Lu Feng's proposed solution was quite detailed and feasible. They talked until 6 p.m. and finally settled everything.
Both parties signed a pre-acquisition agreement. Lu Feng was required to deposit the full amount of US$53 million into a designated account for freezing. Rohm Group was required to grant Jiafeng Electronics access to 27 core intellectual property rights of Ruixin Laboratory in advance. Jiafeng Electronics, in turn, had the right to inquire about the core technologies.
Simply put, he was worried that if he took the documents back, the people there wouldn't understand them, and he needed to maintain communication at all times. Although it was written in the contract, Lu Feng felt that after it was all over, nobody knew whether they would answer the phone or not.
They had dinner together that evening. After returning to the hotel, Jin Tingting checked the contract again and looked at Lu Feng with some suspicion, asking, "Will you abide by the contract?"
"Why shouldn't I abide by the contract?" Lu Feng looked at her and said, "Don't look at me with that suspicious look, okay?"
"I don't have it, this money..."
"A copy of this contract will be submitted to the relevant departments for review later, so don't worry!" Lu Feng patted her on the shoulder and said, "As the supervisor, would I betray my own people? Alright, I'm going back tomorrow."
If it were before, she would have unconditionally trusted Lu Feng, but now she always felt that this person was secretly doing things behind her back. She muttered a few words but didn't say anything else.
With the contract successfully signed, things were finally settled. Back at the hotel that evening, Lu Feng held a celebration party. It was already January 3rd, and there were only seven days left until the Chinese New Year.
Inside the restaurant, Lu Feng raised his wine glass and addressed the crowd: "Thank you all for your hard work. The smooth progress of the acquisition requires everyone's busy schedule. In any case, we have successfully brought Ruixin Laboratory under our control. I've booked flights for everyone tomorrow. The Lunar New Year is just a week away, so I wish you all a prosperous Year of the Dog in advance!"
"Thank you, Mr. Lu!"
The group clinked glasses and drank their drinks in one gulp. Liu Cheng seemed quite excited. After this acquisition, the R&D company's technological accumulation in China would reach a new level, and it wouldn't be an exaggeration to say that it was a leader in the communications field.
He held his wine glass and talked to Lu Feng for a long time. After listening, Lu Feng felt emotional. It was sad that a company could become a top company by eating the leftovers that others didn't want.
"In addition to communications, we'll establish another chip company this year, and we'll probably need to open a factory as well. This factory shouldn't be placed under a large group; I mean, the R&D company should be directly in charge!" Lu Feng instructed Liu Cheng.
“If we put it under the R&D company, I’m afraid President Wei and the others will gossip,” Liu Cheng said with difficulty. “After all, it’s not quite in line with the rules for production plants to be placed under large groups.”
“Don’t think too much about it, I’ll go talk to her.” Lu Feng pondered for a while and said, “The pagers are still quite urgent. The New Year is just around the corner. Once the relevant materials arrive, I hope everyone can work harder. The domestic market is really tight. After the design drawings are completed, the factory still needs to make molds and debug the production line, which takes a lot of time!”
Liu Cheng nodded repeatedly, understanding Lu Feng's meaning. He said, "We can catch up on the progress during the Spring Festival by forming a task force and trying to get the product out by March."
“There’s no need to exploit them. Give them the day off on New Year’s Eve. Let them be family members. There’s always been criticism of us in this regard. Let the shareholders take the lead in this task force first.” Lu Feng muttered to Liu Cheng while holding his wine glass. “I’ll give them a red envelope later. You can have their food and drinks. It won’t cost much.”
“I understand!” Liu Cheng hesitated for a moment before saying, “Many engineers poached from foreign companies have complained about our overtime work, saying that we don’t pay overtime. This matter…”
“President Liu, we’re an engineer-driven company, but we can’t just spoil them. The R&D team is already huge, and internal competition is fierce. You need to focus not only on R&D, but more importantly, on management!” Lu Feng sighed as he stared at him. “The salary plus stock dividends are already very high; you won’t find another company like it in the whole country. You can’t have your cake and eat it too.”
"I'll go back and strengthen management in this area. I've also recently promoted several vice presidents who are quite good at administrative management," Liu Cheng replied solemnly.
"We need to strengthen our corporate culture and not let ourselves be held hostage by these people. If they earn one million, they want two million more. For some core R&D personnel, with high bonuses, we must have management methods to prevent them from quitting at any time. If they have earned enough money, they can just quit tomorrow because they are unhappy. How much will the company lose?"
“I wanted to bring this up last year, but you did a great job. You did a very good job with everything from VCDs and TVs to home appliances, so I didn’t say anything. But it has become a problem.”
"When focusing on talent development, we must design a good career advancement path. We shouldn't invest a lot of money to train a young engineer only to have him poached by another company. We should sign agreements when necessary, and we must have all the necessary strict management systems in place, as well as the necessary humanistic care." Lu Feng thought for a moment and said, "For some senior executives who already have money, we need to find ways to address their needs. Once they have money, their motivation will be insufficient."
“This is indeed a problem. After a group of senior executives received bonuses, they were not as enthusiastic about their work as before,” Liu Cheng agreed.
"This problem is easy to solve. We need to keep them hungry. When the company goes out for study tours, we can take them to some high-end places. For example, when we go to New York for study, we can rent a villa for them to rest, or go to a high-end hotel. We can't reimburse all expenses, but we can reimburse half of them!"
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