Tech startup: I really do make mobile phones!

Chapter 251 Orange Tree - Engel Tile

In the conference room of the Chengke Micro Motor Industrial Park in Chongqing, the atmosphere was heavy.

General Manager Feng Guofu looked at the financial statements, his brows furrowed, his fingers tapping on the table.

12 billion!

We owed the bank 12 billion yuan to expand those 14 Phoenix Glass smelting billet production lines!

The interest alone each month is a mountain!
The profits from mass-produced products barely cover operations and interest, and repaying the principal seems a long way off!
Ladies and gentlemen, we must find a new, highly profitable growth engine, and we must do it quickly!

Technical Director Zhou Mingzhe pushed up his glasses and said in a deep voice, "President Feng, although our current business is stable, market competition is fierce, and profit margins are being diluted."

While high-end customization offers high profit margins, the order volume is small and the lead time is long, making it a long-term solution that doesn't address immediate needs.

In the midst of the somber atmosphere, Liu Zhiyu, the director from Orange House who was seconded to support Phoenix Glass Applications, suddenly stood up, his eyes blazing.

"President Feng! Perhaps our breakthrough lies in this 'Phoenix Glass' we have!"

He strode to the projector and pulled up a research and development document.

"Everyone, please look!"

Based on our Phoenix Glass (FH-3.0) substrate, our laboratory has successfully developed a core material for LNG carriers (liquefied natural gas carriers)—Invar-Wall!

A murmur rippled through the conference room; most people were unaware of what was happening.

Liu Zhiyu began his "science popularization" with an enthusiastic voice.

LNG carriers, known as "super-refrigerated trucks at sea," transport liquefied natural gas at -163 degrees Celsius.

The inner wall of its core storage tank must be made of a special material called 'Invar steel', which must maintain a near-zero coefficient of thermal expansion at ultra-low temperatures.

Otherwise, any movement of the hull, due to thermal expansion and contraction, could cause it to crack, leading to a natural gas leak and resulting in the destruction of the ship and loss of life!

He switched to a PowerPoint presentation and showed the logo of a company – Faguo GYY Company.

"Globally, there is only one company that can produce this Inductor roofing sheet—GYY Company of Germany!"

They've monopolized this market for over forty years!

The technological barriers are so high it's almost unbelievable!
Every year, they can easily earn more than $5 million in profits from shipbuilders around the world with these small Inductor roofing sheets!
As for China, unable to overcome this technological hurdle, we still struggle to independently manufacture large LNG carriers. Netizens have dubbed it the "crown jewel of shipbuilding," a title we've yet to claim!

Liu Zhiyu paused, looked around the room, and said, word by word, "But today, we at Orange Science have done it!"

The next second, he released a comparison chart, showing a crushing difference between the red and blue bars.

GYY Inging Steel Tile vs. Chengke Phoenix Glass Inging Steel Tile

Performance parameters:

Temperature range
GYY: -196℃~300℃

Orange family: -200℃~2200℃

coefficient of thermal expansion
GYY: Near-zero inflation
Orange family: Lower temperature and has 'heat recovery' properties.

Mechanical strength
GYY: Mohs hardness 3-4

Orange family: Mohs hardness 8-9

Impact resistance

GYY: General

Orange family: Can withstand wind pressure impact of level 10.

Additional features

GYY: None
Orange family: 99% light transmittance, facilitating internal monitoring.

"Not only that!" Liu Zhiyu almost shouted, "According to tests, our Yingang steel roofing sheets can quickly stabilize their shape after being subjected to extreme low temperatures, thanks to the material's own 'thermal recovery' characteristics, making them far safer than GYY products!"

Moreover, based on the same Phoenix glass material, we can also develop high-performance heat-insulating tiles and refractory bricks that outperform traditional products!

The meeting room erupted in chaos!

Feng Guofu slammed his hand on the table, jumped up abruptly, and stared wide-eyed at Zhiyu: "Zhiyu! Are you sure? The data is correct!"

"Absolutely true! It has been repeatedly verified in the laboratory! Mr. Feng, this is our trump card to break GYY's monopoly on Yinggangwa and break through the encirclement!"

"Let's do it!" Feng Guofu exclaimed excitedly, his face flushed. "Yinggangwa, we must develop and produce it ourselves and take this piece of the pie!"

For heat-insulating tiles and refractory bricks, we immediately contacted our old friend, the 812 Institute of the Aerospace Group, for collaborative development. They provided the technology, and we focused on production!

Soon, Hudong Shipyard, which was struggling with the localization of LNG carriers, received a "special recommendation" from its superiors.

With a "nothing to lose" mentality, they sent a top-notch team of experts to Chengke in the mountain city.

At the start of the inspection, Mr. Li, the chief materials expert of Hudong, had a look of distrust on his face.

"President Feng, it's not that I don't trust you, we had already decided to cooperate with Baosteel."

"This is something that the German GYY has been working on for forty years, and we've been tackling it for over a decade with the entire nation's resources, yet we still haven't been able to make a complete breakthrough. And you, a company specializing in precision manufacturing..."

Li's implication was clear: he knew they were very capable in the precision field, even being a supplier for ASMI, but could Chengke please stop causing trouble?

Without wasting any words, Feng Guofu led the person directly to the laboratory.

The live demonstration begins.

Extreme cold test:

Liquid nitrogen (-196℃) was poured directly onto the Orange Ke Ying Steel Tile sample, and instantly white mist filled the air.

It was then quickly moved to room temperature, and the instrument showed that its shape changed very little and it recovered its flatness at a speed visible to the naked eye.

In contrast, the GYY sample showed subtle, irreversible deformation.

Extreme heat test:

After burning the sample surface with a high-temperature spray gun (above 1500℃) for one minute and removing it, the surface of the orange family sample only turned slightly red and the structure remained intact.

The GYY sample showed obvious signs of oxidation and softening.

Strength test:

Heavy hammer impact.

The orange sample remained unchanged, while the GYY sample showed a dent.

Li and his team went from being nonchalant at first, to being astonished, and finally practically pounced on the testing equipment, repeatedly checking the data.

"This...this is impossible!" Engineer Li's voice trembled. "This thermal stability...this strength...this recovery performance, Mr. Feng, how did you all manage to do this! This isn't just surpassing, this is a generational leap! This is utterly crushing!"

Feng Guofu stood with his hands behind his back and smiled calmly: "A tiny innovation, not worth mentioning!"

Afterwards, they visited other production lines at Orange Technology and saw the precisely operating gyroscopes, the micromotors with millisecond-level response, and the nanoscale alignment systems used in lithography machines and machine tools. The experts from Hudong were completely convinced.

"I'm convinced! I, Old Li, am truly convinced today!" Engineer Li gripped Feng Guofu's hand tightly: "President Feng, Chengke is unfathomable! It is undoubtedly the backbone of precision manufacturing in China!"

After inspecting and initially approving the Hudong Shipyard, Feng Guofu knew that to truly break into the global market that had been monopolized by the developed country's GYY for forty years, the approval of domestic shipyards alone was far from enough.

Orange Science needs a more internationally credible institution to "endorse" it.

"Contact German TÜV Rheinland and Det Norske Veritas (DVN)!"

Feng Guofu made a decisive decision: "Please ask them to conduct the most rigorous and comprehensive third-party certification for our Orange Science & Technology's Yingang Tile!"

Fees are not an issue; what we need is an indisputable international third-party data report!

Two months later, two thick certification reports bearing the seals of authoritative institutions were placed on Feng Guofu's desk.

The report's conclusions are clear and impactful.

German TUV Rheinland:

"Sample of Phoenix Glass-Based Invar Tile Provided by Orange Science"
In extreme high and low temperature cycling tests (-269℃ to 1500℃), long-term corrosion resistance tests, fatigue resistance tests, and impact tests.

The stability, reliability, and safety demonstrated comprehensively surpass the highest existing industry standards (i.e., the national GYY enterprise standard)” - DVN (Det Norske Veritas):
"This material has been confirmed to be suitable for critical components of the membrane-type storage tanks of the MARK III type LNG carrier. Its unique 'thermal recovery' properties and near-zero coefficient of expansion provide revolutionary redundancy for LNG transportation safety."

With these two "imperial swords" in hand, Feng Guofu's confidence increased significantly.

Just then, one of the world’s most influential maritime exhibitions, the Hamburg International Maritime Exhibition (MSM) in Germany, is about to open.

However, reality soon threw a bucket of cold water on the situation.

Hu Dong's LNG carriers are still in the design phase, and the number of orders he can place is pitifully small, which is far from enough for Chengke.

At the Hamburg trade fair, GYY's booth remained in the core area, showcasing their "legendary" Invar steel, attracting numerous shipowners and shipbuilding representatives.

Orange Science's booth was small and located in a relatively remote area.

However, Zhou Mingzhe, who was in charge of leading the team, had the conclusions of the two authoritative certification reports made into a huge display board in eye-catching Chinese and English and placed at the forefront.

Meanwhile, high-definition videos were played on a loop showing how Inductor roofing tiles remained intact after being subjected to extreme cold from liquid nitrogen and intense heat from a spray gun, as well as a heavy hammer impact test.

At first, people just stopped to watch out of curiosity.

The atmosphere changed instantly after several technical leaders from top global shipowners carefully read the certification report and watched the demonstration.

"My God, is this data real? It's several levels better than GYY's!"

"Look at that heat recovery! It's practically magic!"

"If the report is true, it means that our ship maintenance costs and insurance premiums could decrease significantly!"

The news spread like a virus within the exhibition hall.

GYY's booth quickly went from being bustling with visitors to being deserted, with everyone flocking to the inconspicuous corner of Orange Technology.

GYY's president couldn't sit still any longer and led his technical team to the Orange Technology booth in a menacing manner, attempting to raise questions.

"Mr. Zhou, your data is truly astonishing."

However, new materials require extensive practical verification, and GYY boasts a forty-year safety record—something that laboratory data cannot match!

The other person spoke arrogantly, with a hint of barely perceptible panic.

Zhou Mingzhe was prepared. He picked up the microphone, and his voice was amplified throughout the area, attracting more onlookers.

"Gentlemen, we respect GYY's contributions over the past forty years."

But technology is advancing!
Just as the internal combustion engine replaced the steam engine, digital technology will replace film!
Orange-coated steel roofing sheets are not simply an improvement on GYY products, but a generational revolution based on a completely new material system!

He pointed to the big screen: "The comprehensive certifications from TÜV Rheinland and DVN Novatek are the most powerful proof!"
We are willing to assume full legal responsibility for the performance of our products!
Security isn't based on seniority, but on solid technology and data that can withstand scrutiny from any third party!

Feng Guofu's words, combined with the authoritative report and the shocking video, formed a decisive blow.

The president of GYY, his face ashen, left in a disheveled state amidst the stares and whispers of the crowd.

In this battle, Orange Steel Tile made a decisive move on the international stage, gaining widespread fame!

The MSM Hamburg International Maritime Exhibition in Germany went smoothly and received a lot of praise, but there are no LNG shipyards or ship owners in Timo willing to be the first to try it!
Yamashiro Orange Family.

"Damn it, I have the skills to slay dragons, but no dragon comes to kill me?" Feng Guofu was so anxious that blisters appeared on his lips. Even the good-tempered veteran cadre of the state-owned enterprise couldn't help but swear.

We must not sit still and wait for death!
Feng Guofu immediately activated Plan B, and through Yuancheng's connections, contacted the head of South Korea's Sanjing ADI (Sanjing Battery), with his target being Sanjing Heavy Industry—one of the world's LNG shipbuilding giants.

At the negotiating table, President Kim, the representative of Sanjing, was extremely shocked by the performance data of Orange Ke Ying Steel Tile, but his businessman nature was revealed.

"Mr. Feng, the product is excellent."

But our Sanjing MX Optics has recently been getting thrashed by Xiaote, Xuxiaozi, and Kangning. We've heard their secret weapon is glass blanks supplied by your Orange Technology?"

Feng Guofu understood the situation, but his face showed a genuine sense of unease.

"President Kim, we have a three-year exclusivity agreement, so there's nothing we can do to help!"

President Kim then changed the subject: "So, what about the supply of high-precision gyroscopes and top-of-the-line micromotors?"

After consulting with Chen Mo, Feng Guofu replied, "Micromotors are negotiable! Gyroscopes are out of the question!"

After some back and forth, the two sides finally reached an agreement.

Orange Technology exports specific models of low-latency micromotors to Sanjing Heavy Industry, while Sanjing Heavy Industry purchases Inductor roofing sheets from Orange Technology.

However, Sanjing Heavy Industry had its own plans. It cunningly purchased 10% of the Orange Core Steel Roofing in advance to negotiate a lower price with the German GYY.

The trial report stunned the top management of Sanjing.

Chengke Ying Steel Tile not only surpasses other products in all aspects of performance, but also significantly reduces the manufacturing cost per ship after use, directly increasing the profit margin by 2 percentage points!

Capital switched sides instantly!

Sanjing Heavy Industry immediately increased Orange Technology's order share to 30% and plans to continue expanding.

Well-informed companies like Jiandai Heavy Industry and Dayu Shipbuilding acted swiftly upon hearing the news, approaching Chengke.

For the first time, GYY, the monopolistic giant that had enjoyed a comfortable life for forty years, felt the chill.

They tried to retain customers through technological barriers and long-term partnerships, but these proved ineffective in the face of OrangeTech's solid performance and competitive pricing.

In a panic, GYY resorted to its last resort—a global price war!
They tried to use their accumulated profits to cripple this challenger from the East.

"They want to wage a price war against us?" Upon receiving the news, Feng Guofu laughed instead of getting angry: "We've been waiting for this day! They think we're naive, but they don't know how big our cost advantage is!"

He directly ordered: "Pass the word down, Yingang Tile's global price quotes will be reduced by another 40% on top of GYY's price cut! Show them what it means to crush them with costs!"

boom!
This heavy blow was like a bolt from the blue, completely stunning GYY!
After the price reduction, OrangeTech's price is only 60% of GYY's original price, and OrangeTech even has a profit margin!

The president of GYY was furious at the headquarters in Balai: "Madmen! These Chinese people are madmen! How could they possibly make a profit at this price! Investigate! Investigate their cost structure!"

The investigation results left him in despair:

Orange Science's core material comes from its self-developed Phoenix Glass, whose melting and self-assembly process has ridiculously low costs! Coupled with the advantages of the flower planting industry chain and economies of scale, GYY's traditional process is simply no match for it.

In just a few months, GYY's global market share shrank dramatically, its stock price plummeted, and it was on the verge of collapse.

Just as GYY was about to go bankrupt and be liquidated, at the Ninth Asia-Europe Summit, the President of Malaysia had to humble himself and subtly mention the "difficulties faced by GYY" and expressed his hope that the "principle of fair competition" would be upheld.

After the meeting's directives were issued, Feng Guofu received a phone call from above.

After hanging up the phone, he clicked his tongue and said to Zhou Mingzhe, "Well, the higher-ups have spoken. We need to 'cooperate for mutual benefit.' Watch your manners."

We'll revert to the original price and position ourselves as a high-end brand.

Allow GYY to set up a factory in China, give them a chance to make a living, and position them in the mid-range market.

Although it was a bit of a pity that he couldn't defeat his opponent in one fell swoop, Feng Guofu understood that this was already a huge victory.

From now on, OrangeTech will call the shots in the global Invar steel tile market!

Ultimately, the market landscape has settled.

Orange Technology holds 60% of the global high-end market share, with annual revenue estimated at approximately US$3 million (RMB 20 billion). GYY's surrender resulted in a loss of half its market share, barely managing to retain 40% of the mid-range market, but it must transfer most of its production capacity to China.

Looking at the final financial forecast for the year, Feng Guofu breathed a long sigh of relief; the huge weight that had been pressing on his heart for more than half a year had finally been lifted.

This revenue of 20 billion is enough to pay off the 12 billion loan that was making him a little anxious!

Not long after, at an internal meeting, the leader highly praised Chengke's breakthrough in steel roofing.

The leaders of the mountain city understood immediately, and a considerable subsidy for high-tech industries was quickly allocated.

"Hehe!" Feng Guofu rubbed his chin and laughed at Zhou Mingzhe and Liu Zhiyu, "It seems that we've chosen the right path of 'specialization, refinement, and innovation'!"
Is the market for Inco steel roofing too small?

It's okay, little by little, we'll make a fortune!
Our next target is to continue searching for those 'small' markets that are monopolized by foreign companies, highly profitable, and where we have a technological advantage, and then conquer them one by one!

The small knife of Orange Science has been unsheathed, its sharp edge gleaming coldly, pointing straight to a wider world.

I'll take a little from you today, and a little from you tomorrow. Little by little, I'll accumulate small victories into a big one!
Few people may know that the initial tempering and honing of the future global precision manufacturing giant, Orange Technology, began with the deep cultivation and dominance of a series of inconspicuous, niche, high-precision markets.

(End of this chapter)