Dong Mingzhu: Even if I lose all 2 billion, I will earn money by cultivating talents

In the second half of last year, Dong Mingzhu announced her entry into the chip field in a high-profile manner and established Zhuhai Zero Boundary Integrated Circuit Co., Ltd. with a wholly-owned capital of 1 billion yuan, with business scope including semiconductors, integrated circuits, chips and other businesses.

Recently, Dong Mingzhu talked about it in the "Character" column of Anhui Satellite TV. Gree is willing to invest heavily in chip manufacturing. Even if the investment of 2 billion yuan in chip making is not successful, it is worth it to train a team.

The host asked: "What is the standard for right and wrong in chip investment? Wrong or not?"

Dong Mingzhu responded, "I think right and wrong is about meeting the needs of your own products. As for how much money to invest, it is wrong to invest too much money, and right to invest too little money. I think neither is correct. It is good if the result can be fully reflected in the system control of your entire smart home and you can provide the best service."

The host asked, "You have to calculate the cost, right? You are an entrepreneur." Dong Mingzhu said, "Of course I have to calculate the cost, but I think my cost is controllable. Even if the 2 billion is gone, I think it is worth it. I have trained a team to prepare for the future."

Dong Mingzhu said, "The 2 billion yuan investment will definitely produce results, but we still need to think about whether a perfect result will be achieved in the early and mid-term."

The host asked: "Do you have any expectations for the results?" "I think it will work," said Dong Mingzhu.

Earlier, Dong Mingzhu stated at the shareholders' meeting that, regarding Gree's chip problem, we have been researching and developing it for three years, and now we have achieved some results, but it is still superficial and far from enough. Gree is determined to make chips and must do it.

This year, Gree plans to accelerate the research of chip technology and chip product development, focus on chip reliability and algorithm research, and complete the comprehensive replacement of self-developed chips. Dong Mingzhu also said that Gree air conditioners will be the first to use self-produced chips in 2019. Currently, Gree's self-developed chips have been mass-produced, and the goal of fully replacing the main chips of air conditioners with self-developed chips in 2019 may be achieved.

There is no reason why I can’t make chips with an investment of 50 billion!

In May last year, Gree Electric Appliances Chairman Dong Mingzhu announced that Gree Electric Appliances would not distribute dividends this year, which caused an uproar among shareholders. This was the first time in 11 years that Gree Electric Appliances announced that it would not distribute dividends. Subsequently, Gree announced in a high-profile manner that it would make chips. Recently, CCTV reporters interviewed Dong Mingzhu on these topics.

Dong Mingzhu said that even if there is no dividend in 2018, Gree Electric's average dividend rate has reached 44%. If Gree wants to develop in the long term, it must master core technologies.

The core technology that Dong Mingzhu mentioned is chips, and Gree has also been questioned about its investment in chip research and development.

Dong Mingzhu responded by saying, "I don't need the government to give me money. I will invest on my own. I must succeed in chip research. It's just a matter of time. My investment in chip research has not affected the development of my company, nor has it affected my profits. I would like to ask, if I made 150 billion today and my profit was only 5%, would you blame me? I have a profit of more than 7 billion, and I have made 15% now. I take 10% out for research and development. Is that not okay? If I don't have this profit, can you blame me? In the home appliance industry, my highest profit is only 7%. I (Gree Electric) is 15%, so I am the same as others, so I will take 7%. I put out more than 10 billion for research and development. There is nothing wrong with that."

Dong Mingzhu then gave a forecast of the investment cost and prospects of chip research and development: "I will invest 10 billion in 2018, 10 billion in 2019, 30 billion in three years, and even 50 billion three years later. There is no reason why I can't do it.