Chapter 053: Red Sun Electronics Factory MBO

  Duan Haisheng returned to the factory, feeling depressed for a whole week, from the end of the Canton Fair to the National Day celebrations, Chiyang Electronics Factory was almost the same as before, and the halo of the Canton Fair's star had no effect at all.

  Signed a $55 million order, but the money didn't arrive in Chuyang's account.

  Foreign clients are settled in US dollars, and the total amount is entered into the national foreign exchange reserve center through the Guangzhou Fair organizer's general account. However, the RMB subsidy from the Beijing Foreign Trade Bureau has not been issued yet, with excuses and reasons being that it will be handled after National Day. These days are the 40th birthday of the motherland, and everything must give way to the celebrations.

  These orders total 1 million sets of learning machines, and an additional 200,000 boxes of game cards were ordered. However, the maximum annual production capacity of Chuyang Electronics Factory is not even one-third of this amount. Under current conditions, it can produce at most 400,000 sets per year. Chuyang is waiting for funding to purchase a production line and expand production.

  Duan Haisheng had more than a hundred people under him, but most of the workers were still on the industrial-grade circuit board production line, and only a small part of them were transferred to the learning machine production line. There were not enough skilled workers, the number of learning machines produced was insufficient, and there was no money allocated for it, so what's the point of talking about production?

  No wonder Duan Haisheng's mouth was so anxious that it had blisters all over, he was in a bad mood every day, and scolded whoever he saw.

  "Old Du! Let's go, it's time to eat. I'm treating. You're not young anymore and your heart isn't good, what kind of temper is this?" Yang Yun arrived at the factory with a few people and happened to see Duan Haisheng scolding workers in the workshop, so he hastily came over to persuade him.

  "Nobody compete with me! Today Jiang is paying the bill!" Jiang Yang dragged Duanshaisheng, laughing and pushing him out of the workshop.

  A few people came to the outside of Chiyang Factory, found a good restaurant, sat down, passed cigarettes, served tea, and started chatting.

  Everyone is familiar with each other, and there's just one more Zhao Yongping. Duan Haisheng is also familiar, this is an old opponent, nothing but a defeated general.

  Yang Yun spoke up: "Old Duan, what about the thing I discussed with you last time? Have you considered it?"

  Duan Haisheng was on high alert, glancing at Zhao Yongping and then at Yang Yun, but saying nothing.

  Yang Yun smiled: "Zhao Ge has joined Longteng now, he knows everything, you don't need to be polite."

  Duan Haisheng was shocked: "Director Yang... what play are you performing?"

  This enemy suddenly became a base friend, anyone would be shocked, although they used to point guns at each other, now they are still pointing guns at each other, but this is too dramatic.

  Yang Yun smiled and didn't explain: "Don't ask so much. Just say if you've thought it through or not. I heard from someone close to the East that your factory is still in a dull state, even opening for only half a day and taking breaks for half a day. The workers don't work but instead go watch the National Day ceremony? This bloated state-owned enterprise system, large numbers of parasites, low production efficiency, and people's lax attitude towards work, can't you feel the pain, can't you tolerate it?"

  Duan Haisheng sighed: "Am I not worried about this? Recently, I'm not worried about money, how can I have the heart to think about this? That Huang Beiyang..."

  "Hold on!" Yang Yun said: "The matter of dealing with this group of officials will be discussed later. Let's talk about the reform first, have you made up your mind? Mr. Duan, give me a straightforward answer!"

  Duan Haisheng nodded: "I've made up my mind, after National Day, when the production is going well, I'll prepare and sort out the materials for restructuring, and report it within this year."

  Yang Yun shook his head and said, "The two things of asking for money and reform are not contradictory. The order signed by Chi Yang is not given to you to make it difficult for him. Huang Bei-yang himself can't handle it. The money will definitely be allocated to you. This signing official is not in a hurry, why are you? As for the reform, we need to speed up now. I'll send you an assistant now, let Zhao join in and be your deputy."

  Duan Haisheng was a bit puzzled, Yang Yun had mentioned reform to him before, but hadn't brought up Zhao Yongping at all. This sudden addition, with an attitude that brooked no refusal, left him unprepared and somewhat irritated.

  Yang Yun continued: "Last time I just proposed a general direction, and the specific details were not thought out. Now I'll add a bit more, for myself, after the reform of Chiyang Electronics Factory, 30% is enough for me, you can give me more if you want, but if it's less, I won't do it, the rest is up to you to divide."

  Only 30%? Everyone can't believe it, the core strength of this combination is Yang Yun, a game supplier. Without Yang Yun's Longteng Entertainment Game Company, others are just flowers in the water and moon in the mirror, and it's impossible to talk about high added value and core competitiveness, and it's easy to be eliminated.

  Jiang Yang said: "Isn't 30% too little? General Manager Yang, your company's building is worth tens of millions, isn't it?"

  Yang Yun smiled: "The reform of Red Sun has nothing to do with Long Teng, I spent money and effort, all from my own pocket."

  Jiang Yang suddenly realized: "Director Yang, are you going to make Red Sun become Dragon's factory in the future? Wouldn't that be..."

  Yang Yun retorted: "What's different from now?"

  Also, now Red Sun is also required to spend money to buy Longteng's game, and each game card needs to be paid for. After the reform, it is still the same, paying money as usual.

  The difference is that now they are state-owned enterprises, restructured into private enterprises, and these people have made more money.

  No one would complain about having too much money. Generally speaking, it's better to change than not to change. As long as the orders keep coming in and the money keeps rolling in, who cares whether Red Sun is Dragon's factory or not? As long as Yang Yun still holds a share of the stock, Red Sun will be tied to Dragon, they're one family, everyone has common interests, this logic everyone understands.

  Yang Yun said: "Ugly words are spoken in advance. To tell the truth, whether Chìyáng is reformed and who operates it has nothing to do with me. I produce games, any company can buy my authorization for money, even Japanese people can do so, to be precise, Japanese people have already done so, our circus game has been sold to Sega Corporation in Japan, exported abroad, earning US dollars. However, I still hope everyone can unite and make money together. Now, in this room, we have the best domestic game manufacturers, the largest and second-largest producers, the largest distributors, what reason do we have not to cooperate? Why not tie all our interests together through Chìyáng's reform?"

  Jiang Yang was the most in favor of restructuring, nodding and saying: "Thin threads twisted into a thick rope are more powerful! If we form the strongest company domestically, we can firmly grasp this market and keep Taiwanese and Japanese people out."

  Zhao Yongping also came to a realization: "Indeed, after the Guangzhou Trade Fair, there were no more domestic learning machine manufacturers that could compare in scale. From now on, we'll be facing off against Taiwan's Little Genius, as well as Japan's Sega and Nintendo. We need to have a long-term vision and not just focus on the domestic market."

  Duan Haisheng initially agreed with the reform, but after Zhao Yongping joined, the nature of it changed.

  Why should the manufacturer cooperate with Zhao Yongping when game manufacturers and distributors are all unique? What position does Zhao Yongping put Duan Haisheng in after joining in?

  Yang Yun made it clear that he was smiling and advising: "Old Duan, don't worry, after the reform, you will still be the factory director, and Zhao Ge will be your deputy. We will eventually go abroad to fight against foreigners, can your old arms and legs withstand the toss? Let you fly to Europe and America every day, 360 days a year on business trips, can you bear it?"

  Du Hai's neck was stiff, his eyes wide with anger: "I can take it! I'm only 52 years old!"

  Cut off

  A group of people sneered and burst out laughing.

  Now that everything has been said openly, there are no more obstacles. Everyone can express their thoughts and good strategies freely.

  Yang Yun has already stated that his Longteng will absolutely not be added, he holds 30% of the shares in Chiyang, just playing the role of Dinghai Shen Zhen, indicating that everyone is working together with integrity.

  If he doesn't want to give in, others will be even more worried. If Yang Yun were to join another camp one day, they would be left looking foolish. And by joining this 30%, Yang Yun wouldn't be at odds with himself, would he?

  Soon, everyone reached a consensus. Although the domestic state-owned enterprise reform is still in the pilot and observation stage, as long as they want to do it, there is still a way. In the end, everyone decided to refer to some European and American countries' experience and strive to let them complete the management layer acquisition MBO.

  MBO is a very complicated matter, involving financing lenders, borrowers, auditing, backdoor listing, hiring third-party intermediaries, setting up management teams and so on.

  These things, Yang Yun only took out money to borrow and didn't care about anything else. The company's operations were all handed over to Zhao Yongping and others to do, he tried his best to invite Zhao Yongping to join, just for this purpose.

  With Zhao Yongping joining, he fought outside, Yang Yun could guard his own Longteng Company's one mu and three points of land, focus on making games, and put his main energy in the struggle with foreign game manufacturers.

  Of course, Yang Yun had another dream in his heart, that is, self-production and self-sale, mastering the market and technology in his own hands.

  But considering the actual situation in 1989, this idea was eventually dispelled by Yang Yun himself. Self-production and self-sale, all the money earned by oneself, is good but difficult to operate without national support, it's absolutely a tough journey. For example, they couldn't even get into the Canton Fair, how could they possibly get orders worth tens of millions of dollars? Even if they made a lot of US dollar foreign exchange through other channels, relevant departments would follow closely behind, asking for kickbacks and causing endless trouble.

  Unless he has no other choice, he won't take this step and it's better for him to focus on making games and building his gaming empire. When the domestic policies are clear, he can spend a little money to gain control, so as not to be criticized by others.

  After all, in this strange country of China, the variables are too great. Offending the government is a dead end, Yang Yunke never thought of betraying his country, he can only survive in the cracks.

  The MBO acquisition is going smoothly, and Yang Yun returns to the Longteng headquarters, but he can't calm down and starts making trouble again. This time, his target is still Nintendo!

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