2: Companies that cannot survive without subsidies

"Mr. Wang from China Mobile just called. He said the state is going to gradually phase out subsidies and underwriting policies. I'm getting ready to pay him a visit to ask what's going on."

"The carriers are stopping subsidies?"

"If they stop, they stop. It's no big deal."

Chen Chen remembered that back on Earth, carriers began phasing out subsidies around 2012. Some old-school manufacturers failed to adapt in time and eventually vanished in the tide of the era.

"What do you mean 'no big deal'!"

"Our Red Star currently relies entirely on carrier subsidies to maintain its shipment volume."

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"If the subsidies really stop, I won't even know how to proceed with Red Star's business!"

Looking at Chen Chen, Lu Weibing spoke with a tone of disappointment, frustrated that he wasn't living up to his potential.

Chen Chen felt a bit embarrassed. It made sense; he hadn't bothered with company affairs at all. Since the old man passed away, Lu Weibing had been holding the entire company together by himself.

"Uncle Lu, don't worry yet. I think it's a good thing that the carriers are canceling subsidies. This way, we'll be forced to burn our bridges and make a transformation."

"Transformation? Transform into what?"

"Transform into a bar?!"

"You... I really don't know what to say to you!"

"No, no, no. Uncle Lu, from now on, I'll follow you and learn how to manage the company. I won't go to bars anymore unless there's a reason."

Why go to bars anymore? He was the man who was going to teach Mr. Lei how to make phones.

How could he let himself be ruined by wine and women?

Starting tomorrow, no more bars. Quitting alcohol!

From the original owner's memories, he knew that Lu Weibing was Old Man Chen's most trusted person—a veteran who had fought alongside Old Man Chen to build the empire.

Since the old man's death, Red Star had only stayed out of chaos because he was holding it up.

He had tried to reason with Chen Chen several times before, but Chen Chen remained stubborn, ignoring company business and focusing only on his hedonistic lifestyle.

After a few tries, Lu Weibing gave up. His only focus now was to manage the company well so that Old Man Chen's decades of hard work wouldn't go to waste.

As for Chen Chen, as long as he didn't gamble, he could mess around however he wanted!

"'No bars unless there's a reason'? You mean you'll go if you have an excuse?"

Lu Weibing was no longer in a hurry to find Mr. Wang from Mobile; he started lecturing Chen Chen again.

"I'm telling you, Chen Chen, your father left such a large company to you. Is this how you repay the old man?"

"Count them—how many times a year do you come to the office? You finally show up, and you freaking take the receptionist out with you!"

"What am I supposed to say to you!"

"Let's talk in the office. Let's go to the office; it looks bad if people see this!"

"You actually care about appearances? Why didn't you care when you were out partying and chasing models!"

Only Lu Weibing dared to lecture him like this. Anyone else would have to greet him respectfully as 'Hello, President Chen.'

Lu Weibing looked Chen Chen over carefully. Although he could still smell a hint of alcohol, the young man seemed different.

Yet, he couldn't quite put his finger on what had changed.

"Tell me, what are you doing at the office this time?"

"The company's funds are all allocated right now. You can't just withdraw them on a whim anymore!"

"Uncle Lu, it's nothing like that. I just came to take a look today. I'm planning to take over the company completely."

After Chen Chen finished speaking, Lu Weibing walked up with a look of pure disbelief and put his hand on Chen Chen's forehead.

"You don't have a fever, do you? You're actually going to come to work on time?"

"Really, Uncle Lu. I'll be here on time tomorrow. I can't just leave the mess the old man left behind like this."

Lu Weibing looked at Chen Chen skeptically, seemingly not quite believing his words.

"By the way, Uncle Lu, you said earlier that the carriers are stopping subsidies? When did this happen?"

Speaking of this, Lu Weibing sighed and said:

"Mr. Wang called me this morning. He said the state has issued a policy to gradually phase out subsidies. He's worked with Red Star for many years, so he called to give me a heads-up."

Chen Chen lowered his head and thought for a moment. It seemed transformation was imminent; they couldn't keep living off the carriers' scraps.

"It's fine, Uncle Lu. Besides the mobile phone department, how are the other departments doing?"

Lu Weibing looked up and gave Chen Chen a deep look before saying:

"Aside from the mobile phone department, our chip department is currently struggling the most. Several key people have already talked to me about wanting to leave Red Star, but I've managed to talk them out of it."

"Since President Chen passed away, our company's business has been a complete mess. Over the past year, I haven't been able to stop the downward trend in performance."

"The flagship model we launched this year, the 906s, was another total failure. We have no idea where to turn for the company's transformation; we're clueless."

Chen Chen thought for a moment and said:

"How about this, Uncle Lu: let's discontinue several models as soon as possible and focus all our efforts on developing a new one. We'll pivot towards the Internet!"

"Internet transformation?"

Lu Weibing looked at Chen Chen in surprise. He had also thought about pivoting to the Internet, but for a company with over ten years of history, moving in a completely new direction was very difficult.

"Exactly. We are currently in a stage of rapid growth for the mobile Internet. We need to concentrate our forces and move toward the Internet. Although performance is declining, Red Star still has a base of consumers who trust us."

"As long as our first model is a success, Red Star can return to the top three domestic manufacturers."

"You could say it's a matter of life and death."

Lu Weibing stood up and once again looked Chen Chen over from head to toe.

Did this kid suddenly have a change of heart?

Or did he drink too much fake alcohol last night?

Chen Chen: With my net worth, would I drink fake alcohol?

Bar: That's not necessarily true.

"Uncle Lu, let's hold a high-level meeting tomorrow. I need to get a comprehensive understanding of the company's situation."

"Fine. If you don't show up tomorrow, I'll go to your house and break your legs!"

"Take a look around the company first. My appointment with Mr. Wang is at 3:30 PM."

With that, Lu Weibing walked out.

Closing the door, Lu Weibing collected himself, hoping the kid was truly turning over a new leaf.

Chen Chen stood up and looked around the office he had rarely visited.

The desk was spotless, and there was no dust on the books on the shelves. It seemed someone cleaned it regularly.

On the desk was a photo of the old man shaking hands with a high-ranking leader.

Chen Chen sighed, put the photo in a drawer, and walked out of the office to check on the company's current state.

"Hello, President Chen."

"Hello, hello."

Everyone he encountered greeted him, and Chen Chen nodded back.

Although he had only been to the office a few times, the employees generally recognized him.

However, aside from withdrawing company funds, he hadn't managed anything at all.

Now that the company was even at risk of bankruptcy, these employees harbored some resentment.

"What is this kid doing at the office again? I haven't seen him here much since President Chen passed away."

"Alright, stop talking. We still have CEO Lu, don't we? Red Star is so big; it's the same whether he's here or not."

Although the two spoke very quietly, Chen Chen's sharp ears still caught it.

He shook his head self-deprecatingly and continued toward the R&D department.