, "I don't know where he got the information that you are a director of Tengda Group."
He asked if I could help act as a go-between, with you acting as an intermediary, to arrange a meeting between him and Song Ci as soon as possible.
Lin Hao hesitated for a moment, then didn't immediately give a guarantee: "Introducing you is no problem."
However, Tengda Group is currently holding a strategic meeting, and Song Ci is very busy. I cannot guarantee whether he will be willing to meet with Mr. Zhang.
"Well, let's try our best to bring them together." Lin's father's voice carried a hint of solemnity. "Mr. Zhang... is a man with a strong sense of national responsibility. If we can help, we will."
Lin Hao felt a chill run down his spine. He sensed something unusual in his father's words—a complex emotion that mixed respect and regret.
He didn't ask any more questions and agreed, "Okay."
"I'll send you Mr. Zhang's phone number."
After the call ended, Lin Hao put down his phone, a thoughtful look still lingering on his face.
"Uncle, is there something you need from Song Ci?" Liu Shishi put down her teacup and asked with concern.
She had just vaguely heard Lin's father mention her husband's name.
Lin Hao nodded and briefly explained the situation: "He asked me to make sure to introduce Mr. Zhang Rujing of Huaxin International to Boss Song."
"Zhang Rujing?"
Liu Shishi was unfamiliar with the name, but the combination of "Huaxin International" and "founder" was enough to attract her attention.
She picked up her phone, her slender fingers swiping rapidly across the screen to begin searching.
As lines of text and news reports came into view, Liu Shishi's expression gradually changed from curiosity to solemnity.
The screen records the ups and downs of this old man's life:
He went to the United States to study in his early years and became a top expert in the semiconductor industry;
He resolutely gave up his lucrative job and returned to China, almost single-handedly shouldering the banner of China's chip manufacturing and founding Huaxin International.
After a fierce legal battle with international giants, they were ultimately forced to leave the "child" they had raised from scratch...
"This Mr. Zhang has truly had a life full of hardships..." Liu Shishi put down her phone, sighed softly, and her eyes revealed admiration.
“He is indeed a respectable person. He must have something extremely important to discuss with Song Ci. I will arrange this.”
Lin Hao was overjoyed upon hearing this.
With Liu Shishi, the woman who shared his love with Song Dynasty poetry, personally handling this matter, the success rate was undoubtedly 100%.
No matter how close he was to Song Ci, he was ultimately her subordinate, and he was always very careful to maintain proper boundaries in their interactions.
"Thank you, Senior Sister!" Lin Hao said sincerely, then picked up his phone and dialed the number his father had sent him.
The call was quickly answered, and a slightly aged and tired voice came through: "Hello."
"Mr. Zhang? Hello! I'm Lin Hao. Yes, yes, Mayor Lin is my father." Lin Hao's tone was respectful. "Are you in the capital right now? Are you hoping to see Mr. Song Ci as soon as possible?"
As Lin Hao spoke, his gaze fell upon Liu Shishi. Seeing her nod affirmatively, he felt reassured and replied into the microphone:
"Alright, how about this? Song Ci is having a meeting at Jiuhua Mountain Villa these days. Let's meet there this afternoon. Is that alright?...Okay, it's settled then."
After hanging up the phone, Lin Hao couldn't help but sigh, "This Mr. Zhang sounds very urgent, he's really in a hurry."
Liu Shishi said softly, "For an old man who has experienced so much to be so anxious, it must really be something very important. I'll go to Jiuhua Mountain Villa with you this afternoon."
Meanwhile, inside a hotel room.
Zhang Rujing, founder of Huaxin International, stood by the window, gazing at the magnificent skyline of Beiping City outside.
I slowly put my phone down, my tense shoulders relaxed a little, and I let out a soft breath.
Behind him, an assistant who had followed him for many years looked at him with pity: "Mr. Zhang, you have been away from Huaxin International for so many years, why... why do you still have to work so hard for it?"
Zhang Rujing turned around, his gray hair standing out sharply in the sunlight, but his eyes were unusually firm, as if a flame was burning deep in his pupils:
"Huaxin is my child, the culmination of my life's work. I cannot stand by and watch it decline and sink into oblivion."
His voice wasn't loud, but it carried an undeniable power.
Although he had long since left the power center of Huaxin International, he never stopped thinking about the company into which he had poured all his ideals and passion.
A few days ago, Huaxin International released its first-half financial report, and the data was worrying:
The gross profit margin dropped sharply by 6.5 percentage points year-on-year to only 21%, barely surviving on government subsidies.
What's even more worrying is that R&D investment is severely insufficient, less than one-tenth of its old rival TSMC.
The 28-nanometer process, which was originally planned to be mass-produced this year, has become a distant prospect with a bleak outlook.
And even worse news followed.
He learned through his own channels that TSMC had decided to officially build a factory in Nanjing, and he personally went to Nanjing to verify this news.
This is like adding insult to injury for Huaxin International, which is already struggling with advanced manufacturing processes; it is a potentially fatal blow.
Once TSMC establishes a foothold in mainland China with its strong technological advantages and economies of scale, Huaxin International's already eroded market share may be completely swallowed up.
This shining pearl of the mainland semiconductor industry, which he once placed high hopes on, is very likely to lose its luster and never recover.
"Then... Mr. Song Ci, can he really save Huaxin International?" The assistant's voice was filled with uncertainty and worry.
"I don't know." Zhang Rujing slowly shook his head, his face showing a calm that came with the experience of life's trials.
"But there is always a glimmer of hope. As long as there is a glimmer of hope, we must give it a try."
Previously, when he met with Huawei HiSilicon, Huawei's CEO Ren Zhengfei strongly recommended this young Asian richest man during their conversation.
Ren Zhengfei frankly stated that if Huaxin International were to be saved from its predicament, looking across the country, Song Ci, with its vast capital, top-tier internet ecosystem, and strategic vision, would be the best, and perhaps only, candidate.
Therefore, he made a special effort to delve into Song Dynasty poetry. After some investigation, he felt that what Mr. Ren said was true.
This young man, known for his vision and insight, built Tenda Technology from scratch.
Whether it's the enormous funds that world-class billionaires can provide or the high-tech expertise of the leaders of internet technology giants, both perfectly match Huaxin International's current needs.
More importantly, the core industries of Song Ci, whether it is Tengda Technology or Devon Manufacturing, have a huge demand for high-end chips, and there is a huge potential for strategic synergy with Huaxin International.
Moreover, unlike the current situation where Huaxin International has a complex equity structure and various forces are deeply entrenched, this is different.
As an independent and powerful technology leader, Song Ci may be the best candidate to balance all parties, break the deadlock, and truly lead Huaxin International out of its predicament.
He turned around again, looking out the window at the land he loved so deeply, his expression somewhat dreamy.
In a low, almost soliloquy voice, he said softly:
"I am destined to be a martyr for China's semiconductor industry... but the spark of Huaxin International must never be extinguished."
I've helped it onto its horse and given it a ride. Now, I need to find it a powerful guardian to protect it on its journey!
His words dissipated into the air, carrying a touch of tragic grandeur, and filled with an unwavering resolve.
(Second update, slightly later)
(End of this chapter)
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