Chapter 50: Xing Hai Technologies
Translator: Nyoi-Bo Studio Editor: Nyoi-Bo Studio
On the 18th of November, at the Bureau of Industry and Commerce, Chen Jin brought his Dad along to do the paperwork pertaining to the change of the company’s legal representative.
It was with regards to the small factory in Bao Shan Industrial Park used for charging the high-efficiency batteries. Its legal representative was changed from his Dad, who took up a temporary position as it CEO for a few months, to Chen Jin himself. Dad was downgraded to a technical consultant. The shares that he held was decreased to 0%. Chen Jin held all 100% of the shares in this company, even though it temporarily had zero assets.
Chen Gang did not really dare to risk playing dirty tricks like this, running circles around the law. He did not know what was Chen Jin thinking. Chen Gang quickly left the bureau after speedily signing the form for the change of legal representative. He would not interfere with whatever his son wanted to do in the future. After all, he had his own job to do.
“The failure rate of a new business is very high nowadays. And this little fellow still wants to earn an annual profit of 10 billion. I think it’s enough that he does not lose all this principal!” In reality, Chen Gang did not really approve of his son starting his own business. In the past, there were colleagues with great technical and personal skills in his circle who quit their jobs to become entrepreneurs. In the end, most of their business failed and they had to give up. There were a few cases where they owed a series of debts and jumped to their death.
Of course, there were those who became successful entrepreneurs, but they were very rare. Those who stayed in the state enterprise had more stable lives. It was difficult to become very rich, but it was safe and easy to become a little rich. It would not be a rollercoaster ride with dramatic ups and downs.
Moreover, he had already passed 50 years of age. He no longer had the lofty ambitions of his youth. For many of his major decisions, he leaned towards the conservative and stable options. However, he did not wholly oppose Chen Jin starting his own business. After all, his son was only 24 years old. He had plenty of chances to have trial and error and make mistakes. As long as he did not commit major blunders, it would be fine for him to spread his wings for a few years.
Director Dong Lei, who was in charge of receiving Chen Jin’s case at the Bureau of Industry and Commerce, was even more shocked about his business. This fellow had just opened his jewelry shop a few days ago and now he was actually opening another company again. It was registered under the category of “High Technology Research and Development,” or “High Tech R&D.” He had decided to make a business in the high tech research and development sector.
During the administrative process of changing the company’s legal representative, she could not help but ask a few questions. “Xiao Chen, didn’t your jewelry shop just open for business? Why did you start a new company again? Can you manage so many units?”
Chen Jin explained, “The jewelry shop is only my sideline. Store Manager Chiu will be handling it. This company here is my primary business. It will be my most important enterprise in the future!”
“Oh~ ” Dong Lei nodded, and understanding dawned in an instant. She realized that the boy in front of her was very smart. Nowadays, within the industries dealing in physical goods, jewelry shops were considered one of those that could survive rather well. Also, starting one’s own enterprise was a gamble. A high stakes gamble.
She had seen the statistic reports from the bureau. There were some numbers that shocked her. The failure rate of the startups in the high tech/internet sectors was over 80%. The average lifespan of a high tech/internet company was no more than 18 months. Hence there were many companies that entered the market with values over hundreds, even thousands of millions. However, if they did not have a competitive edge, they still faced bankruptcy, were forced to exit the market, or were bought by a third-party company. All of this could happen within a short period of two to three months.
Considering that he was facing such enormous risks, the young man in front of her seemed to be well-prepared even if things went south. If his startup was successful, he would continue expanding it and move towards his goals. If it failed, he could still rely on the jewelry shop as his backup plan. He would not be completely wiped out.
Dong Lei asked with a face full of concern, “Xiao Chen, why do you want to enter the high tech sector? This sector has high barriers of entry, long periods of R&D, and requires huge investment funds. The market is highly competitive too. Do you have confidence in yourself?” She did not know why she was so earnest. Although he was nobody to her, she paid much more attention to him than other entrepreneurs. She was worried that his business would fail.
“Auntie Dong, rest assured. I’ll definitely succeed!” Chen Jin radiated confidence as if he had everything planned out in his mind. This was not being egotistic. He explained his reasons. “I specialized in mechanical design in university and graduated from a respectable science class! I have an in-depth understanding of the industry I’m about to enter; it’s very familiar to me. In addition, the product that I plan to do R&D on is a small-scale robot about the size of a rice cooker. It’s not big and does not require huge funds for R&D. I can definitely create the product with an investment of just $20,000,000 to $30,000,000. Moreover, my Dad is working in a commercial aircraft company and knows many bigwigs. If I meet with any technical troubles, I’ll get advice from him. Any troubles should be quickly resolved!”
Graduated from a science class + small investment + strong technical support. The sum of these three advantages was akin to putting on three pairs of wings. It would be a challenge to not fly up to the heavens! Therefore, it was impossible to fail.
Dong Lei nodded her head repeatedly. There was an additional element of appreciation in her perception of him. Steady. Very steady. This fellow was underestimating the difficulties that he did not yet know but would soon face. He had a faint air of blind optimism about him. However, in comparison to some of the young entrepreneurs that she had come across, he could be said to be the more realistic one. Those young entrepreneurs were overly-confident; their heads were so big. They were also egotistic and snobbish, thinking that they could surpass Bill Gates with just a single idea.
With her decades of working experience in the Bureau of Industry and Commerce and countless interactions with entrepreneurs, she had perfected a pair of eagle eyes. With one look at their behavior, she could tell who would succeed or fail. She had an accuracy rate of over 95% when it came to guessing the final ending!
When Chen Jin explained the three advantages that he possessed, Dong Lei gave him a general assessment in her mind. The probability that his business would not fail was 50%. She could only give the probability of “not a failure.” It was simply too difficult to succeed. The prior elements needed for success were too numerous. Even if Chen Jin developed the robot and introduced it into the market, she dare not claim that it would be successful, because products and markets were two entirely different things!
“Xiao Chen, do it well. I believe in your success! You can approach me if you ever meet with any difficulty, including funding issues; I’ll definitely help in any area that I can!” Dong Lei cheered for him, even expressing that she could help to resolve any financial issues that he might meet with. She had never said anything like this to any other entrepreneur.
Taking the completed contract, Chen Jin said sincerely, “It’s ok, I possess sufficient funds. Auntie Dong, thank you for caring so much. When this company succeeds, you can’t postpone our meal anymore. I’ve never properly thanked you, we must go out for a meal.”
Dong Lei smiled, “Ok, I’ll definitely go when you succeed!” She watched his back as he left.
That night in his bedroom, Chen Jin smiled as he looked upon the bolded and enlarged characters on the title page of the contact.
“Ao You Xing Hai Technologies, Private Limited!” He had also shortened it to “Xing Hai Technologies.”
This was the name he gave to the high tech company that he had established. When he was registering his company, he had wanted to put down “Xing Hai Technologies,” but the name was already registered by someone else.
Xing Chen Da Hai Technologies, Zheng Fu Xing Kong Technologies, Hao Han Xing Hai Technologies….. All these names had already been registered by others!
Only “Ao You Xing Hai Technologies” could be successfully registered by Chen Jin, albeit reluctantly. The name was unused for a long time after registration, so it had been voided and was now available.
“When my company is sufficiently powerful, I will buy up the company called ‘Xing Hai Technologies’. I’ll take back the name that belongs to my company!” The company name of “Ao You Xing Hai Technologies” would only be used for a period of time. He put down the contract.
A glance into the bathroom helped him see Wa-Wah, who was holding a rotating brush and scrubbing the toilet bowl with all its strength. The porcelain cubicle was scrubbed so clean it resembled the pale and tender buttocks of a baby.
Waving his hand towards it, he said, “Wa-Wah, put down the brush and come to Master.”
“Clack, clack, clack ~” Throwing down the toothbrush, Wa-Wah scuttled obediently towards him.