Jiafeng Electronics is currently in good shape, with monthly profits of around 15 million yuan and annual profits estimated at around 200 million yuan.
According to the company's initial valuation, Jiafeng Electronics had extremely high debt, but considering its future prospects, the debt of more than 200 million yuan is not a problem at all.
Currently, the company's biggest monthly expense is employee salaries, which have reached over seven million yuan. With fewer than 20,000 employees, only Jiafeng Electronics can afford such high salaries.
The finance manager suggested that salaries could be appropriately reduced, as Jiafeng Electronics' employee costs were too high compared to other companies with more than 10,000 employees.
"If we can reduce our salary costs by two million, our monthly profit can reach as high as seventeen million. If we cut costs in other areas, twenty million is not a problem."
Lu Feng shook his head and said, "We can't cut back on this aspect. Three to five million a month isn't much of a deal; it won't be of much help. What's the situation with the valuations offered by some domestic and international financial companies?"
"Some time ago, some financial institutions in Hong Kong suddenly conducted an assessment of us and issued a valuation report. These included Tai Fook Financial Group, Wing Fung Financial, Bailihao Investment, Chase Capital, and Goldman Sachs Capital. Goldman Sachs Capital is under the Asian headquarters. These companies are surprisingly consistent, all valuing us at one billion!"
One billion?
Lu Feng raised an eyebrow, sat there pondering for a while, and then asked, "What do you all think?"
“I think this might be something our competitors paid for, setting a price for us first, so that if we want to raise funds later, investors can use this report to trip us up and drive down the price,” Zhu Lidong said.
“I have a similar opinion, but valuing us at 1 billion is underestimating us. This factory alone is worth 300 million. With the market so good right now, a 1 billion valuation is really underestimating us,” Zhang Fengxia continued.
The crowd started talking all at once, and the scene became a bit chaotic. The finance manager pondered for a moment and then said, "Could it be that these financial institutions want to get involved?"
Lu Feng's heart skipped a beat upon hearing this, and he suddenly realized something. He asked, "Do you have the sales data for foreign brands for the past year?"
"Yes, but it's not very detailed," Zhu Lidong said.
"Give it to me, let me see it!"
Zhu Lidong turned to a man sitting behind him and said, "Xiao Zhao, go to the data cabinet in my office and get the sales data sheet for foreign brands."
A few minutes later, a data sheet was placed in front of Lu Feng. The data showed that the sales of the sixteen foreign brands in China had increased.
“Their market has been growing. After all, everyone wants to buy foreign brands because they have advanced technology and it's prestigious,” Zhu Lidong said. “We haven’t affected them too much.”
"From now on, you can't do data like this. Putting a bunch of data together for comparison and making a visualization, you know?" Lu Feng put several folders together, pulled out a piece of white paper and drew a simple data change chart.
"We need to do not only compare monthly sales, but also annual data, market and brand growth, foreign brands' growth rates, and domestic and foreign brands' growth rates. It needs to be comprehensive!"
The heads of various departments present looked somewhat uneasy. There was so much data that it would require a specialized department to create spreadsheets, and the company no longer does these things.
While domestic data is indeed quite crude, international business data is far from crude.
Zhang Fengxia looked at Lu Feng with a hint of experience in her eyes. This kind of data comparison can show the real growth. Only some large financial companies on Wall Street would do this kind of data.
Ten minutes later, Lu Feng drew seven or eight diagrams, put down his pen, sighed, and said, "We've been targeted by foreign capital."
"ah?"
"Last year, the domestic TV market grew by 43%, while foreign brands saw a 39% year-on-year growth rate, basically keeping pace with the market, but it's clear they've fallen behind."
Lu Feng held up the chart in his hand and said, "The data may not be very accurate, but it definitely reflects some facts. In the past nine months, the market has seen a month-on-month growth of 130%, which is an absolute boom period. However, the growth of foreign brands in the past few months has been less than 27%."
“Looking at their own data, they are indeed growing, but compared with the overall environment, they are experiencing negative growth. Under such circumstances, action must be taken. This data is very inaccurate, and my calculation is also quite rough. They must have more accurate data.”
"These foreign brands are the ones who value these financial institutions. They set the price first, and then they start investing or acquiring shares," Lu Feng said in a deep voice.
"Investment is also acceptable!" Zhu Lidong thought for a moment and said, "It can quickly improve our technology."
Lu Feng knew all too well the domineering nature of foreign capital. Not to mention now, even a decade or two from now, if foreign capital had a technological advantage, it would seize absolute control.
You're spying on someone else's technology, and they want you to be their factory. Nobody's a fool.
Lu Feng never intended to turn Jiafeng Electronics into an OEM manufacturer; he certainly didn't want to use Jiafeng Electronics just to make money!
"Let's leave it at that for now. All departments should work on their data to improve. Also, I'd like to announce that there will be an internal reorganization before the end of the year, which will involve the creation of many new departments. This is to adapt to the company's new strategic goals."
"What we want to do is not just televisions. Our goal is to become an electronics group. Diversification has always been our pursuit. We need to have big plans and big strategies to form an industrial platform and industrial chain, and ultimately achieve industrial complementarity!"
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