"Do you think the VCD market is too small, or it won't last long?" Sha Zhengyang decided to test it again to see how strong this guy's market sense of smell is.

Duan Yongming looked at Sha Zhengyang in surprise, leaned back a little, and focused his mind, as if he was considering Sha Zhengyang's intention to ask this question.

The rear row of the Mercedes-Benz S300 is very spacious, and the two of them sit in the car without any crowding feeling, which is a bit like business class.

Duan Yongming is actually not so particular about this aspect, but as a business owner, he deals with too many people. Whether it is a partner or a government leader, people rely on clothes and Buddha to wear gold clothes, which is very popular in China, so he also followed the customs and got a Mercedes-Benz S300.

Hutou Bien seems to have become the standard configuration for large-scale enterprises in Wanzhou, and the initiator is Jiao Hong.

She brought a Mercedes-Benz S320 from Handu as a car, and even this made Sanyo very disagree. She believed that the Lexus ls400, which is now in the United States, should be used to defeat the Mercedes-Benz and BMW.

However, Jiao Hong still did not choose Lexus after riding in the imported Lexus ls400, which disappointed Sanyo.

But in private, Jiao Hong still mentioned to Sha Zhengyang, saying that the ride experience of the V8 LSI 400 is indeed very good, but she represents the major shareholder of Oriental Hong Group as the general manager of Sanyo Ruos, so it is more appropriate to choose a car brought by Oriental Hong Group, rather than riding in Lexus according to Sanyo's suggestions.

Perhaps Jiao Hong opened this head, and later Thunder also equipped with a Mercedes-Benz S300. Then Wanzhou Pharmaceutical Factory and Handong Pharmaceutical Co., Ltd. purchased two Mercedes-Benz S300, and finally Gaosheng Electronics also bought an s300. Driven by this trend, private bosses in Wanzhou were proud to be able to afford Tiger Head Bin, so Tiger Head Bin suddenly became more and more on the streets of Wanzhou.

This seems to have become a beautiful landscape on the streets of Wanzhou, and it has also become the capital for Wanzhou citizens to show off to other friends who come to Wanzhou.

"The market is definitely not small. The domestic economy has developed, and the demand for cultural, entertainment and life is growing. This is a major trend, especially as we all know, pirated discs from Nanyue are everywhere. This vcd DVD player provides an extremely rich source of films. Now, the entertainment method of Karaoke is beginning to be popular, and home theaters can be equipped with one, so the market capacity is large. Now it is mainly purchased by mid-to-high-end families in cities. I estimate that DVD players will enter the homes of ordinary people starting this year. It is estimated that rural areas will become popular next year, so the market is still very large."

Duan Yongming's words made Sha Zhengyang nod, "So, do you still think this market will not last long?"

"The technical content of VCD DVD player is really not very high. One movement and one mpeg decoding chip. Now Huazhong's mpeg decoding chip is better than Scoop, that is, the movement. As far as I know, Sony and Panasonic have the strength to develop movements, but they didn't pay much attention to it before. Now Sony is working on technical problems. It is estimated that the movement will not be a problem next year at most. Philips's food alone will be a year."

Duan Yongming's judgment is also based on market research.

The lack of market technical thresholds makes any grass-roots company able to quickly bring up a DVD player company as long as it lives in the supply of movements and mpeg digital chips. If it is good at packaging and advertising, it is not difficult to make a large amount of quick money in a short period of time.

But now, the explosive growth momentum of almost rolling around makes Duan Yongming a little scared.

The shipments of DVD players in the fourth quarter of 1995 were three times higher than those in the third quarter, and in January 1996, their shipments increased even more sharply.

Duan Yongming estimated that the national sales of VCD DVD players may exceed 5 million in 1996, and may even exceed 15 million by 1997. For this reason, both Gaosheng Electronics and Huazhong Electronics are constantly expanding production lines.

Especially after Huazhong's mpeg decoding chip defeated Scooper, the market share soared, and last year it sold 600,000 sets of mpeg decoders. This was the premise that Scooper had a certain advantage in the market in the early stage. Huazhong Electronics' profit last year was as high as US$15 million, equivalent to more than RMB 120 million.

Hanhai Hi-Tech, the developer of mpeg decoding chips, charged a patent fee of RMB 220 per set of mpeg chips through patent licensing. This alone brought 130 million yuan of pure profits to Hanhai Hi-Tech, directly making Hanhai Hi-Tech the hottest high-tech technology company in Hujiang.

Although Scooper's mpeg decoding chip error correction capabilities are not as good as those of Huazhong, due to the current market in short supply, Huazhong still tacitly reached an agreement with Scooper, refusing to price wars and tacitly monopolize to achieve high profits is a tacit reality.

Both sides stabilized the price of mpeg decoding chips between RMB 500 and RMB 550, and never fell below RMB 500. Even if Gaosheng Electronics can get goods from Huazhong Electronics first, the price still needs to follow market rules.

According to the hot trend of the vcd DVD player market this year, Huazhong Electronics' capacity expansion and construction that began in the second half of last year has come to an end. It is expected that 4 million sets of mpeg decoding chips can be shipped this year.

However, since Scooper is also expanding production, the prices of both parties are expected to decline to a certain extent, but the price of each chip will not be lower than 400 yuan. Huazhong Electronics expects to achieve sales revenue of 1.8 billion yuan this year, and its profit may be as high as more than 1 billion yuan. This is also a step-by-step patent fee reduction contract implemented by Huazhong Electronics' production. When Huazhong Electronics' sales exceeded 1 million, 2 million, and 4 million units, respectively, the patent authorization fee was reduced at different prices.

This is the value of mastering technological monopoly.

Even Duan Yongming was a little jealous of the high profits of Huazhong Electronics and Hanhai Hi-Tech, which also made him highly admire Sha Zhengyang's strategic vision and perspective.

If Sha Zhengyang had not tried his best to lobby him and assured him the huge prospect of investing in Hanhai Hi-Tech and Huazhong Electronics, he would not have been able to bet on the vcd DVD player market. Now it seems that the huge returns brought by this bet are simply unimaginable.

Because of this, Duan Yongming, who is so proud, has always regarded Sha Zhengyang as his biggest confidant. He believes that after working hard for so many years, only Sha Zhengyang is stronger than himself in strategic vision, and is barely comparable to his idol Buffett.

"A Duan, are you worried that as the movement is monopolized by Philips is broken, and the production capacity of Huazhong Electronics and Scooper is rapidly increasing, the bottleneck of the production capacity of movement and mpeg decoding chips is released, and more companies will pour into this market, causing the market to quickly turn to the buyer's market?" Sha Zhengyang heard Duan Yongming's concerns.

"This is inevitable. The information I have received is that Sony is red-eyed by the high profits of Philips's unique movement. At the latest next year, it will produce movements with even stronger error correction capabilities, and its production capacity will keep up. Philips is also increasing its capacity expansion. Haven't you already contacted Philips? Over the years, Philips will build a movement manufacturer in your Zhenyang? Although Huazhong has a tacit understanding with Scooper in terms of price, in the face of such a good market, who can see that money is not profitable?"

Duan Yongming obviously also thought about it carefully.

"Huazhong ships 4 million units this year are the bottom line, and may even exceed 5 million units. Scobo is a step further in building a factory due to the impact of Huazhong Electronics' decoding chips. In addition, he is worried about Huazhong Tea Energy, so the capacity expansion is more conservative. However, this year they have also expanded their production capacity and can achieve at least 2 million units. In this case, the market is so good, who doesn't want to grab a share of the pie?"

"Haha, if you do this, the market will be in chaos as soon as everyone rushes to the top."

Sha Zhengyang was a little chilling when he recalled the tragic VCD price war in his previous life. He went to buy a super VCD at that time.

In 1998 and 1999, the VCD and Super VCD standard battles, and then DVD joined the battle group, which was a bloody river. The VCD market turned from the blue ocean to the red ocean in just two or three years. Countless VCD companies fell to the ground. Even the most prosperous king Aido disappeared like a comet in the fireworks all over the sky.

"That's not possible. Chinese companies like to follow the trend and are unwilling to increase their investment in technology research. Zhengyang, I really admire you this. I dare to take over the Lenovo Microelectronics Design Center without any comparison. I guess Lenovo was probably kowtowing and bowing before and sending this hot potato gift to the door." Duan Yongming laughed, "But now they may have regretted it."

"It doesn't matter if Lenovo regrets it. The Chinese Academy of Sciences is still among the major shareholders, and isn't Fudan also among the major shareholders? The Chinese Academy of Sciences is the second largest shareholder after Dongfanghong. It has more equity in Gaosheng Electronics. Not only has the state-owned assets not been lost, they are still achieving huge value-added."

Sha Zhengyang smiled coldly.

"If you said that Huazhong Electronics wants to ship 4 million sets of mpeg decoding chips, even if the patent licensing fee is significantly reduced, Hanhai Hi-Tech's net income alone can exceed 600 million to 700 million, right? For the Chinese Academy of Sciences and Fudan, are we considered the hens that sent them golden eggs?"

Duan Yongming laughed loudly, "Of course the Chinese Academy of Sciences and Fudan will laugh from ear to ear. I just said that Lenovo will definitely regret it and beat its chest and stamp its feet. I regret that when Hanhai Hi-Tech invested, it should have invested 10 million more, at least it would have gained the third largest shareholder, so as not to be on par with me."
Chapter completed!