"President Lu, the direction is not wrong. If Jiaming Foods wants to obtain approval, land and policy benefits, it has to assess the risks. Your company's risk level is relatively high. We talked to your team before, and they said they could use several factories as collateral. However, we recently learned that those factories do not belong to you."
“The factory is indeed not ours; the current factory buildings are all rented. However, the imported production lines are ours, and the market is ours too.” Lu Feng handed the documents in his hand to the person next to him and said, “I believe that Jiaming Foods will have great development in the future, and we haven’t raised any funds yet, so there won’t be any problems with funding.”
“You don’t have any real businesses. I’ll ask you a question now: you have so much money, but you haven’t invested it in anything real. Will you one day run away with the money abroad?”
"It's not that I'm not investing in real industries, but rather that I will gradually build the new factory area according to the previously signed contracts."
"In other words, you don't have money right now. You're competing with Wahaha in the market, which consumes a lot of capital. If you don't have money, you might not be able to survive and could go bankrupt..."
"Wait a minute!" Lu Feng hurriedly interrupted him, saying, "We won't be unable to hold on. In fact, we currently have the number one market share. You can take a look at these documents. We don't have any financing. We can now seek financing platforms in the south, or even in Hong Kong and overseas markets."
"Then why don't you go? You should write in your terms that the free land is no less than 1,000 mu, the factory construction is divided into five phases, the interest-free loan funds are no less than 20 million, and it cannot be used as special funds. Jiaming Foods can misappropriate these funds, and only needs to return them within three months. If it exceeds three months, it will be calculated at the annual interest rate. If it exceeds five months, it will be considered a breach of contract. Can we consider that you are transferring market risks?"
“I need funds now. Why don’t I seek financing? It’s because if I do, the market will definitely take a huge bite out of me. My market is risk-free. Jiaming Foods has been winning all along. As long as profits increase, Jiaming Foods’ daily sales are approaching one million.” Lu Feng showed the documents to everyone and said, “Wahaha’s sales exceeded 100 million last year, and we can exceed 300 million this year.”
"But your assets are too risky. As far as we know, Jiaming Foods has debts exceeding 100 million yuan. You own 65% of the shares. Mr. Lu, it's not easy for you to have debts of 65 million yuan in your business."
The two sides argued endlessly, with the other side focusing on Lu Feng's debt ratio and ignoring his market performance. They did not recognize its value and even implied that Lu Feng's methods were not ethical.
The talks started at 6:30 p.m. and lasted until after 9 p.m. Lu Feng's voice was hoarse. These people were completely unyielding. Director Cai had brought in a group of people who considered themselves professionals. The fundamental problem was that they believed any debt was a source of danger and that it was still the same old supply system.
Director Cai has already left. Before leaving, he said he would go back and report, hold a meeting, and discuss it again in a few days. This matter is a major investment issue, and they will consider it carefully. However, they feel that if Lu Feng can handle the debt problem well, everything will be fine.
"Damn it!" Lu Feng slammed his hand on the table and shouted, "I've already taken care of all the debts, why would I need to waste my breath on them?"
“These people want absolutes, and you are carrying risks.”
"It's not a risk, it's a mindset." Lu Feng was furious. He wanted to say it, but then felt it was pointless, so he said irritably, "Give out grain coupons instead!"
Zhang Fengxia didn't even eat dinner. After organizing the documents, she took them back to her room and called Gao Zhiwei to tell him about the day's events. Gao Zhiwei sighed, knowing that things weren't so simple. In the investment promotion offices of various provinces, Jiaming Foods was practically a disgrace.
What we can do now is prepare for financing, even if it means giving up more equity. The current situation for Jiaming Foods is that if we can weather this storm, the future will be bright.
For two or three days, the two sides did not make any contact, but some newspapers kept publishing news about Jiaming Foods, especially about its financial problems.
The only company in the country with debts exceeding 100 million yuan. How many companies in the country can come up with 100 million yuan in cash now?
No, not a single one.
Lu Feng built his empire to its current state by exploiting local governments. If Jiaming Foods were to collapse, would it mean that each province would have an additional huge debt to settle?
More newspapers are discussing whether, under the current circumstances, Jiaming Foods' example has set a bad precedent for the free market, and whether others will follow suit.
The product was selling like hotcakes in the market, but newspapers were full of negative reviews, creating a severely polarized image.
Inside the conference room, a briefing session was underway. The newspapers were laid out on the table, and the people present were engaged in a heated debate.
"The issue now is not whether or not land and loans are provided, but whether the existence of such enterprises creates unfairness for other enterprises. Such enterprises are too risky, expanding without cost, which is serious speculation and profiteering."
“I also think it’s too harmful to society. Allowing people like Lu Feng to run rampant in the market will inevitably cause damage to other companies. If they are not punished, more companies will follow suit, and the consequences will be unimaginable.”
"I believe that since it is a free market, anything not prohibited by law is permissible."
“That would have been complete chaos. People would be doing whatever they wanted. We’ve talked to the other brothers about their identities, and they also think it’s too risky. It’s not unfair to pin this crime on him for speculation.”
"Then what should we do? Detain them first?"
This year has been a year of confusion. How free is the free market? Many people believe that once it becomes free, all sorts of cheating and deception will emerge. From a planned economy to a free economy, many places are feeling their way across the river, and they are very afraid.
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