Those Years When I Was Forced to Top the Forbes List

Chapter 363 Events Before the New Year, Departure

A week before the Lunar New Year, Mr. Chen arrived in Shenzhen.

I found myself caught in a busyness that felt both strange and familiar.

He played different roles in the development of different subsidiaries.

At Long March Capital, he is a fund manager.

At Gu'an Construction, he was in public relations.

At Singularity Technology, he is a product experience officer.

No matter which company he joined, he always had his own assigned tasks, and the nature of the work was completely different.

—The work at Qidian is the hardest, like that of a pornography reviewer.

Qidian presented him with the latest software achievements one by one. There was a lot of knowledge to learn about the principles behind the system and mobile phone iterations, and a lot of opinions to put forward. After discussion, each department quickly made improvements, and then he had to see them again.

There are still a bunch of market decisions to review.

In Sichuan, he shuttled between government departments at all levels, completing a task in just a few days or even ten days.

In the few days since he arrived in Shenzhen, he hasn't been able to go anywhere. He spends all his time at his desk and computer, handling dozens of tasks every day and working overtime every day.

The workload has suddenly increased, and I'm not used to it yet.

On the morning of February 14th, Chen Xuebing and Ren Ying had just arrived at the chairman's office when someone was already waiting at the door.

When Chen Xuebing saw that person, he immediately felt overwhelmed.

"Manager Yang, what are you doing here again? Didn't I tell you to come back to me after you've developed a mature product? You've come three times a day. I just had a day of peace, and now you're here again! Is this never going to end? How did your department operate before?"

The young technical manager, Yang Ke, chuckled, displaying an unyielding, thick-skinned attitude. He said, “Chairman, this is truly a significant improvement! We’ve been working overtime for several days straight to solve the ‘pseudo-backend’ problem you mentioned! Now, this ‘Kunlun Mini’ is not only energy-efficient but also eliminates the disjointed feel of the original Symbian imitation! I first showed it to General Manager Xu of our Kunlun business unit, then consulted General Manager Lu, and both leaders unanimously approved it before showing it to you! General Manager Lu said that with your guidance during this period, the work in all our departments has progressed rapidly! He told us to take advantage of your presence to communicate with you more often!”

Chen Xuebing cursed inwardly.

That damned Lu Weibing, he treats him like livestock.

But he didn't show it. He took the keyboard prototype that Yang Ke handed him, went into the office, sat down, and tried it out.

Pressing the "-" key in the upper left corner opens a traditional nine-grid menu, and then pressing and holding the "#" key activates a "simplified desktop" similar to the WP system.

Chen Xuebing used the somewhat abnormal system with great ease.

He nodded. The desktop looked better than before; the flashy dynamic interface rendering was gone, and it was smoother than when he first used it a few days ago.

This system is a "simplified smart system" developed for feature phones with up to 16MB of RAM and 128MB of Flash storage. The system can be installed by connecting to a computer and downloading Kunlun MINI format application packages. The pre-installed version comes with a simplified version of StarLink and a music player, which can download songs using mobile data. It can also connect to the Kunlun App Store and has even made several small games specifically for this purpose.

Chen Xuebing never expected that Qidian would come up with this thing on its own while he was away, and even set up a separate project team to work on it. Lu Weibing claimed that this was a "strategic defensive product" that could cultivate user habits in advance and push some of Kunlun application's user channels to lower levels.

The management has their own logic, and he can't say anything, so he can only let them do as they please and has no choice but to cooperate.

"Overall, it's not bad." Chen Xuebing tested it for a few more minutes and found the physical buttons to be very convenient. After thinking for a moment, he said, "Actually, I think it's completely unnecessary for you to keep a 7MB JAVA driver for the compatibility of these few small games. I think you should abandon the JAVA program altogether and use our 'KAPP' format, which is more lightweight. Also, add a pre-installed UC Browser so customers can experience more of our online functions. Keep using the button shortcuts effectively."

Regarding "KAPP", Singularity has confirmed the system's name during this period.

The overseas name for the Kunlun system is "KOS", which is derived from the first letters of the pinyin for "Kunlun" and also the first letters of the English word "kylin" in the first generation of Kirin mobile phones.

The application format suffix (similar to Android's APK format) is called "KAPP" by Kunlun, which means "K" is added before App (Application).

"Also, for the Kunlun Mini, just this one version, no matter how well it's made, don't waste any more time making this thing. It has a lifespan of at most 18 months, and the free installation of Kunlun Mini in 3G Magic Cube stores can only be a secondary business. First of all, it cannot affect the experience of Kunlun users. You need to do a good job of installation demonstration and promotion to encourage users to install it themselves at home."

Chen Xuebing added.

Yang Ke's eyes dimmed somewhat. After all, this was a project he was solely responsible for. If it was cut, he could only go to other project teams and at most become a deputy manager.

But he immediately nodded, firmly stating, "Our CEO Xu also agrees. Only one version can be made, so once it's released, it should be the perfect version. Kunlun OS will have many updates in the future, but this will definitely be the most special version in the Kunlun family because it has its own unique 'mini' suffix."

He was getting a little emotional as he spoke.

Chen Xuebing deliberately teased, "It might not be special. By then, keyboard phones will be replaced, and no one will pick them up and install them."

"I will definitely do a good job," Yang Ke blurted out.

Chen Xuebing nodded in satisfaction and said, "Well, it wasn't for nothing that I gave you so many suggestions. Singularity needs this kind of spirit. Go ahead, I'll remember you. Do a good job in the Kunlun Business Unit."

Ren Ying, who was standing next to her, immediately took out her notebook, wrote down a name, and added parentheses after it: (Kunlun Mini Manager, pay attention to market feedback, consider promotion)
"Thank you, Chairman!" The young man left happily.

Chen Xuebing also leaned back on the sofa and let out a long sigh.

"Work can't be delayed, or it will pile up! Once we've set up our headquarters in Shanghai, you need to find a way to bring Qidian's work reports to my office. There needs to be someone specifically assigned to handle them, organize them, and report back to me regularly."

“Once your office location is fixed, these things will be easier to handle,” Ren Ying said with a smile.

"Sigh, it's better to invest than to do it myself! Spreadtrum is doing a great job and has never bothered me," Chen Xuebing complained again.

Ren Ying immediately reminded him, "The 3 million yuan payment needs to be made to the Huawei joint venture before the end of the year."

"Have the headquarters transfer the funds as soon as possible. As for the land in Chengdu, I'll talk to the development zone about delaying the payment by two months with 300 million yuan. It shouldn't be a problem."

"Okay, regarding that 7.5 million loan, the headquarters finance department just paid 360 million in interest yesterday, and now we still need to accrue 12.3 billion, leaving less than 7000 million."

Accrual means that future expenses are recorded in advance in the accounts. This money cannot be touched to avoid insufficient funds when payment is needed.

Logically, the normal financial process should require the expense to be accrued for much longer than this, at least a quarter in advance. However, Mr. Chen always lives one day at a time, and he's already doing well if he can accrue the pre-expenses for the next month.

Even Ren Ying, who has always been aware of potential crises, has gotten used to it. According to President Chen, this is called "making full use of funds."

Not a single penny of his money can be left idle; he must be working outside at all times.

Even with the 10 billion yuan currently set aside in the 3G fund, President Chen is calculating the market interest every day.

"Will the company give out extra year-end bonuses?" Ren Ying asked again. When it came to giving out money, President Chen was exceptionally generous.

Chen Xuebing scratched the back of his head: "Let's give them 2000 million in subsidies. As for the rest, let each company distribute it according to their own salary system and their own reserves. Changzheng doesn't have much money in its accounts, so of the 2000 million in subsidies, give them 800 million."

Currently, Gu'an Construction has 110 million yuan in cash on hand. There are also upcoming payments from the Chongqing project and another 20 to 30 million yuan tied up in the sand mining project. Although they need to prepare for the start of the Sichuan project, most of the materials do not require payment for the time being, and the funds are sufficient to support them for two or three months.

Singularity's revenue is higher. Spreadtrum's payments have been over 60 million RMB in the past two months, with regular monthly expenses of less than 22 million RMB. Special expenses (factory construction, laboratory) are provided by the group. In the past few months, it has accumulated more than 200 million RMB in its accounts, and has 5.25 million RMB in mobile deposits and 1.06 million RMB in mobile phone prepayments (106,000 units) on hand.

We recently paid Marvell a 1.41 million yuan technology solution buyout fee and the contract fee for the first batch of 15 sets of materials (2310 yuan per set, totaling 3.465 million yuan). After putting the products into production, we still have 3.5 million yuan left in the account.

The actual material cost of this batch of contracts should be 2485 yuan per set. However, Marvell bought out the solution fee for 80 sets in one go, and then saved 22.5 US dollars in solution fee per set. As long as Kirin sells more than 80 units, this buyout will be profitable.

Furthermore, this buyout agreement also allows the system-on-a-chip to be licensed to other companies, with Marvell handling the order placement and shipping, and only requiring a $7 packaging fee per chip.

The price of the second batch of materials is still under negotiation. With Apple's involvement, things are going relatively smoothly, and we might be able to get it down to below 2200 yuan.

If we can reach this price, the profits will be substantial. The current 300,000 mobile orders can generate 300 to 400 million yuan in profit, and the 106,000 pre-sales can generate over 150 million yuan, totaling approximately 500 million yuan in profit.

After going public, it earns even more; even online, it costs 4199 yuan, while offline it sells for 4399 yuan.

Aside from the assembly fee of a few dozen yuan and the JD.com channel fee, each unit sold online can earn about 1700 yuan.

Offline sales have no channel fees, but there are small shipping costs, and you can earn about 2100.

Of course, these are all gross profit earnings; miscellaneous expenses are unpredictable.

There are still many other problems to be faced. For example, although the current production line is very advanced, it is still being refined in terms of efficiency. It produces less than 10 units per month. It will take four months to complete the order of 30 units plus 10.6 units. Efficiency needs to be improved.

Subsequent sales are also a problem. Singularity currently does not have a shopping mall channel and relies mostly on online orders after its listing. Although the response was enthusiastic in the past period, we still have to wait for the first wave of market reaction to make a real impact.

Singularity's current strategy is to first assess the initial sales figures before considering whether it's necessary to rapidly expand its 3G Magic Cube stores nationwide.

These are all issues that the Singularity management team has been busy with recently. Since he hasn't been involved in these detailed management tasks, Lu Weibing arranged for someone to prepare a plan for him. He reviewed it over the past few days and found it overwhelming. He realized he wasn't some kind of genius, so he gave a vague reply: "Focus on expanding the marketing department and the supply chain management department."

The promotion of mobile phones, the supply chain, the progress of system development, and Lin Bin also has a Weibo website under construction. One thing after another.

There are still matters to attend to in Sichuan, Shanghai, and Hong Kong.

Now we can only focus on the big picture and let go of the small details, and slow down the urgent tasks. Some things that he originally planned to handle personally can now only be tested on the abilities of his comrades. Fortunately, during the time he has let go of Qidian, they have survived quite well. With periodic adjustments, there are no major problems.

After a moment of contemplation, Ren Ying was still struggling with the issue of money.

"If you send out 2000 million, the group will only have 5000 million left in its account. This time when you went to England, the company had a few people exchange 15 pounds for you. That should be enough, right? You don't have any major expenses, do you?"

Chen Xuebing was taken aback, then laughed and said, "Why are you exchanging so much money for me? Just make sure there are no problems with the visa and the money transfer!"

“Everything is arranged.” Ren Ying opened her notebook upon hearing this. “Your visa is TIER 1, your companions are on tourist visas, your flight is Air China CA937 at Beijing Capital Airport tomorrow afternoon, someone will pick you up when you arrive, and the Ritz London hotel has been booked. I will entrust these matters to Goto Miki. She promised me that she will temporarily act as your assistant and take care of your itinerary during this trip.”

Ren Ying is not going abroad with us this time. She has already arranged a visit to Huayi Brothers by phone and plans to take advantage of this time to visit the Beijing Huayi Company.

She felt both nervous and excited as she took this step of independently managing her business.

"Okay." Chen Xuebing nodded. "I've already told you Huayi's bottom line. If needed, have President Kan send two people to help you. What about the financial settlement?"

"Oh, Mr. Kan said that he has already reached an agreement with Central Huijin. As long as the contract is signed, the RMB 1 billion will be paid into the account they provide, and the £70 million can be paid into our designated account at any time."

When the 3G Fund was established, Changzheng reached a special agreement with Central Huijin: when it came to acquiring foreign technology companies, Central Huijin could exchange RMB 10 billion in foreign exchange for Changzheng at any time.

Foreign exchange has no specified currency; it can be any type of foreign exchange.

The eldest son of the central bank, who manages the foreign exchange reserves, is just that powerful.

However, when it comes to foreign exchange, Mr. Chen is quite confident.

"That's fine! Why bother exchanging for pounds? Do you think I don't have money overseas if I really need it? Cayman to UK, direct international wire transfer!"

Ren Ying chuckled: "I almost forgot you also have a Cayman Islands company. May I ask how many there are now?"

Chen Xuebing glanced at her sideways: "You know you're being presumptuous. Don't ask about money!"

In the afternoon, Goto Miki and Lu Xiaochun arrived in Shenzhen one after the other.

One of them was in charge of legal contracts, and the other was in charge of financial coordination.

The commercial law of Singapore and the United States that Goto Miki studied is quite different from the contract law of the United Kingdom. Fortunately, she had previously worked with British companies at PricewaterhouseCoopers and had prepared for this for a long time.

Lin Bin and two accompanying technicians were also on the trip, and Chen Xuebing called them to his office for a brief discussion.

"Mr. Chen, the UK is currently led by the Labour Party. Their governing philosophy focuses more on employment than technological sovereignty, and they have a lower willingness to intervene in the acquisition of domestic high-tech companies. You asked me to look at their intervention records, but I haven't found any cases, including the ongoing acquisition of British Steel by India's Tata Steel, which involves the energy sector. From all indications, it is proceeding smoothly."

Goto Miki's report stirred something in Chen Xuebing's heart.

"Oh? You mean that as long as they are given enough job openings, there's still room for negotiation, even if it means acquiring ARM's headquarters?"

He is quite confident about the acquisition of ARM China's equity because, through his contact with PwC, they seem quite curious about Kunlun Systems and have offered a time to meet with the company's leadership.

On the morning of the 18th, taking into account the 7-hour time difference with Cambridge, it happened to be Chinese New Year's Eve.

"Uh," Goto Miki was still not quite used to Chen Xuebing's wildness and hesitated, "ARM is a listed company on the London Stock Exchange and NASDAQ in the United States. Its current market value is $26 billion. The UK's Enterprises Act 2002 still has a clause that can veto transactions on the grounds of 'national security,' but it is rarely mentioned. If the payment cannot be made in time to facilitate the transaction, it will cause panic in British society about the risks of technology transfer or a review process, which will be very troublesome. In fact, if you want to acquire them completely, you can find a capital company from a country friendly with the United States to handle it. The biggest risk is the extension of US technology control."

Chen Xuebing was speechless.

Can you finish what you have to say at once?
The US's damn Pacific police are definitely going to expand!
But it's hard to say.

He thought of the change of ownership of ARM in later generations, his eyes lit up, and his heart skipped a beat.

"Bang!" Chen Xuebing slammed his hand on the table and stood up. "Then let's stop discussing it, let's see what's going on when we get there, let's go!"

(End of this chapter)