Tech startup: I really do make mobile phones!

Chapter 182 Contract Factory Acquired

Yingtian International Airport.

In July, the heat of Yingtian, mixed with the dampness after the plum rains, hits you in the face, and the air seems to have a sticky feel to it.

The appearance of Chen Mo and his group attracted some attention at the bustling airport exit.

He was wearing a well-tailored light-colored business shirt, with an upright posture and a calm expression.

Now that Chen Mo is one of the 32 directors of the China Entrepreneurs Club, he no longer needs to wear a more conservative suit to constantly demonstrate his composure.

Half a step behind him followed Zhou Yumeng, a petite secretary carrying a slightly oversized briefcase, and Lin Junfeng, the legal supervisor with frameless glasses and a cool demeanor.

A little further away is bodyguard Xiao Zheng, whose sharp eyes are always alert to his surroundings.

This group of people exudes an aura of elites who are unapproachable.

As soon as we exited the gate, the Nietzsche Company staff, who had been waiting there, immediately came to greet us.

The leader was a middle-aged man wearing gold-rimmed glasses who looked very capable and introduced himself as President Lu's assistant.

Ever since Lu Laowu was tricked by his secretary Xiaoli in collusion with outsiders, he no longer dares to hire secretaries, and has even replaced his assistant with a grown man.

At least for now, Lu Laowu's mistress has no access to any of Nietzsche's business.

"Mr. Chen, you must be tired from your journey! The car is ready, and Mr. Lu is waiting for you at the company." The assistant said with a smile and a respectful tone.

Zhou Yumeng had already arranged everything beforehand, so she nodded slightly and raised her hand to ask the other party to lead the way.

The group silently followed the other party, quickly weaving through the crowd, and boarded two black luxury vans, heading towards Nietzsche's headquarters in the center of Yingtian City.
The headquarters of Nietzsche in Yingtian, located in the building.

Under the blazing sun, a familiar figure stood conspicuously at the doorway; it was none other than Lu Laowu, Nietzsche's boss.

His shiny bald head almost reflected the sunlight, and his forehead was covered with fine beads of sweat.

Then, Lu Laowu took a chilled white towel from the executive next to him and wiped himself every now and then.

"Damn it, this Chen guy's really something now, acting all high and mighty. People are throwing things at him and he still doesn't come!"

Upon seeing the car arrive, his demeanor immediately changed. He put on a smile, jogged forward, and personally opened the back door for Chen Mo.

"Oh my! Mr. Chen! Welcome, welcome! You must be tired from your journey!" Lu Laowu's voice was loud and clear, with a heavy coal-producing province accent, and his enthusiasm was almost exaggerated.

The enormous gold ring on his finger was particularly dazzling in the sunlight.

In the year or so that Lu Laowu regrouped and made a comeback, Lu Laowu rose again.

Chen Mo bent down and got out of the car, shook hands with him, and put on a business-like smile.

"Mr. Lu, you're too kind. It's too kind of you to come and greet me personally!"

During their pleasantries, Chen Mo's gaze inadvertently swept across the street to Nietzsche's spacious flagship store.

The store was bustling with people, and customers kept coming in one after another; the business seemed to be thriving.

"President Lu, it seems that the sales of your Nietzsche 2 are quite good!" Chen Mo's tone carried just the right amount of curiosity, which could be considered as a preliminary probe.

Upon hearing this, Lu Laowu laughed heartily and patted his round belly vigorously.

"Thanks to President Chen! Thanks to President Chen! If it weren't for you giving me a hand back then, Nietzsche would have been finished long ago!"
"Now that's great, all the toughest parts like R&D and manufacturing have been handed over to you guys at Orange, so I can focus on building sales channels. It's much easier!"

Lu Laowu spoke eloquently, but a hint of smugness and relaxation flashed in his eyes.

Orange is gnawing on a bone.
Chen Mo raised his eyebrows almost imperceptibly, his smile remaining unchanged.

He knew perfectly well what was going on: this old fox, when the cash flow dried up, he begged and pleaded with everyone, but now that he's recovered, he's starting to have his own little schemes again.

When Orange saved Nietzsche, he made the conditions clear.

Now, Lu Laowu is enjoying the benefits of having the distribution channels and brand, yet he subtly complains that Chengzi is controlling his R&D and OEM operations.

You can't have your cake and eat it too; you can't expect to have it all!
"Mr. Lu is too kind. It's all about win-win cooperation!" Chen Mo replied casually.

Lu Laowu then warmly put his arm around Chen Mo's shoulder: "Come on! President Chen, the welcome banquet is all prepared. We must have a good drink today so I can show you all the hospitality! Please join us!"

He turned around and had Nietzsche's executives greet Zhou Yumeng, Lin Junfeng, and Xiao Zheng.

The welcome banquet was held in a private room at a high-end hotel, and it was extremely luxurious.

When the executive poured him a drink, Chen Mo waved his hand, and the atmosphere suddenly became a little awkward.

Seeing that the atmosphere was not right, Lu Laowu picked up his teacup and smiled as he tried to smooth things over.

"Since Mr. Chen doesn't drink alcohol, let's use tea instead to show our friendship!" He recited this catchy rhyme with a touch of江湖 (jianghu, a term referring to the world of martial arts and chivalry) spirit, which immediately eased the tension at the table.

Chen Mo seemed amused and chuckled, then picked up his teacup and gently clinked it against his.

"With Mr. Lu's eloquence, he would be absolutely top-notch as a salesperson!"

Lu Laowu's expression turned cold, and he tightened his old face.

Several senior executives accompanied Nietzsche, and the atmosphere was lively with toasts and conversation, but most of the remarks were just polite formalities.

After several rounds of tea and several dishes, Lu Laowu gave Chen Mo a wink and invited him to the quiet tea room next door.

"Mr. Chen! I still have some good tea stored here. Let's enjoy it in the tea room next door and talk about some serious business!"

tea room.

Elegant women in cheongsams performed a tea ceremony. After a series of elaborate performances, the aroma of tea wafted from the tea tray.

Lu Laowu skillfully stirred the incense and sipped the tea, and the drunkenness on his face seemed to have dissipated considerably.

"President Chen, the company that took over the 32.63% stake this time is Yingtian Expressway Group."

Lu Laowu took a sip of tea and got straight to the point.

"As you know, their toll booths make money faster than a money printing machine. This year, the smartphone market is booming. They are optimistic about our Nietzsche and have given us a comprehensive PE valuation of 40 billion. They are willing to invest 13 billion yuan of real money!"

"40 billion?"

Chen Mo picked up his teacup, gently blew on it, and looked at Lu Laowu through the rising steam, his tone indifferent.

"Our Orange's valuation report, commissioned by a third party, is 48 billion! Is Mr. Lu paving the way for Nietzsche's A-share listing in advance?"

Lu Laowu, having his thoughts exposed, wasn't embarrassed at all. He just laughed and wiped his bald head.

"Damn it, nothing can be hidden from you, Mr. Chen. We work so hard in sales, exhausting ourselves, and we don't even earn a fraction of what others make in the stock market!"
Don't worry, if Nietzsche makes money, you'll definitely get a share!
As for the valuation, let's start low to make things easier later, so everyone can make a profit!

His words revealed a yearning for the capital market and a shrewd calculation of immediate interests.

It seems fair, but in reality it's just "promising the moon" to Chen Mo.

Chen Mo hasn't yet received the benefits of Nietzsche's future IPO, but he's already facing valuation losses.

In this world, only what you truly hold in your hands counts; any promises made to you by others are meaningless!
Chen Mo put down his teacup, leaned forward slightly, and stared sharply at Lu Laowu.

"Mr. Lu, let's not beat around the bush. I'm too lazy to investigate Nietzsche's accounts in detail. Before the money from Yingtian Expressway came in, Orange took over Nietzsche's OEM factory in Shenzhen. Is that alright?"

Chen Mo wasn't going to take advantage of Lu Laowu's grand promise of a public listing; he wouldn't back down unless Nietzsche bleeds a little.

Lu Laowu's smile froze for a moment, his brows furrowed almost imperceptibly, but he quickly relaxed and resumed his hearty demeanor.

He knew very well that the OEM factory had long been infiltrated by Orange, with Orange firmly holding the technology and quality control, and even incorporating Orange's Smart Supply Chain Management (SRM) system.

Nietzsche's own headquarters are in Yingtian, which is too far away for him to effectively manage, so this contract manufacturer has become practically useless.

Now, this useless OEM factory has become Lu Laowu's only bargaining chip.

Chen Mo's words had a clear subtext: I know you, Nietzsche, have some shady dealings, but I only want the contract manufacturer; I can temporarily overlook the rest. It was an unspoken deal.

Lu Laowu used a contract manufacturer that he could no longer control to gain Chen Mo's tacit approval for certain "financial operations" and to successfully introduce Yingtian Expressway, a shareholder with a strong background, paving the way for a future listing.

If Nietzsche successfully goes public, it could be valued at 15 to 25 times the price-to-earnings ratio of the smartphone industry, which would amount to nearly 60 to 100 billion!

Lu Laowu quickly weighed the pros and cons, and finally grinned: "Alright! President Chen is a man of few words! Then it's settled!"

With Lu Laowu's cooperation, the negotiations with Yingtian Expressway went exceptionally smoothly.

The other party values ​​the technological halo and brand synergy of "Orange" behind Nietzsche, and is not overly concerned with the details of valuation.

Ultimately, all three parties agreed on the valuation of Nietzsche after the divestiture of the contract manufacturer, setting it at 48 billion yuan.

The shareholding structure has changed to: Lu Laowu holds 33.97% of the shares, Orange Technology holds 33.40% of the shares, and Yingtian Expressway holds 32.63% of the shares.

As part of the deal, Lu Laowu received 1.5 million yuan in cash from Nietzsche's account, Orange Technology acquired ownership of the Shenzhen OEM factory, and Yingtian Expressway successfully acquired a stake at a relatively favorable price (based on a valuation of 48 billion yuan).

All three parties got what they wanted, and everyone was happy.

The signing ceremony was held in the largest conference room at Nietzsche's headquarters. Amidst flashing lights, representatives from the three parties signed documents, exchanged papers, and shook hands, their faces beaming with success.

The following day, local print media and financial news websites in Yingtian reported on the incident.

A Powerful Alliance! Yingtian Expressway Invests Heavily in Nietzsche, Further Expanding its Smart Terminal Strategy

Orange's strategic partner, Nietzsche, has introduced significant state-owned capital, with its Series A valuation reaching a record high of 48 billion yuan.

Lu Laowu's Capital Strategy: Nietzsche Wins Favor with Yingtian Expressway, Is an IPO on the Way?

In the evening, the atmosphere relaxed in the presidential suite of the Yingtian Hotel where Chen Mo was staying.

The suite is extremely spacious, featuring a master bedroom, three side bedrooms, and servants' quarters.

Chen Mo naturally stayed in the master bedroom, while Lin Junfeng, Zhou Yumeng, and Xiao Zheng each stayed in a side bedroom.

Lin Junfeng took the newly acquired copy of the official contract and conducted a final review.

He walked into the living room and whispered to Chen Mo, who was resting with his eyes closed on the sofa, "Mr. Chen, Lu Laowu is indeed dishonest. My preliminary estimate is that he has transferred more than 4000 million of Nietzsche's profits to an upstream company that he controls through related-party transactions."

Chen Mo opened his eyes, smiled, and waved his hand.

"Never mind, Manager Lin, suffering a loss is a blessing!"
We have achieved our main goal this time and successfully secured the contract manufacturer.

He bought it for 200 million yuan a year ago. Now that the yield rate and scale have improved, we took it over at the original price, which is already a great deal.

These trivial details are unnecessary to investigate!

Chen Mo knew that the biggest victory was that Orange's strategic 33.4% stake in this transaction had its paper value soar from the initial 8.684 million to 16.032 billion, nearly doubling in just one year.

His own paper wealth naturally increased as well.

At this moment, Zhou Yumeng came over with a cup of freshly brewed tea and respectfully handed it to Chen Mo: "President Chen, here is your tea."

Then, she handed Lin Junfeng a glass as well, speaking in a businesslike tone: "Mr. Lin, this is yours!" Her words even carried a barely perceptible hum at the end.

Finally, she didn't forget to pour a drink for Xiao Zheng.

Xiao Zheng was somewhat flattered and quickly accepted the gift with both hands, thanking it in a low voice.

Zhou Yumeng returned his smile with a friendly one.

Then, Zhou Yumeng took a report out of the file bag and handed it to Chen Mo.

"Mr. Chen, this is a report faxed over by Mr. Zhao. It's an analysis of the operational model and promotional suggestions from Lin Xiaoxia's team after their inspection of the flagship store in Southwest China."

Chen Mo took the report, sipped his tea, and gestured for Zhou Yumeng to sit down.

He didn't look through it immediately, but instead instructed, "Xiao Meng, make a note that the contract manufacturer we got from Nietzsche this time will be directly assigned to the supply chain group of the marketing department."

The original head of the supply chain management team was Zhao Tiezhu's confidant, Brother Baiwan. Who is it now?

Chen Mo paused for a moment, then asked, "By the way, Xiao Meng! Who's the leader of the supply chain team now?"

Zhou Yumeng thought for a moment and answered immediately.

"It's Fang Zhihui! A core member of the company's '54 Orange Juice' product line, and one of the two more low-profile members of the marketing department's 'Four War Gods'."

Zhou Yumeng spent a lot of time paying attention to the middle and senior management of Orange Company and the senior management of Orange Group.

"He started out as a warehouse manager at Foxconn, and later gained experience in the channel group and supply chain group. He just obtained his supply chain management certificate at the beginning of this year. In March, after the original team leader Zeng Baifang was transferred to the centralized procurement group, he took over the position!"

"Yes, Fang Zhihui!" Chen Mo recalled for a moment and nodded, "I remember him, he's considered a long-time employee!"

"The supply chain team needs to deal with the contract manufacturers and familiarize themselves with the situation right now. Have Tiezhu inform him that he will be in charge of the specific supervision of the contract manufacturers from now on!"

After a moment of contemplation, Chen Mo added, "Currently, Orange 2's production capacity is ramping up, which is a critical period. The contract manufacturer should maintain the status quo for now. Once the production capacity stabilizes in six months, we will begin to relocate and integrate this contract manufacturer to Takihwa."

Zhou Yumeng quickly jotted down all the key points.

After explaining all this, Chen Mo opened Lin Xiaoxia's report.

As he looked at it, a look of surprise appeared on his face.

Chen Mo had almost forgotten about the cyberpunk-style "Half Orange Building" that his second sister, Chen Lan, had built in the southwestern mountain city.

Unexpectedly, it came into his view again in the form of such a detailed and professional business model analysis report.

Lin Xiaoxia's report provides a detailed analysis of the advantages and replicability of the Southwest flagship store's "immersive experience center + diversified self-operated business format" model, with detailed data and a clear line of reasoning.

After a moment's thought, Chen Mo gave instructions to Zhou Yumeng.

"Have Zhao Tiezhu contact Manager Chen in Shancheng and ask her to take the lead in compiling a detailed reference template and standard operating procedure (SOP) for the entire model of the Southwest flagship store, from construction to operation."

In the future, when Orange builds directly operated flagship stores in other regions across the country, we will use this as a basis for replication and optimization!

“Okay, Mr. Chen!” Zhou Yumeng wrote it down.

Chen Mo recalled the self-operated luxury and affordable clothing brands mentioned in the report, as well as the exquisitely designed Q-version cartoon characters of 54 orange pieces created by the design team of the technology department, who were "not doing their job properly".

"Also, tell Zhao Tiezhu to tell Store Manager Chen that the flagship store's own brand could consider a joint collaboration with the company's technical department design team."

For example, we could license the '54 orange pieces' chibi-style character and develop some co-branded T-shirts, accessories, or trendy items to test the waters!

He thought that Xiaomi, the mascot who had always relied on Gong Yun's "care" and had been eating for free at the company, could create some commercial value by designing a few more cartoon Q-version versions of Xiaomi, allowing it to sell its image and earn cat food.

After all this was arranged, the sky outside the window had completely darkened, and neon lights were just beginning to appear.

Chen Mo clapped his hands and stood up: "Alright, everyone has worked hard today. We have to fly to Shanghai tomorrow, so everyone should get some rest!"

Afterwards, Chen Mo returned to the master bedroom.

Lin Junfeng also took his teacup and went back to his room.

With only Zhou Yumeng and Xiao Zheng left in the living room, the atmosphere between the two "low-level working people" immediately relaxed.

"Little Zheng! Little Zheng!"

Like a little hamster, Zhou Yumeng took out several packets of snacks from her bag and smiled as she invited Xiao Zheng to eat with her.

"Give~"

A rare, relaxed smile appeared on Xiao Zheng's usually tense face.

(End of this chapter)