There are many ways to make money, but even more places to spend money. With two factories and more than 40,000 employees in total, wages are a huge expense. There are also many unseen expenses, such as canteens, business trips, heating for employee dormitories, work clothes, factory maintenance, and daily office wear and tear.
Every day when I open my eyes, I have no idea how much money this factory has consumed!
"After deducting the budget applied for by the marketing department, if there are no other initiatives this year, we should be profitable by the end of the year, with an estimated profit of around 80 million," the finance manager said.
Eighty million?
For such a large company that designs multiple industries, this amount of money is pitifully small. If the market fluctuates even slightly, this amount of money will not be enough to fill the hole.
"President Lu, my idea is to first cut the marketing department's expansion budget. The advertising budget has been too high, so we can also cut some of it. This way, the year-end accounts will look much better. We can pay off the bank loan and still make a profit of about 100 million yuan, reducing the company's debt!" He said, flipping through the reports. "The new factory area is also under mortgage."
Looking at this old guy, Lu Feng really suspected that he was an undercover agent sent by the bank.
"Why are you always thinking about paying back the bank money?" Lu Feng stared at him, puzzled. "I know the new factory is all borrowed. As long as the debt doesn't exceed 150%, it's fine. The market prospects are good. Even if the debt reaches 200%, it's a small matter. Without real assets as collateral, we can gamble our future on the table."
"The risk is too high!" The finance manager's face was all scrunched up.
"Something's happened, are they going to arrest you?" Lu Feng asked about other aspects, took the report and looked at it. He hadn't planned to pay off the debts of the new factory area before 2000.
If you can delay it, then keep delaying it.
"Dongguan Municipal Government promised 30 million yuan in interest-free loans, but it hasn't arrived yet?" Lu Feng wondered.
“We’ve called several times, and they’ve said it will be in two days.”
"Hurry up, do you think we can let him drag his feet on getting our money back? My factory has already started production, and I still have to spend some money every week to send the motherboards to Hefei for assembly. Get this money back to me before June."
Lu Feng spoke with such confidence, as if he wasn't borrowing money from He Jiale, but rather as if He Jiale owed him money.
Sitting to the side, Feng Zhiyao was also amazed. Such a money-grubbing spirit is something most people don't have.
"We still haven't gotten back the 18 million from the Northeast?" Lu Feng asked, flipping through the pages.
"President Zhu went to urge them several times and made several trips, but he was always turned away!"
Lu Feng looked at the money. He had heard about the rampant triangular debt, especially in areas with a high concentration of state-owned enterprises, where it was common for people to issue IOUs to each other.
This matter once hindered the region's economic development, and it seemed to remain unresolved throughout the 1990s. Many accounts eventually became uncollectible. When people took the accounts to Zhang San, Zhang San said he had transferred them to Li Si. When they went to Li Si, Li Si said he had transferred them to Wang Wu.
"Tsk!" Lu Feng smacked his lips and said, "People who owe money these days really have thick skin!"
Everyone in the room was staring at Lu Feng. Just now, you didn't seem to be like this when you owed money to others. How did it become shameless when others owed you money?
"This money has to be recovered. Such a large amount could easily become a bad debt." Lu Feng looked at the ledger and thought for a moment before saying, "I have nothing to do these next few days, I'll go and collect it!"
"Going to the Northeast?" Feng Zhiyao seemed a little excited.
After asking a few simple questions about the finances, Lu Feng could tell that the finance manager was under a lot of pressure. At the end of last year, when the first round of financing failed, he even sat in his office and cried.
Lu Feng offered a few words of encouragement, indicating that he wouldn't have any major expansion plans or aggressive deployments this year, mainly waiting for the R&D company to produce results.
As they left the conference room, Feng Zhiyao followed behind Lu Feng, excitedly saying, "I heard from my dad that my ancestors were from Northeast China!"
“Really? Come on, tell me, what’s up?” Lu Feng said to him.
"Then...what?" Feng Zhiyao was full of questions.
"Forget it, you're not pure anymore. Remember, the way you greet people is different there than it is in Hong Kong," Lu Feng said with a hint of mockery.
"What should we say when we greet each other?" Feng Zhiyao asked curiously.
"Just stare at him and ask him, 'What are you looking at!'"
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