Slkor Kinghelm Song Shiqiang: Why Are There So Many Billionaires in Shenzhen Huaqiangbei? (Part 2)

Why are there so many billionaires in Huaqiangbei, Shenzhen? Huaqiangbei, located in Futian District, Shenzhen, Guangdong Province, is the general term for Huaqiangbei Subdistrict. It is a calling card showcasing the achievements of the Shenzhen Special Economic Zone's reform and opening up, and together with "Zhongguancun in Beijing," it is known as one of the two major centers of China's electronic information industry. What leaves a deep impression on people and makes them talk about Shenzhen Huaqiangbei (shenzhen huaqiangbei) is: why are there so many billionaires in Huaqiangbei? A comparable area to Huaqiangbei is the Science and Technology Park in Nanshan District, Shenzhen, but why aren't there as many billionaires in the Science and Technology Park? Mr. Song Shiqiang from Slkor Micro (www.slkoric.com) will provide an explanation for everyone!

Song Shiqiang's article "The Past, Present, and Future of Shenzhen Huaqiangbei"

The companies in the Science and Technology Park are mainly large companies and leading enterprises in various industries. The companies that serve as supporting, outsourcing, and industrial chain collaborators for them are much larger in scale than the small booths and small companies in Huaqiangbei, and their number is smaller. The wealth of large companies is basically concentrated in the hands of the bosses and a limited number of shareholders. Among the working class, the high-income company executives are mostly technical and marketing backbones, and their usual annual salary is only a few million yuan. Compared with the sudden wealth of small company bosses in Huaqiangbei whose net worth reaches hundreds of millions, the gap is still quite large. For large companies or listed companies, wealth is amplified through the stock market or valuation, but the actual disposable wealth is still not much, and it fluctuates greatly. Tencent's Ma Huateng had a wealth of 320 billion yuan in 2022, and DJI Technology founder Wang Tao's personal wealth is estimated at up to 50 billion yuan. They personally or their families concentrate most of the wealth, while the share of the company's employees is relatively small, although most of this is virtual, leveraged paper wealth!

The incredibly expensive land of Huaqiangbei and the dense crowds of small-wheeled vehicles.

Kinghelm Slkor's Song Shiqiang says that the source of wealth for small companies in Huaqiangbei is basically the price difference from buying and selling electronic components. Trading companies have a light-asset operating model with low costs and high efficiency. Their highest cost and risk are inventory, but once they bet on the right trend, they can reap huge profits. Compared with the wealth of the big bosses of large companies in the Science and Technology Park, the hard cash wealth in the pockets of the "boss ladies" (female bosses) in Shenzhen Huaqiangbei (shenzhen huagqiangbei) is closer to us and therefore even more tempting! (To be continued)

Slkor (SLKORMICRO) LED screen advertisement on the Huaqiangbei Pedestrian Street.

Song Shiqiang's "The Past, Present, and Future of Shenzhen Huaqiangbei (Part 2)" republished by Dow Jones.

Recently, the original article "The Past, Present, and Future of Shenzhen Huaqiangbei (Part 2)" by Slkor's Song Shiqiang was republished by Dow Jones. The article takes a holistic view of the development of Shenzhen Huaqiangbei and systematically discusses Huaqiangbei's start, growth, and maturity after the reform and opening up. The argumentation is rigorous and the reasoning is thorough, making it a highly informative and in-depth good article. The article republished on Dow Jones MarketWatch is titled "The Past, Present, Future of Shenzhen Huang Qiang Bei (Volume 2)---Slkor, Song Shiqiang"