Huawei's small move to achieve the small glory of China's industrial control industry

Huawei is very powerful in the field of communication equipment. Everyone knows that Huawei Hisilicon, Huawei storage, and Huawei mobile phones have also developed rapidly in recent years. However, if the clock is dialed back 15 years ago, Huawei’s move has inadvertently promoted. The development of an industry throughout China has contributed to the prosperity of an industry.

On October 31, 2001, after a friendly negotiation with Emerson, the company transferred the entire share capital of Shenzhen Ansheng Electric Co., Ltd. to Emerson for a total price of USD 750 million. After the transaction was completed, a group of Huawei people left, and established companies such as Huichuan, Yingweiteng, Sanjing and Qixi. It has created a boom in industrial control, optoelectronics, inverters and servos.

Mobeck was established to raise funds

The predecessor of Huawei Electric was originally funded by the postal and telecommunications system to form a new company with Huawei, and Huawei took the lead and led the operation. This is the joint venture established by Guangdong Province and Shenzhen City in 1993, Huawei and the 21 provincial capital city postal and telecommunications systems jointly initiated the establishment of Mobeck, Mobeck (this strange name is said to be taken from Morse, Bell, Mark The name of the inventor of the three communication technologies was the only subsidiary of Huawei at that time.

In 1993, Huawei's further development encountered a bottleneck in funding. At that time, banks were too poor to love wealth, and they would not give Huawei loans with little fixed assets and no reputation. The only way is to seek help from the society, so Mobeck, a joint venture between Huawei and 17 provincial and municipal telecommunications bureaus, was established. The company's total capital of 89 million yuan, of which Huawei invested 50 million yuan (have not been accounted for at all, if Ren Zhengfei has 50 million in hand, there is no need to establish Mobeck to raise funds), other telecommunications bureaus have invested a total of 39 million yuan. For the post and telecommunications system, this is to use their own funds to market on their own sites. Make yourself profitable and naturally go all out.

In this way, Huawei and the telecom bureau customers have formed a close alliance of funds and market, just like the two sides of the coin, while gaining funds on the other side to obtain the market. The funds were solved, the market opened, and Huawei made a big turn and passed the life and death.

In other words, in the name of Mobeck, Huawei raised 39 million yuan of hot money from the society, and used this money to develop and complete the C&C08 digital 10,000-gate program-controlled switch with a turning point. However, the cost of setting up this subsidiary is also very huge. Huawei promised to give investors a 33% return every year. In the past three years, Huawei has allocated 13 million yuan to shareholders every year. This is a weak Huawei at that time. heavy burden.

In March 1995, Mobeck had 100% repayment. The board of directors decided to incorporate Huawei's power division into Mobeck, allowing it to have independent hematopoiesis, independent development, and independent commitment to shareholders. But the risk of this decision is that if the company can't continue to provide higher dividends, Huawei will lose its trust in telecom shareholders, who are Huawei's big customers. However, looking for Huawei cadres, I could not find a suitable candidate who could provoke this burden.

As I said before, the establishment of Mobeck was mainly to solve the funding problem, but then it played an unexpected role, which is to establish a good relationship with a number of important customers. Before I took over, Mobeck had about 50 employees, usually mainly for Huawei, doing some zero-packages such as boxes, cables and cables. The first small switch HJD-48 developed by Huawei was outdated at the time, but it was still assembled and sold here. It can be said that Mobeck at that time was completely a parasitic enterprise of Huawei.

It has never been a truly independent company, so Mobeck has been in a state of being long and hungry. Every year, the dividends to shareholders, Mobeck can not get out, can only rely on Huawei's funding. Despite the heavy burden, Huawei’s words must be faithful, and all three years of dividends will be honored. This is a great advantage of Ren Zhengfei, and it is also an important reason why many operators trust Huawei.

By 1995, Huawei’s rural market had gradually opened up. The 39 million yuan raised by Mobeck had already completed its historical mission. If it could not survive, Mobeck could only become a burden for Huawei.

One stone number of Huawei's switch through the Mobeck channel quickly and low-cost impact on the national market, by 1995, forced the switch industry sales price from 200 to 300 US dollars / line down to 80 US dollars / line, postal system is also because of the industry-wide switch purchase The price has been greatly reduced and the telecom business has been rapidly promoted to the whole country. In the end, the whole society, consumers, post and telecommunications systems and Huawei's win-win situation were realized.

The “interests and interests” model was immediate, and Huawei’s revenue increased from 100 million yuan in 1992 to 2.6 billion yuan in 1996. Mobeck, which completed the mission this year, independently operated and sold Huawei power products, and later changed to Shenzhen Ansheng Electric Co., Ltd.

If we look at Huawei's sales for the past few years, we will find that Huawei's approach to cutting power is very correct.

In 1992, Huawei’s sales exceeded 100 million yuan, and in 1993 it was 410 million yuan.

In 1994, it reached 800 million yuan, and in 1995 it was 1.4 billion yuan.

From 1995 to 1999, the annual growth rate of program-controlled switches reached a staggering level. In 1996, there was even an explosive growth of 91.88%.

The growth of office switches was also the same. In 1996 and 1997, they reached 74.24% and 79.48% respectively.

The growth of communication hosts will definitely drive the growth of supporting communication power.

At this time, the communication power supply market is in a period of technological change, and the backward phase-controlled power supply is shifting to a switching power supply with high efficiency and small volume. Although the total market of domestic communication power supplies in the past was only equivalent to the sales of Huawei's switches in 1995, it should be synchronized with the switch as a supporting product. This is the basic judgment that the leaders of power companies should have. Their understanding is obviously distorted by their own emotions.

In fact, the development of communication power was not as pessimistic as people estimated at the time. Li Zhanshi, deputy secretary general of China Power Supply Society, provided the following data in an article: In 1995, the domestic communication power investment amounted to RMB 1.5 billion, and increased to 3 billion yuan in 1998. In 1999, the national communication power supply market capacity was 3.5 billion yuan. the above. From 1995 to 1999, communication power has more than doubled in just four years.

According to Li Zhanshi's article analysis, before and after 1995, the competition in the power supply industry has just begun, and the overall scale is gradually expanding: "After 1990, it is a period of great development of China's power industry. At this stage, except for the former Ministry of Electronics Industry. Other industries and systems, such as machinery, post and telecommunications, railways, electric power, military systems, etc., have power development and production, especially the emergence of township enterprises and private enterprises. There are thousands of countries across the country, and there are hundreds of millions of A few hundred million yuan of power companies. During this decade, a large number of foreign products and companies entered the country and occupied a considerable share, which intensified market competition."

Mobeck is not expected to start

At that time, almost no one could foresee the scale of the development of this industry and Mobeck a few years later. I think that this enterprise has a future, it seems that only Ren Zhengfei, otherwise he asked me to do "China's first" or "Asia's first"? Later, after I stayed at Huawei for a long time, I realized that Ren Zhengfei, the entire communication market, only had a rough judgment on the trend, or used Ren Zhengfei’s own words. Because of the inconsistency, he accidentally smashed into the industry and was able to fight hard. . I think this is the case at least in the early days of Huawei. The estimation of Mobeck’s goal is also generally proposed.

No one is optimistic about Mobeck. Almost everyone says that it has no future, and naturally no one wants to come to work at Mobeck. At this time, Huawei has gradually entered the track of benign development, and the momentum of rising is positive. However, in the eyes of Huawei, Mobeck is only the resettlement office of Huawei's family members. There is basically no benefit (the work is given by Huawei, the price is also set by Huawei, and the profit is very thin). The wages are generally lower than Huawei's. Waiting for citizens.

In September, more than 100 people in the Huawei Power Division were assigned to Mobeck, and more than 50 people from Mobeck had a total of 145 people. But for quite a long time, people in the power business unit were depressed. In their view, it was as if they had entered another book.

But the power market at the time was very missing. At that time, there were more than 200 power supply manufacturers, but the real development was only three or four. Others were buying and selling. In China, that is, Wuhan Wusanwu Factory is relatively strong. It is a state-owned old factory with annual sales of only about 300 million yuan. Foreign manufacturers have not yet entered.

At that time, Li Yuxi, president of Mobeck, also said, “The hundreds of domestic power companies are facing the entire market, and our parent company Huawei itself needs a lot of communication power. This natural big customer says less every year. Three or four million matching. Which power supply manufacturer has such an advantage? There is no one (in 1995, another communication manufacturer ZTE has not developed power)!"

So Huawei Mobeck began to work out with great fanfare.

At that time, Mobeck produced two types of power supplies: primary and secondary. The secondary power supply is all provided to Huawei, and the quality is still justified. Once the power supply was sold to the outside world, the quality problem was strongly reflected. In 1994, 40 million were sold in one year. As a result, whoever bought our power supply was unlucky. At the beginning, Huawei's offices in various locations also helped sales, and then they simply did not sell them, and all resisted. Ren Zhengfei once personally asked local offices to help sell them, and it was useless because selling poor quality power supplies would affect the sales of other communication products. The reason for the high power failure rate is studied. There are two main problems with the quality of a primary power supply: one is that the module is easy to burn out; the other is that the display is not ideal. After conquering the technical difficulties, the early generation of Huawei began another sales conquer, and finally opened the situation.

At the end of the year, Li Yuxi said that in 1996, Mobeck realized a sales contract of 216 million yuan and created a total profit of 50 million yuan. In one fell swoop, Mobeck changed from being dependent on Huawei to becoming an independent operation and contributing to Huawei. Enterprise, this is a huge improvement, a fundamental change. Mobeck grew up!

Ren Zhengfei's evaluation is: "Mobeck Power Company experienced the development downturn of contracting for three years, so that the shareholders of 17 provinces realized the opportunity of free development, and after unraveling the contracted ropes, they ran fast, not only achieved a considerable economy. Benefits, and laid the foundation for development in 1997. That is, in that year, Mobeck changed its name to Huawei Electric, with a registered capital of 700 million yuan. But habitually, Huawei still calls it Mobeck.

After that, there were some disputes between Li Yuxi and Huawei. In 2000, Huawei Electric and Huawei Technologies invested 90% and 10% respectively to establish Ansheng Electric. At that time, Huawei Electric's sales had already ranked first in the country.

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