Tech startup: I really do make mobile phones!

Chapter 106 Yuan Cheng's Stepmother

As the elevator slowly ascended, Chen Mo rubbed his temples, deeply troubled by Yuancheng New Energy's financing problems.

With a soft "ding," the elevator doors slid open.

Beside the passageway, a striking double-layered golden flower basket caught his eye—on the red ribbon, Lei Jun's elegant signature was clearly visible.

These flower baskets had been placed at the elevator entrance for two days, and the flowers, now at room temperature, were starting to wilt. Gong Yun had just notified the logistics department to come and clean them up.

Chen Mo's eyes suddenly lit up!
"Hello, Mr. Chen!"

Employees at the workstations along the way greeted him, and he nodded slightly in response. He continued walking, even quickening his pace, and went straight back to his general manager's office.

Opening the drawer, Chen Mo precisely pulled out the leather notebook that had been used since the small workshop, his fingertips quickly flipping through its pages.
At the time, Lei Jun was willing to invest 1 million yuan in Orange Technology in exchange for 30% of its shares, which shows that he definitely had a large amount of funds. Although it might not be as much as the 40 billion yuan that netizens later claimed, it was definitely not a small amount.

"I've decided that you'll be the 'stepmother' of Yuancheng -- Lei Jun."

found it!
The gold-embossed business card that Lei Jun gave himself is still quietly tucked away on that page of the notebook.

After the call connected, Chen Mo first warmly thanked the other party for the congratulatory basket sent when they moved to their new office the day before yesterday. After exchanging a few pleasantries, he got down to business: "Mr. Lei, I wonder if you are currently interested in investing in the battery industry?"

"Oh?" Lei Jun's voice was tinged with curiosity: "Is Orange Technology about to launch its first round of financing?"

“No!” Chen Mo chuckled, leaning on the corner of the table. “It’s Yuancheng New Energy, a holding company under Chengzi’s name. Currently, its main business is gaseous lithium batteries for mobile phones.”

After a moment of silence on the other end of the phone, Lei Jun suddenly said, "What a coincidence! I happen to be in Shenzhen. Would it be convenient for Mr. Chen to take me to visit the site?"

“Of course!” Chen Mo replied immediately. “There’s no time like the present, how about this afternoon? I’ll send you the address right away.”

In the upscale coffee shop, Lei Jun hung up the phone and looked at Lu Shiwa in the booth across from him.

"Mr. Lu, are you really not going to reconsider?"

Lu Shiwa looked troubled: "I understand President Lei's sincerity, but President Liu of Jinli has treated me very well."

“I understand!” Lei Jun raised his glass elegantly and took a sip of coffee. “By the way! I’m going to visit a very interesting mobile phone battery factory this afternoon. Why don’t you come along, Mr. Lu? It’ll be a good way to relax.”

"Mr. Lu, just think of it as broadening your horizons!"

Mr. Xu from Shunwei Capital, who was traveling among various mobile phone supply chain companies in the Pearl River Delta, chimed in at the opportune moment. He had recently been inspecting projects for Lei Jun, and his words carried a certain persuasiveness.

Unable to refuse such earnest invitations, Lu Shiwa finally nodded.

Lei Jun's lips curled up slightly, and a glint of shrewdness flashed in his eyes—this investigation might be able to kill two birds with one stone.

in the afternoon.

Chen Mo personally drove the Mercedes-Benz S (W221) into the Yuancheng New Energy factory area.

Xu Mingyuan and Liu Jiping were already standing on opposite sides of the gate. The former was dressed in a sharp suit, while the latter was wearing a lab coat. The two were clearly separated.

This was clearly the effect Chen Mo wanted; the two of them had tacitly maintained their distance at the company for the past two weeks.

"Mr. Xu, you've worked hard!" Chen Mo was the first to extend his hand, his tone smiling: "I've heard that Yuancheng produced this batch of gaseous lithium batteries and achieved 8% quality control in just five days. Now, after more than half a month, they've even reached 5%. Excellent! Keep up the good work!"

Xu Mingyuan's knuckles turned white as he shook hands with Chen: "Don't worry, Mr. Chen, 5% is our bottom line. Our production line engineering team has learned a lot from BTD and is already familiar with production line debugging. This standard will never be shaken."

"Good, good, good!" Chen Mo clapped his hands with a smile to show encouragement.

Then, he turned around and patted Liu Jiping on the shoulder: "Senior Brother Liu, are you getting used to keeping track of the lab records?"

"It's alright. It's relatively relaxed!" Liu Jiping lowered his eyes slightly and nodded with a smile.

During this period, following Professor Lin's instructions, he stayed in the laboratory at Yuancheng to record the controlled materials and did not participate in any specific affairs of the company.

Chen Mo smiled and glanced at the two of them: "Investors are coming to inspect this afternoon. President Xu will be in charge of coordinating the reception and the tour route!"

Upon hearing this, Xu Mingyuan immediately straightened his back, and the pupils behind his gold-rimmed glasses slightly contracted.

He was well aware of the weight behind the words "investor," and with a thud in his Adam's apple, he replied, "Understood! I'll get ready right away!" As he turned, the hem of his suit jacket billowed in the wind.

"Senior Brother Liu!"

"what?"

"Your leisurely days are almost over," Chen Mo said in a low voice, with a meaningful tone. "In a couple of days, I'll send you to the Shenzhen National Laboratory for further studies. When you come back, take a medium-sized production line to trial-produce a new type of battery. Do you dare?"

Liu Jiping's eyes lit up: "President Chen! When I was working on the production line at the chrysanthemum factory, it was just a regular occurrence for me!"

Before he could finish speaking, an Elfa minivan pulled up at the door.

Lei Jun pushed open the car door, followed by Xu Mingda and Lu Shiwa, both dressed in suits.

"It's an honor to have Mr. Lei here!" Chen Mo stepped forward and introduced, "This is Liu Jiping, our Technical Director at Yuancheng!"

"I've heard so much about you!" Liu Jiping's hand trembled slightly as Lei Jun extended his hand.

He never dreamed that the legendary internet mogul would appear in this suburban factory of Far Orange.

Is this the investor that Mr. Chen mentioned?

"This is Mr. Xu, my cash cow!"

Lei Jun smiled jokingly and introduced the man behind him.

Chen Mo joked, "A man's most trusted person is someone he puts his money in. President Xu must be the person President Lei trusts the most!"

Xu Mingda smiled and waved his hand.

"Mr. Chen! This is my friend, Lu Shiwa!"

When Chen Mo saw Lu Shiwa, his pupils contracted slightly. "Uh, you two are already hooking up?"
Chen Mo never expected that Orange 1, in collaboration with Nietzsche 1, would inadvertently undermine Aiyouni, a sub-brand of Jinli that was transforming into a smartphone brand, in rural areas. As a result, even rural users were not buying into Lu Shiwa's native Android experience phone.

In this life, due to the butterfly effect caused by Chen Mo, Jin Li will likely meet his end sooner, while Lu Shiwa will have to join Xiaomai even earlier.

After a brief moment of surprise, Chen Mo laughed heartily and warmly shook hands with Lu Shiwa: "President Lei's friend is Yuancheng's honored guest, please!"

As the group exchanged pleasantries, Xu Mingyuan hurried over.

Chen Mo introduced them: "President Lei! This is Xu Mingyuan, the general manager of Yuancheng! President Xu!"

"President Xu! I don't need to introduce him, do I?"

"Hello, Mr. Lei!"

As the two shook hands, Lei Jun's gaze lingered between Xu and Liu, who were clearly at odds, as if he were pondering something.

Chen Mo, sensing the danger, immediately blocked Lei Jun's view and instructed Xu Mingyuan, "Mr. Xu! Begin showing our distinguished guests around!"

Lei Jun's personal charisma should not be underestimated. Although Chen Mo was somewhat uncomfortable with Xu Mingyuan's lack of subordinate awareness, Yuan Cheng was currently at a critical stage and could not do without this "both literary and martial" technical backbone.

If Xu Mingyuan is poached by Lei Jun, and Senior Brother Liu hasn't matured in time, where will he find such a capable person to help him look after Yuancheng's factory?
During a visit to Far Orange's first mass-production line for gaseous lithium batteries for mobile phones, Lu Shiwa spoke in hushed tones with a look of amazement.

He suddenly understood why Aiyou, even with the Jinli brand, still couldn't sell in traditional rural markets, while Orange 1, despite its low price, came standard with such a high-tech gaseous lithium battery.

"This factory price..."

Lu Shiwa exclaimed, "Orange 1, this is simply cheating! Don't you have any costs for developing gaseous lithium batteries?"

When everyone finished their tour and moved to the conference room, Lu Shiwa, as an "outsider," went to the rest area to wait, accompanied by Senior Brother Liu.

Inside the conference room, Lin Junfeng, Orange Technology's external legal counsel, was already seated at one side of the long table, his laptop gleaming with a cold light, the draft contract neatly arranged on the screen.

Chen Mo raised his hand to indicate, "President Lei, this is Lin Junfeng, our Orange's legal counsel!"

"Mr. Lei! Hello!"

Lin Junfeng politely stood up and shook hands with Lei Junfeng in a courtesy manner.

Hello, Attorney Lin!

Lei Jun's gaze swept over the young man in a dark gray custom-made suit and rimless glasses, then looked at the young team at the opposite table, whose average age was less than thirty, and he couldn't help but laugh: "President Chen's team is full of young talents!"

Chen Mo smiled but remained silent.

Lin Junfeng isn't really part of the Orange Group; he's more of a reliable "mercenary." He might want to recruit them, but he can't satisfy their demands.

However, Lei Jun's assessment that the team is "full of young talents" is not an exaggeration. Just Zhao Tiezhu alone can lower the average age of the Orange Group's senior management team by several years.

Lin Junfeng's slender fingers lightly tapped the keyboard, and the contract page immediately redirected.

"Mr. Lei, if your side is ready, we can officially enter the investment terms negotiation stage!"

His eyes behind his glasses gleamed coldly; he had already mentally reviewed Xu Mingda's identity and negotiation style three times over.

At either end of the conference table, Lei Jun got straight to the point: "Mr. Chen, name your price. How much funding do you need, and how many shares?"

"Since Mr. Lei is here, he must have already investigated Yuancheng's background!" Chen Mo tapped the document with his fingertips and revealed his hand at the beginning: "Pre-investment valuation of 5 million, investment of 5000 million, take 10% of the shares, let's be friends."

Xu Mingda immediately retorted: "Originally, Orange spent 800 million to acquire Yuantu, and the subsequent investment totaled 1.05 million. President Chen's premium is too high, and the valuation of 5 million is too inflated!"

Lin Junfeng pushed up his glasses, his voice cold and hard, and began to refute with reason and evidence.

"Mr. Xu deliberately confuses the concepts of fixed assets and valuation, and ignores the core value of technological monopoly. Yuancheng gaseous lithium batteries involve Class A controlled substances. How can the market exclusivity in the next five years be measured by the figures on the books?"

During the exchange between the two, Xu Mingyuan felt extremely uneasy. As a minority shareholder with 8.2% of the shares, he could neither get involved in the core negotiations nor do he have any choice but to sit there and watch his shares rise and fall in the valuation game between the two sides.

Now, even a one percent difference in negotiations between the two can easily amount to millions.

His pupils behind his glasses dilated and shrank with each quote, and his fingertips unconsciously traced the edge of the conference table, as if calculating how much his shares would increase in value after dilution.

"What will Yuancheng do when the exclusive license for gaseous lithium battery technology expires in a year?" Xu Mingda seized the opportunity and suddenly launched an attack.

This question hits the nail on the head: Far Orange is essentially an "OEM" that has obtained exclusive authorization for Orange Technology's gaseous lithium battery technology, and does not have its own core technology.

Lin Junfeng couldn't make the decision, so he could only look to Chen Mo.
"Priority matching of bids!" Chen Mo's eyes shone brightly: "As long as Yuancheng can match external bids, Orange guarantees exclusive authorization that will never be leaked."

Xu Mingda and Lin Junfeng argued for two hours over minor details, and Yuancheng's valuation was finally anchored at 3.8 million.

Xu Mingda and Lin Junfeng looked at Lei Jun and Chen Mo respectively, waiting for the final decision of their respective big bosses.

Lei Jun suddenly braced his hands on the table, his gentle smile revealing a decisive determination to break the deadlock.

"Mr. Chen! Here's what we'll do: I'll invest based on a valuation of 5 million, but you need to promise that next year, besides Orange Phone, my new phone will be one of only two phones equipped with Far Orange gaseous lithium batteries!"

The meeting room fell silent. Clearly, everyone present understood that the purpose of Yuancheng was to serve the Orange mobile phone.

Will Chen Mo agree to Lei Jun's request?
Even Xu Mingyuan, a minor shareholder, became nervous. 8.2% of the shares was worth nearly 40 million!
Chen Mo stared at the other person for three seconds, then suddenly smiled and reached out: "Then congratulations to President Lei on next year's new phone, which will become the second phone in history to be equipped with gaseous lithium batteries."

At that time, the Wheat 1 will be equipped with a MOF-type gaseous lithium battery, while the new Orange phone may be equipped with a larger capacity MOF-honeycomb type gaseous lithium battery.

Chen Mo couldn't help but wonder if other competitors would follow suit once Orange Phone and Wheat Phone both adopted gaseous lithium batteries with 30-second super-fast charging.

Will the technological direction and market trend of smartphone batteries be quietly rewritten by themselves?
The thought that oranges' gaseous lithium batteries might change the direction of the entire smartphone battery technology and market filled Chen Mo with excitement.

Judging from user feedback, although there are some complaints about the battery life of the Orange 1, thanks to the 30-second "recharge" function, these complaints are just minor grumbles and do not reach the bottom line of user acceptance.

After the black technology mobile phone R&D system settles its R&D points at the end of the year, Chen Mo plans to advance the gaseous lithium battery technology to Level 2 and Level 3 R&D.
As for the development of the system to level 4, Chen Mo knew in his heart that it was not very realistic.

In the remaining five months of 2010, Orange 1 had to sell ten million units, despite the combined attack from smaller boutique manufacturers like Green Factory and Duowei, as well as four major manufacturers: Zhongxing, Chrysanthemum, Coolpad, and Fantasy ("Zhonghua Cool Fantasy").
This is a very difficult task, but Chen Mo felt it was worth trying, though he shouldn't have too high hopes.

Of course, Chen Mo believed that with Level 2 and Level 3 research and development, the problem of battery capacity and battery life could definitely be solved.

Otherwise, what kind of cutting-edge technology would it be called!
By then, as long as the battery life of gaseous lithium batteries is on par with that of ordinary batteries, they will still maintain the advantage of 30-second fast charging. What will those competing products that now take 3 to 6 hours to fully charge have to offer to compete with them?
If you don't replace the battery, users will replace your phone first.

After Lei Jun signed the agreement, Yuancheng's equity structure was updated as follows:
Orange Technology: 82.62%
Xu Mingyuan: 7.38%
Priority Capital: 10%
Xu Mingyuan repeatedly stroked the new shareholder agreement with his fingertips. Although his shareholding ratio was diluted, the company's valuation surged, tripling his paper wealth.

Behind his glasses, his eyes held a complex mix of emotions: the resentment of being crushed by capital, and the thrill of sudden wealth, which ultimately culminated in a sigh that only he could hear.

Lei Jun tapped the contract's title page lightly with the tip of his pen, his gaze sharp.

He knew he wasn't betting on a battery factory, but on the future of the smartphone battery revolution over the next three years.

Every stroke of ink that falls from the pen at this moment is helping Shunwei Capital seize the next technological opportunity.

Chen Mo put the signed contract into a custom folder, his fingertips unconsciously stroking the orange logo on it.

Although Orange Technology's shareholding ratio was diluted from 91.8% to 82.62%, its absolute controlling stake remains rock-solid thanks to the terms stipulated in the shareholder agreement.

Moreover, the agreement clearly stipulates that the 10% stake acquired by Lei Jun only includes the right to receive investment dividends.

Chen Mo may allow the capital behind Lei Jun to siphon off his profits, but he shouldn't even think about interfering in Yuancheng's internal affairs.

He personally saw Lei Jun off to his car and watched as the workers at the Yuancheng factory began their shift change. The workers smiled and walked out of the factory area, and he suddenly chuckled.
Yuancheng finally received a generous "stepmother," and this investment, like timely rain, relieved the tight cash flow of Orange Technology.

In the future, Far Orange will use the profits from battery sales to support Orange, helping Orange phones seize market share. In turn, the R&D opportunities generated by phone sales will support the iteration and upgrading of battery technology.

Thus, a closed-loop business model with interconnected links and self-driving processes has been formed.

(End of this chapter)