While helping his boss in Xiangjiang assemble telephones, Hou Weigui realized that the telephone communication industry was highly profitable and the domestic telephone communication market was developing rapidly with great prospects. So he fought against all opinions and organized scientific and technical personnel to develop a small analog program-controlled switch. At the end of six years, the Pengcheng Zhongx Research Institute was established.
In October 1987, Pengcheng Zhongx Research Institute lived up to its expectations and successfully developed the ZX-60 analog program-controlled switch. It passed the demonstration of the Posts and Telecommunications expert group, applied for the company's invention patent, and obtained network access permission from the Ministry of Posts and Telecommunications.
Against all odds, Hou Weigui borrowed 2.5 million yuan from the bank using the assets of Pengcheng Zhong A small analog program-controlled switch production line was introduced.
In Pengcheng Special Economic Zone, where time is of the essence, it only took two and a half months for Pengcheng Zhongx Semiconductor Company to go into production from the introduction of the production line to employee training.
At the end of April, the first ZX-60 analog program-controlled switch came off the production line. The unit price is 980 yuan, and each set is priced at 58,000 yuan.
With the unit price of domestic digital program-controlled switches currently being around US$500, there is still a large domestic market for analog digital switches.
The company plans to earn back the cost of the purchased production line by selling fifty sets, and then use the money earned to hire scientific researchers to develop the ZX-500 digital program-controlled switch based on the ZX-60 analog program-controlled switch.
"Mr. Hou, I have opposed the company's development of analog program-controlled switches from the beginning. The company should concentrate on processing trade with supplied materials. Now there are five analog program-controlled switches under the Shuguang brand: SG-200, SG-100, SG-50, SG-20 and SG-10. The unit price of the switch model is only 588 yuan. How can there be a market for the ZX-60 analog program-controlled switch we produced? The company has taken on a loan of 2.5 million yuan, and the loan interest for one year is more than 200,000 yuan. Yuan, Mr. Hou, do you have any good ideas?"
Deputy General Manager Zhou Yunxing came to the General Manager's office early in the morning, with the intention of provoking an investigation. The joint venture company's business scope did not include the production of program-controlled switches.
Another deputy general manager, Huang Jiqiang, was sitting in the general manager's office, also worried.
"Vice President Zhou and Vice President Huang, although the launch of Shuguang brand SG-200, SG-100, SG-50, SG-20 and SG-10 will squeeze our profit margins, the domestic analog program-controlled switch market is still huge. Very soon, the company's products are sold at a price of 500 yuan per unit, with small profits but quick turnover. I am personally responsible for the production and sales of analog program-controlled switches. Vice President Huang is responsible for the production of electronic watches, electronic keyboards and telephones, and Vice President Zhou is responsible for electronics. Sales of watches, electronic keyboards and telephones.”
Hou Weigui stayed up all night, realizing the rapid changes in the market. While seizing the market, he became more determined to speed up the research and development of the ZX-500 digital program-controlled switch.
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Pengcheng, Hua W Technology Company.
"Mr. Ren, Pengcheng Shuguang Communication Technology Company's move is too cruel. Our agency business will be difficult to do!"
Early in the morning, Ji Ming, the company's financial manager, and Qi Ping, the human resources manager, walked into the office shared by the six partners together, feeling worried.
"Although digital program-controlled switches are the development trend in the future, there are still many units and enterprises in the country that cannot afford digital program-controlled switches. There is still a huge market for analog program-controlled switches, but our profits will be greatly reduced. Agents of analog program-controlled switches will not be able to afford them." In the future, we must also learn from China .”
After Ren Zhengfei saw the advertisement of SG-1000, the unit price of Shuguang brand SG-200, SG-100, SG-50, SG-20 and SG-10 was only 588 yuan. He was greatly shocked. Didn't have a good night's sleep and are thinking about coping strategies?
In 1987, Ren Zhengfei was forced to resign from Nanyou Group. Together with five partners including Ji Ming, Qi Ping, and Yao Ping, they rented a house in Nanyou Community with 21,000 yuan, registered with the Industrial and Commercial Bureau, and founded Found Hua W Technology Co., Ltd. with a registered capital of 20,000 yuan (the minimum requirement for starting a company in Pengcheng Special Economic Zone, and 50,000 yuan in general cities).
Ren Zhengfei serves as the company's president, and the other five partners are managers.
The six people were crossing the river by feeling the stones. At the beginning, what made money in the market and what did the company sell?
At the beginning of the year, by chance, Ren Zhengfei was introduced by a director of the Rural Language Department of Liaoning Province. Hua W Technology Company began to act as an agent for HAX switches produced by Xiangjiang Hongnian Company. It bought analog program-controlled switches from Xiangjiang Hongnian Company and then sold them to Domestic county-level post and telecommunications offices, towns, mines, etc.
There is no company in China that can independently produce digital program-controlled switches!
A set of 40-door analog program-controlled switches cost 24,000 yuan and were sold to customers for 40,000 yuan, with a gross profit of nearly 70%.
As long as you can get the goods, you can find the next home immediately!
There are more than 200 agency companies in China like Hua W Technology Co., Ltd. engaged in this second-hand business, making a lot of money!
Hua W Technology Company seems to have discovered a gold mine and has recruited eight more employees. Everyone is very motivated. This year's goal is to achieve a turnover of 2 million yuan and a net profit of 500,000 yuan.
The unit purchase price of the HAX analog program-controlled switch agented by Huaw Technology Company is 600 yuan, and the unit selling price is 980 yuan.
The unit price of Shuguang brand SG-200, SG-100, SG-50, SG-20 and SG-10 is only 588 yuan!
Once Shuguang brand SG-1000, SG-500, SG-200, SG-100, SG-50, SG-20 and SG-10 open up sales in the domestic program-controlled switch market, not only will Hua W Technology Company be required to act as the agent for HAX analog program-controlled switches As a result, more than 200 domestic companies that represent foreign program-controlled switches had to change careers!
The company that produces analog program-controlled switches in Xiangjiang will go bankrupt early!
It’s a lie that President Ren Zhengfei is not in a hurry. He has always been optimistic about the development prospects of program-controlled switches. He has already made contact with Guo Yongping, a master’s student in computer science at Huazhong University who will graduate this year. As soon as he graduates, he will invite him to Pengcheng to host research simulations. Program-controlled switch.
Pengcheng HuaW Technology Co., Ltd. is a private enterprise that has just been established less than a year ago. It has a registered capital of only 20,000 yuan. It does not even have a formal office space and has no technical personnel specialized in communications. Experts in the domestic program-controlled switch industry look down upon it. Gu, only freshly graduated college students and master's students majoring in computer and communications can be invited to start their own businesses.
Ren Zhengfei also learned from friends that Pengcheng Shuguang Communication Technology Co., Ltd. is a subsidiary of Shanghai Shuguang Communication Technology Co., Ltd., Shanghai Shuguang Communication Technology Co., Ltd. is a subsidiary of Jiangcheng Taobao Electric Co., Ltd., and Jiangcheng Kunpeng Software Co., Ltd. is also a subsidiary of Jiangcheng Taobao Electric Co., Ltd. of subsidiaries.
A medium-sized digital program-controlled switch production line imported from NEC by Pengcheng Shuguang Communication Technology Co., Ltd. cost nearly 30 million yuan and has strong strength.
Jiangcheng Kunpeng Software Company is ranked second in the domestic personal computer software industry, and no company dares to be ranked first!
The Kunpeng microcomputer operating system has been registered with the Electronics Promotion Leading Group of the National Academy of Sciences.
B Jing Shenhou, the boss of Jiangcheng Taobao Electrical Appliance Company!
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Shanghai and Haihai.
"Old Liu, have you seen the TV commercial of Sugon SG-1000? The digital program-controlled switch developed and produced by Ye Mingxin and others has entered the market, and the Shi Institute is lagging behind!"
Li Yuan, director of the First Institute of Posts and Telecommunications Science and Technology, invited Liu Ximing, chief engineer of the "medium and large capacity digital program-controlled switch" development expert team, to his office as soon as he arrived at work in the morning.
