Extraordinary Genius - Chapter 303 – Fu Guangzheng
“Guangzheng, this time let Old Zhou and the rest help you to negotiate with the local government regarding the building of the branch factories.”
“Uncle, do you think that Feng Yu will succeed this time? The automobile industry is not something that can achieve overnight. Furthermore, we are setting up new factories. Other than the high cost, we still do not have experienced workers. We are starting from zero. Why is Feng Yu so insistent to enter the automobile manufacturing industry?” Fu Guangzheng was not sure why Feng Yu wanted to do this. This was apparently a loss-making business.
“You only analyzed these?” Fu Rongqi looked at Fu Guangzheng.
This nephew of his had improved a lot in the recent years. He was more mature now, and Fu Rongqi was happy with his progress. The Fu family needs more capable next generation to take over his generation and let the Fu family continue to be one of Hong Kong’s top influential family. In the recent years, Fu Guangzheng had been entering new industries which were different from the rest of the Fu family, and he was happy with his performance.
“1 billion RMB might seem to be a lot. But if it is only for 1 or 2 factories, that’s still fine. China’s future automobile market will be better than now, and that is the reason why Feng Yu wants to enter this industry. He is right to set up 5 new branch factories at the same time. Counting the current factory, that will be 6 automobile factories, and he still wants to build 4 more motorcycle factories. This is a business strategy to capture the market. However, his resources will be spread over so many factories. How can he develop this business?”
Investing 1 billion in the automobile manufacturing industry will not be a problem if there were experienced workers and the required technologies. But that was only the resources were gathered together. Now, the funds will be spread over so many factories, and each factory will just have about 100 million, and Fu Guangzheng felt that 100 million was not enough for an automobile factory.
“Then why didn’t you withdraw your investment from the Machinery Company?” Fu Rongqi asked.
“Uncle, to be honest, I am treating this as a gamble. Feng Yu had been successful with all his investment. Since the day I know him, I had never seen him fail before. Every time he spends his money and looks like he was being taken advantage off, but in the end, he would be the one earning the most. When I know him, he does not have a lot of assets. Now, although I do not have the exact figures, I know that he is wealthier than my family and I even suspect that his wealth is catching up with you. That’s why although I do not think that this project will do well, I am willing to take a gamble. At most, I will be losing some money. As long as the humidifiers and the bladeless fans are still around, Feng Yu will not fail, and I will not fail too! Furthermore, there is still the Aiwa Company, and their new product had launched in Japan, and China’s launch will be in June!”
The more Fu Guangzheng know Feng Yu, the more he felt that Feng Yu was mysterious. His every decision does not make sense at first, but in the end, he was always right.
For example, the humidifiers and bladeless fans celebrity endorsements. Feng Yu did not pick the ones Fu Guangzheng chose, but instead, he asked Fu Guangzheng to sign contracts with two not so well-known celebrities. A second rated TV star Johnny Depp and Macaulay Culkin, a kid younger than 8 years old.
But last year, there were two box office hits which no one expected. One movie was , starring Johnny Depp, and the other , starring Macaulay Culkin. These two movies were hits, and these two main leads became famous overnight.
With these two actors’ current popularity, the endorsement fees will be at more 10 times more than what they paid. Fu Guangzheng was puzzled. How come Feng Yu knew that these two actors will be famous?
Even if Feng Yu knew that these two actors will be acting in those two movies, how would he know that these films will be box office hits? Feng Yu had watched the movie before? Impossible. Feng Yu had never been to the US. The furthest he had been was Hong Kong!
But this was a fact. Although Fu Guangzheng did not know what happened, he could only guess that Feng Yu had some connections in the US. With the success of these two movies and the increased fame of the actors, the sales of the humidifiers and the bladeless fans also increased. Those bladeless fans stored in the warehouse were sold out a few days ago, and there were still more orders coming in.
Luckily the new factory in Dongguang’s productivity was higher than Bing City and could still cope with the sudden increased demand. The last time Fu Guangzheng went to Bing City, he found out that Feng Yu now owns all the shares of the humidifiers and bladeless fans. He did not know how Feng Yu was able to get his hands on the Motor Factory and the Aviation Factory’s shares. Now, the Motor Factory only acts as a contractor for Feng Yu to manufacture his products. Feng Yu’s profits had increased by a lot.
When Fu Guangzheng suggested building a new factory to increase production, Feng Yu readily agrees. He even let Fu Guangzheng choose the location and do not mind about how much he had to invest.
This time, Feng Yu invested a considerable amount into the Machinery Company, Fu Rongqi had wanted to let Fu Guangzheng withdraw his investments and sell his shares to Feng Yu or Bing City Government. Fu Guangzheng’s investment had already multiplied by several folds, and he did not need to take on so much risk with Feng Yu.
But this time Fu Guangzheng refused to listen to his eldest uncle. The Aiwa shares incident caused by his father had pissed Feng Yu off, which lead to his father being fooled by him. With the help of his eldest uncle, Feng Yu provided some information for his father to recoup his losses and still made some money, Fu Guangzheng knew that his relationship with Feng Yu was not as close as before.
If he chooses to withdraw his investments, that means the distance between him and Feng Yu will be even further. When Feng Yu had any excellent investment opportunities in the future, he would not ask Fu Guangzheng along. Also, Aiwa products that were launched in Japan two months ago were doing well. Hong Kong Aiwa’s subsidiary will be in charge of China sales, and if Aiwa products sell well, Fu Guangzheng will also earn a lot.
If Fu Guangzheng and Feng Yu had any unpleasant encounters now, Feng Yu might break their contract, and Fu Guangzheng would lose this business.
Furthermore, there was still the humidifiers and bladeless fans. Fu Guangzheng and the rest of the Fu family had made quite a lot from these two products. After he explained to his eldest uncle, his uncle agreed with him.
His eldest uncle had told him that Feng Yu had good foresight and got access to some information network. But Feng Yu lacked one crucial thing. He lacks management talents!
Fu Guangzheng was not considered a talented person, but Fu Rongjing had taught him for many years, and now Fu Rongqi was also guiding him and even help him set up a management team. It can be said that Fu Guangzheng’s management skills were much better than anyone from Feng Yu’s company. He might even be better than Feng Yu.
Just this alone, Fu Guangzheng can help Feng Yu a lot. Feng Yu would also ditch him. Then when Feng Yu made money, he could also tag along. He would even be the bridge between Feng Yu and the Fu family. Fu Rongqi felt that this was more important than anything else.
“It’s good that you have thought this out thoroughly. Go and settle everything with the local government as soon as possible. The earlier that factories are built, the better we can understand the market. The risk will also be smaller this way. Don’t worry about failing. Now, China is developing very fast, and there are many opportunities. There are very few people as capable as Feng Yu nowadays!”