Reborn Entrepreneurial Giant

It is difficult to predict the income of Honor from the auto sector, and the future geometric growth trend is obvious, but after all, it is an independent listed subsidiary. How much can it earn after excluding the vehicle business?

The financial technology business in the service sector has great growth potential, but it is mainly in the domestic market. Other digital content (music, e-books) is hard to say. The KMS advertising revenue game share should have the greatest growth potential. Can it have a total revenue of 10 billion US dollars?

Honor's laptop business has grown against the trend. This year, it plans to sell all-in-one machines and monitors. The potential of tablet PCs is the priority, but the Android phone king has a certain basic disk. According to the unit price of 500 US dollars and 30 million sales, there should be more than 15 billion US dollars in revenue in ten years, right?

The sales volume of Honor smartphones has not yet reached the upper limit, and 200-300 million units should be a high probability event. Assuming that the sales unit price of mobile phones is 400 US dollars in 10 years, 250 million units will be 100 billion US dollars in revenue.

Only in other sectors, the upper limit of the smart watch business is very large. Apple Watch’s revenue in 2022 will be about 27 billion US dollars, true wireless Bluetooth headsets will also have sales of 10 billion US dollars, and DJI’s 22-year revenue will be about 10 billion US dollars. If all goes well in 10 years, Honor's business income in this sector may be able to earn 30 billion US dollars.

Qu Li estimated that Honor would have a revenue of US$160 billion in ten years, and the net profit would be about US$24 billion based on 15%. This kind of data made him feel a little complicated. The growth space of the enterprise is limited, and the gap with Apple very obvious. You must know that in 22 years, Apple's revenue was close to 400 billion U.S. dollars, and its net profit was about 100 billion U.S. dollars.

However, investors don't see it that way. The smart home market has huge potential and has a scale of trillions. Qu Li can only say haha! You have the ability to do it. This is not to create a new industry, but to lead traditional industries to upgrade.

"Didn't the shareholder meeting go well? Our stock price is still going up, you?" Lei Jun asked curiously when he saw that Qu Li was still looking listless.

"Do you want to promote the transformation of Honor into a consumer product company now?"

"No!" Qu Li waved his hands and said, there is no need to say a lot of things now

Seeing the current industrial layout of Glory, Qu Li felt somewhat dispirited. In the future, there would be a conflict if the chips were broken, and Glory might be sent away in a wave. But he couldn't give up his current business because of fear, that would be suicide.

"Why is that?" Lei Jun continued to ask

"Consumer goods companies are not a good position, and our investment in the entire industry chain of electric vehicles is not a good choice." Qu Li said his thoughts

"..." Lei Jun didn't expect Qu Li to toss about Glory again. In the past, Jumei and Glory often made adjustments. From now on, most of Qu Li's decisions are correct, but...

"What do you want to do?" Lei Jun

"In addition to self-driving AI chips, other businesses such as MCU, IGBT power devices, lidar, and sensors are allocated to Arima." Qu Li said. The market size of this part of the business itself is not large but the risk If you stay in Arima, you can attack, retreat, or defend. If one day Honor directly builds a car, you can acquire Arima to obtain a car-making qualification.

"This is very simple..." Lei Jun didn't think this was a big deal that Qu Li wanted.

"I want Glory to acquire all the shares of Honeycomb Energy and treat it as a strategic project, second only to mobile phones and tablets..." Qu Li

"..." Lei Jun thought he heard it wrong: "Are you sure?"

"The core of an electric vehicle is a three-electric system, of which the battery is the most important, and may become the most important energy storage method in the future..." Qu Li

"Do you really want to go all out to promote a sustainable energy economy?" Lei Jun

"New energy and electric vehicles are the will of the country and are in line with the interests of the nation. As a medium-sized enterprise, we have no choice but to bind the destiny of the enterprise with the destiny of the country and the nation. At the same time, we reserve more opportunities for survival... ..." Qu Li said in a low voice

"Is that an exaggeration..." Lei Jun thought Qu Li was bragging

"I have to think about finding more living space for Honor under extreme circumstances." Qu Li remembers CATL's 22-year revenue of approximately US$47 billion and net profit of approximately US$4.4 billion. After Honor acquired Honeycomb Energy, it did not completely replace CATL It is hard to say that it is an excellent company, and it should not be a big problem to win half of its market share with Honor's strength and achieve a revenue of 23.5 billion US dollars.

If we really want to do a good job in the battery business, it is not only a huge supplement, but also has huge potential, and there is no way to suppress it. Just like the drone business, Apple has not dared to build it so far. They cannot avoid the patent of the Honor drone, and the same performance cannot match the price of the Honor drone. Moreover, this is a niche market. From the perspective of consumer groups, they pay more attention to cost performance than brand. When consumer drones break through the circle, Honor will already have an absolute advantage.

With the drone and battery business, Honor has a guaranteed income of about US$40 billion in ten years, and other income such as smart wearable devices can be calculated as US$50 billion. Even in extreme circumstances, it can be guaranteed that Glory will not die.

It seems that the autonomous driving and car-machine AI chip business has become embarrassing again. Can 28nm process produce AI chips?

There is also smart home. Originally, he didn't want to invest too much energy in this field. Now that he thinks about it, he still has some hope. Controlled by honor home speakers, connected through a router that can install plug-ins, temporarily provide a smart door lock product.

Qu Li didn't respond to Lei Jun. He thought of his own, and quickly planned a general framework. Smart home is not enough, and it is more suitable to use smart home for the whole house. It is divided into several subsystems, namely the intelligent security protection system: including smart door locks , intelligent surveillance cameras, infrared sensors, motion monitoring and other products; intelligent audition systems (such as home theaters); intelligent lighting and shading systems; intelligent environmental monitoring (heat pumps, air conditioners, fresh air fans, water purifiers, etc.)

After he thinks it through, he discusses it at the company meeting, perfects the plan, and implements it. The roadmap for smart home products in the whole house became clear at once. They have plans and product definitions, so they can find manufacturers to cooperate in production.

But here comes the question again, will Honor become a Xiaomi grocery store? Is their whole house smart home pre-installed or post-installed? Will Honor change from a company selling black technology products to a service-oriented technology company? How to position in the future?

However, compared to the previous panic and uncertainty, Qu Li is much calmer now, and it is up to man to make things happen. He can do what he is doing now, which is considered extraordinary.

"You sold the honeycomb energy to Glory, what should we do?" Zhang Qinan of Geometry Auto

"We still have the Ningde era." Qu Li said hesitantly. Whether the whole industry chain model is good or bad is still unclear. Qu Li thinks that it is enough to ensure the safety of the industry chain. (end of this chapter)