Extraordinary Genius - Chapter 542 - Multilateral cooperation Part 4 of 6
In the end, Superman Li agreed to support his younger son. He gave Li Zekai 20 million USD for him to invest. He also took out another 20 million to invest. He let Li Zekai owns 20% of the shares, while he owns 10%. As for transferring some staffs from their supermarkets to their new company, it was not an issue.
Furthermore, the people that were sent from their company will have 2 higher management staffs. They could get to purchase the shares at half the price. This was considered a reward for the ones that were sent over.
Also, Superman Li had wanted to enter the Chinese market. This venture was considered an experiment. Li Zeju did not want to invest. This was also a hint to his brother. This asset will be left for him in the future, and he will not fight with him over this.
Li Zekai was overjoyed when his father was persuaded. He also gets to own more shares.
At the same time, Fu Guangzheng was at his uncle, Fu Rongbing’s study to discuss this venture.
“You are saying that the Li Family will also be part of the venture? Can you confirm this?” Fu Rongbing asked.
“Li Zekai will be in this venture for sure. Superman Li is not confirmed yet. But I think there is an 80% chance he will invest.”
“Where did you get this confident?” Fu Rongbing picked up the cigar on the table and Fu Guangwei immediately help him light it.
Today, Fu Guangzheng was there to invite Fu Rongbing to invest in a new venture in China. Fu Guangwei also shamelessly tagged along in the study. He was the only son, and his family’s supermarket business will be handed over to him in the future. His sister will only be given some other assets. But if his father put this investment under his name, then he will have more money to spend in the future.
Fu Rongbing looked at his son and took the cigar from him. He knew what his son was thinking. He had given Fu Guangwei a high salary position in his company without any responsibilities. This was considered his allowances.
At the same time, this was a form of training for his son. He wants to see if his son would interfere with the company’s operations or steal the company’s money. Luckily, his Fu Guangwei did not do any of that. However, he was also very disappointed with him.
This son of his was given the title of Deputy General Manager. But he had never given any constructive suggestions. What the hell did he learn in school? Now, he still wants this investment? Fu Rongbing intends to test his son later. If he passes, then he will put this investment under his name. But if he does not know anything and still wants the shares, then he will “wake” him up.
Fu Rongbing’s eldest brother had said that Feng Yu was more influential than they imagined. If they could maintain a good relationship with Feng Yu, the Fu Family will be able to enter the Chinese market. Feng Yu would also be able to help them in many other ways.
Fu Rongbing’s business had hit a bottleneck. There were no more places for him to set up supermarkets in Hong Kong. He had expanded his business to Macau, Malaysia, etc. Now, China was the only place left untouched in Asia.
Although it was not his supermarket that will be entering the Chinese market, he will own some of its shares. It was the same. Most importantly, he could let Fu Guangwei get closer to Feng Yu. If Guangwei can build up a good relationship with Feng Yu, like Fu Guangzheng, then Feng Yu would allow him to invest in his new ventures. Fu Rongbing will not need to worry about his son’s future.
“Guangwei, you have also heard what Guangzheng said. What do you think?”
Fu Guangwei’s eyes brighten up. Was his dad testing him? If he gave a good answer, will he be handling this investment?
Fu Guangwei organized his thoughts and said: “Dad, I think this is a good opportunity. Our supermarket business has reached a bottleneck. Although the profits are still good, there are no more opportunities for us to grow. We have already set up supermarkets at all the good locations in Hong Kong and Macau. We have also ventured into Malaysia and Taiwan. But to be honest, other than the promotional periods, our profits were average. The returns from investments were too low.”
Fu Rongbing’s eyes widen. This son of his was not like what he imagined. He did not waste his life away. He still knows a lot about the company.
Looking at his father’s expression, Fu Guangwei was overjoyed. Some time ago, Feng Yu had told him to learn more about his family’s business and show off in front of his father. His father will be happy with him and give him more allowances. This was why he put in some effort to learn about the company, and he could finally use what he learned today!
What Fu Guangwei said was the company deputy Manager’s exact words. He knows nothing. But he could repeat everything. Brother Guangzheng was right. Being friends with Feng Yu will bring you luck!
“That’s why there are only two ways for our company to grow. First, we can take over our competitors’ supermarkets in Hong Kong, Macao, etc. But they might not sell their supermarkets at those better locations unless we offer a sky-high price. Those lousy locations will also not be useful for us and we might not even breakeven if we were to take over those. Locations have a significant impact on supermarkets.”
“The second way was to continue to enter new markets, like regions where the supermarket industry is not that developed. But I have also found out that we have only considered about Guangdong province and even in Guangdong province, we are only looking at 2 cities. These two cities already have supermarkets, and the supermarkets have their regular customers. If we were to enter these cities, we would face lots of resistance. Most importantly, our business model might not work in China. After all, we have different cultures and habits. It will be hard for us to be very successful. Of course, with our business model, we will not fail easily. I think it will be like our supermarkets in Malaysia. We will not suffer losses, but we will not have lots of profits too. It will take a long time for us to recover our investments.”
“But now, it is different. We will be partnering with others, and Fu Guangzheng will be the Chairman. He will be the one in command of the company. Although the Li Family will be part of this venture, the scale of their supermarket business is nothing compared to us. Theirs are only small supermarkets and looks more like retail shops. Ours are all big supermarkets. That’s why the new supermarkets in this venture will be using our people. Most importantly, we have more suppliers than the Li Family. Tai Hua Supermarket will be most likely to use our suppliers, and even though we might not earn from this, we can ask for discounts when they supply their goods to our supermarkets. This will lower our cost and increase our competitivity and profits!”
“There is still one more thing. China now was about the same as the old Hong Kong a few decades ago. What were our profits then when we just started the supermarket business? Also, there is one thing I agree with Brother Guangzheng. 5 years after we invested in Tai Hua Supermarket Enterprise, we will get more than 10 times returns from our investment!”
Fu Guangzheng was shocked beyond words. He looked at Fu Guangwei. Since when did he start to have insights on the family’s business? Looking at his uncle’s expression, he could tell his uncle was satisfied with his son’s answer.
Did Fu Guangwei change for the better?