Reborn Tokyo Golden Age

Although Baichuan Mutual Entertainment's profits this year are unexpectedly large, manufacturing is still the mainstream at the current stage.

This is affected by the economic development model of this era. Even the protagonists of Wall Street are mainly manufacturing enterprises represented by high-tech.

As mentioned earlier, Shirakawa Energy made a profit of more than 4 billion, and the LCD factory made a profit of about 15 billion.

Another semi-independent optical disc factory, with the vigorous development of CD records this year, has achieved a financial surplus for the first time.

The profits of the disc factory mainly come from the OEM for other record companies, as well as part of the CD-ROM patent fees.

In the more than a year since the CD player came out, the entire neon market has produced about 45 million CDs.

In its heyday, the output of LP, that is, vinyl, was more than 100 million copies. At present, the scale of CD records is about 50% of that.

Although the scale of CD records is not as good as that of vinyl for the time being, Shirakawa Electric is optimistic that CDs will overtake in at most two years.

Its portability and cheapness are destined to make CDs far more popular than vinyl in the future.

As for Neon's 45 million CD records this year, at least 20 million of them came from Shirakawa Electric's disc factory.

The foundry fee for a disc is about 200 yen, and after excluding various costs of 30 yen, the final profit for each disc is within the range of 150 to 170 yen.

The total of 20 million sheets is a profit of 3.2 billion yen. As a new factory for one year, this profit is actually very good.

CDs are also high-volume products. With the popularity of CDs and the continuous improvement of production technology, its profits will continue to grow for at least 10 years.

As for the output of CD-ROM because of the popularity, it is only a few million pieces at present. Counting the patent fee, all the profits add up to only 200-300 million yen.

But next year with the birth of rewritable CD, presumably it will be more widely used.

Another product used in conjunction with CD-ROM - optical drive, its sales in Neon's homeland are generally only more than 50,000 sets, and most of them are 2x speed versions.

But like a TV watch, flowers bloom inside the wall and fragrance outside the wall. For the business version alone, Beimi has digested more than 300,000 sets.

The regular version for individual users has also sold more than 60,000 sets. Because optical drives are so lucrative, the cumulative returns on those sales are astounding.

The profit per unit of the normal version is around $150, the business version of the 2x speed version is $450 per unit, and the 4x speed version is more than $1,000 per unit.

The cumulative sales volume of 410,000 CD-ROM drives brought Shirakawa Electric a profit of 275 million US dollars.

So don't look at the mediocre sales of optical drives, but the ability to attract money is more than twice that of LCD, battery factories, and optical disk factories combined.

In addition, patent fees are the same as optical discs. This year's income is very small, but next year will definitely usher in a big explosion.

Shirakawa Electric's other products, Walkmans and earphones, have increased by about 20% compared with last year, totaling about 200 billion.

CD players, speakers and last year's sales are the most obvious. After all, sales for a whole year are of course much more than last year's sales in 2 months.

Especially for Beimi market, portable CD and active speaker combo, that is a must for parties.

The combined products of local and Beimi have sold more than 3 million sets. Counting the single-sale part, desktop CD player, car CD player, and VCD player, the profit of this part is more than 220 billion yen.

In the audio-visual field, Shirakawa Electric has a total profit of 420 billion yen, or 1.68 billion U.S. dollars.

This year, due to the addition of products such as CD players and speakers, Baichuan Electric's profit has increased significantly.

In addition to the processing fees for handhelds, FES game consoles and game cassettes, Shirakawa Electric also has a profit of 57 billion yen.

The game console hardware part is 57 billion yen, and the audio-visual business is 420 billion yen, totaling 477 billion yen.

This is the net income of Shirakawa Electric in 1983, which is 1.9 billion US dollars.

Compared with last year's more than 800 million US dollars, it has more than doubled. The main reason is that there are new products launched one after another.

Facts have proved that uninterrupted R\u0026D investment, although costly, has greater returns.

But since the company is making money, dividends are justified.

This is a common way of playing in this era, especially when the manufacturing industry has entered the golden age of neon.

As for many companies in later generations, even if they are profitable, they will not pay dividends for several years.

That is because they consider the value of the stock. Not paying dividends means that the net assets of the company will increase, so the rise in stock prices is also a matter of course.

When the volume is large enough, a slight rise in the stock price will bring ten times and a hundred times the income.

Then after a few years, when the stock price has risen to a certain level, the major shareholders will reduce their holdings of shares, and the money they make from changing hands is equal to the dividend.

This is the reason why many companies do not pay dividends when they make profits. After all, it is the money from the stock market that is harvested.

Another reason why companies do not pay dividends is mostly because they are in a period of development and growth.

It needs to invest the profits in the next year's development, and then continue to expand the scale to generate more profits.

However, these two methods are not applicable to Baichuan Electric, because the shares of Baichuan Electric currently held by Baichuan Holdings are already the minimum requirement for controlling rights.

Even if there is no dividend and the stock market value has risen sharply, Baichuan Holdings has no way to reduce its holdings of stocks.

Because once the stock is sold, the shares in the hand will be reduced, which will threaten its absolute control.

As for selling it and then buying it back, the left hand is the right hand. Then why bother, and pay an extra tax.

In addition, regarding the development of the next year, Shirakawa Electric will spend less than US$1.9 billion anyway.

That being the case, why no dividends?

Therefore, after retaining 10% of the profits, R\u0026D expenses and other project expenses for the coming year, the rest will be selected for dividends.

Of course, there are many forms of dividends, and cash dividends and bonus shares will be used as a means of dividends.

If Baichuan Holdings takes cash, it will have an income of 870 million US dollars.

As for the distribution of cash dividends or bonus shares for retail investors, it is fine. Of course, due to the increase in the total number of plants, the stock price may fall.

However, the total share capital is still increasing, and for retail investors, this can be regarded as an increase in the number of stocks in their hands.

And in order to guarantee their own controlling rights, Baichuan Holdings has many leather bag companies.

The shares repurchased from the stock market in their hands are enough to guarantee their own controlling rights.

This is probably the operating situation of Baichuan Electric this year, and the rights and interests that Baichuan Holdings can obtain.

Of course, the specific operation will have to wait until after the financial settlement in March next year.

"As for Baichuan Electric's products next year, we might as well try products such as electronic dictionaries, projectors, and monitors."

For the future development route, the main direction Bai Chuanfeng considers is diversification.

The richness of the product line will not only bring additional profits, but also increase the company's ability to resist risks.

"Eh, electronic dictionary, monitor?" Both Hasegawa and Yasuda showed rather surprised expressions.

In this regard, Shirakawa Electric has really not been involved much, and it sounds like the market is also full of uncertainties.

Whether it is a Walkman or a CD player, the reason why Shirakawa Electric can quickly win the market.

Mainly rely on what? I have what no one else has!

In layman's terms, these products were not available in the market before the launch of Baichuan Electric, or they just appeared.

Because it has taken the lead, no matter how bad it is, it will stand on the same starting line with everyone, so Baichuan Electric can rise so fast.

However, for products such as electronic dictionaries, projectors, and displays, the former is still a novelty, while the latter two are not rare.

If you enter this track, the market competition is fierce, and you don't know whether you can gain a firm foothold and make a profit.

But different from their doubts, Bai Chuanfeng nodded with certainty, "That's right, they are the key projects of Bai Chuan Electric next year.

Of course, the products I mentioned are somewhat different from what you usually see. "

"Eh?" Now it's not just Hasegawa and the others, the others are also surprised.

What else can be played with projectors and monitors?

"The technology of the few products I'm talking about should focus on the application of LCD. The STN and TFT newly developed by SIC are very remarkable things."

Hearing what he said, everyone became even more curious, because they had never seen projectors and displays using LCD technology.

"Think about it, isn't it very impactful to make the CTR monitor with a big butt into a thin tablet?

Be bolder, and the TVs of the future will become like this. They no longer occupy a huge place, and they can be picked up with one hand. What kind of scene will that be? "

The more Bai Chuanfeng said, the more excited everyone was. Isn't this more sci-fi than a sci-fi movie?

But is such a technology really achievable? Everyone looked at each other in blank dismay, but at the same time, they were somewhat skeptical.

Seemingly seeing their doubts, Bai Chuanfeng smiled easily.

"Try it, start with the simple one, the electronic dictionary is the easiest to do.

As for high-definition LCD projectors and monitors, take your time.

But they will definitely be one of the main products of Shirakawa Electric in the future. Please let go of your imagination and don't let your creativity be limited by inertial thinking. "

"Hay!" This advice shocked the hearts of everyone who knocked again.

Yes, the reason why Shirakawa Electric is leading the way. Don't you rely on being one step faster and being a little newer than others?

"In addition to these, we can also try it on pagers. Now young people like it, and the future prospects cannot be ignored."

What Bai Chuanfeng really wants to do is not a pager, this can only be regarded as a transition.

What he wants is the accumulation of communication technology, which will shine brightly in the future.

"In short, the application of LCD technology is the top priority, and our ultimate goal is - notebook computers!"

"Laptop?" Everyone was confused again.

Because they have never heard of this word at all, let alone what a laptop is.

Bai Chuanfeng waved his hand, "A portable computer with an LCD screen, that's all.

Just like the difference between a desktop CD player and a portable CD player, of course this is a future goal, and there is no need to rush for success at this time. "

Oh~, that's it. When he said this, everyone could almost understand it.

It is another product with miniaturization as the improvement direction, but this time it is replaced by a computer.

This is also one of the goals in the next few years. The world's first notebook computer came out in 1985, and Shirakawa Electric will also work hard.

Chips, circuit design, and other hardware, these are not technically difficult for Shirakawa Electric.

What takes time is putting these things together into a laptop that works smoothly.

Bai Chuanfeng is going to skip the desktop and move towards the laptop.

The three major players in the desktop market, NEC, Fujitsu, and Sharp, can't compete, so they can only find another way.

As for communication, let's talk about accumulating technology first.

After the situation of Shirakawa Electric, what remains is another big money sucker, SIC.

As Neon's only chip design company with independent intellectual property rights, SIC's name has become more and more famous.