Extraordinary Genius - Chapter 407 – You will become a multi-millionaire
After they had finalized the price, Feng Yu wanted to sign the contract immediately. But Secretary Chen insists on inviting Feng Yu and Director Sun for lunch. He wanted to talk about the details of this acquisition.
During the lunch, a number of the village government officials and Xu Lihua, the manager of Ningbo Bird Company were present.
When Xu Lihua knew that the village government had reached an agreement with Feng Yu to sell off their shares, he was shocked. How come they agreed to sell off the company shares so fast? They were about to make a breakthrough in their research. How cloud the village sell off the company?
What would happen to them if this company was sold?
“Manager Feng, what do you intend to do with this company after you had bought it?” Village Head Zhang asked.
Xu Lihua almost fainted. You do not even know what the other party wants to do with the company and yet you still sell them your shares? Also, why did you ask us here after you had sold the company? Meet our new boss? I am also one of the shareholders. Should you discuss with me before you sold off your company shares?
“I had heard about Manager Xu and the rest. They are the specialist in electronic signal research. Didn’t the company is researching on pagers? Then they should carry on with this project.” Feng Yu replied.
“If the research is successful, do you intend to build a factory to manufacture pagers?”
“Of course. We have to produce pagers and build a factory if their research is successful.”
“Will this new factory be in our village?” The Village Head finally asked the question he wanted to ask.
If the factory was still in this village, then this political achievement will still be his. To set up a factory, there must be investments, equipment, purchase of land, labor, etc. All these will bring lots of benefits to the village. After the factory starts its operations, taxes must also be paid to them. This would all be his credit.
Feng Yu nodded: “It will surely be located in Ningbo. But whether if the factory will be built in Fenghua or in your village, will depend on the situation.”
Ningbo also had a port, and the traffic conditions were good. If the factory was built here, it was also good. Zhejiang’s government policies were also excellent. This was indeed the province that could rival Guangdong in the future!
Furthermore, this place was also close to Japan. Feng Yu also wanted to help those Chinese students working in Aiwa return to China. It should be a good idea to set up an electronics research center here.
Although Village Head Zhang did not get a satisfied answer from Feng Yu, as long as the factory will be built in Zhejiang, it does not matter. Their village and Fenghua were also part of Zhejiang, and the leaders should see their contribution.
But he still wanted to try his best to persuade Feng Yu: “Manager Feng, if you are setting up the factory in our village, I guaranteed that I will give you the best deals. You will be able to save a lot of money!”
“Fine. Then I shall thank you in advance.”
During the lunch, Feng Yu used the excuse of wanting to visit the company later to avoid drinking. He knew that all these government officials could hold their liquor well!
Feng Yu’s expression was more interesting than Director Sun when he saw the company’s office. When Director Sun started his business, he had endured hardships. He could fully understand their plight. But when Feng Yu started his business, he had rented a large warehouse. It was spacious and well furnished.
This rundown building even had mold on the walls. This place can be called an office? Was this really the office of China’s future leader of telecommunication equipment?
Today, all the technicians of Ningbo Bird were present. They were also the company’s shareholders. Feng Yu would soon be the company’s biggest shareholder, and he was the one who had called everybody here for a meeting.
When all of them saw Feng Yu, their faces were interesting. Our company was bought over by this young man? Is he even 20 years’ old? He is now our boss?
“Everybody here is also shareholders of this company. I will be announcing that I will be injecting 1 million RMB into the company. All of you can also invest according to the proportion of your shares. If not, your shares will be diluted.” Feng Yu announced.
“What? Inject 1 million RMB? The company’s start-up capital is only 100,0000 RMB. If you are investing 1 million into the company, then our shares will be diluted to less than 1/10 of our original percentage.” Xu Lihua said.
“I have said that all of you can also invest according to the percentage of your shares. This is very normal. There will be no changes to the value of the shares you are holding. When this company was set up, the start-up capital was 100,000 RMB. All of you owns 49% of the shares, which was also 49,000 RMB. Now, the company’s assets will increase by 1 million, and the shares all of you holds will still be worth 49,000 RMB. There is no change at all.”
Director Sun frowned. What was Manager Feng thinking? First, it was 500,000 RMB. He had spent several times more to buy the shares from the Village Government. Now he wants to inject 1 million RMB into the company. Could this company and these people really develop pager?
These people need to have money to invest in the first place. Xu Lihua and the rest looked at each other. Their faces showed the difficulties they were facing.
To not let their shares be diluted, they need to invest almost 1 million. If they have 1 million RMB, they would not require the government to invest 100,000 RMB in the first place.
The most hateful part of this deal was that Feng Yu had spent 500,000 RMB to buy the shares from the Village Government. But in the contract, it was stated as 51,000 RMB. The remaining 449,0000 RMB was in the form of donations to the Village government.
This way, the value of their shares remained at 49,000 RMB. If the contract had stated 500,000 RMB, then the values of their share will be increased to almost 500,000 RMB!
“Manager Feng, we cannot afford so much money.” Xu Lihua, who represented all of them said.
Feng Yu made an understanding expression: “Oh I see. Then how much can all of you afford?”
“All of us could not even cough out 50,000 RMB!” Xu Lihua replied dejectedly. At the same time, he was cursing the Village Government for selling their shares to Feng Yu so easily!
Feng Yu turned to Director Sun: “Director Sun, are you interested in investing some money?”
Director Sun was in a daze. Me? Invest in this rundown company? Isn’t this throwing my money down the drain?
But he could tell that Feng Yu was sincerely inviting him to invest. This company really can make money? Director Sun gritted his teeth. Take a gamble!
“Manager Feng, how much can I invest?”
“How much do you want to invest?”
“Can I invest 100,000 RMB? I do not have too much spare cash. If I invested all my money here, then I will not have enough to buy goods next month.”
“Fine. 100,000 RMB. I will give you 10% shares.”
10% shares? Shouldn’t it be 8.3%? Feng Yu was giving him more shares. Was this the way he was thanking him?
“Manager Feng, it’s too much.”
“You deserved it. Manager Xu, after Director Sun and I, invested in this company, all of your shares will be diluted to 4.1%. But I know the importance of technicians in this company. That’s why I will be giving all of you 10% shares, and you decide how to split.”
Xu Lihua and the rest did not expect Feng Yu would be giving them more shares. This made them feel better.
“Manager Feng, do you really think that we will succeed?”
“As long as you all believe that you will succeed, I will believe in you! I shall be honest with all of you. I had bought this company was because of all of you! It is because you are a group of hot-blooded youths. It is to prevent our country’s pager industry from being monopolized by foreign companies!”
After leaving the Trade and Industry Bureau, Ningbo Bird Company was officially renamed as Aiwa electronics company. All of them suddenly realized that Feng Yu was that mysterious person who had bought Japan’s Aiwa! Feng Yu will be the legal representative of this company, and Xu Lihua will remain as the General Manager. Director Sun was appointed as the Deputy General Manager and also the Finance Director.
Director Sun asked Feng Yu out of curiosity. Could this company really make money, and could these people succeed in developing their own pagers?
Feng Yu looked at Director Sun seriously: “Director Sun, I guaranteed that you will become a multi-millionaire within 5 years!”