Chapter 581: Annual output value of 12 billion US dollars! I believe you did it, wait for the war to begin!
In mid-March in Xucheng, the weather is gradually getting warmer. The early cherry blossoms downstairs in the Science and Technology Park are about to bloom, and the golden osmanthus has sprouted tender buds, swaying gracefully in the spring breeze.
After Pinbei, Orange Payment and Jinri Technology moved to Luzhou, Tiangong Technology and Orange Communications also started their relocation work, packing computers and office supplies into boxes, and finally handed them over to colleagues from "Kuai Di Moving" to transport them to Luzhou.
The once prosperous and bustling Zhuxianzhuang Industrial Zone suddenly became even more deserted.
Only the R&D laboratories of Orange Technology and Orange Automobile remain.
Before leaving, Ye Qiuping insisted on finding Chen Yansen to report on her work.
Master Ye’s thoughts are obvious.
This work report lasted for two hours, and Chen Yansen listened very carefully and attentively.
After Ye Qiuping left, Chen Yansen leaned back in his boss chair and took a nap, thinking about his next plan in his mind.
This Friday, March 21, Tiangong Technology will hold a new product launch conference to launch Tiangong B100 and Tiangong C100.
On the 1st of next month, Orange Technology will also hold a spring new product launch conference, at which new models of Qingcheng, Orange and Yaocheng systems will be launched. Corresponding new products in categories such as Alexa smart speakers, Orange Pad, Orange Magicbook, mobile power supplies, Bluetooth headsets, etc. will also be launched.
In Shenzhen, DeepBlue Technology's No. 3 factory has been put into production. Together with the No. 1 and No. 2 factories, the annual production capacity is as high as 30 gigawatt-hours.
Based on the current supply price of Deep Blue batteries, the annual output value is 12 billion US dollars.
BYD and CATL, as OEM factories of DeepBlue Technology, have also achieved an annual production capacity of 25 GWh after expanding their production lines.
You should know that last year the global production of lithium batteries was only 37 gigawatt-hours.
In other words, driven by DeepBlue Technology, China's share of the battery industry has jumped to first place in the world.
When traditional car manufacturers develop new energy vehicle models, the first thing they have to do is go to Shenzhen and win the supply contract from DeepBlue Technology before they dare to proceed to the next step.
The domestic electric vehicle industry has also entered a period of comprehensive upgrading and replacement, showing a trend towards high-end, intelligent and long-range driving.
There is a polarization in prices. The original lithium batteries have been impacted by Deep Blue Technology and the prices are getting cheaper and cheaper, resulting in Aima, Yadi and Tailing launching a lot of electric bicycles priced below 1,000 yuan.
They have very similar characteristics: large battery size, short battery life, weak power performance, slow charging, and simple appearance design.
The starting price of electric bikes equipped with Deep Blue batteries is over 2,000 yuan, with the mainstream price range being between 3,000 yuan and 5,000 yuan, and the driving range can even reach 150 kilometers.
A single charge can last for three days.
In contrast, Orange Motors has been quiet since launching the Orange Q1 electric scooter, and appears to be very low-key.
Thanks to this model, Orange Auto's total sales in 2013 were 1.37 million vehicles, with revenue of 1.37 billion yuan and a net profit margin of 11.4%. It is a product with small profits but quick turnover.
Therefore, at the year-end performance review meeting, Chen Yansen gave Cheng Zilong the new year's task: to develop new car models and enter overseas markets.
We must enter the high-end market, but we cannot lose the overseas market.
After all, Senlian Capital has a deep foundation in the fields of fast charging and power battery technology.
You can't just sit there and not make any money, right?
"Knock knock knock!" There was a crisp knock on the door.
"Come in." Chen Yansen came back to his senses and responded lightly.
Guo Shenyi walked in with a foreigner in a suit and tie.
"Hello, Mr. Chen."
Maximilian behaved with great respect towards his new boss.
The reason is very simple. First, the other party gave him a 40% salary increase and an option bonus worth 2 million euros. Second, the name Chen Yansen is not only a household name in China, but also has a very strong influence in Europe and the United States. It is his honor and pride to work for the other party.
For example, Li Ka-shing's Cheung Kong Holdings has a large number of foreign employees.
In fact, whether they are white or black, as long as they are paid enough, these people will still be willing to risk their lives.
It’s just work, whoever gives more is the God of Wealth.
"Please sit down."
Chen Yansen raised his hand and gestured.
Guo Shenyi consciously left the room and closed the door.
Maximilian is 32 years old, French, and a graduate of Saclay Business School. He joined Rocket Internet nine years ago, followed Oliver and copied a bunch of projects.
The most notable achievements are: Panda Takeout and Lazada.
The former was acquired by Delivery Hero for US$150 million, and the latter was acquired by Pinbei for US$750 million.
In just six years, Maximilian led two successful projects, which shows his ability.
Of course, what Chen Yansen values is his deep insight into the European takeout market and mature resource network.
The online catering industry in Europe has always been known for its "fragmentation", "localization" and "high barriers".
Different countries have huge differences in food culture and consumption habits, and their logistics systems and regulatory policies are also different. Even the mainstream payment methods have obvious differences. If foreign companies want to gain a foothold in this market, they often have to pay extremely high trial and error costs.
But during his tenure at Panda Takeout, Maximilian quickly understood the operating rules and strategies of the local takeout market.
By accurately grasping users' dietary needs and building a differentiated delivery network, the brand has covered major cities in 12 European countries in just two years.
His rich practical experience has enabled him to fully understand the user pain points, competitor shortcomings, and supply chain shortcomings in different regions of Europe.
More importantly, Maximilian has accumulated a lot of resources during his years of operation.
From the communication channels of the central company to the cooperative relationships with small and medium-sized catering merchants and logistics service providers, as well as the resources of local European payment platforms and banking institutions, these are the stepping stones that Chen Yansen needs most to enter the European takeout market.
Thinking of this, Chen Yansen looked at Maximilian in front of him and chuckled, saying, "I know you've achieved a lot of impressive results in the European takeout market, but I don't want to copy and paste. I want to gain a say in the entire European takeout market."
What this means is that he recruited Maximilian in order to compete head-on with Delivery Hero, Takeaway, and Hungry House.
"Mr. Chen, we can see from Delivery Hero's continuous acquisition and merger of similar software that the competition among food delivery platforms in Europe is very fierce.
Frankly speaking, I believe that Yikuaipao's delivery route planning, intelligent dispatching, and capacity scheduling systems may be able to capture a certain share of the European market, but it will be very difficult to overturn Delivery Hero's dominance.
Maximilian thought for a moment and answered seriously.
He was afraid that Chen Yansen's expectations were too high, so he simply made it clear, laying out the risks and difficulties, and then added: "Since 2010, Delivery Hero has acquired some leading regional platforms through multiple acquisitions and mergers.
Today, they have a market share of over 35% in 26 European countries, especially in core markets like Germany, France, and the UK. Their customer loyalty is so high that many restaurant chains are only willing to work with them.”
At this point, Maximilian looked up at Chen Yansen with a look of candor in his eyes. "I'm not trying to dampen your enthusiasm, but I think you should understand the reality. With Kuaipao's current strength, it's no problem for them to capture a share of the European market, but it will take at least three to five years to shake Delivery Hero's dominance."
Chen Yansen leaned back and smiled softly.
Maximilian is worthy of being a professional manager trained by Oliver. Apart from anything else, his strategic vision alone is extremely rare.
In fact, he already knew the situation the other party was talking about.
"If Delivery Hero was a piece of soft bone that would break at the slightest touch, why would I spend so much money to recruit you?"
Chen Yansen asked back casually.
Without waiting for Maximilian's response, he continued, "You think it will take three to five years for Kuaipao to challenge Delivery Hero's market position. That's because you're looking at the issue from the perspective of 'competing head-on with them for resources and subsidies.'
But you know Delivery Hero, but you don’t know the true strength of Kuaipao.”
Before planning to enter the European food delivery market, he conducted a detailed investigation of platforms such as Delivery Hero, Takeaway, and Hungry House.
Delivery Hero relies on acquisitions to monopolize the market and spends money to lock in merchants, but it also has a lot of weaknesses.
For example, over-reliance on mergers and acquisitions has led to internal system chaos, and user data and distribution networks of different platforms are not interoperable.
Due to high marketing investment, profit margins have been severely compressed, and the net profit margin of European business was less than 2% last year.
The biggest moat of the food delivery industry is the scale effect!
The second is intelligent scheduling system, precise recommendation, dynamic pricing and subsidy strategy.
The huge order scale will generate massive amounts of data, and the data will in turn strengthen the scale moat after being processed by algorithms.
Data is the fuel and algorithms are the engine.
The larger the scale and the more data, the smarter the algorithm, the higher the efficiency, the lower the cost, and the better the experience, further consolidating the advantages of scale.
In this regard, Kuaipao has 6 billion takeout orders every year and has long formed a set of efficient algorithm models.
The last point is also crucial: the huge rider capacity network and ground promotion team are heavy asset barriers.
For Chen Yansen, what he fears least is the human resource cost expenditure.
While others earn 2%, he can only earn 1%.
After listening to Chen Yansen's description, Maximilian's worries disappeared instantly, his eyes lit up, and he had higher expectations for his new job.
In his opinion, if Sunlink Capital invests regardless of cost, Kuaipao Waimai may be able to defeat Delivery Hero.
Putting aside other things for now, DeepBlue Technology’s annual net profit alone can buy several Delivery Heroes.
Once the two sides reach a stalemate in the European market, the capital behind Delivery Hero will most likely become restless and force the two companies to merge.
Otherwise, no investor can accept the long-term inability to make profits.
Chen Yansen and Maximilian talked for more than an hour and roughly determined the expansion plan for the European market.
First stop, the UK.
Only after gaining a firm foothold will it expand to Germany, France and Finland.
After joining the company, Maximilian immediately began the preparatory work, including recruiting field sales staff, delivery riders, and operations staff.
Some delivery drivers who are about to be transferred to the European market were shocked when they learned that they had to learn English.
If I can learn English, why should I deliver food?
However, the basic salary, commission for dispatching orders, rewards for completing orders and tipping mechanism in the European market make them jealous.
Guaranteed monthly income of 30,000 yuan!
So, after get off work every day, these Kuaipao riders who could only say "hello" and "dog bye" went to the company's study classes and learned foreign languages like crazy, tempted by high income.
Of course, there are also deliverymen with good English skills, but they only account for a small proportion.
At three o'clock that afternoon, Mike Keller walked into Chen Yansen's office with a dark face.
"Boss, TSMC sent a notice saying they're cutting 20% of their orders due to insufficient 28nm process capacity."
Mike sat down and said truthfully.
Although he is a researcher, he has worked in AMD and Apple for many years and is knowledgeable. He immediately realized that there must be someone behind TSMC's move.
20%?
Chen Yansen knew in his heart that this was a test from Zhang Zhongmou.
Whether it is GlobalFoundries or UMC, as long as Tiangong Technology can solve the production capacity problem, TSMC will stop its production control behavior, otherwise it will intensify the situation.
"Starting from the second quarter, we will directly cut TSMC's foundry orders by 40%, and give 20% each to GlobalFoundries and UMC."
Chen Yansen made the decision immediately.
If Zhang Zhongmou wants to work as a dog for North American semiconductor companies, then he will help them.
Since you don’t want to make money, then cut another 20% of the orders.
When Liang Jinsong achieves mass production of chips using the 28nm process, that will be the day when Star Source Technology officially goes to war with TSMC.
"Okay, boss, I'll do it right away." Seeing Chen Yansen being so tough, Mike couldn't help but smile.
After Mike left, Chen Yansen took out his cell phone, dialed Ren Zhongfei's number and called him.
The other side.
After receiving the reply from Tiangong Technology, Chen Jiaxiang, general manager of TSMC Dahua District, frowned. Just as he was about to report to his boss, the phone on the desk rang again.
HiSilicon President He Boting!
He hesitated for a few seconds, then pressed the answer button.
Is HiSilicon also going to reduce orders?
What a coincidence!
Chen Jiaxiang immediately realized: This was Chinese chip design companies working together to exert pressure.
After all, in Ren Zhongfei's view, if TSMC dares to limit Tiangong Technology's production capacity today, it will dare to limit HiSilicon Semiconductor's production capacity tomorrow.
You can't just let others bully you, right?
Therefore, after receiving Chen Yansen's call, Ren Zhongfei readily agreed to the other party's request.
If we don’t stick together now, are we waiting to be humiliated by TSMC?
Even though GlobalFoundries and UMC's foundry fees and yield rates were lower than those of TSMC, Ren Zhongfei still informed He Boting and asked her to voluntarily reduce the order volume by 20%.
Chen Jiaxiang pondered it for a while, then simultaneously informed the chairman of the reactions from Tiangong and HiSilicon.
"Tiangong and Haisi are very resistant. Let's leave it at that for now."
Zhang Zhongmou thought for a moment and said lightly.
Paul Jacobs threatened him with Qualcomm's orders, so he had no choice but to do as he was told, because Qualcomm is the dominant player in the mobile processor industry.
But Tiangong, HiSilicon, GlobalFoundries and UMC are alternatives, so he can't strangle Chen Yansen and Ren Zhongfei.
Unless Paul Jacobs can convince the heads of GlobalFoundries and UMC to act in coordination, he does not want to offend Tiangong and HiSilicon to death.
At the same time.
After learning about the situation, Paul Jacobs immediately asked his assistant to contact Sanjay Jha, CEO of GlobalFoundries, and called Hong Jiacong, Chairman of UMC.
But to his surprise, even though he promised some technical and financial compensation, the two still chose to refuse.
Just when he was confused, Chen Yansen called.
"Paul, if you do this, Tiangong Technology will completely give up using Snapdragon processors."
Chen Yansen's cold voice came from the microphone.
"Mr. Chen, I didn't do it." Paul Jacob denied it flatly.
"I'm sure you did it, so get ready for the war!"
Chen Yansen snorted coldly.
“…” Paul Jacob was about to explain when Chen Yansen hung up the phone.
Start a war?
I just don’t believe that you can represent the position of all mobile phone manufacturers in China!
Paul threw his phone aside and muttered to himself sinisterly.
Qualcomm only needs to lower its supply price and increase its supply volume, and those Chinese mobile phone manufacturers will pounce on it like vicious dogs and lick the soles of its shoes affectionately.
Did Chen Yansen really think that Qualcomm's market share in China would decline if it left Senlian Capital?
(End of this chapter)
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