Chapter 103: The Massive Factory of Three Hundred Thousand Workers

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Many prominent figures from both home and abroad hurriedly departed, but Mr. Guo, a distinguished gentleman from the Treasure Island, was asked to stay by Li Fu. This was because a highly significant collaboration required discussion with Mr. Guo. The Virtual Machine from Fuyun Technology Group was poised for rapid large-scale market release, and this endeavor was impossible without Mr. Guo’s cooperation.

Inside a spacious conference room in the headquarters building of Fuyun Technology Group, Mr. Guo sipped tea as he gazed out at the bustling Sanjiang Town. At this moment, Sanjiang Town was undergoing a massive construction boom, vibrant and full of energy, with towering skyscrapers rising one after another from this once remote mountain village.

“This is the speed of China’s rise—soaring beyond imagination. In the future, China will undoubtedly dominate the world!”

Though Mr. Guo hailed from Treasure Island, the majority of his business was on the mainland. Since the era of reform and opening up, he had been steadily developing there, witnessing firsthand the earth-shaking transformations occurring every moment across China, bearing witness to the rise of this Eastern dragon.

A profound sense of pride welled up within him. Their generation of Treasure Islanders was not young; no matter where or when, they took immense pride in being descendants of the Yan and Huang Emperors, never daring to forget their roots, always mindful of their identity.

Over the years, Mr. Guo’s ventures on the mainland had flourished rapidly. He owned dozens of bases across China, undertaking contract manufacturing for many globally renowned electronics brands, providing employment for millions. Though his factories faced issues such as excessive labor intensity, extended working hours, and high pressure, these did not diminish the contributions his enterprises had made.

However, as China’s demographic dividend gradually waned, Mr. Guo’s vast contract manufacturing business found itself at a crossroads. With a future fraught with uncertainty, he had been making intensive cross-sector investments—pivoting toward industrial internet, aggressively entering the new energy sector, relocating factories to regions with cheaper labor such as Southeast and South Asia—all of which underscored his deep anxiety about what lay ahead.

Compounding matters, Fruit Corp had become the world’s largest smartphone manufacturer and biggest electronics enterprise, increasing Mr. Guo’s enterprises’ dependence on them. More than half of his business now hinged on Fruit Corp, forging a relationship of mutual “honor and disgrace.”

Yet in this partnership, Mr. Guo’s profits were meager. The contract manufacturing fee for a single Fruit phone was extremely low—barely 25 yuan per unit—hard-earned money accompanied by much criticism. His companies’ annual profit margins were slim, less than five percent. Contract manufacturing was undeniably a challenging business.

He had long sought transformation but had yet to succeed. Upon learning of the Virtual Machine, he had come to Sanjiang Town without hesitation. His purpose was clear: he saw the enormous wealth latent in the virtual world and desired a piece of this vast cake.

“Fuyun Technology Group must have kept me here mainly because of the contract manufacturing. Only my enterprises can quickly assemble such large volumes of electronic products. Since the Virtual Machine’s debut, Fruit phone sales have plummeted and barely move off the shelves. Without Virtual Machine orders, my factories will be doomed.”

Mr. Guo understood this perfectly. The primary reason for this visit was to secure the contract manufacturing rights for the Virtual Machine. Without sufficient products to assemble, his vast factories would collapse imminently. This was an urgent matter.

With Fruit Corp’s orders plunging, many contract manufacturers were already out of work, forced to seek new business to stay afloat. Though corporate transformation was important, it was not yet a matter of life and death.

“I hope this time we can reach a favorable agreement. Fruit Corp was ruthless before, giving us little say. If we can also collaborate with Fuyun Technology Group in other areas, the prospects for transformation will brighten. Fuyun is a truly high-tech company; data shows that their monthly revenue from AIDS treatment drugs alone reaches 20 billion yuan, with extremely high profit margins. Now, with this epoch-making Virtual Machine product, they are poised to become the world’s top tech enterprise.”

Mr. Guo had already set his goals for the negotiation with Fuyun Technology Group: to raise contract manufacturing fees as much as possible and to explore cooperation in other fields to lay a foundation for corporate transformation.

At that moment, Li Fu and Fang Zheng entered with a group of a dozen smiling individuals, pulling Mr. Guo back from his reverie.

“Mr. Guo, apologies for keeping you waiting.”

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“Mr. Li, no need for formalities. It is truly a rare honor to meet and discuss matters with a genius of the century like yourself.”

After some polite exchanges, they sat face to face.

“Mr. Guo, I’ll be straightforward. Fuyun Technology Group intends to entrust the contract manufacturing of the Virtual Machine product to you. Are you interested?”

Li Fu was always efficient, cutting straight to the point after brief pleasantries.

“Of course, no problem. We are very eager to cooperate with your esteemed group.”

Mr. Guo nodded with a smile; this was precisely what he hoped for. Without new orders, his factories would soon collapse.

“Mr. Guo, how do you propose calculating the contract manufacturing fees?”

When it came to price negotiations, Li Fu nodded to Fang Zheng, entrusting him with this part. Fang Zheng was a seasoned veteran, very adept in such matters.

“The fee depends primarily on the number of product components, assembly complexity, and most importantly, the volume of units to be manufactured.”

Mr. Guo naturally employed some strategy when discussing such a sensitive topic.

“Our Virtual Machine product is simpler than current smartphones, with fewer components and easier assembly. I’ve already had detailed information sent over to you.”

“As for production volume, we expect at least ten million units annually. If our core equipment capacity expands, annual output could reach over a hundred million.”

Fang Zheng’s words were no exaggeration. The Virtual Machine required no screen, only a core bio-sensing device. The total number of parts was fewer than those in current smart devices, assembly was simpler, with the crucial part being the bio-sensing technology.

“Hmm, if your annual manufacturing volume is under ten million units, our quoted price is 150 yuan per unit. Between ten and thirty million units, it’s 130 yuan per unit. For volumes exceeding fifty million units, the price drops to 110 yuan per unit.”

After careful study with his company’s personnel, Mr. Guo gave a quote far higher than Fruit Corp’s contract manufacturing price for their phones. Outsiders would find it difficult to know the precise terms of his deal with Fruit Corp, only able to estimate.

“Mr. Guo, to my knowledge, this price is quite high. We’ve engaged with other contract manufacturers, and yours is the highest offer.”

Fang Zheng shook his head with a smile, conveying that he was well aware of the situation, warning against expecting exorbitant demands.

“Business is about bargaining. Our price is truly higher than others, but we offer faster speed, guaranteed quality, and sufficient manufacturing capacity. Other contract manufacturers simply cannot match us. A higher price is justified.”

Both were seasoned veterans; Mr. Guo smiled without flinching, explaining the strengths of his enterprise.

“Mr. Guo, I can accept the price, but I have a condition: I hope your company can build a large-scale contract manufacturing plant here in Meijiang County.”

Li Fu watched their bargaining and initially hesitated to speak but then decided to voice this request. For him, a Virtual Machine sold overseas at ten thousand US dollars cost little to produce, so paying a bit more for contract manufacturing was inconsequential.

Haggling was the nature of business, after all. The true art of commerce lies in securing desired services at the lowest possible cost.

Yet, when Li Fu considered his hometown’s development, he thought of asking Mr. Guo to establish a large factory in Meijiang County. A plant employing hundreds of thousands could provide local jobs, reducing the need for residents to seek work elsewhere. The resulting ancillary industries and supporting enterprises could potentially create employment for millions.

This would be crucial for Meijiang County’s growth. Spending a bit more to boost his hometown’s economy was a deal Li Fu was willing to make.

“Hmm, of course that’s no problem. But the future business of this factory will depend entirely on your company’s patronage.”

After careful calculation, Mr. Guo nodded slowly. Investing in a large factory was costly, and since he already owned many large-scale plants, there was no pressing need to open another on the mainland.

However, Li Fu might well be the key figure in the survival of his business. Without orders from Fuyun Technology Group, his enterprises were doomed. Therefore, he had to consider this request seriously.

What truly tempted him was Li Fu’s willingness to meet his proposed contract manufacturing prices. At those rates, his business would thrive, profits would rise substantially, and if the Virtual Machine’s annual output reached hundreds of millions, the earnings would be very considerable.

“Then, here’s to a pleasant cooperation!”

Soon after, news spread rapidly across Meijiang County: renowned contract manufacturers, both domestic and international, would invest in building a massive factory employing three hundred thousand people to produce Fuyun Technology Group’s Virtual Machines.

PS: Thanks to Shang Li Shen 1000 for the reward, and gratitude to Fei Ying, Shang Nan 001, Reader 2017226***58591, Reader 201712***3380, Yang Shijin, Book Lover, Hidden Blade of Destruction, Reader 201706***1175 for their support.

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