Return to 88: Starting from Marrying My Sister-in-law

The door to the president's office on the top floor of the Century Tower closed silently, shutting out Wei Shulei's figure as he swiftly deployed the flash memory technology search mission.

Lu Yang was left alone in the empty office, with the vibrant skyline of Shenzhen visible outside the window. His thoughts were completely occupied by that small, silver-gray box, the MP3 player.

Wei Shu's efficiency is beyond question.

Lu Yang knew that it wouldn't be long before detailed reports about domestic flash memory technology companies were on his desk.

What he needs to do is make the final, strategic decision.

Just as he was about to get up and leave, the office door was gently pushed open a crack, and Wei Shu returned.

She held the doorknob with one hand, her body turned to the side, clearly having suddenly remembered a crucial question. She turned to look at Lu Yang, her eyes sharp and pragmatic:
"Boss, since you are so certain that MP3 will become a disruptive and huge trend, and that the core lies in flash memory technology and upstream control, then," she paused slightly, speaking clearly, "which company within the group do you plan to entrust with the production and brand operation of MP3 players?"

She had clearly given this considerable thought, and before Lu Yang could ask any questions, she directly listed the options and her preliminary analysis:
"Currently, the two companies within the group that are best suited for this business are Little Prodigy and Little Genius."

"They all originated from the Famicom (Nintendo Entertainment System), transitioned to VCDs, and are now making desktop computers. They have deep experience and established systems in the design, manufacturing, and distribution of consumer electronics products."

“For small digital products like MP3 players, aside from the core technology of flash memory, the mold making of the casing, the design and manufacturing of the PCB motherboard, the procurement of electronic components, the assembly line, and even the marketing and promotion are all things that they are very familiar with and can quickly undertake.”

Wei Shu met Lu Yang's gaze frankly and stated her inclination: "In my personal opinion, I prefer to hand it over to Little Prodigy Company."

Her reasons were very practical.

"The biggest advantage is its geographical location."

"The production and R&D base of Little Prodigy is located in Shenzhen! It's just a stone's throw from our group headquarters. In case of any emergencies, technical collaborations, or management coordination, I or relevant department personnel can intervene and handle them immediately with extremely high efficiency."

"On the other hand, Xiaotiancai Company's factory is located in a third-tier city in the mainland. Although it has trained a lot of skilled workers through cooperation with local technical schools in recent years, it still lags behind Shenzhen in terms of engineering team, response speed of key material supply chain, and management interoperability. Traveling back and forth also consumes a lot of time costs."

She emphasized her point, highlighting the core concern: "Boss, if this MP3 product really does ignite the market and create a phenomenal craze in a very short time, as you predict, then efficiency is our lifeline!"

Production ramp-up, rapid iteration, and responding to unexpected market situations... all of these require extremely high responsiveness.

“I am worried that if we entrust the project to Little Genius in the mainland, its inherent geographical limitations and slow response will become a bottleneck that prevents this potential product from becoming a huge success, and we will waste the valuable market opportunity.”

Wei Shu's analysis was clear, logical, and to the point, and was entirely based on maximizing operational efficiency and seizing market opportunities.

She did not favor businesses from her hometown just because Baoqing City was also her hometown.

She waited quietly for Lu Yang's decision.

Lu Yang did not respond immediately.

He leaned back in his high-backed chair, his fingers unconsciously tapping lightly on the smooth mahogany desk, producing a low, even "tap, tap" sound. A brief silence fell over the office, broken only by the faint hum of the air conditioner.

His gaze was deep, clearly indicating that he was considering deeper questions beyond the two options Wei Shu had proposed.

The "little genius" and "little prodigy" are indeed "children" he personally created and incorporated into the Century Group's portfolio.

However, the two are fundamentally different in terms of equity structure.

Little Genius is a wholly-owned subsidiary of Century Group!

He is the most loyal of the loyalists, the undisputed "favorite son".

The group's will can be directly implemented, and all profits, intellectual property rights, and strategic collaborations are firmly in the group's hands.

The child prodigy, however, is completely different.

It is no longer the "private property" of the Century Group.

After undergoing multiple rounds of financing, especially after successfully listing on Nasdaq, its equity structure has become highly diversified and internationalized.

Currently, the total shares of Little Prodigy held by Century Group and Lu Yang personally amount to less than 35%.

Although Lu Yang, as the founder and largest single shareholder, still wields considerable influence on the board of directors, and founding shareholders such as Xiao Jun and Lao Mou are likely to support him, this is still far from "absolute control."

The list of shareholders of the child prodigy also includes several well-known overseas investment institutions, whose primary interests are stock price and financial returns.

“Why give good ideas to this ‘adopted son’ instead of his own son…” Lu Yang’s mind raced. “Is this reasonable? Besides, a large portion of the money the ‘adopted son’ earns goes to those overseas institutional shareholders…”

The thought pricked him like a needle.

"No, that won't do." Lu Yang slowly shook his head, his fingers that were tapping the table stopping.

He looked at Wei Shu, his gaze now clear and firm, directly rejecting her suggestion and breaking free from the two-option framework she had presented.

“Your analysis makes sense; Pengcheng’s geographical advantages are indeed significant. However,” Lu Yang’s voice was steady and powerful, carrying an undeniable determination, “the little prodigy is not suitable, and the little genius… is not suitable either.”

A hint of surprise flashed in Wei Shu's eyes, but she did not interrupt, instead listening more attentively.

Lu Yang stood up, walked to the huge floor-to-ceiling window, and looked down at the bustling city below, as if overlooking the new battlefield he was about to set up:

"What we are doing with the MP3 project is not simply product manufacturing and sales."

"It is a key vehicle for our strategy to enter the digital consumer electronics market and control core components (flash memory)!"

"It bears the heavy responsibility of creating the next super cash flow, and it is also related to our position in the future digital industry chain!"

If things don't change in the future, the next step up from MP3 players will be smartphones.

He turned around, his eyes blazing: "This kind of project must be firmly in our own hands! The equity structure must be clear, simple, and efficient! We need absolute autonomy and control! We cannot be subject to the interests of external shareholders, not even strategic allies! We cannot allow core technologies and core profits to be easily taken away by outsiders!"

He clearly outlined a completely new path: "Therefore, my decision is to establish a brand new subsidiary, 100% controlled by Century Group! I will personally or through Century Investment make the first round of investment to ensure pure equity. Then, using this new company as the main entity, we will complete the acquisition of the target flash memory technology company, just like the one we are about to find." Lu Yang's thinking was extremely coherent: "After the acquisition, we will digest the technology and integrate the team. At the same time, we will immediately select a site in Pengcheng and build a brand new modern factory! It will be specifically responsible for the research and development and production of MP3 players and related digital products in the future. In this way, we will have the geographical advantage of Pengcheng, as well as absolute control and profit-making capabilities!"

Wei Shu listened quietly, the surprise in her eyes gradually fading, replaced by deep contemplation and agreement.

She immediately understood Lu Yang's strategic intentions: this was not just about making a product, but about building a completely independent and controllable new business group, vertically integrated from core technology (flash memory) to terminal products (MP3)! This required complete control!
"I understand, boss." Wei Shu nodded quickly, a look of understanding on his face.

"This plan is indeed superior. Although the initial investment is larger, it takes longer, requires building our own factory, and the organizational structure is more complex, it completely solves the core hidden dangers of dispersed equity and external constraints, ensuring the purity of strategic execution and the maximization of future profits."

"Moreover, the new factory in Pengcheng can also guarantee the efficiency you emphasized."

She admired Lu Yang's foresight.

"It's settled then."

Lu Yang made the final decision, stating clearly: "You should start the new company registration, site selection, and team building simultaneously. The core task is the search for and acquisition negotiations of the flash memory company, which has the highest priority!"

"Yes! I'll take care of it right away!" Wei Shu didn't hesitate any longer and turned to leave decisively.

The engines of Century Group, this commercial behemoth, roared once again, heading straight for the new blue ocean of flash memory technology and digital music.

Wei Shu's iron fist and Century Group's vast resource network began to operate at high speed.

The objective is extremely clear: to find domestic flash memory technology companies with core technological potential that are suitable for acquisition.

The selection criteria are stringent: solid technical foundation, core patents or unique processes, promising team, moderate size for easy integration, and relatively clear equity structure.

Less than a week had passed.

A simply bound but weighty investigation report, along with several company files, was carefully placed by Lu Nini on Lu Yang's large desk, and also presented to Wei Shu.

Lu Yang picked up the top document and quickly scanned the cover. When he saw the words "Langke Technology," his eyes narrowed sharply, as if a falcon had locked onto its prey.

Turn the pages, and the core information leaps off the page:
Company Name: Netac Technology Co., Ltd.
Established in May 1999.

Core business: Focusing on memory chip design and related product development.

Main business: Design, production (contract manufacturing) and sales of MASK ROM (Read-Only Mask Memory).

Technical highlights:
The core team members have R&D backgrounds in well-known overseas semiconductor companies, giving them a high starting point in technology.

In the field of MASK ROM, its optimized storage cell structure and yield control technology are relatively advanced in China, with some indicators approaching those of second-tier international manufacturers.

Several domestic invention patents related to memory design and process optimization have been applied for.

Initial attempts to extend to NOR Flash (another type of non-volatile memory) technology, though not yet mature, have shown potential for technological expansion.

status quo:

It is a small company with fewer than 100 employees, focusing on research and development and sales, while production mainly relies on external foundries.

The products are mainly supplied to some low-end electronic products in China, such as firmware for learning machines, fonts for feature phones, and industrial control equipment. The market share is limited but stable.

Established recently, the company has not yet achieved profitability and is in the technology investment phase. It faces tight cash flow and urgently needs external funding to support research and development and market expansion.

Equity structure: The founders and core team hold 100% of the shares, with a clean equity structure and no complicated historical issues.

Lu Yang's fingers lightly brushed over the keywords "MASK ROM" and "domestic leading level," and a confident smile appeared on his lips.

“MASK ROM…isn’t that a USB flash drive?” he muttered to himself.

Although this is not the ideal flash memory type for MP3 players, which require erasable and rewritable flash memory such as NAND Flash, the core technologies—semiconductor memory design, manufacturing process, and yield control—are the same!

The technical expertise and innovative capabilities demonstrated by the Netac team are exactly the foundation he urgently needs!
Acquiring it is like obtaining a key to unlock the door to flash memory technology. It can be used as a springboard to quickly enter the NAND Flash field and provide core power for the upcoming MP3 and the broader digital storage needs of the future.

"That's it!" Lu Yang pulled out Langke's file separately and placed it heavily in front of Wei Shu. His tone was decisive and brooked no argument. "Pass the word down: lock down Langke! No matter the cost, use all resources to buy this company as quickly and safely as possible! The acquiring entity must at least have absolute control of it. I want it to become a new subsidiary of our group!"

Upon hearing Lu Yang's resolute and unquestionable acquisition order, Lu Nini perked up and immediately replied, "Understood, brother! I'll go and organize all of Langke's information and file it right away, and notify the M&A department and the legal department to initiate the preliminary contact process and formulate a preliminary plan as soon as possible!"

She picked up the Langke document that Lu Yang had singled out, turned around, and was about to leave the office to convey this important instruction concerning the group's future core strategy.

"Wait!" Lu Yang's voice rang out again, stopping Lu Nini who had already reached the door.

Lu Nini paused, turned around immediately, and looked at him with a questioning expression.

Lu Yang didn't look at her immediately. His fingers tapped unconsciously on the table, his eyes focused on a point in the void. Clearly, the decision about Langke had triggered a deeper strategic chain in his mind.

He looked at Lu Nini, speaking slightly quickly: "Nini, go to the president's office now and inform President Wei about the Langke matter, making it a top priority A+ project that she will personally oversee. Then,"

Lu Yang paused, a shrewd glint in his eyes, "While you're at it, call President Wei over too. Tell her I have something important to discuss with her in person right away."

“Okay, brother, I’ll go right away.” Although Lu Nini was curious about what new matter was more urgent than acquiring the flash memory technology company, her professionalism made her no hesitation. She nodded immediately and walked out quickly.

A brief silence returned to the office.

Lu Yang leaned back in his chair, picked up the slightly cooled teacup, took a sip, and his thoughts raced.

That tiny MP3 player was not just a revolution in hardware technology; it unlocked a whole new music consumption ecosystem!
Flash memory chips have solved the core pain points of storage and portability, but the soul attached to them, music itself, is the key to driving users to buy, use, and become addicted!

“Copyright…song copyright…online streaming copyright.” Lu Yang muttered to himself, like a treasure hunter who had discovered a new continent. (End of Chapter)