Reborn since 1993

Chapter 1037: Injure enemies and lose of your own

"Even dogs wouldn't do the orders given by Nihonben by phone or telegram!"

At Hanxi New Materials, a company that supplies mobile phone cases for Xiaolingtong mobile phones, Hanxi New Materials' general manager Cao Xueming cursed at a group of Hanxi New Materials' executives.

Dongling Hi-Tech had leaked the news about the new agreement with Nippon Benzene Telephone and Telegraph Company. After knowing the quotation of parts given by Nippon Benzene Telephone and Telegraph Company, Cao Xueming knew that Nippon Benzene Telephone and Telegraph Company did not regard them, the suppliers, as human beings at all!

If Hanxi New Materials were to sign the new Xiaolingtong parts supply agreement, its profit would drop by more than half, or even by 60% to 70%, compared to before, which is equivalent to working for the other party for free.

Even if this did not happen, Hanxi New Materials would still stand on the side of Dongling Hi-Tech, not to mention that both sides are local companies in Hanxi and are in the same camp.

Just talking about Hanxi New Materials, it was able to complete the transformation thanks to the support of Dongling Hi-Tech. Now Hanxi New Materials has become the largest mobile phone case manufacturer, the largest computer case manufacturer, the largest radio case manufacturer, and the largest electronic dictionary case manufacturer in China!

In addition to these, orders from Dongling Hi-Tech's subsidiaries, such as the product casings of Tengying copiers, the Feiyan MP3 casings that are about to be mass-produced, future Chitu electric bicycle casing orders, automobile casing orders, etc., may all fall into the hands of Hanxi New Materials.

Last year, Hanxi New Materials achieved a record annual revenue of 3 billion yuan. It can be said that Hanxi New Materials is a "standard" Dongling High-tech company.

Last year, Hanxi New Materials also obtained an interest-free loan from Dongling Hi-Tech. It can be said that the entire Hanxi New Materials has climbed up step by step following Dongling Hi-Tech. Cao Xueming would never do such a thing as betraying his own company.

And what can the Japanese benzene telephone and telegraph bring to Hanxi New Materials?
Yes, without the Xiaolingtong orders, Hanxi New Materials will experience some pain, and its performance this year may drop by 20% to 30%.

But from another perspective, of the remaining 70% of orders for Hanxi New Materials, at least 50% are directly related to Dongling Hi-Tech. If they really switch sides just for the Xiaolingtong orders, wouldn't that be like throwing away the watermelon to pick up sesame seeds?
There are also some reasons that cannot be stated directly. Since last year, Dongling Hi-Tech has increased its control over component manufacturers such as Hanxi New Materials.

Except for signing an exclusive supply agreement, that is, if Dongling Hi-Tech does not allow the shell products in Hanxi New Materials to be sold to other manufacturers, then Hanxi New Materials can only supply Dongling Hi-Tech.

In addition, Dongling Hi-Tech also invested in Hanxi New Materials and acquired approximately 20% of the equity of Hanxi New Materials.

Not only Hanxi New Materials, but also BYD and Dongling Hi-Tech have invested in it.

This is not taking advantage of anything, nor is there any forced sale. You have to know how many companies are rushing to give equity to Dongling Hi-Tech just to become a Dongling Hi-Tech company.

Once Dongling Hi-Tech acquires shares in the company, it will be able to obtain the endorsement of Dongling Hi-Tech. This is not just a false reputation, but something that can be truly "cashed in".

If you take it to the bank and have the endorsement of Dongling Hi-Tech, you can borrow a fairly large amount of cash.

With the endorsement of Dongling Hi-Tech, becoming a manufacturer in Dongling Hi-Tech's parts industry chain represents its position in the industry.

Referring to the "Apple chain" concept stocks in the previous life, if you can become an Apple supplier, you will instantly soar to the sky and become a leader in the industry. Countless brand manufacturers in the same industry will look for this company to supply goods, under the euphemism of providing the same configuration as Apple computers.

Now the same effect is happening to Dongling Hi-Tech companies. With the endorsement of Dongling Hi-Tech, they will be considered to have the best components in the industry, and a large number of companies will come to them to place orders.

These are the things that can be seen on the surface, but there are many more invisible things that attract more manufacturers.

That means going public!
As long as it becomes a Dongling Hi-Tech company and can obtain large orders, its performance will grow by leaps and bounds. It may even become a pillar company in its location within a few years, and the probability of successful application for listing will be greatly increased.

Originally, the probability of listing on the A-share market was high, but now that Dongling Hi-Tech has acquired Peregrine, it has opened up channels for Hong Kong stocks, and the chances of listing on the Hong Kong stock market have greatly increased.

The benefits that Dongling Hi-Tech's identity as a subsidiary can bring to Hanxi New Materials are far greater than joining Nippon Benzene Telephone and Telegraph Company. So how should Hanxi New Materials make the decision?

"But without the PHS orders, I'm afraid our performance this year will be very bad."

The management of Hanxi New Materials has no objection to Cao Xueming's decision to stand together with Dongling Hi-Tech.

However, some executives of Hanxi New Materials still feel worried.

Cao Xueming glanced at the executive who asked the question. It was obvious that this was an executive of Hanxi New Materials who had some grievances with Cao Xueming. Cao Xueming's word was final in Hanxi New Materials now, but that did not mean that he had no opponents.

“Aventurine is about to launch new products. I believe in Aventurine!”

Hearing Cao Xueming's words, which were obviously full of subjective will and almost stated clearly that he believed Dongling Hi-Tech could produce a product comparable to Xiaolingtong, the executive was speechless for a moment.

He really wanted to ask, can a national-level product like the Xiaolingtong mobile phone be developed casually?
But he couldn't say such words. At Hanxi New Materials, he could scold Cao Xueming, but anyone who dared to say that they would terminate cooperation with Dongling Hi-Tech would be beaten up by everyone.

...After Dongling Hi-Tech and Nippon Benzene Telephone and Telegraph Company issued their announcements, among the 21 companies that expressed their positions, in addition to component suppliers such as Jinyang Electronics and Hanxi New Materials, the statements made by Dongling Hi-Tech dealers represented by Hanhai also attracted attention.

Logically speaking, these dealers do not need to express their opinions. In this matter, the dealers just need to keep quiet and make a fortune in silence. Both Dongling Hi-Tech and Nippon Benzene Telephone and Telegraph Company need dealers to sell goods.

However, as the largest electronics distributor in Guangdong Province, Hanhai Trading Company, which has counters all over the province, was the first to announce its support for Dongling Hi-Tech.

Even Chen Zuhan, the boss of Hanhai Trading, announced that Hanhai Electronics would no longer be an agent for the sales of Xiaolingtong mobile phones and transferred all the Xiaolingtong stocks at a fair price, as if he was ready to fight for Dongling Hi-Tech.

This behavior shocked countless people. They didn't know why Fatty Chen, who was always known for his shrewdness, was so "impulsive" this time.

"What do they know?"

"I can't bear to let the child trap the wolf!"

Chen Zuhan was in his own company, giving orders to several senior executives of Hanhai Trading.

"Without Xiaolingtong, Dongling Hi-Tech will definitely be able to come up with a better machine!"

Chen Zuhan is extremely confident in Dongling Hi-Tech, even more confident than Dongling Hi-Tech itself.

The supervisors of Hanhai Trading, especially several young supervisors who were just recruited this year, are still somewhat unclear about the history of Hanhai Trading. They don’t know why their boss would make such a judgment.

Chen Zuhan noticed the expressions of these supervisors, but he had no intention of explaining.

Chen Zuhan was able to transform from a small electronics distributor in Guangzhou to the largest electronics agent and distributor in Guangdong Province. Every shopping mall, electronics city, and electronics retail store in Guangdong Province has Hanhai distributors and counters. He knows how he got to this point!

Especially back then, the decision to bet all his fortune on electronic pet machines was the decision Chen Zuhan boasted about the most at the dinner table.

Since joining Dongling Hi-Tech and becoming the agent for Dongling Hi-Tech's products, Chen Zuhan has never been defeated. If this still cannot make Chen Zuhan believe in Dongling Hi-Tech, what else can he believe in?
To be frank, if Chen Zuhan was really asked to choose between believing his wife or trusting Dongling Hi-Tech, Chen Zuhan felt that if he hesitated for a second and did not choose the latter, it would be disrespectful to the nine-digit number starting with seven in his bank account.

Chen Zuhan didn't know when Dongling Hi-Tech would release new products, but based on his understanding of Dongling Hi-Tech over the years, he felt that now that Dongling Hi-Tech had a falling out with Nippon Benzene, it was probably not too late.

Only by clearing out the inventory of Xiaolingtong can we recover more funds and purchase new products from Dongling Hi-Tech!

"Sell all the PHS products you have as soon as possible. Hanhai Trading will no longer sell PHS products in the future. Bring back all the funds.

In addition, contact distributors in Jiaozhi, Siam, Malaysia and other places. Next, Hanhai Trade will try to enter the overseas market!" Fatty Chen explained to his men.

There is never a shortage of cunning people and gamblers in this world.

There are many Xiaolingtong dealers who made the same decision as Chen Zuhan. Between continuing to follow Dongling Hi-Tech or being the agent of Xiaolingtong, many electronic agents who were originally scalpers quickly made their decision.

Then, the scene that appeared in the eyes of countless people in the country was that the domestic mobile phone industry "changed" almost overnight.

Among the 45 suppliers of Xiaolingtong parts, except for overseas suppliers such as 3M, no statement was made. Several small domestic suppliers remained silent, and some were reluctant to give up Xiaolingtong orders.

The other 37 Dongling Hi-Tech parts suppliers all stood up and announced that they would stop supplying to Nippon Benzene Telephone and Telegraph Company.

What is even more shocking to countless people is that Dongling Hi-Tech's domestic agents, from Yanjing to Shanghai, and then from Guangdong Province, Hanxi and other places, announced that they would no longer be agents for the sales of Xiaolingtong mobile phones.

No one had expected such a scene. They thought that this time at least, Dongling Hi-Tech and Nippon Telephone and Telegraph Company would be evenly matched rivals.

Even according to many people's estimates, Nippon Telephone and Telegraph Company should be able to control Dongling Hi-Tech.

The result was shocking. Both suppliers and agents rushed to offer "Zhongcheng" to Dongling Hi-Tech!
This result led to the direct discontinuation of the production capacity of Xiaolingtong mobile phones, and even the Xiaolingtong mobile phones on the market began to disappear.

It seems that the Xiaolingtong, which has dominated the domestic mobile phone sales charts in the past few years, is now suddenly about to "disappear".

This made a number of PHS mobile phone manufacturers including UTStarcom, BBK, Bird, Amoi, Panda, Eastcom, and Southern High-Tech a little bit unbelievable. Is the industry leader gone just like that?
No, how can a mobile phone brand be so brave as to kill itself?

(End of this chapter)