Rebirth: My dad is too obedient

Chapter 566 Make them disgusted
Thursday, the 31st of the month.

Early in the morning, Xu Chen arrived at the small office on the 8th floor.

Chenfeng Technology has an important meeting to attend, and Xu Zhiquan specifically instructed Xu Chen in advance to connect by phone today.

The meeting covered topics such as next year's financial and strategic planning, which were indeed very important.

At 10:00 a.m. sharp, Xu Chen joined the conference call.

Opposite them are the current main management team: Xu Zhiquan, Liu Qilin, Teacher Fang Jun, Yang Congxin, Guo Liang, and Hua Shaojie.

Since we were all on the same side, there was no small talk or pleasantries; we got straight to the point.

Fang Jun's team first roughly synchronized the financial review of last year, excluding "Chenxin Nursery" and the two Shanghai companies, and mainly focused on the part of "Chenfeng Technology".

Xu Chen could barely understand much of the content involving various tables and data, even though it was over the phone.

Fortunately, "Little Xu" mainly listened to the meeting from the sidelines and did not need to get involved too much.

As Fang Jun reviewed the financial situation, Xu Chen still managed to glean some key summary information from the pile of data and technical jargon.

Overall, Chenfeng Technology is still operating with debt.

However, after electric vehicle sales picked up last year, the company has achieved positive cash flow and no longer needs "Chenxin Nursery" to provide financial support.

Currently, some of the term loans from banks and other institutions will mature this year, but new loans will come in, allowing for a healthy rollover of debt.

The company has sufficient cash reserves, which, combined with the existing cash reserves and rolling sales revenue, can steadily support the development and promotion of new products next year.

However, if the acquisition of "Shenmiao" is to proceed, a new financing plan needs to be considered...

The next topic of discussion revolved around the acquisition of "Shenbiao".

This topic was discussed for more than half an hour. Xu Chen listened silently and roughly understood that it was "inevitable".

I had heard Xu Zhiquan analyze before that what Lao Xu was interested in was the two production bases of "Shenbiao" around Jinshi, which were real hard assets.

If we succeed, the production capacity of "Chenfeng Electric Vehicles" can be significantly increased.

The overall scale of the company will surpass that of "Aibang" to become the number one electric vehicle manufacturer in the north and one of the top three in the country.

Xu Zhiquan had already reported this matter to Wu Yongming and the city, and Wu Yongming supported it.

However, the previous conditions remain unchanged: the headquarters of "Chenfeng Technology" must remain in Tiancheng to support local economic development and employment.

In addition, Dr. Liu also supports the acquisition of "Shenbiao".

What Liu Qilin actually valued was a battery patent held by "Shenbiao".

According to Dr. Liu, "Shenbiao" has created a moat in the battery field with a technology patent, which is actually a differentiated advantage.

However, the motors and electronic controls of "Shenbiao" are so poorly made that the overall product quality and user experience have never been able to meet expectations.

Currently, most electric bicycles in China use lead-acid batteries, including those purchased by "Chenfeng Bing Power".

Lead-acid batteries are inexpensive, but have short battery life and short operating time.

In northern winters, battery range becomes a particularly prominent issue, which is one of the main reasons why electric vehicle sales decline in the autumn and winter seasons.

Shenbiao holds a leading domestic lithium battery technology patent, which it acquired from someone else years ago.

Compared to mainstream lead-acid batteries, "Shenbiao's" lithium batteries have a significant advantage in terms of range and lifespan.

According to Dr. Liu, "If Shenbiao had made the motors and electronic controls a little better, the products wouldn't have sold so poorly."

If Chenfeng Technology can acquire Shenbiao, then the lithium battery patent and the manufacturer behind it will naturally fall into Chenfeng's system.

This will have a significant impact on the subsequent upgrades and replacements of the "Chenfeng Electric Vehicle".

In addition, the idea of ​​“making new energy batteries to lay out the future electric vehicle industry in advance” that Xu Chen and Dr. Liu discussed earlier can also be used as a starting point through Shenbiao’s lithium battery technology.

So after all the discussions, it became clear that taking down "Shenbiao" was a matter of course.

Old Xu values ​​the two production bases, and Dr. Liu values ​​his family's battery patents; both are extremely valuable.

The only issue is cost-effectiveness; it depends on how the acquisition deal is negotiated and what conditions are set.

While everyone was chatting excitedly, Professor Fang Jun was somewhat troubled and finally couldn't help but pour some cold water on their enthusiasm:
“The price they’re offering now isn’t cheap. If you really want to secure the deal, the financing plan will be under a lot of pressure.”

Xu Zhiquan chuckled and said that they should put the matter aside for now and "we should study how to raise funds" and so on.

The implication was that "God of Wealth" Fang Jun should figure out a solution first...

The next topic is equally important: the planning and layout of "Chenfeng Electric Vehicle" entering the southern market after the Spring Festival.

This part was mainly shared by Guo Liang and Hua Shaojie.

Guo Liang first gave a general overview of the electric vehicle industry landscape in the southern market.

Overall, the electric bicycle market in the south is much larger than that in the north, meaning there's a bigger "cake" and "more money to be made."

Still influenced by the climate, the southern market does not have the problem of reduced battery life in winter, so electric bicycles are easier to promote throughout the south.

Currently, the two largest electric vehicle companies in southern China are "Yajie Electric Vehicle" and "Suyi Electric Vehicle".

These two companies are currently the two largest in China.

The two companies are roughly the same size, and their monthly electric vehicle sales are very close.

Among them, "Yajie Electric Vehicle" from Zhejiang Province has a deep connection with "Chenfeng Electric Vehicle".

The first electric vehicle production line that "Chenfeng Technology" introduced came from "Yajie".

However, what "Yajie" sold to "Chenfeng" at that time was an outdated production line that was already partially phased out within their company.

At the time, Xu Zhiquan also talked to Xu Chen, saying that "Yajie" did not think that Lao Xu could make the electric vehicle factory successful.

They were willing to sell the production line to "Chenfeng" simply because they felt they had found a sucker and wanted to rip them off.

Therefore, when Xu Zhiquan took Yang Congxin on a business trip to the headquarters of Yajie in Zhejiang Province, he deliberately pretended to be a "nouveau riche".

Old Xu deliberately acted as if he knew nothing, adopting the demeanor of a "farmer" who made money by growing seedlings. He deliberately spoke in an arrogant and unreliable manner, which made "Yajie" lower its guard.

At the same time, Wu Yongming also went on a business trip and discussed some cross-provincial technical support cooperation with the local authorities. In order to improve relations with the government, "Yajie" finally sold a semi-obsolete production line.

In just over a year, "Chenfeng Electric Vehicle" rose to prominence in the northern market, and even later introduced a more advanced production line from "Yamaha" in Japan.

If Yajie knew all this, it would surely be astonished.

Now that Chenfeng Electric Vehicles is heading south to compete with Yajie for market share, they must be regretting their decision...

In Guo Liang's preliminary research materials, both "Yajie" and "Suyi" had already set their sights on "Chenfeng Technology".

They are also wary of "Chenfeng Electric Vehicles" moving south to seize market share.

Of course, both companies still have strong defensive barriers. After years of cultivating the southern market, their distribution channels are completely exclusive.

Like cars, electric bicycles still have a strong regional attribute.

When buying a car, people generally prefer to buy it locally, as it makes maintenance and after-sales service more convenient later on.

No one would travel to another city just to buy and go through the hassle of buying an electric bicycle.

Therefore, Chenfeng Electric Vehicles' strategy for penetrating the southern market hinges on its ability to distribute its products through dealerships. Chenfeng Technology's solution remains the same: partnering with Datuo Auto Sales.

Jiang Huaqin had been entrenched in the north for many years and had long been planning to launch a "southward campaign".

Before starting "Da Tuo Auto Dealership", he was a car dealership, and he happened to have connections and distribution resources in the south.

"Da Tuo Auto" and "Chen Feng Technology" hit it off immediately and were already preparing to expand their auto dealership network to the south.

Xu Zhiquan added specifically:

"Jiang Huaqin has already started working on it. He still has some very important connections in the south. The layout of car dealerships in Zhejiang and Jiangsu provinces will be completed before the end of the year, and they can be opened after the new year."

He's been waiting for our next-generation 'Morning Breeze Ice Power'!

Jiang Huaqin and I looked at the products of 'Yajie' and 'Suyi'. At present, 'Chenfeng Bingdongli' has no great advantage in order to grab the market except by engaging in price wars.

The current models can be used to establish sales channels, but to truly capture market share from 'Accord' and 'Swift,' more competitive new products are needed.

Dr. Liu coolly said:
"Don't worry too much about that, I'm here."

……

……

Early February, close to the Spring Festival.

Dongchen Advertising and Ranbing Sports have each designed New Year gift boxes, which they plan to mail to their external partner companies.

The "Burning Ice Sports" gift box contains an exquisite office fitness set, including resistance bands, small dumbbells, hand grips, timers, and two limited-edition "Burning Ice Sports" autumn/winter sweatshirts.

It will be mailed to partners including Taobao, Wanrong Materials, Lifeng, and some important media outlets...

The New Year gift box from "Dongchen Advertising" is a set of exquisite Ru kiln teaware, as well as two boxes of tea, one red and one green.

Dongchen Advertising delivers to all of its clients, including Vanke, Jeep, Red Star, Baidu, Procter & Gamble, Cadillac, and many others.

When Gu Xinxin and Pan Mengting were arranging to mail the gift boxes, they specifically asked Mr. Xu:
"Should we still send Jiaduobao and Kunlunshan?"

Xu Chen was stunned for a moment, thinking that this was indeed a bit awkward.

Nie Fei happened to be passing by and said:
"Gong Ming has been fired by 'Jiaduobao' and a suitable replacement has not yet been found."

In August, they announced the termination of their cooperation with Xie Bingran, and the resulting public opinion had a significant impact on the performance of 'Kunlun Mountain' and the entire 'Jiaduobao' Group.

Originally, 'Kunlun Mountain' was supposed to carry the revenue for 'Jiaduobao', but now it's even more difficult.

So Gong Ming ended up taking the blame...

Xu Chen grinned mischievously and turned to Gu Xinxin, saying:

"Please send both 'Jiaduobao' and 'Kunlunshan' as gifts."

Does the 'Burning Ice' gift box include a poster of Bing Ge (Brother Bing)? Then send a 'Burning Ice' gift box along with it.

Gu Xinxin exclaimed, "Why?"

Xu Chen: "Let's disgust them!"

Gu Xinxin and Pan Mengting looked at each other and burst out laughing.

……

In the past two days, Xu Chen participated in two conference calls with Chenfeng Technology.

The matters discussed recently were all very important, so Xu Zhiquan had Xu Chen answer the phone for them all at once.

The acquisition of "Shenmiao Electric Vehicles" is currently progressing steadily.

Xu Zhiquan and Fang Jun have already begun conducting due diligence on Shenbiao Company and are continuing to communicate and negotiate with them.

In addition, the State-owned Assets Supervision and Administration Commission of Beijing is among the shareholders of "Shenbiao".

Therefore, Xu Zhiquan, through Jiang Huaqin and Meng Huiyang of "Hongxing Winery", is also trying to open up communication channels with them.

Although the State-owned Assets Supervision and Administration Commission of Beijing holds a small number of shares, they still wield considerable influence in acquisitions.

If objections arise from this side, all efforts could be in vain.

On the other hand, there is the financing pressure on Mr. Fang Jun's side. To acquire "Shenbiao", the amount of funds needed, especially cash, is still quite a pressure.

Just before the Chinese New Year, Xu Zhiquan and Fang Jun were also trying to build relationships with the leaders of several major banks in Tiancheng and the provincial capital.

Of course, the relationship between banks and enterprises is one of "building relationships with each other".

In fact, banks and other financial institutions are eager to lend money out, especially to reputable companies like "Chenfeng".

However, the review process is still very strict. Chenfeng Technology and several banking institutions are actually trying to find a way to resolve the issue.

In addition, we are also working on entering the southern market after the Lunar New Year.

Guo Liang obtained the models of his main competitors, "Yajie" and "Suyi," for research.

After disassembling the vehicle, Dr. Liu pointed out a technical problem with the "Speedwing" electric car.

The batteries and motors of the "Speedwing" meet national standards, but the coupling of the batteries and motors poses a high risk of leakage or even fire.

Of course, from the perspective of national standards and laws and regulations, there is nothing wrong with it.

However, from a technical standpoint, it is indeed a very real problem.

Guo Liang tracked down the channels and indeed found a lot of related after-sales feedback.

So Guo Liang's team discussed it and decided to launch a "public relations campaign".

The goal was to expose and attack the technical shortcomings of the "Speedwing" vehicle, directly pointing out its risks of electrical leakage and fire, and exaggerating these risks to a certain extent to cause panic among consumers.

Then, they took the opportunity to promote the safety of "Morning Breeze Ice Power"...

This can be considered a marketing tactic that has attracted attention and generated buzz among consumers in the south.

Xu Chen was still pondering the risks and feasibility of this matter when Xu Zhiquan rejected it outright.

“We won’t do that kind of thing. ‘Chenfeng Technology’ will still compete fairly and squarely.”

Dr. Liu only said that they have this risk, but it still meets national standards.

Furthermore, we've just entered the southern market, so it's not wise to make enemies right away, especially since they're not a small company.

In business, it is ultimately the honest and ethical companies that survive.

We need to focus on long-term, stable development and avoid engaging in underhanded tactics that damage our reputation within the industry…

Listening to his father's words on the other end of the phone, Xu Chen couldn't help but feel deep respect for his own father.

……

……

(End of this chapter)