Extraordinary Genius - Chapter 610
Chapter 610 – How do you want to invest?
Feng Yu and Zhong Qingxian discussed their plans for Lehahafor a while, and Zhong Qingxian’s secretary came in and informed them that LiDafu had arrived.
Feng Yu did not have an office in Hangzhou, so he asked LiDafu to come to Lehaha. He can’t be going over to Li Dafu’s office. Lehahaoffice was still considered Feng Yu’s base.
Li Dafu knew that Feng Yu was Lehaha’s shareholder, but hedoes not know that he was the major shareholder. He greeted Zhong Qingxianfirst when he arrived. Both of them had met each other previously at theZhejiang Business Association.
It was not known when it started. Businessmen from the samearea will gather together to form a business association. They would worktogether and corporate against businessmen from other provinces.
But Feng Yu was not interested in taking part in theseassociations. What’s the use of hiding in one place and fighting against yourown fellow men? If their target were the overseas market, then Feng Yu would beinterested. These associations were only trying to protect their personalinterest. These existed since ancient times. But disappeared and reappearedafter the reformations.
This Zhejiang association was a joke to Feng Yu. Thesepeople felt proud to be a member, and they wanted to bring honor to theZhejiang’s businessmen through this association.
After exchanging some pleasantries with Li Dafu, ZhongQingxian left the meeting room. Only Feng Yu and Li Dafu remained. Thisconcerned another company, and it was not appropriate for Zhong Qingxian to sitin the meeting.
“Manager Feng, you should know my purpose for meeting you. Iwonder if I can still work with you to increase the status of our China’sautomobile industry and let Songjiang Motors rise to a greater height?”
Feng Yu had asked Li Dafu if he was interested in creatingthe best Chinese automobile vehicles with him in the past. But Li Dafu rejectedFeng Yu. Now, he can only say he wants to help Songjiang Motors to a greaterheight.
“So, you have considered about this? What about yourcompany? You are not going to manage your company anymore?”
“I intend to let someone else manage my company for me, andI will go to Bing City Machinery Company to work. Will there be any problem?”Li Dafu asked. Many people held a high position in another company while owningbusinesses outside. But he was not sure if Feng Yu would agree to this.
“There is no problem. Are you going to be one of the normalmanagement staff or do you want to own some shares?” Feng Yu asked.
If Li Dafu had agreed to Feng Yu in the past, Feng Yu wouldsurely give him some shares. But now, if Li Dafu wants the stocks, he needs tobuy them!
“Of course I want some shares of the company!” Li Dafureplied without any hesitations. Without the shares of the company, he hasnothing to do with Songjiang Motors.
Feng Yu nodded: “Let me calculate for you. Bing CityMachinery Company is currently worth about 4 billion RMB. How much money do youhave? I can sell you some shares.”
Li Dafu’s jaws dropped. Did Feng Yu get the figures wrong?Bing City Machinery Company was worth 4 billion RMB now?!
“Manager Feng, BingCity Machinery Company is worth so much?”
“Let me tell you the breakdown. Our agriculture machinery’sbrand and technology are the best in China and one of the tops in the world. Idid not add to the brand value. Just the technologies, equipment, land andworkers, were worth more than 1 billion RMB! If you count the brand value, itwill worth more than 3 billion RMB!”
Feng Yu was feeling proud when he saw Li Dafu’s shockedexpression. Others might think that branding was not necessary. But Feng Yuknew the value of branding.
“Also, our Songjiang Motorcycles is worth more than 1billion. We are China’s top motorcycle, and we forecast our sales volume to beover 450,000 units this year!”
“Our investments in Songjiang Motors cars is also not asmall sum. Currently, our cars have a good reputation and are exported toEurope. Just this business alone is worth more than 1 billion. I said 4 billionRMB is not including the brand value. If you include Bing City MachineryCompany’s brand value, it is worth at least 6 billion RMB!”
Li Dafu was speechless. He thought he had managed hiscompany well and had earned a fortune. He thought he could still afford to buysome shares in Bing City Machinery Company with his money, but it seems thateven if he sells off his company, he would only afford to buy 2% of the shares.This was much lower than the 5% shares he expected!
“Manager Feng, can I just invest in Songjiang Motors cars?”
Feng Yu laughed: “Songjiang Motors have 5 factories and aresearch center. Which one do you want to invest? I had told you a lower valueof the company to let you have the chance to own some shares. We still have notto recover our investments for our automobile business. Our company’s mostprofitable business is still the agriculture machinery, followed by motorcyclesand the cars are the last!”
Li Dafu was stunned. Songjiang Motors cars were so famous inChina, and their profits were the least? Agriculture machinery was soprofitable?
Li Dafu does not understand the agriculture machineryindustry. He had expected Songjiang Motors cars’ profits to be lesser than themotorcycles. But he never expects the agriculture machinery to be soprofitable.
China was an agriculture country and claims to have morethan 900 million farmers. How was it possible to have a lack of demand for agriculturemachinery? Furthermore, Bing City Machinery Company’s facilities were from theformer Soviet Union. Their products were cheap and durable. The technologieswere the best in China and could even be considered one of the best in theworld. The company does not need to worry about their sales. People werequeuing up to order their agriculture machinery.
If Feng Yu had not increased the company’s spending in theR&D of the harvesters, tractors, etc. their profits would be higher.
If the agriculture machinery were good, there would be noshortage of buyers. Bing City Machinery Company’s agriculture machinery was themost famous in China. Farmers were willing to buy their machines just bylooking at the brand!
Some technologies fromthe agriculture machinery could be used for motorcycles and cars. This willhelp the company to save some of the R&D funds. Also, China’s top tiremanufacturer, bearings manufacturer, etc. were in Bing City. This also reducescost significantly.
First Automobile Works was one of the shareholders for thetire company and bearings company. These companies were mainly supplying partsto FAW. But now, most of their orders were from Bing City Machinery Company.FAW’s management was pissed. However, they could not interfere with thecompanies’ operations. After all, Bing City Government held shares in thosecompanies and FAW were in no position to interfere!
FAW had given many technologies to those companies and toFAW’s CEO, this was considered funding their enemy! If possible, he wants tofire his Deputy CEO, who suggested to invest in those spare parts companies inBing City!
“Manager Li, how is it? Have you considered enough? How doyou want to invest?”
Li Dafu’s face turns red. How can he invest? If he investedin only one factory and Feng Yu adjusted the operations model, he would loseall his investments. He can only invest in the main company.
Should he sell off his company? From the boss of a companyto a minor shareholder who owns 1 to 2% shares? Was this really what he wants?
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