The success of Ida Electronics is destined to be very lively in the competition for CCTV bidding in 1997. Moreover, the huge success of Ida Electronics this year has a stronger demonstration effect on the CD player assembly manufacturers in its industry. The competition for CCTV advertising bidding in 1997 should be between DVD player brand manufacturers. Last year, it adopted a one-time secret bid quotation format, and there was no room for price competition. Everyone just speculated on other people's bottom price and then quoted their own offer at one time.

This year, CCTV's advertising information department is likely to adopt the form of explicit bidding, and the scene will be extremely tragic.

Zhang Ke predicts that starting from November, the DVD player market will set off a war of advertising wars. Moreover, the second phase of Philips Shanghai factory and the Sony movement factory are put into production. The most important bottleneck in the DVD player production capacity will no longer be the most important bottleneck. The advertising war will explore this market to the maximum extent, but the market capacity cannot be expanded unlimitedly. The surge in the assembly volume of DVD player will quickly change the supply and demand balance. Next, a price war of survival of the fittest and competing for market share will be launched. The golden period of super high profits of DVD player may only be maintained until the beginning of next year, and before that, the sales price will gradually fall.

Once the price war begins, no whole machine manufacturer can stay out of it, and Aida Electronics can only follow the price reduction and promotion. The advertising war will increase marketing costs very high. When the two phases squeeze, the profit margin will become very small, turning from prosperity to decline, and directly entering a dark period of small profits or no profits.

Of course, Aida Electronics' situation will be much better. It has continued to invest in technology and started to make advance investments. When other manufacturers are still thinking about the introductory technology of DVD players, Aida Electronics has long developed a version that can play high-definition still images based on the selected menu. In addition, it also provides technical support to spare parts manufacturers to continuously improve the quality of spare parts and reduce production costs (in Haizhou, DVD player assembly manufacturers, including Kewang Electronics, all enjoy the benefits of Aida Electronics). Aida Electronics has no competition in high-end DVD players, and mid- and low-end DVD players have lower production costs than others. The most important thing is that as long as the upstream Scooper, the technical monopoly of TI decoding boards is not broken by the third manufacturer, Hong Kong companies can also enjoy a monopoly profit accounting for about 20% of the entire decoding board market.

When others are traumatizing, Aida Electronics can still enjoy stable profits, but it cannot be compared with the huge profits in the early stage.

Zhang Ke’s plan is to package Aida Electronics’ DVD player business to Chiaxin Industrial before the film and DVD player industry declines from prosperity next year. At this time, the DVD player industry is entering a stage of comprehensive prosperity, but it is just a bit over-prosperous. Aida Electronics has performance and super high profit support. When the maximum profit has been withdrawn, it can still sell at the best price. Why not do such a thing?

Zhang Ke controls the largest number of shares of Aida Electronics, and is naturally the biggest beneficiary of the transaction.

Chiaxin Industrial itself does not have enough funds to complete such acquisitions, and raising funds for public issuance of shares in the stock market is a relatively feasible way.

In terms of opportunity, the fall of next year is the time when the Asian financial crisis broke out in full swing. Before that, the Hong Kong stock market was in the biggest boom period since the stock market crash in 1987 due to its return to the theme. Chinese red chip stocks were greatly sought after in the Hong Kong stock market. At this time, high-priced stock issuance of stocks to raise funds to acquire Aida Electronics' DVD player business, which only requires transferring less equity in the company, but can raise more funds.

Zhang Ke actually controls more than a quarter of Chiaxin Industrial's shares. Chiaxin Industrial issued shares at a high price on the Hong Kong stock market, and Zhang Ke is also the biggest beneficiary.

To complete this plan, I must separate Aida Electronics’ DVD player business in advance.

Although Aida Electronics proposed the concept of diversified business before the New Year, there has not been any step in reality. It was just technological expansion in the early stage, and its main business was still DVD players. In Zhang Ke's view, the most important asset is the technology R&D center. How much development Aida Electronics can develop in the future depends on how much achievements it can make after investing so much in the technology R&D center.

Business separation mainly involves the separation of the technology R&D center.

After Zhang Ke visited the Electronics Industrial Park in the morning, he had lunch and went around the Kewang Electronics factory jointly established by Jincheng and Zhengtai. He went directly to the components branch located on Chengshan Road. The technology research center was still there. The original triangular scientific research building is now all for use by the technology center.

Before the beginning of autumn next year, the overall DVD player business will be sold to Caraccier Industrial, and the time should be arranged as much as possible before the beginning of summer.

At present, the Asian financial crisis has begun to show signs in Thailand, the Philippines, etc., but it has not attracted enough attention yet. Zhang Ke is not inconvenient to explain that the timing of choosing to sell the DVD player business is closely related to the Asian financial crisis, especially in terms of time. Too much advance, Chinese red-chip stocks have not reached the historical highs and cannot dig up the maximum profit; it will be delayed for too long, and the Asian financial crisis will break out in full swing, and panic is everywhere in the stock market. The plan of Caritas Industrial to issue new shares publicly is likely to be miscarriage.

In the established plan, Zhang Ke met at the Technology Center in the afternoon. The Technology Center developed the latest generation of DVD players and went to listen to Ding Huai's offerings. However, after arriving at the Technology Center, he called Wanqing, Zhou You, Cai Yujuan, Jiang Wei, Lu Qingsheng, Yang Yun, Zhou Yiping and others, and had dinner together in the evening, and discussed the issue of the split of the Technology Research and Development Center during dinner.

"Compared with., the latest prototype has a significant increase in function. It can be said that there is a qualitative leap on the basis of the original VCD." For the matter of Xiangxuehai, Zhang Ke has been traveling between Hong Kong and Huishan for two months. He was busy with the forest planting in the middle and upper reaches of Xiaojiang River. He didn't care about Aida Electronics at all. Ding Huai wanted to shock Zhang Ke this time, "This improvement is very big. The biggest improvement is that unlike VCD using MPEG

-1 As a video storage format, the new model adopts MPEG-2 as the video storage format. Compared with the horizontal clarity of the VCD250 line, the new model has been improved to above 350 line... We have developed Smartstream smooth technology, which not only has stronger playback capabilities, but also in response to the current chaotic situation of the domestic pirated disc market, this technology also has super-strong error correction capabilities for discs; it uses variable rate encoding to optimize the image decoding system, and eliminates the fastness of previous products.

The Marseille defect caused by speed moving images has improved the clarity of the clarity. In terms of playback function, there are more diverse ways to play back and forth, quickly retrieve, and play frame by frame. You can also preview nine screens and zoom the picture. You can play the entire disc or singles and single segments repeatedly and play the functions of random or looping. The main control software of the latest prototype can recognize the JAVA and HTML computer languages, greatly enhancing two-way interaction.

Performance, reserve software and hardware interfaces, and match them with corresponding external devices, it can also become a learning platform and game platform for human-computer interaction..." Ding Huai paused for a while. Although he explained while demonstrating, Zhang Ke still had some difficulties in understanding many terms and subtle functions. Finally, he said proudly, "The new model is not much worse than the DVDs being made abroad. As long as it is implemented first, it is not impossible to replace DVDs..."

"Super VCD..." Zhang Ke remembered the dispute over the two new video player standards of SVCD and CVD developed by domestic video player manufacturers such as Xinke Electronics and Aido in the second half of 1997. It was not until 1998 that the Ministry of Information Industry formulated a unified super VCD standard. It was obvious that Ding Huai and his team developed this new video player that was obviously better than VCD more than a year in advance. The work of the technology research and development center is indeed very outstanding. If you are willing to invest in technology in China, the returns are still considerable.

This word suddenly appeared in Zhang Ke's mouth. Ding Huai and Su Jindong were also stunned. They were worried that technical things were a bit puzzled. Unexpectedly, he immediately came up with a name that was appropriate to the new model. Su Jindong said: "The name of Super VCD is consistent with the characteristics of the new model. We have studied internally. Super VCD can completely replace VCD, and Smartstream smooth technology and variable rate encoding are our unique patented technologies... As for whether it can replace DVDs, it is also worthy of careful research."

Zhang Ke shook his head and said, "The standard for DVD discs was formulated by Sony, Toshiba and other companies in the end of 1995. International giants in the electronics industry such as Philips, Pioneer, and Thomson have participated in the development of DVD models. Not to mention that the technology of super VCD is worse than DVD. Even if it is more advanced than DVD technology, it is impossible to replace DVDs. In addition to the advanced technology, market competition is also one of the most critical factors. If you don't discuss it, there are trade-offs within the technology center. As for market competitiveness, even if you gather all the electronics industry manufacturers across the country, you cannot compete with those international electronics industry giants... If you replace DVDs, don't bother to consider it..."

Zhang Ke said this, Ding Huai and Su Jindong couldn't help but feel a little discouraged. They were still excited for a while when they made a technical breakthrough.
Chapter completed!