Chapter 157: The General
Coal heating has never been high-tech; it is simply the working class maximizing the utility of existing conditions. The only significant difference between the new coal stoves and the old ones was the trapezoidal opening. Soon, clever people began retrofitting old stoves with these openings.
It was merely a matter of folding and welding scrap metal or aluminum, then sealing it with cement. Seeing a business opportunity, some began charging four to five mao per stove for the modification, and business was booming. At the same time, Chen Huajiang began selling the trapezoidal openings themselves, placing them at the entrances of major sales points for three mao each.
The cost of these pieces was less than one mao. Chen Huajiang supplied them to Jin San-shun at fifteen fen apiece, and the latter doubled the price for retail. They also provided small bags of cement so customers could perform the installation themselves. As these openings hit the market, retrofitting old stoves became the mainstream, and the demand for brand-new stoves plummeted. Under Chen Huajiang’s orchestration, the price of new coal stoves in the market dropped even further.
This sent the Red Flag Factory into a panic. Unable to hold out any longer, they dumped their entire inventory onto the market, as they were running out of funds to purchase raw materials or even pay wages before the New Year. However, the market was already saturated; even at reduced prices, the Red Flag Factory’s stoves wouldn’t sell. Many distributors even refused to accept their stock. A dark cloud hung over the factory, and rumors began to circulate regarding the Wu family.
In the factory manager’s office, Liu Jun puffed on a cigarette, one after another, filling the room with thick, murky smoke. He frowned, staring at a whistleblower’s letter on his desk. It had been delivered by the security department, and the identity of the informant was unknown. The letter accused the Wu family of embezzlement and misappropriating public funds. Although it lacked specific evidence, the methods and amounts were laid out with chilling clarity. It also detailed instances where distributors were owed payments, providing precise addresses, names, and figures.
Liu Jun knew it had to be true. He had been suspicious for a while—the stove factory had been losing money for a week, but how could it have drained enough to run out of material funds? After all, the factory had allocated ten thousand yuan to the stove workshop; he wasn't a fool. But this was a difficult situation to handle. Wu Min was a veteran of the factory and a comrade-in-arms he had known for years. Furthermore, who had delivered such a detailed letter to the security department? Whoever it was knew the situation of the Wu family and the Red Flag Factory far too well.
"Manager Liu, something’s wrong—it’s bad!" His secretary, young Liu, burst into the office in a panic.
"What is all this shouting? One should remain calm in the face of trouble. Do you not even understand such a simple principle?" Liu Jun snapped. "Does rushing help? Can rushing solve the problem?"
Liu Jun stood up in irritation and slammed his palm against the desk, glaring at the man with disappointment. Young Liu, whose name was Liu Shun, was a young man in his early twenties who wore glasses and looked rather scholarly. He had graduated from a technical school and was originally assigned to the steel mill, but quit after a month, complaining that it was too hard and tiring. Because his father was Liu Jun’s younger brother, Liu Jun had pulled strings to get him a position at the Red Flag Factory, hoping to look after him by giving him some simple tasks.
"Uncle, something huge—"
"Don't call me Uncle! I’ve told you how many times, in the factory you must call me Manager Liu! When will you ever remember that?" Liu Jun interrupted, grabbing a pen from the desk and throwing it at him.
*Thwack.* Liu Shun didn't react in time and was hit square on. He clutched his head, looking aggrieved.
The interruption helped Liu Jun regain some composure. He sat back down and asked, "Speak slowly. What is it? Even if the sky falls, there are taller people to hold it up." He always felt the need to act the elder and lecture his nephew.
But then—
"Kunlun Coal Stoves have dropped their price to one yuan, and the Coal Stove Factory’s stoves have dropped to eight mao."
When Liu Shun revealed the "huge" news, Liu Jun’s expression shifted instantly, and he bolted upright. "What!? How is that possible? How!"
Liu Jun panicked. He couldn't believe they had dropped their prices to such a degree. This was selling at a loss—losing money on every single unit sold. "This is impossible. I don't believe it. You must have heard some rumor."
"Damn it, can't you use your pig brain? If the price were really one yuan or eight mao, their stoves would be snatched up instantly, and they'd lose their shirts!" Liu Jun calmed down quickly, pointing at Liu Shun’s nose and yelling, convinced the boy was just repeating nonsense.
"That wouldn't happen. The Kunlun and the other factory are only selling ten of the discounted stoves per day at each sales point." Liu Shun shook his head, explaining. "So, while there are many customers rushing to buy them, if it doesn't last long, they won't lose their shirts."
"Then why are you making such a fuss? What does that have to—"
Upon hearing that they were only selling ten discounted stoves, Liu Jun spoke with disdain; such a small quantity could not affect the market. But before he could finish his sentence, a flash of insight struck him like a thunderclap. His mind went numb, his face turned deathly pale, and he collapsed back into his chair.
"Uncle? Uncle, what’s wrong? Are you having a stroke? Someone help!" Liu Shun panicked, shaking Liu Jun. Seeing him stare blankly with hollow eyes, he ran outside to shout for help.
"Shut up! Stop yelling!"
"Ruthless. What a truly ruthless move. I understand now. It’s Chen Huajiang!"
Liu Jun had figured it all out. The reason Kunlun and the other factory dropped their prices to one yuan and eight mao at this exact moment was simple: because retrofitting old stoves had become the mainstream, few people were interested in buying new ones. This pricing strategy was a way of dictating the market value. If a Kunlun stove was only one yuan and the other only eight mao, who would ever buy a Red Flag stove for one yuan and four mao? Only a fool would.
Connecting this to the sudden appearance of the whistleblower letter, Liu Jun realized it was Chen Huajiang’s work. As the factory manager, he was well aware of the grievances between Chen Huajiang and the Wu and Gou families. In the past, out of respect for his old comrades, he had more or less favored them. Now, the Gou family was finished, and it was the Wu family’s turn.
"He’s putting me in check. He’s putting the whole Red Flag Factory in check."
"How dare he? How could he be so cold-blooded!" Liu Jun’s face darkened. He punched the desk, his teeth grinding.
"Uncle, who? Did you lose at chess yesterday?" Liu Shun asked, looking completely lost.
"Get out! Get out of here!"
Liu Jun grabbed his teacup and threw it. This time, Liu Shun reacted quickly and scrambled out the door. *Crash.* The white porcelain teacup shattered on the floor, the remaining tea staining the ground, much like the state of his heart.