"Honey, it seems like we made a bit too much this year."
On the evening of the end of September, Song Yanxi began to take inventory of the family's assets.
Not to mention their current annual net profit of over 10 billion, the rise in overseas stocks alone has already made them a fortune.
Especially Nvidia has entered a skyrocketing mode and it can't be stopped at all.
This made Chen Pingsheng, who originally planned to cash out slowly, want to wait another one or two years.
Anyway, he is not short of money now.
"This is indeed somewhat unexpected, but it also demonstrates the importance of the AI industry. Both the capital market and the world are very optimistic about it."
"Hubby, weren't you thinking about making an AI phone before? Maybe next year our family will be able to buy a big mobile phone factory."
“I do have this idea.”
It is already very difficult for new players to enter the mobile phone market. Without core technology, it is almost certain that they will fail.
Just look at Mrs. Dong who used to make mobile phones, as well as 360 and Alibaba.
Each of these people was a big shot in the business world, but they all ended up disappointed.
The main reasons why Chen Pingsheng wanted to do this were two: one was that Tengfei AI had invested over 80 billion yuan in it this year.
In the past seven years, he has invested a total of 150 billion yuan, and in the past seven years, he has also invested tens of billions of yuan in solid-state batteries.
No other domestic manufacturer can match our core technologies in these two areas.
In addition, there are actually only a few core technologies for mobile phones, and the Android system and the Apple system still dominate the two major camps in the global mobile phone market.
In addition, there are Qualcomm chips and Samsung screens.
These are the core technologies that make up a smartphone. The assembly of the remaining components, including debugging, depends on the company's own management capabilities.
There is no doubt that Chen Pingsheng's advantages in large industrial factories are still very obvious.
In addition, the future core technology of the mobile phone sector is AI, and he obviously has a greater advantage in this area.
In addition, there are Tengying Entertainment, Tengyou Media, etc. under his control.
It is entirely possible to establish a global mobile phone brand in the next two to three years.
He did what he said and regarded this matter as the top priority of the group.
On October 1st, National Day, Chen Pingsheng took his wife Song Yanxi, as well as his two children, the eldest and second, to visit a major domestic mobile phone manufacturer.
Such as Xiaomi, OPPO, Huawei, etc.
In addition to visiting, he will also seek advice from people one by one and consult these senior people in the mobile phone industry.
According to his idea, he originally planned to directly acquire one of the top five mobile phone brands in the country.
To this end, he also offered a full acquisition price of 150 billion to the Blue and Green Factories.
He makes mobile phones entirely based on the AI technology he currently has, including solid-state batteries.
Possessing these two technologies is enough to give it a place in the future mobile phone market.
These two are the only major mobile phone manufacturers that may be sold in China.
Unfortunately, the acquisition was not completed.
Chen Pingsheng simply started from scratch, transferred a large number of senior management from the group, and also selected tens of thousands of senior R&D engineers.
A wholly-owned subsidiary of Tengying Group named Tengfei Mobile was established in Jinshan.
Many large manufacturers have just entered the mobile phone industry and usually start as OEMs.
Trying to get the maximum benefit at the minimum cost.
Of course, this is also the best way to reduce risks.
Chen Pingsheng would definitely not do that.
He didn't hesitate at all. Since he had done this, he had to do it well.
The spending of money is also arranged clearly.
On October 12, Kingsoft announced an investment of 13 billion yuan to build its own mobile phone super factory in Shanghai.
With their experience in managing the Tengfei New Energy Super Factory, this part is not difficult for them.
On October 15, it announced another investment of 22 billion yuan to build the Ecological Lake Global R&D Center for Tengfei Mobile Phones.
After completing the planning and construction of the super factory and R&D center.
On October 18, it was announced that 8 billion yuan would be invested in each of the other three super first-tier cities in China to establish branch R&D centers.
If you want to make technological products, core technology is the most important.
After setting up the entire R&D team, he announced on October 21 that he would spend 13 billion to buy all Meizu mobile phones and the team from Geely.
This is also the earliest independent smart phone brand in China. Before 2010, it was second only to Taiwan's HTC.
Unfortunately, in the subsequent smartphone war, it fell behind step by step due to its chaotic internal management.
Unlike Luo Yonghao who made mobile phones, Chen Pingsheng does not need financing at all, and does not need to worry about the turnover in the past three years.
He could definitely use three to five years to perfect this matter.
Everything starts from the goal of becoming one of the top five mobile phone manufacturers in the world in the future.
Even further, it has become second only to Apple and Samsung.
It’s a bit too difficult to say that surpassing is the best. Surpassing is not just about sales.
What is more important is profit.
Apple's annual net profit is over 100 billion US dollars, and Samsung Electronics' profit in 2023 will be about 80 billion yuan.
Samsung is the world's number one in sales, but its profits are more than ten times lower than Apple's. They are not even on the same level.
Let’s put it this way, Apple wants sales data and offers an iPhone priced at two thousand or even three thousand yuan.
It can easily surpass Samsung and has no rivals in the same class.
Profit is the ultimate and most critical data for measuring a company, which determines its future market value.
Apple still dominates the global mobile phone market.
Last year, the global mobile phone market had a total profit of US$120 billion, of which Apple alone took US$90 billion.
It accounts for nearly 90% of the entire industry.
This is unimaginable in any industry, and only in the technology industry can such a monopoly occur.
He certainly wouldn't dare to think about surpassing Apple within five years, let alone within ten years.
Being able to achieve something similar to Samsung would be a success beyond imagination.
In October alone, he announced the launch of the hand dryer, a series of actions far exceeding the expectations of his peers.
He directly invested 70 billion to do this, and he can be regarded as an example of a country with no shortage of money.
Chen Pingsheng has never believed in making a small investment for a big return. Basically, he invests with the intention of making a big return.
The same is true for technological products. Car manufacturing relies on investments in the entire industry chain that far exceed those of peers.
The same will naturally apply to making mobile phones.
This month he cashed out his 1% stake in Google for $16.5 billion.
It is about 115 billion RMB, which will be used to develop Tengfei mobile phones.
He originally planned to directly acquire a big brand, but these people refused to sell it to him, so he had to spend hundreds of billions of dollars on his own to start the business.
In addition to the super factory, it purchased Meizu mobile phones and built its own R&D centers in the four super first-tier cities.
Another most important thing is to build offline mobile phone sales channels.
This is also the most time-consuming.
Whether it is OPPO or vivo, they rely on their widespread offline channels to firmly occupy the top five domestic mobile phone ranks.
This is also the main reason why it is difficult for large manufacturers to create a new mobile phone brand. To put it bluntly, it is particularly easy to make a mobile phone.
For chips, look for Qualcomm; for systems, look for Android; for assembly, look for a foundry.
These three things combined don’t cost much at all. The key is that if you want to sell well, you must build your own offline sales channels.
It is no longer possible to follow Xiaomi's light-asset Internet sales model.
This road has been directly blocked by Xiaomi.
Before the mobile phone brand becomes popular, it is impossible for channel franchisees to be willing to join.
After it is established, the franchise model will also lead to the profit being distributed layer by layer, and ultimately the cost advantage will no longer be obtained.
Xiaomi, which once sold mobile phones for 1,999 yuan with light internet assets, has an absolute price advantage.
Now that Xiaomi stores are everywhere, this advantage is rare.
It can only be said that the operating costs of offline stores are all spread on mobile phones.
This is also the main reason why Xiaomi’s prices are getting higher and higher.
He has already invested 70 billion yuan, and the remaining 45 billion yuan will be used for research and development in the next one or two years.
At the beginning, the sales channels had to be built by ourselves, so Chen Pingsheng invested tens of billions of funds.
To start Tengfei mobile phone sales network in advance, to put it simply, is to open offline channel stores.
Based on the investment amount of 500,000 for each store, he can open 20,000 stores at one time.
It sounds like a lot, but if you think about the mobile phone stores that exist in every town and village in the Blue and Green factories, you will know that these 20,000 stores are just average.
For mobile phone stores, the first investments are mainly concentrated in first-tier cities.
Only by doing well in first-tier cities can we rely on the franchise model to open stores in major towns in the future.
You don't need to look at anything else, just look at the amount of capital he has now and you will understand why it is difficult to enter the mobile phone industry.
Without tens of billions of dollars as a foundation, Xiaomi and the two blue and green factories can easily crush you to the ground.
He invested hundreds of billions to have a place in the future.
Not to mention that Tengying Group has accumulated a lot of experience in super factory management, as well as AI technology including solid-state battery technology.
The only weak points are the system and chips.
Android and Qualcomm can definitely make up for these two issues.
He has been developing his own AI system. It is not known whether he will succeed in the future, but it is obvious that if this step is successful, it will be of great significance.
If Tengfei Mobile Phone wants to be produced quickly, it can be produced in just a few months.
Chen Pingsheng did not intend to do so. He planned to take one to two years before officially launching his Tengfei mobile phone.
Either don’t launch it, or if you do launch it, it must be a mobile phone that truly possesses core technology and can be a hit in the market.
After all, there is no shortage of mediocre mobile phones in China.
It digested all of Meizu's mobile phone technologies and then relied on its own four R&D centers to re-cultivate core technologies in the mobile phone field.
What is more critical is to apply all the AI technology, solid-state battery technology, etc. that we have to the new mobile phone.
By investing over 10 billion yuan in a super factory, we can achieve the perfect matching and assembly of mobile phone components.
All of this takes time.
He is not as anxious as other large companies, mainly because the capital sector does not need to borrow money from others, nor does it need to listen to other people's advice.
Put aside all short-term interests and only pursue long-term benefits in the future.
This is the benefit of owning your own capital.
Just like selling a house, after buying the land, he can hold it for seven or eight years before selling it.
Just wait for the period when housing prices are the best.
The same goes for mobile phones. A series of major investment directions were announced in October.
Then he disappeared without a trace, as if he had never done it.
Only those who know the situation understand that the giant ship of Tengying Group has already started moving.
Just like when he built the car, he spent the most money, and when it came out slowly and calmly, he secretly surprised everyone.
He was able to quickly use money to invest in the entire industry of Tengfei Mobile, but the technical sector included team integration, establishment of offline channels, and development of proprietary technologies.
Everything takes time.
He has prepared about 160 billion yuan for mobile phones, and has invested 125 billion yuan so far, and will invest another 35 billion yuan in the future.
The reason why there is no need to invest too much is that Tengfei AI has already accumulated the most important AI technology resources.
It is still calculated independently. You should know that AI is a strategic technology that he invests 30 to 40 billion yuan in every year.
If you add this amount of money in, the annual R&D expenses are beyond imagination.
Not to mention the solid-state batteries he has almost accumulated.
In terms of battery, he will be the one with the longest standby time in the future, and no one else will.
The accumulation of over 100 billion yuan in investment over seven years is definitely no joke.
With these two trump cards, it is enough for him to gain a foothold in the market.
It is impossible to be the best at everything, as everyone has their own advantages.
Just like Apple won’t release a thousand-yuan phone.
No one can surpass Samsung in terms of screen.
It started its research and development in the 1990s and lost tens of billions of US dollars for a decade. It is impossible to surpass others just by saying so.
With two core trump cards of his own, plus other first-class technologies, it is definitely enough for him to break into the current mobile phone market.
After investing in mobile phones, he will not make any major moves in the next two or three years.
All of this must be successfully digested before the group can find the next growth point.
Otherwise, blind investment would be dangerous, as it would increase financial risks infinitely.
At least he has no financial pressure now.
It also holds a 1% stake in Microsoft and a 4% stake in Nvidia.
Together with his current business, it can generate a stable net profit of 18 billion every year.
This is enough to ensure that he can advance existing major projects, including core technologies, without any pressure in the next three years.
In three years, the technological accumulation of his entire group will definitely reach a whole new level.
As for the development of the two mountains in Jinshan, including the customization of the world's largest ocean cruise ship, there will be no pressure on him.
He has the funds to complete it independently.
Since he invested hundreds of billions of yuan in the mobile phone industry, more and more people have come to him for cooperation, and even asked him to acquire their companies.
Unfortunately, they were all rejected by Chen Pingsheng.
He also directly announced that there will be no major project investment in the next three years.
Everyone can understand this, after all, he really spent too much money this year.
Whether it is building the world's largest cruise ship, or developing a six-star hotel between two mountains, including the current investment of hundreds of billions in mobile phones and the acquisition of Wanda Plaza.
Any of these actions cannot be completed without tens of billions of dollars.
He did it all within a year, and he can only rest and even recuperate for the next three years.
Fortunately, he had enough funds, so he was able to complete everything within a year.
The most important thing is its AI technology, which requires an investment of 30 to 40 billion yuan every year. With this heavy burden, it can only be peaceful for three years.
The days passed slowly, and in the blink of an eye it was November.
Tengyou Media has reached a market value of 500 billion yuan, becoming the veritable first short video entertainment stock in China.
This is equivalent to pulling the entire entertainment industry up together against the trend.
The market value of Tencent Entertainment has also recovered to over 100 billion.
He now has more than six companies under his management with a market value of over 100 billion yuan.
They are Luckin Coffee with a market value of 16 billion US dollars, Tengde Times with a market value of 350 billion, and Tengying Entertainment with a market value of over 100 billion.
As well as Tengfei New Energy, which is worth over 420 billion yuan, there are also unlisted Wanda Plaza and Tengchao Commercial Management.
The group has become incredibly strong this year.
(End of this chapter)
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