Several executives clicked their tongues in surprise upon hearing this, not expecting that the company's top management had spent all the money on such things. Another person hurriedly asked, "It can't be developing televisions or anything, right? What is it then?"
"They call it semiconductors, but last year they established seven large-scale R&D centers, both domestically and internationally, not even counting the small teams they poached from foreign companies. Tell me, how did they spend all that money?" Yang Fuqun said unhappily.
"Fifty thousand US dollars? That's... four hundred thousand a month?" The people next to him turned green with envy when they heard this number. They worked themselves to the bone and earned a hundred thousand a year, which would be enough to live a luxurious life in China. But compared to this person, it was equivalent to ten days' wages for him.
"What are semiconductors?" another asked curiously. "They're so expensive!"
"To put it simply, it's about integrating and miniaturizing the diodes and various circuits in a TV set, making them many times thinner than a human hair. Developing these things is definitely expensive. As for whether that money is actually spent or just flows out in another way, who knows? After all, I haven't personally seen the foreign R&D centers and personnel, so I can't talk to them or ask them how they work so hard for a monthly salary of hundreds of thousands!" Yang Fuqun finished speaking sarcastically, snorted, and strode forward.
The remaining few looked at each other, bewildered. They felt they had already reached the top of the company, after all, they were second only to Wei Yandan and Zhu Lidong. Now it seemed they were still a long way from understanding the money-making methods of the top figures.
Yang Fuqun's statement spread rapidly during lunchtime. Everyone was shocked by the magnitude of the losses, and this statement made them think about other possibilities.
Inside the private room, Lu Feng made some polite remarks to everyone. As the food was served, Lu Feng picked up a half-glass of red wine and said, "Everyone has indeed worked hard this year. Although the company is still operating at a loss, we have made great progress, especially in research and development. Last year, we were completely ignorant about integrated circuits. This year, we have not only established a production line in the Tianjin plant, but we have also obtained many patents in terms of technology."
"This is a huge step. I believe that in the near future, we will be able to produce all our own chips and storage. I'd like to toast President Liu first. Thank you for your hard work!"
Lu Feng stood up and clinked glasses with Liu Cheng. The two then drank their glasses in one gulp, and then had another drink with the others. The atmosphere at the dinner table began to liven up, and everyone except John seemed to be having a good time.
“The R&D company’s expenditures this year are indeed too high, and we cannot afford such expenditures. However, the previous fixed expenses have already been invested. As long as we maintain this situation, next year’s budget will not be too high. Our mobile phone will be launched next year. If we can produce the whole thing ourselves, the cost will be greatly reduced, and the profit will be very considerable,” Lu Feng said to everyone.
“Mr. Lu’s proposal is excellent. The prospects for mobile phones are very good globally. However, you said that Jiafeng’s mobile phones will be available next year.” John looked at Lu Feng and asked, “How can you guarantee that? If the project cannot be implemented, then the previous investment will be wasted.”
"Production can begin next year!"
"How do you manufacture it? Where do you get the core 2G motherboard?" John asked, staring at Lu Feng.
Liu Cheng and the others froze upon hearing this, sensing that something was amiss. Lu Feng looked at him and smiled, putting down his wine glass as he said, "This matter hasn't been resolved yet, but I can guarantee that it will be resolved by the New Year."
"After the New Year? Where did you come from?" John looked at Lu Feng with interest and said, "As the major shareholder of the company, I should have the right to know about any of the company's actions. Can you tell me where the original 1.5 billion US dollars for the R&D company went, after deducting 100 million US dollars spent on corporate publicity, daily expenses, building construction and other projects?"
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