Rabbit is still implementing a planned economic system, and market reforms have just been proposed.

Even the current pilot projects of Bao'an County (Pengcheng) and Baidao County have just been determined, and no official documents have been issued yet. But this does not delay the rabbit government from making preparations first.

The next day, Secretary Zhang, the leader of Guangdong Province, visited Luo Nianzhong under the recommendation of the central government.

"Is this the same as processing with supplied materials? You provide the equipment and raw materials, we provide the labor, and then we get the cost of production?"

Luo Nianzhong shook his head and explained, "It's not the same. We won't produce any equipment. We will give you product samples and detailed information, and then you will produce our orders with quality and quantity. We will give you a product for each product." You make a quote, and this is your profit.

You need to bear the initial investment, and then earn back the cost from the profits from the OEM contract.

Of course, the current OEM products are mainly welding and assembly, and the investment in equipment will not be much."

Secretary Zhang thought for a while and asked, "But this also requires building a new production line specifically for your products. This money is not something that any factory can afford casually."

"Of course, this is also a threshold set for OEMs. We cannot cooperate with small companies without any strength and foundation. As for large manufacturers, we can use our OEM contracts and the reputation of the factory itself to get bank loans."

The rapid update of electronic products means that the production line depreciates quickly. If production equipment cannot keep up with the speed of replacement, losses will occur as various costs increase.

To put it bluntly, foundries are just making hard money, which is why Luo Nianzhong wants to outsource products.

Developed countries look down upon these, but the current motherland is more than suitable and what they need most.

The first is technical issues. Through OEM products, they can quickly obtain technical updates. Then there is foreign exchange. Luo Nianzhong’s orders are settled in US dollars or Hong Kong dollars, which is what the motherland needs now.

"Moreover, if the quality of some raw materials meets our standards and the price is right, we can purchase them from Rabbit."

Facing Luo Nianzhong's increase, Secretary Zhang's eyes lit up. Not to mention contract processing, even purchasing some raw materials can significantly increase the province's export share.

Supply chain manufacturers want orders? Then are you considering building a factory here?

Don’t build it? Sorry, the shipping fee is too high. We decided to support local businesses nearby.

"Mr. Luo, can I ask about your company's specific OEM costs? And the quantity required for OEM." Deciding whether to do this thing or not, and with what determination to do it, also depends on the profit.

"Of course, take our current flagship product, the arcade machine, for example. Our initial plan is that each arcade machine costs US$10. As for the quantity, judging from our company's current orders, it will not be less than 300 million units per year."

Hearing this, Secretary Zhang took a deep breath and wanted to agree immediately.

300 million units per year, which is 3000 million US dollars a year, and this is just a single category. As Luo Nianzhong's company produces more and more types of products, he doesn't even dare to think about the profits.

The country’s foreign exchange earnings from exports this year are less than US$40 billion. Through OEM for Luo Nianzhong, plus the raw material manufacturers it drives, it is possible to create hundreds of millions of dollars or more in foreign exchange. What is the concept?

He also understood it before coming here. An Honor arcade machine costs around $13 to $15. But in Rabbit, the cost of the same work will not exceed $3.

Moreover, workers are paid only RMB. A project like this will make Guangdong Province a major foreign exchange earner, or even a leader.

Luo Nianzhong didn't know what he was thinking. If he knew, Luo Nianzhong would definitely laugh out loud.

Hundreds of millions of dollars? Who do you look down on? After a few years, it won’t be a problem for me to add a zero after you.

The two parties have finalized some details, but the specific contract has not been finalized.

There is no way, the specific reform document has not been issued yet. Secretary Zhang cannot make the decision on this matter. He needs to report it.

In the following days, Luo Nianzhong became the busiest person in the delegation. Not only was he invited to visit various factories in Guangdong Province, he also visited many furniture and building materials factories.

When they learned that Luo Nianzhong had a business like Home Depot in Beautiful Country, various leaders became even more enthusiastic and took him almost all over the southeast coast.

Luo Nianzhong even called Bernie after visiting a mahogany furniture factory in Dongyang.

On the phone, Luo Nianzhong told him the prices of these furniture and some decorative material factories he had visited before. After that, there was no more.

Bernie flew to Hong Kong Island overnight, and then was brought to Dongyang from Hong Kong Island by relevant personnel who had been waiting here.

Bernie, who had spent two days traveling, did not choose to rest after landing. He took Luo Nianzhong to visit a number of furniture companies accompanied by senior officials from the province and city.

When he left Dongyang, he left behind an intention contract worth more than 10 million US dollars. Originally this was against the regulations, but who made it Luo Nianzhong's business?

The top authority specifically gave the green light. As long as it is a project that Luo Nianzhong is interested in cooperating with, it will be handled on a special basis unless it involves special circumstances. This is also the reason why the Zhijiang Provincial Committee is so active.

This is all foreign exchange. Who is not in need now?

Bernie, who had tasted the benefits of furniture, forced Luo Nianzhong to visit some other companies that produce construction supplies. The shouting of OMG never stopped along the way.

Bernie and Luo Nianzhong said they had calculated that even with high tariffs, these products produced in Rabbit can increase Home Depot's profits by at least 30%, and some can even reach 50%.

The better news is that if you make a round trip from Hong Kong Island, the increased profit will double.

In this way, they can seize the market with lower prices. I believe that in less than a year, they will become a retail giant in the United States and then go public.

Luo Nianzhong said he was looking forward to this.

The Luohukou coast is the earliest road connecting Rabbit and Hong Kong Island, and it has very important historical significance.

Luo Nianzhong returned to Hong Kong Island from here. For this reason, the Guangdong Province also specially applied for a pass for the convoy of Muller and others who came to pick him up.

Under the warm farewell of all the officials, Luo Nianzhong left the rabbit in a car.

They have reason to be happy. This time, Luo Nianzhong's companies, not only Home Depot signed an order of more than 30 million US dollars, but also the foundry factory was approved by the superiors.

In the next half month, they will choose a suitable job in Bao'an for on-site renovation, and trial production will be ready in half a month. Of course, Luo Nianzhong will also send employees over for technical guidance after he returns.

In addition to these, Luo Nianzhong also reached a preliminary intention with the Ministry of Education. Funded by the Far East Group, it sponsors some top universities to jointly study topics of interest to both parties.

However, specific matters will be discussed later, and now we have just reached an intention to cooperate.

Luo Nianzhong's first rabbit trip was a fruitful one for him. He believes that when the policy becomes more open, he will gain even more.

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