Chapter 673 – Should we acquire them?
Li Dajun and Zhong Qingxian were stunned when Feng Yu asked this question. Feng Yu wants to invest in Strong Group?
Zhong Qingxian frowned. This was a small company and was it worth to invest in it? It’s only a company that produce jelly. There were several such companies in Hangzhou alone. What’s so special about making jelly?
Feng Yu was interested in this Strong Group or this Li Dajun? However, this Li Dajun was very hardworking. He knew that we were looking for contractors, that means he has some connections. But other than this, he did not have any other strong traits.
Zhong Qingxian knew Feng Yu likes to invest. But this investment was unnecessary. There was nothing special about this company at all.
Li Dajun looked at Feng Yu, confused. What does this gentleman mean? How come I feel that he was trying to help me? Have I met him before?
“Sir……”
“My surname is Feng.”
“Mr. Feng, I do not understand what you mean.” Li Dajun said.
“You approached us and wanted to be our contractor. That means your company is not doing well, right? Although you said that your company had grown several times but what Qingxian said was right. Your company was not big in the first place. The jelly market is very developed, and everyone in this market is making money. So, it is normal for your company to make some too.”
“Huh…… My company is in difficulties because so some bad debts. But please be assured that it will not affect Lehaha’s orders.”
Feng Yu waved his hand. “I am not worried about that. What I am saying is I can invest in your company if your company lacks money. Just like Lehaha, I will invest in you all and will not interfere with your company’s operations and management. You will still be in charge of the company, and I will just collect my share of the profits.”
Li Dajun looked at Zhong Qingxian puzzledly. Zhong Qingxian nodded: “Manager Feng is our Lehaha’s main shareholder, and he had never interfered with the company’s operations and management. You can rest assured.”
“Mr. Feng, oh…… Manager Feng, Strong Group is set up by a few brothers and me. Although I am in charge, I still need to discuss with the rest.”
“You should. Let me know after you all have reached a decision. You can contact me through this number. No matter how much you want me to invest, I will be able to satisfy you.” Feng Yu replied confidently.
How many investments can a small factory that’s worth 1 to 2 million need? If they want a large amount, they will not be able to control Strong Group.
When Li Dajun left, he was still feeling dizzy. Because of bad debt, his company needs funds urgently to solve their cashflow problems. He had come over to collect his debts and overheard someone saying Lehaha was looking for contractors in a restaurant. So, he came over to try to get a small contract. He needs to increase the income of his company to tide them over this crisis.
But Zhong Qingxian rejected Li Dajun because of his company’s size and that Mr. Feng appeared. He persuaded Zhong Qingxian to give Strong Group a chance.
Although this was not a big order, it was sufficient to solve the company’s cash flow problems. That customer’s debt will be repaid next month. After the debt was collected, even without Lehaha’s contract, and they concentrate on producing jelly, the company will also make profits.
But at this moment, Mr. Feng wanted to invest in their company. He even claims he was able to invest any amount we needed. Why does he want to do this?
Li Dajun was also having the same thoughts as Zhong Qingxian. It’s the only jelly. There were lots of companies that were producing the same products. Even Lehaha can produce jelly or buyout some smaller factories. Why did Mr. Feng choose his company?
Was it because Mr. Feng heard that he will be introducing Jelly with fruits and he decided to invest in the company? But adding fruits to jelly will shorten the shelf life of the product, and he was still not sure how the market will respond to this new product.
Also, this new product was still in the R&D phase. It was still not ready yet as they still could not get the right taste and texture. Should I inform Mr. Feng about this?
If I keep quiet about this, then Stong Group will be able to get this investment and don’t need to worry about the bank loan repayments. But that will be cheating. If Mr. Feng found out the truth, there might be severe consequences.
If I tell Mr. Feng, I might be able to leave a good impression with Mr. Feng, but I might lose this investment. Strong Group will remain this way and might not have an opportunity to become the top jelly producer in China.
Li Dajun was in a dilemma.
……
“Manager Feng, why are you investing in that small company? If you are thinking of producing jelly, we can acquire a jelly factory or invest in a bigger jelly factory. That Stong Group is too small and did not have any potential.” After Li Dajun left, Zhong Qingxian asked.
“Don’t worry about this. If you have spare cash, you can also invest in this company. As for other jelly company, I am not interested.”
Feng Yu cannot tell Zhong Qingxian that he was trying not to influence the future. He did not want the future to divert too much from its original course and cause a chain effect. Also, Feng Yu was interested in Li Dajun and not his company.
Jelly appeared in the early eighties and in Feng Yu’s previous life, Li Dajun started his factory last year. It was more about 8 years after jelly appeared and his company grew to become the world’s number one jelly company. It's market share in Asia was more than 50%. This was Li Dayou’s ability.
Also, Strong Group was strong in managing their brands. In previous life, Strong Group was the most popular children’s food brand. Every product produced by Strong Group were popular.
Strong Group Jelly, CiCi, Crystal Love Jelly, U.Loveit, etc. were all famous brands under Strong Group.
U.Loveit Milk Tea had changed the instant tapioca balls to coconut jelly. This was also their creativity. Without the tapioca balls, the taste and texture changed, and children were able to swallow the small jelly easily. Not only this drink has more nutrition value, but parents were also not worried that their children will choke on the pearls.
This was one of the reasons why U. Loveit became popular.
Strong Group was good at building their brands and attracting customers. Also, they were able to build a strong distribution channel. They invested heavily in advertising, and this let Strong Group’s sales increase rapidly.
All these achievements were proof that Li Dajun was a talented leader. He was also a very low profile person and seldom appears in front of the media. This was the same as Feng Yu.
“Manager Feng, you are really interested in this small company?” Zhong Qingxian asked. He still could not find the reason.
Feng Yu laughed. “You known me for so long, have you ever see me making a bad investment?”
Zhong Qingxian’s face changed. That’s right. He had never heard of Feng Yu making any bad investments. That means this company was really worth investing.
But why should they invest in this company? They might as well let Lehaha acquire Strong Group and let this company be one of their subsidiaries. The results might be better.