Text: Yu Yi
On March 28, Huawei held the 2021 annual report press conference. According to third-party reports, Huawei has built the best user experience of 5G networks in 13 countries, including Switzerland, Germany, Finland, the Netherlands, South Korea, and Saudi Arabia.
Huawei has signed more than 3,000 commercial contracts for 5G applications with operators and partners, and 5G has been commercialized on a large scale in manufacturing, mining, steel, ports, and medical care. Specifically, 5G toB has moved from industry exploration to scale replication, helping the digital transformation of more than 3,000 projects in 8 major industries. Covering manufacturing, mining, steel, ports, chemicals, cement, power grids, medical and other industries.
Science and technology enterprises in recent years in China is very popular, no matter what kind of science and technology enterprises, will receive great attention, and in the past two years some relevant departments to science and technology enterprises and research and development enterprises have also given great care. At present, Huawei, Xiaomi and other technology companies are working hard to develop and produce to catch up with the level of other countries in the world as soon as possible.
In addition to Huawei, there is another technology company in the mainland that can be said to be a Chinese technology enterprise that is truly going international and recognized by the world, that is, our domestic enterprise DJI. DJI's scientific and technological research and development strength is world-class, and it is the only company in China that can form a monopoly position in the industry, and its research and development of drones and other equipment is very popular in the global market, the company is valued at more than 166 billion, but it has not been listed. Why?
DJI's strength
In this era of highly developed science and technology, as long as someone starts to do it in many fields and makes a certain profit, there will be many people to follow suit. Although the direction is the same, there is an important factor that the latecomers cannot surpass the former, that is, the core technology. Especially in the research and development of unmanned aerial vehicles, the core technology of science is very important.
The founder of DJI, Wang Tao, is from the Hong Kong University of Science and Technology, and was very interested in drones and other products when he was a student, so that he wanted to engage in such an industry with his classmates, and in 2006, he and his classmates founded DJI Innovation Technology Co., Ltd. in Shenzhen. Wang Tao really likes the industry, he works more than 80 hours a week, an average of more than 10 hours a day, and few people can do this.
But it is precisely because of his risk and excellence that the group developed a civilian drone in 2013, which is light and agile and can take off anytime, anywhere, and the emergence of this product has given DJI a firm foothold. Because the performance of DJI UAVs is very strong, as well as high quality and high quality, in addition to being very popular in the domestic market, it also occupies a place in foreign markets.
Today, DJI has an 85% share of the global drone market, with sales points in more than 100 countries and regions around the world. Unlike most technology companies, DJI has basically mastered all the core technologies of drones. According to the data, the total number of DJI R & D personnel accounts for about 25% of all employees of the company, and DJI invests tens of billions of yuan in technology research and development every year.
This makes DJI's R&D speed and scientific research quality very high, and soon formed its own set of production and research and development system. To date, no other company has been able to catch up with or even surpass DJI. For a technology company, it has become a domestic giant that can monopolize the world, and its valuation even exceeds 166 billion, but under the trade-offs, DJI has not been listed for a long time.
The reason why DJI is not listed
First of all, in order to avoid the erosion of capital, the profit-seeking nature of capital will lead enterprises to take extreme measures to obtain profits. Some companies are muffled in order to make money, and eventually gradually decline, which is not conducive to the development of any technology company, which is also an important reason for DJI's reluctance to go public.
For a technology-based enterprise, DJI is sluggish in scientific and technological research and development. If it is suppressed by capital, the focus may not be on research and development, and it will also affect the overall layout of the company, which is fatal to DJI. The reason why DJI can become an evergreen tree in the world drone market is inseparable from the innovative research and development of core technologies.
Secondly, if DJI goes public, the United States will definitely hinder the development of DJI through some capital means, and even try to achieve capital penetration. Then the final result is nothing more than two: one is the gradual decline of DJI, and the other is that DJI is acquired by the United States. At present, many foreign companies are trying to acquire such powerful technology companies. Especially in the United States, if DJI goes public, it will face serious challenges, which exist not only in DJI, but also in the entire drone market.
And DJI is not short of money, and its profitability is still very strong. In the early days of its establishment, DJI occupied a leading position in the global drone market by virtue of its own six rounds of financing, which shows that the capital market is highly recognized for DJI's development. DJI, which received six rounds of financing, has a high entrepreneurial enthusiasm, which has greatly improved the company's profitability. The data shows that DJI's total annual profit has reached tens of billions of yuan, and listing is a superfluous choice for DJI.
If it is listed, the company's business information is transparent and open. But also in the face of competition from other drone companies, each listed company needs to disclose a large amount of corporate information, for the purpose of protecting investors, the regulator requires listed companies to disclose significant information within the enterprise. This includes financial information, major contracts and changes in equity. In this way, some business information that is not easy to publish will also be made public, and once it is mastered by competitors, it may adversely affect the enterprise. As Ren Zhengfei said: "The capital market is greedy, and few listed companies can become bigger and stronger!" ”
epilogue
DJI is highly competitive in the research and development of core technologies and is also favored by consumers in the world market. Moreover, in the general environment, the market for DJI drones is further expanding. For them, the funds obtained by profit are enough for the research and development of core technologies. Therefore, there is no need for listing financing, and the last thing DJI is willing to accept is the suppression of capital in business operations.
Enterprises that are tied up in their hands and feet are not far away in the long run. DJI can not forget the original intention, adhere to innovation and research and development until now, which is why DJI can have the current status. At the same time, it is also hoped that China Science and Technology Group can keep up with the pace of DJI, focus more on technology research and development, and contribute to the development of China's science and technology. So, what do you think about DJI drones?