I want to be a chaebol - Chapter 264 Investing in UC Browser

The second stop of Song Yi’s inland inspection was Yangcheng. At this time, Song Jingyan and Xia Huai also rushed to Yangcheng to join Song Yi.

Song Jingyan was very enthusiastic when she saw Song Yi, and took the initiative to hug Song Yi, “Brother Yi, I have been waiting for your notification in Korea, and I finally got it.”

After all, Xia Huai and Song Yi were not familiar with each other, so Song Yi took the initiative to shake hands and said, “Hello, President Xia, I’m sorry, but I’d like to ask you to make a trip to the mainland.”

Xia Hui’ai was originally worried that Song Yi would be difficult to get in touch with, but seeing Song Yi being so easy-going, she felt like a breath of fresh air, “President Song, it’s me who disturbs your work.”

“No, no, no, as the president of the China-Korea Chamber of Commerce, it is also my job to provide assistance for the development of Korean companies in China. President Xia wants to move the factory’s production lines from South Korea to the mainland to reduce the company’s labor costs.”

“Many electronic companies have settled in the second phase of the Kaesong Industrial Park. Why didn’t President Xia consider moving the company to the Kaesong Industrial Park? After all, the wages of North Korean workers are still far behind the average wages of mainland companies. .” Song Yi was a little confused.

Xia Huai was a little embarrassed, “My sister persuaded me to move the company to Kaicheng Industrial Park, but I am personally worried about the recurrence of North Korea’s policies, so I want to change to a stable production and operation environment.”

“For foreign-invested enterprises in the mainland, the main purpose is to introduce some high-tech and high-value-added high-quality enterprises. Labor-intensive industries like President Xia’s instrument electronics factory are no longer popular in coastal areas. If the factory is placed in the inland area, Including logistics costs, there is not much cost advantage compared to local production in South Korea.” Song Yi said bluntly.

When Xia Huai heard what Song Yi said, her heart suddenly went cold. She originally thought that when she came to invest in the mainland, she would be able to enjoy the preferential policies of foreign companies, but she was afraid that she would have to shave her head and pick a new one.

Song Jingyan took Song Yi’s hand and said coquettishly, “Brother Yi, don’t sell yourself to President Xia. If you have any good investment suggestions, you might as well talk to Minister Xia. Minister Xia is not an outsider.”

Xia Huai felt a little strange when she saw Song Jingyan’s behavior. She knew that Song Yi and Song Yuxi’s family had a good relationship, but wasn’t Song Jingyan already married? Shouldn’t she avoid getting into trouble with Song Yi?

Song Yi noticed Xia Huai’s eyes and patted Song Jingyan’s hand gently, “Jingyan, don’t make trouble, President Xia and I are talking about business.” Song Jingyan also noticed Xia Huai’s strange eyes, stuck out her tongue, and stood obediently Arriving next to Song Yi.

“Mr. The cooperation between Korea.com and Taobao has opened up in the mainland market, but I have researched your company’s products and they do not yet meet the selection requirements for Taobao’s Korea Pavilion,” Song Yi said.

When Xia Huai heard what Song Yi said, she felt even colder. The reason why she wanted to build a factory in the mainland was to use SA Group’s sales channels in the mainland to sell the electronic products produced by her factory to the mainland. As a result, Song Yi directly called Stop her thinking.

“President Song, although this is our first time dealing with each other, you and your sister are good friends. If you have anything to say, you might as well say it directly,” Xia Huai said.

“If I give you a suggestion, then I suggest you sell all the production lines in South Korea, then buy equipment, build a factory in the mainland, and be an OEM supplier for us SA Electronics.” Song Yi said his ultimate goal.

The so-called OEM is the original equipment manufacturer, also known as fixed-point production, commonly known as OEM production. Brand producers do not directly produce products, but use their own core technologies to design and develop new products and control sales channels.

For example, Foxconn is Apple’s OEM supplier. Every year, Foxconn factories assemble and produce apples, then ship them to the United States and then sell them around the world. Of course, SA Electronics will initially choose Foxconn, which has mature technology, to help produce the Galaxy S series of mobile phones, but it wants to support an OEM supplier of its own, and Xia Huai is a very suitable candidate.

Xia Huai was a little dissatisfied. OEM is also a labor-intensive industry, so why did she sell the instrument electronics factory and then transform to SA Electronics as an OEM supplier? Unless SA Electronics’ OEM business is very large and can bring very considerable revenue to her factory.

She immediately grasped the key, and her tone was a little excited, “SA Electronics is also preparing to enter the consumer electronics business? Is it preparing to manufacture mobile phones, computers or cameras?”

The two electronic giants Samsung and LG both produce in their own factories. Xia Huai did not expect that Song Yi would be willing to outsource this part of the business to a contract processing company.

Large Korean consortiums are often large and comprehensive. Samsung controls all aspects of Samsung mobile phones from Ru0026D, design, assembly, production to sales. Samsung mobile phone processors, memory, screens, and all mobile phone hardware are provided by Samsung Electronics. This is also the reason why Samsung has been able to firmly occupy the high-end mobile phone market.

Song Yi feels that Xia Huai is also a smart person, and it is clear at one point, “SA Electronics is indeed preparing to enter the field of mobile phone manufacturing. SA Electronics will release its first mobile phone product in the second half of the year, and this mobile phone is very competitive. According to our estimates, The global sales volume of this mobile phone is about 5 million units. After 2008, SA Electronics’ mobile phone production scale is expected to exceed 20 million units. President Xia’s transition into the OEM industry at this time can be said to be the right time. .”

Apple’s first-generation iPhone sales were 1.3 million units, second-generation iPhone 3G sales exceeded 11 million units, Apple 3GS sales were 20.7 million units, and iPhone 4 sales exceeded 39 million units.

For Apple, the first-generation iPhone is more like a concept machine, and is mostly bought by some early adopters of mobile phone users. iPhone 3G is an important breakthrough, because iPhone 3G has begun to support 3G networks, and the iOS 1 system has officially landed on the iPhone series of mobile phones, opening a new era of smart phone software and hardware integration.

The Galaxy S1 released by SA Electronics in the second half of the year is closer to the iPhone 3G and supports 3G networks. SA Soft has tailored the SuperOS 1.0 system for this phone. Galaxy S1 mobile phone users can access inschool and Yahoo Korea websites on their mobile phones, and can also play “Happy Farm” and board and card games.

Song Yi originally planned to port the game “Kart Racing” to the Galaxy S1 mobile phone, but later discovered that the Galaxy S1’s running memory and storage memory did not support running such a complex large-scale game.

Xia Huai was immediately moved when she heard the data introduced by Song Yi. The foundry’s income mainly comes from two parts, one is the mobile phone motherboard business and the other is the assembly of finished products. The gross profit of these two together is about US$12.

The gross profit of 5 million mobile phones is US$60 million, and the gross profit of this part of the business will be as high as US$240 million in the future.

Xia Huai never expected that Foxconn’s parent company, Hon Hai Group, would become a manufacturing giant with a revenue of over one trillion yuan by manufacturing 70% of iPhones.

However, when it comes to the transformation of her own company, Xia Huai still needs to think carefully. If the Korean factory is sold and then built in the mainland, the initial income will not be a small amount. If the sales of mobile phones produced by SA Electronics are not as expected, and Xia Huai’s foundry cannot receive other suitable foundry business, she will lose money just from the initial investment.

Song Yi knew that Xia Huai had to discuss it with her sister Xia Meiai again, and expressed her understanding, “President Xia, when I come to the mainland for inspection this time, I will go to the Puhai Research Center of SA Electronics, which is produced in small quantities by SA Electronics. The real phone has been released. You might as well take a look with me. Only by comparing this phone with other phones on the market can we make a better judgment, what do you think?”

Song Jingyan heard that Song Yi was very confident in SA Electronics’ new mobile phone project, and she couldn’t suppress her curiosity, “Brother Yi, I hear what you mean, our group’s new mobile phone will be launched soon, why is there no news at all in the company?” , you’ve done a good job of keeping it confidential, haven’t you? Can I also visit the scientific research center?”

Song Yi did not agree directly, “The scientific research center in Puhai is the last stop of our inland inspection. We will wait until you still have the energy to go to Puhai. This inland inspection trip is relatively intensive and is actually quite tiring.”

Song Jingyan is currently an executive in the investment department of SA Bank, a middle-level cadre of the SA Group. According to her rank, she does not have access to relevant materials about SA Electronics’ mobile phone project. It is normal for her to be a little curious.

The reason why Song Yi set the second stop of his inspection in Yangcheng is because there is a good investment project in Yangcheng, UC Browser.

In 2004, He Xiaopeng and Liang Jie co-founded UC Youshi. He Xiaopeng led the team to develop products such as UC Browser and UC Paradise.

UC Browser is currently divided into UC Browser computer version and UC web version. Currently, computer browsers are still dominated by IE, accounting for almost 80% of the market share. Firefox and Aoyou Browser occupy the remaining market in the mainland browser market. The PC version of UC Browser has no prospects for large-scale commercial use.

At present, the mainland has not issued 3G licenses to the three major operators. Internet access on mobile phones has become commonplace in the mobile Internet era. It was still a new thing in 2006.

Because mainland mobile phones currently mainly use 2G Internet access mode, mobile phone users’ Internet access speed is very slow, and the traffic charges are high.

UC Web Browser can reduce the traffic consumption of converting the content of PC web pages to mobile phones. Because it speeds up the speed of mobile Internet access, netizens praise UC Web Browser as the most cost-effective browser. Moreover, UC Web Browser also enables multiple web pages to be opened at the same time, alleviating people’s anxiety of waiting.

The mainland’s 3G network only began to be widely popularized in 2008, so UC Web Browser has not yet been taken seriously by other investors.

In fact, Yu Yongfu, who served as the vice president of Lenovo Investment, later valued the investment project of UC Browser and recommended this project to his friend Lei Jun. Lei Jun, who led Kingsoft to complete the listing, did not hesitate to invest 4 million yuan in UC Browser to help the company tide over the difficulties. Lei Jun personally invested 2 million yuan, accounting for 10% of the shares.

Later, in order to gain access to the mobile Internet, Alibaba spent US$4.3 billion to acquire UC Browser. Lei Jun made a fortune while investing in UC Browser. Later, Lei Jun also invested in Xiaopeng Automobile, an electric vehicle brand founded by He Xiaopeng.

The reason why Song Yi fell in love with the UC Web Browser product is that the UC Web Browser product can be easily ported to the Galaxy S1 mobile phone, as long as the UC team can develop a corresponding mobile phone version based on the Super OS 1.0 system.

SA Soft has also developed a built-in browser for the Galaxy S1 series mobile phones. However, in the era of mobile Internet, mobile phone manufacturers’ built-in browsers have not set off any sparks. As strong as Apple, Safari’s market share in the mainland market is still no match for the two giants UC Browser and Penguin Browser.

He Xiaopeng heard that Song Yi was coming to inspect UC, and he made preparations for the reception very early. Although Song Yi spends most of his time in South Korea, he is no stranger to the mainland’s Internet and capital markets.

Song Yi has invested in four major Internet companies: Penguin, NetEase, Baidu and Alibaba. New Asia Advertising and New Asia Network have both been listed on the Hong Kong stock market.

The Rong family, the richest man in China on the Forbes list, has assets of US$1.64 billion, while Song Yi’s current personal net worth exceeds US$8 billion.

He Xiaopeng didn’t know why Song Yi took a fancy to the UC Browser project, but he really treated Song Yi like the God of Wealth. As long as Song Yi is willing to invest in UC Browser, UC Youshi will not encounter financial problems for a long time.

He Xiaopeng originally wanted to make a meal first and treat Song Yi and his party to lunch. After all, it was almost time for dinner.

Unexpectedly, Song Yi refused directly and said bluntly: “Mr. He, my trip to the mainland this time is quite tight. I have to fly to Yanjing in the evening. Let’s seize the time to take a look at your company’s products.”

When He Xiaopeng heard that Song Yi was flying to Yanjing that night, he thought that Song Yi’s trip was just a formality and had no intention of investing, so he felt a chill in his heart. He originally contacted the district leaders and attended Song Yi’s reception banquet together. The district also wanted to introduce one or two large projects from the SA Group.

However, because of his face, he still cheered up and introduced various products of UC. He Xiaopeng noticed that Song Yi was very interested in the product UC Web and asked many technical questions.

When it was time to eat, Liang Jie, co-founder of UC Youshi, invited Song Yi and his group to have a meal first. Song Yi was a little unfinished, so he finally ate a box lunch in the conference room and then continued the meeting.

Song Yi also put forward his own suggestions to He Xiaopeng, asking UC Youshi to concentrate its manpower and focus on developing UC Web Browser, and then also consider the computer version of UC Browser. Song Yi also revealed to He Xiaopeng that SA Electronics will launch a new mobile phone in the second half of the year, and hopes that UC Youshi can develop an adapted UC Web browser based on the Super OS system.

Finally, Song Yi and UC Youshi finalized the investment plan. Song Yi invested 5 million yuan in UC Youshi in exchange for 20% of UC Browser shares. This investment was completed in the name of Shining Investment Partnership, and Song Yi also promised to follow up on every round of financing of UC Youshi. It can be said that UC Youshi has completely gotten rid of the dilemma of lack of money.

SA Electronics also paid RMB 5 million to UC Youshi in advance to help the UC team develop an adapted UC Web browser for the Super OS system. UC Web Browser will also become the built-in browser for Chinese mobile phone users of Galaxy S1 series mobile phones.

After Song Yi and his party signed the agreement and headed to Tianhe Airport, He Xiaopeng looked at Liang Jie with emotion, “I really didn’t expect that a billionaire could be used to eating box lunches. I almost thought that SA Group’s investment was a waste. “

Liang Jie took a puff of his cigarette and said, “Who says it’s not the case? In the past, even Maotai and Huazi couldn’t handle certain investors. Investors like Song Yi are indeed quite rare.”

“It can be seen that the reason why Song Yi is willing to invest in our UC is because he is interested in the UC Web browser project. According to the agreement, our UC needs to develop an adapted browser for SA Electronics’ mobile phones.”

“In order to keep SA Electronics confidential, our UC needs to send a technical team to Puhai to develop an adapted browser for SA Electronics’ Super OS system. Xiaopeng, do you think I should go over and lead the team, or should you go there yourself?” Liang Jie asked road.

He Xiaopeng thought about it and said, “It’s already the end of April, and SA Electronics’ new mobile phone will be launched around the National Day. Time is tight and the task is heavy. I’d better make a trip by myself. I’ll leave it to you from the company. What’s the matter? If you call me, you’ll end up traveling between Puhai and Yangcheng.”

“Super OS, SA Electronics named their mobile phone system Super System. I am very interested in SA Electronics’ mobile phone system. Is their mobile phone system more powerful than Nokia’s Symbian system?” He Xiaopeng said.

“Xiao Peng, since our company has raised funds, would you like to see Yu Yongfu again? After all, Yu Yongfu was also very optimistic about the UC Browser project before.” Liang Jie asked a key question.

If He Xiaopeng goes to Puhai to preside over the development of the Super OS version of UC Web Browser, the company’s main founder will not be in Yangcheng, which will also affect UC Youshi’s subsequent financing work.

He Xiaopeng thought about it and said, “If Lao Yu comes to Yangcheng, please help me receive him first. I won’t come back from Puhai. Ms. Song next to Song Yi looks familiar to me. I seem to have seen her at IDG Capital before. Can you help me?” Let me find out if it is her.”

Liang Jie asked someone to ask and confirmed Song Jingyan’s identity. Song Jingyan had indeed worked at IDG Capital for several years before. IDG Capital originally planned to promote Song Jingyan to partner, but later Song Jingyan voluntarily gave up the promotion and finally joined the investment department of SA Bank.

When the vice president of Lenovo Investment heard that Song Yi had invested 5 million yuan in UC Youshi in exchange for 20% of the equity of UC Youshi, he felt very regretful and felt that he had missed a very good star project. At the beginning of the year, he suggested that Lenovo Investment invest some money in UC Youshi, but Yu Yongfu, the vice president, could not make the decision. For the first time, he had the urge to leave Lenovo Investment and start his own business.

“Brother Yi, are you very optimistic about the UC Browser project?” Song Jingyan on the plane couldn’t help but ask. Song Yi invested 5 million yuan in UC, of ​​which 100,000 yuan was invested by Song Jingyan and Xia Huai, who also held a small amount of shares in UC Youshi.

“There are too few Super OS applications. I am open-minded and hope that more and more developers will join. Whether UC Web Browser can seize the opportunity of the Galaxy S1 phone depends on He Xiaopeng himself.”

Song Yi is also curious whether UC Browser can become the new king of mobile browsers in the mobile Internet era without the participation of Yu Yongfu and Lei Jun.

Writing Chapter 2