Chapter 25: To Untie the Knot, One Must Find the One Who Tied It

Facing the complaints from his top salesperson, Zhang Xiaocheng could only accept them with a wry smile. He poured Zhang Ao a fresh cup of tea and said, "Production capacity has already improved significantly. By next month, we expect the daily output of satellite dishes to exceed six thousand units. If you want any further increases, you'll have to wait until the end of the year!"

Li Dongling then spoke up, asking Zhang Ao, "In the provinces you’ve visited, have you seen any other brands of satellite dishes?"

"No!" Zhang Ao answered firmly. "I took my sales team specifically to investigate the local towns. Currently, these satellite dishes are only circulating in the provinces and cities around Hanxi. We haven't found them in any other regions yet."

Li Dongling nodded, then turned to Zhang Xiaocheng and Zhang Ao. "For the satellite dish project, the most important thing right now is to increase production capacity and push the Guanxing satellite receivers into the northern provinces first."

Zhang Ao hesitated, wanting to speak his mind. The satellite dish project was entirely orchestrated by Li Dongling, and both Zhang Xiaocheng and Zhang Ao held absolute faith in Li's judgment. Yet, Zhang Ao couldn't help but ask, "Why not sell them to the southern markets first—places like Guangdong, Shanghai, Suzhou, or Hangzhou?"

It was an undeniable fact that the economy in the southern provinces was developing faster than in the north, and people there had higher incomes. That was the very reason so many people migrated south every year. If the satellite dishes reached the south, their sales would likely explode, driven by the local purchasing power.

Li Dongling didn't argue with Zhang Ao. Instead, he looked at Zhang Xiaocheng. "Brother Zhang, do you believe the Yuanqi Factory's production capacity can compete with manufacturers in Guangzhou, Shenzhen, Hangzhou, or Suzhou?"

Zhang Xiaocheng opened his mouth to respond. Having served in the military, he wasn't one to admit defeat easily. He wanted to retort, but once he opened his mouth, he couldn't find the words to claim that the Yuanqi Factory could outcompete those southern companies.

Even though Qiantang’s Wuxiao City had not yet become the world-renowned center for small commodities, and Shenzhen’s Huaqiangbei wasn't as famous as it would be in the future, the companies that had survived in the southern provinces were battle-hardened. They had survived vicious price wars. Their decision-making, efficiency, and supply chain integration were vastly superior to the Yuanqi Factory in Shangguan Town.

In recent years, it had become common for electronics, home appliances, clothing, and other products manufactured by southern companies to flood northern markets, leaving many state-owned enterprises in the north struggling to survive, with many even shutting down production.

For products with high technical barriers—like mobile phones, computers, or automobiles—that were difficult to copy or counterfeit, it made sense to sell to the south first where demand was high. Selling such items to remote, impoverished areas was pointless because no one could afford them.

However, for a product like a satellite dish with little technical complexity, entering the southern market first would be a mistake. It might sell well for the first two weeks, but within half a month, a swarm of copycat companies would emerge, mass-producing imitation and white-label satellite dishes. These companies could churn out thirty, fifty, or even one hundred thousand units a day, completely crushing the Yuanqi Factory. By then, not only would the southern market be lost, but the northern market would be snatched away as well!

Li Dongling’s strategy was to sell in the north first. Once the market became flooded with counterfeits and knockoffs, they would shift to the south—effectively squeezing out the final bit of profit. After that, the satellite dish market would become a slaughterhouse; even if there were still money to be made, it would be nothing more than hard-earned pennies.

"By the time these satellite dishes start appearing in the southern markets, that will be the moment they stop being profitable, or even start losing money!"

Hearing this, even if Zhang Xiaocheng and Zhang Ao were reluctant to believe it, they knew Li Dongling was speaking the truth. With the current strength of the Yuanqi Factory, they had no chance of competing with the manufacturers in Shenzhen or Guangzhou.

Both men felt a sense of urgency. They hoped the industry wouldn't develop as Li Dongling predicted, but if that day truly came, they likely had only a few months left. Perhaps by the time the New Year passed—or even before—the market situation would change completely.

For Zhang Ao, it meant the opportunity for quick cash would disappear. He would likely never again see the massive commissions that allowed him to earn tens of thousands, or even over a hundred thousand, in a single month.

Zhang Xiaocheng, however, was filled with deeper anxiety. If the satellite dishes stopped selling, what would become of the Yuanqi Factory? During this period, the factory’s workforce had grown sevenfold to thirty-five hundred people, with over fifteen hundred permanent employees!

He could easily dismiss temporary workers, but permanent staff were a different matter. It wasn't that Zhang Xiaocheng wanted to hire so many; the leaders in Shangguan Town and Pingyang City had pressured him to do so.

State-owned enterprises in Pingyang had performed poorly this year, with many shutting down. With so many workers waiting for their next meal, it became a matter of stability for countless families. The high number of unemployed people was beginning to affect public safety in Pingyang, putting immense pressure on city officials. Seeing the Yuanqi Factory’s sudden success, they naturally began pushing people into the factory.

Of course, the Yuanqi Factory had received support. The Pingyang municipal government and various departments had cooperated to increase capacity, grant tax exemptions, prioritize utilities, and coordinate transportation through the Traffic Bureau to help ship the dishes. Without this, the expansion wouldn't have been so smooth.

Zhang Xiaocheng wore a look of profound worry. He was likely the most conflicted state-owned factory director in Pingyang. Every month, they sold over a hundred thousand satellite dishes, generating fifty or sixty million in revenue, but he worried about whether the factory could survive in six months’ time, and what would happen to all those employees.

As he walked out, Zhang Xiaocheng couldn't help but look back at Li Dongling. He realized that if the satellite dishes truly stopped selling, the only person capable of saving the Yuanqi Factory would be Li. He couldn't imagine anyone else who could pull off such a feat.

But Zhang Xiaocheng also understood that if he ever needed to ask Li Dongling for help again, it wouldn't be so easy. Li Dongling had built his own company now; why would he give a good project to the Yuanqi Factory instead of doing it himself? What reason did he have to do so?

The more he thought, the more worried Zhang Xiaocheng became. Even though the Yuanqi Factory now held over twenty-five million in cash—a sum that made it stand out among all the state-owned enterprises in Pingyang—he felt no sense of security.

"Brother Li!"

Just as Li Dongling stepped out, he heard someone calling him. He turned and saw Wei Hongying.

"Is something the matter?" Li Dongling looked at Wei Hongying, then caught a glimpse of a figure in the distance, and a suspicion formed in his mind.

Wei Hongying, swinging her two braids, said to Li Dongling, "Brother Li, there is indeed something I’d like your help with. Remember Sister Qin, Qin Fang? There was a misunderstanding that day. She wants to work at the Yuanqi Factory now; could you help her?"

"If you're still angry with her, I’ll make her apologize. She's in a tough spot and really needs this job..."

Li Dongling glanced at Qin Fang in the distance. Her face was slightly pale, and when she saw Li Dongling’s gaze, she looked embarrassed and flustered. Finally, she gritted her teeth and met his eyes.

"The Yuanqi Factory is setting up a General Affairs Division to coordinate between the sales staff stationed in other provinces and the production department. She can try that, but I can't guarantee she will be hired."

To put it bluntly, this department was responsible for communication. When sales staff in other provinces landed an order, they would call the General Affairs office, and the staff there would coordinate with the production department to follow up on the order and ensure on-time delivery. Without computers, communication was difficult, and adding manpower was the only way to manage it. It wasn't highly efficient, but it was necessary.

"That's wonderful!" Wei Hongying hadn't expected Li Dongling to offer Qin Fang a spot in the new department. She had heard that the wages there were much higher than on the production line, and it was an office job—quite a respectable position. "Sister Qin will definitely be up to the task. She was the top student in her high school and even received a college acceptance letter, but her family couldn't afford the tuition, so she had to get married. Otherwise, she would definitely be a university graduate!"

Li Dongling was surprised to hear about Qin Fang’s past. It reminded him of Li Dongshan and the rest of his family. When he was admitted to Hanxi Jiaotong University, the old man and Li Dongshan hadn't hesitated for a second; they gritted their teeth to pull together the money for his tuition, and throughout his years at school, they had never once let him go short on living expenses.

"I'll go tell Sister Qin!"

Just as Wei Hongying turned to leave, Li Dongling called her back. "After Qin Fang finishes the paperwork, have her come to my office."