In May 1992, Konka Electronics released its annual report. Last year, its revenue exceeded 15 billion yuan, and its after-tax net profit exceeded 3 billion yuan. At the same time, the company announced a cash dividend of 1.5 billion yuan (before tax).

At the same time, shortly after the annual report was released, the quarterly report for the first quarter of 1992 was released. The revenue in the first quarter reached 4.3 billion yuan, and the profit in a single quarter reached 800 million yuan. Since its listing, the profits have been in the five consecutive quarters, both year-on-year and month-on-month growth.

After being stimulated, Konka Electronics' stock price can only be said to have soared all the way.

Originally, when Konka Electronics went public, its market value was 12.5 billion yuan, which was disliked by market investors. Because, for speculators, large companies have a big plate and are difficult to speculate, so they naturally hate such companies. At the same time, the A-share market has not yet formed a value investment atmosphere based on corporate fundamentals.

Well, in a strict sense, there is no value investment atmosphere in the world. In any country, the proportion of real value investors does not exceed 5%. It is precisely because value investment is rare that everyone wants to prove that they can achieve more returns than buying and holding companies for a long time operation. Although... in the long run, these self-righteous gamblers often lose miserably, and few gamblers who can outperform the index for a long time. Not to mention those excellent companies that outperform better than the index.

The so-called bottom was made by a fool. Last year, Konka went public for 12.5 billion yuan, and its price-to-earnings ratio was about 10 times. However, the market actually sold wildly, resulting in the listing of new stocks hitting a low. The lowest stock price was only more than 3 yuan, the lowest market value exceeded 4 billion yuan, and the lowest price-to-earnings ratio was close to 3 times the price-to-earnings ratio.

Then... Well, it took more than a year to prove that those people are stupid. Konka Electronics, with the support of the new entrepreneurial department, has the TV and monitor flying together, and its revenue and profits continue to grow. The profit in the early years of listing was only over 1 billion. Now, the annual net profit has exceeded 3 billion!

Since the stock price was only more than 3 yuan, it has been rising for more than a year and has continued to rise. In January 1992, it has returned to more than 10 yuan per share. With the release of last year's annual report and the first quarter of this year's report, the stock price has soared, 15 yuan, 20 yuan, 25 yuan, 30 yuan, 40 yuan... It has set new highs all the way!

By mid-May, the stock price had stabilized at over 40 yuan, and the market value had exceeded 50 billion yuan.

The current general manager of Konka Electronics is not the general manager sent by OCT, but because Lin Qi has more equity, so Lin Qi makes Lin Zhongqiao of Ganghua Electronics the general manager.

Lin Zhongqiao was known as the TV king in Hong Kong in the 1980s. It was once the largest TV manufacturer in Asia except for Japan's TV brands. However, in history, Lin Zhongqiao converted the production line into equity and included Konka's equity. After Konka went public, Hong Kong China continued to sell Konka's equity and withdrew from the TV manufacturing industry. Later, although Hong Kong China still engaged in some electronics industries, it was not a climate.

At the same time, because Konka Electronics' major shareholder OCT is a real estate business, it has a disagreement with Konka's manufacturing industry. It often buys Konka's factories for building buildings and development. Its mind is not on manufacturing, which led to Konka's fall from the altar, similar to Changhong, falling from a first-tier giant to a second- and third-tier brand.

However, Konka is now a subsidiary of the new entrepreneurial company. Although OCT has some equity, it does not dominate. Therefore, Konka's plan has always been to invest in technology and production. At present, Konka Electronics' business is getting stronger and stronger. TV, monitor and other businesses can already compete with Japanese first-tier brands. The domestic market has basically squeezed out Japanese manufacturers. In the international market, Japan's market share is gradually regressing, but South Korea's Samsung, LG and other companies are constantly snatching international market share.

But Konka is not afraid. The international market is fighting little by little. TVs and monitors are constantly watching the pressure of Japanese, Korean, European and American brands, growing against the trend.

Because the continuous market-oriented battle has trained a strong iron army. When it comes to that country, strategies will be formulated according to local conditions.

"Boss, I heard that you had hit the new entrepreneurial newsletter before, and I was so scared that I thought you were hitting me." Lin Zhongqiao said diligently after Lin Qi came to Konka Electronics headquarters.

"Brother Lin Zhongqiao is a veteran in the shopping mall and I don't need to hit me. In addition, although technical investment is still necessary in terms of TVs, monitors, etc., the more important thing is sales and branding. I think Konka is doing very well in this regard." Lin Qi smiled, "Of course, technology also needs to be invested in. Especially in the choice of technical routes."

"The choice of technical route?" Lin Zhongqiao pondered.

In fact, before the technology encounters disruptive innovation, it mainly relies on cost, brand, sales, etc. to gain advantages. However, once the old technology is outdated and the new technology has different technical routes, many companies are in a very difficult situation! Because if the choice is wrong, it will be seriously left behind and will also cause huge investment losses.

When CRT display technology encountered a bottleneck, Lin Qi made a decision to choose plasma technology for the new entrepreneurial display and TV panel.

The reason why plasma is chosen is mainly because the threshold for upgrading CRT to plasma is low. At the same time, the key indicators such as plasma resolution, color saturation, contrast, etc. have been significantly improved compared to CRT.

But... history has proved that plasma technology will begin to encounter bottlenecks like CRT in a few years. After the 21st century, major mainstream TV and display manufacturers have basically abandoned plasma and selected LCD display technology.

The plasma camp will be completely defeated in the future. The main factor is that the plasma technology will gradually become worse than LCD when it reaches the resolution of 1080p. When the LCD display begins to develop towards higher resolutions such as 2k, 4k, etc., plasma stops at resolutions around 1080p, and has not been able to keep up with the technological development speed of LCD for a long time.

At the same time, the plasma weight is very bulky and difficult to apply on terminals such as laptops, mobile phones, handheld machines, etc., further widening the gap between the two.

Therefore, the issue Lin Qi discussed with Lin Zhongqiao this time is that the next Konka Electronics will not blindly expand its production capacity and market share in the plasma TV and display business. It is enough to maintain its current production capacity and share. At the same time, it will also be equipped with some 1080p high-end plasma TV and display.

Therefore, when the national structure reaches a certain level, no one will believe that the little white rabbit who wants to pretend to be harmless. Because as long as you rise and you want to live a good life, it is a threat to others. It is precisely because of this that a country with large size that develops to a certain level must implement a domineering route.
Chapter completed!