Volume 1 of the Rebirth Legend of Post-80s, Chapter 542 of the Valuation of Spreadtrum? Guokr Mobile is Spreadtrum's largest customer and its largest funder. The research of Spreadtrum's Snapdragon chips is largely proud of the financial support of Spreadtrum. In order to maintain the brand image, Spreadtrum has the exclusive right to Snapdragon chips, but Spreadtrum has the right to use the patents obtained during the research process. However, if Huawei wants to invest in Spreadtrum, many tacit understandings are difficult to maintain. Snapdragon projects can only be independent, roughly Guokr and Spreadtrum each account for 50%. There are also various patent authorizations mixed in between. Huawei's investment in Spreadtrum will inevitably lead to cooperation between patents, so I won't go into details.

The technical direction adjustment of Spreadtrum's chips is also necessary. Snapdragon will focus more on the processing of graphics and images, that is, on the functions of photography, photography, film and television playback and gaming. Spreadtrum Kirin will focus more on the calculation, processing of communication signals on the chip, and the various performances will be more balanced. Of course, many things will not be pointed out directly or used for promotion. The meaning is self-evident. Flawed products always make people uncomfortable. In fact, there is no perfect technology and products at all, and many of them are selected by everyone.

The exhibition of Guokr and Huawei and Nut Mobile can basically ensure the healthy exhibition of Spreadtrum Snapdragon and Kirin chips. As for challenging Qualcomm, there are too many problems. Spreadtrum has more than enough protection, but it is still difficult to implement patent protection for companies using Spreadtrum chips.

In addition to Snapdragon and Kirin chips, Spreadtrum's chip technology in flat panels and TVs has also been much higher, including the chip shipment of feature phones, and the chips of Lianke are also catching up with Lianke. As for the drone main control chips that cooperate with DJI, and the security camera chips that cooperate with Hikvision have also made good progress. The research team of over 5OO people is the largest team in the IC field in China. As for foreign countries, there are more than 3,000 research teams distributed around the world. On the contrary, due to the oversupply, there are not many administrative sales teams.

Spreadtrum's revenue last year was not much, with only more than 30 million soft-girl coins, less than 600 million US dollars. However, sales this year were soaring, shipments rose sharply. In less than half a year, sales exceeded 600 million US dollars, and in 5 months there was nearly 500 million soft-girl coins. I really hope that Qualcomm and Lianke will never react, so that such high-growth good days can last for an additional year and a half. However, there is still some gap with Lianke. Their O9 revenue in 9 is around 2.2 billion soft-girl coins. Although the explosion in this year's smartphone market has little to do with them, the revenue increase is certain. Qualcomm and Lianke will launch TD-based mobile phone chips in the second half of the year, and market competition will intensify.

Lianke's chips are mainly aimed at P systems. Qualcomm and Lianke do not optimize Android and Google android enough, and their power consumption control is not good. In the short term, there is little impact on Spreadtrum. In the long run, Qualcomm's technology and strength can quickly catch up with the chips designed by Spreadtrum.

It should also be due to these issues. It is difficult for Spreadtrum and Huawei to reach an agreement on the price of their investment. How to price a high-growth company is a science. Huawei has no venture capital experience and uses traditional thinking and mainly uses financial data to analyze it. It is almost impossible to get results that satisfy both parties. If you refer to Lianke's market value, it is only more than 100 million soft-grand coins, about 1.5 billion US dollars. If you compare the revenue data, Spreadtrum's valuation is only between 25 and 30 US dollars. However, Zhou Shi's direct investment in it exceeded 1.5 billion US dollars. As for some hidden expenses, if the contract between Shell and Nut, the special care of Singapore's Chartered Semiconductor, various overseas relationships, etc., it is difficult to quantify.

According to the conservative estimate of Spreadtrum Communications, the revenue scale this year can reach 1.2 billion Soft Girl Coins. Based on a profit margin of about 35% and a price-to-earnings ratio of about 15 times, the valuation can barely reach 100 million US dollars by the end of the year.

"Mr. Zhou, this is not OK. The acquisition of Spreadtrum is only 500 million US dollars. You will have a valuation of 100 million US dollars in less than two years. No matter how rich Huawei is, it will not be used like this." Ren Zhengfei found Zhou Shi and negotiated again.

If Huawei's current revenue and profits are compared with the same industry, with a 20-fold price-to-earnings ratio, Huawei's market value will probably not exceed US$5.5 billion. Guoke's valuation scale will not be much worse than it. Of course, Guoke has no relationship with their cooperation. The main reason is that Huawei wants to have a certain say in Show News. If the investment is less, the effect will not be good, and if the investment is too much, it will affect its own show.

"You have also seen that the smartphone industry is booming, and the net profit margin of the chip industry is over 35%. Spreadtrum, which has the lead, has achieved explosive growth. The gap between us and Qualcomm in the mobile chip field will not be very big. Moreover, the increase in revenue is enough to support such valuations. Otherwise, we bet, set several goals, and calculate the valuation according to the specific revenue scale at the end of the year?"

Of course, Ren Zhengfei didn’t want to. There are many articles to do with the two emerging mobile phone companies, fruit shells and nuts.

"We can't accept such a valuation." Ren Zhengfei

"Since that's the case..." Zhou Shi slowed down, Ren Zhengfei was shocked. Didn't he want to cooperate?

"Since that's the case, we will divest the asset of Snapdragon! I can't think of any other way except this." Zhou Shi, although he knew that he wanted to cooperate with Huawei, Guoke and Spreadtrum had always wanted to separate this asset, but how to speak out was a lesson. Now, the high valuation is enough to discourage Huawei from this.

"Spanish News Snapdragon?" Ren Zhengfei hesitated. This is the chip that Guokhe mobile phones mainly use. The bonus of Guokhe brand naturally makes it have the nature of a high-end chip.

"It's OK, but Huawei wants to have the right to purchase Snapdragon chips." Ren Zhengfei

"This issue is very complicated. Even if you agree to Huawei's procurement requirements, there will definitely be many restrictions in order to maintain your brand image." Zhou Shi did not directly refuse

"It's understandable if there are restrictions!" Ren Zhengfei

"Then let them continue talking!" Zhou Shi

The most profitable under Spreadtrum is the chips of Spreadtrum Snapdragon, and other expensive research projects will be left at Spreadtrum, which will almost remove half of its market value.
Chapter completed!