200 million yuan hard to solve TD's thirst "not profitable" re-mail branch to seek venture capital

Chongqing Heavy Mail Branch (Group) Co., Ltd. (hereinafter said: "Heavy mail Letter Branch") is in the TD Chip products market synchronization in the big city. Although the lack of dual-mode chip products has seriously restricted the development of the post-mail branch.　　"June 23, the former president of Chongqing University of Posts and telecommunications, the current chairman of the Nie Neng to accept this reporter interview, said, but the company has found alternatives, that is, with other companies of the GSM module and TD Module Integration, the Ministry of Communications has agreed to this program. After the two-mode constraint is resolved, meeting with the various VCs will become one of the new tasks of the post-mail branch, because Nie Neng did not meet the previous 160 million yuan financing. "Ready to introduce 200 million-300 million yuan venture capital next year, mainly for the upcoming new generation of mobile communications, the country's major special and small-scale industry mergers and acquisitions."　　"Nie Neng said.　　Up to now, the heavy Mail branch in the TD Research and Development total investment nearly 200 million yuan.　　Dual-mode chip short board as one of the earliest engaged in TD technical standards and mobile terminal research and Development unit of the Heavy Mail branch, but was TD dual-mode chip caught by surprise. At present, the main products are "tong-core" and "Tong-core No. Second", has not yet had dual-mode chip products.　　And its competitor T3G, the exhibition of technology and so on in the early 2004 has begun this research and development. "Over the years, the Mail branch has no energy and no power to invest in the development of GSM, and it was not clear which operators to obtain TD's license, which caused the heavy Mail branch in the dual-mode chip field lag behind the main reasons."　　Nie can explain, from the establishment to 2007, the heavy Mail branch only in the TD Research and development investment of about 150 million yuan, and the cumulative loss of more than 70 million yuan. As of 2007, the Fund channel of the Heavy Mail branch relied mainly on four aspects: the annual profit of engineering company and design company, when the company was founded, the public offering was 30 million yuan. "It's pretty much now," he said.　　"Nie Neng said.　　This is a serious constraint on the market performance of the heavy Mail branch. Announced in May this year, China Mobile 650 million Yuan TD Terminal special incentive funds winners, core technology, exhibition and days??　　Technology (T3G) three chip manufacturers jointly shortlisted, heavy mail branch but Mingluosunshan. Nie Neng explained: "This is mainly because there is no GSM, and this is exactly what China Mobile needs, and they want to be able to provide this year, but our products will not be available until next year the fastest." "This March 12, the post-mail branch and Infineon have reached a cooperation agreement on GSM-related technologies and intellectual property rights," he said.　　Reporter learned that the two sides of the mode of cooperation, heavy mail branch will buy Infineon Technologies in GSM, and then integrate the technology into its research and development of TD chip, this cooperation is expected to be completed in 2010. "' Tong-core third" is the TD-enhanced and TD/GSM dual-mode, this chip will be developed early next year, the second half of next year can be commercially available.　　"Nie Neng said. Nie said that the current if the double-mail letter branch of the product smoothly put on the market, will bring a certainMarket share is beneficial to the next financing plan. Financing selling Point "from the perspective of investors, the investment opportunities in 3G industry chain mainly look at the company's technical advantages and product market-oriented ability."　　"A local PE person in Chongqing told reporters that the heavy Mail branch is one of the participants in TD standards, from a technical point of view is an advantage." "But industrialization may be a difficult one. "The PE people said that now everyone is very optimistic about the prospects of 3G, but there is no denying that this is a burning money industry, long-term view, the market performance may be very good, the near future will not be too much performance." "" So the best investment is the company with a phased research and development plan, the existing products after the market, can provide a certain amount of cash flow to the company, in the next 2―3 years can be a product upgrade.　　"The PE person said, specific to a company, you need to see the company in the past and future bidding performance of the operator, and the relationship between the operators and so on." For the industrialization of capacity, Nie Neng said: "In the past we have to TD Technology development as the center of gravity, at that time the market has not appeared, so it is not the problem of industrialization." But now no matter from the company's structure, the concept of personnel are carrying out the idea of industrialization. "In addition, the heavy Mail branch has been integrated with state-owned capital, the next step will be combined with the diversification of capital," through the strength of capital and technology to facilitate the integration of the company into the direction of industrialization.　　"Nie Neng said. "There is no need to worry about this," says Nie Neng, who is thought to be a college-owned, market-capable and industrialized-less-than-chip producer. "In Nie's view, the school background of the enterprise, will be more emphasis on technology."　　Sun Microsystems Company, Cisco was founded by the university background, the precedent proved that the background of the enterprises in the industrial, commercial capacity can also be done well.　　Nie Neng also said that in addition to solving the dual-mode problem, it will also play a UPA advantage in order to bring the product to occupy market share to help. In his view, the mobile network will be upgraded to UPA by the end of the year to next year, which is an opportunity for the re-mail branch.　　At present, in the Td-hsupa testing work of the Ministry of Industry, the UPA terminals are mainly provided by the heavy Mail branch, then the products will have certain performance in the market.　　The investment opportunity NIE's plan table, the strong introduction capital also is mentioned the vital position, because the fund question has been puzzling the heavy mail branch "the Magic Spell".　　2000, when the letter was founded, the TD Technology as an intangible asset assessment, the value of 30 million yuan, Chongqing post and Telecommunications Engineering Communications Research Institute, engineering companies to assets as a contribution of 30 million yuan, and then to the social IPO 60 million yuan. "In the next few years, we have tried a few venture capital, but because the TD market development has been unclear, the results are inconclusive."　　"Nie Neng said.　　Things have turned around in 2007, but they have been short-lived. In July, the heavy Mail branch was able to sign with Hong Kong time Rich Investment GroupMake an agreement. The two sides agreed to cooperate to form a dedicated TD-SCDMA Mobile terminal core chip research and development and related products industrialization enterprises.　　Re-mail branch to the TD-SCDMA technology and intellectual property rights and other business injection into the proposed joint venture, Hong Kong when the rich to 300 million yuan in cash capital, both sides accounted for 50% of the equity. However, the marriage ended in failure.　　In January 2008, Hong Kong's FTSE announced that the two sides had failed to reach a consensus on the valuation of TD-SCDMA technology prior to the terms of the agreement, and therefore declared an end to their original cooperation. Then, at the end of April 2008, kaiming company was exposed to a broken capital chain and ceased operation. "Their strong shareholder background has come to this end," he said.　　Nie said. "Kaiming fell, the Ministry of the State concerned began to pay more attention to the development of TD chip, that can not let other enterprises repeat the mistakes of kaiming, and then the Ministry of Industry and Zhongqing active planning, by the Zhongqing to take urgent measures, Chongqing science and Technology venture Investment and Yu Fu company shares 160 million yuan.　　"Nie Neng said. The two modes of cooperation, the establishment of Chongqing Heavy Mail Branch Communications Technology Co., Ltd., heavy Mail branch to TD-SCDMA technology, intellectual property rights and other intangible assets priced 160 million yuan into the joint venture, holding a joint venture company 50% of the equity, Yu Fu Company and Chongqing Science and Technology Wind appeal to hold 50% stake.　　In addition, the Zhongqing also through the Three Gorges Guarantee Company to provide 80 million yuan loan guarantee for the heavy mail branch.　　Although the heavy Mail branch last year chip sales revenue only millions of yuan, but according to Nie Neng's plan, the new company was established, Chip sales in 2009, the goal is to do 60 million yuan, sales costs in 20 million yuan. Nie Neng said that the country now has a "new generation of mobile communications," the major special, the Ministry of Information has informed Chongqing to prepare supporting funds, it is estimated that the recent approval down.　　The project's research direction is an enhanced TD, that is, TD follow-up development, the other is LTE, in fact, this is the long-term evolution of TD. "Next year we will be financing 200 million to 300 million yuan, has been negotiating with a number of agencies, now the industry is improving, companies follow the investment negotiations, the valuation can also improve a lot." This time, we will choose the strategic investors who can help the company in listing, and will not consider the industry investor unless it is a large communication enterprise in China.　　Nie Neng said that after the success of the financing of some small mergers and acquisitions to make up for some of the company's deficiencies, such as some of the mobile phone design of small companies. But the PE personage says, to PE, the company that has not realized profit is not a good investment target, it is difficult to pass in the Investment decision-making committee. "I think the investment institutions are mainly optimistic about the technical advantages of heavy mail branch, these institutions should be very specialized VC, they are the company's technical route selection, team personnel research and development ability, so willing to burn money." ”