Hanwang Liu Yingjian: partial defeat of electronic paper books is still promising

Original Title: Untying Liu Yingjian In 1998, sensitive Liu Yingjian entered the first inflection point of Hanwang with handwriting recognition technology. That year, at the age of 45, he said, "Never take the road of Others." In June 2009, at the China, Japan and South Korea Science and Technology Ministers' Meeting, Hanwang Electronic Paper was presented as a national gift to Japan and South Korea.

In his tone, his determination and courage—a more imaginative proposition than technology—brought him to embark on the path to the top of the electronic reading mountain. But there is also some danger. In the following six months, Hanwang Technology quickly became seriously ill after its peak. Liu Yingjian and Hanwang Technology also ushered in its second turning point.

Liu Yingjian’s insistence on technology is still respectable, and it also means that he is in danger of being caught in the quagmire again.

After planning Li Jun’s text journalist Feng Qingyan and Han Wang Technology Co., Ltd.’s (“Hanking”) executives to stage their cashmere doors, a loyal Hanwang investor left a message in the stock bar saying: “The great national entrepreneur Liu Yingjian turned his face into a liar Liu. Adou."

In 2008, the global financial crisis struck, and sensitive Liu Yingjian listed the electronic paper book as the “No. 1 Project” to push forward. In June of the following year, at the China, Japan, and South Korea Science and Technology Ministers' Meeting, Minister of Science and Technology Wan Gang smiled and took electronic paper produced by Hanwang and gave it to representatives of Japan and South Korea.

In the following three years, Hanwang’s electronic paper book rushed to the top of the e-reading market. As always, Hanwang’s chairman Liu Yingjian was obsessed with R&D. He never dreamed that he had spent only 21 months from peak to low.

On March 3, 2010, the Hanwang landed on Shenzhen SME Board, which rose 96% on the first day. Liu Yingjian and his wife were worth more than 3.2 billion yuan on that day. Liu Yingjian was 57 years old.

On March 21, 2011, nine current senior executives of Hanwang collectively made a total of 87,106,700 yuan. On April 18, Hanwang released its first-quarter earnings forecast, which is expected to have a loss of 48 million yuan. This is also Hanwang’s second consecutive quarterly loss. In the secondary market, its share price has fallen from a maximum of 175 yuan to less than 60 yuan in the past 11 months (as of April 22).

Enter the memory key. In the second half of 2009, Apple’s founder Steve Jobs, who said “The people don’t read” to the electronic paper book, dismissed the idea. Apple announced in October that it will launch an iPad tablet with electronic paper books in the first quarter of 2010. However, Hanwang Electric Paper successfully resisted the impact of the iPad's first generation products with price advantage.

However, half a year later, the iPad 2 came out in a high profile, and the iPad’s first-generation products began to cut their prices. The price dropped drastically to below 3,000 yuan, and Hanwang’s electronic paper book immediately fell out of the market.

This is the beginning of the reversal of Hanwang and the beginning of Liu Yingjian’s tragic situation.

The tragedy is to destroy the best things. In Hanwang, the accidental and inevitable superposition triggered a lot of dissatisfaction among investors and public opinion. The questioning and clamor were higher than a wave.

Even more eye-popping, the Hanwang is at this critical juncture, forgetting that technology leadership is not the basic law that the listed companies win the trust of investors. They tried to explain that Hanwang, who lacks public relations skills, could not find a way to make public understanding possible.

Today after three months of deep turbulence, Liu Yingjian still insists on staying in the R&D department to work late into the night.

Don Quixote was cramped and cramped at Liu Yingjian’s office in China. In addition to the sofa tables and chairs, a refrigerator and a microwave oven were placed in the door. The old computer on the desk seems to silently tell the owner's own thick line character and the boss's great contrast.

Zhang Lei, Senior Assistant and Strategic Planning Manager of Hanwang, introduced the “China Economy and Informationization” and said: “Liu always solves the problem of food and clothing in the office.”

In Zhang Lei’s eyes, Liu Yingjian, who had staged the myth of making wealth, had a house and a car. He didn’t have to worry about the economy, but he was simple and extremely exaggerated. “Sometimes Liu used to wear socks in the company actually had holes.”

He had a hard time and experienced a very difficult time. He had been a pig mandarin duck, dug coal, experienced a series of unique events of the Great Leap Forward, big pot of rice, three years of natural disasters, and the Cultural Revolution. He also eats the leaves and it is now clear which leaves are delicious.

When he was a child, Liu Yingjian didn't like to talk. He was very scared to meet people and claimed to be “the body would unknowingly fight when he was born.” Until now, he still faces poor communication with people when facing the spotlight. Although introverted and unspoken, Liu Yingjian has a lot of Quixote ideas.

Liu Yingjian was full of fantasies and childhood interest. After reading Galileo, he wanted to be a scientist. After that, he hopes to seek medical advice, solve cancer problems, and take the Nobel Prize.

However, all his dreams came to an abrupt end just after the first grade of junior high school. The Cultural Revolution came. Liu Yingjian, who is eager to study, had to work with Other intellectual youth to face the two options of joining the army and going to the countryside. From the military family background, he naturally chose the former and became a soldier. He was 15 years old that year.

The background of the hard-working struggle of the soldiers has also made him one of the key elements in the development of the electronic paper industry.

The life of the military was organized in steps. He rose step by step from the head of the squad to the head of the station. "Liu has a deep feeling for the army. I also accompanied him to the old army for the first two days," said Zhang Lei.

Ten years after joining the army, Liu Yingjian, who usually “sees books like hungry people pounce on bread,” finally caught up with the 1978 military recruitment exam. “I still remember that when I sign up, my heart flutters and flutters, fearing to brush me down.” Liu Yingjian said.

Fortunately, he has become a college student in the computer science department of Nanjing Communication Engineering College with a score of 97. Later, he was admitted as a graduate student by the Chinese Academy of Sciences because he invented the patent.

This made him privileged to touch his brother Liu Chuanzhi. Of course, Liu Yingjian at this time would not have thought that one day he could become a typical case of ethnic entrepreneurs like Liu Chuanzhi.

“The feelings of a hungry person and a person who has not been hungry for a bowl of braised pork are very different.” The word Liu Chuanzhi mentioned in a letter written 100 years later seems to be Write to Liu Yingjian in general. The desire to improve life is the common aspiration of their generation.

However, Liu Yingjian and Liu Chuanzhi, who belong to the Chinese Academy of Sciences researchers who venture into the sea and step out of blood from Zhongguancun, have very different characteristics.

The industry figures, almost without exception, evaluated Liu Yingjian as an engineer and an old intellectual. Obviously Liu Yingjian is more obsessed with scientific research. From troops to universities to the Chinese Academy of Sciences, Liu Yingjian walks in the forefront of the world in the field of Chinese character recognition technology, and it is the mode of “technology, industry, trade and trade” that companies run. Liu Chuanzhi is more adept at employing and managing the “team with the team” and choosing the “trade and technology” path.

The long-term fermentation of the two character orientations also affects the development and growth of their respective companies and their future directions. It is precisely because of different owners that Lenovo and Hanwang’s development trajectory is quite different.

“It is not difficult to conclude that Liu Chuanzhi and Liu Yingjian are masters of management and one is technical genius.” An industry expert commented on the difference between Liu and Liu.

At the beginning of Hanwang's becoming famous, the outsider’s mainstream view of Liu was: Liu Yingjian, who took off his military uniform at the age of 42 and started his business at the age of 45, was like the Chinese native Don Quixote, who dreamed of riding a thin horse and rusting his hands. Spears create the ideal of surrealism. However, he seems to have the mentality of being helpless and comfortable with the cruelty of real life, which may have deviated from the real road to life that he is committed to.

This assessment is also not completely fabricated. The military's stubborn and realistic, loyal, and petty spirits evolved into a permanent part of Liu Yingjian's character.

Liu Yingjian once disclosed in an interview with the media: “In 1992, I discovered the first barrel of $100,000 through the invention of handwriting recognition technology and immediately bought a villa.” At the time, he had no concept of investing in entrepreneurship. Life became an urgent desire at that time. At that time, Lenovo Group has already embarked on the fast track of development. It can be seen that Liu Yingjian and Liu Chuanzhi are not one category of people.

However, Liu Yingjian is more likely to hang around for the first time in Rolls-Royce and his first trip to Japanese restaurants. He described the car he couldn't name at the time as "saw a long car." Afterwards, after being invited by the customer to enter the Japanese restaurant, he was bowed in two rows to 90 degrees. Frightened, "I didn't see it then!" he said.

Big windmill or giant?

The Western Cavaliers Don Quixote took the giant windmill as a giant and rushed to fight it, causing him to be black and blue. However, China's Don Quixote Liu Yingjian prefers to use the sword to identify the Chinese character. He heads into the field of electronic paper books and desires to become the king.

On June 28, 2004, Liu Yingjian led Hanwang to move into Hanwang Mansion, which has not been completely completed.

This day is said to be his auspicious day for Mr. Feng Shui's calculations. He believes that Chinese traditional culture will bring him good luck. However, just as he gave electronic technology to his hard work for the past 10 years, if he wants to continue to surpass himself, he must find the Hanwang’s new time, place, and people.

Liu Yingjian is very urgent.

In 2005, at the CES exhibition in the United States, Liu Yingjian discovered the new E-ink electronic ink screen at the exhibition. This electronic screen is almost the same as the display of paper, no radiation, no flicker, no eye damage. So he excitedly brought this latest technology back to Zhongguancun.

For this rather cutting-edge field, more than 80% of employees think the risk is too high, and the voice of the company's internal opposition accounts for the majority. However, Liu Yingjian believes that the e-ink screen has the characteristics of being able to replace paper, and has the trait of becoming a mainstream. It is a good idea to try it. Then it began to quietly develop such a product.

At this point, the electronic paper book industry is a big windmill or a giant in the end, Liu Yingjian did not have the bottom. Just as Liu Jian mistakenly entered Jia Baoyu's bedroom, this area is a novel world for Liu Yingjian. He did not realize that the electronic paper book brought him soaring wealth and future fate.

Hanwang before the launch of electronic paper book products, in addition to B2B's recognition technology, also provides companies with complete solutions such as face recognition attendance systems and access control systems. In the consumer-oriented market, there are more products such as drawing boards, handwriting boards, and business cards. In 2007, about 70% of the sales of Hanwang's more than 300 million yuan came from consumer products, and only about 15% came from technology licensing revenues with partners.

However, Hanwang does not seem to have really grown up. According to its 2008 prospectus, the company achieved operating revenues of RMB 180 million, RMB 200 million and RMB 230 million in 2005, 2006 and 2007 respectively, and achieved net profit of RMB 12.73 million, RMB 18.41 million and RMB 27.23 million. If you remove the tens of millions of tax rebates that the company receives each year from the value-added tax refund policy of the national software industry, it is very difficult to think of Hanwang as a well-established high-tech company.

Despite this, with the sale of the Hanwang electric paper book in October 2008, the Hanwang entered an unprecedented "raising period with rockets."

"Jiang Yufei and Liu Yingjian are good friends. They were considering making electronic notebooks around 2005, but due to the endless stream of new formats, we eventually chose to do tablet computers, and Liu chose to make electronic paper books." Operating official Ryu said.

"The Hanwang chose a very good time node to cut into the electric paper book." Industry experts believe that "the fire of Amazon's Kindle in the United States has not yet been burned into China, Apple's iPad has not yet listed physical products, Hanwang actual It was borrowed from the Kindle and iPad.” Yang Hong, Ph.D., president of the industry’s old brand, was also quite impressed: “Liu Yingjian’s luck was very good. Dr. Yi entered the e-book field seven years earlier than Hanwang but was easily bent by Hanwang. Road overtaking."

Although it seems that Liu Yingjian looks like a tourist who has picked up a pearl on the beach, and his peers' assessments seem to be flawed, this does not affect the industry's appreciating of his eye-catching selection of electronic paper books.

Liu Yingjian himself said that he had regrets. The first generation of electronic paper books did not cover any of Hanwang's core technologies. Even the handwriting function did not exist. The Hanwang only completed an assembly work. Liu Yingjian said: "It's been 10 months late. You can't be late. You must occupy a position first and pick up the banner of the domestic e-reader industry. Then, you will add handwriting and wireless Internet access to the next generation of products." Strong market demand to a certain extent accepted this immature product.

His unique insights on technology made him look like an adventurous move that has had unexpected results. Although Liu Yingjian is now ridiculed as “a sheep is obviously a sheep, he is always dressed up as a wolf.” At the beginning of the Han Dynasty's entry into the field of electronic paper books, he was hailed as a “great national entrepreneur” by himself, and he himself More willing to stay in research and development department to do research.

In 2009, according to the Hanwang Financial Report, a total of 270,000 electronic paper books were sold, which accounted for about 50% of the total domestic sales market. Hanwang quickly became the first brand in the domestic market, and Liu Yingjian successfully circled the land.

The Hanwang at this time released all the powers like a nuclear bomb explosion. The great heat of electronic paper books also accelerated the company's listing.

Hanwang, which started the listing process back in 2005, continued its twists and turns until electronic paper products were launched. The Hanwang was successfully listed on the SME Board of the Shenzhen Stock Exchange and raised 1.1 billion yuan.

The listing also allowed Liu Yingjian to turn from a small husband and wife owner to a billionaire.

When public opinion fell on the ground to decorate the Hanwang, an expert questioned the electronic paper book industry: The Chinese e-reader market is taking off, but Chinese companies have no unique advantage in this field. They rely on Taiwanese manufacturers for e-ink screens, rely on telecom operators for their channels, and rely on publishers for content. And they also have to face the impact of the iPad and other new generation products, then the electronic paper book will be marginalized?

After all, this voice is too cool. The rapid success of the electronic paper book enabled Liu Yingjian and his supporters to quickly find a road leading to their dreams. However, Liu Yingjian, who was thinking about developing and improving his management system, did not know that he was like a frog in warm water, but the water has gradually become hot.

In May 2010, the stock price of Hanwang soared to a record high of 175 yuan. The Han Dynasty at that time also entered its peak period, followed by a slump and an overcast of nearly a year. Some people commented that the Hanwang was short-lived. Some people even began to predict that the electronic paper book industry would die in the near future.

An industry expert who is familiar with Liu Yingjian is very dissatisfied with the media and the analysis agency to “open the elevator” to Hanwang. He said: “The Hanwang was simmered by the media at that time and was used by the organization. Liu Yingjian, who came to the stage, was not ready to deal with the media. He is a kind of honest personality, unspeakable, and often the ugliest. One side exposed to the public without knowing it."

"Objectively speaking, he was suddenly like a poor person in Mark Six. He did not quickly adapt to and navigate this Hanwang empire, which was suddenly enlarged by the capital market." A media source analyzed.

At this time, Liu Yingjian was like the "Soldier Assault" in the Xu Sanduo, was hard into the new camp, the result can only be turned back and forth after the legs to fall.

Soon, news unfavorable to Hanwang came. Apple iPad sold 28 million units in 28 days, which undoubtedly made Hanwang rely on the business model of this single product. Liu Yingjian, who is incomparably confident in the technology of electronic paper books, is sitting on the felt.

"He made a big mistake at this stage," said an industry source. “From the 43 new projects in a year to the blind investment in smart fixed-line projects, to the heavy paper money market, Liu Yingjian lost himself in the strategic direction.”

“Liu Yingjian may not be aware of this issue. The rapid expansion of Hanwang has made it impossible for him to learn and consolidate,” said a blogger on Sina Weibo.

On May 18 last year, Hanwang confidently launched the TouchPad tablet. On the day of the press conference, two executives of Hanwang raised two sledgehammers and threw crystal clear crystal apples. The broken apple scattered in one place almost caused the guests on stage to fall and the host had to jokingly ask people. Remove the broken apple dust. When Liu Yingjian himself interviewed the media, he also compared the Apple iPad to "a toy."

This was seen as a nonsensical speculative farce. Liu Yingjian of media dignity was satirized as "a person who is good at marketing and hype." Afterwards, Zhang Lei recalled: “On the day of Apple, Liu, who was unaware of anything, was dragged to the scene by the subordinates. In the face of the camera, he actually gave up accusations in order to safeguard the subordinate's face and was seen by the outside world as a person completely different from the real character. ."

Today, Liu Yingjian sat in the office of Hanwang Building located in Shangdi Software Park and admitted that “socialism is not my long term”. Most of the guests he personally wants to meet are suppliers and technology partners. This is clearly not a matter within the board of directors of a listed company.

Liu Yingjian, who once fantasized about using the terminal to force content and the platform, said that "The technological innovation of the Hanwang is the best, and who is competing with the Hanwang, when big players like Founder, Shanda and China Mobile have to flow into the industry of e-books. It's just my life."

However, he also believes that the above-mentioned Daxie and Hanwang are all cooperative partnerships. This is the state that the electronic paper book market took off quickly in 2009.

Liu Yingjian's use of terminals to force content and service illusions is based on the popularity and scale of e-paper books such as calculators, and e-readers that leave content and services before ushering in the blowout of the mass consumer market. Only a duckweed.

Although the Hanwang has already begun to lay out the content platform - Hanwang Online Bookstore, but this is a very deep water. The martyrs who died on the beach are numerous, and Hanwang's online bookstore, which currently costs more than 30 million yuan, is not profitable.

A person in the digital publishing community who had discussed cooperation with Liu Yingjian revealed: “Liu Yingjian’s feelings are that people are in a hurry. They are eager to do a good job and get things done. He also realizes that they must inject new models to help companies in their heyday. He consolidated the position of Hanwang in the industry."

The feelings of trying to do good things and accomplish things can be understood, but not every employee can understand them. Some Hanwang employees actually can't easily distinguish between the priorities of the work in this atmosphere. Over time, the executive power and communication skills of employees will be weakened.

This divergence of decision-making and implementation has also laid the ground for further deepening the crisis.

After crossing the waves, Xiang Yu fired the most magnificent building at the time - A Fang Palace. Hanwang Electric Paper also wanted to burn a traditional publication that distributed ink incense. However, after a short-lived explosion, the dramatic misfortune of being burned by Apple's fire can be described as “snapping crickets, and the yellow tits are behind”.

Faced with questions about future thinking, Liu Yingjian said frankly that he is still optimistic about electronic paper books and he is still convinced that Hanwang's entry into the e-book space is not a gamble. “There is no problem in the general direction.” The previous ups and downs were simply for lack of experience in tuition fees. The insider said that the main reason for the poor performance of Hanwang was the purchase of a large number of electronic paper screens last year. In fact, not long after the iPad began to cut prices, e-ink paper also drastically reduced its prices. The rapid changes in the industry led Hanwang to spend a lot of money to buy a high inventory.

There is no shortage of executives from Hanwang who have been suing suppliers and blame the “supplier’s fraud”. Liu Yingjian said: "The purchase of raw materials can only show my own wrong judgments and can not blame others."

There is also the "Liu Liu faction" that although the first round defeated, but Liu Yingjian's killer, that price weapons have not yet come up. Will price reductions be the last of Liu Yingjian's "seven kinds of weapons" and the most powerful weapons?

Liu Yingjian: After the storm, the text journalist Jin Hao suffered a powerful impact from the iPad. In the first quarter, the company lost 48 million yuan, and was caught in the “high-level cash” storm. The Hanwang in the eyes of the storm passed a roller coaster-type trail. A few days ago, Hanwang's chairman Liu Yingjian first spoke to the media, and disclosed to China Economy and Information Technology that he had been exhausted for nearly six months. "I admit to playing a partial defeat," he said.

In March 2010, Hanwang Technology Co., Ltd. (referred to as Hanwang) was listed on the high profile and became the first company in the concept of China's electronic paper book. Its Chairman Liu Yingjian has also become a hot spot for capital and media. However, in the first quarter of 2011, the sudden loss of the quarterly newspaper and the widespread doubts on the electronic paper industry under the iPad-led tablet computer impact placed Hanwang and Liu Yingjian at the heart of the public opinion furnace.

Li Yi, secretary-general of the China Mobile Internet Industry Alliance, believes that the Hanwang "had encountered the impact of a comet impacting the earth" in the first half of this year. Liu Yingjian himself also said that the negative news that came after him felt like he had lost a piece of meat. "But heart function is OK."

In a dialogue with Li Qiangqiang, deputy managing editor of China Economics and Information Technology, Liu Yingjian said, "I hope Hanwang will ease in the second half of the year."

Partial defeat Li Qiangqiang: In the recent half-year, various voices in the industry have revolved around Hanwang. Some people say that criticism of Hanwang is exaggerated or over-interpreted, and there are also some analyses and judgments based on industrial trends. What we are more concerned about is what kind of situation did you spend during this time?

Liu Yingjian: The problems of Hanwang are mainly reflected in the financial aspect. The first-quarter financial report showed that Hanwang had a loss of up to 48 million yuan, which is a very unfavorable news for a listed company. In terms of market competition, the electronic paper book of Hanwang’s main business was hit by the price reduction of Apple iPad. From a local point of view, I was defeated.

The Hanwang started with recognition. I only entered the field of electronic paper books three years ago. Prior to this, whether it was in the field of stylus, text king or face recognition, I was considered to be a general winner. This is not self-proclaimed (laughs).

Those products are industrial applications, and consumer electronics market competition is sinister. In the confrontation with the iPad, the King defeated. But victory and defeat are commonplace, and many companies beaten by Apple, such as Motorola and Nokia.

There is nothing wrong with this e-reader's strategic direction. The digitization of newspapers and periodicals is a general trend. Hanwang Book City is a content distribution platform built to accommodate the digitization of future newspapers and periodicals. After 10 years, most digital books and newspapers will be presented to readers through terminals.

After the setbacks, we did not abandon R&D while rethinking the lessons. We will adhere to this strategic direction (e-reader).

Li Qiangqiang: Do you think it was a "partial defeat", did you expect this loss before?

Liu Yingjian: Nothing at all.

Li Qiangqiang: This is very problematic.

Liu Yingjian: To be honest, I did not expect it to be so serious. I did not expect the iPad to cut prices so drastically. When I made electronic paper books, I moved forward step by step, starting with the relatively simple N510, plus the N518 with handwriting, and the N618 launched early last year. This is a constantly rising track. However, the subsequent 8-inch electronic paper book is similar to the size of the iPad, priced at about 3,400 yuan, much higher than the iPad dropped to 2,888 yuan, almost completely blocked, a large amount of advertising fees have gone.

If you can predict that iPad will drop so much, I will definitely lower the price. To a certain extent, Apple is the essence of the US IT industry. Its integration with various industries has been very successful. Counting up in the consumer electronics industry in the United States is also such a great leader, and we must learn modestly.

To be listed again, Li Qiang Qiang: Before the listing, you are very low-key to do the industry market, quietly do their own thing, have not had any problems. But now it's time to go public. The problem seems to have suddenly been exposed. Didn't you adapt to the listing yet?

Liu Yingjian: After the listing, the business conditions of the company became transparent, and the capital market had a large amplification effect. After Hanwang released its first-quarter and second-quarter statements last year, due to outstanding performance, stocks soared, and the maximum rose to 175 yuan.

Li Qiangqiang: This is what you did not expect?

Liu Yingjian: This is definitely something I didn't anticipate. If I knew it earlier, I would set the issue price higher (laughs). This is the amplification of capital, and it is also not encountered before the listing of operating companies. At that time, the higher the stock price, the better, but no one thought that the higher the climb, the worse it would be. It was also because of the (listing) amplification that stocks fell sharply after this announcement. It can thus be seen that the amplification of the capital market is an important factor to consider when operating listed companies.

Li Qiangqiang: I don't know if it is difficult. If you come back, will you choose to go public?

Liu Yingjian: Ha ha ha.

Li Qiangqiang: If you can predict this kind of trouble after listing.

Liu Yingjian: Frankly, it will still be listed. If it is not listed, when Hanwang experiences cash losses or large cash flows (when cash is needed), it is easy to fall into difficulties. After the listing, the cash flow gap can be quickly replenished.

The transparency of the financial situation brought no pressure to the management team. In addition, the lessons I learned from this incident are very profound. It taught me how to rationalize inventory management, how to judge the situation, and what to look out for in the consumer electronics industry. This is very important to me. This is a tuition fee.

The rapid growth of enterprises also has great pressure. Our revenue has doubled from 230 million yuan to 580 million yuan, and then to 12.3 billion yuan, which has doubled. At this time, logistics, manufacturing, etc. have exceeded their original management capabilities. Therefore, ERP was launched urgently last year. .

Li Qiangqiang: This amplification is still within your tolerance.

Liu Yingjian: For me, the advantages outweigh the disadvantages. I have more funds invested in R&D. In the second half of this year there will be a lot of new products released, the number of which is unprecedented in the history of Hanwang. Including, not long ago, the Hanwang also released a handwriting double touch technology in the United States, which caused a sensation in the United States.

The market for electronic paper books in the United States is very good (compared to China). The sales volume of US electronic paper books was 12 million units last year, and this year's sales are still very good.

Li Qiangqiang: The performance of Hanwang’s pre-losing losses and inventories are largely due to the fact that you have previously purchased a lot of raw materials that are overpriced, and you haven’t sued suppliers when you’re most difficult, or you’re simply ruining your contract. Some people comment that you are too "honest."

Liu Yingjian: The success of a product or a field is definitely because it is in a good ecological chain. The digitalization of newspapers and periodicals is a major trend in the future. There are various roles such as component suppliers, terminal vendors, delivery platforms, and content providers. This industry is driven by Hanwang, so I should pay more than other manufacturers. My books pre-installed in electronic paper books are genuine and the software used is also genuine.

In addition, the cancellation of orders by customers also made Hanwang unprepared. The supply of screens needs to be four months in advance. In order to cope with large quantities of supply, we have purchased a large number of screens, but customer orders have been cancelled. This is the cause of inventory.

Hanwang's powerful and unprecedented Li Qiangqiang: Any product has a life cycle, and the life cycle of information products is short and shorter. Now the voice of the industry is also saying that the electronic paper book must be a transitional product, and its historical mission that it should undertake is about to be completed. How do you see the prospects of this industry?

Liu Yingjian: I do not agree with this point. The decline is short-lived. March was the time when the annual meeting got together. In previous years, this was the best month for sales of electric paper books. However, this year was hit hard because many companies chose the iPad as a gift for the annual meeting. In May, sales of electronic paper books will gradually improve. The electronic paper books and the iPad's customer base are not the same, and (overlapped) are also beginning to differentiate. There are a lot of electronic paper books and tablet computers are not the same place, such as very power, do not hurt the eyes, portable, etc., you go out with it for a month without charging.

It is a product that is very subdivided and specifically read. It will always exist. I went to the United States a while ago and discovered at the airport that there are many more people using paper books than tablets.

Li Qiang Qiang: Before I chatted with you, I also heard opinions from some professionals in the industry. I think the future of e-readers is only one: rapid price cuts, rapid popularity, and occupation of the mass market. However, there is a doubt about this: What is the existing channel system when the profit is very low? How do you ensure that they don't centrifuge?

Liu Yingjian: Hanwang has its own production base and its production end is relatively flat. Even if the price is low, we will have a basic profit. We have suitable living space and will not lose money. My channel business will certainly have a good living space. Can you say that Mengniu Breakfast Milk has no money to earn? impossible. At the same time, the potential of this market is still very large. As a leading company in this industry, I have more chances of earning profits.

In the past, I had a dream when I was working in the industrial market. I wanted to be the boss of a big market and a big industry. Now it is finally realized. I circulated a piece of land in the field of electronic paper books, which is very valuable. After the price cuts, some companies withdrew from this market, and I discovered that Hanwang’s position in this industry is even stronger. So, although it is now suffering losses, the Hanwang is still worthy of.

Because of the losses caused by inventory and price cuts, after the sale of backlogs, there is no loss when new products are introduced. This loss is temporary and I will be able to ease it soon.

Li Qiangqiang: In the field of electronic paper books, the industry has always had three voices. The terminal is the king, the platform is the king and the content is in control. Which one do you prefer?

Liu Yingjian: This is related to the stage. The terminal will initially dominate, followed by the platform. Because the platform can stick to users. In the end, the content is the longest maintained. The Hanwang has to seize two of the entire chain, one is the terminal and the other is the content (Hanwang Book City), keeping the first-mover advantage. My own question is clear to me. I know what the future is like.

I can't stand this year, but the finances are not good. I have to do a deep review. Now it's just being cut off and not hitting the heart. I feel uncomfortable and under pressure. However, the power of the Hanwang is unprecedented. Apart from the electronic paper book, the drawing board, face recognition, business card pass, text meter Scanners and other pens have a leading share in the domestic market. Before the King of Han was praised, and now it was crippled enough, we must learn to adapt (laughs).

Li Qiangqiang: After getting used to the industry market, what is the biggest gain in entering the mass market now?

Liu Yingjian: Hanwang's DNA is suitable for the mass market. Previously, Hanwang pen had many channels in IT stores across the country, which laid a good foundation for the promotion of electronic paper books. After the price reduction, the sale of Hanwang at the counter in Zhongguancun was very good, and the (customer) was much larger than before the price reduction.

Not Li Qiangqiang: What was your mood when you just saw the report "The 9 executives sold their stocks?"

Liu Yingjian: These executives are founding employees. They have great expectations for listing. Selling stocks to improve their lives is also part of their plan. I learned that they were thinking about a problem when they sold their stocks. The highest value of Hanwang was 175 yuan. When they sold, the price was much lower than that price. In the future, they will regret it. (laugh)

Li Qiangqiang: In this case, are you keeping it short?

Liu Yingjian: I don't care for short. Stock trading is a matter of personal operation. They can operate according to law. However, their sell-offs have had a negative impact on the company and the brand, which is worth our deep reflection.

Liu Yingjian was born in 1953. In 1968, he joined the army as a communications officer. In 1978, he was admitted to the Department of Computer Science and Technology, Nanjing Communication Engineering College. In 1982, he graduated from the university and was assigned to the third communication group of the General Staff Department to engage in technology development work. In 1985, he began research and development of Chinese character recognition. In 1993, Hanwang Technology was established as the president; in 2010, Hanwang was listed and became the chairman of the company.