From quantity principal and interest to price principal and interest.
Because in the past, one of our strategies was cost leadership, and the other was volume, cost and profit. What is the amount of capital and profit? If I can expand the quantity, I can reduce my cost. If we produce 200,000 cars, it must be cheaper than producing 100,000 cars. Why? Because the fixed expenses are overspread. But in the case of surplus, you produce 100,000 cars and sell them, produce 200,000 cars, and 100,000 cars are stored in the warehouse. You not only do not reduce your fixed costs, but also take up a lot of your liquidity. Like our automobile industry, there is a lot of inventory at present, which is actually pressing liquidity. As we talked about zero inventory in the past, we should make sure that production is based on sales, which is called zero inventory, and we should not press too many products. Therefore, this is also what we need to study in pricing.
So, now we offer to ask for the principal and interest. What is the price, principal and interest? That is to say, our price should be stable. It doesn't matter if we keep the quantity or even reduce the quantity. Finally, we should reduce the cost and operate in this way. In the past, I worked in building materials in this way, so I talked about this point. Right? On the issue of guaranteeing the quantity, in fact, it is guaranteed if it can be guaranteed, and it is not shameful if it cannot be guaranteed. In the case of surplus in the world, large enterprises will make a reduction announcement, which is good when the reduction announcement is made, and the stock will rise. Not long ago, the silicon materials in our photovoltaic industry were reduced, right? Like our photovoltaic glass to reduce 30%, you see, the capital market is a very good response, the stock has risen. Why? Because the capital market is very clear, you produce more in the warehouse, you produce less, sell less, in fact, is a good thing, not a bad thing.
And, like most of our industrial products, we don't really have price elasticity. What is price elasticity? If the apple is cheaper, he will eat one more. If the salt is cheaper, can he eat more salt? No, actually. Industrial products, most of them belong to this category. Every year, for example, our photovoltaic, I installed 300 GW this year, that is 300 GW, you are cheap is 300 GW, you are expensive is 300 GW. Therefore, this makes our enterprises have to think about this issue, we have to do the price of capital and profit, not the volume of capital and profit, appropriate to reduce production, in fact, there is no problem.
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