Siheyuan: My wife is Xu Huizhen

Chapter 499 Can we build some OEM factories in the mainland?

"I sincerely hope that our great motherland can help me develop OEM business in Yangcheng!"

Hearing this, the leader was shocked and asked:

"OEM? What does that mean?"

Seeing this, He Yuzhu slowly explained the concept of OEM in detail, and then specifically cited an example to tell how he used to produce those advanced CNC lathes for Moreno Company.

After this explanation, the leader finally understood what OEM was all about.

So he continued to ask:

"Then please tell me in detail how this business is operated."

At this time, He Yuzhu thought for a while and replied:

"My idea is this. First, I hope we can build a batch of factories on a large scale. Next, I will provide the relevant core technology and various equipment required for production, even all the raw materials, etc."

Having said this, he paused for a moment, observing the leader's reaction, and continued:

“Of course, the cost of these equipment and raw materials will be converted into costs according to certain standards and temporarily recorded in the accounts.

The newly built factory will be responsible for effectively managing the workers and ensuring that the entire production process proceeds smoothly.

Once they have successfully produced finished products that meet my quality requirements, they will sell them to me at a relatively favorable wholesale price.

Finally, I will transport these goods to Hong Kong and promote them to the market through various channels for sale.”

After listening to He Yuzhu's explanation, the leader remained silent and seemed to be in deep thought.

After a long while, he slowly raised his head and said thoughtfully:

"If you do this, aren't you just like the capitalists?"

"How can this be the behavior of capitalists? This is obviously a normal business behavior! Let them be responsible for production here, and then wholesale to me."

The senior leader said: "Your idea... To be honest, I really can't make up my mind for the time being. After all, this is a big deal. I have to consult my superiors first."

Hearing this, He Yuzhu couldn't help but become a little anxious, and quickly asked:

"How about we put it another way. Can I purchase a batch of goods directly from the mainland and then ship them to Hong Kong for sale?"

After hearing this, the leader answered without thinking:

"Of course, no problem! Isn't the purpose of holding the Canton Fair to promote and sell all kinds of goods?"

Back to the great victory of the War to Resist U.S. Aggression and Aid Korea, the Russians finally began to seriously examine the powerful forces within the country.

Prior to this, those purchasing plans that had been held tightly and refused to be released were finally released completely.

As a result, the famous 156 projects followed.

Although the Russians did provide our country with a lot of advanced production technologies, these were not free aid.

In fact, each engineering project was secretly marked with a corresponding price, and the total amount of all loans and interest payable was as high as 14 billion new rubles!

Each ruble can be converted into 3.6 yuan at a certain exchange rate, and the total value of this batch of technology is a staggering 52.56 billion yuan!

Ever since those old Russians ruthlessly tore up the contract in the distant 60s, they have been impatiently urging our country to repay the debt as soon as possible.

It is now the 61st year, but so far we have only repaid a very small part of the huge amount of money we owe the Russians. There is still a long way to go before we can completely pay it off.

At this moment, He Yuzhu suddenly said:

"Let's look at this matter separately. If I come here with US dollars to purchase various goods, I wonder if you will sell them to me?"

Hearing this, the big leader answered without hesitation:

"That's absolutely no problem, I can sell it to you!"

Then, He Yuzhu continued to ask:

"In that case, if I want to buy something like transistors, would you sell them to me?"

Faced with this question, the leader also responded decisively:

"That's for sure!"

After receiving such a positive response, He Yuzhu then put forward an unexpected point of view:

"If that's the case, then why did you go to the leader to discuss this? Why don't you just arrange to produce enough transistors and sell them to me directly?"

For a moment, the big leader was speechless and didn't know how to answer.

Indeed, as He Yuzhui said just now, he is responsible for providing the necessary raw materials, advanced technology and related equipment, etc., and then purchasing all the products successfully produced using these resources.

At first glance, this approach seems a bit like the methods and practices commonly used by capitalists, but after He Yuzhu's in-depth and detailed analysis and interpretation, one can't help but feel that perhaps one is really thinking too much.

He Yuzhu smiled and said firmly:

"Boss, you are really worrying too much! No matter what, as long as you can successfully produce high-quality transistors and advanced CNC lathes, I will definitely take them all!"

Then he added:

"However, in addition to these core products, I also plan to purchase some other related goods. After all, our domestic production costs do have certain advantages compared to Hong Kong."

Hearing this, the leader couldn't help but fall into deep thought. After thinking for a while, he asked:

"Okay, let's put this aside for now. Just now you mentioned that you wanted to build a factory here. What exactly is going on?"

He Yuzhu explained confidently:

"Leader, think about it, all of this is to ensure that the goods can be efficiently turned over!

If you build a factory in Beijing, and then have to transport the goods from there to me, it would be so troublesome! Nowadays, the speed of trains is quite slow, averaging only about 20 kilometers per hour.

The distance between our two places is 1,890 kilometers. If we rely solely on transportation by train, it will take 75 hours!

Not to mention the huge delays this long transportation time will cause, the freight on the train alone will add a lot of extra expenses, right? "

At this point, He Yuzhu paused for a moment, observing the leader's reaction. Seeing that the other party nodded slightly in agreement, he continued to elaborate on his thoughts:

"So, in my opinion, it would be better to set aside a piece of suitable land near the port to build a new transistor factory and lathe factory. In this way, not only will my procurement work become more convenient and smoother, but the subsequent transportation links will also be able to greatly improve efficiency and reduce costs!"

After listening to this analysis, the leader nodded thoughtfully and responded:

"Well, what you said does make sense..."

He Yuzhu said seriously:

"Besides, think about it, the grand Canton Fair is held here every year! If we build a factory here, wouldn't it be much more convenient to deliver the products? Besides, this CNC lathe is not something that can be manufactured by just any country. There are only three or four countries in the world that have such production capabilities!"

Hearing this, the leader's frown gradually relaxed. After thinking for a moment, he nodded slightly to show his approval:

"Well, you do have some truth in what you say."

Seeing that the leader had softened his stance, He Yuzhu struck while the iron was hot and continued:

"In that case, I have a lot of ideas for this new factory! First of all, we must pay close attention to the training of the workers and not be careless at all; secondly, we need to formulate extremely strict rules and regulations for the daily management of the factory. We will never allow any defective products to leave the factory, so we must establish a complete set of high-standard and perfect quality management system."

After hearing this, the leader nodded repeatedly and agreed:

"Don't worry about that. Producing high-quality parts is undoubtedly our top priority!"

After receiving the assurance from the leader, He Yuzhu nodded with satisfaction, but then added:

"But that's not all! I plan to introduce more advanced technologies and sophisticated equipment in the future, and will also place large orders to purchase the necessary raw materials, etc."

Faced with He Yuzhu's series of proposals, the senior leaders agreed to them one by one without hesitation and promised:

"Okay, no problem! I will definitely do my best to assist you in coordinating all aspects when the time comes."

He Yuzhu paused for a moment, as if he was sorting out his thoughts in his mind, and then continued:

"In addition, I also hope to obtain some of the existing domestic production technology data, and designate special research projects in certain key areas. But don't worry about the cost, all related research funds will be borne by me."

There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!

The big leader waved his hand and answered generously:

"Haha, no problem, no problem. Everything will be done as you say! As long as it is beneficial to the construction of our factory, I will find a way to help you coordinate and solve it no matter what the conditions are."

He Yuzhu returned to the factory exhausted, with a heart full of plans and aspirations.

He is well aware that he has an important mission to shoulder after returning this time - to solve the problems faced by the current production process and to promote new breakthroughs in scientific research projects.

Although I have certain R&D capabilities, my personal strength is limited after all. It is obviously unrealistic to want to cover everything and devote all my energy to work.

For He Yuzhu, life is short, and enjoying life while you can is the lifestyle he truly desires.

“It would be great if we could get the core technology of radio and television first!

Especially those key technologies related to circuit boards, etc." He Yuzhu thought to himself.

You should know that many domestic factories and research institutions have already produced dozens of radios of different specifications and models.

This is undoubtedly a valuable asset. If we can integrate all these scattered materials, learn from each other, and then combine our own advantages to innovate and improve, then the production of unique and high-performance radio products will be just around the corner.

However, things did not go as smoothly as expected. They had originally hoped to obtain all the technical support needed for radio production from Jimi Company, but they did not expect that the other party was only willing to provide some accessories, and the most core technology for producing transistors was kept strictly secret, with no intention of revealing it at all.

Fortunately, by taking on the OEM business for Moreno Company, He Yuzhu finally mastered the production process of transistors after going through hardships.

This way, he could let go and work hard, carefully conceive and design his own brand of radios, and then quickly capture a large market share with its unique selling point.

It is worth mentioning that as early as 1958, the first TV station in the country was successfully built and started operation.

Since then, many large and small TV stations have sprung up all over the country.

With the vigorous development of the television industry, people's demand for audio-visual entertainment equipment will inevitably increase.

For He Yuzhu, this is both a rare opportunity and an unprecedented huge challenge.

How to gain a foothold in the fierce competition and lead the trend has become a difficult challenge that he needs to overcome urgently.

In the vast land of China, there are also large-scale TV factories in the two prosperous cities of Beijing and Shanghai.

These factories are not only able to produce 8-inch black-and-white televisions, but can also produce similar products in a slightly larger size of 9 inches.

At this moment, the country has successfully mastered the relevant production technology of cathode ray tubes and televisions, and has achieved remarkable achievements in this field.

Hearing this, the highly respected leader nodded slightly, expressing his agreement:

"No problem at all. I will provide you with all the detailed information about these technologies without reservation and free of charge."

Faced with such generous support, He Yuzhu was filled with gratitude and hurriedly thanked:

"Thank you, leader!"

The big leader smiled and responded:

"You're welcome. You just need to work hard with all your heart and feet on the ground. If you encounter any difficulties or need anything, just tell us and we will do our best to help you."

After thinking for a while, He Yuzhu finally couldn't help but raise the doubts that had been in his mind for a long time:

"Before this, why didn't our country arrange for someone to go to Hong Kong to carry out business activities? After all, that's where business is booming."

However, the leader did not directly answer his question, but asked:

"Don't you think anyone has ever done this?"

He Yuzhu said truthfully:

"To be honest, I have asked around, but the information I got is that there is no such arrangement in Hong Kong."

"We don't have any right now. We only purchase some items through the Rong and Huo families."

The big boss said with some sadness: "I have sent people to start companies before, but they were always defeated by some people and ended up in a hurry."

Thinking that it was impossible to open a company in Hong Kong without military suppression, He Yuzhu suddenly understood.

Foreigners are very hostile to the mainland. If they find out that they are representatives of the mainland, they will definitely try every means to bring them down.

The most direct and effective way is to send out a few warriors, defeat them, and take over their company.

The big boss reminded: "Although you are a strong martial artist, you still have to be careful to avoid being tricked by the other side."

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