How Orkel AS Built a ¥240M/Year China Business With 2 People
This is not a theoretical case study. This is what actually happened.
Orkel AS is a Norwegian manufacturing company. They make agricultural equipment.
In 2015: zero employees in China, zero customers in China, zero entity in China. Today (2024): 2 full-time employees, ¥130-240 million annual revenue, 9 years of zero compliance penalties, no internal finance team, no HR, no admin staff.
Year 1: Validate First, Establish Second
Most companies do this backwards: set up entity, hire team, rent office, then try to find customers. Orkel did the opposite:
Months 1-3: Market Validation
No entity. No employees. DBIC ran weekly market intelligence: competitor pricing, distribution channels, customer feedback. Result: Clear go/no-go decision with actual market data.
Months 4-6: Partner Verification
We identified 12 potential distributors. Ran full background checks on each: financials, track record, existing brands, infrastructure. 3 passed verification.
Months 7-12: First Revenue
First shipments arrived. DBIC handled all import, customs, invoicing, and payments. Orkel received their money in Norway. Result after Year 1: ¥12M revenue, proven product-market fit, zero fixed back-office headcount costs.
Year 2: Establish Only When Revenue Justifies It
Only with consistent, predictable revenue did Orkel set up their WFOE. DBIC set up the entity, audit-ready from day one. They hired their first employee: a technical service engineer (FRONT-OFFICE). DBIC handled everything else (BACK-OFFICE). No finance hire. No HR hire. No admin hire.
Years 3-9: Scale Without Adding Overhead
Revenue grew ¥12M → ¥50M → ¥120M → ¥240M. They added 1 more employee: sales and customer service. That's it. 2 people total. DBIC's support scaled transparently.
The Numbers Tell the Story
| Metric | Traditional Model | Orkel + DBIC Model |
|---|---|---|
| Local Employees | 3-4 people | 2 people |
| Back-office Staff | 1-2 people | 0 (DBIC) |
| Monthly Personnel Cost | €8,000-15,000 | €4,000-6,000 |
| Management Time from HQ | 10-15 hrs/week | 1-2 hrs/week |
| Time to First Revenue | 6-12 months | 3 months |
This is not about being cheap. This is about being smart.
✔ Key Takeaways
- Validate first with minimal fixed cost — only establish entity when revenue justifies it
- 100% of local hires = front-office, revenue-generating roles. 0% = back-office overhead
- Orkel: ¥240M/year peak revenue with 2 local employees, 9 years partnership
Want to know how Orkel reached 130 million yuan from Norway?
Two people. No office. 9 years. We can walk you through the model — and what it means for your industry.
Learn the Orkel Model