Twenty years of cold chain

As the twelfth lunar month drew to a close, Hu Shutong realized that a financing deal could not be finalized before the Spring Festival. The valuation issue had been discussed four times already, with Hu Shutong holding firm on a price of 29 billion yuan. Although the other party mentioned increasing the price, they were reluctant to provide any additional funds.

Hu Shutong was prepared for this process. After all, this was an investment in a startup, and people are always more cautious about things they can't see. It's perfectly normal to spend a month or two on internal discussions. Besides, the leap from angel round to Series A is worth waiting for, no matter how long it takes.

Hu Shutong didn't want to return to Tongxing and remain silent, letting this matter repeatedly disturb people's emotions. It would be best to stay here, waiting for the next round of meetings, and ultimately return with a number, showing everyone how big a basket we could build, so that we could all move forward with high spirits.

Hu Shutong called Liu Zhiying, explaining company matters before and after the New Year, and also assigning him a special task: to travel to the west as soon as possible after the New Year. This trip wasn't to Longwei County or for Qiangyun, but to Wuguan City, the capital of Ganzhou, and other major cities. He also needed to gather market data from outside Ganzhou Province.

The western region is becoming a hotspot for cold chain logistics; its vast area offers unparalleled market potential. This isn't just Hu Shutong's personal insight; many in the industry have already begun to pay attention to this area.

Hu Shutong needed not only a macro-level understanding of the current situation but also detailed ideas and solutions, something only Liu Zhiying could handle. After receiving the assignment, Liu Zhiying didn't ask what the task was, but instead pondered what she should discover. Because many areas there couldn't yet be described as untapped potential, but rather as untapped territory awaiting development.

Yang Chenghai's side will be even more busy after the New Year. Hu Shutong's instructions can be summarized as "the first phase has officially started," which means that all the necessary suppliers are fully prepared and the distribution industry will be ready to go in a month!

Yang Chenghai liked this decisiveness very much. He didn't say a word about the funding. He just told him to focus on his strongest move and not to worry about anything else.

At that moment, Yang Chenghai sighed inwardly, his unspoken message being: "Proceed with our established maximum scale and highest standards." The final funding amount hadn't been announced yet, meaning that even if the funding wasn't ideal, Hu Shutong would find other ways to fill the funding gap.

Yang Chenghai, who has been on this path for over a decade, spent his once-glorious years either supporting others or acting as a guarantor. And now, he, Yang, has actually managed to build a life with powerful backers!

……

Tongxing Delivery's financing has gradually become a hot topic in the industry, with many insiders speculating about the final valuation of the company. If the valuation is 30 million, tens of millions of yuan in funding is just a small matter these days, but if it's 3 billion, then it will be a big deal in the industry.

The latter also implies room for cooperation. Essentially, everyone is working on the road infrastructure; no one can build their own "cold chain high-speed rail." Therefore, anyone in this large circle is a potential partner.

That day, Hu Shutong received an invitation from a familiar face: Hou Huan, a fellow alumnus of Mingda University and a representative of Kunyu Building Materials. Hou Huan spoke at length about Mingda University, mentioning that he had learned Hu Shutong was in Mingyuan City and hoped for a reunion of alumni, choosing a hotel not far from the university as the venue.

In the past two years, when Hu Shutong came to Mingyuan, he always deliberately avoided the Mingda University area. Whether it was the laboratory building or the teaching building, just seeing a little bit of it would fill his heart with anxiety. Even just glimpsing the stone carvings at the Mingda University gate would make him imagine waiting there nervously, talking to that busy old man on the way to the airport.

When they met, Hu Shutong didn't look very lively. Hou Huan knew perfectly well that Tongxing's financing was not going smoothly, which had dragged this person in front of him from before the New Year to after.

In Mingjiang, Hu Shutong's connections are no less than Qingning's, so he probably knows what they want to discuss. Not long ago, Hou Huan was promoted to General Manager of the "Greater Western Business Division" of Kunyu Building Materials, making him one of the most prominent vice presidents within the group.

Hu Shutong certainly didn't have a good impression of this person. At that time, he wanted to use the cement plant to drag Tongxing down with him, but when he saw that things were not going well, he shamelessly took the initiative to make peace.

However, it's enough to remember these things; there's no need to delve too deeply. Business is different from interpersonal relationships, and taking these things too seriously can affect one's judgment in other areas. The other party is probably in the same boat; if they truly held onto the past, they likely wouldn't even have the courage to pick up the phone and make a call.

Seeing that Hu Shutong was in low spirits, Hou Huan skipped the pleasantries and got straight to the point.

"Mr. Hu, to be honest, Kunyu's plan to build a factory in western China has been internally approved, and we want to make a name for ourselves in the cold chain building materials sector. We initially planned to invest 80 billion yuan to build four factories there, each covering multiple regions through their respective reach. Today, I'd like to discuss technical cooperation with you."

What Hu Shutong didn't know was that this whole thing was largely due to the "tips" he received back then. Kunyu was originally a major player in the conventional building materials industry, and it was precisely because of the feigned cooperation to ease tensions that he conceived the idea of ​​getting involved in the cold chain building materials industry.

Following the collaboration with Tongxing on air-cushioning at that time, Hou Huan conducted detailed research on polyurethane, polystyrene, and carbonized cork, and made a special report within the group on the air-barrier materials for walls such as cement mortar and hot asphalt used in cold storage construction.

Another point is that there are many giants vying for the western infrastructure market, resulting in intense competition. And when it comes to the specifics of cold chain infrastructure, with a company like Kunyu investing 80 billion yuan, achieving a high market share in the short term is even more foreseeable.

"Technical cooperation? What are Mr. Hou's thoughts?"

"Everyone in the industry knows that Tongxing R&D Center is very strong. In my plan, in addition to materials technology, there are also various technologies in the park. Only in this way can we expand the scale. In other words, Kunyu can build complete parks for various parts of western China, not just bricks and tiles."

Hu Shutong immediately recognized the ambitious nature of the idea. This was essentially becoming a supplier for various cold chain entities, undoubtedly a more profitable approach that would generate another 80 billion yuan in revenue. Given the current shortage of suppliers in western China, Kunyu's integrated development strategy, at the very least, would be a powerful selling point in rapidly establishing industrial parks.

"It seems Mr. Hou still hasn't said how the cooperation will proceed?"

"Kunyu wants to hire a technical team from Tongxing, of course..."

"That's impossible."

Hu Shutong rarely refused others so directly. What a joke! The R&D center sent him a team, and before he knew it, it had become Kunyu's R&D team. Such a request was simply rude. Hu Shutong wouldn't even listen to anything about compensation.

Seeing Hu Shutong's resolute stance, Hou Huan seemed to have anticipated this, harboring a well-thought-out plan. He then changed the subject, saying, "How about we establish a strategic partnership with Tongxing R&D Center? We can sign an annual contract, essentially making you our third-party technical team. Mr. Hu, please let us know the price. If Kunyu is satisfied, we can even pay for three years in one lump sum."

Hou Huan was well aware that Tongxing's financing had been delayed because of its overconfidence, while the reality was that the entire company was waiting for money. In his view, with the Lunar New Year approaching, Hu Shutong wasn't unwilling to go back, but rather afraid to. Kunyu's three-year payment plan, while not enough to cover major debts, would definitely be a substantial amount of extra income, which was why he chose to meet with Hu Shutong at this time.

Hu Shutong's expression was calm. From beginning to end, all he saw was a self-righteous condescension. On one hand, he wanted to make a fortune, and on the other hand, he wanted to wear the mask of a savior and give you money. Did he really think Hu Shutong was a first-timer in the cold chain business?

Hu Shutong dared not say much about large-scale infrastructure projects, but in the realm of cold chain infrastructure, don't think you're a senior figure. If you really follow his contract mechanism, Kunyu will have the final say on new technologies and products in the R&D center. Cast a cheap net and you can catch any fish—that's no different from the cement factory back then!

Just then, Hu Shutong's phone vibrated. He glanced at it and immediately picked it up, his face instantly filled with surprise.

"You're at the airport? Why didn't you tell me beforehand? Wait for me for half an hour, I'm leaving now!"

After hanging up the phone, Hu Shutong immediately appeared flustered. "I'm sorry, Mr. Hou, I have to go to the airport to pick someone up."

Hou Huan thought this approach was too naive, and shook his head with a smile, "Who would require you, Mr. Hu, to personally pick them up? If you're not satisfied, we can continue talking. Tongxing can also offer its own ideas. Isn't it just a matter of negotiating round by round?"

But then Hu Shutong stood up, leaning on the table with both hands, his sharp eyes looking down at Hou Huan. This expression startled Hou Huan, as if he had really said something wrong.

"I'm going to pick up my wife."

……

I've loved cold chain logistics for twenty years.