Wen / Zhong Wei
Source / connection insight (ID: lxinsight)
This is not what people know as business and helmsman.
Compared with the achievements in business and the position in science and technology enterprises, people are unfamiliar with the name and story of its founder Wang Laichun. But that won't last long.
Since the completion of several big acquisitions a few years ago, it has already attracted the attention of the outside world. At the same time, with the expansion of its territory and the rising market value, Wang Laichun's attention has also increased.
In October 26th, Reuters reported that Foxconn's parent company Hon Hai Group has set up a working group to defend the increasingly sophisticated influence of Chinese mainland electronics manufacturers. In this regard, Foxconn Group response: false news.
Whether true or false, this news has revealed the power of Lixun in recent years.
Tuyuan Lixun precision official website
Today, Lixun has successfully captured this important customer of apple, and has launched a challenge to Foxconn to compete for Apple's global supply chain market. The rapid development of Lixun has gained the recognition of the capital market, and its market value has surpassed that of Foxconn.
However, the former partner became the enemy, and the former partner became the competitor. This may be something that Gou did not expect or ignore.
Many people were deeply impressed by a scene in the TV drama "working girls":
After Zhao Xiaoyun left, Lin Sheng's subordinates came in and told him that hundreds of female workers had stepped into the car of his competitor, Jiang Sheng.
Like Zhao Xiaoyun, Wang Laichun, who spent 11 years at Foxconn, finally chose to leave. The difference is that Wang Laichun chose to work alone.
Back 32 years ago, Foxconn entered the mainland and established its first factory. At that time, China's electronic industry was at the starting point of taking off, and Gou Taiming was the one who seized the opportunity. Today, as the world's largest generation of factories, Foxconn's supremacy is no doubt.
Wang Laichun was one of them when she was 21. She only went to junior high school and worked as a housekeeper after graduation. As one of the countless migrant workers who came from rural areas to big cities, she had few choices.
Foxconn factory environment is bad, collective sleep big shop, bath can only go to the construction site of the cabin, often cut off water and power, and even the water quality is so poor that the cooked rice is red. The work on the assembly line is not easy. In order not to delay the construction period, it is normal to work overtime and stay up late.
In the never-ending assembly line, many female factory workers have lived in this way. Wang Laichun's story is an atypical representative and also legendary: in 11 years, Wang Laichun rose from a female worker to a section chief at the highest rank of mainland employees in Foxconn. Finally, she left Foxconn to establish Lixun precision, which was listed on the Shenzhen Stock Exchange in 2010, and has become a competitor that Foxconn can not ignore.
In the story of Wang Laichun, Gou Taiming is an indispensable character. Wang rarely gives interviews, which makes it difficult for the outside world to trace his origins with Gou. However, at that time, Foxconn had just entered the mainland market, and Gou often went to the front line and gave lectures. Wang Laichun, as the highest ranking mainland employee, would inevitably meet with him.
In the process of Wang Laichun's establishment of Lixun, Gou Taiming and Foxconn appeared frequently.
However, in the initial IPO prospectus of Lixun, Zhengwei precision under Guo taiqiang, Guo Taiming's younger brother, appeared. In the prospectus, the shareholding of major shareholders before the issuance is as follows: 89.17% of the shares held by Lucent, 7.75% of the credit investment, and 3.08% of Fugang electronics. Among them, Fugang electronics, the third largest shareholder, belongs to Taiwan Zhengwei group, where Guo taiqiang is the chairman.
Foxconn's first factory in mainland China was Shenzhen ocean precision computer connector factory. In the early days, lichen was a small enterprise that could only do connecting wires and connectors. Foxconn became an important customer of lichen in the early days. Its location in Dongguan, Guangzhou, Kunshan, Jiangsu, Yantai, Shandong, is also around Foxconn plant layout.
Most of its early orders came from Foxconn. From 2007 to 2009, the company's revenue from selling products to Foxconn accounted for 47.73%, 56.46% and 45.38% of the current operating revenue, respectively. Foxconn was the largest customer.
Source: Foxconn official website
In a sense, the rise of Lixun is the final result of Guo Taiming and Wang Laichun taking what they need. If Foxconn is short of capacity and manpower, then Lixun will provide it. If Wang Laichun wants to let Lixun survive, Foxconn's order is essential.
As for the similarity between the business model of Lixun and Foxconn, Wang Laichun once told the media that Foxconn's working mode and business philosophy had a great impact on her. Lixun had experienced many setbacks in the development process, but she insisted on operating with a set of management model she learned from Foxconn.
Get rid of dependence
If Wang Laichun, a young man, could tell where cook is at Apple, it may be difficult for her to do so. But after many years, they stood together and talked happily.
At the end of 2017, cook finished the fourth Internet Conference held in Wuzhen, and then went to apple supply chain companies all over the country. Among them, Kunshan base of Lixun is an important station.
On this day, cook and Wang Laichun, wearing blue overalls, walked in the lichen factory and watched the operation of the entire production line. From time to time, cook stopped and sat beside the female workers to see how they put the parts into the headphones. Wang Laichun stood behind them. There was a smile on both faces. Cook then shared the photos on his micro blog.
At this time, Lixun was already the production factory of Apple Wireless Headset airpods. After airpods was launched in 2016, it exploded the headset industry, becoming Apple's biggest explosive since the iPhone. For a while, sales doubled, apple needed to ease the pressure on production capacity, and Li Xun seized the opportunity at this point in time.
The second on the right is Wang Laichun
If we go back to the growth path of Foxconn, we will start from connector to vertical integration, merger and expansion, and at the same time, we will cooperate closely with apple from the beginning to the end, forming a complete set of successful mode. As a latecomer, Lixun must not always rely on its original business and orders from Foxconn.
It was eight years ago that Lixun bypassed Foxconn to conquer apple. Wang Laichun once recalled that when she saw the internal connection line, the product supply line, when she had an opportunity, she took the plan to persuade apple to become the main supplier of Apple step by step from the observed supplier.
Wang Laichun finished the story lightly, but for Lixun, it is not easy to go to this step.
In order to win Apple's orders, Wang Laichun successively acquired several technology companies: in 2011, Lixun spent 1.077 billion to acquire 60% of Kunshan liantao The latter is one of the main suppliers of Apple's connection line; it also acquired liantao electronics to enter the field of tablet computer connector and enter the industry chain of Apple's tablet computer connector; it also acquired Colton electronic technology to enter the smartphone industry.
The cooperation with Apple also started with IMAC's connecting wire and expanded to tablet, watch, headset, charger and other categories. The biggest customer that Lixun relies on is no longer Foxconn, but apple.
The production process of airpod is not simple, with high precision and difficult module integration. Cook has praised the production process of richen, which is considered to be the recognition of its yield (product qualification rate), which also tests the production process of enterprises and the executive power of employees.
For this reason, Lixun has invested a lot of cost to improve the production line. At the same time, it is currently managing 140000 employees. Dongfang Fortune Securities once mentioned that the turnover rate of its production equipment reached 11.1, which means that the equipment utilization rate and management level of Lixun are higher than those of its peers.
At that time, Lixun precision expanded 11 airpods production lines to 15, surpassing the previous Apple's important supplier yingyida, and replaced them.
Official website of apple
In ten years, the performance of Lixun has increased 60 times. In the year of listing in 2010, Lixun precision had a revenue of 1.011 billion and a net profit of 116 million. By 2019, the company's revenue has exceeded 62.5 billion, with a net profit of 4.7 billion.
At the same time, its recognition in the capital market is gradually improving. As of October 28, 2020, the stock price has risen from about 1.48 yuan / share at the time of listing to 59.36 yuan / share today, with a market value of 414.5 billion yuan. In technology stocks, the market value of Lixun has been second only to Ningde era.
But the harder part is how to keep the relationship going, after all, when Apple doesn't need it, it's abandoned. Only by constantly improving their ability in precision manufacturers and forming barriers can they become an indispensable part of each other and defeat other competitors.
When Wang Laichun pushes Lixun to continue to expand its territory, it is inevitable that he often confronts Foxconn.
In apple iPhone's foundry, there are three companies, namely, wee, Ho Ho and Foxconn, all located in Taiwan, China, and have factories in Chinese mainland. Foxconn accounts for more than half of the iPhone OEM share.
Jiangsu weft is an investment holding platform, its main asset is Kunshan Wei Xin, the latter is the only iPhone foundry production base in Chinese mainland.
Lichen's acquisition of Wistron will extend its OEM to iPhone products, which is equivalent to directly competing with Foxconn. In the past, the orders received by Lixun after each acquisition were snatched from competitors, but now the object of contention has become Foxconn.
It is also hard for Gou to ignore the signal of a declaration of war. According to the Taiwan media "Economic Daily", the acquisition of Lixun caused a shock to Taiwan's related industries, and Gou was shocked and highly concerned about the follow-up development. Meanwhile, Hon Hai group, which is under the charge of Gou Taiming, also said that it should actively deal with the industrial risks brought about by the acquisition of Wistron assets by Lixun precision.
Guo Taiming, tuyuan network
However, wetrong did not enter the OEM business of Apple's high-end machines before, and it was forced to stop work due to quality problems. Lixun needs to expand further, but also needs to transform Wistron in order to further compete with Foxconn.
Lixun is still growing, but it is growing fast enough to alert Mr Gou and Foxconn. At present, the market value of Lixun precision is about 402.4 billion yuan, surpassing Foxconn parent company Hon Hai group and Foxconn A-share listed company industrial Fulian.
Lixun precision production line, source of its official website
When it was first listed, the revenue of Lixun precision was only 1.011 billion yuan, and the profit was only 116 million yuan. Its financial report shows that in 2019, the operating revenue of Lixun precision is 62.52 billion yuan, the gross profit is 12.1 billion yuan, and the total assets are 49.38 billion yuan.
In contrast, the data of Foxconn's A-share listed company, industrial Fulian, are 408.7 billion yuan, 33.6 billion yuan and 205.6 billion yuan respectively. Lixun is several times different from industrial Fulian, even less than the parent company of Foxconn, Hon Hai Precision.
And in the following time, Wang Laichun must be a competitor that Gou fears and pays close attention to. What kind of surprise will Wang Laichun have? And how will Gou respond?