Tech startup: I really do make mobile phones!

Chapter 226 Going home for the New Year
The black Mercedes-Benz S600 drove smoothly on the highway, its engine emitting a deep and powerful hum.

Xiao Zheng was driving, with his second brother-in-law Fan Xingping in the passenger seat, and Chen Mo and his second sister Chen Lan in the back, having an in-depth discussion about the future of the "VC (Valentina Orange)" brand.

"Second sister, I've asked Morgan Stanley, a top financial institution, to make a plan for the subsequent operation of 'VC'!" Chen Mo said.

"Simply put, it's a three-step process: first, solidly develop the brand; then, expand through mergers and acquisitions; and finally, move towards financialization!"

Chen Lan was completely confused and lightly tapped Chen Mo's arm in annoyance.

"You brat, why are you using all those fancy words with your sister? Speak in a way I can understand!"

Xiao Zheng and Fan Xingping in the front row immediately looked straight ahead, pretending they hadn't heard anything.

Chen Mo chuckled and rubbed his arm, explaining, "Okay, okay, to put it simply: development, mergers and acquisitions, and listing!"

Seeing that Chen Lan was still a little confused, Chen Mo asked in a different way.

"LV, you know it, right?"

"Of course I know!" Chen Lan perked up, even lowering her voice with a hint of pride: "I'm not afraid to tell you, many of my previous designs were actually 'homages' to the popular styles from the Linlang Group by their designers!"

Chen Mo smiled.

"Do you know that behind LV is a huge luxury goods empire called L-VMH Group?"

He patiently explained the science to his second sister.

"It owns not only LV, but also fashion and leather goods brands such as Fendi, Celine, and Givenchy; fine wines such as Yue Ming Champagne and Shih-ni; jewelry and watches such as Bulgari and Zhenlishi; and even Sfulan cosmetics stores."

Chen Lan's eyes lit up: "Wow! Such a big background? So you mean our 'VC' is also..."

“That’s right!” Chen Mo nodded affirmatively: “Our domestic economy has developed so rapidly in recent years, and the potential for future luxury consumption is enormous.”

"VCs can learn from L-VMH's model, taking themselves as the core, and through continuous development and acquisition of other brands, eventually go public and use the power of the capital market to grow rapidly."

I've thought it all out for you. L-VMH's core is French luxury brands, while we can focus on Italian luxury brands.

"As for the liquor industry," he paused, "we can hold shares in some well-known domestic liquor brands for the long term, such as Maotai and Wuliangye."

It's not for business purposes, but mainly to enhance the VC group's foundation and storytelling ability.

"At that time, we will transform 'VC' into 'China's No. 1 luxury goods group,' and with Morgan Stanley's help, list on NASDAQ in North America!"

Chen Lan was stunned by Chen Mo's grand vision.

She initially just wanted to make some quick money by creating a "knock-off" luxury goods business, but she never expected that Chen Mo's move would directly elevate the scope to the level of global capital operations.

She suddenly felt a little scared. How could a high school student like herself possibly handle such complex things as IPOs and mergers and acquisitions?
Chen Mo noticed his second sister's worry and provoked her, "Second sister, are you scared?"

"Who's scared!" Chen Lan immediately straightened her back. "Scared? Xiao Mo! I'm just worried that if I mess things up, I'll lose all your money!"

Chen Mo smiled easily: "Don't worry! With Morgan Stanley in charge of capital operations, even if we really lose money, the lion's share will go to the North American shareholders."

Our physical stores and brand are still there. At worst, we can just sell the brand and stores, pack our bags, and walk away – a sure-fire way to make a profit!

Chen Lan thought he was joking to comfort her, and retorted, "You make it sound so easy! Why would that Da Mo help us for nothing?"

"This isn't a free help!"

Chen Mo explained, "Do you know who supported L-VMH's IPO and who served as its M&A advisor back then? It was its competitor, Goldman Sachs."

Morgan Stanley and Goldman Sachs are competitors globally.

Therefore, Morgan Stanley is happy to support a new luxury goods giant to compete with Goldman Sachs' L-VMH.

It is not only willing to support us, but has also been supporting Switzerland's RG Group (which owns Cartier, Vacheron Constantin, etc.).

They are willing to bet on any promising player who is willing to enter this arena.

Chen Lan suddenly realized: "I understand! This so-called 'Big Mo' is just 'raising a gu' to see who can break through, and it will make a fortune from whoever can do so!"

"Second Sister, your analogy is a bit rough, but the principle is similar," Chen Mo said with a smile.

Then, Chen Mo got to the point.

"Second sister, if you really want to make 'VC' a career, you can't keep 'paying homage' to it."

We must develop our own unique style, especially the 'flower-growing style' that I mentioned to you before.

Inspiration can be drawn from ancient clothing, artifacts, and traditional textiles.

Chen Lan said with a hint of resentment, "You make it sound so easy! You think you can just say it with a few words?"

I'm currently managing the direct sales channels in Southwest China and also worrying about the flagship store in Chongqing. Where do I find the energy to find designers and negotiate with OEM manufacturers?
"I just wanted to save time, so I outsourced the manufacturing to Linlang!"

"I have already entrusted Morgan Stanley to handle this matter."

Chen Mo was prepared: "You previously obtained authorization from the low-end brand 'Valentina-Giovanni'."

It also has two sister brands: 'Valentina Mary Jane' (mid-range) and 'Valentina Gravani' (high-end).

Subsequently, Morgan Stanley will help us acquire the Giovanni and Mary Jane brands as a whole.

The production line will be moved to China, but the design team will remain in Italy to maintain its 'pedigree'.

Second sister, you'll primarily be responsible for the brand operation and development of 'VC,' while Morgan Stanley will handle mergers and acquisitions and IPOs.

Chen Lan keenly sensed: "From what you're saying, you're going to separate 'VC' from the Orange system?"

"Okay!" Chen Mo nodded: "Register a 'VC' brand management company in Shancheng."

The funds for this acquisition of Zofani and Mary Jane will be provided by Orange Technology, which will hold 70% of the shares, while you, as the operator and founder, will hold 30%.

As the IPO process unfolds at Morgan Stanley, our shareholding will be gradually diluted, but my bottom line is that Orange Technology, including your shares, must maintain a minimum of 33.4% to ensure we retain control over the company's operations.

Chen Lan doesn't understand capital operations very well, but she is very clear about what she is good at.

“You handle the financial matters with Morgan Stanley, and I’ll take care of opening the shop and selling the goods.”

"Aren't you planning to open an orange flagship store in Great Ross? I'll set up a 'VC' counter there too!"

"no problem!"

Chen Mo smiled and then mentioned someone.

"By the way, I don't know much about capital operations either, but Xiaomin should have learned some related knowledge at Morgan Stanley. Second sister, why don't you ask her if she'd be willing to help you?"

Chen Lan raised an eyebrow: "If you can't even get her to come, how could I?"

Chen Mo smiled.

"Isn't she your cousin? You might say something different."

Chen Lan was speechless: "Isn't she your cousin too? You two grew up together at the same age!"

Chen Mo continued to encourage his second sister. "Maybe she'd rather work with her cousin?"
Mom received a message from my third aunt that Xiaomin is also going home for the Chinese New Year today, and asked us to pick her up on our way.

You can ask them then!

"Brothers fight tigers together, fathers and sons go to war side by side; in our Chen family, she's the most academically gifted."

Chen Lan looked at Chen Mo and teased, "What's the use of being good at studying? In the end, you'll still have to work for this brat."

"Haha!" Chen Mo laughed smugly, "I rely on my skills and foresight!"

"You're getting all worked up over me for being fat!" Chen Lan laughed and scolded, "If you have such good taste, then why do you insist on choosing Italian luxury brands and domestic liquor?"

Chen Mo suppressed his smile and began to analyze the situation seriously.

“Italian’s brand style is relatively casual, and the world’s luxury goods discourse power is mainly in the hands of the L-VMH and RG groups. We will face less resistance in integrating the relatively scattered South Ou Italian brands, and it will be easier to form a cluster effect.”

Italy has many established luxury brands, enough for us to integrate, tell a compelling story, and boost our stock price.

"What about the Northern Gull and the Eastern Gull?" Chen Lan asked curiously.

“Northern Ou has a small population and market, at most it can only have one Hermès brand. As for Eastern Ou,” Chen Mo paused, then smiled and said, “Eastern Ou’s spending power has always been… you know, it’s hard to cultivate any well-known luxury brands.”

Dongou's fashion and leather goods brands primarily focus on cost-effectiveness.

Chen Lan understood: "So, for our acquisition, it has to be an Italian brand?"

"You could say it's a 'backdoor listing,' using a foreign brand to make money off us!"

Chen Mo nodded: "Once the 'VC' Group has more brands under its umbrella, we can even leverage the strong domestic industrial chain to create a complete luxury goods ecosystem!"

"What about baijiu? Foreigners don't like to drink it."

"We're not really going to sell liquor!" Chen Mo explained, "but because domestic liquor stocks have great long-term appreciation potential."

We hold these shares for two reasons: firstly, to preserve and increase our assets; and secondly, to present a story of "Eastern luxury lifestyle" to future North American investors, thus facilitating Morgan Stanley's capital operations!

Chen Lan nodded as if she understood, while Fan Xingping in the front row listened with great interest.

The car quickly arrived at the provincial capital's high-speed rail station and picked up his cousin, Chen Min.

Taking the opportunity, Chen Lan extended an invitation, hoping that Xiao Min could come and help her at the soon-to-be-established "VC" company.

As expected, Chen Min declined, saying she wanted to spend more time learning in the position of assistant to the executive director at Morgan Stanley.

She cleverly changed the subject, blinking her big eyes as she asked, "Third Brother! Don't just talk about me, how far have things progressed between you and Miss Lu?"

Upon hearing this, Chen Lan immediately perked up and grabbed Chen Mo: "Hey! Little Mo, tell me honestly, what Miss Lu? What's going on?"

Chen Mo inwardly groaned, never expecting to be "betrayed" by his cousin, Xiao Min.

If my second sister finds out, it means Dad will find out, and if Dad finds out, Mom will soon find out too, and then we'll inevitably get a lot of questioning.

He could only offer a vague explanation: "It's just... a friend. We have some mutual feelings, but we're both busy with our careers right now, so marriage is still a long way off!"

Chen Lan knew that Chen Mo was now very ambitious and his career was thriving, so she didn't ask any further questions.

When she attended the annual meeting and saw the hundreds of executives and outstanding employees, and Chen Mo casually mentioned that the annual meeting cost more than 1800 million yuan, she realized that Chen Mo's world had far exceeded her imagination.

On the way back to the village, Chen Min was picked up. When Auntie saw Chen Mo's luxury car, although she didn't know its exact value, she knew that her nephew had made something of himself.

Chen Min curled her lips to the side, thinking that her third brother was more than just successful; he had even appeared on TV and shaken hands with the leaders. If he hadn't told her to keep a low profile, she would have already spread the news.

The black Mercedes drove all the way to the entrance of the old house.

My mother was sweeping the floor when she saw a car coming. Thinking it was a stranger wanting to park, she quickly waved her hand to indicate that it was a private yard.

Only after Chen Mo, Chen Lan, and Fan Xingping got off the car one by one did she exclaim with delight, "Baby! You're back!"

However, when she saw Chen Lan and Fan Xingping behind her, her face instantly darkened. She merely glanced at them indifferently without greeting them, leaving the two carrying gifts standing awkwardly in place.

It seems that Mom still harbors resentment about her second sister's sudden departure and disappearance ten years ago.

Chen Lan was gently nudged by Chen Mo, and mustered her courage to say, "Mom, I've come to see Dad! This is Dad's home too. As long as Dad still acknowledges me, I am his daughter, and I can come into this house!"

Her mother ignored her, but instead pulled Chen Mo aside and asked her about her well-being. Then she noticed that the driver, Xiao Zheng, was also in the car.

My mom joked, "Your little workshop in Shenzhen is doing better and better! You even have a driver and a car now!"

Chen Mo smiled but didn't offer any further explanation.

On New Year's Eve, although my mother still had some complaints about my second sister and her husband, the family finally sat down together for a reunion dinner.

After dinner, Mom took Chen Mo to find a place to burn paper money for their ancestors.

She murmured the names of one Chen ancestor after another. The complex clan relationships made Chen Mo secretly gasp. He thought to himself that he couldn't possibly remember all of them when he came to burn the offerings himself.

According to the customs of my hometown.

Chu Yizai: My son is going to visit his parents' home for the New Year with gifts, and Chen Mo brought back some local specialties from Shenzhen.

Chu Erlang: The son-in-law was going to visit his parents-in-law for the New Year. His second sister's husband brought some local specialties from the mountain town, which his mother accepted with a cold face.

On the third day of the Lunar New Year, people send away poverty by emptying the garbage, setting off firecrackers, and shouting "Poverty ghosts go, rich ghosts come!" This symbolizes sending away poverty and welcoming wealth.

Chen Mo stayed at home until the Lantern Festival.

According to village tradition, there is a dragon lantern dance activity during the Lantern Festival.

In previous years, the "dragon head spot" for the dragon dance in Chenjia Village was always "snatched up" by Mr. Chen, who had returned from the town's soy sauce factory.

This year, when Mom saw Chen Mo come back in a luxury car with a driver, she was convinced that he was really rich, so she told him to "snatch the dragon head" and bring honor to the family.

Chen Mo didn't care about spending a little money to improve his family's status in the village, so he directly took out 20 yuan and "snatched" the spot for the dragon dance "head" from Mr. Chen, the owner of the soy sauce factory.

This incident made my father look good in front of his brothers, and the smile on his face never left him.

Unexpectedly, Mr. Chen, whose spot was taken, was not angry at all, but rather quite happy. He kept praising Chen Mo, such a promising young man, for being born in the village, and even enthusiastically offered to introduce his distant cousin to him.

My mom was also there to help bring them together, and the scene suddenly became lively.

Chen Mo was startled by this sudden "blind date frenzy." Not long after the New Year, he quickly booked plane tickets with his second sister and brother-in-law and went to the mountain city early, just in case he was dragged into talking about marriage again.

On the one hand, it was to get rid of the "marriage pressure" from her family, and on the other hand, it was because Orange Micro Motor had brought good news.

The second and third generation products of Phoenix Glass and the leaf vein micro-cooling system have been successfully prepared in the laboratory.

As the source and core promoter of these technologies, Chen Mo needed to go and check it out in person.

After all, he hadn't even seen the actual effects of the first generation of products with his own eyes.

(End of this chapter)