However, R&D investment and corporate profits are at odds. Investing 100 million in R&D will have little effect, but if that 100 million is poured into the market to compete with other companies, the effect will be very obvious.
The problem with private enterprises today is not a lack of research and development, but rather a complete lack of research and development altogether.
The next morning at nine o'clock, Lu Feng drove to the market. There were seventeen or eighteen people sitting in a small meeting room. The average age of these people was over forty, and they were all heads of state-owned enterprises.
After exchanging pleasantries for a while, Lu Feng and the others sat down. As the only chairman of a private enterprise among so many companies present, this alone was enough to demonstrate the significance of Jiafeng Electronics.
A few minutes later, the door opened and a man in his fifties walked in. He was quite tall, slightly overweight, and had a kind face, but his eyes gleamed with a sharp light. Vice Mayor Liu and his entourage followed behind him, and the people present stood up and applauded to welcome him.
Li Zhengde walked to his seat and said to everyone, "Please sit down. This gathering has brought together most of the outstanding entrepreneurs in our city, so it's a joyous occasion. I've called you all here today to convey a message: industrial upgrading has entered a critical phase, and now is a time that requires hard work and even more willpower to drive it forward."
"Among private enterprises, outstanding ones like Jiafeng Electronics have emerged, investing a lot of money and effort in continuous research and development, which is very good. To achieve sustainable development, we need to lead the times with innovation and engage in a competitive race to catch up with each other in the technology field."
"Furthermore, we need to foster a culture among entrepreneurs that continues to drive industrial development, create jobs, and generate new industries. Take VCDs as an example; this single product brought Jiafeng Electronics very considerable revenue last year, which is the power of innovation."
The theme of this meeting was to encourage everyone to continue to delve deeper into their research, and at the same time, to hope that everyone could take the lead. They probably also know that relying on private enterprises is simply unreliable now.
Small businesses make some money and go home to build houses and buy cars, while the bosses spend their days in karaoke bars or nightclubs in a drunken stupor. Large businesses, on the other hand, spend their money on crushing their competitors.
After all, not many people can consistently bring in money from Hong Kong to subsidize the company like Lu Feng.
The symposium lasted for more than an hour, with 18 companies participating. A total of 1 billion yuan in subsidies was distributed, and Jiafeng Electronics received 25 million yuan.
At noon, everyone gathered in the cafeteria to chat. Lu Feng seemed a bit out of place. First of all, there was a big age gap between him and the group of people. Secondly, they were all from state-owned enterprises, while he was from a private company, so they couldn't really get along.
The atmosphere was quite pleasant as people toasted each other at noon. Many people went to toast Li Zhengde, and Lu Feng picked up his glass and went over.
"Hello, Secretary Li!" Lu Feng said politely, holding up his wine glass.
"Lu Feng, you've done a great job. In terms of R&D, you're definitely a star among private enterprises in our city. I heard you're going to get into communications this year?" Li Zhengde asked.
"This year we acquired a laboratory overseas, and we will be making significant investments in communication technology. We have made breakthroughs in VCDs, televisions, and home appliances this year, especially in DVD technology, which is already in the testing phase and will be able to record more content," Lu Feng explained.
"Very good. Heroes emerge from among the young. Young people are full of energy." Li Zhengde raised his glass and said, "I sincerely wish you all great success in the areas where we are lacking. If you have any difficulties, just tell us, and we will definitely help you solve them."
Lu Feng grinned. He had been waiting all morning, and he was finally getting this opportunity to talk.
“Since you’ve said it, we are indeed facing difficulties recently,” Lu Feng said in a deep voice.
Li Zhengde was about to drink when he realized Lu Feng was actually in trouble. He stopped the glass from going to his lips and said, "Tell me what's wrong."
“Under the leadership’s guidance, we’ve developed incredibly fast. It’s truly been a meteoric rise. This year, Wepuda TVs have sold like hotcakes, home appliances have sold like hotcakes, and VCDs have been a huge hit. Starting this year, we’re going to start exporting overseas, and with the added production of pagers, two factories aren’t enough. We’d like to expand by adding another factory.” Lu Feng said, looking at him.
"That's great! We need to get it done as soon as possible. It can also create more jobs for our local area," Li Zhengde said happily.
“That’s right. Mr. Lu, you can talk to me about this.” Vice Mayor Liu said.
"I...I want to go to Tianjin!"
After Lu Feng finished speaking, the atmosphere seemed a bit awkward.
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