"First Financial Daily" issued two articles in a row today to analyze the impact of Shenzhou Computer's failure on the GEM and the underlying reasons behind it. Does the low-cost and low-cost OEM model represented by Shenzhou not keep up with the current trend?
Shenzhou Computer low-cost mode Trek: sweeping goods manufacturing low-cost products Shenzhou Computer founder and chairman Wu Haijun may not have thought that his own 10 years ago set the low-cost model for the Shenzhou computer, in 10 years after the company actually turned into a gem One reason.
On the evening of March 22nd, the China Securities Regulatory Commission's issuance and review committee announced to the public that Shenzhou Computer's GEM listing application had not been approved. Previously, Shenzhou Computer had two unsuccessful listings.
"(March) on the 22nd day they (Shenzhou computer executives) also said that there will be no problem at all." An insider close to Wu Haijun told the "First Financial Daily" that Shenzhou Computer lost this opportunity and will be listed in the future. There are not many opportunities, because overseas capital markets do not feel bad about the concept of manufacturing in China.
The general manager of a computer hardware company pointed out that from the development history of Shenzhou Computer in the past 10 years, this type of market expansion mode that most computer manufacturers disdain is indeed one of the survival techniques in the computer industry, but there are also fatal flaws. . Products lack market pricing power and can only become market followers or chasers. In the transition period of today's computer industry, the future market development space of this model has great limitations and uncertainties.
Sweeping goods to manufacture low-priced products "As early as five years ago, the computer market had entered the era of low profit." A domestic middle-tier PC maker yesterday told this reporter that the reason why Shenzhou Computer has been able to maintain a low-price signboard in the era of meager profits, one by In the international computer market sweeping goods and inventory accessories, and second, the use of the country's export tax rebate policy.
Shenzhou Computer's prospectus (draft) shows that from 2008 to 2010, the tax incentives, including export tax refunds, obtained by Shenzhou Computer accounted for 92.07%, 16.78%, and 25.12% of its net profit, respectively. However, the Shenzhou Computer prospectus on the practice of sweeping goods, given the "production according to supply" theory.
Shenzhou Computer stated that the company keeps abreast of the market trend of computer key components. When certain components cause prices to drop due to various reasons (generally lacking supporting product support), they will timely purchase and develop complementary products to form the uniqueness of Shenzhou Computer. The product update speed and price advantage.
In the third quarter of 2009, Shenzhou Computer purchased a batch of 13.3-inch LCD screens from the market. The specifications of the screen were rather special. It had previously been specially supplied to Apple computers. Due to Apple's product line adjustment, orders were cancelled and no longer. Procurement, while Other companies do not have products suitable for the screen, causing the screen to be sold at low prices because of the backlog. After Shenzhou Computer purchased, it developed an elegant A300 series laptop that can use this screen. The reporter found on the Internet that the price of the notebook was less than 3,000 yuan, and the price was more favorable than that of other brands.
"Actually, Shenzhou Computer's example in the prospectus is to illustrate the reliability of its core components." The general manager of the above-mentioned hardware company pointed out that most of the inventory components are outdated components, and some have "not fatal" quality defects. This has become one of the reasons for the low price of Shenzhou Computer's products.
Wu Haijun's history of entrepreneurship In fact, Shenzhou Computer's low-cost survival technique also comes from Wu Haijun's more than 16 years of professional history in the IT industry.
In the early 1990s, after graduating from Southeast University, Wu Haijun moved south to Shenzhen, where he was responsible for purchasing computer accessories. At that time, reselling floppy drives, hard drives, memory sticks and other computer accessories was a very profitable business.
“The well-known individuals in the domestic computer industry, including the founders of Qixi Computer and Deep Blue Computer, all relied on the reselling of computer accessories to earn the first pot of gold in their lives and accumulated extensive contacts in the IT industry. The computer found the inventory parts in time and provided the information basis.†said the general manager of the above hardware company.
In 1995, Wu Haijun founded Xintianxia Group. Its main business is still reselling computer accessories. The difference is that the domestic computer industry has entered the DIY era. With Taiwan's resources, Wu Haijun began to try to create its own brand, from the initial board card OEM to the organization of human R&D and production. By 2001, Xintianxia Group had become a group company with annual revenues of 2 billion yuan and a number of brands including Mercedes-Benz motherboards, Yingying motherboards, Shenlong motherboards, and Xiaoyingba graphics cards.
“These card brands have created a national marketing channel for the Xintianxia Group and laid the foundation for the listing of the Shenzhou Computer.†An industry insider who had worked in the Xintianxia Group stated that in August 2001, Wu Haijun established Shenzhou Computer Co., Ltd. The company, as soon as it debuted, pointed to the leader of the domestic computer leader Lenovo. Shenzhou Computer made a publicity slogan of "4,998 yuan, Shenzhou Pentium 4 computer to take home". At that time, the price of Lenovo's Pentium 4 computers was almost 8,000 yuan.
The move by Shenzhou Computer also opened the low price era of Chinese computers. With a low-cost strategy, Shenzhou Computer achieved sales of 200,000 units in 2002 and entered the national top five desktop PC sales. In 2003, Shenzhou home desktop PC sales ranked second in the country with annual sales of 500,000 units.
In the advent of the notebook era, Shenzhou Computer's low-cost strategy still dominates. In addition to Lenovo, former competitors, including Founder, Tsinghua Tongfang, Haier, TCL, etc., were all surpassed by Shenzhou Computer.
"Shenzhou computer manufacturers generally do not dare to use low-cost operating methods, because the product quality is very high risk. But the Shenzhou computer is playing a low-cost card, consumers are more inclusive of product quality." A domestic PC computer The middle level of the manufacturer stated that the Shenzhou computer brand has only been one of the computer brands so far and there are still some gaps from the brand.
How long can the "Shenzhou Mode" last?
In fact, Wu Haijun also knows that Shenzhou Computer's model of “determining products by stocking†has great defects.
Therefore, in June 2006, Wu Haijun also specially invited Fu Biaobang, former president of Dell China, to join Shenzhou Computer as the president of Shenzhou Computer. At that time, the Fu Biaobang once told this reporter that Wu always had a large amount of money and his annual salary made him have a surprise. Wu Haijun also stated that he hopes that the Fubiao list will lead the company to the global market and create a new "Shenzhou model" based on the situation of Shenzhou Computer and the experience of comprehensive international companies.
However, it was only 9 months later that the Fubiao list had left and returned to the old club, Hewlett-Packard. Even worse, the domestic computer market has experienced a period of rapid growth.
"Today, the computer industry is a sunset industry." A domestic high-level listed computer company pointed out yesterday that due to the rise of the Apple iPad, the global computer industry is currently in a transition period, and the market size of Chinese computer manufacturers is still shrinking. The Shenzhou Computer’s prospectus also showed that sales of notebooks, desktop PCs and liquid crystal integrated machines of Shenzhou Computer all decreased in 2010 to varying degrees compared to 2009.
“This kind of performance is difficult to establish the confidence of investors. Unless it is like Apple, Shenzhou Computer can develop a new computer with hardware and software.†The top computer company estimates that Shenzhou Computer’s application for listing on the GEM is also the last resort. The move. Shenzhou Computer had twice impacted IPO in 2005 and 2008 and both ended in failure.
The senior executive also stated that domestic computer manufacturers’ market promotion mainly depends on advertising and a wide range of market channels, which is costly. However, the data of the Shenzhou Computer prospectus shows that its net interest rate is basically close to the gross margin of its products, which is completely against the prevailing conditions in the domestic computer industry.
According to the data of the prospectus, the newspaper reporter calculated that the gross margins of products of Shenzhou Computer in 2008, 2009 and 2010 were 5.78%, 6.04%, and 6.31%, respectively, while the net interest rates in the past three years were 5.32%, 5.3%, and 5.58 respectively. %. In contrast, Lenovo Group (00992.HK) announced in February 2010/2011 the third quarter quarterly data show that the Lenovo computer product gross margin for the quarter was 11.16%, while the net interest rate was 2.1%. Tongfang (600100.SH) semi-annual report also showed that its gross profit margin was 17% in the first half of last year, while the net interest rate was only 2.08%.
Although the data from the prospectus alone is difficult to draw, Shenzhou Computer's net margin is close to the root cause of gross profit margin, but its alternative market model should be one of the reasons. (Sun Yanyi)
Shenzhou Road: PC industry foundry's low-cost model is difficult to sustain the Shenzhou computer with a gross margin of only 6.31%. The impact of the GEM was denied at the end of March, implying its impact on the SME Board in 2008 and the Xintianxia Group, the parent company of Shenzhou Computer in 2005. After two unsuccessful IPOs, Shenzhou Computer’s hope of being listed was again broken.
In terms of its essence, "In fact, the Shenzhou Computer and the foundry are similar," a well-known IT analyst told the "First Financial Daily" reporter.
The low cost is difficult to maintain in the high-tech industry, the profit margin of the computer industry was originally like Lenovo coach Liu Chuanzhi said: "twisted water in the towel." But now, it seems that the low-value-added Shenzhou computer has brought its low-cost strategy to the extreme. It has been like: Semi-dry towel twisting water.
The reason why this is said is that the profits earned by Shenzhou Computer mainly come from the cost control of employees and the supply chain. Although the difference between gross profit margin and net profit margin is small, the net profit rate is 5.56%.
“The failure of Shenzhou Computer's listing to the founder Wu Haijun has not had a significant impact on himself, but it can have an impact on employees and teams who have been working for many years on low wages. If they fail to go public for the third time, can they still persist?†Mobile Internet Li Yi, secretary general of the industry alliance, made the above judgment.
In fact, Shenzhou Computer's prospectus data shows that the overall staff cost of Shenzhou Computer is really low. Among the 18 people of Shenzhou Computer including directors, supervisors, senior management staff and other core personnel, the senior vice president Chen Min is paid the highest salary. 24,400,000 yuan, no one has a monthly income of more than 20,000 yuan.
The reporter also noticed that in the main business cost of Shenzhou Computer, the cost of raw materials was as high as 97.65%, and the rest was composed of wages, benefits, and manufacturing expenses.
The total salary, welfare, and R&D expenses of the 3396 Shenzhou Computer employees in 2010 was 1.6868 trillion yuan, of which the total R&D expenditure exceeded 100 million yuan. Shenzhou Computer's annual hospitality fee is 328,500 yuan, which also means that the company’s senior executives’ reimbursement amount is not too high.
An Internet company employee told reporters that in the general Internet public companies, the starting salary of employees has reached 4,500 yuan, while middle-level employees have annual income of more than 400,000 yuan, and monthly reimbursement of more than 5,000 yuan is also very common.
In addition to the low wages and low benefits, Shenzhou Computer’s core competitiveness has low-cost control. The annual sales of the Shenzhou Computer is about 1.36 million units, which is less than one tenth of the top four computer companies, and its highest average price. Only 2510 yuan per station. "In the computer field, the higher the quantity, the lower the purchase cost. For Shenzhou Computer, when the prices of Lenovo, Acer, Dell and Hewlett-Packard have been pulled down to similar levels, there is no Shenzhou computer supported by government procurement and they want to further There is not much room to win with cost advantage," said Li Yi.
The family-owned company is hard to say that Liu Chuanzhi, a modern company, said that he wants to make the company a family-owned enterprise without family. However, Shenzhou Computer is basically a "family business." This is also unprecedented in the world's high-tech companies.
The Shenzhou Computer’s prospectus shows that Wu Haijun, the actual controller of Shenzhou Computer, directly controls the 4.12% stake in Shenzhou Computer, but indirectly controls it through other companies controlled by it (Shenzhen Xintianxia Group Co., Ltd. and Shenzhen to Meijiayu Advertising Co., Ltd.). 88.62% of Shenzhou Computer's shareholdings totaled 92.73%. Even after the stock was distributed to disperse part of the equity, Wu Haijun and her family owned equity still reached 83.46%, with absolute control of Shenzhou Computer.
It is noteworthy that the shareholders of the Xintianxia Group of Shenzhou Computer's parent company are Wu Jiling and Wu Haijun. Xintianxia Group also owns Shenzhou Computer's advertising company to 90% of Meijiayu, and the remaining 10% is owned by Wu Haijun’s ex-wife Weng Yuyan. Li Yi said, "This kind of shareholding structure does not meet the modern corporate governance structure."
In fact, before ShenZhou Computer, the domestic computer company Fangzheng Technology, which has been listed in advance, has transferred the PC business to Acer, and Qixi Computer has gradually converted the main business to real estate projects. Li Yi judged: "As the market becomes more transparent, Shenzhou Computer's main PC business will inevitably go down the road."
Shenzhou Computer low-cost mode Trek: sweeping goods manufacturing low-cost products Shenzhou Computer founder and chairman Wu Haijun may not have thought that his own 10 years ago set the low-cost model for the Shenzhou computer, in 10 years after the company actually turned into a gem One reason.
On the evening of March 22nd, the China Securities Regulatory Commission's issuance and review committee announced to the public that Shenzhou Computer's GEM listing application had not been approved. Previously, Shenzhou Computer had two unsuccessful listings.
"(March) on the 22nd day they (Shenzhou computer executives) also said that there will be no problem at all." An insider close to Wu Haijun told the "First Financial Daily" that Shenzhou Computer lost this opportunity and will be listed in the future. There are not many opportunities, because overseas capital markets do not feel bad about the concept of manufacturing in China.
The general manager of a computer hardware company pointed out that from the development history of Shenzhou Computer in the past 10 years, this type of market expansion mode that most computer manufacturers disdain is indeed one of the survival techniques in the computer industry, but there are also fatal flaws. . Products lack market pricing power and can only become market followers or chasers. In the transition period of today's computer industry, the future market development space of this model has great limitations and uncertainties.
Sweeping goods to manufacture low-priced products "As early as five years ago, the computer market had entered the era of low profit." A domestic middle-tier PC maker yesterday told this reporter that the reason why Shenzhou Computer has been able to maintain a low-price signboard in the era of meager profits, one by In the international computer market sweeping goods and inventory accessories, and second, the use of the country's export tax rebate policy.
Shenzhou Computer's prospectus (draft) shows that from 2008 to 2010, the tax incentives, including export tax refunds, obtained by Shenzhou Computer accounted for 92.07%, 16.78%, and 25.12% of its net profit, respectively. However, the Shenzhou Computer prospectus on the practice of sweeping goods, given the "production according to supply" theory.
Shenzhou Computer stated that the company keeps abreast of the market trend of computer key components. When certain components cause prices to drop due to various reasons (generally lacking supporting product support), they will timely purchase and develop complementary products to form the uniqueness of Shenzhou Computer. The product update speed and price advantage.
In the third quarter of 2009, Shenzhou Computer purchased a batch of 13.3-inch LCD screens from the market. The specifications of the screen were rather special. It had previously been specially supplied to Apple computers. Due to Apple's product line adjustment, orders were cancelled and no longer. Procurement, while Other companies do not have products suitable for the screen, causing the screen to be sold at low prices because of the backlog. After Shenzhou Computer purchased, it developed an elegant A300 series laptop that can use this screen. The reporter found on the Internet that the price of the notebook was less than 3,000 yuan, and the price was more favorable than that of other brands.
"Actually, Shenzhou Computer's example in the prospectus is to illustrate the reliability of its core components." The general manager of the above-mentioned hardware company pointed out that most of the inventory components are outdated components, and some have "not fatal" quality defects. This has become one of the reasons for the low price of Shenzhou Computer's products.
Wu Haijun's history of entrepreneurship In fact, Shenzhou Computer's low-cost survival technique also comes from Wu Haijun's more than 16 years of professional history in the IT industry.
In the early 1990s, after graduating from Southeast University, Wu Haijun moved south to Shenzhen, where he was responsible for purchasing computer accessories. At that time, reselling floppy drives, hard drives, memory sticks and other computer accessories was a very profitable business.
“The well-known individuals in the domestic computer industry, including the founders of Qixi Computer and Deep Blue Computer, all relied on the reselling of computer accessories to earn the first pot of gold in their lives and accumulated extensive contacts in the IT industry. The computer found the inventory parts in time and provided the information basis.†said the general manager of the above hardware company.
In 1995, Wu Haijun founded Xintianxia Group. Its main business is still reselling computer accessories. The difference is that the domestic computer industry has entered the DIY era. With Taiwan's resources, Wu Haijun began to try to create its own brand, from the initial board card OEM to the organization of human R&D and production. By 2001, Xintianxia Group had become a group company with annual revenues of 2 billion yuan and a number of brands including Mercedes-Benz motherboards, Yingying motherboards, Shenlong motherboards, and Xiaoyingba graphics cards.
“These card brands have created a national marketing channel for the Xintianxia Group and laid the foundation for the listing of the Shenzhou Computer.†An industry insider who had worked in the Xintianxia Group stated that in August 2001, Wu Haijun established Shenzhou Computer Co., Ltd. The company, as soon as it debuted, pointed to the leader of the domestic computer leader Lenovo. Shenzhou Computer made a publicity slogan of "4,998 yuan, Shenzhou Pentium 4 computer to take home". At that time, the price of Lenovo's Pentium 4 computers was almost 8,000 yuan.
The move by Shenzhou Computer also opened the low price era of Chinese computers. With a low-cost strategy, Shenzhou Computer achieved sales of 200,000 units in 2002 and entered the national top five desktop PC sales. In 2003, Shenzhou home desktop PC sales ranked second in the country with annual sales of 500,000 units.
In the advent of the notebook era, Shenzhou Computer's low-cost strategy still dominates. In addition to Lenovo, former competitors, including Founder, Tsinghua Tongfang, Haier, TCL, etc., were all surpassed by Shenzhou Computer.
"Shenzhou computer manufacturers generally do not dare to use low-cost operating methods, because the product quality is very high risk. But the Shenzhou computer is playing a low-cost card, consumers are more inclusive of product quality." A domestic PC computer The middle level of the manufacturer stated that the Shenzhou computer brand has only been one of the computer brands so far and there are still some gaps from the brand.
How long can the "Shenzhou Mode" last?
In fact, Wu Haijun also knows that Shenzhou Computer's model of “determining products by stocking†has great defects.
Therefore, in June 2006, Wu Haijun also specially invited Fu Biaobang, former president of Dell China, to join Shenzhou Computer as the president of Shenzhou Computer. At that time, the Fu Biaobang once told this reporter that Wu always had a large amount of money and his annual salary made him have a surprise. Wu Haijun also stated that he hopes that the Fubiao list will lead the company to the global market and create a new "Shenzhou model" based on the situation of Shenzhou Computer and the experience of comprehensive international companies.
However, it was only 9 months later that the Fubiao list had left and returned to the old club, Hewlett-Packard. Even worse, the domestic computer market has experienced a period of rapid growth.
"Today, the computer industry is a sunset industry." A domestic high-level listed computer company pointed out yesterday that due to the rise of the Apple iPad, the global computer industry is currently in a transition period, and the market size of Chinese computer manufacturers is still shrinking. The Shenzhou Computer’s prospectus also showed that sales of notebooks, desktop PCs and liquid crystal integrated machines of Shenzhou Computer all decreased in 2010 to varying degrees compared to 2009.
“This kind of performance is difficult to establish the confidence of investors. Unless it is like Apple, Shenzhou Computer can develop a new computer with hardware and software.†The top computer company estimates that Shenzhou Computer’s application for listing on the GEM is also the last resort. The move. Shenzhou Computer had twice impacted IPO in 2005 and 2008 and both ended in failure.
The senior executive also stated that domestic computer manufacturers’ market promotion mainly depends on advertising and a wide range of market channels, which is costly. However, the data of the Shenzhou Computer prospectus shows that its net interest rate is basically close to the gross margin of its products, which is completely against the prevailing conditions in the domestic computer industry.
According to the data of the prospectus, the newspaper reporter calculated that the gross margins of products of Shenzhou Computer in 2008, 2009 and 2010 were 5.78%, 6.04%, and 6.31%, respectively, while the net interest rates in the past three years were 5.32%, 5.3%, and 5.58 respectively. %. In contrast, Lenovo Group (00992.HK) announced in February 2010/2011 the third quarter quarterly data show that the Lenovo computer product gross margin for the quarter was 11.16%, while the net interest rate was 2.1%. Tongfang (600100.SH) semi-annual report also showed that its gross profit margin was 17% in the first half of last year, while the net interest rate was only 2.08%.
Although the data from the prospectus alone is difficult to draw, Shenzhou Computer's net margin is close to the root cause of gross profit margin, but its alternative market model should be one of the reasons. (Sun Yanyi)
Shenzhou Road: PC industry foundry's low-cost model is difficult to sustain the Shenzhou computer with a gross margin of only 6.31%. The impact of the GEM was denied at the end of March, implying its impact on the SME Board in 2008 and the Xintianxia Group, the parent company of Shenzhou Computer in 2005. After two unsuccessful IPOs, Shenzhou Computer’s hope of being listed was again broken.
In terms of its essence, "In fact, the Shenzhou Computer and the foundry are similar," a well-known IT analyst told the "First Financial Daily" reporter.
The low cost is difficult to maintain in the high-tech industry, the profit margin of the computer industry was originally like Lenovo coach Liu Chuanzhi said: "twisted water in the towel." But now, it seems that the low-value-added Shenzhou computer has brought its low-cost strategy to the extreme. It has been like: Semi-dry towel twisting water.
The reason why this is said is that the profits earned by Shenzhou Computer mainly come from the cost control of employees and the supply chain. Although the difference between gross profit margin and net profit margin is small, the net profit rate is 5.56%.
“The failure of Shenzhou Computer's listing to the founder Wu Haijun has not had a significant impact on himself, but it can have an impact on employees and teams who have been working for many years on low wages. If they fail to go public for the third time, can they still persist?†Mobile Internet Li Yi, secretary general of the industry alliance, made the above judgment.
In fact, Shenzhou Computer's prospectus data shows that the overall staff cost of Shenzhou Computer is really low. Among the 18 people of Shenzhou Computer including directors, supervisors, senior management staff and other core personnel, the senior vice president Chen Min is paid the highest salary. 24,400,000 yuan, no one has a monthly income of more than 20,000 yuan.
The reporter also noticed that in the main business cost of Shenzhou Computer, the cost of raw materials was as high as 97.65%, and the rest was composed of wages, benefits, and manufacturing expenses.
The total salary, welfare, and R&D expenses of the 3396 Shenzhou Computer employees in 2010 was 1.6868 trillion yuan, of which the total R&D expenditure exceeded 100 million yuan. Shenzhou Computer's annual hospitality fee is 328,500 yuan, which also means that the company’s senior executives’ reimbursement amount is not too high.
An Internet company employee told reporters that in the general Internet public companies, the starting salary of employees has reached 4,500 yuan, while middle-level employees have annual income of more than 400,000 yuan, and monthly reimbursement of more than 5,000 yuan is also very common.
In addition to the low wages and low benefits, Shenzhou Computer’s core competitiveness has low-cost control. The annual sales of the Shenzhou Computer is about 1.36 million units, which is less than one tenth of the top four computer companies, and its highest average price. Only 2510 yuan per station. "In the computer field, the higher the quantity, the lower the purchase cost. For Shenzhou Computer, when the prices of Lenovo, Acer, Dell and Hewlett-Packard have been pulled down to similar levels, there is no Shenzhou computer supported by government procurement and they want to further There is not much room to win with cost advantage," said Li Yi.
The family-owned company is hard to say that Liu Chuanzhi, a modern company, said that he wants to make the company a family-owned enterprise without family. However, Shenzhou Computer is basically a "family business." This is also unprecedented in the world's high-tech companies.
The Shenzhou Computer’s prospectus shows that Wu Haijun, the actual controller of Shenzhou Computer, directly controls the 4.12% stake in Shenzhou Computer, but indirectly controls it through other companies controlled by it (Shenzhen Xintianxia Group Co., Ltd. and Shenzhen to Meijiayu Advertising Co., Ltd.). 88.62% of Shenzhou Computer's shareholdings totaled 92.73%. Even after the stock was distributed to disperse part of the equity, Wu Haijun and her family owned equity still reached 83.46%, with absolute control of Shenzhou Computer.
It is noteworthy that the shareholders of the Xintianxia Group of Shenzhou Computer's parent company are Wu Jiling and Wu Haijun. Xintianxia Group also owns Shenzhou Computer's advertising company to 90% of Meijiayu, and the remaining 10% is owned by Wu Haijun’s ex-wife Weng Yuyan. Li Yi said, "This kind of shareholding structure does not meet the modern corporate governance structure."
In fact, before ShenZhou Computer, the domestic computer company Fangzheng Technology, which has been listed in advance, has transferred the PC business to Acer, and Qixi Computer has gradually converted the main business to real estate projects. Li Yi judged: "As the market becomes more transparent, Shenzhou Computer's main PC business will inevitably go down the road."
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