Chapter 445: One billion? God will not reward hard work! If you are not heading in the right direction, your efforts will go to waste!
“The conveyor belts, gears, and bearings are badly worn.”
"The welding gun's wire guide is clogged."
“The accuracy of the stamping equipment has also decreased.”
“No frequency conversion module installed?”
“There’s not even a real-time monitoring system for energy efficiency?”
Chen Yansen walked and looked, commenting non-stop, leaving Qin Shangzhi speechless with his questions.
Qi Siyang stood aside, his eyes on the nose and his nose on his heart. He wanted to say something to smooth things over, but then he thought that he didn't understand the technology at all, and if he really interrupted, he would probably make things worse. So he just pretended to be deaf and dumb and said nothing.
"Mr. Chen, this production line is a bit old, but it is cheap." Qin Shangzhi explained with gritted teeth.
After all, it was a second-hand production line purchased in 1999, and it almost became a product of the millennium. It has produced tens of millions of air conditioners for Shinco. Even if it has no credit, it has worked hard.
"Mr. Qin, are you sure that the air conditioners produced by this thing can meet the energy efficiency level standards?" Chen Yansen asked back.
Before coming here, he wondered how Shinco could fall into such a miserable situation that it only sold 500,000 or 600,000 units a year;
After coming here, he lost interest in acquiring Xinke and instead wanted to meet Xinke's channel manager.
If he can even sell such junk, he must be a top sales genius at least!
"The price of air conditioners is also low, there will always be places and users who need Xinke." Qin Shangzhi tried hard to force a smile.
He never expected that Chen Yansen was so knowledgeable about shearing machines, CNC punching machines, bending machines, tube expanders, and welding equipment, and could even point out the problems in the assembly process of compressors and refrigeration systems in a logical and well-founded manner.
This person is not just a small fry, he is clearly a big shot in the industry!
"Mr. Chen, so the selling price of Xinke is also very low." Qin Shangzhi pondered for a moment and said in a low voice.
Chen Yansen burst out laughing. It turned out that the biggest selling point of the new product was its price.
Qin Shangzhi pointed to the final assembly line not far away, and his tone was full of pride and nostalgia: "It was imported from Germany and cost 30 million yuan back then."
Chen Yansen walked up to take a closer look, gently stroking the grease on the edge of the equipment with his fingers, and then asked, "The conveyor belt speed is 0.8 meters per minute, the cycle time is 45 seconds, and what is the actual production capacity of an 8-hour shift?"
"A little over four hundred." Qin Shangzhi did not dare to be vague and could only answer honestly.
Based on a 45-second cycle time, theoretically 80 units can be produced per hour. If calculated based on an 8-hour single shift, the theoretical production capacity should be 640 units.
However, the actual production capacity is only about 400. Obviously, there is an efficiency loss problem in the production line, which is probably caused by reasons such as old equipment, long changeover time and improper operation of personnel.
At this time, Gao Weilin said at the right time: "Last year, the return rate of Xinke air conditioners was 18.7%, and the industry average is 6%."
Chen Yansen shook his head and said, "Xinke does not have its own compressor technology, the motors are imported, and even the control system is purchased from outside. To put it bluntly, you are just an advanced assembly plant."
Qin Shangzhi's forehead couldn't help but bead up with sweat.
The factory fell into silence, with only the humming sound of old equipment echoing in the air.
Seeing the tense atmosphere, Qi Siyang quickly changed the subject and said, "Boss Chen, how about we go to the meeting room first?"
"No rush! Let's check out the rest of the production workshops first." Chen Yansen waved his hand and refused.
He came to Changzhou to do business, not to drink tea and chat with others.
Qi Siyang was helpless, laughed dryly, and gave Qin Shangzhi a look, as if to say: Old Qin, you have been living like a dog for decades? You can't even handle a young man?
Qin Shangzhi smiled bitterly, held his breath, and led Chen Yansen into the audio-visual equipment production workshop.
The workshop is not large in scale, and its products are mainly DVD players, LCD TVs below 32 inches, home theaters and sound bars (i.e. sound bars).
"Is there still anyone in China buying DVDs?" Chen Yansen asked curiously.
He didn't mean to mock, he was just surprised.
"It is mainly aimed at the Southeast Asian and African markets. In fact, the sales volume is quite good, with more than 100,000 units sold every year." Qin Shangzhi shrugged and said.
In his opinion, since Chen Yansen is an expert, he probably won't buy this pile of junk from Xinke.
Without any expectations, my mentality became much calmer. I just treated it as making a friend and accompanied Chen Yansen to tour the factory area of nearly 300,000 square meters.
As the saying goes, a lean camel is bigger than a horse, and a rotten boat still has three thousand nails.
The total value of Xinke’s factories, equipment, brands, patents, etc. is at least tens of billions.
Apart from anything else, if Qin Shangzhi dared to follow the example of Antarctic Man, Arctic Velvet and Philips, and licensed the brand and just sold the trademark, it would be absolutely no problem to make a gross profit of 500 million yuan a year.
After all, it is a 20-year-old brand. There will always be consumers willing to pay for it just because of the "Xinke" sign.
By then, there will surely be a lot of new underwear, hand warmers, jackets, mobile phones, toilets, rice cookers and other products on the market, forming a huge OEM universe.
But once this is done, the newcomer will be like drinking poison to quench thirst.
Once the brand’s reputation is completely consumed, it is truly time for it to die.
Of course, if managed well, it may be possible to become the next Antarctic man.
Chen Yansen walked along the way and saw that many of the workers in the factory were in their forties, so he deliberately asked: "Among the new front-line general workers, what percentage are over 35 years old?"
"47.2%." Qin Shangzhi gave up completely and confessed everything.
"Why not open it? Replace it with a younger group who can work harder overtime?" Chen Yansen asked.
The smile on Qin Shangzhi's face suddenly faded, and he said in a deep voice: "They are all new meritorious officials who have worked here for more than ten years."
The clay Buddha can't even save himself when crossing the river, but he still worries about others?
Chen Yansen sneered secretly, but his impression of Qin Shangzhi changed slightly.
Although Qin Shangzhi is incompetent and can't do anything, he is still better than those guys who target employees over 35 years old for layoffs.
No one understands the fucked-up lives of those born in the 80s and 90s better than Chen Yansen.
When those born in the 1980s just graduated, the job allocation system was cancelled; before they found a job, the financial crisis came again; after finally getting through it, housing prices started to soar again.
Those born in the 1990s are even worse off. When they were in junior high school, elementary school was free; when they were in high school, junior high school was free; when they were in college, housing prices were skyrocketing; when they worked hard for ten years and bought a house, housing prices started to fall again.
For those born in the 1990s, the more ambitious they are, the worse their life tends to be.
Chen Yansen has never had any age restrictions on recruitment, and Feiyu Technology and other companies have a group of older operators and programmers.
It’s definitely not because these people are cheap and easy to use!
"Mr. Qi, Mr. Qin, to be honest, I'm not very interested in Xinke. It's too old and too broken." Chen Yansen said bluntly.
"Mr. Chen, Xinke has been in Luoyang Town for 20 years, and the surrounding supporting enterprises are very complete. If Senlian Capital wants to start a new business, the preliminary preparations alone will take one or two years."
Qi Siyang advised patiently.
As the highest person in charge of Changzhou Central Office, he naturally hopes to facilitate this acquisition.
Judging from the style of Suncity Capital, promoting and increasing salaries for employees will only be basic operations. Upgrading production lines, adding R&D funds, and increasing industrial output value will be the key points.
Xin Ke may fail, but Changzhou cannot lose this economic performance, and cannot watch more than 5,000 people lose their jobs.
To borrow a line from "Let the Bullets Fly", Qi Siyang doesn't care who the new boss is, as long as employment, tax revenue and industrial output can remain in Changzhou.
"Mr. Qin, what is the current valuation of Xinke Air Conditioning?" Chen Yansen was silent for a moment, then asked with a deliberately embarrassed look.
The implication was obvious: he only intended to acquire the air-conditioning business.
As for the production lines that produce LCD TVs, DVD players, electric fans, air purifiers and other products, he regards them all as garbage.
"One billion, including land, factory buildings, production equipment, as well as brand and patent assets." Qin Shangzhi gritted his teeth and quoted a package price.
"I don't want the brand, you keep it for yourself." Chen Yansen replied.
No brand?
Qin Shangzhi was slightly stunned.
He originally thought that Chen Yansen acquired Xinke Air Conditioning mainly for the brand.
"Five hundred million, but there is still a debt of two hundred million, which has to be borne by Senlian Capital." Qin Shangzhi said after thinking for a while.
"Mr. Qin, 500 million is no problem, but the debt belongs to Xin Ke. I bought Xin Ke's land, factory buildings and production lines. Why should I bear this debt?" Chen Yansen clearly expressed his disagreement.
Besides, the land does not belong to Xinke. Based on the average price of 410 yuan per square meter for industrial land in Sujiang, the value of 300,000 square meters of industrial land is 123 million yuan.
The factory area is 220,000 square meters, the construction cost is about 900 to 1,200 yuan per square meter, and the total value is between 198 million and 264 million yuan. Taking into account the depreciation of ten years, giving him 180 million yuan is considered conscientious.
The value of the production equipment is even lower, at most 80 million. These "old machines" that are almost as old as Chen Yansen may have to be transported to India or Africa before they can find suitable buyers.
Regarding patents, although Xinke is in decline now, its R&D team had more than 400 people a few years ago. It has accumulated a certain patent pool in technologies such as vortex noise reduction, swing wind device and multi-fold high-efficiency evaporator, and also owns a large number of basic patents.
Some things may not be used, but they are indispensable, otherwise it is easy to be sued by peers for infringement.
According to a simple calculation, these patents are barely worth 100 million yuan. Regardless of their performance, they are the result of more than ten years of accumulation.
The price Chen Yansen offered was 500 million, which was based entirely on the liquidation price, without any premium.
Because Xin Ke is not qualified to charge a premium!
"Then what about the more than 5,000 employees in the factory?" Qin Shangzhi asked without agreeing or refusing.
"I will try my best to retain operators below the supervisor level; others will either leave with 'N+1' compensation or have to re-interview and report on their work," Chen Yansen replied.
Qin Shangzhi and Qi Siyang looked at each other and saw some confusion in each other's eyes.
The good thing is that Senlian Capital is willing to take over all of Xinke’s grassroots employees; the bad thing is that the other party was too aggressive in bargaining and was only willing to offer 300 million after deducting liabilities.
"Mr. Chen, how about we go to Mr. Qin's office to have a cup of tea and talk slowly?" Qi Siyang suggested again.
It was difficult for Qin Shangzhi to make a decision in a short period of time. After all, it involved a business worth hundreds of millions of dollars and the livelihoods of more than 5,000 employees.
"Okay." This time Chen Yansen agreed readily.
A group of people stood outside the production workshop, many of them wiping the sweat from their foreheads.
Sujiang in July is also unbearably hot and stuffy.
Three minutes later, everyone walked into Qin Shangzhi's office. The interior decoration was antique, from the desk to the chair, all made of mahogany. In front of the room hung a calligraphy piece of "God rewards hard work", with vigorous and powerful fonts.
God won’t reward hard work!
If you’re heading in the wrong direction, all your efforts will be in vain!
Qin Shangzhi in front of him is a good example of this truth. The harder he works, the faster he will die.
"Mr. Chen, Mr. Qi, please take a seat! Xiao Sun, go make a pot of Longjing tea." Qin Shangzhi said as he instructed his assistant.
Chen Yansen was neither anxious nor impatient. He chatted with Qi Siyang and Qin Shangzhi, and took the opportunity to reveal that Senlian Capital would soon invest in the home appliance sector.
This caused Qi Siyang and Qin Shangzhi to look at each other in surprise.
Qin Shangzhi is envious!
What Qi Siyang was thinking about was how to retain the investment from Senlian Capital to drive the economic development of Changzhou and the prosperity of the entire industrial chain.
"By the way, which company does the factory next to Xinke belong to? I see the scale of the factory is not inferior to Xinke?" Chen Yansen asked casually.
"It's Xinyuan Sheet Metal Co., Ltd. They used to be the supplier of casings and brackets for Xinke air conditioners. But as Xinke's business volume gradually shrank, their boss moved the factory to Ningxiang to provide supporting services for Gree." Qin Shangzhi said slowly.
In fact, during Shinco’s heyday, seven of the ten nearby factories were Shinco’s supporting enterprises, producing motors, air-conditioning vents, buttons, foam packaging, cartons and other products for it.
"How big is the area? Is anyone using it?" Chen Yansen asked knowingly.
"It covers an area of 280,000 square meters, with a plant area of 200,000 square meters. The core production area, including sheet metal, two devices, final assembly and finished product warehouses, covers an area of 120,000 square meters. The technical research and development area covers an area of 30,000 square meters. The administrative office building, employee canteen, dormitory, power center and logistics plaza cover an area of 50,000 square meters."
Qi Siyang glanced at the assistant, who immediately recited it fluently.
Finally, he added: "Two months ago, AUX intended to build a production base in Luoyang Town, which is expected to require 500,000 square meters of industrial land. The original Xinyuan Sheet Metal factory site is just within the target range."
Chen Yansen smiled and keenly caught a message from Qi Siyang and his assistant's eyes and micro-movements: this statement was most likely half true and half false.
Judging from his experience, AUX’s investment was real but the site selection was fake.
"Oh, never mind." Chen Yansen picked up the teacup, took a sip, and said nonchalantly.
Want to kill me?
No way!
Qi Siyang smiled awkwardly, glared at the smart-aleck assistant, and then said with a smile: "If Mr. Chen is interested, I will come forward to solve it."
"Then I'll trouble you, Mr. Qi." Chen Yansen smiled indifferently.
Qin Shangzhi, who was sitting on the side, thought about it and asked tentatively: "Mr. Chen, six hundred million! I will solve the debt problem myself."
(End of this chapter)
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