Chapter 95 – Partnering Fu Guangzheng
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The restructuring at the Machinery Factory was not completed. The contract was signed, but they need to wait for a few days before the shares certificate. Feng Xingtai returned to the village as he was worried about the food processing factory.
Feng Yu had handed the technologies information and the 3 experts over to the Machinery Factory and returned to school. The other students were used to Feng Yu skipping classes every now and then. The teachers were unable to do anything as the Vice Principal was protecting him.
But only after 2 days, Feng Yu applied for leave again.
This time, Feng Yu was forced to take leave from school. Last week, the final batch of used cars had arrived, and the Motor Factory had worked overtime to complete the refurbishment of those cars. Today, all the refurbishment was completed, and Fu Guangzheng had come in Bing City in the morning.
This batch of used cars kept Kirilenko busy for a while. Although there were a lot of British cars in the Soviet Union, there was not much selling used British vehicles. Kirilenko had spent a long time in Moscow and the surrounding cities to find enough send-hand luxury cars. He only managed to get 53 cars. Based on his estimation, there will not be more than 10 used British luxury cars in Moscow and the nearby cities.
Luckily Feng Yu had started the importation of machinery and technologies business. This allowed Kirilenko to drop his business partners and venture out on his own. Just by doing this business, he was earning a lot more than before.
Of course, the quantity of China’s product Feng Yu sold to Kirilenko had also increased by a lot. In Moscow and its nearby cities, he was the most popular supplier of China’s products. Every day, he would just lie on the couch and drink Vodka. But his money kept increasing.
Fu Guangzheng came out of his hotel and went straight to Tai Hua Trading with his men. The last batch of used luxury cars, especially those sports cars, was sold for sky high prices.
He got those cars for an average of 400,000 RMB, and he sold them for an average of 630,000 RMB. After deducting the transportation and other miscellaneous costs, he still got a profit of more than 30%.
Although the profits were much lesser compared to him selling antiques, it was not often to get an excellent piece of antique. Also, the risk of getting an imitation antique was great. This used car business was safer and more stable. It would be great if there were a constant supply of these cars. Especially sportscars. Sportscars were extremely popular in the coastal region cities.
A few mechanics were inspecting and testing the cars while Fu Guangzheng and Feng Yu were sitting by the side chatting.
“Mr. Feng’s business is booming. In future, if you have good projects, please ask me along.” Fu Guangzheng said, using his Cantonese accent Mandarin. This made Feng Yu cringed.
But Fu Guangzheng’s Mandarin had improved a lot compared to the previous time they met. Feng Yu can tell that he had put in a lot of effort to improve his Mandarin. To be successful, one must put in a lot of hard work.
“Since Mr. Fu mentioned it, I do have a good investment opportunity, but I am not sure if you will be interested.”
Fu Guangzheng moved closer to Feng Yu: “What opportunity? Please tell me about it.”
Recently, the antique business had been a bit slow, and there were more and more people going into the antique business. It was getting more difficult for him to get good antiques. Last month, there was an expert who had misjudged an antique, and it caused him to suffer a loss of few million. Fu Guangzheng knew that he was not as skillful as the expert and was worried that the same thing might happen to him. Investments would be a better option for him as the risk and losses were not as significant.
For example, Fu Guangzheng’s used cars business. He was even praised by his father. His father was glad that he had started doing business in China. It would be better if Fu Guangzheng is able to invest in some industrial factories.
When he heard that Feng Yu had a good investment project, he was interested. He had no problems investing a few million RMB. If he wants, he could easily raise 10 million RMB.
“Is Mr. Fu interested in machinery manufacturing?”
“Machinery manufacturing? What type of machines?” Fu Guangzheng frowned. The manufacturing technology in China was still far behind the US and Europe. Although it has potential, I still require the relevant technologies.
“Currently, it is still agricultural machines. We are using advanced machines from the Soviet Union, and there is guidance by experts from the Soviet Union. Also, we have the Soviet Union’s most advanced technologies.”
Fu Guangzheng’s eyes widen: “Mr. Feng is able to get your hands on these? In addition to agricultural machines, do you still have other technologies? Mr. Feng, why are we doing these manufacturing ourselves? We can just sell these technology data, and we will be rich. How about this? We will partner, and I will come out with the capital, but you will get the bigger share of the profits.”
Feng Yu shook his head and said: “Mr. Fu, things are not as easy as you think. You might not understand the situation in China now. If you do not have the backing of the Chinese Government, you will be arrested before you are able to sell those technologies. I am now working with Bing City’s Machinery Factory. But the factory had been renamed as Bing City’s Machinery Corporation Ltd. My father has a 10% stake in the company. If you are investing, I guarantee you will get more than 50% returns within 3 years!”
Fu Guangzheng lowered his head and was deep in thoughts. There were lots of problems when working with state-owned enterprises. He had met many state-owned enterprises leaders in the South and the thinking of these leaders were conservative and lacking management skills. Will the prospects be good if he were to work with them?
But now, the factory had advanced technologies and machinery from the Soviet Union, and it will be easy to capture the market. Furthermore, Feng Yu is a very capable person, and even his father has a 10% stake in the factory. This investment should be fine. Also, what Feng Yu said was true. Without the Chinese Government backing, it will be very inconvenient to do a lot of things.
“Mr. Feng, can you tell me why you wanted me to invest in this?” Fu Guangzheng looked at Feng Yu. He felt that Feng Yu was not telling him everything.
“Actually, I can contact a lot of people. But the reason I asked you to join me is that you are a Hong Kong businessman. There are a lot of things which I dislike about the factory. The finances are in a mess, the management style is backward, the factory leaders are conservative, and the City Government kept interfering with the factory’s operations. With your investments, I believe that all these will change within one year.”
“The biggest shareholder will call the shots in a shareholding company. What makes you think that they will listen to you?”
“What if I am able to be the biggest shareholder?” Feng Yu replied Fu Guangzheng with a question.
“You are going to inject more capital to dilute the shares of other shareholders?” Fu Guangzheng’s face changed. Dilution of shares would mean that his shares would also be diluted. Then what’s the point of investing? Just to help Feng Yu?
“You can also carry on investing. If you have not enough funds, you can borrow from your father. With these shares as collateral, he will lend you the funds you needed. You should be able to foresee the potential of this factory.
You should know that China is an agriculture country and the market for agricultural machinery is very big. Also, I will not be using money to inject capital. I will be using advanced machinery and other types of technologies to invest. They will not reject me. Also, these machines and technologies are at least 10 years ahead of China. How much can the factory make in 10 years, you should know the math.”
Fu Guangzheng was feeling giddy from Feng Yu’s beautiful picture. He hesitated for a while and said: “Mr. Feng, can you let me consider first and get back to you in a few days?”
Feng Yu understood. Fu Guangzheng needs to discuss with his family first.
“Of course. You can get back to me before New Year.”
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