Tech startup: I really do make mobile phones!

Chapter 129 The Hidden Dragon Returns to the Abyss
Longhua New District, District Mayor's Office
Outside the window, the noise of land leveling in the Guanlan High-tech Industrial Park could be heard, along with the muffled sound of pile drivers.

If this high-tech industrial park, covering 710 hectares (approximately 1755 mu), is fully developed and attracted to settle in, 43.66% of the land will be dedicated to the development of key industries such as electronic information and biomedicine.

The development level of Longhua New District will surely improve rapidly, eventually surpassing other traditional economic powerhouses in Shenzhen.

In the office, the air conditioner was blowing cold air with all its might, but it couldn't quell the heat in Zhang Weimin's heart.

He paced back and forth in his office with his hands behind his back, his leather shoes making a dull "tap-tap" sound on the floor, his gaze occasionally sweeping towards the closed office door.

"Knock, knock, knock!" The knocking finally sounded.

"Enter!"

Zhang Weimin paused, his voice carrying a barely perceptible urgency.

Li Bin, the director of the investment promotion office, pushed open the door and walked in, his face showing barely suppressed joy and a travel-worn look, with a thick folder tucked under his arm.

"District Chief Zhang!"

Li Bin's voice was loud and clear, filled with excitement.

"Old Li! You're finally back!" Zhang Weimin rushed over, not bothering with formalities, grabbed Li Bin's arm, and stared intently at him: "How's it going? Have you managed to get that real dragon from Orange Technology? I was so anxious!"

Li Bin's arm ached from being gripped so tightly, but he laughed even harder.

"District Chief, look how anxious you are! I came straight here to report as soon as I got back, without even having a sip of water!"

He broke free from Zhang Weimin's hand, walked to the desk, and slammed the folder in his hand on the table with a "thud," making a crisp sound, as if he had finalized something important.

"It's done! They've agreed!" Li Bin's voice carried a hint of smugness. "President Chen will come over this afternoon to sign the contract with us!"

"Good! Good job, Lao Li! You've done a great job!"

Zhang Weimin slammed his hand on the table, causing the teacup to bounce and spill a few drops of tea onto the cuff of his brand-new shirt. He didn't care at all, his face beaming with joy.

"I knew I could have entrusted this to you. Tell me quickly, what were the specifics of the negotiations? Did Mr. Chen have any special requests? Tax breaks? Land use policies? Or industry support funds?"

Li Bin skillfully picked up the celadon cup used for entertaining guests in Zhang Weimin's office, walked to the water dispenser to fill it with water, and spoke as he poured.

"Hey! District Chief, you might not believe it, but this Mr. Chen, though young, has a very different mindset!"

He took a big gulp of cold water, breathed a sigh of relief in front of his old leader, and then spoke.

"Tax incentives? They didn't even mention it! As for industry support funds? They didn't ask much about that either! What they care about most is something else!"

"Oh?" Zhang Weimin's curiosity was completely piqued, and he leaned forward slightly: "What is it? Something more important than real money?"

Li Bin placed the celadon cup on the coffee table, returned to Zhang Weimin, and then lowered his voice with a mysterious smile.

"It's our 'Shenzhen Foreign Language School Longhua Branch'! General Manager Chen asked in detail about the priority enrollment for the children of senior executives, especially the pathway and speed for transfer students!"

"He just said one thing: as long as our district can get this done for him as soon as possible, he'll immediately take action and change the business registration address of Orange Technology's headquarters and Yuancheng New Energy Company, and transfer all the tax relations as well!"

"hiss"

Zhang Weimin gasped, his eyes widening in shock. He then slammed his hand on the table again, this time with even greater force. "Bang!" Even the pen holder on the table jumped.

"Great! Great, Lao Li! This is practically buy one get one free! It's like a huge windfall has fallen into our district!"

District Chief Zhang paced back and forth in his office, rubbing his hands together in excitement.

"Yuancheng! That's a hidden dragon. And what's with this Mr. Chen? He doesn't ask about money or land, but is concerned about the children's school first?"

"Did he get married himself? Is he in a hurry to pave the way for his own child?"

Li Bin laughed and waved his hands repeatedly: "Not at all, District Chief! I've found out, this is what happened!"

"President Chen recruited a top-notch tech talent from Chongqing. I think he works in mobile phone hardware development. His name is Jiang Yu, and he's incredibly capable!"

"Mr. Chen is really worried about his executive's child. He's in a hurry to sort out all the troubles of enrolling this 'precious darling' so that the child can work hard for him in Shenzhen without worry!"

"Wow!" Zhang Weimin suddenly realized, and then his face showed an expression of great appreciation. He said repeatedly, "Good! Good! Good!"

Zhang Weimin stopped, his eyes shining as he looked out the window at the blueprint for the Lanzhou Technology New Area, and exclaimed:

"Old Li, look at this! This kind of vision, this kind of spirit, thinking of other people's worries to this extent for the sake of talent—this is what a true entrepreneur who can accomplish great things is like. This is the kind of leader that Longhua needs!"

Then, Zhang Weimin turned around, his eyes filled with reminiscence and admiration.

"I've only ever seen this kind of magnanimity and respect for talent in General Manager Ren of the Chrysanthemum Factory back in the day!"

"Back then, Chrysanthemum Factory endured immense pressure to bring in those Russian experts, stubbornly building a small town resembling a seagull's shell on barren land, all to make them comfortable living there. And what was the result? How many people pointed their fingers at them and accused them of being 'unpatriotic'?"

"Hmph!" Zhang Weimin's face showed a hint of disdain: "Those people don't know anything. According to their twisted logic, those big bosses who spend tens of billions to buy islands in the US and Europe and hire foreigners to build Chinese-style manors have become patriotic role models?"

"That's pure bullshit! This young Mr. Chen is quite something! He has a broad vision, a long-term perspective, and gets things done in a down-to-earth manner. I, Zhang Weimin, have finally seen through him. We've made the right choice in selecting this true dragon, Longhua!"

Li Bin promptly offered flattery: "That's right! It's all thanks to your foresight, District Chief, that you overcame all opposition and insisted on bringing in a technology company like Orange!"

"I think that in the future, our Longhua and Orange Company will definitely complement each other and take off together, making our new district another well-known economic powerhouse in Shenzhen!"

"Hahaha!" Zhang Weimin felt completely relaxed after being patted, and he laughed heartily, his mouth wide open.

He chuckled a few times, then suddenly remembered something. He quickly bent down to straighten his suit, which he had wrinkled in his excitement, and touched the tea stains on his cuffs. He then asked Li Bin:

"Old Li, come quick and take a look at me. Do I look alright? Is my tie crooked?"

"When we receive President Chen later, we can't be the slightest bit negligent. He's the future god of wealth and lucky star of Longhua. We have to show him the highest level of hospitality and the best spirit!"

As he spoke, he carefully smoothed his sparse hair in the reflection of the office window.

A brand new conference room in Takihawa New District
Sunlight streamed through the floor-to-ceiling windows, illuminating the gleaming, long conference table, while the air was filled with the mixed smells of new furniture and printing ink.

A bright red banner hangs on the wall that reads "Warmly welcome Orange Technology to settle in Longhua New District".

District Chief Zhang Weimin, dressed in a sharp dark suit, shook Chen Mo's hand with a warm but moderate grip, all while beaming with a smile.

"President Chen! Young and promising! Truly young and promising!" Zhang Weimin's voice was loud and clear, filled with undisguised admiration.

"Orange Technology's choice of Takihwa is absolutely a wise and visionary move!"

He turned his head and winked at Li Bin, the investment promotion director who was accompanying him.

Li Bin immediately added with a smile, "President Chen, District Chief Zhang specifically instructed that we warmly welcome Yuancheng New Energy! As for the conditions, Yuancheng will provide everything that Orange Technology has: three years of tax exemption, industrial support, and talent policies—all in full swing!"

Chen Mo wore a well-tailored dark gray suit, which made him appear calm and reserved.

His smile was just right, neither overly enthusiastic nor disrespectful.

"Thank you for the kindness and support from District Chief Zhang and Longhua New Area. Orange Technology and Yuancheng New Energy will do our utmost to contribute to the development of the New Area."

Behind him, Lin Junfeng was looking down and quickly flipping through a thick stack of investment contracts, his gaze behind his glasses sharp and focused.

Gong Yun stood quietly to the side of Chen Mo, slightly behind him. She wore a well-fitting beige business suit, a gentle and peaceful smile on her face, and her gaze calmly swept across the venue.

After a moment, Lin Junfeng gave Chen Mo a barely perceptible nod.

Chen Mo understood and walked to the signing table covered with dark green velvet.

At that moment, the flashbulbs went off at just the right time, and reporters from the district's official media and the Shenzhen Special Zone Daily were already in place.

Zhang Weimin and Chen Mo, representing their respective sides, solemnly signed their names on several documents, exchanged texts, and then clasped hands, facing the camera.

The sound of camera shutters clicking away filled the air.

The reporter immediately handed him the microphone.

"District Chief Zhang, what is the significance of the establishment of Orange Technology and Yuancheng New Energy for the construction of the '12+4' industrial cluster in Longhua New Area?"

Zhang Weimin stood tall, speaking in an official tone yet brimming with confidence.

"This is of great significance to us, marking a breakthrough in attracting high-tech enterprises and building emerging industrial clusters in our Longhua New Area!"
This is a concrete practice of actively responding to the national strategy of vigorously developing new energy and emerging electronic industries!
We will dedicate the entire district's resources to providing the best services and strongest support to key enterprises and projects, ensuring that national-level strategies take root, blossom, and bear fruit!

The reporter turned the microphone to Chen Mo: "Mr. Chen, could you talk about the impact of this cooperation on the future development of Orange Technology?"

Chen Mo gave the camera a formulaic smile.

"First of all, could you please blur the photos of me and my staff? Thank you!" After receiving a positive response from the official media reporter, he continued, "This collaboration is an important step in the development of Orange Technology!"

"The leadership team of Longhua New District is pragmatic, efficient, and enterprising, and the policy environment it provides is extremely attractive to enterprises."

"We believe that with the strong support of the new district, Orange Technology will gain broader development space and stronger momentum, and we are confident that we can create greater value here!"

After the signing ceremony concluded and they exchanged pleasantries with the leaders, Chen Mo and his entourage left the district government building.

Sitting in the back seat of the understated and composed black Mercedes-Benz S600 (W221), Chen Mo said to Lin Junfeng beside him, "Brother Lin, I'll leave the follow-up on the contract to you. You can go back to the company now!"

Lin Junfeng opened his mouth as if he wanted to say something, but then he saw Chen Mo lean back in his chair, looking slightly tired, and pinch his nose.

Such official speeches are really exhausting; Chen Mo dares not make the slightest mistake.

In the end, Lin Junfeng simply nodded mechanically: "Okay, Mr. Chen!" and got out of the car.

Driver Xiao Li started the car smoothly and merged into the traffic.

Gong Yun sat quietly in the seat next to him in the back, took out a refreshing mint from her faded canvas pocket and handed it to him.

Chen Mo, with a mint in his mouth to refresh himself, calmly instructed Xiao Li, "Phew~ Go to Yuancheng!"

The driver, Xiao Li, didn't ask any further questions, but simply replied softly, "Okay, Mr. Chen!"

Since the beginning of July, Chen Mo hasn't stepped into Yuancheng New Energy for almost a month, relying entirely on the three driving forces to get things running. He has no idea what the company's situation is like.

The small conference room on the third floor of Yuancheng New Energy.

Upon receiving an urgent notification from office secretary Xiao Zhang, the three core executives of Yuancheng New Energy—General Manager Xu Mingyuan, Production Line Manager Liu Jiping, and Technical Director Liu Mingzhen—were already waiting in the small conference room.

The atmosphere was somewhat awkward; the sudden arrival of the big boss always makes people uneasy.

Only when they saw Chen Mo bring Gong Yun in did the three of them quickly get up.

"Have a seat!" Chen Mo sat down in the main seat, and Gong Yun naturally sat down a little behind him on his right, opening her notebook to take notes.

"Time is short, so let's get to the point!"

Chen Mo got straight to the point.

“We signed a contract with Longhua New District today. Orange’s headquarters will nominally move there. Yuancheng,” he said, his gaze sweeping over the three people. “After the lease for the Longgang park expires at the end of the year, we will not renew it and will move the whole thing to Longhua. There are ready-made factory buildings there, and we have signed a three-year rent-free and tax-free agreement.”

Xu Mingyuan and the other two exchanged glances, all seeing surprise in each other's eyes, but even more so, understanding.

They had just received their Tier A equity incentives and were full of enthusiasm.

"Move! We have to move!"

Xu Mingyuan was the first to express his opinion, his tone resolute.

"Three years of rent-free living plus tax breaks—that's a real saving of tens of millions of yuan! Mr. Chen is brilliant!"

"Yes, we will transfer the production line in batches to minimize the impact on production capacity. We will have no problem with production!" Liu Jiping assured him confidently.

Liu Mingzhen nodded in agreement: "The laboratory will fully cooperate with the relocation to ensure that research and development and trial production are not affected."

Chen Mo was satisfied with their response: "Good! As for the specific relocation plan, President Xu will take the lead and come up with a plan as soon as possible. We will start moving around in October. President Gong will coordinate the resources of Orange to cooperate."

"Understood!" the three replied in unison.

Chen Mo then asked, "Could you briefly describe the situation at Far Orange last month?"

Xu Mingyuan was prepared when he arrived, and he opened the folder.

"Mr. Chen, last month we mainly shipped gaseous lithium battery cells in three specifications: 800mAh, 900mAh, and 2000mAh. The monthly revenue was 1.43 million yuan, but the profit margin was only 3.57%."

According to this calculation, Yuancheng earned 5.7 million yuan in July, which is about a quarter of the profit of Orange Mobile in July. Um, Chen Mo is referring to a quarter of the profit on any one day in July.

Looking at it this way, Chen Mo finally understood Lei Jun's "asset-light" model.

Entrepreneurs in the real economy work hard all year, supporting hundreds of thousands of employees, but when they look back at their profits, they find that their monthly earnings are less than what the entrepreneurs earn.

Um... now you know why Miss Dong is unhappy with Lei Jun.

Xu Mingyuan paused, his tone somewhat helpless: "Our overall profit margin is far below the industry average of 5.75%, and as for the reason..."

Xu Mingyuan glanced at Chen Mo, not saying it explicitly, but everyone present understood.

Currently, 77.3% of Far Orange's production capacity is supplied to Orange Technology at low prices, earning only 3% profit. Its current average profit margin of 3.57% is entirely supported by 22.7% of its export production capacity.

To put it simply, the cost (including tax) to produce a MOF mobile phone gaseous lithium battery is 57 yuan.

If it were sold to Orange Technology, it would only fetch 58.7 yuan, with a profit margin controlled at 3%, meaning a profit of only 1.7 yuan.

If sold to outsiders for 67.1 yuan (like Lei Jun), the profit margin would be as high as 17.8%, earning 10.1 yuan, which is more than three times the industry average profit, truly living up to its "high" technology name.

The average profit margin of real industries is over 10%. What does this mean? If a company can maintain this threshold, it indicates that it has stronger cost control capabilities or product premium power. For example, a profit margin of over 10% in the real estate industry is considered to be at the level of "excessive profits".

This indicates that Yuancheng's gaseous lithium batteries have a higher product premium in the market, and Orange Mobile can acquire this technology at a low cost, which undoubtedly greatly enhances its market competitiveness and profit margin.

In other words, Orange is secretly leeching off Yuan Orange to grow stronger.

But... who can blame him when Chen Mo is the big boss!
Lei Jun, being wealthy and powerful, cared about the future listing value of Yuancheng and didn't say anything about this trivial matter. Only Xu Mingyuan, a small individual shareholder, had some thoughts on it.

Chen Mo's face remained expressionless as he lightly tapped his fingers on the table.

"If you can consistently make profits in the real economy, you've already outperformed many of your peers at this stage. Everyone should focus on the fundamentals, take a long-term view, and not be fixated on short-term gains."

He glanced deliberately at Xu Mingyuan, who had brought up the topic, and then said directly to Liu Jiping, "Continue."

Liu Jiping immediately reported the progress: "President Chen, the dedicated production line for the new MOF-honeycomb structure battery has been debugged and trial production is going very smoothly!"

"We have already started small-batch production and are trying to supply markets other than mobile phones, such as the small drones called Dajiang in Nanshan and the portable medical device power supplies from Shenzhen Mairui. The feedback has been quite good!"

"Yes, very good! New markets are the profit growth points for Yuancheng, let's continue to expand!" Chen Mo praised.

Look how sensible Senior Brother Liu is; at least he won't suddenly embarrass Chen Mo.

Liu Mingzhen pushed up his glasses, his voice carrying the composure of a researcher.

"Mr. Chen, I've recruited an old friend who has made great achievements in the field of environmental control. After joining the team, he made some optimizations to the environmental control technology for gaseous lithium batteries, and the yield rate of finished products has increased by about 2 percentage points this month."

"Senior Sister Liu's move is truly extraordinary!"

Chen Mo rarely showed a relaxed smile.

"If you have any progress on your project topic for your bid to become an academician, let me know as soon as possible. Although I am not an expert, I can still discuss it with you and provide some resources and support."

A hint of gratitude and fighting spirit flashed in Liu Mingzhen's eyes: "We're already screening them. I'll definitely ask President Chen to give us his opinion."

Finally, Chen Mo pointed to Gong Yun beside him.

"Let me formally introduce you to Gong Yun, the head of the logistics department at Orange Technology, and my chief steward. From now on, Ms. Gong will be responsible for coordinating and supervising the quarterly financial audits of Yuancheng. Please cooperate with her work."

Gong Yun stood up at the right moment, her face still bearing that gentle and graceful smile, and nodded slightly to the three Yuancheng executives.

"General Manager Xu, Manager Liu, Director Liu, I look forward to your guidance and cooperation in the future."

Her voice was soft, yet carried an undeniable sense of propriety.

Xu Mingyuan and the other two immediately put on smiles and said something repeatedly.

"Welcome, Mr. Gong!"

"We will definitely cooperate with production!"

Behind these smiles, however, a subtle scrutiny flashed in Xu Mingyuan's eyes, Liu Jiping's smile was slightly stiff, and Liu Mingzhen simply nodded politely, his gaze still focused on the technical issues.

Thus, Orange Technology and Yuancheng quickly initiated the change of registered address, transferring their tax relations to the newly established Longhua New District.

The establishment of the Longhua New Area in 2010 was a major national strategy aimed at optimizing the urban spatial layout of Shenzhen, promoting industrial upgrading, and creating a sub-center of the city to balance regional development.

Orange's move to Takika at this time is like a dragon returning to its abyss, ready to seize the opportunity to rise again.

(End of this chapter)