Extraordinary Genius - Chapter 83 – Raise Funds
“An idea to get rich? What can we, farm people do? Other than our crops, we have nothing else. We are only good at farming and don’t have other skills.” Feng Xingtai shakes his head. This Feng Yu was not practical.
“Dad, you don’t believe what I said? You mentioned that we only have crops here, then we shall do food processing. Those Soybean oil, flour, corn flour, beets (a type of vegetables that look like carrots. In the North, they used that to produce sugar) are easy to process. I can get the machinery for these. If one is not stupid, they will be able to operate these machines after training for 2 to 3 days.”
The Soviet Union’s farming industry was on a declined these few years and the food processing plants were not in a semi-shutdown state. If Kirilenko was able to get his hands on the agricultural machinery production facilities, then he should have no problems getting these food processing machines.
There should be no problems with having a processing plant on the farm. Although they were unable to earn much at the start, in future, they should be doing well. As for the sales of the products, Feng Yu can quickly think of ways to popularize those products.
The most important thing for Feng Yu was that he could solve the problem of people coming to borrow money every day and help everyone on the farm to get rich.
“You are serious? Those production facilities are not cheap. Besides, the grain depot and the Agriculture Department also produces these things. You are sure that we are able to sell these products?”
“You don’t worry about the sales channels. I can guarantee that once the processed foods are produced, it will be sold off at high prices! The money for the processing machines is not an issue too. We will not be the only one coming out with the funds. We will be raising funds!”
“Yes. Raise funds! Tomorrow, we will use the PA system to inform everyone that we are setting up a food processing factory. Those that are interested must pay for a stake in the factory, and the proportion of the shares will base on the amount they paid. At the end of the year, dividends will be paid out based on the number of shares they hold. 100 RMB for a share and 1,000 RMB for a stake in the factory. Everyone from the farm can participate!”
“At least 1,000 RMB? It’s a bit too much. Although many can afford, there will not be many that are willing to come out with that sum.” Feng Xingtai thinks that this idea will not work. Some families on the farm earned less than 1,000 RMB ad after deducting their daily expenses, they were left with only about 100 RMB.
There were some that had some money but who would want to invest in a food processing factory? This son is good at a lot of things, but he still has a lot to learn when it comes to farming,
“Dad, you still believe me? I can bring in the most advanced food processing machines from the Soviet Union. The quantity of the soybean oil we produced will be much higher than the grain depot. The quality of the flour will be better, and we can produce more sugar from the beets. You still think that we will make a loss?”
Feng Yu looked at his father’s expression and knew that he does not believe what he said. So, he mentioned about the machines from the Soviet Union to persuade him.
“Machines from the Soviet Union?” Feng Xingtai believed what Feng Yu said when he heard this. His impression of the machines produced by the Soviet Union was more advanced and much better than the domestic machines.
“That’s right. Dad, you just wait to be the boss of the factory. After dinner, we will go to Wen Dongjun’s house. This factory still need the village head’s support!”
It was evening 8pm, and Feng Yu spent another half an hour to convince Wen Deguang. Finally, he was confident that this factory will work and will help the village to prosper.
Early next morning, everyone was woken up by an announcement from the village PA system. Many families had just finished harvesting their fields and were drying their crops under the sun. Only when they finally had a few days of rest, they were woken by the PA system so early in the morning.
“Attention everyone. Good news, good news. Feng Xingtai from our farm has decided to set up a food processing factory and is raising funds from everyone. Those who are interested, please come to the village office.”
This announcement kept repeating the whole morning. Everyone on the farm had heard it. There were so who did not understand the announcement also went to the village office out of curiosity.
“OH, Brother Feng, you are wealthy now, and you are going to set up a factory. You still said that you don’t have any money to lend us? Just help us since we are from the same village. I just want to borrow 3,000 RMB. I will return you after a few years.”
“Yes, Brother Feng, I want to borrow 3,000 RMB too. We had known each other for so many years, and you should know me well.”
Feng Xingtai just kept quiet. He knows these people well, and that was the reason he did not lend them money. These people were shameless and sarcastic. If they were not from the same village, Feng Xingtai would have chased them away.
“Uncle Song, Uncle Zheng, why are you borrowing money?” Feng Yu suddenly asked.
“This… Why are you asking so much? You are just a kid and should not interrupt when grownups are talking!”
“They must be planning to gamble with the money! You two still have not learned your lesson after getting arrested last time? Get lost, or you will not be getting your welfare benefits this year! Wen Deguang angrily shouted. These two grownups had yelled at a kid in public. They were tarnishing the village’s image!
Wen Deguang was the village head and had some authority. After he scolded those two, they kept quiet. But these two did not leave the office and wanted to stay on to watch the “show.” Feng Xingtai is going to set up a factory? We will disrupt your plans!
“Almost everyone is here. Xingtai, you can tell everyone your plans.”
Feng Xingtai stood up and repeated what Feng Yu said last night. But he did not mention anything about the Soviet Union machines. He only said that he wanted to set up a food processing factory and those who were interested can fork out some money to buy a stake in the factory. This was called shareholdings system. There were a lot of private factories in China now, which operate this way.
“Everyone, don’t listen to him. He wants to cheat our money. The money you pay for the shares will be going into his pocket, and he will be depositing the money in the bank to earn the interest! Song Deliang shouted.
“That’s right. Feng Xingtai is so rich and if he wants to set up a factory, why should he raise funds from us? Didn’t you read the papers? There were many people got conned by this type of schemes. Feng Xingtai is a conman!” Zheng Guangming also shouted.
“The two of you shut up. It is an offense to spreading rumors is against the law! You two were just lazing around and doesn’t want to work, yet you still have the nerve to say others? You two are a disgrace to your families. Accountant Liu, drag those two out!” Wen Deguang shouted angrily. He had called everyone here ad these two called Feng Xingtai a liar and a conman? Doesn’t that include him?
Feng Yu was quite pleased with those two. From now onwards, who would dare to go to his house and borrow money? If one really goes and borrow money, Feng Xingtai can, in turn, asked them to invest in the factory. Just like promoting Amway to insurance agents.
Feng Yu felt that this was an opportunity for the fellow villagers and this was voluntary. He can guarantee those who invest that this factory will be more profitable than farming. Those that did not invest can regret!
Although those two troublemakers were chased out, many others also left. They had thought the village was giving out some goodies but instead, they wanted to collect money from them. Food processing factory? It will be a miracle if it is profitable!
In the end, only seven villagers remained. They wanted to find out more. This included Li Jichuan’s father. Feng Yu swore in his heart that if these people invest 1,000 RMB in this factory, he will let them get back 10,000 RMB within 3 years!