bookmarkrole Chapter 144 Just How Profitable Are the Hardware Components of Hongyuan Flying Bird?
Chapter 144 Just How Profitable Are the Hardware Components of Hongyuan Flying Bird?
And so, all the reporters stared intently at Su Chen.
They wanted to get more details about Hongyuan Feiniao's specific revenue structure from Su Chen—Su Chen had just mentioned three levels of revenue, but how much did each level actually earn?
In response, Su Chen smiled and slowly explained the current order status of Hongyuan Feiniao's various business lines:
"Currently, we have received more than 5,000 letters of intent for the S1 flight control module, of which about 60% are from domestic drone manufacturers and 40% are from overseas customers."
Regarding H-Link relay base stations, there are over two thousand intended orders.
In addition, regarding in-depth technology adaptation and solution customization services, seventeen companies have already signed paid service intent agreements.
Upon hearing Su Chen's words, many people at the scene were shocked, and a question arose in their minds—how much profit do these things actually make?
The revenue from membership fees has already been calculated, and it was almost pure profit with zero cost. But what exactly is the profit margin of these hardware products? What are the selling prices? Many reporters at the scene looked completely bewildered.
"Mr. Su, what are the selling prices of these hardware products? What are their profit margins?"
Finally, a reporter couldn't help but ask the question that had been on their mind.
Su Chen pondered for a moment before speaking:
"The specific profit margin is a trade secret, but I can tell you the product pricing. The official price of the G1 industrial gateway is 9999 yuan, the price of the S1 flight control module is 1299 yuan, and the price of the H-Link relay base station is 4000 yuan."
Of course, strategic and senior members of the industry alliance will receive certain price discounts when making purchases.
"etc……"
A male reporter wearing wire-rimmed glasses quickly tapped a few keys on his phone's calculator, then looked up in shock:
"Mr. Su, that means 800 G1 gateways alone would generate 8 million in revenue. 5,000 S1 modules would generate 6.5 million. 2,000 relay base stations would generate 8 million."
Add to that the membership fee of 85.5 million that we just calculated...
Based solely on confirmed orders and membership fees, Hongyuan Feiniao's annual revenue exceeds 108 million?!
The reporter, looking horrified, stated his calculated conclusion.
Instantly, the scene fell into a deathly silence.
Then, the deathly silence was broken—everyone was plunged into a near-mad shock.
One hundred and eight million!
A startup company that's only been established for a little over a year, with fewer than 200 employees, is about to have an annual revenue exceeding 100 million?!
It's worth noting that, apart from DJI, the other top five drone companies in China have annual revenues of only between 100 and 200 million yuan.
How could Hongyuan Feiniao, a startup company, possibly catch up with established companies that have been around for more than five years?
What's even more shocking is that this 108 million is just a conservative estimate!
This is only the order of intent up to now, and does not yet include the new orders that may come in after the summit, the expansion into overseas markets, and the future commercialization of MEMS sensors!
If all these potential increases are taken into account, Hongyuan Feiniao's actual revenue this year will probably exceed 200 million!
Two hundred million!
For a startup, that's an astronomical figure!
Hung Yuan Flying Bird is probably the fastest growing company in the low-altitude economy sector.
The way everyone looked at Su Chen changed.
At this point, all the reporters discovered that this company was a leader in whatever it did—it had the best reputation in the industry for making flight control modules, it achieved a surge in membership by forming industry alliances, and it drove the entire industry crazy for its G1 gateway.
At this moment, all the reporters looked at Su Chen as if they were looking at an alien—how did this guy do it?
In response, Su Chen smiled faintly:
"Now that everything that needed to be said has been said, I'll head back now. After all, the research and development on the DRIE side can't stop."
Seeing the anxious reporters who still wanted to ask more questions, Su Chen ignored their attempts to stop him, waved his hand, and turned to walk into the elevator.
The reporters were left looking at each other in bewilderment.
But in an instant, all the reporters showed expressions of surprise—because the news they had gathered was just too explosive!
……
"Hongyuan Flying Bird: The Hidden Champion of the Low-Altitude Economy, the Secret to Its Estimated Annual Revenue Exceeding 100 Million"
This is 36Kr's in-depth report from that afternoon.
"From flight control modules to the industrial ecosystem, how did Hongyuan Flying Bird reshape the low-altitude industry landscape in just one year?"
This is Huxiu's cover story.
"Shocking! What's the underlying logic behind a startup with 200 employees generating over 100 million yuan in annual revenue?"
This is the top headline from TMTpost.
"G1 Gateway + Industry Alliance = Money Printing Machine? A Complete Analysis of Hongyuan Flying Bird's Business Model"
This is a 10,000-word article from the WeChat public account "Low Altitude Economy Observation," which garnered over 200,000 views within two hours of its publication.
In addition, major technology media, financial media, and even CCTV's financial channel evening news all reported this news.
That evening, major social media platforms erupted in discussion.
Many industry analysts discussed in the live broadcast room just how terrifying Hongyuan Feiniao's profit structure was, and why Su Chen's business model was successful, among other topics. These topics deeply aroused the curiosity of countless practitioners and investors.
One curious user even posted a question on Zhihu: "If Hongyuan Feiniao goes public, what will its valuation be?"
The most upvoted answer was: "Based on the hybrid valuation model of SaaS + hardware, a PS ratio of 10 is not excessive. If MEMS sensors succeed, a PS ratio of 30 would be more than enough."
For a time, Hongyuan Feiniao became the hottest name in the entire technology venture capital circle.
……
"Su Chen has ruined my life!"
Shenzhen, the headquarters building of Hangxindatong.
He Zhiqiang, who had just returned from a business trip a few days earlier and was ready to make a big splash, suddenly felt dizzy when he saw the overwhelming news reports.
He was originally full of confidence.
The LDCL 3.0 "100 Enterprises Plan" has been in preparation for more than two months, and plans to expand the number of LDCL licensed enterprises from the current 38 to 100 by the end of the year.
In response, Hangxindatong has offered a very attractive preferential policy – newly authorized companies will receive a 50% discount on their first-year authorization fee, and will also receive free technical training.
He Zhiqiang had thought the plan would go smoothly.
After all, the LDCL protocol has been working in the field of industrial-grade drone communication for five years, and its technological maturity far surpasses any competing product on the market.
But he never expected—
Just when he was about to launch the "100 Enterprises Plan", Su Chen suddenly appeared out of nowhere and created some kind of Flying Bird Industry Alliance.
If it were just an industry alliance, that would be fine; at most, it would cause him to lose some potential customers, but it wouldn't be a serious blow.
But the problem is that Su Chen actually managed to create the G1 industrial gateway!
Furthermore, the G1 gateway is forced to bind to the H-Link communication protocol!
What does this mean?
This means that all companies that have purchased the G1 gateway must use the H-Link protocol for their drones—and the H-Link protocol is completely incompatible with the LDCL protocol!
In other words, every additional company that joins the Flying Bird Industry Alliance and every additional G1 gateway sold means one less potential customer for the LDCL protocol!
Thinking of this, He Zhiqiang could no longer hold back his anger and burst out of his chest.
"Two hundred and seventeen! That Flying Bird Industry Alliance already has two hundred and seventeen members?!"
He Zhiqiang stared intently at the 36Kr report on his phone, his hands trembling slightly with anger.
Two weeks ago, he was still mocking Su Chen for having "only 44 members" and saying that "the price was too high and it was destined to fail."
In just two weeks, the number of companies skyrocketed from 44 to 217?!
And what about his LDCL 3.0 "100 Enterprises Plan"?
After a month of operation, only a handful of new companies have signed up.
Seven families.
Only seven!
What devastated He Zhiqiang even more was that he saw an even more fatal statistic in the marketing department's internal report—
Among the target list of the "100 Enterprises Plan", 23 companies that had verbally agreed to sign the agreement suddenly backed out in the past week.
The reason for their change of heart was the same—they switched to the Flying Bird Industry Alliance.
"Damn Su Chen! Damn Hong Yuan Fei Niao!"
He Zhiqiang slammed his phone onto the table.
He now finally understood Su Chen's strategic intentions—Su Chen never intended to directly compete with Hangxindatong in the LDCL licensing market from the beginning.
Su Chen intends to use a three-pronged approach—G1 gateway, H-Link protocol, and industry alliance—to completely squeeze out the LDCL protocol's space from the ground up!
Because once a company chooses the G1 gateway, it means it has chosen the H-Link ecosystem.
Choosing the H-Link ecosystem means giving up the LDCL protocol.
By abandoning the LDCL agreement, Hangxindatong lost this customer—and lost it forever!
Because the switching cost of G1 gateways is too high, once enterprises purchase and deploy G1 gateways and the corresponding H-Link base station network, they will not be able to go back to using the LDCL protocol.
This is not ordinary business competition.
This is a dimensional reduction attack!
Thinking of this, He Zhiqiang felt dizzy – Hangxindatong had invested five years in the research and development and promotion of the LDCL protocol, and was about to reap the rewards of large-scale commercialization.
As a result, Su Chen's industry alliance and a G1 gateway were about to uproot his five years of hard work.
"No! I absolutely won't let him succeed!"
He Zhiqiang gritted his teeth, picked up the internal phone, and dialed the marketing director.
"Emergency response plan activated! LDCL 3.0 licensing fees reduced from 50% to 70%! First year free! First year free, did you hear that?!"
"Also, contact DJI FlightCore's business team immediately. I want to discuss joint licensing with them—tell them that we can integrate the LDCL protocol into FlightCore 2.0 for free!"
He Zhiqiang's voice was distorted with anger.
He knew this was a risky move—free licensing meant that Hangxindatong would gain nothing in the LDCL business in the short term.
However, if this is not done, once the H-Link network of the Flying Bird Industry Alliance reaches a certain density, the LDCL protocol will truly have no future.
This is a battle for survival!
At the same time, external capital markets are also reacting rapidly—
Within two hours of 36Kr's report, the trading volume of Hangxindatong's stock on the New Third Board surged threefold.
But it didn't rise—it fell.
Astute investors have already realized that if the H-Link ecosystem of the Flying Bird Industry Alliance truly forms a "positive flywheel" as Su Chen claims, then the market space for the LDCL protocol will be significantly compressed.
The core business logic of Hangxindatong—obtaining long-term revenue through LDCL licensing fees—will be fundamentally shaken.
All the capital with a keen sense of smell has already begun to vote with its feet.
Hangxindatong is in grave danger!
……
Suzhou, headquarters of Bowei Sensing.
"Damn it! Damn it! Damn it!..."
At that moment, a middle-aged man was frantically smashing objects in the office. His eyes were bloodshot, and his expression was almost manic.
Because he saw on his phone that Hongyuan Feiniao, the company he hated to the core and wished would go bankrupt immediately, was not only still alive, but its annual revenue was projected to exceed 100 million!
"Damn Su Chen! Damn Hong Yuan Fei Niao!"
Fang Zhiyuan was so angry at Su Chen, who had caused him to lose more than 800,000 yuan.
When Su Chen was working at Bowei Sensing, Fang Zhiyuan secretly applied for a patent for the MEMS algorithm framework developed by Su Chen in the company's name, and then found an excuse to fire Su Chen.
Later, Su Chen sent a lawyer's letter demanding repayment. Fang Zhiyuan spent 800,000 yuan to find someone to forge research and development evidence to prove that the algorithm framework was Bowei Sensing's own research and development achievement.
Later, when Hongyuan Feiniao was besieged and killed, Su Chen had no time to investigate the matter, and Fang Zhiyuan finally breathed a sigh of relief.
But now—
Hongyuan Feiniao not only survived the encirclement and annihilation, but thrived on the contrary.
Annual income exceeding 100 million?!
This filled Fang Zhiyuan with both hatred and fear—hatred that Su Chen hadn't fallen, and fear that Su Chen might take the time to pursue the patent issue from back then...
"General Manager, something terrible has happened!"
Just as Fang Zhiyuan was going into a frenzy, there was a rapid knocking on the office door.
His assistant was knocking and shouting anxiously, clearly indicating some kind of emergency.
"Come in! What is it?"
Fang Zhiyuan, who was in a very bad mood, roared.
"Mr. Fang, Hongyuan Feiniao's legal counsel submitted a patent invalidation request to the Suzhou Intellectual Property Office this morning."
Furthermore, they also submitted a criminal complaint to the Economic Crime Investigation Division of the Suzhou Municipal Public Security Bureau... The target of the complaint is... you.
The accusations allege fabricated research and development evidence and infringement of trade secrets.
The assistant's voice trailed off as he saw the color draining from Fang Zhiyuan's face at a visible rate.
In an instant, Fang Zhiyuan's legs went weak, and like He Zhiqiang of Bodao Mobile, he collapsed to the ground with a thud.
His eyes were filled with deep fear.
Although he spent 800,000 yuan to fabricate research and development evidence, he knew very well whether that evidence could withstand professional forensic examination. There were too many logical loopholes in those fabricated experimental records and development logs.
Su Chen didn't investigate further back then because he didn't have time to pursue the matter, but now he has money, a legal team, and social influence.
Once Su Chen seriously investigates the matter, those fabricated pieces of evidence will be utterly worthless in the face of professional evaluation.
Given the feud between him and Su Chen, if the patent is ruled invalid and the forged evidence is proven—
He's lucky to have escaped unscathed; it's a miracle he escaped unharmed.
More likely, it will be behind bars.
Thinking of this, Fang Zhiyuan felt his hands and feet turn cold, and his body began to tremble involuntarily.
But no matter how terrified he was, the facts were the facts—
Forged evidence is still forged, and stolen patents are still stolen.
Some debts must be repaid sooner or later.