On May 21st, Konka Appliances Channel held the 38th Anniversary Celebration and Transformation and Upgrade Strategy Conference on the theme “New Era, New Kinetic Energy, and New Leap†to comprehensively explain Konka's new strategy for innovation and development, and various levels of leadership. The guests and guests of the national media attended the press conference together and witnessed the determination of Konka to use the power of technology and innovation to create a 100 billion-dollar investment-controlled technology industrial group.
At the press conference, with the official awards of Konka Environmental Protection Technology Division and Konka Semiconductor Technology Division, Konka will officially enter the environmental protection and semiconductor industries. In addition, Konka also signed cooperation agreements with the governments of Zhangzhou, Suining, Nanjing, Yibin and Haimen to jointly develop the business park of science and technology industries. The five regional projects will have a total investment of 43 billion yuan, which indicates once again that the Konka business map is further developed. expand.
As the top priority of the 38th Anniversary Celebration and Transformation Upgrade Strategy Conference of Konka Group, Zhou Bin, President of Konka Group, officially released the reasons, basis and strategic planning content of the transformation and upgrading. The details are as follows:
The 38 years of Konka's past can be roughly divided into four stages: the 80s of the last century were the stages of product identification and brand building, never intended to be processed into tape recorders, and the formation of a Konka brand dominated by color TV; the second period It was in the 90s that it was a growth stage. From a multi-billion-dollar sales enterprise, Konka became a company that had sold more than 10 billion yuan in 1999 and was the first electronic company with a scale of over 10 billion in Guangdong Province. Entering the year 2000 is an exploration phase. We have explored multiple products, industries, different business models, and different mechanisms and systems. Since 2016, Konka has entered a new phase of leapfrog development, with substantial breakthroughs in the layout of the industry and the scale of its operations.
It is precisely because of the industrial foundation, brand influence, and successful experience accumulated during the 38 years of development that we have entered into the leap-forward development of Konka under the impetus of the new era and the new economic tide. At this moment, there is a more urgent need for a transformation and upgrading development strategy that matches with leapfrog development. This is also an important reason for our transformation and upgrading .
There are two main aspects for the transformation and upgrading of Konka:
One is that its own conditions have matured. In the 38 years of development, Konka not only has a profound accumulation in the industry base, technology research and development, talent team, brand effect and so on. Moreover, in recent years, new situations, new experiences and new achievements in industrial development, institutional changes, and model innovation have given us greater confidence and more urgent desires to achieve faster and greater development in the future.
The second is that external links are full of opportunities. Including China's economic development has entered a new era, new reforms continue to emerge. In particular, the Nineteenth National Congress proposed the overall idea of ​​transforming the mode of development, optimizing the economic structure, and transforming the growth momentum, thus injecting a strong momentum for the development of the Chinese economy. At the same time, what is more important is that OCT Group, which is a major shareholder of Konka, is entering the fastest growth period in history under the leap-forward development strategy of culture + tourism + urbanization. The unprecedented support provided by OCT Group to Konka has also brought more opportunities and huge strategic demands for the development of Konka.
In other words, Konka now stands at a higher starting point and a larger platform, with conditions and ability, and more urgent desire to achieve high-quality rapid development. To achieve leapfrog expansion and promotion, this new strategy is to overcome in this context.
The core content of this new strategy sums up four sentences:
One core positioning, two development lines, three development strategies, and four business groups.
A core position: Konka wants to become a platform driven company driven by technological innovation;
Two main lines of discovery: First, the development direction of technology + industry + urbanization. Our thinking is that technological innovation is one of Konka's core competitiveness in the past 38 years. In the new era of transformation and upgrading, technological innovation will remain the core driving force of Konka. It will carry the mission of creating a sustainable competitive advantage for Konka. Especially in the optimization of the existing consumer electronics sector, including the strategic layout of new industries, we will closely match the frontier of the industry and innovation resources through independent research and development, investment incubation, and production and research alliances, and we will gather together popular innovation elements. . Let science and technology innovation become the core genes of the new era of Konka, science and technology + industry + urbanization is driven by science and technology, based on industry, urbanization is the carrier of development, and provides funding and resource support for science and technology and industry;
The second main development line is the development mode of hardware + software, terminal + users, and technology + investment control. Hardware + software is Konka's future major operating model. One is the concept of operations, and the other is the scope of operations. Hardware operations must continue to contribute to smart terminals and user platforms that can be used by software and users. Software and users contribute primarily to the profitability of continuing traditional businesses. Interdependence, mutual promotion, and ultimately the formation of a virtuous cycle of self-management value chain. Technology + investment control is based on technological innovation as the engine, including the investment in the distribution of new industries, through the participation of shares, to achieve industrial value mining and creation.
Three development strategies:
The first is reform. To implement the mixed ownership reform in an all-round way, we are guided by the guiding ideology of OCT Group’s new implementation in 2018, combined with the direction and thinking of our own transformation and upgrading, and resolutely implement the mixed ownership reform. In particular, for existing businesses, we will adopt company-based reforms based on actual conditions, especially electronic technology, and multimedia has already undergone the corporate system reform. The second is the introduction of strategic investors, the third is the employee’s shareholding, the fourth is the redistribution of assets and operations, and the mobilization of asset reorganization. These four models further aggregate the power of partners to achieve common development. The transformation of mixed ownership reforms into a new impetus for the transformation and upgrading of Konka's development. The goal of this year is to complete the mixed reform of all Konka's businesses.
The second is transformation. It is to create a new industrial track. We will focus on strategic emerging industries, and lay out new industries that have high industrial attractiveness, are in line with Konka's attributes, and have synergies with other business sectors, and create a new industry structure, making Konka an innovator in the development of new industries. And demonstrators. The specific industrial structure will be introduced next.
The third is upgrading, which is to upgrade the existing business model. Relying on existing hardware businesses such as multimedia, white electricity, mobile phones, etc., building a smart home as the orientation, integrating intelligent hardware, user data, and ecological resources as the core, and gaining user traffic through the service of user operations and ecological resource integration platforms. Realize and invest in other extended earnings to achieve a complete upgrade of existing business models.
Four business groups:
In the face of the future, we will adjust the business structure that has been more focused on consumer electronics in the past. Based on the direction and thinking, with the help of industrial advantages and scientific and technological advantages, and supported by technology, investment control and compliance, we will build and create new products based on industrial products. The business groups include business clusters for science and technology parks, industrial product business groups, platform service business groups, and investment finance business groups.
Science and technology park business group: At present, there are three major business systems, the first is the science and technology park, the second is the headquarters economy, and the third is the logistics park. Among them, the industrial park projects are located in Zhangzhou, Anhui, Yibin, Sichuan, Suining, Sichuan, Fenggang, Dongguan and Boluo, Huizhou. The Konka Smart Home Appliances and Equipment Industrial Park has been built. The Yibin Konka Intelligent Terminal Hi-Tech Industrial Park, the Suining Konka Electronic Technology Industrial Park, and Konka's ABP project have integrated their own product development, sales channels, e-commerce platforms, after-sales and logistics. Centers and other resources, focusing on Nanjing, Nantong, Chengdu, Wuhan, Yantai and other places have achieved the layout. In the logistics park, currently Konka and Wanke and other developers have jointly built an international logistics park in Haimen and Kunshan, Jiangsu.
The industrial product business group will continue to deepen its original multimedia business, white-power business, and mobile-phone business, with appropriate opportunities and appropriate opportunities to lay out some strategic emerging industries. These industries are mainly concentrated in areas such as artificial intelligence, health, new energy, new materials, and next-generation information technology. Next, we will hold the licensing ceremony of the Environmental Protection Technology Division and the Semiconductor Technology Division, and formally announce our overall layout in the field of energy conservation, environmental protection, and semiconductors.
Focus on the business direction of the two environmental protection and semiconductor divisions:
In the environmental protection industry, Konka has its natural advantages. Although a considerable part of the environmental protection industry has the nature of social public utilities, Konka not only has the background and favorable support of the central government, but also has adequate capital preparation and good industry synergy. Meet the requirements of entering this industry. The business direction of our environmental science and technology division will focus on four aspects: water pollution control, air pollution control, solid waste treatment, recycling and reprocessing, soil pollution treatment and rehabilitation. The goal is to achieve one-year revenue of more than 10 billion yuan in one to two years. With 3 to 5 years to build a domestic first-class environmental protection operation and maintenance high-end brands.
In the semiconductor industry, Konka has brought a lot of demand for semiconductors due to its own needs. According to statistics, the amount of semiconductor purchases made last year totaled 9 billion. It is expected that this year will exceed 14 billion. This is our natural need. On the other hand, it has cultivated a profound technical reserve and talent team formed in the development of strong business. Entering the semiconductor field is also a matter of course. This business we will focus on semiconductor design, semiconductor manufacturing, semiconductor equipment, semiconductor materials and other aspects of the layout. The key product direction is memory chips, IoT devices, and key equipment. It is hoped to be among the top semiconductor companies in the world for 5 to 10 years and is committed to becoming the top 10 semiconductor companies in China with annual revenue of over 10 billion.
In addition, major health, new energy vehicles, big data, Internet of things, 5G and other areas will also choose the right opportunities and the right time to focus on layout.
This is the layout of our industrial product group.
The third business group: Platform service business group.
The current layout and cultivation of Internet operations, supply chain management and financial services. And it has become an important source of our important product line and revenue profit. In particular, we have formed four business directions based on the Internet ecosystem, including the Konka intelligent terminal user operating platform and cross-screen business, and the IOT Internet of Things operation business based on Konka's intelligent terminals, based on Konka's healthy user operation platform. The big health operation business and the smart township business based on Konka's smart township platform are used to build a complete smart home ecosystem and create a full-scene smart city business.
The fourth is the investment financial business group.
At present, direct investment, industrial funds, venture capital, and investment platforms for three carriages have been formed. In the financial business, we will provide a series of financial services around the industrial chain and ecological chain of Konka on the basis of current commercial factoring and financial leasing.
Through these four groups, we will form an integrated two-level structure. One is the industrial business group as the main body, innovating products and expanding industry lines. The two levels are based on the technological cluster business group as a new growth level, upgrading strategic space. Boosting the leading model, assisting the investment banking business group and boosting the high-quality development of Konka.
Through this series of strategic deployments and strategic initiatives, we hope that by the end of the 13th Five-Year Plan period, that is, the year of the 40th anniversary of Konka, we will be oriented toward transformation and upgrading. We will achieve revenue of 60 billion yuan in that year. Cultivate three new industries with more than 10 billion revenues and build 1 to 3 new domestic and foreign listed company platforms. Within five years, that is, the fifth year of the launch of this new strategy, through the continuous leadership of the idea of ​​technology + industry + urbanization, we must achieve a sales revenue that exceeds 100 billion in the year. Become a world-class enterprise driven by technological innovation and global competitiveness.
This is the distribution map of the scale of our 100 billion revenue, and it is also the goal of the new strategy for the transformation and upgrading of Konka this time. It is also the business map of Konka that we want to tell everyone in the future.
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