Pricing in foreign markets will be higher than in the domestic market. Coupled with the rapid iteration of domestic mobile phones, the profits in foreign markets are very considerable.
Take rice as an example. In 2020, rice's overseas revenue exceeded domestic revenue for the first time.
Cheng Gang, who previously served as the investment director of Shuntian Capital, has a clear understanding of the profit sources of the mobile phone industry.
Shunwei Capital invested in many mobile phone supply chain companies after Lei Jun founded Rice.
Cheng Gang asked back: "Mr. Chen, when your company buys Qualcomm's patent license, will Qualcomm charge tiered fees?"
Qualcomm usually sells chips and then charges a lump sum for other patents.
“Kechuang Biotechnology’s brain-computer connection patent is the only brain-computer connection patent on the market that can be commercialized. I think it is completely reasonable to enjoy an appropriate premium.”
"Relying on our Chinese-language brain-computer connection to mobile phones, Oppo has made a lot of profits in Greater China."
Generally speaking, less than 20% of high-end Bluetooth headsets launched by mobile phone manufacturers are purchased with mobile phones and Bluetooth headsets.
After the launch of brain-computer-connected mobile phones, the proportion of people who bought brain-computer-connected headphones with them was almost 100%.
Almost all major mobile phone manufacturers operate this way. They also set it up so that only their brain-computer connection and mobile phone can only match their own headphones.
If the user uses other brain-computer connection devices, mobile phone manufacturers say there will be no restrictions, but in fact it will make your operation laggy.
Rice has been building momentum in the public opinion field to gain a foothold in the high-end market, but OV, which has been working quietly, has occupied a lot of the high-end market that it has withdrawn from.
Instead, I have been emphasizing that only rice in the high-end market is priced high. Every time I set a high price, I have to repeatedly emphasize to users how cost-effective and technical it is, which is why it is sold so expensive.
The target consumers of high-end mobile phones don't actually care about cost performance. This is a very contradictory thing about rice.
Regarding the second phase of brain-computer connection patent licensing, major mobile phone manufacturers are coordinating privately to try to advance and retreat together, trying to delay and avoid price increases this time.
"If you agree to Kechuang Biotechnology's request this time, the price will be raised to 800 next time, and the next time it will be 1,000!"
"You must know that Qualcomm's 5G patent fees are not that exaggerated! Do we have to accept such high patent licensing fees?"
Qualcomm’s 5G patent licensing fee is 65% of the sales price of each mobile phone multiplied by 5%.
"We need to be consistent."
Everyone privately said that they wanted to resist the monopoly hegemony of Kechuang Biotechnology, but it turned out that the first company to sign a patent licensing contract was Samsung.
In order to occupy the European and American high-end markets before Apple, Samsung directly signed a patent licensing fee of 500 yuan.
Before the news spread that Samsung signed the contract first, Rice signed the second contract.
When the news of the signing between the two companies came out, the alliance to resist the monopoly hegemony of science and technology biotechnology came to an end before it was even established.
After the disclosure of the new brain-computer connection patent licensing agreement of Kechuang Biotech, the outside world has seen the huge profits of monopoly.
A one-time price increase of 150%, without any counter-offer.
This is an excellent science popularization for science and technology as the primary productive force, making China realize why we should climb to the upper reaches of the industrial chain.
It also made everyone realize how valuable monopoly technology is, and the news quickly detonated the public opinion circle.
Pharmaceutical stocks have been under pressure for 22 years, and their valuations have been double-killed from both the news and financial aspects. The previous core tracks did not seem to be that core, and pharmaceutical companies with technical content did not seem to have as much technical moats as everyone imagined.
As a company in the pharmaceutical sector, Kechuang Biotechnology will also be doubted by institutions and retail investors, wondering why it can enjoy such a high valuation?
Big V on Snowball posted a long article discussing this issue.
“With the recovery of the news, Science and Technology Biotech, which had been plummeting for several days, finally turned red, and today a long positive line with volume returned to 2,000 yuan.
It is rumored that the unit price of brain-computer connection patent authorization from the English Department of Kechuang Biotech is 500 yuan. The news has not yet landed, and Kechuang Biotech has not made an announcement yet.
But it should be true in terms of trading volume. Retail investors at the unit price of Kechuang Biotech cannot support such a large volume.
Today I want to talk about whether Kechuang Biotechnology’s valuation of one trillion RMB is worth it. CATL reached its highest valuation in December last year, with a market value of 1.6 trillion.
Now the valuation after the fall is still 1.2 trillion. While CATL’s net profit in 2020 was only 5 billion yuan, Kechuang Biotechnology’s full-year net profit in 2021 was around 10 billion.
Everyone will say that CATL has high expectations and high growth. In the future, the penetration rate of new energy vehicles will further increase, so CATL can enjoy high valuations.
But if you think about it from another perspective, isn’t Kechuang Biotech experiencing high growth? Regardless of his innovative drug pipeline, in the field of science and technology brain-computer connection alone, the net profit growth forecast in the past two years has exceeded 100%.
Originally, the market expected to complete the research and development of brain-computer connection in the English department this year. As a result, Kechuang Biotech completed the research and development goal that should have been completed throughout the year in January.
In other words, Kechuang Biotechnology's profits in this area can be released in advance. It just so happens that major mobile phone manufacturers have not yet started to produce high-end mobile phones this year. The profits in this area are worth looking forward to.
As a small shareholder of Kechuang Biotech, I have been holding Kechuang Biotech since its listing until now, and I have also increased my position in the past two days.
I have more expectations for it. It is not just about brain-computer connection with mobile phones. My expectation for Science and Technology Biotechnology is that it can truly open up the boundary between cyberspace and real space through brain-computer connection, and work with other Chinese companies to implement the metaverse. .
I hope that the next industrial revolution will start in China and that we can occupy the upper reaches of the industrial chain.
This expectation is of course very unrealistic. To be honest, it is now the brain-computer connection technology of the English Department, as well as the Japanese Department, Korean Department, Arabic Department and Russian Department.
The research and development progress of brain-computer connection technology for these language families will definitely exceed expectations.
In addition, Kechuang Biotech is making brain-computer connected prostheses. The demonstration video they recently released officially has very obvious effects. I personally compared similar foreign videos and felt that Kechuang Biotech's prostheses are obviously more flexible.
Once the brain-computer connection is implemented, it can support a trillion-dollar valuation.
As for the endorphin and innovative drug pipeline, innovative drugs are not currently managed by Director Zheng personally, but are also managed by a team led by Dr. Hua Guo from Pfizer Pharmaceuticals.
With financial support and no pressure on time or performance, I believe Kechuang Biotech can build a systematic drug research and development pipeline in a down-to-earth manner.
It is entirely possible to become a competitive pharmaceutical giant in the international market in the future.
Therefore, I think Kechuang Biotechnology’s market value of RMB 1 trillion is not overestimated, but underestimated.
The decline these days is caused by the excessive sales and declines of funds, rather than problems with the company's own logic or performance.
And it can be clearly seen that although the stock price has been falling, foreign capital continues to flow in, and northbound funds have a net inflow of several hundred million every day.
After the Europa asset management giant released its annual report last year, they also increased their positions in Kechuang Biotech in the fourth quarter.
Investors who have invested in Kechuang Biotech don’t have to worry at all, just be prepared to grow with the great company. "
