Slkor Kinghelm Song Shiqiang: Why Are There So Many Billionaires in Shenzhen Huaqiangbei? (Part 6)

Huaqiangbei is located in Futian District, Shenzhen, Guangdong Province. It is the general name for Huaqiangbei Subdistrict and, together with "Zhongguancun in Beijing," forms the two major centers of China's electronic information industry. It is a calling card showcasing the achievements of the Shenzhen Special Economic Zone's reform and opening up. What deeply impresses people about Shenzhen Huaqiangbei and makes them flock to it is: why are there so many billionaires in Huaqiangbei? Mr. Song Shiqiang of Kinghelm and Slkor (www.slkoric.com) will explain this for everyone by analyzing the characteristics of the electronic components traded in Huaqiangbei, and why those who sell pork and cabbage in Huaqiangbei have not become rich?

The first characteristic of electronic component products is that they are easy to store. The usual reasons for component failure and loss of value are moisture and electrostatic damage. When stored in a constant-temperature and constant-humidity warehouse with intact outer anti-static bags, the electrical parameters of components will not change for 10 years, and some products have an even longer shelf life. Some dismantled components, after testing and refurbishing, can be used normally and are also inexpensive and of good quality. A few years ago, hoverboards were extremely popular, and the MOSFET with part number SL7N50 was in severe shortage. Some well-known manufacturers used refurbished goods at a fraction of the price of original goods, successfully completed their orders, and even made a big profit! In order to survive the intense competition, many manufacturers also intentionally or unintentionally use some. In the early days of Huaqiangbei, many bosses made their first pot of gold by buying whole lots of goods!

The second characteristic of components is that they are small in size, high in value, and easy to transport. Typically, an integrated circuit the size of a fingernail is worth dozens of yuan, and a shoebox can hold tens of thousands of yuan worth of goods. After simple packaging, they can be mailed anywhere in the world without deterioration, deformation, or loss. In the context of globalization, Huaqiangbei's integrated circuits can earn money from decades ago and thousands of kilometers away, breaking free from the constraints of time and space. It is indeed a good business, much better than selling pork, cabbage, and vermicelli! Huaqiangbei's business is mainly wholesale. A small booth run by a husband-and-wife team can achieve monthly sales of several million yuan. The model is simple and operating costs are low, with profits exceeding those of many factories with hundreds of employees, so many people have made money.

Among components, passive components have a high degree of standardization and strong substitutability, such as the capacitors and resistors from Samsung, Murata, and Yageo. However, active components have model correspondence. For the model in a customer's BOM table, if one digit or letter does not match, it cannot be used. For example, if only this one component is missing, the customer will generally purchase it at a higher price, which is a commercial compensation value. The boss or boss lady who has

this part number can earn a lot of money through a premium. There are many types of component models, as many as several million, so there are many opportunities. Huaqiangbei gathers information on products from around the world, and once information and products are matched, there is a business opportunity.

Huaqiangbei is also a reservoir for original manufacturers to adjust production capacity and a regulating valve for revising financial statements. Planned mistakes by original manufacturers, fires and floods at wafer fabs and packaging and testing plants, discontinuation of old models, geopolitical conflicts, wars and epidemics, structural shortages, and raw material shortages—these factors causing supply-demand imbalances are Huaqiangbei's opportunities for price increases! In 2012, when I had just entered the Huaqiangbei electronics circle, a major flood occurred in Thailand and many factories were destroyed. Many part numbers immediately went out of stock and doubled in price. Several brothers dealing in Sanyo Semiconductor made a fortune. Sanyo's high-frequency tube 2SC2078E, used in Motorola GP88 walkie-talkies, had a regular order price of 0.46 USD, and the final price was 8 yuan RMB!

Consumer goods with large volumes and rapid outbreaks are the fastest point for getting rich quick. Once a new product is discovered, Huaqiangbei bosses and boss ladies all focus intently on it and take a big gamble when there is an opportunity. Stockpiling goods plus leverage and off-market financing for speculation is Huaqiangbei's get-rich-quick model. Every breath of the times brings Huaqiangbei the thrill of making a fortune. The outbreaks of blockbuster products such as selfie sticks, TWS Bluetooth earphones, knockoff mobile phones, hoverboards, and fidget spinners start the Huaqiangbei billionaire assembly line! After a technological breakthrough in Bluetooth earphones in early 2018, I estimated that the market would explode, and the Kinghelm and Slkor R&D and marketing teams immediately laid out their plans. Slkor's (www.slkomicro.com) MOSFETs SL2301, SL2302, SL2N7002, and Hall sensor switches SL1613-SL, SL1625-SH, SL1603, and other models, together with the chip ceramic Bluetooth antennas KH2012, KH3216, KH5220, KH6010 developed by Kinghelm (www.bds666.com), as well as Kinghelm's spring-loaded pogo pin connectors, can all be used simultaneously in TWS Bluetooth earphones and other products. Kinghelm and Slkor achieved a dual-brand and dual-product-driven model, which contributed to our rapid development! Others making molds, PCBA, power management ICs, and small gold-bean batteries also became rich! Companies in the industry such as CSR, BES, MTK Airoha, REALTEX, Actions, ams, and Jieli made huge fortunes, and several companies even went public on the back of this!

These are all the Huaqiangbei wealth-creation myths around us! Huaqiangbei is truly a magical place! (End)

People's Daily "Quality News"

Song Shiqiang: The Past, Present, and Future of Huaqiangbei (Part 2)

Suzhou Online, 1 day ago · Uncovering Suzhou's highlights, forging Suzhou's brilliance

As the total economic volume increased, Shenzhen's economic and consumption center gradually spilled over from Luohu District and moved westward, and in the 1990s the focus was on Futian District. After years of struggle and accumulation, migrant workers also produced a middle class with consumption power. The industrial base gradually accumulated and developed, leading to division of labor and cooperation and spontaneous markets. Huaqiangbei, located in Futian District, under the superposition and catalysis of these factors, formed the Huaqiangbei commercial circle with the electronics street as the industry leader, creating the Huaqiangbei economic miracle.

People's Daily republished Slkor Song Shiqiang's "The Past, Present, and Future of Shenzhen Huaqiangbei."

Slkor, Kinghelm, and Huaqiangbei's Song Shiqiang have enormous overseas influence.

Mr. Song Shiqiang, General Manager of Kinghelm (www.kinghelm.net) and Slkor (www.slkoric.com), is a member of the Electronic Information Expert Database of the China Association for Science and Technology, a columnist and popular science writer, and an expert in Huaqiangbei commercial research. Song Shiqiang invests in and operates Shenzhen Slkor Semiconductor Co., Ltd. and Shenzhen Kinghelm Electronics Co., Ltd., building the Slkor and Kinghelm brands. Both Slkor (slkoric/slkomicro) and Kinghelm are national-level high-tech enterprises. They play a positive role in the domestic substitution of electronic components!

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

Mr. Song Shiqiang's series of articles on Huaqiangbei commercial research has been well received. The English version of Slkor Song Shiqiang: The Past, Present, and Future of Shenzhen Huaqiangbei (Part 2), titled The Past, Present, Future of Shenzhen Huang Qiang Bei (Volume 2)---Slkor, Song Shiqiang, was republished by Dow Jones' MarketWatch column. The article takes the overall development of Shenzhen Huaqiangbei as its starting point and systematically discusses the start, growth, and maturity of Huaqiangbei after reform and opening up, with rigorous argumentation and thorough reasoning; it is a highly informative and in-depth good article. The article republished on Dow Jones MarketWatch is titled Slkor Song Shiqiang's "The Past, Present, and Future of Shenzhen Huaqiangbei" and was also republished by Yahoo,

Yahoo, Worksmartt Asia, TechNode Global, and People's Daily's "Quality News." The republication by People's Daily and Xinhua News Agency is also an affirmation of Mr. Song Shiqiang's long-term constructive and pioneering research on Huaqiangbei!