Tech startup: I really do make mobile phones!

Chapter 159 Large Military Procurement Order
Longhua District, near Shenzhen North Railway Station.

The brand-new sign for "Guohong Industrial Park" stands tall in the early spring sunshine.

In January of this year, Far Orange Technology bid farewell to its old neighbors Duowei and Juhua in Longgang and relocated here in batches.

The district government initially offered Yuancheng very attractive terms: three years of rent-free rent, but for some reason, they didn't offer a tax-free package.

Today, Far Orange's new neighbor is "Betterley Electronics," a small, boutique factory that has been deeply involved in the 3C digital battery niche market for nearly ten years, also rooted in the battery industry.

However, at this time, Betley's size was only around 10 billion, which paled in comparison to Far Orange, whose output value had exceeded 60 billion, which was soaring like a rocket.

The owner of Betley stood at the entrance of his factory, looking at the bustling and busy scene of Yuancheng next door, and clicked his tongue with a complicated expression.

Yuancheng's new home is a 5-square-meter super-large factory building carefully selected by Director Li of the district government.

At this moment, the factory is bustling with activity, the machines are roaring.

Two large-scale gaseous lithium battery production lines, each with a daily output of 80,000 units, stand like steel dragons, swallowing raw materials and finished products.

Three medium-sized production lines with a daily output of 50,000 pieces are operating efficiently.

A flexible small production line with a daily output of 30,000 pieces is also operating at full capacity.

Far Orange's daily battery cell production capacity totals up to 34 units, but this can only be considered a small to medium-sized battery factory. Above that, there are large factories with a daily production capacity of one million units, and super factories with a daily production capacity of ten million units.

On the production line, workers wearing uniforms with the Far Orange logo are busy shuttling around. Their numbers have increased tenfold from just over a hundred last June to more than a thousand!

The sounds of people, machines, and forklifts mingled together in the factory area, creating a vibrant and uplifting industrial symphony.

At this moment, the atmosphere in the conference room on the third floor of the Far Orange administration building was completely different from the hustle and bustle of the factory area downstairs, carrying a serious and subtle sense of competition.

Military representatives are engaged in a crucial procurement negotiation with Xu Mingyuan, the general manager of Yuancheng.

The team was led by a senior colonel from the equipment department, who had a calm demeanor.

Beside him sat three majors, purchasing representatives from the Air Force, Navy, and Army, respectively.

The Air Force and Navy majors remained calm and composed, each calculating how much their own substantial "slush funds" could withstand, while Army Major Zhang Jian frowned slightly, his fingers unconsciously tapping lightly on the table, clearly under immense pressure.

In 2011, the total military expenditure was 6000 billion yuan, implementing the strategic orientation of "prioritizing air and sea, and transforming land."

Of these, 38% went to the Air Force, 30% to the Navy, 15% to the Army, and 17% to others.

The 5000 billion yuan will be used by the Equipment Department to purchase large-scale equipment such as aircraft, ships, missiles, and tanks.

The remaining 1000 billion is an independent "slush fund" for the three armed forces, allocated proportionally to purchase some non-core but urgently needed consumables or technologies.

When the Equipment Department represented the entire army in the unified procurement of gaseous lithium batteries, with the aim of supporting the military industry chain and encouraging independent innovation, it directly purchased them at market prices, bringing Yuancheng a substantial profit of up to 63.3%!
This allowed Far Orange to rapidly expand its production capacity.

However, when it came time for the three armies to each take out their own "secret stashes," the atmosphere changed, and the moment of meticulous calculation and penny-pinching arrived.

The Air Force Major spoke first: "President Xu, our Air Force has a clear need for your company's MOF-honeycomb gaseous lithium battery cells (2000mAh)."

"It will be used for two main purposes: first, the ongoing transformation of the electric propulsion technology of the MQ-9 'Reaper' UAV; and second, the upgrade of the backup power supply for airborne precision electronic equipment."

"For batteries, high performance, lightweight design, and fast charging are essential requirements."

His tone carried the unique sense of superiority characteristic of an air force bigwig.

“Our slush fund is quite generous, but we also need to be responsible for our expenses. So, with an 8% gross profit margin, we can purchase 652 million units at a unit price of 142.6 yuan, for a total price of 9.3 million yuan. How does that sound?”

The Air Force representative's price negotiation was direct, but left room for maneuver.

Xu Mingyuan quickly calculated in his mind that although the price was far lower than the procurement price of the Ministry of Equipment, it was still within an acceptable range and had the support of volume.

He nodded: "Thank you for the Air Force's support. Yuancheng can accept this price!"

The naval lieutenant commander followed up: "President Xu, our navy's needs are also considerable."

"The first is the electronic reconnaissance ship that is being upgraded, the 'Liaoyu 16', which requires high-performance batteries as an experimental solution."

“But that’s just the tip of the iceberg.” He paused, lowering his voice slightly, “More importantly, our naval submarine force has decided to conduct a comparative verification of our fuel cell technology (AIP system) and your gaseous lithium battery technology (Li-ion system)!”

"Of the eight submarines that are planned to be upgraded this year, four were originally planned to be equipped with liquid lithium batteries. Now that there are better options, we naturally prefer gaseous lithium batteries."

He emphasized the two core advantages of gaseous lithium for submarines:

1. Lightning-fast charging: It is estimated that the submarine can be fully charged in just 5 minutes by surfacing and using the diesel generator. This will greatly shorten the charging interval of the submarine and reduce the risk of exposure.

2. Extremely lightweight: Significantly reducing battery weight is equivalent to indirectly increasing the submarine's effective payload and endurance, which is of great value for reconnaissance and detection missions.

“Of course,” the naval lieutenant commander glanced at the air force lieutenant commander and smiled, “our treasury is still enough to last us!”

“But we have a large purchase volume!” The naval lieutenant commander revealed a shrewd smile: “With a 6% gross profit margin, we purchased 2134 million battery cells at a unit price of 131.2 yuan, for a total price of 28 billion yuan.”

"Mr. Xu, this level of negotiation is enough to demonstrate our navy's sincerity and bargaining power, isn't it?"

The price is even lower, but the volume is larger!
Xu Mingyuan felt a mix of pressure and excitement, but considering the huge order and the navy's broad application prospects, he gritted his teeth and agreed: "We understand the navy's bargaining, and Yuancheng will do its best to ensure supply at this price!"

Now Xu Mingyuan finally understood why the North American military-industrial complex was so crazy about war. Just for the military procurement of gaseous lithium battery cells, Yuancheng, a gaseous lithium battery monopoly company, had already received nearly two years' worth of orders in one go.

Although the profit margin is a bit low, the advantage is that it's a one-time thing, and you can eat your fill in large quantities!
It was finally Major Zhang Jian's turn.

He took a deep breath, slammed his hand on the table, and said in a loud but powerful voice, "President Xu! Our Army! 3% gross profit!"

"puff"

Xu Mingyuan, who was drinking water, almost choked. He put down his water glass and looked incredulously at the major in front of him, who had sword-like eyebrows and bright eyes, but a "go all out" expression. His voice was a little hoarse.

"Major Zhang? I wonder how many the Army plans to purchase this time? Tens of millions?"

Zhang Jian extended one finger, his eyes gleaming.

Xu Mingyuan's heart skipped a beat, and he tentatively asked, "One hundred million?"

At this scale, a 3% gross profit margin, while ridiculously low, isn't entirely out of the question.

Zhang Jian chuckled, shook his head, and his smile carried a hint of "You underestimate our army."

Xu Mingyuan's pupils contracted slightly: "It can't be a billion units, can it? The army wouldn't need that many batteries!"

Zhang Jian finally revealed the answer, his voice booming: "One million!" His words echoed throughout the conference room.

"."

An eerie silence instantly fell over the conference room.

The senior colonel from the Equipment Department twitched his lips and silently picked up his teacup to cover his face.

The air force and navy majors turned their heads away, their shoulders shrugging slightly as they tried to suppress their laughter.

That look seemed to say: Old Zhang, you're really something! You have the nerve to cut the price down to 3% on a million units?

Zhang Jian was completely oblivious, or rather, he simply didn't care about saving face.

What does shame matter if the army wants to use its pitiful little coffers to get more good stuff?
He's here today to beg for alms!

"Mr. Xu!"

Zhang Jian leaned forward and began to perform his "magic trick of drawing a cake," speaking with utmost sincerity.

"If you agree to supply these batteries to our army at a 3% profit margin, I, Zhang Jian, guarantee that I will immediately include your Yuancheng batteries in the 'Army General Battery Catalog'!"

Yes! There is still a significant demand for the "Army General Battery Catalog". Just how significant is it?

Zhang Jian stated that the demand is huge and will only grow larger in the future!

"Think about it, right now our country's army is making every effort to promote mechanization and informatization!"

He counted on his fingers for Xu Mingyuan.

"What kind of equipment, like individual soldier gear, communication devices, unmanned reconnaissance vehicles, and battlefield power systems, doesn't need batteries?"

Zhang Jian continued to paint a rosy picture for Xu Mingyuan, seemingly oblivious to everyone else around him.

"And this is just the beginning! Once it's included in the product line, 100 million units? A billion units? That's not a dream, Mr. Xu!"

The prospect he described was incredibly enticing, as if every soldier in the army would be equipped with a Far Orange battery tomorrow.

Xu Mingyuan looked at the major in front of him, who was "eloquent and persuasive," and felt both amused and exasperated.

Who doesn't know that?

The Air Force gets new airplanes for the New Year, the Navy gets new ships for the New Year, but your Army gets new shoes for the New Year!

Your pie-in-the-sky promise is too big and too unrealistic.

When the army has the funds to purchase one billion battery cells, India will probably have to relocate.

Xu Mingyuan waved his hand with a wry smile and began to play the victim: "Major Zhang, it's not that Yuancheng is unwilling to support national defense. You're an expert. That 3% gross profit is just a figure on paper. If the market raw materials fluctuate even slightly, we'll be operating at a loss!"

"The Navy's 6% price is already right at our cost line!" He pointed out the window: "Look at our new factory, the two new large production lines and one medium production line, all the profits have been poured into it!" "Yuancheng... Yuancheng is also out of money!" Xu Mingyuan pointed to the busy factory area outside the window, looking like "even the landlord's family has no surplus food."

One representative complained about being poor on behalf of the army, while the other represented businesses in their distress.

The two exchanged words back and forth, making the senior colonel from the Equipment Department and the major from the Air Force and Navy shake their heads. Even Xiao Zhang, Xu Mingyuan's secretary who was in charge of taking notes, couldn't help but burst out laughing.

The negotiation on military procurement prices was at one point very "deadlocked".

The negotiations had to take a break.

Zhang Jian felt a bit stifled, so he made an excuse to go downstairs for some fresh air.

He walked to the security room and greeted Old Liu, the gatekeeper, familiarly: "Uncle, busy?" He handed him a cigarette.

Old Liu saw that he was wearing a military uniform and happily took it: "Oh, a major, taking a break? Here, have a lighter!" He handed the lighter to Zhang Jian.

Zhang Jian leaned against the wall of the security room, lit a cigarette, took a deep drag, and frowned as he pondered how to "conquer" the stubborn President Xu.

Just as he was frowning in worry, a black Mercedes-Benz S600 (W221) that was understated yet exuded luxury smoothly drove into the factory gate.

Old Liu's eyes lit up, and he immediately grabbed the internal phone: "Hello, Secretary Zhang? President Chen has arrived! Yes, he just entered the gate. Quickly notify President Xu!"

"President Chen?" Zhang Jian keenly caught the title, stubbed out his cigarette, and asked casually, "Uncle, is this President Chen?"

"Oh, that's our Yuancheng's big boss!" Old Liu said casually, completely trusting the soldier.

"big boss?"

Zhang Jian's eyes lit up instantly, and he pressed on, "So, between him and President Xu, who's in charge at Yuancheng?"

"Hey! Need I say more?" Old Liu waved his hand. "Of course, it's President Chen who decides! President Xu... well, he's a high-level employee!" His words were simple and direct.

As soon as he finished speaking, the back door of the Mercedes opened.

A young man, dressed in an ordinary polo shirt and cargo pants, who looked unremarkable but had sharp eyes and a calm demeanor, walked down.

Behind him followed a young woman wearing black-rimmed glasses, carrying a file folder, and trying her best to appear capable.

Zhang Jian's gaze instantly locked onto the young man.

A soldier's intuition told him that this was the key objective that would determine the outcome of the situation!

He immediately put on a hearty smile and strode over to meet her.

"What are you doing!" a sharp, wary shout rang out.

Secretary Zhou Yumeng reflexively spread her arms, like a little beast protecting its master, and stood between Zhang Jian and Chen Mo.

Zhang Jian stopped, his smile unchanged, and flashed his military officer's ID to Zhou Yumeng, who was clearly nervous: "Don't be nervous, young lady! I'm Zhang Jian, the head of military procurement. I'd like to get to know your General Manager Chen!"

Chen Mo's gaze swept over Zhang Jian's shoulder insignia and identification, then he gently patted Zhou Yumeng's tense shoulder and said to Zhang Jian in a gentle tone, "I'm sorry, Major Zhang, she's only been in office for a few days and is a little nervous!"

Zhou Yumeng blushed instantly when she saw the military uniform, and quickly lowered her hand to apologize: "I'm so sorry, Major!"

Just then, Xu Mingyuan, having received the message, hurriedly ran out of the administration building.

He immediately saw Zhang Jian and Chen Mo walking towards him, seemingly having a pleasant conversation. The bright smile on Zhang Jian's face made Xu Mingyuan's heart sink.

Oh no! This guy has outmaneuvered us!
Sure enough, before Xu Mingyuan could even speak, Zhang Jian said to Chen Mo in his uniquely infectious and hearty voice, "President Chen, then it's settled!"

Zhang Jian glanced at Xu Mingyuan with a smug look, then continued speaking loudly to Chen Mo.

"You must come to our base when you have time. I'll personally show you how to do target practice. If you happen to be there during training, you might even get to touch our new tank!"

Chen Mo replied with a smile, "Definitely, definitely, Major Zhang, you're too kind!"

Shooting guns and tanks are both passions and romances that men yearn for!

"President Chen!" Xu Mingyuan quickly stepped forward and forced a smile as he greeted him.

When Chen Mo saw Xu Mingyuan, he smiled and nodded, and then, in front of Xu Mingyuan, he made the decision directly in an unquestionable tone.

"President Xu, you've come at the right time. Regarding Major Zhang and his army's battery procurement, we'll take a 3% profit margin. Supporting national defense is our responsibility at Yuancheng!"

Xu Mingyuan: "."

Looking at Zhang Jian's undisguised, radiant smile, and then at his own boss's matter-of-fact expression, a strong sense of resentment welled up in his heart.

Mr. Chen, do you know what this 3% means?

This is practically forcing Far Orange to take a huge loss!
But what could he say at that moment?

Xu Mingyuan could only force a smile and nod: "Yes, President Chen, I understand. I'll do as you say!"

He could only console himself: fortunately, the high profits from the equipment department's centralized procurement were a safety net, so he could consider this million units as the cost of cultivating production capacity, improving yield, and training skilled workers.

Zhang Jianzhi was very pleased with himself. After returning to the conference room, he couldn't help but "modestly" show off to his two colleagues from the Air Force and the Navy.

"Gentlemen, our army has reached an agreement to purchase one million battery cells at a 3% profit margin!"

His tone made it sound as if he had accomplished an impossible task.

The air force and navy majors were taken aback at first, then exchanged a glance and said to Zhang Jian in unison, "Old Zhang, that's not fair of you! Why didn't you say so earlier if you had this connection?"

The Air Force major immediately turned to Xu Mingyuan: "General Xu! Our Air Force also has new aircraft! For just 3%, I can take General Chen to see the latest model."

He was interrupted by the naval lieutenant commander before he could finish speaking.

"Hey, Mr. Xu! Our navy also has new ships. If your Mr. Chen is interested, you only need to arrange a 3% tour!"

Xu Mingyuan was completely dumbfounded. He ran away with the signed purchase contract in hand. If things continued like this, Yuancheng would lose everything.

Zhang Jian's smile froze. Looking at his two "Versailles" colleagues, his little bit of pride vanished instantly, leaving him speechless.

Damn it! Your Air Force has more money than it can spend, why are you getting involved in this mess?!

What if Yuancheng stops giving preferential treatment to our army in the future? Zhang Jian suddenly regretted showing off in front of his colleagues.

However, Chen Mo did not have the chance to experience Kong Hai's enthusiastic "invitation to visit".

After finalizing the army procurement, he immediately immersed himself in the newly expanded No. 1 experimental building of Yuancheng.

There, Liu Mingzhen, the technical director of Far Orange, and her core team are on high alert.

Chen Mo's core objective for this trip is to lead his team to overcome the challenges of developing and mass-producing Level 1 and Level 2 boosting technologies for gaseous lithium batteries.

While military orders are important, continued technological leadership is the foundation for Far Orange's future survival and development.

Currently, gaseous lithium batteries are only slightly inferior to fuel cells in terms of electrical capacity.

Once the third-generation gaseous lithium battery is available, the debate between AIP systems and Li-ion systems in the submarine field will likely come to an end.

The costs of the two are similar and both are quite high, but once the capacity of gaseous lithium batteries catches up.

With its advantages in safety and lightweight design, coupled with its overwhelmingly superior charging speed, what makes fuel cells stand out in the competition for dominance in submarine battery solutions?
In Chen Mo's view, the navy will be the core major supplier of military equipment for Far East Orange in the future, and the demand for batteries from aircraft will ultimately be limited.

As for the Army, if it weren't for concerns about the Air Force and Navy's opinions, the cost of one million battery cells would only be 1.2 million yuan, which he could afford to give away personally if he gritted his teeth.

Of course, Chen Mo was powerless to meet the demand of items like the Air Force, which often had a demand of nearly ten million units.

After all, Far Orange needs to support a large group of people, and ultimately it still needs to make a profit.

The heavy doors of the laboratory building closed behind Chen Mo, isolating him from the outside noise and power struggles.

Inside, another silent yet equally fierce technological battle will unfold.

Holding her laptop, Zhou Yumeng stood attentively and nervously in the rest area outside the laboratory, beginning her first "logistical support for scientific and technological breakthroughs" task as a secretary.

Although Far Orange has more than a thousand workers, its production lines are still operating at full capacity, so it continues to recruit workers.

In this military procurement, the higher authorities intend to support gaseous lithium batteries, and the order volume placed at one time reached 9677 million battery cells, totaling 120 billion yuan, which is equivalent to the volume that Yuancheng will be able to undertake in the market for the next two years.

This is clearly a move by higher authorities to accelerate the development of Yuancheng. It makes sense, considering we've already fully committed to the new energy strategy, so we don't need this little bit of money.

This is just from military procurement; behind that, there's a batch of state-owned enterprises that will really take the lion's share!

As for why military procurement comes first, it's mainly because they dare to give you a 60% deposit upfront, and they're not afraid you'll renege on the payment!

Yuan Cheng: What is the feeling of being pushed back? This is what you call the feeling of being pushed back. Even if you're not ambitious, it will push you forward.

It is conceivable that Yuancheng's production capacity will expand rapidly like an inflating balloon in the next three months, and new production lines are already being prepared in full swing!
In an effort to recruit workers, Far Orange even sent people to "block the door" of the opposite Betley restaurant, poaching hundreds of workers.

The neighbor was furious with the orange, and immediately complained to the district, saying that the newcomer "lacked sportsmanship".

District Chief Zhang stated that he would definitely issue a serious warning to Yuancheng.
As for the follow-up?

I've already stated my position, what are you still expecting?

(End of this chapter)