Chapter 8 Capital Increase and Original Shares
Now that you have the materials, you must try it out to see if the finished product meets your expectations.
Making tofu is a very laborious job. First, the soybeans must be soaked for 8-10 hours until they swell, and then water can be added to grind them into soy milk.
Jiang Youxin calculated the time and decided to wait until after closing time to soak the beans, so that he could make tofu the next morning. That evening, he also had to ask Andre to make a wooden mold for pressing the tofu.
This type of mold is usually made from several pieces of wood, with holes to allow water to drain, and is not difficult to make. She recalled the shape of the mold she had bought in her previous life and took out a piece of white paper to draw a blueprint.
The afternoon was spent writing, drawing, cooking, making sauces, collecting money, and listening to the gossip of the guests. When Jiangyou finally finished all the drawings and Andrei returned from work, the black-haired knight asked as soon as he entered the room, "What's going on with that barrier next door?"
"Oh, it's little dragon Leodo making free dragon crystals." Jiang You replied happily, "Don't worry about him. Oh, and help me make something tonight. I want to use it to make something delicious tomorrow."
She stuffed the blueprint into Andre's hand. Andre glanced at it and nodded: "Okay, I can do it."
"Use non-toxic, waterproof, and mildew-resistant wood," Jiangyou instructed. "With this, I can make delicious tofu!"
Andrei instantly became interested: "Tofu, what is that?"
Jiang You chuckled, "You'll find out tomorrow morning. You should have enough time to have a bowl of tofu pudding for breakfast before you go to work... By the way, do you like sweet, salty, or spicy?"
"Sweet ones." Andre licked his lips. "I wouldn't mind trying the others."
"As expected of you." Jiang You gave him a thumbs-up. "You know, in my hometown, sweet and salty tofu pudding is definitely an issue that can make people with different tastes argue. But for me, I like them all~"
"Hmm? Isn't it everyone's freedom to eat whatever they want? Why do we have to fight over something like this..." Andre didn't understand. Perhaps in his opinion, there was nothing that couldn't be eaten.
Jiangyou smiled even more happily. She liked Andre's calm and mature personality. He had high emotional intelligence and respected others. He would discuss everything with others... Well, it was just that his skills in repairing doors were a little lacking.
"Speaking of which, I was planning to talk to you about investment," Jiang You said. "I know our previous agreement was for three months... but, you see, our workshop is doing well now. We already have Holly as an investor who invested in ingredients, and we may have more new partners joining in the future. So, I want to establish a set of rules from the beginning so that we can easily apply them regardless of whether we add or remove partners."
Andre nodded: "You say."
"I plan to value the entire workshop's assets and determine 'shares' based on each investor's investment. Going forward, we'll no longer distribute dividends based on the previously arbitrarily agreed-upon ratios. Instead, we'll receive dividends based on the proportion of each investor's invested assets to their shares," said Jiang You. "I think this is the fairest approach."
Andrei pondered for a moment and understood what Jiangyou meant. "That makes sense, but I have a question. When I invested ten gold coins in you, you were broke, with only a few silver coins on you. Thanks to my initial investment, you quickly established yourself. And now you should have quite a bit of money on hand."
"Of course, some of this includes the reward from His Majesty the King, as well as the commissions and tips you earned as a private chef. I don't want to ask you for dividends that don't belong to me, but if we value my assets based on today's valuation, my holdings would be significantly reduced compared to the day I invested, and my equity would be damaged."
"That's right, so here's how I think about this." Jiang You pulled out her little account book. "The calculation will be based on the time you invested in me. However, the valuation process must include all my fixed assets at the time. You know, I wasn't completely broke back then, but I didn't have any cash."
Andre nodded. "That makes sense. I can accept that."
"Now that our business is expanding, my capital injection has indeed increased, which will inevitably dilute your shares. However, with the increased investment, our business will grow, and the profits it brings will also increase significantly. In other words, although your shareholding ratio will decrease, the dividends you receive will increase, which is beneficial to both of us. Alternatively, you can choose to continue to increase your investment."
This is the dilution of original shareholders' equity caused by capital increase and stock expansion.
Andrei simply said, "You should have calculated these accounts, right? How many shares can I get?"
Jiang You handed over an account. "When you initially invested, I owned this workshop and the land, along with the soybeans and magic rice in the warehouse. These properties and raw materials were worth approximately 80 gold coins. Adding my personal labor costs... well, roughly 90 gold coins. Including your investment, it came to 100 gold coins. In other words, your original stake was 10%.
"Now, the money we've earned, minus the dividends from Holly's food investment project, plus the new property I purchased with the king's gift, adds another 100 gold coins to our output value... Oh, and after deducting costs and taxes, a portion of that will count as profit on your investment. I'll still give you the agreed-upon 40% return on that. You only took the two gold coins in advance. Do you want to withdraw the remaining money now, or will it be considered as capital increase and continued investment?"
Andrei glanced at the accounts. According to Jiangyou's calculations, he could still receive a dividend of ten gold coins. Andrei figured the money he had on hand was enough for the time being, so he said, "Continue investing."
"So, our current industry valuation is 200 gold coins, of which I own 90% and you own 10%. We will also distribute the profits after deducting costs according to this share ratio in the future," Jiang You said. "But don't worry, based on our current profits, your monthly dividends will definitely exceed four gold coins."
"Okay," Andrei agreed simply. "I'll finish making the mold tonight and revise the investment agreement. I'll go to the High Priest tomorrow to get a witness. What about Holly?"
"I've already finalized the investment with him," Jiang You said. "Each high-end delicacy will be considered a separate investment project, and each individual project will be considered an investment collaboration between Holly and the Brewing Workshop.
"The principle is the same. We use raw materials, equipment, formulas... to make corresponding valuations, and then use the proportion of each party's investment to the project's initial funding as the dividend ratio. This way, there's no need for haggling; those who contribute more money and effort will naturally receive more benefits."
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