Tech startup: I really do make mobile phones!

Chapter 118 Sailing Towards the Blue Ocean
Opposite to Yuancheng New Energy, inside the Duomei Group Industrial Park, is the general manager's office of Duowei Mobile.

The assistant, clutching the report, reported to General Manager He: "The Duowei D1 sold 5.8 units on its first day, but plummeted by 44.8% to 3.2 units on the second day. It then maintained an average of around 3 units per day. In the first week, only 22 units were sold, which is less than half of the expected sales of 50 units."

The glaring orange lettering of "Yuancheng New Energy" outside the window shattered into light spots on Mr. He's glasses.

The women's mobile phone market had great potential in 2010, but Orange Technology's sales of 52 units in the first week made Mr. He feel uneasy.

The company he once regarded as a small, counterfeit workshop in North China had sales in its first week that were almost twice that of Duowei.

He loosened his tie, the words of the pledge made at the board meeting to produce 50 units echoing in his ears, each one feeling like a thorn piercing his flesh.

If a small workshop like Orange Technology can do it, then with the backing of a large corporation, selling 50 units of the Duowei D1 is a piece of cake.

At this moment, the air was so oppressive that you could wring water out of it.

Mr. He's face was ashen as he paced back and forth in front of the floor-to-ceiling window with his hands behind his back—directly opposite the window was Yuancheng's inconspicuous factory building.

He only just realized that the contract manufacturer that cut off the supply of batteries to Duowei was also controlled by Orange Technology. What a twist of fate!

The news of his previous failed acquisition of Nietzsche was like a poisonous thorn in his heart, and it became a handle for the board of directors to question him. He had no choice but to make a pledge in front of everyone to produce 50 units in order to protect his position.

"Useless!" He whirled around, slamming a stack of market reports onto the mahogany table, papers flying everywhere. "Go and call that piece of trash Wang Kai here. How did he conduct his research? He can't even see such a big competitor as Orange?"

A moment later, Wang Kai, the head of market research, arrived.

Mr. He's gaze was fixed on Wang Kai, who was sweating profusely at the table: "This is the 'flawless' assessment you spent hundreds of thousands of dollars on!"

Wang Kai trembled slightly: "President He, we've conducted a thorough investigation into Nietzsche's channel value and brand awareness."

“Value?” Mr. He interrupted sharply, “Then why did Orange Technology snatch the deal? Why are their bids always one step ahead of ours? Wang Kai! How many times did you mention ‘Orange Technology’ in your market research report?”

He took a half-step closer, his fingertip almost poking the other person's nose: "What's the background of Chen Mo and Orange Phone? Has your market sense been eaten by a dog?"

"Mr. He, Orange was too small-scale at the time; that was your judgment."

"It was your market research team's misjudgment!" General Manager He roared, interrupting him. "Your 'judgment' led the company to misjudge Orange Technology's strategy, resulting in the Duowei mobile phone's first-week sales falling short of expectations. Wang Kai, can you take responsibility for this?"

Wang Kai's lips trembled. He understood, he understood everything. Finally, he lowered his head in despair.

He understood that he had become the scapegoat for President He's demands to be made by the board of directors.

Without evidence, and given that Mr. He's word is law at Duowei, no colleague would stand up for him.

Mr. He took a deep breath, his eyes as cold as ice. He sat back in his executive chair and dialed the internal line: "HR, come in!"

When the HR director brought the security guards in, Mr. He didn't even glance at Wang Kai.

"Wang Kai, the head of the market research team, has committed serious dereliction of duty and is hereby dismissed immediately. Considering his many years of service to the company, he will be compensated with 2N+1. Watch him leave the company within half an hour!"

Wang Kai clenched his fist, then finally relaxed it, took off his employee badge and placed it on the report, and left dejectedly, "accompanied" by security guards.

Mr. He rubbed his temples, his gaze once again fixed on the distant orange factory outside the window, his eyes filled with malice.

Stung by the fact that the D1's first-week sales were less than half of Orange's, an idea took shape in Mr. He's mind: If I can't openly snatch Nietzsche, then I'll steal it secretly. I'll hollow out your core team and disrupt your company's development rhythm!
Chen Mo, Orange Phone, we'll see.

There was a gentle knock on the door of the general manager's office at Orange Technology. Seeing that the door was unlocked, Xiao Zhou, the receptionist, poked her head in like a little hamster, looked around, and finally found General Manager Chen with his back to her in front of the aquarium.

"Mr. Chen, we have an urgent document for you."

Chen Mo turned around and saw that Xiao Zhou was holding a same-city express package.

"Bring it here!" Chen Mo walked towards the desk.

Xiao Zhou handed him the package: "It's a same-day delivery from a local courier."

"Alright, you can go ahead and get busy!"

Chen Mo took it and deftly cut open the seal with a letter opener.

There was only a single sheet of printed paper inside, but its contents made his eyes narrow slightly.

"Beware of Duowei poaching our talent!!!" The message was signed: "Someone who doesn't want Orange to fall."

Chen Mo frowned, preferring to believe it was true!

"Sister Gong, come here for a moment." Chen Mo picked up the internal phone and pressed the number 2 key.

Gong Yun entered quickly, still with her usual calm and capable demeanor.

Chen Mo handed her the letter: "Take a look at this!"

Gong Yun quickly scanned the area, her expression turning serious: "President Chen, what do you mean?"

"Let's talk about the current staff situation in our company, especially those who have left!" Chen Mo leaned back in his chair.

Gong Yun was prepared and opened the folder she carried with her.

"Currently, the company has a total of 50 employees. Recently, 5 people have resigned. The core structure consists of three main parts: marketing, technology (Chengbao Studio), and logistics, with a flat management structure."

She gave a detailed report:
Technical Department (Chengbao Studio): 15 people, with He Jian as the supervisor and Wang Teng as the deputy.

Currently, there is only one software team developing Android App and Orange Treasure Input Method.

Marketing Department: 18 people, managed by Zhao Tiezhu.

Divided into three groups: E-commerce (3 people, responsible for online promotion and marketing), Channels (8 people, responsible for strong distribution in North China, Nietzsche direct sales, and TV shopping), and Supply Chain Management (7 people, responsible for monitoring parts inventory and quality control).

Logistics Department: 12 people, she personally oversees it.

Administration and Human Resources (4 people, including receptionist), Finance (5 people), Customer Service (1 person), Logistics (2 people, including driver).

Management chain: General Manager → Supervisor → Employee, simple and direct.

7月人力成本：技术15万+后勤16.5万+市场43万=74.5万。

“President Chen! Since you haven’t given specific instructions, my personnel allocation strategy is as follows,” Gong Yun explained: “market-oriented, with 40% of the manpower allocated to fully support expansion after achieving sales of 120 million units next month.”

With technology as the foundation, the Orange Treasure team is the core. We added 5 software employees to ensure the software iteration and maintenance of our technology department after Orange Treasure becomes independent.

Logistics support, especially the supply chain coordination with finance, is crucial for managing Nietzsche's payment terms and materials, and stabilizing cash flow.

Chen Mo's eyes lit up with approval: "Sister Gong, you're amazing! This management structure is beautifully designed. I didn't know you knew about this!"

As a tech-savvy man, he knew nothing about management, but he could immediately see that the company management system built by Sister Gong was simple and clear, and perfectly matched the current development needs of Orange Technology.

Gong Yun lowered her eyes and smiled faintly, with a hint of self-mockery.

"I learned a little bit in college, but I threw it all away a long time ago. It's just that you, Mr. Chen, have forced me to pick it up again and put it to use!"

"Haha! Sister Gong, you're too modest!" Chen Mo laughed, but he made a mental note of Gong Yun's ability to "cram at the last minute" and planned to give her more responsibilities in the future.

"Let's talk about the five employees who are leaving!" Chen Mo got straight to the point.

"Two people in the e-commerce team!" Gong Yun replied decisively: "As you instructed, we don't have an internet background, so we won't force our way into online channels. They delayed for a week, unwilling to transfer to another position, which is considered a normal resignation."

"The problem is with those three in the supply chain management team. They suddenly resigned these past two days, leaving in a very abrupt way!"

She paused for a moment, her tone becoming somewhat serious.

"Because this matter is highly specialized, Xiao Zhao has always personally overseen the recruitment process. I felt it was a minor anomaly, so I didn't report it to you immediately."

Chen Mo waved his hand: "Sister Gong, don't blame yourself. There's really no need to make a fuss about this. I'll ask that kid about the supply chain later. However, I have some new ideas about staffing. Can you give me your advice?"

He pulled out the notebook he'd been using since the small workshop, found the page for "R&D Leader," and casually crossed out the to-do item for "Talking with Xu about the Yuancheng Plan."

Then, Chen Mo said:
"The technical department needs to add two groups:"
Hardware R&D team (6-8 people): responsible for mobile phone motherboard design, battery solutions (in coordination with Far Orange), and component selection.
Let's appoint a deputy manager; they need to understand mobile phone R&D!

"You know that white Qilin from Meizu, right? Use that standard to find a match, remember, no foreigners!"

After emphasizing this, Chen Mo added, "If we can't find a suitable one, we'd rather have nothing than something bad. If all else fails, Zhao Tiezhu and I will roll up our sleeves and get it done ourselves; we can manage to get Orange 2 out!"

"Design team (4-6 people): responsible for the appearance of the phone and the UI/UX design of Orange OS."

Gong Yun chuckled and teased as she took notes.

"Mr. Chen, with these two teams added, our company will transform from 'market-oriented' to 'technology-oriented'."

Chen Mo chuckled, "Isn't that great? We are a technology company after all!"

"That kid Zhao Tiezhu, he thinks he's all that once he's given a little power. Coordinating the supply chain is clearly a logistics job, but he insists on taking it over to his marketing department and making so many people. I think this kid just wants to experience the thrill of being an official!"

Gong Yun realized it was a joke and didn't respond to the topic of separating the supply chain. Instead, she spoke up for Zhao Tiezhu.

"Xiao Zhao also saved the company some money on quality control personnel."

"This kid, you'll have to keep a close eye on him, Sister Gong. I can't control him. Don't let him get too cocky." Chen Mo shook his head with a smile.

The two exchanged a smile, and the atmosphere eased a bit.

Chen Mo picked up the anonymous letter and tapped it on the table.

"Sister Gong, I'm planning to use 5% of the shares of Yuancheng held by Orange Technology to create an employee incentive pool. It can be unlocked and cashed out after three years. What do you think?"

A glint flashed in Gong Yun's eyes, and she immediately got into the zone. "The 2500 million pool will be unlocked linearly over three years, releasing 833 million each year, but the distribution can't be a free-for-all!"

She speaks very quickly.

"Based on job level and contribution, there are three tiers: A (senior management) unlocks 0.3% annually, tied to annual KPIs; B (technical backbone) 0.2%, depending on project completion; C (supervisor level) 0.1%, combined with departmental evaluation."

According to Gong Yun's allocation plan, only Chen Mo was eligible for Category A, so he naturally wouldn't refuse.

Although the ownership of shares in Orange Technology Holding Yuancheng (not held by individuals) is involved, making the explanation slightly complicated, this does not affect the implementation of the incentive mechanism.

If he doesn't take it, how will the management below take it? If the management doesn't take it, how will the employees below take it?

"Ordinary employees will receive tiered growth, starting at 0.01% in the first year and reaching 0.05% in the third year, thus binding people with long-term benefits!"

"In addition," she pulled out the data, "we have set a four-year payout period. If someone leaves before three years are up, the unlocked portion will be bought back at 70% of its original value to prevent our Orange from being used as a stepping stone."

It must be said that Gong Yun was very thoughtful, even considering the equity disputes of those who left the company in less than three years.

Chen Mo's pen touched the notebook, and he pointed to Gong Yun's name: "The first 100 employees are all in the A category."

Chen Mo's meaning was clear: Zhao Tiezhu and Gong Yun had followed him from the humble beginnings of a small workshop in North China, and therefore deserved the highest level of treatment.

As for the annual KPI assessment for Category A, isn't that up to Chen Mo?

"Employee ID number in the top 100." Gong Yun lowered her eyes and smiled gently, a warm smile spreading across her lips. She thanked him softly, "Then I should thank President Chen on their behalf!"

"No need, Sister Gong! You deserve this!" Chen Mo's "TA" was Zhao Tiezhu, anyway.

Then she realized the key point: "What about the people in the Orange Treasure team of the technical department? Their employee numbers are all after 100, including He Jian and Wang Teng. They will be leaving Orange Treasure independently in the future."

Chen Mo pondered for a moment.

"Let them choose for themselves. If they want Yuancheng's incentives, they can stay in the software group of Orange Technology Department. If they don't want it, they can get Orange Treasure's founding shares when Orange Treasure becomes independent."

Gong Yun nodded: "Understood! I'll give everyone a sneak peek at the incentive plan first, to see if there's anything fishy about those three who suddenly resigned. Mr. Chen, you can officially announce it tomorrow?"

"Sister Gong! You're so thoughtful!" Chen Mo exclaimed sincerely.

After Gong Yun left, Chen Mo solemnly placed three dots next to "Head of R&D" on his notebook, indicating that it was to be completed.

Why not hire a junior assistant or secretary to act as your talking notebook?

Never mind, it's not a big deal.

After closing his notebook, Chen Mo pondered for a moment: Orange Technology has already set up incentives, and Far Orange cannot fall behind.

Both companies are equally important to him, but Yuancheng required huge upfront investment and has a long payback period, which is why he had to bring in financing.

Now that oranges have incentive policies, Yuancheng oranges should naturally be treated equally and not favored over others.

He made a phone call to Lei Jun and Xu Mingyuan, and they reached a consensus in a few words: each of the three parties would contribute some money to create a 5% share of Yuancheng as an employee incentive pool.

Yuancheng's shareholding structure was updated instantly:

Orange Technology: 82.62% → 78.49% (including 10% pledged + 5% incentive pool)
Priority Capital: 10.00% → 9.50% (Dividends Only)
Xu Mingyuan: 7.38% → 7.01% (dividends only)
Employee incentive pool: 5.00% (new)
After settling things off with Yuancheng, Chen Mo dialed number 1 from inside and called Zhao Tiezhu over.

"Hey! Brother Chen, you finally decided to pick me after your trip to Yingtian!"

Zhao Tiezhu swaggered in, went to the reception area, grabbed a celadon cup, and gulped down some water.

"Brother Chen, just tell me what instructions you need. I've been working diligently these past two days, leaving early and returning late, and I haven't stirred up any hornet's nests!"

Chen Mo raised an eyebrow, his expression strange: "Where's your 'hornet's nest'? Did it fly back to Dongguang again?"

"Hey!" Zhao Tiezhu gave him a knowing look: "You're broke, eating instant noodles with me every day, and every night... cough cough, he couldn't stand the poverty, he ran away long ago! What's going on, Brother Chen?"

Chen Mo slapped the anonymous letter right in front of him.

Zhao Tiezhu grabbed it and looked at it, his face instantly turning red, and he slammed his hand on the coffee table.

"Damn! So that's what happened! I was wondering how those three bastards could have such a coincidence, all having 'something going on' at home at the same time, running away faster than rabbits. They've all defected to the enemy! Brother Chen, don't stop me, I'm going to cripple them right now!"

He made a move to rush forward, but found that Chen Mo was watching him calmly and had no intention of stopping him at all.

"Hey, Brother Chen, why didn't you stop me?" Zhao Tiezhu sat back down, trying to save face, and said with a forced smile, "I'm a person of status now, I can't fight like a thug anymore. It's not worth it to fight three people!"

Chen Mo scoffed: "We didn't bring you here to fight. The people we recruited from North China are a mixed bag. People naturally want better opportunities, so we won't force them!"

He abruptly changed the subject, his eyes sharpening.

"But in the future, the supply chain's access to suppliers must be 'dedicated to specific personnel.' Apart from you being in charge of the overall situation, those below you are only allowed to access the area you are responsible for!"

"Our mature and reliable supplier system is the result of our tireless efforts and countless hours of hard work. We can't let others take the credit for it so easily!"

Zhao Tiezhu patted his chest loudly.

"Don't worry, Brother Chen! We'll fix it as soon as we get back today. We'll assign specific personnel to specific tasks. They think they can steal our credit by poaching people? No way!"

Chen Mo patted him on the shoulder with satisfaction: "I trust you! If you don't understand something, ask Sister Gong. She's a professionally trained actress."

Then, he abruptly changed the subject and dropped a bombshell.

"By the way, I have some good news for you, but don't spread it around yet. Let Sister Gong investigate the matter first."

“I’ve put 5% of Yuancheng’s shares into an incentive pool. You and Sister Gong are both in the highest tier (Tier A). You’ll get around 25 in the first year. In the second year, Yuancheng’s valuation will definitely rise, and I estimate it will be 75. In the third year, it will be at least 150 million!”

"Fuck!!!"

Zhao Tiezhu jumped up from the sofa and excitedly pumped his fist.

"Brother Chen! My own brother! You're my real brother!"

Chen Mo deliberately put on a stern face: "If you have money, you're my brother; if you don't have money, you're just Brother Chen?"

Zhao Tiezhu quickly smiled apologetically, "How could that be! A brother is always a brother! I'll go and inform the marketing department right away."

He remembered Chen Mo's instructions and abruptly stopped the car.

"Then I'll wait and wait for Sister Gong to give me some information!"

At six o'clock in the afternoon, Chen Mo walked out of the office.

In the logistics team's work area directly opposite the general manager's office, only Xiao Zhou was stuffing unfinished potato chips into a canvas bag.

"Did Manager Gong leave?" Chen Mo asked casually.

"Yeah! Sister Gong said work needs to be efficient and punctual, so she took 'Manager Mi' home first." Xiao Zhou replied with a smile, "Is President Chen eating potato chips?"

Chen Mo smiled and shook his head to refuse, then walked to the honeycomb workstation at the far end of the technical area.

Wang Tengzheng was engrossed in typing code.

"How's the progress of Orange Treasure Input Method?" Chen Mo asked.

Wang Teng looked up, saw Chen Mo, and smiled.

"Mr. Chen! The first beta version is out. After we adapt the copyrighted fonts, it will definitely be launched in early August!"

He Jian also came over, pushed up his glasses, and his originally serious old face could not hide his excitement.

"President Chen! The first-day launch data for App Treasure is out!"
The pre-installed mobile phone activation rate is 62%, which is approximately 51.6 users!
Total downloads: 112 million!

The retention rate on the first day was 43%, with nearly 32 daily active users!
The app store currently has 90 apps, 88 of which are "user-shared," and 2 are from software vendors. Tools, entertainment, and lifestyle services are the top three categories in terms of downloads!

In the early days of Android smartphones in China, Google, Google Play, and Android apps were banned in China, so there was no official way to download Android apps. Users had to download them online themselves, which could result in either a bunch of unusable junk files or, worse, viruses that could use LSP services to steal their phone bills.

When the app appeared, it naturally became an instant hit.

He Jian, who had always been somewhat reserved with himself, took the initiative to come over and report, and Chen Mo naturally guessed what he was thinking.

"Well done!" Chen Mo praised generously. "I'll grant another 50 yuan in marketing funds to App Bao. Go find Manager Gong and ask her to transfer someone from the e-commerce team to help you with internet promotion and traffic generation!"

"That's great! Thank you, Mr. Chen!" He Jian's eyes shone even brighter behind his glasses.

Chen Mo smiled and turned to leave.

As I passed the first conference room, I could faintly hear Zhao Tiezhu's loud and forceful shouting. Through the frosted glass, I could see a large group of marketing department employees being scolded by their supervisor, Zhao, until they couldn't lift their heads.

Chen Mo shook his head helplessly, but a smile appeared on his lips.

"That brat, he still has the same awful temper even after becoming a leader."

Orange Technology, together with its partner Far Orange, will form a joint fleet and continue sailing towards the unknown blue sea in this twilight filled with ambition, scheming, passion, and curses.

"Captain! The sailors you requested are ready!"

"Set sail! Ta-da! Ta-da! Ta-da! Ta-da!"

A sneak attack from Duowei?
The threat of poaching?
No one could stop the combined fleet of Orange Far East from breaking through the dawn and sailing into the new blue ocean.

Nietzsche: Then what am I?
Orange: A great starting gift!
(End of this chapter)