The cooperative companies at the conference site all have their own minds. Some of them, like Jiahang, produce their own products and hand them over to OEMs for processing, while others design, process and sell them themselves.
Most of the companies that produce, process and sell their own products are "small workshop" companies - such as chassis manufacturers or keyboard manufacturers.
The ultimate reason why they do this is to save costs.
Now Chen Xiao has given them an opportunity to either integrate into Changtian Technology's production chain.
Or give up this opportunity and continue to do it alone.
As far as small manufacturers are concerned, they are extremely lucky to be able to join the entire Changtian Technology production chain. They completely agree with Chen Xiao's approach.
The purpose of running a company is to become bigger and stronger. If you don't have the strength, then join a company with stronger strength.
As the most important protagonist in the entire production company, Li Da is completely on Chen Xiao's side.
Because Li Da himself has done OEM and design.
He knew very well that both were indispensable to Changtian Technology.
The establishment of an OEM factory can ensure the security of the supply chain and attract a large number of OEM companies to join, ensuring that it becomes bigger and stronger.
In addition, it can completely separate out a large part of production, allowing leading companies to concentrate on scientific research.
Li Da stated: "Angda will spin off all its MP3 and motherboard production departments and merge them into Tiangong Technology. This part of the production capacity will not only be able to produce PC motherboards for Shenchuan, but also other PC companies."
This is Li Da's specialty.
Li Da said that most companies agreed, but the specific partners needed to be discussed.
After a day's meeting, most people agreed with Chen Xiao's decision.
Tiangong Technology Company was born in Jiangzhou.
Zhou Linghua has rich experience in factory production, and Zhou Linghua serves as chairman and CEO.
Tiangong Technology divides its equity into A shares and B shares.
A shares only have voting rights but not dividend rights, while B shares only have dividend rights but not voting rights.
Among them, Changtian Technology invested 100 million for the construction of Tiangong Technology Industrial Base, occupying 100% of Class A shares and 60% of Class B shares.
Angda merged all the company's production departments into Tiangong Technology and held 20% of Class B shares.
The remaining 20% of Class B shares will be divided among several other hardware companies according to the production ratio.
Every year, the company adjusts the proportion of Class B shares for different franchised factories in the next year based on different production ratios and profits.
For factories that are unable to make a profit or whose profit level does not reach the company's average level, Changtian Technology will provide guaranteed support.
The company has agreed that all production factors (equipment, manpower, technology, etc.) belong to the company, and all production tasks and plans of subordinate factories are decided by Tiangong Technology.
Under this agreed model, Tiangong Technology is more like a conglomerate company with close production connections but flexible profits.
It not only helps to optimize the production resources of major franchise companies, but also compresses production costs to the maximum extent and stimulates everyone's vitality.
It is true that Chen Xiao has a technological system, but when it comes to running a company or doing physical operations, just having a system is not enough.
Chen Xiao is also crossing the river by feeling the stones, taking one step at a time.
In Chen Xiao’s conception of Tiangong Technology.
When Tiangong Technology was first founded, it was definitely a relatively loose consortium due to various reasons such as production factors and customer channels.
When the future production chain is rolled out, the diversification of OEM products will be comparable to Foxconn.
Chen Xiao will definitely optimize the company's internal structure and tighten his control over the company.
Those franchised factories are not individual individuals, but members of units affiliated to the entire company.
After the establishment of the company, Changtian Technology also announced relevant news to the public in a timely manner.
This news has a moderate impact on the entire industry.
The current output of the foundry established by Changtian Technology and Tiangong Technology can only meet the needs of Shenchuan. Compared with Foxconn, which entered the mainland in 1988, and Jabil, which entered the mainland in the 1990s, it is still far behind.
And in terms of customers, Foxconn’s customers include not only domestic companies such as Lianxiang, but also international brands such as Dell, IBM, and Toshiba.
The customer levels of both parties are not on the same level.
Many people believe that Changtian Technology established the foundry just to save its own production costs, nothing more.
So I didn’t pay much attention to this news.
After Lian Xiang saw the news, he felt a little bit amused.
It is true that doing your own OEM can indeed save costs, but how much can you save?
He felt that Changtian Technology did not spend its money and energy in the right places.
Lian Xiang thinks his method is quite good.
You don’t need to handle mass production by yourself, and you don’t need to handle scientific research by yourself. You can just do sales.
Low costs, high profits, huge profits!
For the trade and engineering department, of course trade comes first, production comes second, and scientific research comes third!
Changtian Technology happened to make a mistake, ranking first in scientific research, second in production, and third in sales.
What puzzles Lianxiang the most is that although sales are obviously the most profitable, Changtian Technology has handed over the core sales to Shenchuan...
I can’t figure it out!
However, Lianxiang is still struggling with whether to use Changtian Technology’s hardware and operating system.
Others don't take it seriously, but Jiangzhou takes it seriously.
Because the establishment of a foundry means the need for production.
Not to mention anything else, Shenchuan is expected to ship 1 million units next year, which is a big deal for inland cities.
Jiangzhou really wants to get this piece of cake produced by Tiangong Technology.
Therefore, the relevant leaders in Jiangzhou almost took turns to bomb Changtian Technology.
This time Chen Xiao had already made up his mind about this.
After the last land dispute, Chen Xiao has lowered Jiangzhou's status from Changtian Technology's layout.
As an inland city, Jiangzhou has its own advantages, such as cheap land and cheap labor costs.
But it also has its own disadvantages - the industrial chain is not centralized, logistics costs are high, and it is unable to attract high-end production talents, etc.
Therefore, Chen Xiao decided to place the production of computer cases, keyboards, mice, power cords and other components, as well as the OEM production of MP3 players in Jiangzhou.
The reason for this is that Jiangzhou has a foundation in this area.
Especially for MP3 production, Changtian Technology already has a factory here, but now it needs to expand its scale.
As for the production of chassis, keyboards, mouse power cords, etc., Jiangzhou has ready-made factories. In the past, companies in Yangcheng and surrounding areas just transferred the equipment directly.
Even so, Jiangzhou is already quite happy.
The first batch of fixed investment in Tiangong Technology's production base in Jiangzhou can reach 300 million and create tens of thousands of jobs.
This will be of great help to boost Jiangzhou’s GDP and create employment in Jiangzhou and surrounding areas.
The managers of Jiangzhou are happy! They immediately start implementing relevant matters.
This decision is also a decision that changes the economic development pattern of Jiangzhou.