“Ten Jiao Enfans wouldn’t be a match for Lu Feng. The only hope is to rely on Sichuan to wear him down. I’ve already contacted Haier and Hisense; an even more brutal competition is about to begin.” Mr. Li’s eyes flashed with a fierce light as he said, “His cash flow won’t last this long!”
"After all this time jumping around, you've become someone important," Li Yelong said arrogantly. "But in the end, you're just cannon fodder, not worthy of being on the same level as me."
Mr. Li glanced at his son, sighed inwardly, and was slightly disappointed. Although Li Yelong appeared carefree and cynical, he was still quite capable; he just overestimated himself.
If Li Yelong had even a third of Lu Feng's skill, he would have retired.
The following day, several newspapers published reports of Jiafeng Electronics' successful acquisition of Tianying Copper Industry, which triggered another earthquake in the local business community. Many people thought that the previous struggle was over, but little did they know that it had only just begun.
As everyone looked at the newspapers, they sensed a glimmer of fire. The headlines were all quite similar, and it was immediately obvious that Jiafeng Electronics had provided the copy, while the newspapers were merely responsible for publishing it.
One particularly important passage reads: "Jiafeng Electronics is based in the electronics industry and looks to the entire industry chain. We will explore more upstream and downstream industries. We have enough confidence and ability to forge an unstoppable path. Since the birth of the Weipuda brand, it has been widely welcomed by the market."
The acquisition of Tianying Copper Industry is an important step in the company's strategic plan, but it is by no means a reckless rush into the copper industry. We welcome cooperation from any company in good faith. If no one is willing to cooperate, we can also be self-sufficient. In the future corporate plan, Jiafeng Electronics will develop more industrial support and plans to share the industrial chain with more small and medium-sized enterprises!
Many companies in local chambers of commerce and copper industry associations were dumbfounded when they saw this statement. What was Lu Feng trying to do?
Judging from this statement, it seems like they want to form cliques and have a chat with Haochen Copper Industry!
Lu Feng went to bed early last night and woke up at around 5 a.m. He held a morning meeting, where he reiterated the issues from yesterday and inquired about recent sales in the market.
With the opening of markets in the two provinces, daily sales have soared from around 1,000 units to 3,000 units, and the factory's production capacity has reached its limit.
At this rate, selling a million units a year shouldn't be a problem.
The problem is the low profit margin. The profit from selling one unit in Jiangsu Province is around 100 to 200 yuan, but in the other two provinces, the profit is almost zero, and the losses are too great.
The atmosphere in the meeting room was somewhat heavy. Everyone was happy about the high market share, but the problem was that even with high sales, they weren't making money. This factory was a money-burning machine, losing tens of thousands to hundreds of thousands of yuan every day.
"President Lu, I think the most urgent task right now is to solve the profitability problem. We must launch a product that makes money," the finance general manager said with a serious face.
How much money is left in the account?
"21.76 million. If the market remains unchanged, this money could last for two years. But Mr. Zhu's answer is that it might be burned up within the next month."
Lu Feng raised an eyebrow upon hearing Zhu Lidong's assessment: burning through 20 million in a month?
This must be an incredibly fierce competition involving massive spending. The most terrifying subsidy war he had ever seen was the money Alibaba and Tencent were throwing around in ride-hailing apps, burning through 100 million yuan a day.
Twenty million now is comparable to several billion, or even two billion, in later generations!
Lu Feng took a deep breath and said, "1991, huh? It really is a special juncture. Don't think about making a profit yet. Which big company makes a profit right away? If a big company wants to get rid of losses in the short term, then what awaits it is death. It's just burning money, right? I'd like to see how much money these state-owned enterprise leaders dare to burn with me!"
No one spoke at the scene. The entire senior management had always disagreed with Lu Feng's plans, but they just didn't say it to his face. Among them were many former senior executives of state-owned enterprises.
Their idea was to follow the lead of state-owned enterprises, ride their coattails to make money, and not only would they earn more, but they would also be risk-free.
It's certainly easy to make money by riding on the coattails of state-owned enterprises now, but what about in a few years?
Those that died were all companies that were taking advantage of the situation.
"Didn't you say there was a new market report?" Lu Feng asked the marketing department staff.
"It's not our data; it comes from the national survey on home appliances, as well as last year's GDP growth data!"
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