"First, we need to develop the core components of television processors and pagers, and increase investment in international R&D cooperation. I still maintain that no matter what kind of Japanese devils they are, as long as they can help us, they are good devils."
Liu Cheng nodded, already understanding what Lu Feng was going to do, and said, "Then let's screen some international companies recently and communicate with them. International acquisitions can be quite troublesome, so let's be well prepared."
"Your budget for next year is 500 million, and you can spend up to 400 million. Use the remaining 100 million to invest in LCDs and TV motherboards," Lu Feng instructed.
The meeting lasted for nearly seven hours. After a simple boxed lunch, the group chatted enthusiastically. Around 4 p.m., Lu Feng walked out of the meeting room, took a deep breath, and stretched.
This past month has been one of the few peaceful times for the electronics industry. Everyone is busy with year-end promotions and the usual market battles, which Lu Feng has become too lazy to care about. The news and newspapers he has been reading these past few days have mainly focused on communications.
"Hello, Mr. Lu!" A clerk greeted Lu Feng as she passed by.
"good!"
Lu Feng nodded and walked towards his office. When he passed the strategic investment department, he stopped, pushed open the office door, and the head of the strategic investment department was stunned for a moment. The next second, he hurriedly stood up and asked, "Mr. Lu, what can I do for you?"
"How's the matter I asked you to do last time?" Lu Feng asked him.
“I’ve already gone to check it out. How about we find somewhere else to talk?” he asked.
Inside the reception room, Lu Feng sat down, a cup of tea placed in front of him. After the clerk left and closed the door, Lu Feng asked, "How is Hua Sha doing right now?"
"I approached them as an investor from Hurricane Capital in Hong Kong. They were also actively seeking external investment. My opinion on Huasha is that they expanded too quickly. They opened three factories in a short period of time and launched a fierce attack on the market with a low-price strategy. This caused hostility from the entire industry, resulting in a sharp drop in the profit margin of cosmetics. They also lacked subsequent funds, leading to a tight cash flow."
"By the way, everyone in the cosmetics industry is criticizing you right now!" the investment department head said awkwardly.
"Insult me? Why are you insulting me?" Lu Feng's face was full of grievance.
"Ms. Zhang was trained by you. Her approach is exactly the same as your approach in the electronics industry." He smiled awkwardly, thinking to himself, "You were attacked in the industry, so when your apprentice went to another industry, she was naturally criticized, and even her master was criticized along with her."
Lu Feng sighed. Now he understood why Patriarch Bodhi had told Sun Wukong not to mention him after they left, as some of the scolding was too unjust.
"How much money do they have left in their accounts?" Lu Feng asked.
"With less than a million and an extremely high debt ratio, it can be said that this is a bankrupt company. Of the three factories, two of them had their premises and machinery mortgaged to banks in exchange for cash flow. In the end, when this little bit of money was burned through, the company was truly insolvent."
Lu Feng rubbed his face and sighed. Zhang Fengxia was just messing around. The cosmetics industry market isn't big right now, it's not a high-tech industry, and the valuation isn't high. How dare she do this?
"I'm giving you a task. Go to Hong Kong, rent an office, set up a temporary office, find a few old Hong Kongers, and after the New Year, go talk to them. Invest ten million, take a 51% stake, and get absolute control. You need to have some control over the development path, and don't limit production to cosmetics. Household products are the main market now."
"For products like laundry detergent, soap, and toothpaste, use low prices to capture the market and engage in differentiated competition. At the same time, in the cosmetics sector, launch a new brand with a trendy name, aiming to compete with international cosmetics. The price doesn't need to be too high; the product quality just needs to be similar to other products in the same price range. However, the packaging must be attractive, and you must pay attention to controlling the sales channels. Do you understand?"
"I see!"
Lu Feng nodded and stood up. If this couldn't be saved, he really had no other choice. Lu Feng didn't really know much about cosmetics, but at least there was a real market for things like laundry detergent, soap, and toothpaste, and the demand was huge.
Even if we can't become a cosmetics brand, it would be fine if we could become something like Liby, Safeguard, or Head & Shoulders!
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