Rebirth: Return to 1991 to be the richest man

Chapter 804 We absolutely cannot be satisfied with the status quo
In the 90s, apart from Qiuhai, there was probably no other company in the same industry in China that could invest so much money in research and development.

Even if we look at it from a global perspective, this kind of investment ratio is definitely achievable.

Chen Jianghai was not surprised at all by this figure.

This is exactly the result he wanted.

As an electrical appliance company, if Qiuhai cannot keep core technology in its own hands, it means that it will be controlled by others.

Once he is controlled by others, Qiu Hai will have a difficult life in the future.

What's more, Qiu Hai's goal is to become the number one in the industry and the setter of rules.

This first is not just domestic, but ultimately the whole world.

To achieve this goal, investment in research and development must be indispensable, and a large number of patents must be purchased as accumulation.

It's better in China, but it's not cheap abroad.

The remaining expenditures are mainly hardware investment and the construction of Qiuhai Building.

In addition, employee salaries and benefits are also a big deal.

Qiuhai's expenditure on these two items is also much higher than that of other companies.

At this moment, there was a knock on the door outside, and Chen Jianghai came in without raising his head.

The office door opened and Yue Hongsheng walked in from the outside.

"Mr. Chen, do you have time to read that report?"

Chen Jianghai raised the document in his hand, nodded and said, "I'm reading it now. Sit down."

After hearing what Chen Jianghai said, Yue Hongsheng stopped saying anything and sat down respectfully.
Chen Jianghai looked up and couldn't help but ask: "What? Is there a problem?"

"Mr. Chen, I think there is a big problem with this financial report." Yue Hongsheng said seriously.

"Oh, what's the problem? Tell me."

Chen Jianghai put the documents on the table and looked at Yue Hongsheng with a smile on his face and asked.

Cheng Jianghai was happy to see Yue Hongsheng express his opinion.

Otherwise, he would be incompetent as a vice president.

Yue Hongsheng didn't think too much, so he spoke frankly about the issues on his mind.

At present, Qiu Hai's investment in research and development is too high, and Yue Hongsheng feels very inappropriate about this.

Originally, he wanted to talk to Chen Jianghai about this matter early in the morning, but Chen Jianghai was busy these days and didn't come to the company very often.

Today I heard that Chen Jianghai had come to the company, and Yue Hongsheng rushed over immediately.

Hearing what Yue Hongsheng said, Chen Jianghai smiled slightly, and he guessed that this was what the other party wanted to say.

R&D investment of more than [-] billion a year is simply a waste of money in the eyes of others.

More importantly, can these more than one billion R&D funds really be fully effective?
I am afraid that Chen Jianghai himself is not 100% sure about this.

In other words, not all of the more than one billion R&D funds have been effective.

To give the simplest example, that is Mindray Medical Equipment.

Xu Hang and the others spent a lot of money on research and development, but the market response to the final product was not very good.

But Chen Jianghai didn't care at all.

When it comes to R&D, you always need to do more research and try more, and you always want to get it right in one step. How is that possible?

But in Yue Hongsheng's view, this behavior is a waste of money.

The most important point is that Chen Jianghai invests in so many fields that there are no rules at all.

If Chen Jianghai only invests in the home appliance industry, Yue Hongsheng has nothing to worry about.

Investing so much R&D funds at once was from a different industry. Only a person with a big heart like Chen Jianghai could do such a thing.

What Yue Hongsheng is worried about is that Chen Jianghai invests carelessly. When the money is spent, he does not get enough returns, which might drag Qiu Hai down.After Yue Hongsheng said his worries, he looked at Chen Jianghai nervously.

He asked himself that he knew the big boss's character and temper very well.

Once Chen Jianghai decides something, there is no possibility of changing it.

This year's financial expenditures are almost complete, and Yue Hongsheng wants Chen Jianghai to change next year's financial expenditures.

It's not too late to make up for it.

At least invest in R&D and don’t invest so much anymore.

Qiu Hai has stabilized now, and there is no need to spend so much money on research and development.

With such a sum of money, wouldn't it be better to expand the scale of production, create more products, and capture more markets?

Chen Jianghai smiled slightly and asked: "Hongsheng, I know what you are worried about, but have you ever thought about it, if Qiu Hai didn't invest so much money, would you be able to achieve today's results?"

Hearing this question, Yue Hongsheng couldn't help but frown.

Chen Jianghai obviously didn't want to change his mind.

"Mr. Chen, now that Qiuhai has stabilized, I think we can appropriately reduce our R&D investment and use it to expand production scale." Yue Hongsheng couldn't help but persuade.

Chen Jianghai shook his head and explained patiently: "Then you are wrong. Now is the golden time for Qiuhai to develop rapidly. We absolutely cannot be satisfied with the status quo and stand still."

"Mr. Chen, what do you mean?" Yue Hongsheng became more and more nervous.

From Chen Jianghai's words, Yue Hongsheng seemed to hear some dangerous signal.

"The short answer is that R&D funds need to be increased." Chen Jianghai suddenly put away the smile on his face and said with a serious expression.

What, not enough R&D funding?
Yue Hongsheng was immediately shocked by Chen Jianghai's words.

He quickly said: "Mr. Chen, the research and development funds we have invested now have reached more than one billion, which is already 30.00% of our profit."

"Hongsheng, that's not how the accounts are calculated. Foreign sales have not been included in the statistics yet." Chen Jianghai pointed his finger outside and reminded.

Yue Hongsheng still knew a lot about this area and couldn't help but argue: "Mr. Chen, the R&D funds of foreign companies are only about [-]% of net profits. Many domestic companies don't even have R&D funds. !”

It could be seen that Yue Hongsheng was a little excited. He felt that Chen Jianghai might have gone in the wrong direction.

But on this point, Yue Hongsheng did not lie.

Many domestic companies now have no expenditure on R&D funds.

After all, most domestic companies mainly rely on cheap labor to make money.

As for the real core technology, these companies have no access to it, so naturally they have no expenditure on R&D funds.

Even now, everyone's awareness of patents and technology is not strong enough, and the results produced by many corporate technicians are not valuable at all.

Chen Jianghai said in a deep voice word for word: "This is why Qiuhai can rise, but they will always be a small workshop."

Yue Hongsheng wanted to say something more, but Chen Jianghai waved his hand and said decisively:

"Okay, just do what I say! The research and development funds must not be reduced!"

In Chen Jianghai's view, only by continuously accelerating research and development progress can each of Qiuhai's products be at the forefront of the market. This is the best way for Qiuhai to maintain its core competitiveness.

Hearing that Chen Jianghai had made a decision, Yue Hongsheng obediently shut his mouth.

He knew that no matter what he said now, it was useless. Implementing it meticulously was what he needed to do.

"Mr. Chen, I hope your decision is right."

Before leaving, Yue Hongsheng couldn't help but say something.

Chen Jianghai just smiled slightly and didn't say anything else.

Yue Hongsheng has the ability to do things, but his vision is still a little bit behind after all.

(End of this chapter)