stjorthotic Chapter 8 The Eagle's Visit
Chapter 8 The Eagle's Visit
Tianying Technology, officially known as Shenzhen Tianying Aviation Technology Co., Ltd.
In the consumer drone industry in 2016, Tianying ranked among the top ten in the country, and its size was about twenty times that of Hongyuan Intelligent.
Their main products cover multiple price ranges from entry-level to semi-professional, with annual sales exceeding 100,000 units. They have a mature dealer network in South China and East China.
Even so, Skyhawk is still a junior compared to DJI.
In 2015, DJI's global market share in consumer drones exceeded 70%, leaving less than 30% for all other manufacturers combined. The slice of the pie that Tianying could get was even smaller.
In the memories of the previous life, Tianying Technology survived the industry reshuffle in 2017, but barely. Later, it transformed into an industrial-grade drone and industry application solution provider, and its business was just so-so.
"What do they want from me?" Su Chen wondered to himself.
The answer quickly became clear.
Hongyuan Intelligent recently encountered a mass return of products by its distributors, a matter that couldn't be kept completely secret within the industry. The drone industry in Shenzhen is only so big; news travels fast.
A small factory facing a serious quality crisis and on the verge of bankruptcy is an excellent acquisition target for a large company looking to expand its production capacity at low cost.
"When should we meet?" Su Chen asked Zhou Ming.
"They said they were free this afternoon and asked if it was convenient for us."
Su Chen thought for two seconds.
He's racing against time to work on the F2 program, and theoretically shouldn't waste time receiving people who are likely just there to take advantage of his misfortune.
However, looking at it from another perspective—understanding Tianying's valuation and thoughts on Hongyuan—is not without value. Knowing oneself and one's enemy can at least help him judge the true perception of the external market regarding Hongyuan's current situation.
Moreover, he was also curious about how much Skyhawk was willing to pay.
"Around 3 PM."
"OK."
……
At 3 p.m., a black Buick minivan pulled up in front of Hongyuan Intelligent's factory.
Two people got out of the car, a man and a woman. The man was in his early forties, wearing a dark gray business casual suit, his hair neatly combed, looking shrewd and capable. The woman was around thirty years old, wearing a black suit, and holding a tablet computer; she was clearly an assistant.
Su Chen received them in the conference room on the second floor.
"Hello, Mr. Su, it's an honor to meet you." The man smiled and extended his hand. "I'm Wu Zheng, Vice President of Tianying Technology, in charge of strategic investment and business development."
"Hello, Mr. Wu." Su Chen shook hands with him politely.
He noticed that Wu Zheng's gaze had been scanning the surroundings ever since he entered the room—the meeting room was simply decorated, the whitewash on the walls was somewhat mottled, and the table was the cheapest kind of long table with a wood veneer.
Compared to the "rising star" image of Tianying Technology, which is written all over the media, Hongyuan Intelligent's poverty is written all over its face.
But Wu Zheng controlled his expression well, showing no disdain.
"I took a walk around downstairs before coming here," Wu Zheng said first after sitting down, his tone relaxed and casual. "I saw you guys were organizing the production line? You moved a lot of stuff out."
Su Chen knew he was testing him.
If it's about clearing out assets in preparation for closure, that's one situation; if it's about restructuring management in preparation for reopening, that's another. These two situations correspond to completely different bargaining chips.
"I just took over the company the day before yesterday and am currently implementing a lean production management system," Su Chen replied calmly. "We haven't been doing these basic things properly before, such as 5S on-site management and standardized operating procedures, so we're making up for them during this rectification."
A hint of surprise flashed in Wu Zheng's eyes.
A 23-year-old inherits a small company on the verge of bankruptcy. His first reaction is not to panic or sell it off, but to implement lean management—completely different from his expected "rush to sell".
"Mr. Su is an expert," Wu Zheng smiled. "Lean management is indeed very necessary in the drone assembly field. DJI's production line management level is the industry benchmark, and many peers are learning from it."
Su Chen didn't respond to that. Comparing him to DJI was a form of implicit pressure—the subtext being, "You're far behind DJI."
"Mr. Wu came here today, surely it wasn't just to check on our production line?" Su Chen steered the conversation directly to business.
Wu Zheng clearly had no intention of beating around the bush.
"To be frank, Mr. Su, our company, Tianying, is currently working on production capacity layout planning for the South China region." He put down his teacup and said seriously, "We've noticed that Hongyuan Intelligent has a good assembly line—new equipment, skilled workers, and a suitable location. So we'd like to discuss the possibility of cooperation."
"What form of cooperation?" Su Chen asked.
"The ideal approach, of course, would be a complete acquisition." Wu Zheng no longer concealed his intentions, revealing his hand directly: "Tianying will acquire 100% of Hongyuan Intelligent's equity at a reasonable price, retaining the existing team and production lines, and integrating them into Tianying's production system. President Su, you can choose to stay in management or choose to take the money and leave."
Su Chen's expression remained unchanged.
"How much?" he asked directly.
Wu Zheng smiled slightly and held up two fingers.
Two million.
There was a three-second silence in the conference room.
Su Chen almost burst out laughing.
Two million?
Hongyuan Intelligent's equipment is valued at four million after depreciation, and its inventory of spare parts and finished products is worth three million. Add to that the channel foundation and customer reputation of the "Hongyuan" brand in South China—even with a drastic discount, this company is worth at least ten million.
Two million isn't even enough to buy half the equipment.
This isn't an acquisition, this is robbery.
"Mr. Wu is joking with me, right?" Su Chen's tone remained calm, but the curve of his lips said it all.
Wu Zheng had clearly anticipated this reaction.
"Mr. Su, to be frank," he leaned forward, his tone becoming serious, "everyone in the market knows Hongyuan's current situation—your distribution channels have collapsed, distributors have collectively stopped ordering, and a cash flow crisis is only a matter of time. In this situation, the value of the equipment and the brand are just figures on paper. What's truly valuable is the fact that 'someone is willing to pay to take over.'"
"When you really can't hold on any longer and are forced to liquidate, the equipment will only be sold for scrap metal, the inventory will be disposed of by weight, and the brand value will be zero. At that point, forget about two million, you might not even get two million."
Wu Zheng's analysis is not without merit.
If Su Chen were an ordinary 23-year-old recent graduate who suddenly inherited a small company that was on the verge of collapse, he might be swayed by these words from an industry giant.
But Su Chen is no ordinary person.
He has memories of two lifetimes, a system, and a fully developed F2 technical solution.
More importantly, he knew the trajectory of the drone industry over the next decade.
While the consumer market is about to undergo a reshuffle, trillion-dollar growth markets such as industrial applications, agricultural plant protection, logistics and distribution, and security inspection are waiting to explode. Selling the company now is tantamount to handing over all future possibilities to someone else.
Moreover, even just looking at the present—he was confident that he could bring Hongyuan back to life within a month.
"Mr. Wu's analysis is very professional," Su Chen said calmly, taking a sip of his tea. "But I have a different opinion."
"Hongyuan's difficulties are temporary. The source of the quality problem has been eliminated, product line upgrades are underway, and channel repairs are only a matter of time. I took over this company not to find a buyer to sell it off."
He put down his teacup and looked directly into Wu Zheng's eyes.
Therefore, Hongyuan is not selling.
Wu Zheng's expression froze for a moment.
He had seen countless people and rarely misjudged his opponents in negotiations. But the attitude of this young man in front of him truly exceeded his expectations—it wasn't a defiant refusal, nor a pretentious attempt to raise the price, but rather a genuine and unwavering confidence.
It was as if he had seen something that others couldn't.
"Mr. Su, in business, there are no permanent friends or enemies." Wu Zheng stood up, straightened his suit collar, and said with a smile, "We had a very pleasant chat today. If you change your mind in the future, please feel free to contact me."
He took a business card from his assistant and handed it to Su Chen with both hands.
Su Chen took the business card and politely escorted them downstairs.
After the black Buick van left, Su Chen stood at the factory gate, watching the car disappear at the intersection of the industrial park.
"Two million?" he murmured to himself, shaking his head.
Wu Zheng probably doesn't know that what he's rejecting isn't just two million—he's rejecting an opportunity for others to define the value of Hongyuan Intelligence.
The company's worth should be proven by the company itself.
Su Chen turned around and went back into the factory.
Upstairs, Zhang Lei should have already begun the hardware preparations for the F2 project. He needs to return to the lounge, open his laptop, and start writing the core code for the flight control firmware.
At the same time, he also needs to find a way to solve the funding problem.
Although Wu Zheng's visit today was opportunistic, he was right about one thing—a cash flow crisis was only a matter of time.
If funding cannot be secured within a month, even the best F2 plan is just empty talk.
As Su Chen walked up the stairs, his mind was already racing.
He was thinking about someone.
In my past life, there was a person—or more accurately, an investment—that changed the landscape of Shenzhen's drone industry.
If he remembers correctly, the investment took place in the second half of 2016.
What he needed to do was to present himself to the investor before the money ended up in someone else's hands.
Su Chen pushed open the door to the lounge and sat down in front of the computer.
The moment the screen lit up, his fingers were already on the keyboard.
The code editor opened a new project file.
Filename: HY_FC_V2.0
Hongyuan Flight Control System, Version 2.
It all starts here.