Chapter 11

Chapter 12

This was probably what people meant by finding a way forward when all seemed lost. Through our conversation, we learned that the young man was Liu Mingyao, a 1992 graduate of Northeastern University's computer science department. He had already done a six-month internship and had planned to renew his contract, but personnel changes at the company had put an end to that. I was delighted to hear it. Wasn't this exactly the talent we needed? Zhang Xiaotong and I took turns explaining our general idea: we wanted to open a computer retail shop here at the Sanhao Phase One Project, selling assembled PCs at first while looking for a chance to become an agent for AST or another brand.

A word about AST: from 1992 to 1994, it was a highly respectable brand in China, as popular as IBM and the others. Compared with contemporary computers, AST machines were 20-30 percent cheaper. That might seem like no difference at all today, but back when a personal computer cost tens of thousands of yuan, it was a definite advantage. We made AST our first choice because the company wasn't as old as IBM and the others, nor quite so high and mighty. We were poor now; even if we wanted a dealership, they might not give us the time of day.

My original plan had actually been to open a large PC assembly shop in 1994, when computer rooms began taking off in China. Annual profits of around ten million yuan would have been quite impressive. But after walking around Sanhao, I was itching to get started. Huge amounts of money were already flowing through here starting this year. How could I see that and hold back? Though money was a little tight, I decided to launch the plan early.

Talking to Liu Mingyao wasn't easy-not because he was slow to understand or unintelligent, but mainly because he was a fanatical fan of Zhang Xiaotong and kept interrupting us. After five minutes of this, I was getting annoyed, and my tone grew firm. "Mr. Liu, we're recruiting here, not chasing celebrities. Could you let my cousin finish speaking?"

Liu Mingyao hadn't expected a child under ten to say something like that. He gave me a startled look and asked Zhang Xiaotong, "Your little brother..."

"What he says carries the same weight as what I say," Zhang Xiaotong said coldly.

Liu Mingyao looked at me again and swallowed. "Um... I'll hear you out first."

I asked, "Do you have local household registration in Shenyang?"

"Yes."

"What are your monthly salary expectations?"

Liu Mingyao hesitated. "Fifteen hundred."

I slapped the table. Since I looked so young, the gesture seemed rather comical.

"If we offered you five thousand a month, would you want this job?"

"Of course."

"All right," I said. "Starting now, I'll give you one month to get something done. I'll give you ten thousand up front to use. Once you get it done, you can earn five thousand a month."

Liu Mingyao perked up. This was the first time he'd seen recruiters produce money on the spot. Before, he'd only seen recruiters charge money.

Zhang Xiaotong and I exchanged a look, and she said, "A business license. You'll handle everything from preliminary name approval to opening the capital verification account. I'll provide the ID. Don't worry about the registered capital; I'll find a way. This is a test of your ability. If you still can't get it done within a month, I may consider replacing you."

This time, Liu Mingyao smiled. "You don't know my family. This might be the easiest thing you could ask me to do. I can have it done in two days."

That caught my attention. I hadn't expected Liu Mingyao to have connections like these. In that case, even if his management skills weren't particularly good, it wouldn't be much of a problem. I immediately had Zhang Xiaotong take ten thousand from her bag-all the money we'd brought that day-and hand it to him.

"Here's the money, and here's our phone number. Call us when it's done, and I'll discuss the details with you."

After a little more casual conversation, we sent Liu Mingyao on his way and left the job market.

On our way out, Zhang Xiaotong asked me, "He won't run off with the money, will he?"

I waved at a taxi on the street. "Probably not. If he does, he isn't someone worth employing anyway."

Zhang Xiaotong nodded.

Liu Mingyao hadn't been boasting. Two days later, Zhang Xiaotong and I received his call early in the morning. "It's done. It cost less than two thousand. Are you coming to Shenyang, or should I come over?"

I thought for a moment. "We'll come over. This time, we'll really have to get moving."

I asked Zhang Xiaotong, "How much money do we still have on hand?"

She looked down at her card and thought for a moment. "We've spent quite a bit on three additional investments since March. Apart from the registered capital last time, there's less than one and a half million left."

I slapped my forehead. "Fine, one and a half million it is. Let's try to get the business here running properly before summer vacation. But let's be clear up front: be prepared to lose money for the first three months."

Zhang Xiaotong nodded. "I'll follow your lead."

We reached Sanhao Street as quickly as possible. There still weren't many truly perceptive businesspeople around; plenty of empty premises remained unrented, and prices were low. I knew that some places would later rent for over eight thousand yuan per square meter a year. All of it was because countless people made their first fortunes here during 1993 and 1994.

We met Liu Mingyao at the KFC downstairs in the Weiyong Building. He looked much more energetic than he had two days earlier. His eyes lit up as soon as he saw us, and he murmured, "Too easy, too easy. Here's your ID. Everything's done."

Zhang Xiaotong took her ID and put it in her wallet. "How about counting the remaining money as your first month's salary?"

Liu Mingyao nodded repeatedly. "Great! But we haven't even rented a place yet."

Zhang Xiaotong elegantly propped up one hand. "Well, I'm here now, aren't I? Let's go negotiate for a place."

My preference was to rent only a street-front shop on Sanhao Street. A higher price didn't matter; securing a good location came first. I had my eye on a roughly sixty-square-meter house at the street entrance that had been converted into a shop. The property office wanted 240,000 yuan a year, or twenty thousand a month, with two months rent-free for signing a one-year lease. Zhang Xiaotong made the decision on the spot, rented it, signed the contract, and paid a quarter's rent in advance.

In private, I told Zhang Xiaotong, "We got a tremendous bargain. Just wait and see how high the rent here goes in six months."

Liu Mingyao stared, dumbfounded. Watching a junior high school girl sign a 240,000-yuan rental contract without so much as a glance left him unable to process it.

"Hey, stop gawking," I told Liu Mingyao. "Take a look at the interior layout first and think about how to arrange it. My sister will explain the general plan in a bit."

After putting away the contract, the three of us went to the nearby Lao Bian Dumpling Restaurant for a meal. Zhang Xiaotong didn't eat much, and she explained things to Liu Mingyao as she ate.

"There are four things Sun Electronics needs to do right now."

I'd stolen the name Sun Electronics from a famous Japanese software company. It would go under in another couple of years anyway, so I figured that by the time we became known, no one would come after us over it.

"First, get the PC assembly business going. Plenty of students at your university have some DIY experience. You can hire some temporary hourly workers and bring in some PC assembly business from Shenyang's major colleges. Ideally, we should maintain a balance between income and expenses in the coming years. You'll have to find a way to deal with the tax assessment from the industry and commerce authorities. It can't exceed a thousand a month."

Liu Mingyao smiled proudly. "That's easy. I'll have him assess it at no more than thirty."

"Second, find a way to contact AST, IBM, HP, and Compaq and seek an agency partnership. Handle the negotiation details yourself. I only want results. The final outcome should be that we secure a dealership for any one of those brands without paying out too much. Give me a result by October this year."

"Third, with you as general manager, recruit networking talent. Offer three thousand plus a share of the profits. We must secure at least one of the current university campus network projects in the Shenyang area."

"Fourth, try not to hold too much inventory. Here's your stock list. Buy according to these prices and quantities. Anything you save by buying below these prices is yours to keep, but if low prices lead to quality problems, I'll replace you immediately."

When she finished, Zhang Xiaotong looked Liu Mingyao in the eye. "Can you do it?"

Liu Mingyao gave a wry smile. "I can try. That's a lot of pressure."

"It's not pressure. These are all perfectly achievable things," Zhang Xiaotong said. "All financial transactions must pass through me for review. I'll come once a week. During summer vacation, get all the preparations for opening done first."

Liu Mingyao straightened his back and lifted his head, brimming with fighting spirit. "No problem. You can count on me to get things done."

Zhang Xiaotong smiled. "Would I stake everything I have on this if I didn't trust you?"

Of course, Liu Mingyao couldn't tell that those words weren't meant for him.

Taking a share of the electronics business on Sanhao Street was different from opening a cake shop in Beiguan City. Many things didn't go so smoothly. Fortunately, with Liu Mingyao, a local, helping us, we managed to overcome them one by one. In mid-August, Sun Electronics opened. Quietly, without firecrackers or congratulatory speeches, Liu Mingyao brought someone over.

The man was in his forties, balding, with slightly cloudy eyes. His thick lenses called to mind a computer engineer who spent all day facing a monitor. I guessed he must be Liu Mingyao's academic adviser. Sure enough, when he was introduced, he turned out to be Wan Bochen, head of Northeastern University's computer science department. As I recalled, few people paid attention to the Neusoft Group's movements in 1992. At this point, Northeastern University was merely a shareholder that had contributed land as its investment. Who could have imagined the glory Northeastern University Alpine would achieve a few years later?

Wan Bochen greatly admired Liu Mingyao and Zhang Xiaotong's willingness to lead the way and seize the initiative before the market matured. He personally said that, if possible, he could give Sun Electronics some of Northeastern University's PC assembly work and campus network upgrade work. Hearing this, I understood and signaled to Zhang Xiaotong to give Wan Bochen something. Giving someone like him money wouldn't do much good, however much you gave. Besides, we didn't have much cash ourselves; it might not even cover our own needs right now.

I had Zhang Xiaotong arrange for an IBM machine to be given to Wan Bochen-the best one. Liu Mingyao beamed when he received the instructions. Nominally, the gift came from Zhang Xiaotong, but he would get credit for doing a favor too. Why wouldn't he be happy?

After exchanging pleasantries with us for a while, Wan Bochen returned to the university. Liu Mingyao called the supplier to have a computer sent over, then headed straight to Wan Bochen's home at Northeastern University. Once Liu Mingyao had disappeared from sight, Zhang Xiaotong sighed. "In the end, we still couldn't avoid doing this..."

I knew she meant giving away the computer. I shook my head. "People are practical. Without something to gain, it's hard to find motivation. Get used to it."

Zhang Xiaotong nodded. "I know. I'm just reflecting."

"That's a good thing," I said. "Once you can't even express those reflections anymore, you're pretty much old."

Zhang Xiaotong blinked. "Then I'll be old. What difference does it make?"

Out of habit, I reached out to pinch her cheek. "You'll have wrinkles and bags under your eyes. You'll turn into an old lady."

Zhang Xiaotong started to swat my hand, then hesitated and didn't. "Little rascal."

"You're the only one I dare act like a rascal with," I said. "Let's head back this afternoon. There's nothing left for us to do here."

"All right. I'll follow your lead."