Chapter 619 - 442: Chen Yansen: "This production line isn’t any younger than me, is it?

On July 4th, wisps of clouds lazed across the sky. Sunlight scattered on the old canal, its silvery sheen shimmering gently with the ripples.

A panda-colored Gusteau drove into Changzhou Luoyang Town.

The lush summer flowers added a touch of cheer to the remote town in Sujiang.

"Sujiang truly is one of the wealthiest provinces in the East China Region. Even a small town like this has more than two hundred factories."

Gao Weilin couldn’t help but remark with admiration as he gazed out the window.

"At the manufacturing poker table, there are no permanent trends, only timeless technology. Assembly plants have no future."

Chen Yansen said with a knowing smile.

"So that’s why the Boss has been going to great lengths to poach talent and establish Tiangong Technology? He’s even willing to risk suppression to develop his own chips?"

Old Gao had a way with words. Behind what seemed like rhetorical questions was sincere praise for Chen Yansen’s strategic vision.

"I’m just sick of taking their crap. Why should the suppliers from Europe and America get the lion’s share of the profit on a two-thousand-yuan phone?"

Chen Yansen snorted.

"Most phone manufacturers are like that," Old Gao said with a chuckle.

"So it’s okay just because everyone else does it? That money should be mine to make!"

Chen Yansen immediately revealed his true motive.

"Exactly!" Gao Weilin nodded, playing the part of the perfect hype man.

"By the way, I remember your checkup results from last year weren’t great. I’ve made an appointment for you with a specialist at Yanjing Xiehe Hospital. After you’re done with the Xinke acquisition, I want you to take a week off."

Chen Yansen added in a calm, measured tone.

In his past life, Old Gao had died of liver cancer the same year Feiyu Technology went public.

In this life, Chen Yansen had no intention of letting Gao Weilin die so young.

’If Old Gao were gone, who would manage his coffers for him?’

’Zhou Shouzhi is capable, but he’s still an "outsider."’

’At least, to the Chen Yansen of 2013, he wasn’t one of his own people yet.’

"Boss, it’s just a minor issue. Thank you for your concern, but let’s deal with it after the New Year." Gao Weilin shook his head, refusing while taking the opportunity to show his loyalty.

"I don’t want to have to say it again," Chen Yansen said, his tone firm.

"Yes, Boss. I understand." A warmth spread through Gao Weilin’s chest, and he agreed with a smile.

’When Chen Yansen worked him to the bone, he didn’t treat him like a human being. But he was incredibly generous with money and would occasionally show a hint of personal affection.’

’Gao Weilin knew it in his heart. Zhou Shouzhi, Liao Wei, and Huang Zheng might each be in charge of companies valued at over ten billion US dollars, but when it came to Boss Chen’s true confidant, it had to be him, Old Gao!’

’At every meeting, big or small, wherever President Chen was, Gao Weilin was there too.’

’Major investment projects were almost always handed to him.’

’That was trust!’

A short while later, the Mercedes MPV in front of them stopped. A bright red brand logo was printed on a white wall: Shinco.

The paint on the wall was mottled and old, looking to be more than twenty years old.

Xinke, a name derived from "new top scholar," symbolized the founder’s immense ambition to be "number one in everything."

They initially made their first fortune with radios, then caught the VCD wave, completely changing their destiny.

In 1997, Xinke VCD’s market share rose to 30%, with annual sales reaching a staggering two billion yuan.

For the average person back then, owning a Xinke VCD was like getting an Apple or an Orange Mobile Phone today.

Distributors from all over the country swarmed Luoyang Town, packing its guesthouses to the brim!

But this boom lasted only three years. The sudden advent of the DVD pushed Xinke to the brink of collapse.

With no other choice, the founder, Qin Shangzhi, set his sights on LCD TVs. But Xinke had neither proprietary technology nor a cost advantage, resulting in weak competitiveness and low profits.

Over the next few years, Xinke constantly chased market trends. Whatever was selling, Qin Shangzhi would make.

Air conditioners, GPS navigators, Blu-ray DVDs... Xinke fought and lost in one field after another, forever trapped in the business maze of "imported components plus assembly." The once-vast enterprise was worn down until it was on its last breath.

By now, Xinke was just an empty shell. It was said that even the simple task of tightening screws in the workshop had to be outsourced.

Of course, this was an exaggeration, but it reflected Xinke’s bleak reality.

The slogan, "The world looks to Hua Country, and Hua Country has Xinke," no longer rang true.

Some of its former partner companies had gone public, while others had successfully pivoted. Only Xinke remained, becoming Luoyang Town’s "village guardian," reeking of imminent demise.

After launching the Orange E1, Chen Yansen set his sights on the air conditioner industry. He had Gao Weilin conduct a comprehensive survey of the domestic market.

If they were to go the acquisition route, Xinke was the best choice.

After all, you don’t see many air conditioner brands that manage to sell only 500,000 units a year.

This was 2013, a period of booming economic growth, and demand for air conditioners in smaller towns was enormous. Even second-tier brands like Chigo, Konka, and TCL hadn’t fallen to Xinke’s level.

As soon as Qi Siyang from Changzhou’s Central Bureau saw the distant Rolls-Royce with its coveted repeating-digit license plate, he hurried over with his secretary to greet them.

Qin Shangzhi, sixty-five this year, was a beat slower to react. With a soft sigh, he too hurried after them.

He and Xinke had both seen their glory days, but times had changed. Xinke was a shadow of its former self.

It now had just over 5,000 employees. Air conditioner production lines accounted for more than 70% of operations, with audio-visual equipment at 20%, and R&D, administration, and management making up the final 10%.

It was barely hanging on by a thread. No one could say when it would finally go under.

Changzhou didn’t want to let Xinke collapse and had injected substantial funds on multiple occasions, but it was like throwing money into a black hole—it all vanished without a trace.

When Qi Siyang learned that Senlian Capital intended to enter the major appliance industry and was particularly bullish on air conditioners, he proactively contacted them before Gao Weilin even had a chance to notice Xinke.

"Mr. Chen, it’s good to see you. Welcome!"

Qi Siyang was exceptionally warm and humbled his posture; after all, he was the one asking for a favor.

Moreover, Chen Yansen was no upstart with shallow roots. With Orange Technology, Pinbei Mall, and Deep Blue Battery under his belt, he was an honored guest wherever he went.

He understood better than anyone else in the Business Community just how highly the top brass regarded Chen Yansen.

To put it simply, he was the man of the hour.

A poster child for young entrepreneurs in Hua Country!

Addressing him as "Mr. Chen" was respectful without being overly sycophantic.

"Mr. Qi, a pleasure." Chen Yansen shook Qi Siyang’s right hand, offering a polite smile.

A dozen or so people emerged from the two cars behind him—an entourage of industry analysts, accountants, auditors, and legal staff.

’Leave professional matters to the professionals.’

Just then, Qin Shangzhi came closer. Before he could speak, Chen Yansen took the initiative, stepping forward with a smile to greet him. "President Qin, I’ve heard so much about you."

Old-school entrepreneurs like Qin Shangzhi might have had some luck in catching the wave of the era, but when that wave came, only a few were able to ride it to success.

He may have fallen on hard times now, but the man was nearly seventy. Naturally, Chen Yansen wouldn’t be so arrogant as to wait for the older man to greet him first.

"President Chen, you flatter me. It’s your name that has been making waves these past two years," Qin Shangzhi replied with a chuckle.

A flicker of envy, almost imperceptible, passed through his eyes.

In his attempts to find a path forward for Xinke, he had tried all sorts of products, leaving no stone unturned—not even electric fans or air purifiers.

But Xinke was like a doddering old man who couldn’t keep up with the times, failing at every new venture it tried.

If Chen Yansen didn’t see any value in Xinke, his plan was to resort to OEM branding and contract manufacturing. Better to lose face than to go bankrupt.

’Thousands of people depended on him for their livelihood. What other choice did he have?’

"If you don’t mind, President Qin, I’d like to tour the factory first," Chen Yansen said, cutting straight to the chase.

Now that his status had risen, he spoke more freely and couldn’t be bothered with the usual empty pleasantries with people like Qi Siyang and Qin Shangzhi.

"Of course." Qin Shangzhi paused for a second, then remembered that Chen Yansen was a typical ’90s kid. His style was a world apart from the entrepreneurs of decades past.

"Lao Qin, give President Chen a proper tour," Qi Siyang said with a slight cough, his tone pointed.

"President Chen, this way, please." Qin Shangzhi nodded and led the way.

Chen Yansen and Qi Siyang walked side by side, with Qin Shangzhi to their left.

Gao Weilin and Qi Siyang’s secretary followed a step behind them.

Bringing up the rear was a large contingent of several dozen people, a mix of staff from the Central Bureau, Xinke, and Senlian Capital.

Workers passing through the factory grounds couldn’t help but stop and stare. Upon recognizing Chen Yansen, they hurried back to their workshops to share the news. "You’ll never guess who I just saw outside!"

"Jay Chou?"

"What would Jay Chou be doing at our factory? It’s Chen Yansen!"

"Holy shit! For real? Don’t tell me Senlian Capital is thinking of acquiring our factory?"

Several production line workers exchanged glances, discussing the matter in hushed tones.

But their eyes held no trace of sadness; instead, they were filled with anticipation and excitement.

They had already heard the stories. A few months ago, Senlian Capital had acquired a fan factory on the brink of bankruptcy. After a brief period of restructuring, they had breathed new life into it, with monthly sales reaching over three million units.

Most importantly, the factory had raised the workers’ base salary to 3,300 yuan. With overtime, quarterly bonuses, and other benefits, they could easily earn seven to eight thousand a month.

Who wouldn’t want to work for Senlian Capital?

You work to make money. A new boss meant a few thousand more in income. They were even more eager for the deal to go through than Qi Siyang or Qin Shangzhi.

「Elsewhere.」

Qin Shangzhi led Chen Yansen into a workshop and pointed to the production line. "This is the assembly and testing module for Xinke Air Conditioners. From assembling the outer casing and installing internal components to connecting the pipes and wiring the electronics, every step follows strict industrial standards."

"The compressor, motor, and fan are all imported?" Chen Yansen asked.

The implication was clear: Did Xinke Air Conditioners have any proprietary parts at all?

It was no different from the knockoff phone factories in Huaqiang North.

Qin Shangzhi opened his mouth but was unable to retort. If he had the capability to develop his own compressors and motors, would Xinke Air Conditioners be in such a pathetic state?

He thought for a moment before saying, "President Chen, Xinke has built up a certain technological foundation in evaporator and condenser R&D. Our multi-bend high-efficiency evaporator can increase cooling and heating efficiency by 12% to 25%."

"Compared to what? Gree? Midea? Or just a standard folded evaporator?" Chen Yansen pressed.

Qin Shangzhi froze, thinking to himself, ’This kid’s not easy to fool!’

’Does the journalism program at Xucheng Academy teach this stuff too?’

"The data is benchmarked against standard evaporators." Seeing no way out, Qin Shangzhi had to answer truthfully.

Chen Yansen gave a slight nod and didn’t press the matter further.

He stepped forward to glance at the equipment model number, and his brow instantly furrowed. He turned to Qin Shangzhi and said, "This production line isn’t any younger than I am, is it?"

"..." Qin Shangzhi was speechless. He thought, ’You know about this too?’

’It wasn’t just this one. More than seventy percent of Xinke’s air conditioner production lines were from the late ’90s.’