When asked about the production capacity issue, Qin Feng replied in an orderly manner: "Currently, we have reached a cooperation with BYD in the production of mobile phones and handed it over to BYD for OEM. The production efficiency can reach an annual output of 10 million units. We will next We have received orders for 8 million units, started production more than a month ago, and currently have shipped 1.5 million units."
This efficiency can be said to be quite fast, which also reflects the manufacturing capabilities of Greater China. However, Fang Hong made a rough calculation. According to this production efficiency, by the press conference in March, the number of products leaving the production line will not exceed 4 million. department.
Fang Hong said: "Production capacity is not low, but it is still too slow and too little. We must have an inventory of more than 6 million units by around March, and orders can be increased to at least 20 million units."
His words also shocked Qin Feng, and he couldn't help but said: "20 million units? Is the risk too great?"
"What? Are you so unsure of the products you open?" Fang Hong glanced at Qin Feng, then said with a smile: "According to the current production capacity, the inventory before and after the March press conference will be 4 million units. Is this enough? Let’s make a bet. Believe it or not, after this mobile phone is launched, the market will eat up the 4 million production capacity within a month or two.”
Qin Feng couldn't help but be stunned. The sponsor's father was very optimistic about the sales of the first product!
Fang Hong is indeed very optimistic, because in addition to the product itself, he also knows that although iPhone 4 will be released at the end of June this year, the launch date in the Greater China market will have to wait until the end of April 2011.
The time window was staggered by a full year.
In other words, during the one-year window when iPhone 4 is not launched in the domestic market, Xingyu Technology’s S1 has almost no competitors. As for domestic brands, there are no domestic brands that can compete. Rebus’ Xiaomi has not yet been launched. It was established, not surprisingly, in March, and now it is the end of January.
It is no exaggeration to say that this year is a golden window period for Xingyu Technology. If it operates well, it can fully rely on this year to build brand awareness, and it will use Apple as a stepping stone to debut.
After a while, Qin Feng said helplessly: "I'm afraid it's too late for production capacity..."
Fang Hong couldn't help but smile and said: "No, no, it will definitely be in time. As long as the money is enough, BYD's OEM will work 24 hours a day without stopping, and by March, anything can be done for you." The production capacity is at least 5 million. Don’t underestimate our country’s manufacturing capabilities. Go and talk to them. We want production capacity and let them ask for the OEM fee.”
Speaking of which, Fang Hong added: "Apple's iPhone 4 was released at the end of June, but it will take at least a year before it is launched in mainland China. In other words, this year's vacuum period is for Xingyu Technology to quickly occupy the market and take the lead. In the golden window of advantage, mobile phone shipments are above all else, and we must try our best to capture the first batch of users during this year, the more the better.”
Qin Feng couldn't help but nodded, obviously agreeing with the strategic thinking of the sponsor's father. Based on the bad news about Apple brought by the sponsor's father, many of the company's original plans had to be adjusted. He also quickly realized that 2010 What an important year this year is for Xingyu Technology.
After a while, Qin Feng said hesitantly: "I'm afraid this will require a lot of funds."
"Then start the B round of financing as soon as possible. I will give you 5 billion in funds, and BYD will let them hold the accounts receivable first, and agree that Xingyu Technology will complete the settlement of accounts receivable in one year. , I, Qunxing Capital, will guarantee you that if the account cannot be paid when it is due, ask BYD to come to me, Qunxing, to pay the bill with the note." Fang Hong said simply: "I don't believe that BYD can find someone who refuses to accept the payment. The reason for this order, I don’t believe they can’t produce five to six million units.”
Qin Feng was also stunned when he heard this. He was indeed the father of the financial sponsor. He was so arrogant that he had no friends, not to mention his constant support for Xingyu Technology.
"How much equity do you want?" Qin Feng asked, and he was straightforward. Frankly speaking, it was difficult for him to value Xingyu Technology now. With a massive financing of 5 billion yuan, how high a valuation should he give? ? There's really no way to evaluate it.
Including other resource supports of Qunxing Capital, such as guarantees for Qunxing Capital, these are all intangible values, and logically they should be priced at a premium.
Fang Hong suddenly said bluntly: "In the current situation, I, Star Capital, have given you a series of support. It is not an exaggeration to say that I treat Xingyu Technology as my own son. Conventional valuations do not make much sense. Regardless of what Star Capital wants you to do, No matter how much equity you have, you won’t suffer any loss.”
Qin Feng smiled and nodded: "Indeed."
"Since he is his own son, let's just forget about it. Those who achieve great things don't stick to trivial matters." Fang Hong turned to smile and said, then turned to look at Tian Jiayi and asked: "How much equity does Qunxing currently hold in Xingyu Technology?" How many?"
Tian Jiayi immediately answered: "After the previous round of financing, Star Capital's total share capital of Xingyu Technology has reached 44%."
Hearing this, Fang Hong nodded, turned to look at Qin Feng and said neatly: "Increase it to 80%, and you won't increase your holdings in the future. You and your team will divide the rest!"
Qin Feng immediately responded concisely and concisely: "Okay!"
The two parties reached a consensus at the speed of light. As Fang Hong said, those who achieve great things do not stick to trivial matters, and historical opportunities are fleeting. At this juncture, it is time to calculate a few percentage points of equity ratio, compared with making the company a world-class company like Apple. The tech giants are hardly worth mentioning.
Now, going to the extreme few percentage points of equity ratio has caused the company to miss opportunities. It could have reached a trillion-level scale, but it can only reach a hundred billion-level scale. This is like picking up sesame seeds and losing the watermelon.
Qin Feng is not worried, because Xingyu Technology has two one-vote vetoes, one is in the hands of Stars Capital, and the other is in the hands of Qin Feng, and there will never be a third one-vote veto, Stars Capital will not do this, and neither will Qin Feng.
Two are enough. This means that the two sides of the venture capital have reached a balance. Your founder should not try to cheat the investors, and the investors should not try to kick the founder out. It is not good for everyone to hurt each other. The only way is to become stronger and bigger together. Consistent goals that serve the interests of both parties.
Tian Jiayi on the side was also writing a memorandum on the B-round financing matters reached by the two parties.
At the end, Qin Feng said in an orderly manner: "With this money, many things can be accelerated, including the establishment of offline direct-operated stores. Originally, I wanted to focus on e-commerce channels."
With such strong financial support from the sponsor's father, it would be over. Qin Feng also realized that the most precious thing in Xingyu Technology now is time, and he also saw that the sponsor's father also recognized that time is more precious, and was willing to Pay more money to get more time!
Qin Feng continued: "I strive to quickly establish no less than 70 offline official stores across the country on the day of the press conference, covering major urban areas across the country. Fortunately, the official flagship store started early We are working on it, and there are currently five official flagship stores in the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen and new cities. Although it is a bit late to be operational by March, it is not a big problem."
Isn’t it true that the father of a financial investor has spent a huge sum of 5 billion to come here? The decoration team can be doubled or even multiplied several times to catch up with the progress.
Fang Hong nodded, played with the prototype in his hand and asked, "What's the price?"
Qin Feng took a look at the prototype in his hand and said: "For the first generation product, we have prepared a standard version and an enhanced version. The standard version is s1, and the enhanced version is s1-plus. The difference between the two is that the one you have is the standard one." The original version has a 4.0-inch screen, while the enhanced version has a 4.3-inch large screen.”
In the current year of 2010, 4.0-inch is definitely a large screen, and 4.3-inch is a very large screen. You must know that the screen size of iPhone 4 is only 3.5-inch in design.
The future trend is for screens to become larger and larger. There is another benefit to large-size screens, especially for Xingyu Technology, which has been established for a short time. Because the screen size is larger, the size of the mobile phone will also become larger, and the internal space will expand. .
The space inside a mobile phone is precious. To a large extent, the smaller the size of the mobile phone, the higher the technical requirements. Making the screen larger can also alleviate the disadvantage of Xingyu Technology's current lack of technical reserves to a certain extent.
Qin Feng continued: "The standard and enhanced memory versions are divided into three models: 8gb, 16gb and 32gb. They do not support memory expansion and the battery is not removable, but they support dual-SIM dual standby."
Without expanded memory, the space is really limited, and it is also to make up for the technical shortcomings, because the reading and writing of the expanded memory card will affect the smoothness of the phone, thus affecting the user experience.
However, supporting dual SIM card and dual standby is completely in line with the habits of domestic consumers. Qin Feng has not considered the international market at all now. Stabilizing his own basic market is the first priority.
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