Technological Empire Starts From Shanzhai System

Chapter 36: Gao Sheng wants to take a stake?
Chapter 36 Gao Sheng wants to buy shares?

Shaking his head slightly, Lin Xuan was not complacent because of Yan Wenbo’s praise. He shook his head modestly and said goodbye to Yan Wenbo’s praise:

”Mr. Yan Wenbo’s reputation is too high. Now I’m writing an article, so if possible, it’s best to tell me the purpose of this time.”

”Sure enough, he is a young hero. He acts decisively and neatly. This may be the reason why you can help a Hantang company that is on the verge of bankruptcy to get out of the predicament and go further.”

After a pause, Yan Wenbo smiled and said:

”The reason why I came here this time is because I noticed the crazy growth of Hantang Technology Company’s performance, after the research of our Gaosheng Investment Research Department.

It was discovered that Hantang Technology Co., Ltd. is facing a shortage of hundreds of millions of yuan in funds recently due to the construction of a new factory and needs our help, so we came here to give Hantang Technology a little help. ”

Sure enough, you want to invest in shares...

Lin Xuan nodded slightly, not very surprised.

After all, Gaosheng Investment is a company that aims to make money. All their goals are to make money, so they won’t come to find themselves when they have nothing to do.

When Gaosheng Investment came to the door, Lin Xuan roughly guessed that Gaosheng Investment should have discovered the potential of his company, so he wanted to come to angel invest in himself.

”I am very grateful to Gaosheng Investment for its optimism, but at present, our Hantang Technology Company has no plans to introduce new shareholders.”

Lin Xuan bowed his hands and rejected Gao Sheng Investment’s investment words.

Although Hantang Mobile Phone Company is indeed facing the dilemma of insufficient production capacity, the company’s development and construction funds are indeed insufficient.

Because Hantang Technology Company has to pay 90 million for the construction of a new factory for equipment alone, plus 20 million for plant construction and modern factory renovation and decoration, all of these add up to a terrifying 110 million shortfall!

The 110 million shortfall is based on the profit of 40 yuan for each Hantang 2 labor version mobile phone. Lin Xuan needs to sell 3 million mobile phones to earn back!

And the seriousness of the problem is that Lin Xuan needs to pay the 110 million funds within the corresponding contract period after the factory is successfully constructed.

If Hantang Technology Company fails to pay the 90 million equipment payment on time, the equipment manufacturer will dismantle the ”mobile phone production and assembly line” according to the contract, leaving an empty factory building for Lin Xuan.

Since then, Lin Xuan has blindly and arrogantly invested in a factory with an annual output of 12 million mobile phones. As a result, the reputation of being a joke after eating too much will accompany Lin Xuan all his life.

Lin Xuan is short of money, he needs to pay 110 million in one and a half months.

But he is not short of money, because there is a magical thing called ”commercial loan” in this world, which can cause the magical result of ”taking future money to spend now”.

So although Lin Xuan has no money and is very short of money now, he can build a new factory with an annual output of 12 million mobile phones in one go, relying on the miraculous result of being able to spend ”the money in the future” now!

Therefore, at this time, Lin Xuan was able to justly reject Yan Wenbo’s ”help”, and there is a magical thing called ”commercial loan” that can ”take money from the future and spend it now”.

Lin Xuan does not need the help of Gao Sheng Investment at all, because Gao Sheng’s so-called help is to invest in his company, and then get a share of Hantang Technology Company whose market value is destined to skyrocket like a mutation in the future.

Every time Gao Sheng invests more than one percentage point of shares in Gao Sheng, Lin Xuan will regret it more painfully in the future.

Even if Lin Xuan can get many tangible and intangible benefits after Gaosheng Investment becomes a shareholder, it will be easier to enter the domestic or foreign market, but Lin Xuan is more willing to go step by step slowly!

Therefore, it is not advisable to let Gao Sheng invest in the shares!

”Mr. Lin, your message doesn’t seem clear enough.”

Yan Wenbo suddenly said something meaningful.

”Appreciate further details.”

Lin Xuan looked at the other party curiously, wanting to see what the other party said.

There was a mysterious smile on the corner of Yan Wenbo’s mouth, and then he said slowly:

”According to the information of our Gaosheng Investment, all the major mobile phone companies have filed a case to develop their own mobile phones for migrant workers, including Kejian, Amoi, TLC, and even Bodao mobile phones!”

”So many mobile phone companies are planning to develop ultra-low-cost mobile phones for migrant workers.”

Lin Xuan pondered for a moment, feeling a little surprised, but after thinking about it carefully, he took it for granted.

After all, although the price of a mobile phone for migrant workers is only 299 yuan, because the price is only half of the current mobile phone, even if the mobile phone can sell well, the profit earned by a single mobile phone is only a mere 20 to dozens of yuan.

Compared to the one or two hundred profit that can be earned from a mobile phone now, the profit of twenty or even tens of dollars seems insignificant, and it seems not very exciting.

After all, selling a normal mobile phone can match several or even dozens of mobile phones of migrant workers, which does not seem to be a good business.

But this is just what people take for granted. Is it really very little to earn 20 or even tens of dollars for a mobile phone?

Quite a few!

Which business can earn twenty or even dozens of dollars in profit by selling one thing?

rare!

Although it is a magical age where pigs can be blown up by the wind, the problem is that if you want to be a pig on the cusp, you have to be on the cusp, otherwise there will not be only a few people who can become rich now!

So although selling a durable mobile phone for migrant workers can only earn 20 or at most dozens of dollars in profit, the gross profit rate is only 7% to a maximum of 20%.

But according to the words in a certain theory of capital, if there is 10% of the profit capital, it will be guaranteed to be used everywhere; if there is 20% of the profit capital, it will be active;

If there is 50% profit, capital will take risks; for 100% profit, capital will dare to trample on all human laws!

The 7% profit is only the benefit of ordinary small manufacturers. For those big manufacturers, their profit can reach 40 or even up to 670 yuan per unit, which means the profit can reach about 20%!

20% is enough to make the capitalists eager to get active!

And why is there such a big difference in the profitability of large factories and small factories?

The reason for this is actually very simple, because the big manufacturers definitely sell more mobile phones, so the big manufacturers have a large order invisibly, and if they hold a large order, they are qualified to negotiate prices.

In this case, large manufacturers can get lower priced accessories at a lower price, coupled with the advantages of large-scale production and semi-automated production of large factories.

When mobile phones are mass-produced, the overall cost will only be lower than the cost of ordinary small mobile phone factories.

So when the final profit is calculated, it is not surprising that the profit of a large mobile phone factory will be twice or more than that of an ordinary factory.

Thank you readers for voting and rewarding yesterday!

In order to repay the support of the brothers, after careful consideration, I decided to continue the four updates of 8000 words today to repay the support of the brothers.

Ask for tickets and tips!

(end of this chapter)