Chapter 297 – Li Dafu
With the City’s change of attitude, Feng Yu’s position also changed.
At first, Feng Yu had given in to the city because the City was going to sell the project to him. But now, Feng Yu will not agree to those conditions.
You want me to continue to invest in the Machinery Company? Fine. Then let’s evaluate the market value of the Machinery Company and count the number of employees in the company that was doing nothing.
This time, Fu Guangzheng also attended the negotiations. This was increasing the investment to the Machinery Company, and all shareholders should be notified.
Fu Guangzheng was also shocked when he learned that Feng Yu will be investing 1 billion into the company and will set up multiple automobile and motorcycle factories.
The Fu family supported the proposal for setting up an automobile factory and this automobile project. But to increase the scale so fast without the consideration of the market, the first few years will be making losses. Fu Guangzheng hesitated and called his father and his eldest uncle to discuss it. In the end, Fu Guangzheng expressed that he does not have the money to invest in the project and will accept his shares to be diluted.
Feng Yu injected 1 billion RMB at once, and if Fu Guangzheng wants to keep his shares, he would need to invest a considerable amount too. His father had invested most of his money into the Hong Kong’s property market, and Fu Guangzheng had followed suit. He does not have enough funds now.
Furthermore, his eldest uncle felt that although the Chinese automobile market, especially the saloon cars market, was expanding now, it will not be as what Feng Yu forecast. Feng Yu was going to use his money to buy the market share by starting this large-scale project.
Feng Yu had successfully predicted the Gulf war, London gold, and the oil futures. He had made lots of profits from these events. He could afford to lose 1billion RMB but not Fu Guangzheng.
Fu Rongqi also suspect that Feng Yu had invested so much into this Automobile manufacturing project, was because he had received some benefits from somewhere and Fu Guangzheng had no way to enjoy the same benefits. That’s why Fu Guangzheng rather let Feng Yu dilute his shares.
After evaluating the Machinery Company, the market value of the Machinery Company was 432 million, and this was after the City Government assess multiple times. Feng Yu was satisfied with this valuation report. Those City Government people do not know how to evaluate the market value of a company at all. If Feng Yu wants to inflate the value of the Machinery Company, it will be at least worth 500 million and Feng Yu was still able to provide evidence to prove it.
Feng Yu will invest 1 billion RMB cash and the machinery ordered from Kirilenko were evaluated at 300 million RMB. Feng Yu will spend a total of 1.3 billion RMB.
Feng Yu also gave in a bit to the City Government. The City Government’s shares were lowered to 7%, and Fu Guangzheng’s percentages were reduced to 4%. Feng Yu’s shares increase to 84.4%. There was another mysterious shareholder that owns 0.6% shares.
The people in the accounting department were all Feng Yu’s men, and he also controlled the human resource department. In the future, all the factory directors and the company’s management staffs got to follow the rules and will be decided during the shareholder meeting.
Now, which shareholder will have the final say? Of course, it was the controlling shareholder, Feng Yu!
The automobile branch factory in Bing City expedited the construction and Feng Yu also sent his people to the local government of the areas, he planned to set up branch factories. He wants to set up all the factories in the shortest time. Once the negotiations were over, the land must be leveled before the end of the year.
Feng Yu himself, went to Hangzhou alone.
At Hangzhou, Feng Yu had 2 important things to do. First, he wants to acquire the shares from Lehaha other shareholders. But he will not get the shares from Zhong Qingxian, in case he leaves and set up another company. Secondly, Feng Yu wants to look for a person. China’s future leader in the automobile industry, Li Dafu!
Li Dafu was a legend in Feng Yu’s past life. He was the same as Zhong Qingxian. Zhong Qingxian was China’s leader in the beverage industry, and this Li Dafu was the boss of a private automobile manufacturing company. He was the first person in China to own an international automobile brand which was in the Fortune 500.
But what was Li Dafu doing now? He had set up a small factory, and this factory will be the start of his conglomerate. The factory was not manufacturing refrigerators parts, renovation materials, etc. but his factory was the first in China to develop the magnesium-aluminum alloy. This alloy had strong heat and soundproofing properties and had resistance to corrosion.
This was the person who claims that cars are just an engine with 4 wheels in a metal shell. This person had already started to develop the “metal shell” now.
If it weren’t for Feng Yu, Li Dafu would enter the motorcycle industry 2 to 3 years later, and he will be very successful. Through the motorcycle manufacturing industry, Li Dafu would accumulate the funds and also familiarize with the engines and wheels.
But he had no chance in this life. Feng Yu had already set his plans in place, and China’s biggest motorcycle manufacturer will be Bing city Machinery Company. It might even become the world’s largest motorcycle manufacturer.
Those small factories will not get the chance to grow, and Li Dafu will have no chance to get his funds to start manufacturing cars.
There were rumors that this Li Dafu was charismatic and was willing to seek advice from others. His future company was started from a family business and was converted to a shareholding.
It was hard to appoint the next leader to lead the company in a family business. There were too few choices. But for a shareholding, they can pick the next CEO from millions of people.
Li Dafu had financed his company several times and were all successful. He maintained his shares and control, at the same time, he let his company raise enough funds to develop very fast.
Also, Li Dafu paid particular emphasis on R&D. He knew that technologies could stop China’s automobile industry from growing. He spent a lot on setting up a research center to research on engines, gearbox, electronics, etc. This was what Feng Yu liked about him.
This time, Feng Yu wants to approach Li Dafu and see if Li Dafu was really like the rumors from his past life. If the stories were real, then he wants to recruit him to be the Deputy General Manager of the Machinery Company. He will be the person to take charge of the automobile project.
Feng Yu believes that Li Dafu would be tempted by high salaries and shares. Li Dafu might reject high salaries, after all, he was the boss of his own factory. But shares would mean that he would be a shareholder of the company. Feng Yu would not be stingy with the shares. 1% shares were worth more than 10 million RMB!
These conditions should be sufficient to recruit Li Dafu. If it does not work, then Feng Yu would acquire Li Dafu’s current factory. A factory that was worth less than 10 million was an easy target for Feng Yu.
Feng Yu walked into Li Dafu’s factory. Li Dafu, please do not disappoint me!