"All they think about is shipping out goods, and in the end, the goods are shipped out, but they can't get the money back. Aren't there enough bloody examples like that?"
Zhu Lidong lowered his head. He was under great pressure due to the decline in sales, and he tried his best to ship as much as possible.
"Mr. Lu, I will definitely get this money back," Zhu Lidong assured him.
Lu Feng didn't say anything, thinking about how rampant the triangular debt had once hindered economic development. It was commonly known as "IOUs," where some state-owned enterprise leaders would go out to eat without cash, carrying only a pen in their shirt pocket. When the debts accumulated, they would simply transfer the debts to a third party and ask them to collect them themselves.
Lu Feng glanced at the time; it was already 7 p.m. He stood up and said, "That's all for now. Let's go eat."
Everything started to accelerate. General Manager Jiang took the blueprints to the R&D company, and within three days the R&D company finalized the plan and began trial production. Jinbao VCD Company was registered and established with a registered capital of 50 million yuan. Jiafeng Electronics held 50% of the shares, and Jiang Wanmeng held 50% of the shares.
This 50% equity stake is a patent-based investment; the holder only has the right to receive dividends and no right to participate in company management.
Jiafeng Electronics has grown to have more than 20 subsidiaries under its control, but Lu Feng still has no interest in forming a group company.
Since most of these companies are tax-exempt, the advantage of establishing a group company is unified management and unified reporting of accounts and funds. For example, Jiafeng Electronics has two factories. One earned 10 million this year and needs to pay 2 million in taxes, while the other factory lost 10 million and does not need to pay taxes.
Without tax exemption policies, a group company was formed, with unified financial management and all funds concentrated at the group headquarters. If one side earns ten million and the other side loses ten million, the company's financial situation is that it didn't earn a single penny but evaded two million in taxes.
The VCD industry is definitely the big show of the year, with all sorts of rumors circulating outside. Many people want to interview Lu Feng, but Zhang Fengxia has turned them all away.
With the completion of the factory in Dongguan, Zhang Fengxia attended the ribbon-cutting ceremony, Zhu Lidong began to investigate the sales prospects of VCDs in the market channels, and Wei Yandan seized the time to make arrangements in terms of entertainment endorsements.
Lu Feng was extremely busy. Vice Mayor Liu called him repeatedly, asking what he meant and asking for his help. But now that the matter was settled, he had lost contact with him.
Jiang Xiaoyan called to say that she had finished a course of treatment and that Duoduo would be starting school soon. She had already booked her plane ticket and would be returning to Shenzhen tomorrow.
At the same time, Liu Cheng called to say that the overall design of the VCD was complete and it was currently in the testing and adjustment phase, and he wanted Lu Feng to come and take a look.
Vice Mayor Liu kept calling, and Lu Feng knew it was time for him to return to Shenzhen.
News of the VCD project's imminent launch has been circulating, causing increasing anxiety among industry professionals, who have been making more and more calls during this period.
Many companies have already sent people to reside in Suzhou and Shenzhen, eager to purchase Jiafeng Electronics' first batch of goods.
Take the item back, take it apart and look at it, measure it with a ruler. They have plenty of ways to do this. Don't doubt the manufacturers' ability to copy these days; their ability to "take a look" has terrified the whole world.
In an interview, Liu Cheng mentioned that the internal schedule indicated the first batch of products was expected to be off the production line on March 10th.
Mr. Zheng sat in his office, smoking and looking at the newspaper in front of him. Six or seven senior executives sat opposite him. Everyone was quiet. Since the end of the year, everyone had been waiting for the fierce battle in the small home appliance market.
Everyone's holding their breath, ready to fight, but so far nothing's happened. There's just some minor friction in the end-market, which is nothing compared to the intensity of last summer.
"On March 10th, the market decline of VCD stopped, and Lu Feng's rear was basically stable. He wanted to use VCD to penetrate the market and launch a breakthrough battle. If he lost this battle, Jiafeng Electronics would be finished."
“I don’t think he can win. The investment of 50 million is too high a cost. If the market doesn’t adapt, there will be big problems,” an executive pondered.
"Whether I'm a hero or a coward, we'll know in a few days. I can sense that this battle will likely kill off many small and medium-sized enterprises, but many more will spring up like mushrooms after rain. For me, this is an opportunity." President Zheng closed his eyes, touched the pendant on his chest, and muttered, "May Buddha protect me!"
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