Entertainment mogul: Starting his business with the internet

Chapter 429 Difficulty
On October 12, with all matters in Donghai concluded, Song Ci and Liu Shishi set off to return to Beiping.

Early in the morning, the Gulfstream G650 landed smoothly on the private tarmac at Beijing Capital International Airport.

The cabin door opened, and Liu Shishi, arm in arm with her husband, slowly walked towards the gangway.

"Yi-yi, are you going straight to the company?"

"Ah."

Liu Shishi smiled, her eyes crinkling, "I'll give you a surprise when you get home from get off work."

"it is good."

The couple chatted casually as they arrived at the airport exit, where they each got into their cars and drove away.

Inside the Tengda headquarters office, Song Ci was intently reviewing documents.

Across from him, Secretary Jian Ning asked softly, "Chairman Song, will you be going to Dewen Office in the next few days?"

Song Ci didn't even raise his head, his pen continuing to flow: "Is there something important about the document?"

"Su Lan just called and said that President Wang wants to report on the Devon headquarters building matter and asked when would be a convenient time for you?"

"I don't plan to go to Dewen these next few days. Let Mr. Wang come to Tengda instead."

Jian Ning replied, "Okay, I'll inform Su Lan right away and ask President Wang to come over."

About an hour later, Wang Fengying, having received the notification, brought Song Xueying and Su Lan to the Tengda Technology Building.

In the lobby on the first floor, Wang Fengying couldn't help but look around.

Although she had been working alongside Song Ci in the startup process, this was her first time joining Tengda Group.

The interior of this world-renowned global headquarters of an internet giant is magnificent and grand, yet brimming with a sense of technology.

It made her yearn for it, wondering when Devon Manufacturing would also have such a landmark headquarters building?

"President Wang, President Song, the director is in his office. Please come with me." Jian Ning, who had been waiting in the lobby, stepped forward and led the three of them straight to the elevator.

The numbers on the monitor kept changing as the elevator slowly ascended.

Jian Ning then introduced, "This technology building has 39 floors above ground, and Chairman Song has his office on the top floor."

Upon reaching the 30th floor, the heavy metal door opened, and a middle-aged man walked in. He paused slightly when he saw Song Xueying: "Secretary Song!"

Song Xueying smiled and replied, "President Chen, it's been a long time."

"Jian Ning, who are these two?"

"President Chen, this is President Wang Fengying of Devon Manufacturing Company, and Su Lan, another secretary of Chairman Song."

Jian Ning stepped aside to introduce, "President Wang, President Chen is the Chief Financial Officer of Tengda Group."

"Hello, Mr. Wang." Chen An dared not be negligent.

The company's senior management is well aware that Chairman Song Ci's second entrepreneurial venture at the beginning of the year, Dewen Manufacturing, is a cutting-edge manufacturing enterprise with prospects no less promising than Tengda in its heyday.

Wang Fengying's role at Dewen is comparable to Zhang Yong's role at Tengda.

"Mr. Chen, you're too kind," Wang Fengying replied modestly.

The disparity in strength between Dewen and Tengda is vast, and the person before him, as Tengda's CFO, holds a position far above his own.

After exchanging pleasantries, the elevator arrived at the top floor.

Chen An was the first to walk to the access control area. After facial recognition was successful, the heavy glass sliding door opened automatically.

"Thank you, Mr. Chen." Jian Ning gave a simple thank you and led the three of them into Song Ci's office.

Chen An stood in the corridor, gazing thoughtfully at the backs of the group.

The chairman's company, Devon Manufacturing, has already begun to show its strength by stockpiling rare minerals globally. Its future potential may be no less than that of Huawei. If Tenda can make a strategic investment, it will definitely be of great benefit to the group's development.

Meanwhile, Wang Fengying had already begun reporting to Song Ci: "Chairman Song, the land granted to Dewen by the municipal government has been approved."

Upon hearing this, Song Ci closed her pen and asked with concern, "Oh? Which piece of land was approved?"

Su Lan immediately took out a map of Beiping City from her bag and laid it flat on her office desk.

Wang Fengying pointed to the area marked with a red circle in the picture and introduced: "It's in the Northwest Wangbei Road area, about 2.8 kilometers away from Tengda Technology Building."

"Not bad." Song Ci nodded in satisfaction. This distance made it convenient for him to travel between Dewen and Tengda, saving him a lot of travel time. "How much is the land cost?"

"The area is approximately 12 square meters, and the total land price is 6 million yuan."

Song Ci nodded: "Land prices in first-tier cities are still rising. If it's a good deal, let's buy it."

The sooner Devon's headquarters are completed, the stronger the employees' sense of belonging to the company will be. Having a decent headquarters building is also a reflection of the company's strength.

When the big boss agreed to buy the land and build the building, Wang Fengying was overjoyed and quickly took out a stack of blueprints, all of which were 3D renderings designed by major well-known architectural design institutes for the Devon headquarters.

"Chairman Song, these are the designs we selected after comprehensively considering the architectural design highlights, spatial function planning, and investment costs. Please take a look."

He flipped through the Song Ci books with great interest, and one set of designs with a strong sense of three-dimensional technology particularly pleased him.

Song Xueying leaned closer and explained at the opportune moment: "Chairman Song, this 'Sky City' was designed by Foster + Partners in the UK."

The entire structure adopts a suspended steel structure system, with the main body constructed using 5.5 tons of steel, and consists of "primary load-bearing components and secondary load-bearing components."

The more Song Ci read, the more she liked it, praising it repeatedly: "As expected of Foster + Partners, the firm that designed world-famous landmarks such as Apple headquarters and the HSBC Building in Hong Kong, their technological innovation and aesthetic breakthroughs are truly unique."

Seeing that the big boss was interested in the plan, Song Xueying explained in detail: "The building consists of two towers, east and west. The west tower is 193 meters tall with 43 floors, and the east tower is 211 meters tall with 47 floors."

Six externally mounted glass-facade containers, supported by cantilevered giant trusses, create a visual effect of "stacked containers," achieving both a sense of lightness and industrial aesthetics.

Song Ci chuckled: "It's really nice, it looks even more impressive than the Tengda Technology Building."

"Please look here," Song Xueying added, pointing to the blueprint.

"Because it is a suspended structure, the number of internal columns is greatly reduced, which can create an open office area surrounded by a 270-degree panoramic glass curtain wall, improving spatial flexibility and natural lighting."

Considering the company's drone business, the east and west towers are connected by a glass walkway, which facilitates access and serves as an entrance for drone test flights. A specially designed skylight at the top also allows for drone test flights.

After a moment's thought, Song Ci realized that the headquarters building was crucial to Dewen's global image, and in terms of overall effect, "Sky City" was indeed the most suitable for him.

But buying land and building a building requires careful cost calculation: "Approximately how much would it cost to build the building using this design?"

Wang Fengying replied, "The preliminary estimate is around 15 billion, and it will not exceed 16 billion."

"The total cost is about 3 million US dollars." Song Ci calculated it in his mind. This cost was within his acceptable range. He immediately made a decisive decision without hesitation, "Use this plan. Start construction on the building as soon as possible." Wang Fengying was overjoyed when she heard this. Her heart, which had been hanging in suspense, finally settled down.

"Sit down, I have something to ask you." Song Ci said, since Wang Fengying had come, he naturally wanted to inquire about Dewen's matter.

Wang Fengying and Song Xueying sat down at the desk, while Jian Ning and Su Lan quietly left the office and gently closed the door.

Song Ci clasped his hands together, leaned back in his executive chair, and looked directly at his two subordinates: "Any progress on photovoltaic energy storage and new materials?"

Devon Manufacturing's core business is mainly divided into six segments: electric vehicles, rockets, drones, photovoltaic energy storage, new materials, and supply chain companies.

Among them, the electric vehicle sector was the earliest to be developed, the first model is under development, and the Jinling factory has also started construction. It can proceed step by step.

His mother was there to help oversee rocket development, so he didn't need to put in much effort; and he also achieved results in drones and the supply chain.

The only remaining areas are photovoltaic energy storage and new materials. Although the two business units report their progress every week, and Song Ci goes down to check on things whenever he has time, there has been no progress.

Although technological research and development cannot be accomplished overnight, more than half a year has passed since the establishment of Dewen Manufacturing. With a large amount of money invested, it should be able to see some results.

Upon hearing this, Wang Fengying's expression suddenly became serious.

Devon Manufacturing has one president and three vice presidents. Tang Jun is in charge of drones, rockets and supply chain.

Yang Bowen is in charge of digital infrastructure, patent pool and strategic investment; Song Xueying is in charge of finance, human resources, legal affairs and other logistical support.

The remaining areas—electric vehicles, photovoltaic energy storage, and new materials—are precisely the businesses she, as president, is directly responsible for.

Wang Fengying paused briefly, seemingly organizing her thoughts: "Let me first report to you on the new materials. Considering the characteristics of Dewen's business, we are currently focusing on three core tracks."

Firstly, in conjunction with electric vehicle manufacturing, we focus on power battery materials, such as high-nickel ternary cathodes, silicon-carbon anodes, as well as lightweight materials such as carbon fiber composites and new aluminum alloys.

Secondly, we are collaborating with Beihang University on the research and development of high-temperature resistant carbon ceramic composite materials and radiation-resistant satellite protective coatings suitable for rockets and satellites.

In addition, there are photovoltaic materials such as transparent conductive films.

New materials are one of the seven strategic industries in the national "12th Five-Year Plan," and the company has applied for a special subsidy for "National Large-Scale Integrated Circuit Manufacturing Technology" (02 Project).

"The approach is correct." Song Ci has never opposed leveraging policy benefits. Applying for special projects is itself a way to strengthen government-enterprise collaboration.

Seeing the chairman's approval, Wang Fengying continued: "In addition, I am preparing to join forces with CATL to lead the formulation of the 'Lithium-ion Battery Material Specification for Electric Vehicles' and take the lead in the standard setting."

Upon hearing this, Song Ci couldn't help but praise, "Excellent, top-notch companies set the standard."

"General Manager Yang's strategic investment center is also taking active steps to acquire the carbon fiber patents from Oak Ridge Laboratories in the United States and the carbon fiber business unit of Toray Industries in Japan."

Wang Fengying glanced at Song Ci and cautiously probed, "But whether it's acquiring key technologies or developing materials, it all takes time, and we may not see results for a year or two."

Seeing Wang Fengying's tense expression, Song Ci reassured her, "I didn't mean to urge you to produce results immediately, but the company must ensure that the direction is correct."

In your report, Dewen's development strategy in new materials was perfectly sound; the key now is to ensure effective execution.

Wang Fengying breathed a sigh of relief: "Don't worry, I've always been very strict with the management below, and the execution is absolutely guaranteed."

Song Ci neither agreed nor disagreed with Wang Fengying's strict management approach. Currently, Dewen Manufacturing is thriving, with cost control and other aspects performing very well.

He felt that meticulous management was not his forte, and he would not interfere with Wang Fengying's exercise of the CEO's daily management authority until Dewen encountered problems.

"Let's talk about photovoltaic energy storage."

Wang Fengying's expression changed, and her face immediately became gloomy: "President Song, the entire photovoltaic energy storage industry is currently in a predicament, which can only be described as 'beset by internal and external troubles'."

Song Ci was taken aback. He knew that the current period was a window of opportunity for the iteration of photovoltaic energy storage technology, and various problems would inevitably be encountered in the process of development. However, judging from Wang Fengying's tone, the situation seemed to be much worse than he had imagined.

"I am grateful for your trust in appointing me as the president of Devon. I have been too embarrassed to tell you the details before, but the photovoltaic energy storage business is really struggling. Today I can only tell you my troubles."

Song Ci looked displeased: "President Wang, this is not right. We must be realistic in our work. How can we only report good news and not bad news? Don't be afraid to tell me what difficulties you encounter. Come on, lay out the problems one by one."

Wang Fengying took a deep breath and said in a deep voice: "In 2011, seven US photovoltaic companies filed a complaint with the Ministry of Commerce, accusing my country's photovoltaic products of dumping and receiving government subsidies, and demanding high tariffs. Subsequently, the EU also launched a similar investigation."

This year, the United States preliminarily ruled to impose anti-dumping duties of 31.14% to 249.96% and countervailing duties of 14.78% to 15.91% on Chinese photovoltaic companies.

"A tariff as high as 249%!" Wang Fengying's voice suddenly rose, her tone full of excitement, "This directly means that the products cannot be exported to the European and American markets at all."

With products sluggish in the domestic market, companies are forced into a vicious cycle of "low-price competition" in order to survive.

What's worse is that many core technologies and equipment rely on foreign countries.

Currently, polysilicon purification mainly relies on the Siemens process in Germany, and high-end string bonding machines and PECVD equipment can only be purchased from Germany and the United States.

After listening to Wang Fengying's detailed introduction to the entire photovoltaic energy storage industry, Song Ci felt a headache coming on.

With overcapacity, anti-dumping and countervailing duties imposed by Europe and the United States, and technology still restricted by overseas countries, it's no wonder she described the situation as "beset by internal and external troubles" and "extremely difficult."

"Let me think about it." Song Ci lowered her head in thought, beginning to draw upon the memories deep within her mind. Her precognitive advantage was evident at this moment. "Write this down."

Wang Fengying quickly took out her notebook, the pen tip hovering over the page, ready to take notes at any moment.

Song Ci spoke eloquently: "The problem of overcapacity is not a major concern for the time being. The key to breaking the deadlock is still technology!"
First, it is crucial to develop cold hydrogenation technology to replace the Siemens process, and at the same time, acquire domestic photovoltaic equipment manufacturing companies to achieve the localization of core equipment as soon as possible. These two points are of paramount importance.

Secondly, it's the same old approach: pursue a differentiated technological path, target the high-end market, and avoid homogeneous competition. That's what I asked Tang Jun that day, and the same applies to drone development.

I don't understand photovoltaic technology. Shouldn't the company's professional engineers know which technologies belong to the high-end market?

While writing furiously, Wang Feng responded without hesitation: "Thin-film plus crystalline silicon multilayer technology, combined with building-integrated photovoltaics, is the high-end market direction in the industry."

"You should discuss the specific technical approach with the experts. Regarding anti-dumping and countervailing duties, you could consider establishing an overseas presence."

Build module factories in Malaysia and Vietnam, or acquire small and medium-sized photovoltaic companies in the EU to establish distribution channels directly in those regions. In short, take it one step at a time, and proceed steadily.

"clear."

Song Ci gave a few more instructions, which Wang Fengying noted down. Just as she was about to take her leave with Song Xueying, she remembered something and stopped.

Seeing that his subordinate hesitated to speak, Song Ci took the initiative to ask, "Is there anything else?"

"Um, Chairman Song! Could you also set up a supercomputer for Dewen?" Wang Fengying asked somewhat embarrassedly.

Purchasing a single supercomputer costs at least several billion dollars, and with the daily maintenance costs, the expenses are truly staggering.

Dewen is currently in dire need of rebuilding and relies entirely on the big boss for financial support, a request she finds somewhat difficult to make.

However, supercomputers are extremely important to the company. They are needed for trolley circuit simulation and drone flight simulation, so she had no choice but to bite the bullet and ask for help.

"Buy, buy, buy!" Song Ci waved his hand. He had already invested nearly 50 billion US dollars in Devon Manufacturing, so spending an extra two or three hundred million US dollars was nothing.

(End of this chapter)