If the profit of a mobile phone brand is too low, it will definitely not be able to obtain a high valuation when it goes public, and it will be difficult to even want to go public by then.
But if the interests of the mobile phone brand are too high, it will be the Sugon system itself that will suffer in the end, because after Sugon Technology goes public and makes profits, it will definitely share the profits with its shareholders.
"I wonder how much profit should be set for the Sugon S2 smartphone? This is a troublesome question."
At this time, Li Qianqiang, who was in charge of mobile phone sales, expressed his doubts and needed to wait for Rebus or Lin Chen to make the final profit decision.
Because as a post-listed Sugon Technology, how much profit it can make from selling a mobile phone can actually be controlled by Lin Chen.
The current Sugon Technology can produce its own mobile phone spare parts in addition to battery assemblies, mobile phone screen assemblies, memory and flash memory, and can also assemble complete mobile phones by itself.
In addition, because the mobile phone screen is developed in cooperation with Jingdongfang, the purchase price is naturally extremely low.
Finally, take a low-end Sugon S2 smartphone priced at 4,999 yuan as an example.
Sugon Technology's final total profit from selling a low-end Sugon S2 smartphone was not the thousand or hundreds of yuan as speculated by the outside world, but as high as 3,500 yuan!
Of course this refers to the total income after deducting taxes and production costs!
The reason why this total revenue is so high is because Sugon Technology can produce most of its own mobile phone spare parts and complete mobile phone machines.
At this time, if marketing costs, R&D costs, and transportation and warehousing costs are added, the final profit will definitely plummet to less than 3,000 yuan.
In other words, for a mobile phone priced at 4,999 yuan, Sugon Technology’s mobile phone costs and taxes account for about 1,500 yuan.
Among them, the biggest and most painful expense of 1,500 yuan is the tax cost. The cost of producing mobile phone parts yourself, purchasing some mobile phone parts, and assembling the complete mobile phone are actually not too high.
After all, it is large-scale mass production. The larger and more mobile phone production is, the cheaper it is, and because most of the mobile phone spare parts are produced in-house rather than purchased from others.
Therefore, in this case, the tax cost is naturally very abrupt, accounting for the majority of the 1,500 yuan expenditure.
After all, taxes must be paid after mobile phone parts are produced, 17% value-added tax must be paid after the complete mobile phone is produced, stamp duty must be paid when mobile phones are sold to consumers, and finally there is a 25% corporate income tax...
From spare parts to the complete mobile phone to being sold to consumers, Shuguang Technology pays taxes in every production step...
In the end, this tax cost naturally seems extremely abrupt when compared with the production cost of mobile phone parts and the production cost of the complete mobile phone.
And it is worth mentioning that the higher the profit income of mobile phones, the more severe the value-added tax will be, and the same is true for the 25% corporate income tax. The more you earn, the more taxes you will have to pay.
Therefore, if Sugon Technology sells a mobile phone without counting R&D costs, marketing costs, transportation and warehousing costs, etc., it can probably earn more than 3,500 yuan in revenue.
But if you add in R&D costs, marketing costs, transportation and warehousing costs, the theoretical profit income is only more than a thousand and a few hundred yuan, which is not too different from outside speculation.
But the real profit situation is much more than the theoretical one thousand and several hundred yuan.
Because most of the spare parts and core technologies of Sugon's mobile phones are produced and developed by itself, the profits from mobile phone spare parts naturally belong to Sugon Technology.
In addition, because of the presence of Lin Chen, Sugon Technology seems to have no bottlenecks in its research and development. The research and development speed is very fast and the total investment in research and development is naturally reduced.
In addition, in terms of research and development of many core technologies, because Lin Chen knew in advance what the core technologies he wanted to develop would look like from his previous life, he naturally spent his money wisely without taking any detours.
So in this case, Sugon Technology's R&D costs are really very low to be honest. The cost of developing a core technology is less than one-fifth of that of other companies.
The last remaining ones are marketing costs and transportation and warehousing costs. Needless to say, transportation and warehousing costs are fixed and not high. Sugon Technology is notoriously stingy when it comes to marketing costs.
Although it is not that there is no marketing, compared with other mobile phone companies, the marketing costs are really too small, so Sugon Technology's marketing costs are also quite low.
In this case, the profit that Sugon Technology can actually earn from selling a 4,999 yuan Sugon mobile phone is much higher than that of the Pingguo mobile phone in the previous life.
Even if R&D costs, marketing costs, transportation and warehousing and other costs are added, the real total profit can barely reach about 3,000 yuan.
Of course, the profits of Pingguo Mobile in the previous life were not much worse than those of Shuguang Mobile, because they were able to collect the "Pingguo tax".
The so-called "Pingguo tax" means that as long as software and games using the Pingguo iOS system generate revenue, they will be forced to give 30% of the profits to Pingguo Company, which even includes profits from advertising!
In this case, Pingguo Mobile’s profit from selling a mobile phone may not be as good as that of Sugon Technology.
But after consumers use Pingguo mobile phones for a year or two, the profits Pingguo Company makes from consumers are not much less than Sugon Technology.
Even if consumers use Pingguo mobile phones for a longer period of time, for example, a Pingguo mobile phone will last three or four years.
The profit that can be made by selling a Pingguo mobile phone is far greater than the profit that Sugon Technology can make by selling a mobile phone.
As for why Shuguang Technology doesn't learn from Pingguo Company and also implement Shuguang Tax, it can only be said that it is easier to think than to do.
If you have to find a reason, it is that Sugon Technology is a Daxia company rather than a US company.
But gossip aside, at this time, the company's senior executives heard Li Qianqiang pointed out the profit distribution issue of Sugon S2 smartphone.
They all focused their attention on Rebus and Lin Chen, wanting to see how the profits from the Sugon S2 smartphone would be distributed.
However, facing people's gaze, Rebus thought for a while and then gave a suggestion:
“I suggest setting the profit of the low-end Sugon S2 smartphone at around 1,300 yuan.
This is neither too high nor too low. After all, if the profit is too low, it will not be able to obtain the high valuation when it is listed, and it will not achieve the strategic purpose of seeking a protective umbrella for listing. "
In this regard, other senior executives also fell into deep thought, and then felt that the price was acceptable.
Because from then on, a distinction was made between the production of mobile phone parts and the production of complete mobile phones and the Sugon mobile phone brand.
This also means that in the future, the research and development costs, sales costs, transportation and warehousing costs of the complete mobile phone will all be borne by the mobile phone brand, and the actual profit per unit may be less than about 1,000 yuan.
The remaining profit of 2,200 yuan will be divided between Sugon R&D Center and the soon-to-be-established Sugon Electronics Company.
Sugon R&D Center and Shuguang Electronics, which ultimately took the lion's share of the profits, naturally had nothing to say.
(End of chapter)
