“As I said before, the factory produces high-end products and is also geared towards export,” Xing Baohua said.
Liu Haibo nodded and said, "Even if you can sell a million a year, it's not enough for our investment. The return on investment is not only long-term but also low."
"How do you know it can sell for a million?" Xing Baohua's question immediately stunned the three of them.
These three were probably misled by that small, run-down factory and didn't realize at all that there was enormous wealth hidden inside.
Xing Baohua always regarded the three individuals as venture capitalists and tried his best to minimize the equity stake held by venture capitalists.
These three people don't understand the rules of investment, and they don't even bother to evaluate Xing Baohua and his factory.
They wanted to invest in the factory, not Xing Baohua.
Investing in people or factories? This concept needs to be clearly understood before investing. For example, Jia Yueting of LeEco, even after the company went bankrupt, still had a group of people following up with investments. That's investing in people; they didn't lack projects, even conceptual ones attracted investment.
That old man, Mr. Mou, who traded canned food for an airplane—you could call him a conman, but he actually had some skill; he pulled off a brilliant scheme to get something for nothing!
They assembled over 500 wagons and went to their Russian big brother's place to exchange them for 4 airplanes. Forget about the quality of the airplanes and whether they can fly.
Take canned goods and airplanes, for example. Aren't they unequal concepts? It's easy to think of exchanging something worthless for something valuable, like finding a bargain.
Grandpa Mou's reputation soared, and the more mysterious his attire became, the more believers he attracted. If he had any projects or anything like that, who wouldn't want to get involved and make a fortune along with him!
Let's blast a hole in the Himalayas and let warm currents from the Indian Ocean flow in. Let's turn the loess and sand of Northwest China into a "Jiangnan-like landscape."
This idea, this project, plus a leader who's practically deified—it's no surprise that not only individuals are investing, but many large corporations are also contributing money and effort.
That's how the richest person in China became known back then. They accumulated a lot of money, and then they spent it all. After a while, many people realized they'd been scammed.
The richest man has become the most indebted. He's spent so much money, where is he going to find the money to pay it back?
He spent over a decade in prison and came out penniless, owning only two hundred houses, all in San Francisco.
Xing Baohua's words made the three of them think for a moment, and they all realized that although the factory was small, it was just starting out. Xing Baohua was a capable man!
The telephones and stereos are all export-oriented. If they sell these products and build a reputation, making several million a year wouldn't be a problem. Investment is a long-term endeavor, and the three of them understand that.
“One percent per person is too little. How about we each get 5%?” Liu Haibo said.
Xing Baohua shook his head and said, "1% is also something I've thought about carefully. Our factory doesn't just produce a single product. Moreover, I want to create an equity pool with the remaining shares to attract talent."
"What is an equity pool?" Sun Changjie asked curiously.
"It's about distributing shares to the factory employees. It's different from what you're doing. It won't dilute your shares for the time being," Xing Baohua explained.
"What? You only gave me this little bit? And you want to split it up? Damn it, I've never seen anyone as heartless as you," Zhang Taoming cursed anxiously.
"Taozi, calm down." Liu Haibo stopped Zhang Taoming from shipping the goods again, and instead asked Xing Baohua, "Let's discuss this among ourselves. We'll talk about it later. Let's eat some watermelon first."
Xing Baohua didn't expect the other party to agree immediately; he wasn't the one in a hurry. Although lacking funds for development, the business could still operate.
The scene fell silent, a little awkward, and no one spoke. Xing Baohua ate a slice of watermelon and, trying to start a conversation, said, "I heard that making cars in the South Island is quite profitable."
Liu Haibo waved his hand and said, "There's not enough money. It's too much trouble to make one or two vehicles, and the waters over there are very deep. It's even more dangerous than dealing with circuit boards outside."
Sun Changjie interjected, "I have a friend whose older brother died over there. It's too far away, and the relationship isn't close enough. It's also easy for something to happen on the way back."
Liu Haibo nodded and said, "Hua Zi, you can see that, right? We're only good at this little corner of the country. Once we leave the province, nothing works for us."
"Since you're buying cassette tapes, you might as well go for the official versions, set up a publishing house, and become a distributor," Xing Baohua suddenly said.
These words startled the three of them. Then Liu Haibo smiled and said, "We can give it a try, but the path won't be easy?"
His point is that selling his own goods would put the money in his own pocket, while if he were to develop and publish them, it would be the country's profit. He's not even working properly at his own workplace, so why bother making that kind of money?
"What I mean is, could we contract out a publishing house like this, and then, during the later restructuring, we could spin off several independent companies, such as a talent agency, an entertainment company, and a distribution company, etc.?" Xing Baohua said after thinking for a moment. Actually, he was just saying it casually.
If the other party can make it happen, it will greatly benefit his products later on. Not to mention the distant future, just in the near future, high-quality test records will play a significant role in the sales of his audio systems.
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