"This year is a crucial and successful year for Jiafeng Group. In the home appliance market, we have stabilized our market share at around 30% and achieved total sales of 10 million televisions. We are the first domestic manufacturer to reach 10 million units in sales. The VCD market is also continuing to climb. According to research data, the domestic VCD market has a promising future."
"Last year, the demand for VCDs was five million units, and this year it has grown to eight million units. We still firmly control the VCD market, and this year we have sold a total of 3.97 million VCDs. As for pirate manufacturers and manufacturers that produce without patent authorization, we have taken strong action this year and filed lawsuits against 37 companies, winning all of them."
"As another pillar product of the company, the pager market is also booming. From the market demand of 12 million units last year, it has shown explosive growth this year. This year, the national demand for all types of pagers has reached 25 million, and the sales volume of Jiaxun pagers has reached 5.7 million units, accounting for 20% of the market."
"However, the unit price of the product has plummeted. From a high price of five or six thousand yuan the year before last, to three or four thousand yuan last year, and then to two thousand yuan or even one thousand yuan this year. The widespread promotion of landline phones and telephone booths brought development to pagers and also brought them the last prosperity."
"At the beginning of this year, we pioneered a new sales model, shifting from the original agents to trying the home appliance mall model. This year, we developed five Jiajia Home Appliance Malls, with a total area of 3,700 square meters. Progress in this area has been slow, and there are many competitors, among whom retailers such as Gome are very strong in the market. This year, we are in a loss-making state in this area."
"In terms of small home appliances, the market has been further released this year. Products such as electric fans, washing machines and refrigerators have seen market growth of more than 50%. However, our sales have declined. After careful analysis, we believe that these products lack brand power."
"There are brands that specialize in washing machines, such as Little Swan, Haier, and Meiling. For refrigerators, there are companies like Hisense, Panasonic, Siemens, Konka, and even Skyworth. The refrigerator market is still a battleground between domestic and foreign brands. We lack independent brands and we also lack marketing expertise."
"The group also underwent internal reforms this year, allowing the group headquarters to better control its subsidiaries and improving relevant systems for personnel transfers..."
For more than an hour, Wei Yandan stood on the stage and spoke eloquently. If Jiafeng were a company mainly engaged in home appliances and the industrial chain, then this year's annual report would be particularly good, as its main products occupy a very large proportion of the market.
The product quality is also renowned nationwide. As a brand, its main products are far superior to those of its competitors in terms of quality, after-sales service, and technology. In particular, Jiafeng is the first company in the country to offer door-to-door delivery, seven-day return policy, fifteen-day exchange policy, and two-year warranty.
It was already 11:40 a.m., and Wei Yandan's work report was nearing its end. She looked at the last page in her hand, took a deep breath, and said, "Jiafeng Group's total sales for the year exceeded 10 billion RMB. The total sales for this year were 12.756 billion RMB, with a net profit of 2.438 billion RMB. The total expenditure for the year was 1.713 billion USD, resulting in an overall loss."
1.7 billion!!!
Or in US dollars?
Many people attending this kind of year-end meeting for the first time gasped and whispered to the people next to them, "It's over. We earn RMB but spend USD. Is this company going to go bankrupt?"
"What's the panic? It's not like you've already spent the money."
"Then whose money will be spent?"
"See that white guy up ahead? He's the sucker."
Many people present secretly calculated the exchange rate in their minds. In this year alone, Jiafeng Group spent more than 13 billion RMB. How much money is that!
This amount of money is astronomical for an individual, but when you calculate it carefully, you can see where all that money went – how many factories Jiafeng built in a year, how many salaries were paid, how many advanced production lines were built, how many engineers he recruited globally, and how many laboratories and R&D centers he established.
John's face was not good. He invested two billion US dollars last year. At first, the budget for the R&D company was five hundred million, which was later increased to one billion. But how did the other two hundred million go?
As Wei Yandan stepped down from the stage, the morning's report meeting had ended. John stood up and said to Wei Yandan, "Give me a copy of the financial report, I want to take a look."
Wei Yandan looked at Lu Feng, who waved to her and said to Feng Zhiyao and the others, "Let's eat first, we'll continue this afternoon."
Liu Cheng walked out without saying a word. Over the past year, many people within the group had attacked him, with many believing that the R&D company was burning through too much money, especially some 'meaningless' spending, which they considered a waste of everyone's money.
Various sarcastic remarks emerged from the scene. The crowd walked side by side in small groups, whispering among themselves. Yang Fuqun was accompanied by several senior executives from other departments. One of them asked in a low voice, "Why is the R&D company burning through so much money? Even companies like Konka, Skyworth, and Changhong don't spend this much."
"Who knows? Billions of dollars, piled up like that, could crush a person." Yang Fuqun sneered. "Foreign engineers who set up R&D centers around the world are living the high life. I heard they poached a small team from Toshiba to build an R&D center for them in Tokyo. The person in charge's salary is as high as 50,000 US dollars a month. And that's just the tip of the iceberg. The R&D center they're working with on in cooperation with Nokia is burning through money at a rate comparable to bribing the King of Hell."
This chapter is not finished yet. Please click on the next page to continue reading the exciting content!
Continue read on readnovelmtl.com
