Extraordinary Genius - Chapter 306 – Dad, you should develop this way
At about 3 pm, Wen Dongjun carried the drunk Feng Xingtai back. Feng Yu was speechless. Was there a need to drink so much for someone else promotions?
When Wen Dongjun said that he needs to go back and take care of his father, Feng Yu knew that Uncle Wen was also drunk.
Feng Xingtai slept until the skies turned dark. Feng Yu woke him up. He was finally sober after he washed his face.
“Huh? Xiao Yu, when are you back?”
Feng Yu: “……” Who do you think was the one that took care of you the whole afternoon?
“Dad, what were you talking with Uncle Wen? I heard from Dongjun that the both of you were chatting happily and drank more and more.”
Feng Yu knew that his father could hold his liquor well and could easily finish a bottle of Baijiu by himself. Feng Xingtai was drunk today because he and Wen Deguang drank 2 bottles of Baijiu each!
According to Wen Dongjun, the both of them was drinking happily and the more they talk, the more they drank. If it were not for Wen Dongjun stopping them, the both of them would open 2 more bottles!
“Nothing much. We are talking about the food factory and the pig farm’s future development.” Feng Xingtai said and drank a glass of warm water.
Huh? Dad was concern about the developments of the factory and farm? But Feng Yu does not trust the foresight of them. The both of them seldom leave the district and could not accept new things. Their vision was not as good as Feng Yu. Feng Yu was curious what was the development they were talking about.
“Dad, what is your development plans?” Feng Yu sat down beside his father.
Feng Xingtai looked at his son and said proudly: “Our brand of pork is now famous throughout the province and even Lin Province is ordering from us. When we started this farm, we had invested a lot of money, and now, we have earned back all our investments. So, the both of us decided to set up another pig farm to increase our scale!”
Feng Yu paused for a while and asked: “Dad, are you going to build the new farm in our district?”
“Of course! It will be in our district. Why should I set up the new farm in another district?” Feng Xingtai rolled his eyes at Feng Yu.
Feng Yu slapped his own forehead. He got a headache. Just the current pig farm, they were supplying to the whole province, and they were even selling to the neighboring provinces. Building a new farm in the district? His dad did not even consider the transportation problems.
“Dad, we cannot even set up the new farm in other district or even in our province. I had told you before. Our pig farm can work with other small farms. Let the other smaller farms to use our method to rear the pigs and buy the animal feed from us. We will sign a contract with them to buy their pigs. We will also let them use our Tian Peng Pig brand to sell their pigs. This method was already implemented in our district, and it had achieved good results. You can use the same method in other provinces or asked the local government of the area to set up a factory there, and we will use our brand name to invest in that factory. This would be the best solution.”
“What are you talking about? Using our brand name to invest?” Feng Xingtai does not understand. A brand name can be used to invest?
“Dad, is our Tian Peng brand of pork selling higher than other brands of pork? Is it the most popular pork in the market? Do you still remember that there was some businessman that wanted to buy our brand name? We can claim that as long as the pork is selling under our brand, they will become premium pork! This is the value of our brand name. We can invest using the value of our brand!” Feng Yu used the simple words to explain to his father.
“Then how do we do that?”
“We let others build pig farms, use our animal feeds, and then sign a contract with them. Their pork will be selling under our Tian Peng Brand, and we will be getting a share of the profits.”
“How much will be the percentage?”
“Should be about 10%. After all, we will not be coming out with a single cent and do not have to worry about anything. We can still sell them our animal feed.”
“That’s too little. What’s the point of doing that? We can set up our own farm, and everything we earn will be ours!” Now, 10% of profits do not attract Feng Xingtai at all.
Feng Yu had told him their Machinery Company shares now were worth about 30 to 40 million. The food processing factory and the pig farm was also worth a lot too. Feng Xingtai was now considered a tycoon!
If he wants to do it, he must be doing it on a big scale!
When Feng Yu heard his father saying this, he was speechless. Even if his father wants to set up a new farm, he should not be setting up the farm in their district.
“Dad, it’s fine if you want to set up our own farm. But we cannot set up in our province. We cannot set up the farm even in Lin Province. The nearest we can set up will be at Liao Province. Now we can even sell our pigs to Lin Province. If we set up the new farm at Lin Province, our market will overlap, and it will not be good for us if we want to increase our scale. If we are rearing more pigs, then how much will it cost to transport our pigs to Liao Province?”
“But I am not familiar with Liao Province. Furthermore, didn’t you say that there is a big pig farm and an animal feed factory there? Will it work out?”
Feng Yu smiled: “Dad, there is still good news which I have not told you. That animal feed factory in Liao Province was not doing well. If you bring some money there, you can buy over that factory and manufacture our Tai Hua brand of animal feed. The pig farms there were not doing well too. They are still using the traditional method. Even though their pig farm’s scale is quite big, they did not manage the farm well. The farms had poor hygiene and earlier this year, there was even an outbreak of swine fever. The farmers had lost quite a lot of money. We can also buy over their farms.”
“You want to buy but do they want to sell?”
“Dad, didn’t a businessman buy over the textile factory in the City? If you make the right offer, do you think the government there would rather make losses or sell the factory and farm to us? If you want, I can help you. Everything will be settled within two months. No matter what, you cannot set up a new farm in our district!”
“But I had promised your Uncle Wen that we will increase our scale and our profits. What should I do?” Feng Xingtai was regretting promising Wen Deguang.
Feng Yu laughed: “What’s there to worry about? We can register a company in our district, and the factory and farms will be the branches of our company. This will settle all the problems. But I would suggest registering the company in the City. The district is too small.”
“What you mean by the district is too small. You go and register the company in the district! Then can we still expand our food processing factory?”
“Dad, when I wanted to build this factory, you still think that it was a waste of money to build such a big factory. Why do you want to expand the factory now? The food factory should be the same. We must set up a branch factory in Lin Province. This way, we can also enter the Beijing market. This is like war. We must strategize and plan where to deploy our troops. This way, our company will develop faster and stronger.”
“Hmmm…. Okay. You go and settle everything. The food factory and pig farm have about 10 million in the accounts. Will it be enough?”
“Don’t worry, your son is around. But I need to make things clear. We will hire someone to manage the farms and factories there. You must not try to do everything by yourself. If you are free, you should travel around China with mum. If the both of you are bored with China, you can go overseas. Last year, you went to Beijing to watch the Asian Games. Isn’t that fun? Don’t worry about business. I promise you that in the future, whenever anyone in China talks about pigs, they will think of you.”
“Okay. Huh? What did you say? It was a long time since I gave you a beating. Are you itching for one now?”