Chapter 774 Earning 2 billion less, or 100 million less? Orange Communications' overseas business!
In fact, Chen Yansen did not deliberately target BYD, because CATL also received a notification letter.
In addition, StarSource Technology and Orange Technology also sent emails to their suppliers.
The meaning is clear: if the requirements are not met, the cooperation will be canceled. Senlian Group is about to start screening suppliers. If you want to work for Mr. Chen, you have to improve the treatment and benefits of your employees.
There are dozens of rules and regulations, which is why Wang Chuanfu is having a headache. The cost of compliance is too high. Chen Yansen is forcing him to share his money with the workers.
But if they don't comply, they'll lose their OEM orders, losing at least 2 billion yuan in profits every year.
Suppliers across the country were cursing and complaining, wondering what Chen Yansen was up to.
They didn't believe that Chen Yansen was only trying to ensure the quality of parts and the workers' income.
After all, in a prostitute's eyes, everyone looks like a prostitute.
Some people thought that Chen Yansen wanted to take the opportunity to lower the product price, so they took the initiative to contact the contact person in the purchasing department and said that they could lower it by another five to ten percentage points, but were directly rejected by the staff of Senlian Group.
Some people were preparing to bribe the factory inspectors; even Hua Zi, who was carrying a full bag of cash, was ready, just waiting for them to come.
Some speculate that Chen Yansen wants to strengthen control over the supply chain and force them to cede equity.
They have all sorts of strange ideas, and their coping methods are equally varied.
...
...
At 10:30 p.m., Chen Yansen returned to Luzhou.
He asked Huang Boxiang to take Mengjie home first, and then returned to Yujing Villa.
When he entered the villa, he saw Ye Qiuping sitting on the sofa, her brows furrowed, looking through a document.
Hearing the noise at the door, Ye Qiuping turned her head and, upon seeing Chen Yansen, immediately put on a charming smile, slowly stood up, and went to greet him.
Before "boss" Ye Qiuping could finish speaking, Chen Yansen interrupted her: "From now on, call me by my name."
"I dare not," Ye Qiuping said honestly, shrinking her neck.
"Call me 'boss' once, and I'll have a million yuan deducted from my salary."
Chen Yansen changed into slippers, leaned back on the sofa, and spoke slowly and deliberately.
"Old man, I only earn six million a year, Chen Yansen, have some decency."
Ye Qiuping rolled her eyes and muttered a curse under her breath.
She's from Sichuan, and she has a fiery spirit in her bones; her usual gentleness and charm are all an act.
"Half a sentence, and you'll lose 500,000."
Chen Yansen said with a smile.
"..." Ye Qiuping took a deep breath and muttered, "I'm going on a hunger strike tomorrow to torture your son."
Chen Yansen naturally heard it, but he didn't say anything. He instructed himself, "I've reached an agreement with Abyssinia to bring in Orange Communications as a local private operator. Don't worry about the equipment and technology; the group will handle that."
Go to Africa to become a telecom operator?
Ye Qiuping was slightly taken aback, then a look of joy appeared on her face.
She is a career-minded and ambitious woman; otherwise, she wouldn't be reviewing reports and approving contracts so late at night.
Orange Communications' current business mainly involves providing corporate phone cards, internet phone cards, and virtual phone cards to the three major telecom operators, as well as data and phone top-ups.
Despite having over 70 million users, all of these services are purchased from telecom operators. To put it bluntly, Orange Communications is just a middleman.
But it's a different story when you try to expand into the Abyssinia market!
Chen Yansen's words were clear: this is equivalent to Orange Communications obtaining an operating license, qualifying them to build communication base stations and issue physical and virtual phone cards in the local area.
In this way, Orange Communications' strength will grow rapidly.
Chen Yansen's idea was to start in Abyssinia, build a sales network of offline stores, and make Orange Mobile a "national" brand in the region.
Once Yunkun Aerospace's "Galaxy Matrix" covers the entire African continent, it will expand outwards to capture an entire market, and then extend to Australia and South America.
"Okay, boss. Can I call you by your name at the company?" Ye Qiuping asked, changing the subject midway through her sentence.
"Blurring the lines between public and private interests will also result in a deduction of 1 million."
Chen Yansen looked at Ye Qiuping with a mocking expression and said.
"I understand, I'll arrange it as soon as possible." Ye Qiuping spoke slowly, afraid of habitually saying "Okay, boss."
"Get some rest. I don't care whether you sleep or not, but my child needs to sleep."
Chen Yansen got up, put his arm around Ye Qiuping's waist, and walked towards the indoor elevator lobby.
...
...
The next morning, at BYD Pingshan Industrial Park.
Logically speaking, DeepBlue Technology only sent a few factory inspectors, and given Wang Chuanfu's status and position, he shouldn't have needed to show up. However, he was still worried and arrived at DeepBlue Battery's contract manufacturing base early in the morning, waiting in his office.
Hu Dexiang is an employee welfare specialist at DeepBlue Battery. He has only been with the company for a year. He and four colleagues took a car to Pingshan Industrial Park.
Actually, he didn't quite understand why the company was raising the entry barriers for suppliers and OEM manufacturers.
In his view, what does the salary level or the quality of food of BYD employees have to do with his own company?
If you feel that BYD's treatment is not good, you can always resign.
When he shared his thoughts with the director, the director smiled faintly and said, "Do you know why the company's production capacity is not increasing? And why Qingcheng is the best-selling mobile phone series?"
"Dark Blue batteries are expensive, while Green Orange batteries are cheap?"
Hu Dexiang thought about it carefully for several tens of seconds and gave an answer based on his intuition.
Nowadays, only high-end consumer electronics products, such as drones, mobile phones, and cameras, are willing to buy Deep Blue batteries.
In addition, there are some expensive medical devices.
New energy vehicles have the largest usage, but Tesla, which sells the best, only sells less than 100,000 vehicles a year, which greatly limits DeepBlue Technology's revenue growth.
It's not that production capacity can't be increased, but rather that the consumer market is limited; if we produce too much, we won't be able to sell it.
A bunch of poor bastards, who's going to buy it?
Take mobile phones as an example. There are 1.4 billion potential users nationwide, but the shipment volume in 2014 was less than 500 million units, of which models priced below 1,000 yuan accounted for 60%.
Looking at Apple, they ship nearly 200 million phones a year, all of which are high-priced models.
It's not that the product is bad, but that sales in the domestic market are not high.
Who can afford to buy a 4,000-5,000 yuan bottle of Yao Cheng, when those working overtime every day and earning only 3,000-4,000 yuan a month?
Therefore, after enduring it for several years, Chen Yansen really couldn't take it anymore.
He now only offers these two options to suppliers and contract manufacturers.
First, raise employee wages so they have money to buy Senlian Group's products and services, thereby creating demand. Senlian Group can then increase its production capacity, which in turn provides more jobs and humanitarian aid.
Secondly, by canceling the cooperation, supporting compliant suppliers and contract manufacturers, and then taking the opportunity to acquire controlling stake through investment, Chen Yansen can also obtain additional humanitarian aid.
No matter which path he chooses, Chen Yansen will win!
For upstream and downstream partners, there are only two ways to make a living with Senlian Group.
Before long, Hu Dexiang saw the BYD factory not far away.
In August of the year before last, when the first generation of deep blue batteries was launched, due to insufficient production capacity and the intervention of some people, Chen Yansen handed over some of the orders to BYD and CATL for contract manufacturing.
After a year and a half of capacity expansion, BYD's annual production capacity reached 17 million kilowatt-hours, or 17 gigawatt-hours, with an industrial output value of over 6 billion US dollars.
CATL's production capacity is 26 gigawatt-hours, making it DeepBlue Technology's largest contract manufacturer.
Despite a 20% price reduction in the supply price of the first-generation Deep Blue battery last year, Chen Yansen's OEM profit for BYD remains at 120 yuan per kilowatt-hour.
In other words, BYD earns 2.04 billion yuan annually from DeepBlue Technology in its contract manufacturing business for DeepBlue batteries.
"Click!"
Hu Dexiang got out of the car and walked towards the gate with several colleagues.
Upon hearing that they were from DeepBlue Technology and were there to inspect the factory, the security guard at the entrance immediately smiled and let them through, then notified the people in the office.
Upon receiving the message, Wang Chuanfu, along with the head of the DeepBlue Battery business line and his secretary, quickly went out.
When Hu Dexiang saw Wang Chuanfu, he was taken aback. He didn't expect that BYD's big boss would come to inspect the factory.
In 2014, Wang Chuanfu ranked 28th on the Forbes Rich List with a net worth of nearly 30 billion yuan.
"Welcome! It's been a pleasure seeing your company here today. How would you be more appropriate to address me?"
Wang Chuanfu asked with a broad smile.
"Hello, Mr. Wang, I am Hu Dexiang, the leader of the factory inspection team from DeepBlue Technology. You can just call me by my name."
Hu Dexiang responded neither humbly nor arrogantly.
Most of the people sent to inspect the factory were hotheads who were stubborn and only followed Chen Yansen's rules.
"Then I'll call you Manager Hu. Please come in!"
Wang Chuanfu spoke gently, leading De Xiang and his group into the factory.
"Mr. Wang, let's go to the production workshop first."
Hu Dexiang had only taken two steps when he saw Wang Chuanfu pulling him toward the administration building, so he got straight to the point.
Time was tight and the task was heavy. He had to go to CATL's factory in the afternoon, so he didn't have time to socialize or waste time.
"Alright then." Wang Chuanfu chuckled dryly and gave his secretary a wink.
The secretary nodded and led everyone toward the production workshop.
Hu Dexiang and others put on dustproof suits, anti-static shoe covers, safety glasses, and butyl rubber gloves outside the production workshop before going inside.
The first area is the cell activation area of the Deep Blue battery, which includes the electrolyte injection area, formation area, aging and capacity testing area.
Hu Dexiang didn't understand production, but as an employee welfare specialist, he was extremely knowledgeable about the protective equipment needed for the production environment. However, as soon as he walked into the injection area, his brows furrowed.
These workers' gloves were just ordinary work gloves.
It is important to know that electrolytes contain fluorides and organic solvents, which can penetrate the skin and cause irreversible damage to humans.
He raised his hand to look at the butyl rubber gloves on his hand, and asked with a dark face, "Mr. Wang, according to the safety production standards of Deep Blue Battery, when handling electrolytes, chemical-resistant gloves and gas masks equipped with specific filter cartridges must be worn. Why do your factory's people only have simple splash-proof masks and work gloves?"
Wang Chuanfu was stunned. He was a big boss with a net worth of hundreds of billions. Being questioned by a lowly worker in front of his subordinates and secretary made him lose face immediately.
He was about to get angry, but he quickly held back, afraid of offending Hu Dexiang and even more afraid of losing more than 2 billion yuan in annual revenue.
"Old Wang, what's going on?"
Wang Chuanfu immediately shifted the blame.
Wang Weirui, who was in charge of DeepBlue Battery's OEM business, cursed under his breath, thinking to himself: What else could it be? Of course, it's to save costs.
But he couldn't tell the truth, so he could only stammer, "Manager Hu, it's probably because we've run out of butyl rubber gloves. I'll have someone go to the materials warehouse to get some right away."
Hu Dexiang reached out his hand.
A colleague handed over the factory inspection form.
He showed no mercy and crossed out the issue of protective equipment.
Next, he went to the electrode manufacturing area and the cell assembly area, where the number of "×" marks on the forms increased.
He then randomly selected several workers to inquire about their wages, payment status, overtime pay, accommodation, and meals. To put it simply, it was all problems, with no advantages whatsoever.
The only commendable thing is that Wang Chuanfu announced yesterday that the employees' base salary has increased from 1,900 yuan to 2,500 yuan.
Including allowances, meal subsidies, night snack subsidies, and social security, the monthly cost per employee does not exceed 5,000 yuan, totaling 60,000 yuan per year.
With a total of 1,600 employees, the annual human resource cost barely exceeds 100 million yuan.
The company earns 2 billion, but only 100 million in employee wages?
Hu Dexiang was secretly astonished. He hadn't expected that, despite both being factories, BYD and DeepBlue Technology were worlds apart.
"Mr. Wang, the hourly wage needs to be increased to 20 yuan, overtime pay should be in accordance with the labor law, workers must be equipped with complete protective equipment during the production process, we don't require bonuses, but the daily working hours cannot exceed 12 hours, and one day off must be arranged per week..."
After going around the circle, Hu Dexiang addressed each point to Wang Chuanfu.
"Manager Hu, we'll make changes, we'll definitely make changes! But we still need to eat, let me show you some hospitality."
Wang Chuanfu said with a smile that he planned to give Hu Dexiang some good reviews and make him get through this.
Otherwise, if we actually make the rectifications according to their requirements, we will incur tens of millions, or even hundreds of millions, of additional expenses each year.
He couldn't bear to part with it!
However, more than an hour later, after Hu Dexiang had eaten and drunk his fill, he left a bill and left without giving the billionaire any face.
Hu Dexiang is a sensible person. The group will announce the complaint hotline and email address tomorrow. If BYD employees write to the group's official website to complain, he'll be finished.
Not only will I lose my job, but I might also have to work as a sewing machine operator.
After all, Chen Yansen's benefits and punishments for his employees were equal. If he took money and it was found out later, the big boss would not show any leniency.
Every year, quite a few former colleagues are sent to prison by the internal risk control department. Many of them are studying in Shenzhen prisons. Hu Dexiang doesn't want to suffer like that.
Helpless, Wang Chuanfu could only sigh and instruct his subordinates to speed up the rectification to avoid losing the order.
He can tell whether earning 2 billion less or 100 million less is more important.
No one expected that the first major thing Senlian Group did in 2015 would be to rectify its own suppliers and contract manufacturers.
Some factories, defying the odds, tried to pull strings and plead for leniency, only to be kicked out of the supply chain the very next day.
Soon after, news came that Senlian Group had found a new partner who offered money, orders, technical support, and free process training.
Although the new partner lost controlling stake, they gained a new, risk-free way to make money.
After Senlian Group published its hotline and email address for reporting violations, workers began reporting any upstream or downstream partners that failed to pay overtime or whose hourly wages did not meet standards.
In just one week, dozens of factories were in a mess: some complied and voluntarily raised wages and improved working conditions; others were kicked out, and the vacated business was quickly taken over by new companies.
For Chen Yansen, this series of operations has resulted in an additional 30,000 to 40,000 employees and hundreds of thousands more humanitarian contributions each year.
When the remaining suppliers realized that Chen Yansen was serious, they immediately became obedient.
Some factory owners believed that Chen Yansen wanted to take control of the company, so they simply brought the equity transfer agreement and went to his factory to ask for a takeover.
As a result, Senlian Capital has more and more factories under its umbrella!
(End of this chapter)
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