Chapter 226: Not Like a String

Chen Chen still underestimated Shen Xin's ability. After understanding most of the situation of Guanneng Permanent Magnet, she felt confident that breaking bones was not Shen Xin's limit.

Companies like Guanneng Permanent Magnet were hyped up in the past few years based on concepts, but they have no performance support themselves, so there are many opportunities for them to take advantage of.

After nine weeks of operation.

Shen Xin lowered the price of Guanneng permanent magnets to a level that was within his psychological tolerance, so he notified Chen Chen immediately.

After receiving the notice.

Chen Chen took some time out to visit Guanneng Permanent Magnet, mainly to do some research.

He had some understanding of this company before, having cooperated with them several times in the supply chain, and the results were average but not outstanding.

After all, we are preparing for an acquisition.

The price-performance ratio of the leading products is not high. Products like Guanneng Permanent Magnet, which have some technology and a single mid-range market, are just right.

Thanks to the foundation laid before, Chen Chen is quite familiar with this company.

The main purpose of this visit is to gain a deeper understanding, eliminate some systemic risks, and then make a final decision.

"Mr. Chen, Director Cao, let's have some tea. Serious cloud tea."

Qin Guanneng, the boss of Guanneng, makes tea like he is cooking a meal. It has so many steps and he is very busy.

Cao Zihua was a little thirsty, so he picked up a cup first. His tongue was almost burned off, and he hissed in pain: "I haven't had much high-end tea. I'm anxious."

Chen Chen turned around and said, "You haven't tasted high-end tea, but you can't drink high-end boiled water? Please forgive me, Mr. Qin."

Qin Guanneng laughed and asked his secretary to prepare a bunch of drinks for Cao Zihua to quench his thirst.

As a company deeply engaged in magnetic materials, Guanneng has been studying how to open up the market and break the blockade of the industry leaders.

Fortunately, Shunfeng Capital, represented by Shen Xin, came out of nowhere and expressed interest in Guanneng.

Shunfeng’s capital is a golden signboard, and the resources behind the capital cannot be measured by data.

Several acquisitions they have made in recent years have brought two-way benefits.

For example, Feiniu, an acquired company, soared from obscurity to become a backbone of the industry after receiving capital injection.

Shunfeng has also gained more chips in the capital market due to its cross-industry investments.

Rumor has it.

Anyone who is favored by you will be successful, as if they have a buff.

Therefore, even Shen Xin’s extreme price-cutting in the early stage was a bit inhumane.

Qin Guanneng could only swallow his anger and worship the representative of Shunfeng Group as his savior.

Therefore, Qin Guan was somewhat fearful and kept trying to be a pua in his mind, but he got burned by the technical director right at the beginning. Wouldn't that affect the subsequent negotiations?
"Boss Qin, now that it has come to this, let's be frank. What is Guanneng's actual production capacity now?"

"This year we have built two new high-end magnetic material component bases in Ganzhou and Ningzhou. The company's annual blank production capacity has reached 3800 tons."

"What about the market?"

Qin Guanneng was a little hesitant and covered up a little: "Currently our main customers are wind power generation and air conditioning, and sales growth is stable and rising."

Chen Chen smacked his lips. "You still don't treat me as a human being. We've come to this point, and I just want to get to the bottom of it. Why don't you let it slip? The domestic new energy vehicle market is in full swing, and the motors for each vehicle represent a huge market. Why don't you keep silent about it?"

Hear this.

Qin Guangneng felt a little embarrassed.

It seems that they are all thousand-year-old foxes, so it’s not easy to play the tricks of Strange Stories from a Chinese Studio.

Among civilian products, the demand for new energy vehicles is indeed the largest, but Guanneng cannot squeeze in.

Therefore, based on the principle of reporting good news but not bad news, Qin Guan avoided it if possible.

However, Chen Chen hit the nail on the head, so he could only reluctantly say, "We are currently exploring the market for new energy."

"So the purpose of our investment in you is to open up this market. Don't hide it from me."

Qin Guanneng nodded after taking the reassurance pill: "No more hiding, we also hope that the Shunfeng system can provide help in this regard."

"Let's not talk about helping for now. I need to see your sincerity first. How is your supply chain? Is it reliable?"

This point can be regarded as asking about Qin Guanneng's strengths: "Don't worry, the raw materials are 100% reliable. Because our country is the largest and only large rare earth producer in the world, there is no other country to replace it."

Cao Zihua finally calmed down: "We are not the only ones who have rare earths, how can we have such a monopoly?"

"Indeed, there are many countries with rare earths, but we are the only one that can process and produce rare earths in a complete set, so we have an absolute monopoly advantage in rare earth magnetic materials."

Chen Chen then slowly picked up the teacup and said, "Since you have natural advantages, shouldn't you compete in the market? It's not just civilian companies that need rare earth materials."

Qin Guan understood Chen Chen's implication in a second: "We are also trying special materials. The cooperation with your company Chendun is a good start. We have also received several defense orders to supply Ru-Fe-B magnets."

Cao Zihua had some doubts: "Is it only Ru-Fe-B? Doesn't the defense industry need more advanced samarium-cobalt magnets?"

Ruthenium iron boron has strong magnetic force and is cheap, but its thermal stability is relatively poor, and its Curie temperature is only 300 degrees.

Samarium cobalt magnets, also a commonly used rare earth magnet, are far stronger than RuFeB in terms of thermal stability and coercive force. Their Curie temperature is as high as 900 degrees, making them more suitable for high-end products such as fighter jets.

Qin Guanneng paused for a moment while brewing tea, and had some psychological struggles: "To be honest, we are working hard on high-end products, but the market has been slow to open up. I heard that Chendun also has a place in the national defense industry chain. You know better than me that they have high requirements and belong to a different circle. We are working hard to integrate into it."

The entry threshold to the national defense industry system is extremely high.

Not only are there technical requirements, but the security system is even more stringent.

If it weren't for a private enterprise that holds core technology, it would be impossible to cross that threshold.

As someone who has been through this, Chen Chen has some say on this point: "Don't force yourself to fit into a circle that you can't fit into."

Qin Guanneng felt a little emotional after listening to it.

He thought Chen Chen said this to look down on Guanneng's technology. So he said stubbornly: "It's not that we can't integrate. We are also very skilled in products such as samarium cobalt magnets. We are not worse than other companies and can definitely meet the requirements of high-end weapons."

"You misunderstood." Chen Chen waved his hand to interrupt. "I mean, your initial thinking was wrong."

Qin Guanneng was a little confused: "Ah? Please... enlighten me."

"You are reluctant to supply weapons parts to a peace-loving country like us. Do you think you can make money?"

"???"

Qin Guan was completely confused.

Even Cao Zihua, who was sitting next to Chen Chen, was a little confused about the young boss.

Judging from the boss's expression and tone, he seems to be talking about business seriously?
I have no idea whether the boss is playing a role or is serious.

But love peace... ?
You don't know whether you love it or not?
Or maybe we understood it wrongly.

There's nothing wrong with loving peace, but it doesn't matter which peace it is.

Chen Chen took a sip of tea and said patiently, "To make a product, you must first find the right market."

"What's the difference between selling weapons to a peace-loving country and selling Rejoice to a bald man?"

“So think about it this way.”

"What other countries in this world do not love peace and love weapons?"

This eliminated the wrong answer, and Qin Guanneng immediately said, "Eagle sauce..."

"That's right. The Eagle Sauce has a lot of martial virtue and is in great demand."

Qin Guanneng was somewhat skeptical about his life: "Mr. Chen, are you being cunning or are you teaching me something seriously?"

"You sell weapon components, but Eagle sauce is the broader market."

"Then let me answer you seriously. Anything that uses samarium cobalt magnets is a high-end fighter jet. My mother may not be willing to let me export this stuff."

Chen Chen smiled slightly: "What you produced is just a magnet, a piece of material. There is no risk of leakage. Why should our mother care about you? Even if you take a step back, don't you still have me? I can get the license for you."

"Can you... make sure?"

Qin Guanneng was somewhat moved.

Don't say it yet.

It really gave me new ideas.

There are so many countries in the world that have high-end fighter jets, and there is a huge demand for materials.

If you can’t win at home, you might as well go abroad.

If Chen Chen can get the export license, this business will be very promising.

Chen Chen is absolutely confident about export license: "As long as you have a firm grasp on the production process, ensure that the supply chain is domestically produced, and just sell it under a brand name, I can guarantee that you can export."

That’s what I meant to say.

Qin Guanneng has already seen the interests behind this acquisition.

He values ​​Shunfeng Capital mainly because of the resources behind it.

Now this resource is fully displayed before my eyes.

If it wasn't 100% accurate, Chen Chen wouldn't dare to make such a guarantee.

Just for this reason, Qin Guanneng wanted to quickly push for the completion of the acquisition.

As a result, there were almost no differences between the two sides.

After chatting for more than two hours, Qin Guanneng and Chen Chen almost reached a verbal agreement and were waiting to sign the contract.

After Cao Zihua walked out of Guanneng, he put on an expression of complete enlightenment.

"Little Boss, I learned something again."

"What did you learn?" Chen Chen looked up.

"I've learned your secret to making money. You go in and say a few words to make Qin Guan very happy. This is the legendary strategy based on his core demands, and then break through his core demands, right?"

Cao Zihua was still reviewing Chen Chen's actions just now.

The market is Guanneng’s core appeal.

So Chen Chen seized on this point and proposed to exchange resources for overseas markets.

At that time, Guanneng couldn't move.

Chen Chen pursed his lips and looked at him. "You don't know anything. You just keep learning nonsense. Acquiring Guanneng has nothing to do with making money. For this kind of industrial materials industry, it's lucky to have a 10% net profit margin. Whether you can make money depends entirely on the price of raw material futures."

"If we don't make money, then why are we going through all this trouble? To do charity?"

"For safety reasons, I'm afraid the Americans will attack me," Chen Chen admitted.

Cao Zihua's CPU immediately started smoking, and the logic didn't make sense.

"First of all, we haven't offended Eagle Sauce recently, so he shouldn't have nothing to do and keep an eye on us every day, right?"

"Secondly, even if he wants to attack us, it's nothing more than a sanction. Guanneng is not a bulletproof vest. What can it do to help us?"

Chen Chen did not comment on the first point, but only explained the second point: "It's like two people who hate each other so much get married. The only way to avoid divorce is to have a child. Even if they want to divorce in the future, they can still extort alimony before leaving. This is the secret. Watch it carefully and learn it well."

Cao Zihua just felt his head itching and shook his head: "I can't... learn it. I feel like I need to grow a brain."

(End of this chapter)

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