Tech startup: I really do make mobile phones!

Chapter 237 The Mission of Industry

Outside the window, the thin mist over the Jialin River had not yet dissipated, and the river breeze slipped in through the gaps in the blinds, causing the edges of the scattered documents on the table to curl slightly.

At the negotiating table, smoke mingled with a heavy atmosphere.

Chengke General Manager Feng Guofu forcefully pressed the nearly burned cigarette butt from his fingertips into the already overflowing ashtray.

This action seemed to be a signal, breaking the stalemate and silence that had lasted for two days and three rounds of intense exchanges.

Sitting in the three chairs opposite him were representatives of a giant that accounts for half of the global optical glass market.

The Asia-Pacific president of North American Kangning (market capitalization of US$710 billion) has a stern face;
The global supply chain director of Asahi Shimbun (market capitalization of $500 billion) has shrewd eyes;
The chief technology officer of Deguo Xiaote (market capitalization of 300 billion US dollars) looked serious.

The three of them put down their coffee cups almost simultaneously, focusing their attention on Feng Guofu, waiting for his final statement.

"Cheng Ke, we can back down a bit!"

Feng Guofu's voice was slightly hoarse from the long negotiations, but every word he conveyed was clear and precise through the translation of his professional assistant beside him.

"We promise to supply glass covers and mobile phone body structural components for the consumer electronics sector only to 'Zhicheng Centralized Procurement,' and will no longer venture into other optical glass finished product markets!"

He specifically emphasized the two limiting categories: "Smart Orange Centralized Procurement" and "Consumer Electronics".

Changing the subject, Feng Guofu put forward the core conditions.

"However, in exchange, at least 60% of your three companies' future procurement of optical glass blanks must come from Orange Technology."

When the conditions set forth by Orange Family were presented, the three parties reacted differently.

President Kang Ning first frowned, then unconsciously tapped his fingertips twice on the smooth edge of the table.

His original strategy was to force Orange Science to completely abandon downstream processing.

Although the other party has ceded most of the finished product market, it has retained the huge potential of the "consumer electronics finishing" market.

It wasn't a complete concession, which left him feeling resentful.

Xu Xiaozi's supervisor quickly flipped through the cost-benefit analysis sheet in his hand, his brain working at lightning speed.

The data clearly shows that Orange Technology's FH series preforms outperform South Korea's Sanjing MX optical products by more than 30%, and thanks to Orange Technology's manufacturing advantages in China, the cost is 15% lower than that of domestic production in Japan.

By accepting 60% of the procurement, they can significantly reduce their own costs and utilize Orange Science's high-quality raw materials to hold their competitors by the throat.

This is a worthwhile deal no matter how you look at it.

The technical head of Xiaote is most concerned about technical barriers.

He carefully considered Feng Guofu's words and found that the other party did not show any intention of revealing the "core formula for rough billet and the smelting and die-casting process," which meant that Xiaote still could not replicate Chengke's rough billet technology.

However, as long as Orange Technology has the core technology, the cooperation remains controllable.

He nodded slightly, indicating preliminary approval, but added a crucial point.

“We accept this ratio, but the agreement must include a three-year exclusivity clause, during which Orange Technology cannot supply blanks to any optical company other than the three of us.”

Feng Guofu thought to himself, this is exactly the result I expected.

Orange Science's current weakness lies in the high-end processing stage.

Previously, Orange Technology attempted to produce SLR camera lens elements, but the yield rate was abysmal, not even reaching 30%.

Rather than going head-to-head with giants in areas where they are not good at and require huge investments, it is better to firmly grasp their absolute advantages—the core formula of FH series glass and exclusive melting and die-casting technology.

By securing over 60% of the raw material procurement orders from these three giants, one can effectively control the "lifeline" of the global high-end optical glass industry and occupy an indispensable link in the industrial chain.

He took a deep breath, stood up, reached across the large negotiating table, and solemnly shook hands with the three people in turn.

"Okay! We can accept three years of exclusivity!"

“However,” Feng Guofu’s tone hardened, “the quality inspection of the rough blanks provided by Chengke must be carried out in accordance with our established testing standards. If the payment is even slightly less, we have the right to immediately stop supplying goods!”

At the moment the agreement was written and signed, no one mentioned Korean Samsung MX Optics.

But everyone in the meeting room knew perfectly well that the first casualty of this four-party alliance was destined to be this world's fourth-largest optical glass giant.

At the original dining table, if Cheng Ke wanted to sit down to eat, someone would have to squeeze out of the table.

FH series optical glass blanks have a natural advantage of 40% flexural strength and a leading light transmittance of 12 percentage points.

With Orange Technology's more competitive pricing, once the three major giants shift their main procurement focus, Sanjing MX Optics' original market will collapse rapidly like an avalanche due to the price advantage of the three major giants.

Feng Guofu recalled the "domestic Shunyu Optics" mentioned by his assistant before the meeting and couldn't help but sigh softly.

He had considered supporting domestic counterparts, but the investigation results showed that this currently leading optical company in China had a core kiln scale for smelting rough billets that was even smaller than that of Orange Technology, and its overall production capacity and finishing level were far behind.

At this moment, we want to support our domestic competitors, but they are not as good as us, and Orange Technology is really powerless to help them!

"The banner of domestically produced optics cannot be carried by mere enthusiasm alone!"

Feng Guofu pondered to himself: Chengke must first establish itself in the global industry chain and have sufficient say and strength before it can turn around and drive the entire domestic optical industry chain forward.

The flashbulbs of the signing ceremony captured this historic moment.

The global optical glass industry landscape was quietly reshaped from that point on:
North American Unimin, with its 90% monopoly on high-purity quartz sand raw materials, firmly holds the dominant position at the source.

By partnering with three major companies (who together hold 83% of the global finished product market share) and securing 60% (approximately 49% globally) of their raw material procurement share, OrangeTech has become the "King of Optical Raw Materials".

Kang Ning continues to firmly control 58% of the global market for finished optical glass products.

This crucial link in the industrial chain, from top-grade raw materials to core blanks and then to finished products on the market, has been completely sealed off by this four-party agreement.

This has created a symbiotic relationship where the departure of one another would severely damage the other's strength and vitality.

Feng Guofu stroked the copy of the agreement in his hand, still warm from the ink, and suddenly felt that all the arguments, compromises, and painstaking efforts of the previous two days had been worthwhile.

Although Orange Technology did not achieve its initial ambition of "dominating the entire industry chain", it unexpectedly acquired something more valuable and strategically important than the entire industry chain.

The global optical giants have had to tacitly accept the "roughness monopoly".

The global optical glass landscape has already undergone a major reshuffle in the next three years.

With the high-quality and low-cost blanks provided by Orange Technology, the three giants can further expand the profit margin of finished products and squeeze the survival of other small and medium-sized optical enterprises more fiercely.
Orange Technology, on the other hand, only needs to maintain its rough blank production line, and it can rely on stable and large orders to continuously expand production, accumulate capital, and calmly and slowly hone its still immature fine processing technology.

Feng Guofu walked to the window, looking down at the flowing Jialin River and the undulating mountain scenery below, and finally a relieved yet confident smile appeared on his face.

This cooperation, which appears to be a "concession" on the surface, is actually the smartest and most pragmatic strategic choice for Orange Technology at this stage.

Before possessing the absolute strength to overturn the old order, we should first strive to become an "irreplaceable link" in the industry chain.

This is far more prudent and effective than blindly expanding and making enemies everywhere.

Reports that Orange Technology is poised to monopolize the global supply of optical glass blanks over the next three years have already attracted attention in professional financial media and manufacturing publications.
But for the general public, this news is far less appealing than celebrity gossip or social news.

However, the news reached the ears of the XXTV Annual Economic Figures Awards Ceremony judging committee precisely.

The reason is simple: this year, the higher authorities have clearly instructed that the theme of the ceremony be "The Mission of Industry," and the selection criteria will inevitably lean towards the leaders of the manufacturing industry who have worked diligently.

When the committee's experts were screening candidates, Chen Mo, the key figure behind Orange Technology, naturally came into their view.

Upon further investigation, it was discovered that this young founder of Orange Technology is also one of the 32 directors of the "China Entrepreneurs Club," making him a figure of considerable influence.

Therefore, Chen Mo's name was solemnly included in the list of candidates.

According to procedure, the award committee sent a letter to Shenzhen to inform them of the situation and request local assistance in communication to solicit the candidate's wishes.

Shenzhen's leaders had previously heard praise for this "tech upstart" from Zhang Weimin, the head of Longhua District, on several occasions.

Taking this opportunity, he decided to personally visit Orange Technology to investigate and meet this legendary young man.

Upon receiving instructions, District Chief Zhang Weimin immediately dispatched Li Bin, the director of the investment promotion office, to personally visit and make initial contact.

Takihwa, at the entrance of the Yuancheng New Energy Base Industrial Park.

Gong Yun, the logistics manager and recognized "second-in-command" of Orange Technology, personally greeted Director Li Bin at the park entrance.

"Director Li, what brings you here?" Gong Yun greeted him with a smile.

"President Gong, this is great news, a fantastic thing!"

Li Bin's face was full of smiles, and he lowered his voice.

"The leaders of Shenzhen plan to visit and inspect your Orange Company in person soon, and they specifically want to meet Mr. Chen, this young leading figure in the technology industry!"

Gong Yunxin understood and led Li Bin onto the commuter sightseeing bus in the park, heading towards the two modern, symmetrical Grade A office buildings—Yuancheng Building.

“Director Li, currently Orange Technology is temporarily operating from Building B of the Yuancheng Building. We will relocate entirely to Orange Town in Guanlan after the first phase of development is completed!” Gong Yun explained. Li Bin then asked, “I heard that a confidential factory for Orange Innovation was built in Orange Town first. What are the subsequent plans?”

Gong Yun thought for a moment and realized that this was not a core secret, so she told him frankly.

"Orange Town will be positioned as the global headquarters of Orange Technology in the future, mainly undertaking brand image display, strategic decision-making and core office functions, and will be more commercialized and open."

Upon hearing this, Li Bin's eyes lit up.

"That's great! That's great! From now on, the economic development of our Longhua will depend a lot on the help of your oranges!"

He mentioned it with a hint of envy in his words.

"Look, Tencent's global headquarters is in Nanshan District, and it brings in 400 billion yuan in tax revenue to Nanshan every year, making it the city's largest taxpayer."
Sigh, even Takikawa is envious!

But things are much better now. District Chief Zhang had the foresight to bring in your orange business, a true "hidden dragon," and the speed of its development over the past three years has been truly astonishing!

Director Li lowered his voice: "To be honest, based on our internal assessment, the future potential of Yuancheng New Energy alone may not be inferior to that of Tencent."

So, since you oranges are in Takikawa, you're our key protected individuals. If there's anything we need to coordinate, just let us know!

Upon arriving at Building B of Yuancheng, Li Bin curiously looked around the well-equipped convenience store, coffee shop, and various food stalls in the lobby, and couldn't help but exclaim, "President Gong, the management of your park is becoming more and more humane!"

Gong Yun lowered her eyes and smiled lightly: "Director Li, you flatter me. This is all President Chen's idea."

He felt that it was too time-consuming to run out of the park for a bite to eat during his lunch break or while working overtime, so he figured it was more convenient and efficient to just eat downstairs.

"President Chen is truly a man of character, and he knows how to care about his employees!" Li Bin praised with a smile.

Gong Yun smiled without saying a word and led him onto the high-speed elevator reserved for senior executives, which went straight to the 16th floor.

The elevator doors opened, and Gong Yun went straight to the workstation of Zhou Yumeng, the general manager's secretary, and asked in a low voice, "Is Mr. Chen available now? Director Li has arrived!"

Zhou Yumeng immediately dialed an internal number to ask for instructions, then stood up and politely led the two into Chen Mo's office.

After Li Bin explained his purpose to Chen Mo, Chen Mo pondered for a moment and then politely inquired.

"Director Li, I wonder if you've heard some rumors that the leader's visit this time is mainly for..."

Li Bin smiled and lowered his voice even further.

"Mr. Chen, to be honest, there are some rumors, but I can't say they're 100% accurate."

The leader's visit this time is likely related to the selection of XXTV's Economic Person of the Year.

As is customary, local authorities need to recommend candidates, and the committee then selects from among them.

The process involved...
It's said to be bottom-up, but in reality it's top-down!

He gave Chen Mo a knowing look.

Chen Mo immediately understood and nodded with a smile: "Understood, thank you for your guidance, Director Li. We will make careful preparations and do a good job in receiving the leaders. Please rest assured, leaders and District Chief Zhang!"

When the leaders came to inspect, the scene was quite grand.

Accompanied by Zhang Weimin, the district head of Longhua District, the Shenzhen municipal leaders, along with heads of relevant departments, were followed by a group of reporters from local official media outlets.

Chen Mo, along with Gong Yun and other core executives, personally greeted them at the park entrance.

The group visited Orange Technology's open-plan office area and futuristic R&D laboratory.

When they arrived at the special "Little Mimi's Home" rest area on the 15th floor, the leader was attracted by this whimsical space.

This is a corner specially designed for employees to relax and find mental comfort. The entire area adopts an exaggerated Q-version cartoon style with bright and lively colors.

The entrance is a low, arched doorway decorated with cat paw prints and fish bones, with a sign that reads "Manager Mi's Office" and next to it is a picture of a spirited golden lion cat.

Inside, there is a miniature "boss desk" and "CEO chair". On the desk are a miniature computer model, a ceramic cat paw cup (with a cat stick in it), and an orange fruit piece with "004-Xiao Mi" on it.

The cat tree "filing cabinet" by the wall is filled with cat toys and cushions, while the relaxation area features a thick, soft carpet, a beanbag sofa shaped like a cat bed, and facilities such as an automatic cat teaser.

Chen Mo picked up an exquisite "Golden Cat Stepping on Orange" doll and introduced it to his superior with a smile.

"Boss, this is our Orange Technology's mascot, named 'Xiao Mi'. Within the company, it's our fourth veteran, and everyone loves it!"

The leader looked slightly surprised, then laughed heartily: "I thought your orange mascot would definitely be a big orange! Interesting!"

Chen Mo handed the doll over.

"This little toy is for you, boss, as a keepsake. I hope you like it!"

The leader gladly accepted it and responded humorously.

"Mr. Chen, if you were to give me any other expensive gifts, I would not dare to accept them."

But I'll accept this mascot!

However, since I accepted your gift, I must reciprocate.

After a moment's thought, he made his decision on the spot.

"Here's what we've got. I heard that Orange Technology's tax breaks expire next year. The city will approve another spot for you as a key high-tech enterprise, and you'll get another two years of tax breaks!"

This is undoubtedly a pleasant surprise!

Chen Mo was surprised that the leaders' visit could bring such tangible policy benefits, and he quickly expressed his gratitude on behalf of the company.

He knew in his heart that the leaders probably thought that Orange Technology's main business was selling mobile phones and that its annual tax revenue was limited, so it wouldn't hurt to do them a favor.

But the leaders may not know that starting next year, Orange Technology will extract huge patent fees from its various "Orange Group" sister companies. The tax revenue at that time will be far more than "a few hundred million".

As for companies like Yuancheng, whose annual tax revenue is estimated to be in the tens of billions, the leaders naturally don't even mention them.

It's important to know that the district is still developing the Guanlan Industrial Park, and the city's investment funds are quite tight, so naturally they need to recoup some of their investment!
After visiting Orange Technology, the leaders were in high spirits and also visited the "Smart Orange Procurement" and "Orange Home Smart" exhibition centers on the same building, expressing great admiration for the ecological layout of the Orange Group.

"Mr. Chen is young and promising!"

This is a large undertaking, but the overall strategy is clear and very forward-thinking!
"If you encounter any difficulties in the development of your orange business in the future, and need coordination from the city or district, just come to Lao Zhang!"

District Chief Zhang immediately stepped forward and stated, "Please rest assured, leaders, oranges are a key business that we at Longhua are currently supporting, a pillar of our industrial transformation and upgrading. We will definitely provide excellent service and support!"

Chen Mo expressed his gratitude once again.

Subsequently, in the shared meeting room on the 10th floor, the leader had a brief private conversation with Chen Mo, formally conveying the invitation to be a candidate for the XXTV Annual Economic Figure Selection Committee, and inquiring about Chen Mo's personal wishes.

Chen Mo didn't really like being in the spotlight, and seemed somewhat hesitant.

The leader noticed his concerns and encouraged him with a smile, "Xiao Chen, don't feel pressured."

This is an honor, but also a responsibility.

If you are elected this time, the district can consider nominating you as a district representative so you can better offer suggestions for the district's economic development!

Chen Mo probably also knew the significance and weight of the identity of "district representative".

He hesitated for a moment, then stopped declining and solemnly expressed his opinion.

"Thank you for the trust of the leaders and the importance attached to it by the selection committee. I will definitely prepare carefully and participate in the selection event on time."

The leader nodded in satisfaction, looking at the young man in front of him who was still somewhat green but had already taken control of a vast business empire.

He unusually spoke in the tone of an elder, offering advice: "Xiao Chen, sometimes, 'fame' itself is a kind of 'power'."

Striving for a reputation that you deserve is not a bad thing; on the contrary, it can help you and your company gain more development resources and a stronger voice.

Giving up 'fame' is, to some extent, giving up some influence and power.

If you become a district representative in the future, you will be able to contribute more directly and effectively to the industrial development and economic transformation of Takihwa.

And the future we've planned for Takihwa needs the strong support of high-tech companies like Orange!

Chen Mo understood the deeper meaning and expectations in his leader's words and immediately reiterated his stance.

"Please rest assured, leaders. Orange Technology is rooted in Takihwa and is growing stronger. We will do our utmost to contribute our greatest strength to Takihwa's economic development and industrial upgrading!"

After the meeting, Chen Mo and the leader walked out of the conference room together.

The official media, who had been waiting for a long time, conducted a brief interview.

Finally, a group of executives and leaders from Orange Technology posed for a group photo in front of the Yuancheng Building.

This photo, symbolizing the unity and joint development of the government and enterprises, was subsequently featured on a prominent page of the Shenzhen Special Zone Daily, becoming the headline of Shenzhen's business news that day.

(End of this chapter)