Tech Giants: Starting from Bankrupt Companies

75: Chapter 75: Facing the PublicJuly 10th, 9:30 AM, Xinghuo Headquarters Press Conference Hall.

The press conference hall, which could accommodate three hundred people, was packed. The aisles were lined with cameras, with lenses of all sizes aimed at the podium.

The air was filled with the low hum of machinery and the hushed conversations of reporters, blending into a unique atmosphere of tension and anticipation.

The background board on the podium was designed with deep significance: on the left was a black-and-white photo of the old factory gate of Shenyang Machine Tool from when it was built in 1953, the red star on the blue brick archway already mottled; on the right was a panoramic view of the Xingchen Heavy Industry digital workshop, with robotic arms, AGV carts, and a glass-walled control center, full of a futuristic feel; in the middle was a gradual transition—the outline of the old factory gate gradually merged into the lines of the modern workshop, finally coalescing into four large characters:

”Inheritance · Innovation — A New Journey for Huaxia Machine Tool Industry”

At 9:35 AM, the side door opened.

A group of people walked onto the podium. Su Chen, walking in front, was rarely seen wearing a dark suit today, with a dark red tie. Following him were Lin Wan, SASAC Deputy Director Xu Jianguo, Fengtian Province Vice Governor Li Wentao, and—an old man who made the entire room of reporters instantly raise their cameras.

Master Liu Weiguo.

The old man had specially changed into a faded blue work uniform today, his chest covered with medals: National Model Worker, National May 1st Labor Medal, Technical Expert of the Ministry of Machine Building Industry... The oldest medal was issued in 1978, the metal already oxidized and darkened. He walked with a slight limp, but his back was straight, and his eyes held a calmness that only comes after experiencing the vicissitudes of life.

The five took their seats on the podium. Su Chen sat in the center, with Lin Wan and Vice Governor Li Wentao to his left, and Director Xu Jianguo and Master Liu to his right. This seating arrangement itself conveyed a message: the state, the local government, the enterprise, and the workers—all four parties sitting at the same table.

The press conference was hosted by the PR Director of Spark Group. After a brief opening, she handed the microphone to Director Xu Jianguo—following the pre-designed order, starting with the national strategy.

Xu Jianguo cleared his throat. This 58-year-old Deputy Director had also specially worn a formal suit today, his hair combed meticulously.

”Good morning, media friends.” His voice carried through the speakers across the hall, ”Today’s press conference may well be a witness to a historic moment for Huaxia’s manufacturing industry.”

He paused, his gaze sweeping over the cameras below: ”Shenyang Machine Tool, established in 1953, was one of the 156 key projects of the ’First Five-Year Plan’. It produced Huaxia’s first general lathe, first CNC milling machine, and first machining center. The technical talent it cultivated are spread across the national machinery industry, and many of the industry standards it formulated are still in use today.”

He changed his tone: ”However, for various reasons, this enterprise, which carries the industrial memory of the Republic, has fallen into serious difficulties in recent years. Seven consecutive years of losses, high debt, brain drain, shrinking market... The state has injected nearly 20 billion in succession, but it only treated the symptoms, not the root cause.”

A rustling sound of recording rose from the audience.

”Therefore, after careful study, the state has decided to explore a new path—Mixed Ownership Reform.” Xu Jianguo raised his voice, ”By introducing private enterprises with vitality, technology, and market presence, through equity cooperation, management output, and technology injection, we can make old trees sprout new buds and let historical assets regain their vitality.”

He looked at Su Chen: ”Xingchen Heavy Industry has proven its innovation capability and market development ability in the high-end manufacturing field over the past year. After multiple rounds of consultation, we have finally reached this strategic cooperation.”

Xu Jianguo’s speech was not long, but it set the tone: this was not an ordinary commercial merger, but an industrial restructuring and reform experiment driven by the state.

Next was Vice Governor Li Wentao. This provincial official in his early fifties spoke with a Northeastern accent, which felt more down-to-earth.

”On behalf of the Fengtian Provincial Party Committee and Provincial Government, I thank Xingchen Heavy Industry and Chairman Su Chen.” He got straight to the point, ”The thirty thousand employees of Shenyang Machine Tool represent thirty thousand families behind them. Most of these families have had three generations working in the factory; the machine tool factory is their root.”

He pulled up a set of data: ”Tiexi District, where Shenyang Machine Tool is located, has a registered population of 520,000, of which over 80,000 directly or indirectly depend on the machine tool factory for employment. If the factory completely collapses, it will affect more than just economic data; it will affect the survival of a community.”

Li Wentao’s tone was sincere: ”Therefore, we fully support this restructuring. The province has already formulated supporting policies: ten years of zero land rent, tax breaks of ’three years free, five years halved’, and the establishment of a 200 million fund for employee job transfer training. We only have one request—Save the factory, save the workers, and save the ’Shenyang Machine Tool’ brand.”

The local government’s statement was very practical, with no empty words.

Finally, the microphone was passed to Su Chen.

The whole room went quiet. Everyone knew that what followed was the core.

Su Chen adjusted the height of the microphone and did not speak immediately. He scanned the room, his gaze resting one by one on the press area, the guest area, and the invited industry representatives in the back row. This brief silence made the atmosphere in the room even more solemn.

”Everyone,” he finally spoke, his voice steady and clear, ”What Director Xu and Governor Li just talked about were national strategies and local concerns. Now, on behalf of Xingchen Heavy Industry, I will say a few honest words.”

He stood up and walked to the front of the podium—this action was unexpected, breaking the convention of speaking while seated.

”First, I want to say: this is not an ordinary commercial merger.” Su Chen’s voice, amplified by the speakers, echoed in the press hall, ”This is a historical handover. It is handing over the bloodline of the machine tool industry that Huaxia has accumulated over seventy years into the hands of our generation. This burden is very heavy, so heavy that in the past week, we held seven meetings and argued countless times.”

There was slight laughter in the audience, and the atmosphere eased slightly.

”But we ultimately decided to take it.” Su Chen changed his tone, ”Not because this deal is financially profitable—honestly speaking, from a purely commercial perspective, the risk is very high. We decided to take it because we saw something more important than financial figures.”

He held up three fingers: ”Today, I am here, on behalf of Xingchen Heavy Industry, to make three promises.”

”First, we will not abandon any employee willing to work hard.”

The number 15000 appeared on the big screen.

”We have taken on these 15,000 jobs. This is not charity, not relief, it is an opportunity. We will provide training, new equipment, and new processes. But the premise is—willing to learn, willing to change, and willing to work with us to get the factory running again.”

”Second, we will not bury any valuable technology.”

The screen switched: a photo wall of 824 patent certificates.

”Shenyang Machine Tool has 824 state-authorized patents, 95% of which have not been converted; there are 37 military secret processes locked in the archives. What we are going to do is to liberate these technologies from paper and file folders, turn them into products, turn them into benefits, and turn them into the competitiveness of Huaxia manufacturing.”

”Third, we will not disgrace the four characters ’Shenyang Machine Tool’.”

The photo of the old factory gate was enlarged again.

”When the factory was built in 1953, our predecessors made a vow under this plaque: to build Huaxia’s own machine tools. Sixty-four years have passed, and we will continue this vow. The future Shenyang Machine Tool will have new technology, new management, and new products, but the spirit in its bones—Self-reliance, Serving the Country Through Industry—will not change.”

Applause broke out, sparse at first, then merging into one.

Su Chen waited for the applause to subside, then said the sharpest and most truthful part:

”However, I must also be frank: the future Shenyang Machine Tool will implement Xingchen’s management system.”

He slowed his speaking speed to ensure every word was heard clearly:

”Clocking in for work—not formalism, but to know how much value each person has created.”

”Performance evaluation based on data—machining precision, production efficiency, quality pass rate, all quantified.”

”Promotion based on ability—whether you are an Old Master Craftsman or a young person, whether you have worked in the factory for ten years or thirty years, whoever can solve problems and create benefits will be promoted.”

”Compensation follows contribution—those who do well can earn a monthly salary of over ten thousand; those who slack off might not even be able to keep their basic salary.”

The room was so quiet that one could hear the sound of the air conditioning vents. These words were too direct, too naked, shattering many people’s fantasies.

”I know this might make some people uncomfortable.” Su Chen’s voice was calm but powerful, ”Accustomed to the ’iron rice bowl’, accustomed to ’it’s the same whether you work well or poorly’, it will certainly be painful to change suddenly. But I want to say—this is the only way to survive.”

He walked back to his seat but did not sit down: ”The market will not be lenient because you are an old state-owned enterprise, and customers will not pay just because you have history. To win, we can only rely on products, quality, and cost-effectiveness. And to make good products, there must be good management, good incentives, and good culture.”

”So, if someone asks me: ’General Manager Su, you went to Shenyang, what is the first thing you want to change?’” Su Chen looked at the audience, ”My answer is: Change concepts. From ’waiting, relying, and asking’ to ’venturing, reforming, and creating’, from ’good enough’ to ’not even a hair’s breadth off’, from ’this is what I deserve’ to ’this is what I earned’.”

”This process will be very painful,” he said at the end, ”but after the pain, there is rebirth.”

Su Chen sat down. His speech was not long, twenty minutes, but the information density was extremely high. He did not avoid conflicts, did not beautify reality, and said everything that needed to be said and everything that was hard to say.

Next was the Q&A session. Dozens of hands were raised in the room.

The host first called on a blond, blue-eyed foreign reporter—Mark Thompson, the chief reporter of The Wall Street Journal’s China bureau.

”Mr. Su, I am Mark from The Wall Street Journal.” His Chinese was fluent but had a foreign accent, ”According to public data, Xingchen Heavy Industry’s net profit last year was about 3 billion rmb. And for this merger, you have to assume 12 billion in debt. This is four times your net profit. My question is: will this debt drag down Xingchen’s overall listing plan? Do you have a specific repayment schedule?”

The question was very professional, hitting the core of the financials.

Su Chen signaled the staff to pull up a chart: ”Thank you for the question. First, let’s clarify one point: this 12 billion debt is fully covered by sufficient collateral—mainly land, factory buildings, and equipment. This means that even in the worst-case scenario, we can repay most of the debt by disposing of the assets.”

He pointed to the repayment schedule on the chart: ”We have designed a tiered repayment plan. For the first three years, we will only pay interest, about 600 million per year; starting from the fourth year, we will begin repaying the principal, 1.5 to 2 billion per year, and pay it off in eight years. This repayment pace matches the production capacity ramp-up and profit growth of the Shenyang base.”

Mark asked: ”But what if the Shenyang base’s profits don’t meet expectations?”

”That is why we designed a ’risk isolation’ mechanism.” Lin Wan took the microphone, as was pre-arranged: ”The Shenyang project will establish an independent legal entity subsidiary, isolated from the main body of Xingchen Heavy Industry. Even if the subsidiary performs poorly, it will not affect the parent company’s financial status or listing process. In addition, we have set up a 5 billion risk reserve, shared by the state, local government, and the enterprise.”

She added: ”As for the listing plan, Xingchen Heavy Industry is still proceeding as originally planned and is expected to submit its IPO application next year. The Shenyang project will be included in the consolidated financial statements as a holding subsidiary, but there will be full risk disclosure.”

The second question came from Wang Lin, chief reporter of Finance Weekly magazine.

”I would like to ask Director Xu Jianguo.” Wang Lin stood up, ”According to our understanding, Shenyang Machine Tool possesses a complete military industry qualification system, including licenses for research and production of weapons and equipment. These qualifications will be transferred to Xingchen after the restructuring. Does this involve the ’loss of state-owned assets’? How does the state supervise the use of these strategic qualifications in the hands of a private enterprise?”

This question was more sensitive, involving national security.

Xu Jianguo was clearly prepared. He adjusted the microphone, his tone serious and official:

”First, let me clarify: this is not a simple ’transfer’, but rather ’following the technology and the team’.” He emphasized his choice of words, ”The core of military qualifications lies in technical capabilities, quality control systems, and confidentiality management systems. These capabilities are reflected in the R&D team, technical workers, and management systems. And this restructuring is precisely to allow these capabilities to exert greater value under a new system and mechanism.”

He brought up a document projection: ”According to the ’Regulations on the Administration of Licensing for Research and Production of Weapons and Equipment’ and its implementation rules, under the framework of mixed-ownership reform, private enterprises that meet the conditions are allowed to undertake relevant qualifications through compliant procedures. The premise is: the state retains special management shares and has veto power over matters involving national security; the enterprise must establish an independent military business division, implement physical isolation and full-process monitoring; and all military products are restricted from export and are for domestic use only.”

Xu Jianguo concluded: ”We are not ’losing’ assets, but ’revitalizing’ them. Letting dormant technologies wake up and putting idle capabilities to use is in the national interest.”

The third question came from a reporter from the local Shenyang media, Fengtian Evening News, a female reporter in her thirties, speaking with a distinct Northeast accent.

”I am Liu Mei, a reporter for Fengtian Evening News.” She stood up, her voice somewhat agitated, ”I would like to ask Vice Governor Li and also President Su—the state is diverting and resettling 15,000 people, and Xingchen is accepting 15,000 people. But what exactly will happen to the remaining 15,000? I have interviewed many workers at the machine tool factory, in their forties and fifties, who have only known how to operate machine tools their whole lives. Where can they transfer to? How can they afford to start their own businesses, and what skills do they have?”

This question was very sharp and very real. Many people at the scene nodded.

Vice Governor Li Wentao took the microphone, his expression sincere: ”Reporter Liu asks a good question; this is also what we are most concerned about. The provincial and municipal levels have already formulated a detailed diversion and resettlement plan. I will briefly explain a few points.”

He brought up the PPT: ”First, an ’early retirement channel’. Employees who are 55 years old or older and have worked for 30 years can apply for early retirement. The state will make up the pension difference to ensure that retirement benefits are not lower than 80% of what they received while employed.”

”Second, ’skills training for job transfer’.” He continued, ”We have already connected with manufacturing enterprises in the Northeast region, such as Sany Heavy Industry, Northern Heavy Industry, and Dalian Shipbuilding, and have identified 8,000 job vacancies. The province and city have established a 200 million training fund to provide three months of paid training for transferred employees, who will be directly employed after passing the training.”

”Third, ’support for independent entrepreneurship’.” Li Wentao said, ”For employees who are willing to start a business, we provide interest-free loans of up to 300,000, with tax exemptions for the first two years and a 50% reduction in the third year. At the same time, we have planned a ’Machine Tool Industry Supporting Entrepreneurship Park’ in Tiexi District, providing space and order support.”

He finally promised solemnly: ”I guarantee in the name of the Fengtian Provincial Government: ’No worker will be left without a livelihood.’ The state has this responsibility and this capability.”

Su Chen added: ”From an enterprise perspective, we also promise: all departing employees will be paid full financial compensation in accordance with state regulations. In addition, Xingchen will establish an ’Old Employee Care Fund’ to provide additional assistance to particularly needy employee families. This is not a legal obligation, but it is a humanitarian responsibility.”

The Q&A lasted for forty minutes. The questions ranged from macro strategy to micro details, from financial risk to employee resettlement, from technical integration to cultural conflict. The five people on stage had a clear division of labor and handled the situation appropriately.

But everyone knew that the real climax had not yet arrived.

As the press conference neared its end, the host, following the scheduled procedure, invited Master Liu Weiguo to say a few words.

A staff member handed the microphone to the old man. Master Liu took it, his hand trembling slightly. He stood up, his blue work uniform looking exceptionally plain under the lights, and the medals on his chest jingled.

The whole venue went quiet. All camera lenses were aimed at this old worker.

Master Liu did not look at a script—in fact, he didn’t have one in his hand at all. He cleared his throat, his voice a bit raspy, but clear:

”My name is Liu Weiguo, I am sixty-two years old, and I have worked at Shenyang Machine Tool for forty-two years.” He paused, ”Before I came today, those old colleagues in the workshop, and the few apprentices I trained, they held my hand and said: ’Master Liu, when you go to see President Su, help us ask a question.’”

The old man looked up at Su Chen, his eyes filled with a complex light—expectancy, doubt, uneasiness, but deep down, a glimmer of hope that refused to be extinguished.

”They asked me to ask: In the future, can the things we build still be called ’Pride of Huaxia’?”

The question was very simple, only four characters.

But the entire press conference hall was instantly struck by a huge emotional force.

Several old reporters sitting in the front row immediately had red eyes. In the back row, female reporters were secretly wiping away tears. Even Director Xu Jianguo, who was used to big scenes, lowered his head, took off his glasses, and wiped them.

In this question, all the dignity, all the pride, and all the life meaning of a generation of industrial workers were concentrated.

Su Chen stood up.

He did not answer immediately, but walked down from the podium to Master Liu. This action stunned everyone—according to the procedure, he should have answered from his seat.

Su Chen took the microphone from Master Liu’s hand but did not speak immediately. He looked at the old man’s white hair, looked at his rough hands covered in calluses and scars, and looked at those oxidized and darkened medals on his work uniform.

Then, Su Chen did something that shocked the entire venue even more.

He took a step back and bowed deeply to Master Liu Weiguo.

A ninety-degree, standard bow that lasted for three seconds.

When he straightened up, Su Chen’s eyes were also red. He took a deep breath, and into the microphone, his voice was not loud, but every word hit everyone’s heart at the scene like a hammer:

”Master Liu, I promise you—”

He paused to ensure the old man heard clearly:

”In the future, every product that leaves the new Shenyang Machine Tool will have two lines of text engraved on its base.”

Su Chen enunciated every word:

”First line: Shenyang Machine Tool, 1953.”

”Second line: Xingchen Manufacturing, 2017.”

The venue was silent. Everyone held their breath.

”We carry the history.” Su Chen’s voice choked up, but he forced himself to control it, ”We forge the future.”

He turned to the audience and raised his voice: ”I will let the whole world know—the roots of Huaxia machine tools have not been broken! They are just changing the way they grow, growing taller and stronger!”

Master Liu Weiguo stood there, motionless for a long time. Then, the old man raised his hand and wiped his eyes hard.

He looked at Su Chen again, said nothing, but nodded heavily, heavily, three times.

Once, twice, three times.

Each time, it was like confirming an oath.

Then, the old man extended his right hand—that hand covered in calluses, the hand that had worked for a lifetime.

Su Chen also extended his hand.

The hands of two generations, in front of countless lenses, were tightly clasped together.

The applause from the audience erupted like a tsunami.

No one directed it, but the whole audience stood up. Reporters, guests, staff, even security personnel—everyone was applauding. The applause lasted for a full minute before gradually subsiding at the host’s signal.

The press conference was over.

But that image—the old worker shaking hands with the young entrepreneur, with the background board where history and modernity blended—had been frozen in time.

The next day’s newspaper front pages almost all used this photo.

The headline of Huaxia Daily was: ”Historical Handover: The Road to Rebirth for the Old Industrial Base.”

The headline of Fengtian Daily was more emotional: ”The Question of a Sixty-two-year-old Old Worker and the Promise of a Twenty-seven-year-old Entrepreneur.”

The in-depth report of Finance Weekly wrote: ”This was not an ordinary press conference. This was a public, solemn ceremony—an industry handing its past and future simultaneously into the hands of a young enterprise. And with that bow, Su Chen accepted this entrustment that was as heavy as Mount Tai.”

In the old factory area of Shenyang Machine Tool, many old workers gathered in front of the TV in the cafeteria, watching the live broadcast of the press conference.

When Master Liu asked that question, there was silence in the cafeteria.

When Su Chen bowed, some Old Master Craftsmen quietly wiped away tears.

When the two generations shook hands, someone shouted first: ”Do it! Let’s work with these young people!”

Immediately, the shouts merged into one.

The sound passed through the cafeteria, reached the empty workshop, and echoed among those old, silent equipment that had been quiet for many years.

As if those steel shells were also waiting for a rebirth.