Great Wall Computer in the margin of loss to sell assets for transformation

Great Wall computers have had countless glories-as early as 1985 the Great Wall computer developed the Great Wall of China's first advanced Chinese microcomputer 0520CH, the United States commented at the time, "It is China's first attack on computer capital in the United States." During the 10 years from 1986 to 1996, The Great Wall was the eldest of the domestic PC industry, and in 1992 the King of the Great Wall group was called "a Chinese who let Bill Gates stop."

Today, the forefront of China's PC industry has not seen the Great Wall, what makes the Great Wall of computer glory no longer? Those who did not keep pace with the market "former heroes"-founder, the same side, seven-Xi also gradually fade out of the consumer's view, the Great Wall of the computer fading, the PC industry is the typical miniature of the cold wind?

The Great Wall computer (000066,SZ), once seen as a benchmark for China's PC industry, now has to transform to survive.

August 30 this year, the Great Wall computer handed over the first half of the report card: Revenue as high as 36.325 billion yuan, net profit is only 4.1753 million yuan. In contrast to Lenovo, which was founded in the 80 's, the Great Wall computer's performance was even more dismal. Lenovo computer revenue in the first half of 8.8 billion U.S. dollars, net profit of 174 million U.S. dollars, and become the world's largest PC business.

Great Wall Computer was forced to embark on the road of transformation. The company announced in the newspaper, the company actively choose to gradually withdraw from the consumer market, to promote the industry-oriented application market transformation of the business.

At the same time, to "revitalize the existing assets, optimize the asset structure", the Great Wall computer yesterday (September 16) announced that 62.7072 million yuan to sell its 23rd floor real estate in Beijing, the Great Wall Building, the company is expected to the financial situation and operating results of the specific impact of about 26 million yuan.

But the transition is not easy. In less than 4 months after the launch of the world-wide Tablet PC product, the Great Wall computer released the Gpad, Gbook two series of tablet computer products. But so far, it is hard to see the tablet computer produced by the Great Wall.

Zhou Genchen, director of the Great Wall computer, said in a recent event that information security will be one of the steps of the company's industrial transformation and upgrading, but the company's employees are not optimistic about this direction.

Give up the whole consumer market

2012, due to the bankruptcy reorganization of major clients, Great Wall computer performance, the net profit loss of about 240 million yuan, became the most serious loss in recent years; in the first half of this year, 36.325 billion yuan revenue only bring 4.1753 million yuan net profit, still wandering in the margin of loss.

Jiping, deputy director of computer Systems Research at IDC Consulting, said in an interview that the Great Wall computer sales channel is weak, resulting in high sales costs.

According to the 2013 report, the Great Wall computer only sales cost has reached 1.755 billion yuan, an increase of about 362 million yuan, an increase of 25.96%. 2012, the Great Wall computer sales cost of 3.33 billion yuan, accounting for 79.75 billion yuan in operating income 4.18%, 2012 management costs and sales costs, about 3.33 billion yuan, accounting for the income ratio of 4.18%.

In the context of the decline in the PC industry, a "comrade" has withdrawn, the Great Wall computer has to give up the countless attempts to save the "façade" business.

Zhou Genchen said in a recent event that the Company believes that information security will be one of the important areas of future product competition, and therefore is one of the steps for upgrading the company's industry.

For this transition direction, the employees interviewed by reporters said that the current security computers are sold to the government and units, the military and public security departments, other brand computers are from the mature product line cut down a piece to do a safe computer, the Great Wall is from scratch, weak competitiveness.

Last transition was half a shot.

In the new business attempt, the Great Wall computer is not no effort, but many failed.

As early as 2001, laptops had just appeared in high-end business markets. Great Wall Computer in 2000 began to try laptop computer research and development, production and sales, but only half a year of experiments did not achieve the desired results. In the next 3 years, the Great Wall computer division of the notebook department, despite the 3 years, the Great Wall Computer division replaced 5 leaders, but the notebook computer business is still no improvement.

November 2003, has been in office for two years, the Great Wall computer President Sun Jicheng announced that the Great Wall computer will enter the notebook market as an important strategic deployment, the formal formation of notebook computer division, the promotion of high-end notebook as its main direction.

At the time, however, rivals who had already started were occupying their own territory in the market. The data from HC International market research show that in 2003, China's notebook computer market to achieve sales of 1.1819 million units, Lenovo to 182,200 units, 15.42% of the market share in the first place, IBM, Toshiba and followed by the market share is higher than 10%.

"The Great Wall notebook computer, because the quality is not good, the price is expensive and so on, the market basically cannot see." But is still doing, made after basically did not go to the city, often as a gift. An engineer who had worked on the Great Wall computer told reporters.

Failed to try pad business

January 27, 2010, "Apple Godfather" jobs released the ipad, prompting the IT vendors to focus on the tablet computer. April 2010, the Great Wall computer followed the ipad, released the Gpad, Gbook two major series of tablet computer products. According to the May 2011 Great Wall Computer Bulletin, the Great Wall computer through a fixed increase way to raise 1.818 billion yuan, to invest 80 million yuan to build flat projects and production lines.

"We've also tried to develop a tablet that was done by 3 teams, 2 of which were completely self-developed, and a team that outsourced early-stage programming to other companies and achieved some results," he said. However, the market product updates too quickly, coupled with equipment, personnel, technology and other issues, before the sample and final samples have become inventory. Employees who had been in the department told the Daily Economic news reporter, "because the inventory is too large, performance evaluation unqualified, in order to save costs, then have to lay off staff." ”

Up to now, in the major websites on the list of tablet computer sales, have not seen the Great Wall computer tablet computer list.

The smartphone share will stabilise around 70% in the next few years, according to IDC's recent data, while the tablet's share of 20%,PC sales will remain at 10% per cent for about 2015 years.

The transformation of Great Wall computer is imperative. How does the "Elephant" class enterprise in this industry analyst "Dance" under the new trend? The reporter tried to the Great Wall computer transformation problem many times to call the Great Wall computer and the card, are told to travel outside or are meeting, not convenient to answer the phone.

An interview with the Great Wall computer A middle-level cadres in the Great Wall of computer transformation and the future of the road, said a meaningful words, "this key to the power of the leadership, and even more senior leaders how to see, the leadership will have a turnaround."

The source of the Great Wall: ignoring the change of strategic frequency of high level turnover

The Great Wall computer transformation behind, people have to think, also was founded in the 80 's computer enterprises, why Lenovo became the world's first, the Great Wall computer is struggling?

"Can not deny that the Great Wall of the industry chain in the domestic PC industry is relatively complete, in the first few years, has been focused on independent development design, the Great Wall team also has many of the elite in this field." Motherboard, power supply, expansion card, monitor, Great Wall computer. But focusing on technology and ignoring market expansion makes it uncompetitive in the face of end markets. The engineer, who declined to be named, said in an interview with reporters.

Lost channel PC business is difficult to support the façade

In the 90 's, the global PC industry exploded in growth. "When the cake gets bigger, all the manufacturers benefit, and when the market is huge, the sales channel is more important than the core competitiveness." "An employee who worked in the Great Wall for 10 years told reporters.

"Lenovo does well in the domestic PC market because of its good marketing and channel advantage." In the township, the town, the village Lenovo brand has covered. "Liang, an analyst with the consumer electronics industry, said in an interview with the Daily economic news.

But the channel of Great Wall computer has been regarded as the most important reason to hinder its development. Bai Qiang, general manager of the former Great Wall PC division, said in an interview with the media, "this used to be the Great Wall of the short board, if you do not think the Great Wall of the computer channel is not good, we can not explain the Great Wall of the computer is not good, not to mention, this is the Great Wall before the largest short board, the entire industry, the company, including the staff own consensus ”

PC has been regarded as the "façade" of the Great Wall group. In order to keep this "façade", Great Wall computer since 1996, frequent replacement of the general manager of the computer division, until the last few years, turnover continues, "too frequent turnover of management" is also interviewed staff as one of the reasons for the decline of the Great Wall computer.

An old employee who works in the display division told reporters, "Management change too quickly, too often, all kinds of ideas collide with each other, resulting in confusion of staff ideas, display division within 10 years changed 7, each leader has different ideas, such as a leader is sales origin, then may be their own direction of management bias sales.

Only 6 years from 1996 to 2002, the Great Wall Computer Division has replaced 5 general managers, and frequent human events have made the already weaker channel of the Great Wall weaker. In 2002, Wu Qingsheng, general manager of the computer Department of Commerce, as an example, after Wu took office, the Great Wall of the computer channel from the national general agent system into a regional total agent system, and Wu Qingsheng resignation before and after the regional total agent system returned to the national general agent system.

2001, the Great Wall PC sales less than 200,000 units, the market share of less than 5%, failed to enter the top ten of the domestic PC market.

The Great Wall computer engineer interviewed by reporters was talking about the traditional desktop of the Great Wall Computer said that the Great Wall of computer now no amount, procurement can not get lower prices, price control and affect the volume of further expansion, which has become a vicious circle, "now is to sell a Taiwan, one months do not do anything to compensate 300,000, But if you sell 50,000 units in one months, you'll lose more, so you can't do it.

Buy the Crown Jie display performance face

Great Wall computer to display manufacturers Crown Jie technology acquisition, also be questioned by the media.

2009 Great Wall Computer Direct and indirect possession of the Crown Jie technology 27.02% Equity, Crown Czech Technology report merged to make the Great Wall of the 2009 financial Results Book number, operating income and total assets for the first time to break through the billion mark, which operating income of 22.741 billion yuan, growth rate of 451.57%, Total assets of 27.673 billion yuan, growth rate of 768.06%; The net profit attributable to the shareholders of the listed company reached 437 million yuan, the growth rate reached 1979.71%, and the net profit of deducting the non-recurrent profit and loss which belonged to the shareholders of the listed company was also positive again after the first negative value in 2008. From-18.2255 million yuan grew to 10.9817 million yuan. This year, also is the Great Wall computer company History performance performance best year.

But the performance quickly face, from 2010 to 2012, the Crown Czech technology performance all the way down, the first half of this year even lost two quarters, the medium-term operating income of 34.671 billion yuan, but the net profit is only-278 million yuan, become one of the business that pulls down the Great Wall computer overall performance.

For the decline of the technology performance, the reporter interviewed the relevant people have said that the global desktop has already declined, resulting in the need for supporting display of the inevitable decline. Home appliance industry veteran Observer Liu Buzhong to reporters that crown Czech technology has not achieved good results of the fundamental reason is that the Great Wall of the parent company's own strength advantages are not obvious, can not be imported technology, capital, brand and competitive profit model, for example, "The Great Wall of computer channels and competitors in the weak, So that the crown-Czech technology in China's three or four-line cities in the market has not much to build.

Change the net profit of senior executives sit on a roller coaster

and the acquisition of Crown-Czech technology, is only committed to building a "national aircraft carrier" of China's electronics to its industry for a number of resource allocation integration.

Since the second half of 2004, the new owner of the Chinese electronics into the Great Wall was put on the agenda, the Great Wall computer executives, President Sun Jicheng, Vice President He Xizhen has resigned, the Great Wall computer Vice President Zhou Genchen fill the President vacancy. In the middle of 2004, CEC deputy General manager Chen succeeded Luming as the new chairman.

The reorganization of the internal resources of the group resulted in the diversion of staff. Several reporters interviewed the Great Wall internal staff have said that the Great Wall staff quality is generally very high, but the company mismanagement, "after the staff diversion, the Great Wall staff morale collapse, the people's instability, this intangible assets are discarded, a large number of employees left."

2005 China Electronics in the year, the Great Wall computer in the previous two years net profit average annual growth trend of 92.52%, realize the operating income of 2.596 billion yuan and 346 million yuan. But since 2006, with the Great Wall computer strategy changes frequently, 2006 to 2011 net profit growth rate is 84.68%, 97.39%,-79.88%, 1979.71%, 50.22%,-53.48%.

Industry boss of the gold 10 years

September 4 afternoon, Shenzhen Huaqiang North, a heavy rain came to let this has begun deserted business district appears more desolate.

In million business computer city at the end of the second floor, a purported 10-year-old Lenovo Computer store owner of the brand desktop placed in the shop most of the location, "Now there are still some computer brands are also left Lenovo." Wall？ That was a brand 20 years ago, right? ”

In fact, the Great Wall computer in 1985 on the development of China's first advanced Chinese computer Great Wall 0520CH, the domestic authoritative media will be evaluated as "caused the birth of an industry." After nearly 30 years, the Great Wall computer in the 2013 interim report on the core competitiveness of its enterprises, still use this honor to prove that it has "strong technical innovation ability."

Some people say, after the Great Wall 0520 machine came out of the 80 's, the Great Wall and the wave of such state-owned computer enterprises, live most moist. "The first Great Wall of computer customers are large state-owned institutions such as banks, these institutions through one or two times a year selection will be to buy, but can participate in the selection will be only the Great Wall, wave and the East China Sea these 3." An old employee who worked for years on the Great Wall computer said to reporters, "If you do not choose these few, you will not get the government's purchase compensation." "It is said that at that time a PC price of about 50,000 yuan, the profit can reach 10,000 yuan."

With the opening of the IT market in the 90 's, the penetration rate of the domestic PC market is rising rapidly, and the market share of domestic PC manufacturers is rapidly decreasing. Data show that by the middle of the 80 's, the computer industry's share of state-owned enterprises fell to 10%~20% as high as 70%~80%,1990 years, while the share of foreign-funded enterprises was as high as 84.9%.

Despite the market changes, the Great Wall computer still relies on its advantage in the commercial market to keep its position. "In 10 from 1986 to 1996, The Great Wall was the eldest of the domestic PC, and it had considerable influence in the commercial market," he said. According to the above staff, in 1992, Bill Gates first China line is to sign a cooperation agreement with the Great Wall, when the Great Wall group chairman of the King also was called by the U.S. media "a Let Bill Gates stopped the footsteps of the Chinese people." Speaking of the glorious history, these employees are still quite proud.