Steal the enemy's base at the start and build a technological empire.

Chapter 391 Examining the Supply Chain

3 PM, Huizhou, Huiyang District.

The car exited the highway and turned into an industrial area. The road was wide, lined with large palm trees whose leaves were a deep, almost blackish green. The factory buildings were newly built, with white walls and blue roofs. Several trucks were parked at the entrance, being loaded with goods. Workers in uniform overalls and hard hats pushed flatbed carts in and out. A sign hung at the entrance that read "Huizhou Desay Battery Co., Ltd." The sign was made of stainless steel and polished to a high shine.

Two men stood at the door. One was a man around fifty years old, wearing a white short-sleeved shirt, with a large belly and a tightly cinched belt. Next to him stood a young man in his early thirties, wearing glasses and a light blue work uniform, holding a folder. The fat man saw the car stop, strode over, and opened the back door. "Mr. Ling? I'm Wang Desai from Desay. Factory Director Ma told me you were coming to see us today." He extended his hand, which Ling Yun shook. He pointed to the young man beside him and said, "This is Engineer Liu from our technical department, Liu Zhiyuan. He's knowledgeable about all battery-related technologies."

Ling Yun shook hands with them and walked inside. The workshop was on the first floor, and it was very large, three or four times larger than Huaqiang's. The production line was automated; robotic arms moved up and down, placing the battery cells into the casings, sealing them, injecting electrolyte, forming, and classifying them. Workers stood beside the machines, staring at the screens, occasionally pressing a button. There was a faint acidic smell in the air.

Wang Desai walked ahead, saying as he went, "We make lithium batteries. We make mobile phone batteries, laptop batteries, PDA batteries. The laptop batteries that Factory Manager Ma uses are supplied by us. They have a capacity of 4,000 mAh and a battery life of eight hours. They can be charged 500 times. You can rest assured about the quality. We've supplied Samsung before, and they audited our factory for three months before signing the contract."

Lingyun asked him, "What about the battery cells? Whose are they?"

Wang Desai said, "Sanyo's cells are imported. Domestic cells can also be used, but their energy density is lower; for the same volume, the capacity is 20% less. Users need longer battery life, and if the capacity is insufficient, they won't buy them. So we use Sanyo's. They are more expensive, but they work better."

Lingyun asked him, "Don't you make your own battery cells?"

Wang Desai said, "We do it. We have a small production line where we make our own battery cells. But the output is small, the cost is high, and the quality is unstable. It's mainly for R&D; we still use imported equipment for mass production. We want to do it ourselves, but we don't have the money. A battery cell production line costs 200 million yuan in equipment. Our annual profit is only 20 million yuan, so we can't afford it. The banks won't lend to us either, saying the risk is too high. There's nothing we can do."

Ling Yun didn't speak. He walked to the end of the production line, where several testing machines were running battery cycle life tests. The screen displayed numbers—hundreds of cycles, still running. He watched for a while, then turned to Liu Zhiyuan and asked, "What stage is your battery cell development at?"

Liu Zhiyuan opened the folder. "Energy density, we can now achieve 450 watt-hours per liter. Sanyo's is 550, a difference of 20%. Cycle life, after 500 cycles, the capacity retention is 80%, while Sanyo's is 90%. Safety tests, overcharge, over-discharge, short circuit, needle penetration, and compression, all pass. The only problem is consistency. Within the same batch of cells, the capacity difference is up to 5%, while Sanyo's is 2%. We are currently modifying the process, the formula, and the equipment."

Lingyun asked him, "You can modify equipment?"

Liu Zhiyuan said, "The homogenizer, coating machine, winding machine, liquid injection machine, and chemical formation cabinet all need to be upgraded. The equipment we are currently using is domestically made, and its precision is insufficient. Imported equipment is expensive, costing tens of millions of yuan per set, which we cannot afford."

Ling Yun looked at Wang Desai. Wang Desai rubbed his hands together and said, "Mr. Ling, we'd like to cooperate with you. You invest the money, and we'll provide the technology, personnel, and factory. If it's successful, we'll prioritize supplying you with battery cells. If it fails, the money will be considered a loan, and we'll pay it back. What do you think?"

Ling Yun didn't answer. He turned around and walked out. Wang Desai followed behind, and Liu Zhiyuan followed behind Wang Desai. At the door, Ling Yun stopped, looked at Wang Desai, and said, "Go back and work on a plan. Equipment list, budget, timeline, technology roadmap. Once it's done, send it to Ma Baoguo."

Wang Desai repeatedly said, "Okay, okay. I'll get it done as soon as I get back. I'll get it to you in a week."

Ling Yun nodded and got into the car. Zhao Hu started the car, and it slowly drove away.

5 PM, Bao'an District, Shenzhen.

The car was parked in front of a six-story building. The building was old; the cement on the exterior walls had crumbled, revealing the red bricks underneath. Some of the windows were broken and boarded up. There was only a wooden sign hanging at the entrance that read "Xingda Electronics".

A man in his fifties, slightly hunched, stood at the door, wearing a gray jacket zipped up to his neck. He saw the car stop, walked over, and opened the door. "Mr. Ling? I'm Fu Xingda from Xingda. Factory Director Ma told me you were coming to see me today." He extended his hand, which Ling Yun shook.

"Mr. Ling, please follow me, watch out for the steps."

Ling Yun followed him inside. The first floor was a warehouse, piled high with cardboard boxes, each labeled "Electronic Components".

Fu Xingda walked ahead, past a pile of cardboard boxes, and pushed open an iron door leading to the workshop. The workshop wasn't large, only a few hundred square meters, and contained several injection molding machines. The machines were running, humming loudly. Workers stood beside the machines, pouring plastic granules into the hopper, pressing buttons, the machines closing the mold, injecting, cooling, opening the mold, and a casing falling out. The workers picked it up, inspected it, and placed it in a nearby basket.

Fu Xingda pointed to the injection molding machine and said, "We make casings. Mouse casings, keyboard casings, power supply casings, we make them all. The mouse casings that Factory Manager Ma uses are supplied by us. They're made of ABS plastic, with a painted surface, and they feel good to the touch. We can produce more than 10,000 sets a day."

Lingyun asked him, "Where's the mold? Did you make it yourself?"

Fu Xingda said, "We made it ourselves. We have a mold workshop on the second floor. Five CNC machines, three EDM machines, and two wire cutting machines. It takes two months from design to trial molding for a mold. Modifications are quick, only a week. Factory Manager Ma made several design changes, and we kept up with them."

Lingyun asked him, "Does the equipment need to be upgraded?"

Fu Xingda said, "Yes. The CNC machine is too old and not precise enough. The molds it makes have large gaps between the mating surfaces, and the products have flash. It needs to be repaired manually, which is time-consuming. A new machine costs more than a million yuan, which we can't afford. We wanted to get a loan, but the bank wouldn't give it to us. They said our factory is too small and we don't have any collateral."

Ling Yun didn't speak. He walked to the injection molding machine and watched the worker operate it. The worker was probably forty years old, with wrinkles on his face and his hands covered in machine oil. He poured in the material, pressed a button, waited for the machine to open the mold, removed the outer shell, and placed it in a basket. His movements were practiced, but slow. Ling Yun watched for a while, then turned and walked out.

Fu Xingda followed behind and asked, "President Ling, would you like to go upstairs and take a look? The mold workshop is upstairs."

Ling Yun said, "I'm not going to look at it anymore. Go back and work on a plan. Include an equipment list, budget, and timeline. Once it's done, send it to Ma Baoguo."

Fu Xingda nodded and saw Ling Yun into the car and off.