Chapter 239: The Tech Edge Pursuit

Two days later, Yang Congxin returned from his business trip to the capital city, bringing two technical colleagues with him.

That same day, Xu Zhiquan organized a closed-door meeting and had Li Rui drive to pick up Xu Chen from the town and bring him to the factory.

……

In the Chenfeng Technology Park’s main conference room of the comprehensive building.

When Xu Chen entered the meeting room, over a dozen people were already gathered inside.

Besides Xu Zhiquan and Fang Jun, the rest were key technical staff from the factory.

Several mechanical blueprints were projected on the screen, and Yang Congxin was explaining them to everyone.

He went into great detail, and the technical colleagues nodded frequently in agreement.

Xu Zhiquan, Fang Jun, and Xu Chen clearly struggled to follow along.

Midway, Xu Zhiquan interrupted a few times, asking questions, so Yang Congxin reorganized his thoughts and used simpler terms and descriptions.

Sitting in the back row, Xu Chen got a rough idea of the situation.

What Yang Congxin brought back was the latest motor technology from the Chinese Academy of Sciences’ Physics Institute, roughly called the ‘Brushless DC Hub Motor’.

This motor technology had been successfully tested in the lab, and Yang Congxin had verified the prototype, but it hadn’t been commercialized yet.

Compared to the mainstream motors used by electric vehicle factories on the market, this technology had two core advantages.

First, it produced almost no noise, making the ride extremely quiet.

Second, it required virtually no maintenance, with a lifespan over three times that of conventional brushed motors.

Xu Chen didn’t know much about the technical details, but as Yang Congxin explained, memories from his past life flickered in his mind.

If he remembered correctly, in his previous life, an electric vehicle manufacturer had acquired this technology exclusively and used its quiet operation and longevity as unique selling points to quickly capture the market.

From Yang Congxin’s account, this motor technology was still held by the Chinese Academy of Sciences and hadn’t been acquired by any electric vehicle factory yet.

He wasn’t sure if this was due to timeline changes from his rebirth, but it clearly presented a major opportunity for Chenfeng Electric Vehicles……

Once Yang Congxin finished his explanation, Xu Zhiquan glanced back at Xu Chen, and the father and son exchanged a knowing look.

It was obvious that Xu Zhiquan recognized its immense value.

He took a drag from his cigarette and said to Yang Congxin:

“Director Yang, how do we partner on this?”

Yang Congxin adjusted his black-framed glasses and took a sip from his water cup:

“The Chinese Academy of Sciences needs revenue too—they’ve approached three or four electric vehicle factories, and we’re one of them.

But none have made a firm commitment yet……

From what I’ve gathered, the other companies they’re talking to are small electric vehicle factories in the Beijing-Tianjin area.

They’re all holding back, mainly because their current electric vehicles are selling well, and they think investing a few million in a motor is too costly……”

In 2006, the domestic electric vehicle industry was still in its early stages and hadn’t exploded yet.

Mainly, two regions had concentrated related supply chains.

One was around Tianjin in the north, and the other was around Wuxi in Jiangsu Province.

The electric vehicle production line that Chenfeng Technology introduced came from Jiangsu Province.

Back then, Xu Zhiquan had done his research—the production lines around Tianjin were somewhat outdated, almost like small township workshops.

At the same time, the city leaders had connections in Jiangsu, which is why they brought in the current production line……

Yang Congxin continued:

“I’ve discussed this deeply with people at the Chinese Academy of Sciences’ Physics Institute—they’re open to a few collaboration models.

The first is technology licensing, but it’s not exclusive, meaning they could license it to other manufacturers too.

The initial quote is two million……

The second is production and sales revenue sharing—no upfront fees, but for every electric vehicle we sell using their motor technology, they take 2% to 8% of the retail price.

This could be exclusive, but the sharing percentage is higher.

The third is buying the technology outright—we’d own the patent exclusively in China, so other manufacturers couldn’t use it.

That one’s the most expensive, with an initial quote of eight million……”

As soon as he finished, several technical colleagues gasped:

“That’s so expensive?!”

“Over a few million—research really pays well!”

“How many electric vehicles would we have to sell to make that back?”

……

Xu Zhiquan frowned in thought, then looked at Yang Congxin.

Having worked with Xu Zhiquan for a while, Yang Congxin instantly understood and said to the technical colleagues:

“Everyone, get back to work. Keep today’s discussion confidential.”

The colleagues agreed and left.

Now, only Xu Zhiquan, Xu Chen, Yang Congxin, and Fang Jun remained in the meeting room.

Xu Zhiquan handed Yang Congxin a cigarette:

“What’s your take on this, Director Yang?”

Yang Congxin lit his cigarette and took a puff:

“This motor is far superior to what’s on the market, but the price tag is steep.

The companies in Tianjin probably think the return on investment isn’t worth it……”

Xu Zhiquan didn’t respond and turned to Fang Jun instead.

Fang Jun scribbled some calculations on his notebook and said:

“The revenue-sharing option is out—we’d save upfront costs, but they’d add up hugely later.

At a 5% share on a 2,000 yuan vehicle, we’d owe them ten million after selling 100,000 units.

Based on our initial feasibility report, our annual production needs to hit at least 200,000 units……”

Yang Congxin, focused on tech, didn’t deal much with finances.

But doing a quick mental calculation, he was stunned……

Following Fang Jun’s logic, with annual production of one to two million units, the yearly tech sharing fees alone would hit one to two billion!

Only then did he realize the scale of Xu Zhiquan’s ambitions.

It hit Yang Congxin hard.

After all, in previous years, hitting ten to twenty million in output at Bright Factory was cause for celebration……

But Xu’s plans were on a whole different level.

……

Xu Zhiquan nodded and smiled at Xu Chen.

Xu Chen moved from the back row and said:

“Didn’t we mention the other day that we have a few million extra in the accounts?

Also, the two million from East Morning Star Advertising—Dad, you don’t need to rush paying it back; I don’t need it right now……”

Yang Congxin adjusted his glasses, clearly surprised.

Xu Chen’s words showed they were seriously considering the outright purchase option and even discussing funding.

Xu Zhiquan smoked thoughtfully and said:

“Eight million for the buyout seems inflated—there’s room to negotiate down.

I’ll reach out to the leaders; this connection came through them.

Not sure if there are any behind-the-scenes ties or if we can lower the price.”

Yang Congxin still seemed unsure:

“President Xu, is there risk involved? The price is just so high……

Those Tianjin factories haven’t even expressed interest.”

Xu Chen chimed in:

“That’s actually good news—they haven’t committed, so we have leverage to haggle the buyout price down.”

Xu Zhiquan nodded and added:

“While you were away, Yang, Xu Chen and I discussed our vision for Chenfeng Electric Vehicles and future plans.

From the market view, northern factories are mostly just assembling with no real tech edge.

For Chenfeng Technology to thrive with solid profits, we need to build our own tech barriers……

This motor from the Chinese Academy of Sciences could help us create a unique advantage—it’s like stumbling on a golden opportunity.

I’ll handle the funding; we’ve already sunk a lot in, so we can’t hesitate now.

When you spot a chance, grab it boldly—hesitation means missing out……”

Xu Chen: “Other factories not pursuing this latest motor tech is our market edge.

It’ll become our competitive strength……

Long-term, sticking to basic assembly won’t cut it.

We need to go high-end, high-quality.

If this motor tech offers clear advantages in noise and maintenance, it can be our key selling point for Chenfeng Electric Vehicles.”

Yang Congxin nodded with a smile:

“With you two on board, I feel more confident!

This motor tech from the Chinese Academy of Sciences is mature—I’ve seen the prototypes in the lab and their scaled production plans at partner factories; it’s all set.

Besides the buyout cost, the actual manufacturing expenses are similar to mainstream brushed motors……

I just worry about our company’s cash flow—the buyout is pricey, and the return might not justify it.”

Xu Zhiquan: “Tech is a long-term investment; we won’t worry about short-term returns……”

He paused, stubbing out his cigarette in the ashtray:

“Our first product for Chenfeng Technology has to succeed—no ifs, no buts.

With this advanced, competitive motor tech, our chances get even better.”

……

They quickly decided to go for the buyout of the motor technology.

At first, neither Xu Zhiquan nor Xu Chen paid it much mind, but upon review, it turned out to be a pleasant surprise—the Chinese Academy of Sciences had real gems.

The only downside was the high buyout price, putting pressure on Chenfeng Technology’s tight funds.

Xu Zhiquan contacted Wu Yongming that day to check his channels, mainly for negotiation, and waited for leader feedback.

Fang Jun started reallocating funds, possibly pulling from production and promotion budgets.

Luckily, at the beginning of the month, after dealing with Jin Guiyuan, they had a few more million in funds.

……

Yang Congxin added:

“The design for ‘Chenfeng Ice Power’ from the two design institutes and one company in Beijing is nearly done; we expect the plans next week.

And there are two more from the provincial capital……

We’ll organize an internal meeting to review them all.”

Xu Zhiquan nodded:

“Don’t forget to include Xu Chen—he’s the product planner for ‘Chenfeng Ice Power’ and needs to give input.”

Yang Congxin smiled: “Of course!”

Xu Zhiquan remembered something else and said:

“Are the technical experts from the production line arriving tomorrow?”

These experts were coming to oversee the line’s installation.

They’d handle setup, debugging, and training for the technical workers.

Yang Congxin replied:

“Yes, they’ll arrive tomorrow afternoon.

They’ll first inspect the factory facilities like water and electricity, and next week, we’ll start bringing in the production line.

Plus, the two experts will bring the technical documents—I’ve already assembled our top tech team to dive in right away.”

Xu Zhiquan nodded:

“How’s the accommodation sorted?”

Yang Congxin: “The administrative department set aside an apartment in the dormitory—two bedrooms and a living room, perfect for the two experts.”

Xu Zhiquan: “I’m swamped lately, so I’ll rely on you and Wu Yue to look after those experts.

Make sure we learn everything we can quickly!”

Yang Congxin: “Don’t worry, President Xu, I’ve picked our best tech people—they’ll pick it up fast.

Once the line’s debugged, training the other workers won’t take long.

Bright Factory’s team has a strong work ethic—we used to run things like a military operation, and now everyone’s full of energy!”

Xu Zhiquan nodded with a smile:

“Chenxin Nurseries just wrapped up a few projects, so the workers can head back to the factory.

It lines up perfectly with the production line arriving!”

He turned to Xu Chen with a joke:

“This’ll be tough on your Fourth Uncle—he’ll have to go out recruiting workers for the nurseries again!”

……

……

The next day, Xu Zhiquan and Yang Congxin flew to the capital city again, naturally to check out the motors at the Chinese Academy of Sciences.

Xu Zhiquan didn’t reveal his boss identity; he posed as another tech staff and went with Yang to get a deeper look.

They didn’t linger in the capital and hurried back that day.

After seeing it himself, Xu Zhiquan was even more convinced and told Fang Jun to start freeing up the funds.

Through Wu Yongming’s connections, he reached out to the Chinese Academy of Sciences again, using another city official identity to renegotiate.

The buyout price dropped from eight million to six million.

But Xu Zhiquan wasn’t satisfied yet; he had Yang Congxin hold off for a few days to push the price lower.

On one hand, funds were tight, and every penny counted.

On the other, through some channels, Xu Zhiquan learned that besides Chenfeng Technology, the other factories the Chinese Academy of Sciences contacted had no purchase interest.

So, there was still room to bargain.

……

The two technical experts from Jiangsu Province had arrived, and Xu Zhiquan made time to treat them to a meal.

They were practical tech types, straightforward without complications, treating this Tiancheng trip as just another business outing and eager to finish up and return.

……

Xu Zhiquan and Xu Chen had discussed before that within a few years, Chenfeng Technology and this Jiangsu company would become competitors.

For now, though, the other side looked down on Chenfeng Technology.

During the production line negotiations, they probably saw Xu Zhiquan as just a small-town boss, an easy mark who bought the line but likely wouldn’t make much of it.

And during his trips to Jiangsu, Xu Zhiquan had deliberately acted naive and impulsive, knowing nothing, just to ensure they’d sell the line without reservations.