Reborn, back to a small county town to become a wealthy family

Chapter 719 Luo Yang is the one who knows how to make empty promises.
A little after 2:30 a.m., Luo Yang left Gray Rhino with Xiang Wanwan and Chu Jing.

When they left, crude oil prices were already fluctuating around $80 per barrel. If nothing unexpected happens, crude oil prices will gradually recover to above $110 per barrel in a spiral upward trend.

Back at the hotel, Xiang Wanwan followed Luo Yang into a room without any hesitation.

"Uncle, you won't blame me, will you?"

"I just think it's a bit childish."

Luo Yang gently pinched the porcelain doll's nose: "I have a large enough platform for you to showcase your talents. You can compete with each other, but don't undermine each other. I don't like that."

He simply doesn't have the energy to deal with these things.

If it really gives you a headache, you'll definitely get rid of them all.

"Oh."

Xiang Wanwan realized that Luo Yang wasn't joking, so she obediently said, "Uncle, I won't do it again."

"Okay, go take a shower quickly."

Luo Yang stopped there, saying, "I have a meeting tomorrow morning, and you're going on a trip with your best friend, so let's get some rest."

Even a porcelain doll couldn't arouse his interest at this moment.

He'll be busy not only tomorrow morning, but for the next few days he'll basically have no free time.

Wednesday morning's itinerary is to go to Jiangxiaobai.

As the chairman of Lingshigong Group and the largest shareholder of Jiangxiaobai Liquor Industry, although he does not get involved in the specific operation and management, he still has to sit in the first seat when attending Jiangxiaobai's second quarter financial report meeting.

CEO Qiao Zhiyuan was clearly in a good mood, chatting and laughing with Luo Yang and Cai Fujun in his office before the meeting began.

"So, is there any progress in the acquisition of that liquor company in Anhui Province?"

"This is not."

Qiao Zhiyuan replied to Luo Yang with a smile: "But we've reached an agreement with the winery in Hubei Province. We signed the agreement last week. Combined with the factory we acquired in your province, the new production capacity is basically enough to meet the sales needs of the third quarter."

"The key is the fourth quarter, as sales of baijiu (Chinese liquor) enter their peak season with the arrival of winter."

Luo Yang smiled and said, "So we still can't give up on the acquisition negotiations with the wineries in Anhui Province."

He doesn't want to get involved in the business operations, but a simple suggestion would be fine.

How were the sales in the second quarter?

Cai Fujun is concerned about the profit situation in the second quarter, after all, he also owns 30% of Jiangxiaobai's shares.

"You should listen to the finance report after the meeting starts."

Qiao Zhiyuan kept everyone in suspense, then smiled and said, "I definitely won't let you down, brother."

"Old Joe, judging from your confident look, achieving the 5 million target this year shouldn't be a problem, right?"

Luo Yang joked, "How about we give you more responsibilities in the second half of the year?"

"Chairman, please don't!"

Since the last board meeting, Qiao Zhiyuan had witnessed Luo Yang's methods and his respect for him had deepened.

"As you know, Jiangxiaobai Liquor's production capacity has always been a drag on the overall economy. The reason we were able to acquire that winery in Hubei Province this time is largely thanks to the board of directors approving the loan application last time."

Qiao Zhiyuan quickly interjected, "As we all know, sales revenue in the food industry is not the same as accounts receivable. Don't be fooled by the fact that we exceeded our sales target in the first half of the year, reaching 2.7 million yuan. One-fifth of that is tied up in outstanding payments, leaving us with very little capital to acquire a new winery."

The liquor industry does indeed have high profit margins, but it also collects high taxes.

Overall, a profit margin of 40% to 45% is already considered quite good.

After deducting the 20% of total sales revenue held as collateral, the company's cash flow will decrease even further.

"2.7 million in the first half of the year"

Luo Yang clicked his tongue and said, "You old Qiao, you're really good at hiding things. At this sales volume, you'll be making at least 6 million a year."

"That's right, Joe, you're not being honest!"

Cai Fujun is in the building materials business. Although it's not the same industry, there are many similarities.

He shouted, "More than half of the money you've pledged to distributors is from last year, isn't it?"

Even after being exposed, Qiao Zhiyuan wasn't embarrassed. He replied to Cai Fujun with a smile, "Last year's sales totaled only 2.2 million yuan. Even if the fourth quarter was a bit higher, it was only a little over 7000 million yuan, which is less than half of the current second quarter's sales. How can you compare them?"

He spoke with great conviction, and the more he spoke, the more reasonable it seemed.

"You wouldn't believe it, but as production capacity increased, we started to open up many new markets in the second quarter. In some places, the channels have just started to stock up, and a lot of payments have been made up, but there haven't been many payments received yet. These figures haven't been taken into account."

This phenomenon is quite different from that in the building materials industry.

In mature markets, liquor sales, like Jiangxiaobai, typically involve shipping a batch of goods at fixed intervals. Once the goods are nearly sold out and payment is received, a second batch is shipped out, resulting in a situation where a batch of goods is always held in limbo between the two shipments.

But it's different in newly developed markets.

Sales are not picking up for the time being, and the payments owed to distributors are not going to be recovered in the short term. Not only will this batch of goods not generate profits, but sunk costs will also have to be calculated.

Of course, Moutai is different. You have to pay for the goods when you pick them up from the distillery, and there is no such thing as holding back payment.

"Alright, Joe, stop complaining about being poor."

Cai Fujun quickly interrupted Qiao Zhiyuan, saying, "Anyway, we didn't expect Jiang Xiaobai to get much dividend this year. If you can increase production capacity this year and double sales next year, then we'll be rich."

He had just heard Luo Shengtang's second-quarter financial data yesterday and knew that he could receive more than 1 million yuan in cash dividends, so why would he care about Jiang Xiaobai?
"You look down on Jiang Xiaobai, don't you?"

Qiao Zhiyuan certainly knew why, and joked, "Old Cai, let me tell you, a successful liquor company is quite remarkable. You can easily find out by doing some research. A medium-sized liquor company that's well-known in a province has annual sales of at least tens of billions, and the profits are self-evident."

"Tsk, then I must call you President Qiao."

Cai Fujun smiled and said to Luo Yang, "Brother, Jiang Xiaobai might go public soon. When that happens, the chairman's position will have to go to President Qiao."

"That's for sure."

Luo Yang chimed in, "You've taken a small bottling liquor company public in just a few years, so the chairman's position definitely deserves to be given to President Qiao."

Qiao Zhiyuan could easily tell that the two were teasing him.

Be humble.

The subsequent meeting was also short, lasting only a little over an hour.

"It's still early, why don't you come to my place for a casual meal?"

The meeting ended a little after 11 a.m., and Cai Fujun and Luo Yang extended an invitation as they got off the elevator: "I'd like to ask you about smart home technology."

Luo Yang had at least gotten 20% of the shares for free, so he couldn't refuse.

Arriving at the Minhang Building Materials Market by car, and still having some time to spare, the two of them first drank tea and discussed business in the shop.

"What difficulties did you encounter?"

After the tea was brewed and the cigarettes were lit, Luo Yang asked, "It shouldn't be a funding issue, right?"

"I don't lack money."

Cai Fujun earnestly asked, "At the current construction speed, the factory should be able to start production in about half a year. But I've been worried about sales lately. Brother Luo, smart home is still a new concept in the current market. It's probably not something that can be solved by just two or three small and medium-sized real estate companies' model rooms and fully furnished apartments."

"Have you reached an agreement with Lao Fu and the others?" "Yes, the three real estate companies, San Tai, Yang Guang, and Jin Cheng, have all agreed to give it a try."

Cai Fujun said, "But all three of them combined only have 60 sets. This is only because of you."

"Didn't other real estate companies give it a try?"

"I've tried it, it's very difficult."

Cai Fujun clicked his tongue and said, "The first thing that caught my attention was whether there was a successful example."

Indeed, there's no model yet, not even a factory has been built.

The fully furnished model homes promised by the three real estate companies can only be built after the factory goes into production.

"I've also thought about advertising and promotion."

Seeing that Luo Yang didn't respond, Cai Fujun continued, "But when I did the math, I was shocked. Let alone nationwide advertising, even in the Yangtze River Delta region, making a splash would cost a fortune."

"Before the entire industry takes off, your advertising efforts won't be very effective."

Luo Yang shook his head and said, "I don't recommend you make such an inefficient investment."

"That's why I called you over today to ask for your advice."

Cai Fujun frowned and said, "There's no turning back now. The money's already invested; we can't just give up halfway, can we?"

As he said this, he couldn't help but sigh to himself: Running a real business is really difficult.

"I don't have any good solutions in the short term."

Luo Yang said frankly, "I've come up with one or two ideas on the spot. Listen to them, and if you think they're useful, you can give them a try."

"Brother Luo, please tell me quickly."

Cai Fujun didn't mind; something was better than nothing.

"The first method is to set up product showrooms in major building materials markets in several large cities."

After organizing his thoughts, Luo Yang said, "Just like the shops in your building materials market that sell lighting fixtures, stone materials, kitchen utensils, etc., there are always a few model rooms decorated so that customers who come in can see the actual effect. Similarly, smart homes can also be shown to customers in this way."

"That is indeed one method."

Cai Fujun nodded and said, "The key issue is that such a showroom is just a drop in the ocean when it comes to overall sales!"

“Making a sample does not mean relying entirely on sales in your own store.”

Luo Yang smiled and pointed out, "Think about Lemon CC's model store, what's it for?"

"How do we find distributors for the next step?"

Cai Fujun's eyes lit up immediately; "I understand now. No wonder you said you wanted to set up showrooms in building materials markets in major cities—it's to reach out to agents in surrounding cities."

Once the initial few model showrooms are doing well, you can then invite agents to visit them.

Then, with the help of hundreds and thousands of agents, the concept of smart homes was brought to building materials markets in cities across the country.

"As expected of Brother Luo."

Cai Fujun quickly refilled Luo Yang's tea, then offered him a cigarette while saying, "I racked my brains but couldn't come up with a solution as good as yours on the spot. No wonder you were able to start from scratch and amass a fortune of tens of billions in just three years, while I've been working hard for twenty or thirty years and only managed to accumulate a few hundred million in assets. I'm only doing this because of you."

That's a truly sincere attempt at flattery.

"In fact, Brother Cai himself is one of these agents."

Luo Yang said modestly, "You'll figure out my plan sooner or later. I just gave you a heads-up."

Cai Fujun was stunned for a moment, then slapped his forehead hard.

"Hey, what kind of mess is this?!"

He said with frustration, "I was attracted by the brand and took the initiative to become their free agent. I was like someone who was in the thick of things and didn't know what was really going on. I, an industry insider, am not as insightful as Brother Luo."

"Perhaps I was a little too hasty."

Luo Yang smiled and said, "After calming down and thinking it over carefully, we can still find several solutions."

"Ugh, I'm so stupid, I'm practically dead."

Cai Fujun sighed, "I can manage to copy what others have done, but when it comes to doing things in unfamiliar territory, my brain just isn't up to the task."

Gee.
If you dare to say that about yourself, then how did you even dare to get involved in this industry in the first place?
Little did Luo Yang know that every suggestion he made, starting with the initial investment in premixed cement mortar, had made him a veritable god of wealth.

So when he proposed that we could work on smart homes, he happened to meet Cai Fujun, who wanted to transform into a real business. How could he not jump in?
"Brother Luo, besides this plan, do you have any other suggestions?"

After hearing the first proposed solution, Cai Fujun was even more eager to hear Luo Yang's other solutions.

"The second one."

Luo Yang smiled and shook his head: "The second option is a bit too crude."

"What do you mean by rough or not rough?"

Cai Fujun said cheerfully, "Whether it's a black cat or a white cat, as long as it catches mice, it's a good cat!"

"I plan to develop real estate in my hometown in about two or three years. I estimate the total development area will be no less than 80 square meters. At the same time, I have reached an agreement with Sante and Sunshine. Around the same time, the three of us will jointly develop properties in cities surrounding Shanghai. The development volume will only be larger."

Luo Yang told Cai Fujun directly, "At least 30% of the apartments in the development will be fully furnished and can incorporate some smart home products."

Cai Fujun was so excited he almost stood up.

The total number is nearly 15000 houses. Even if only 30% are fully furnished, that's still 4500 houses.

If smart home products are used in the renovation of these houses, even if only in part, the purchase cost for each fully furnished apartment will be at least 10,000 to 20,000 yuan.

This is equivalent to giving Cai Fujun a sales bonus of 5000 million to 10000 million.

It was indeed rather rough.

But Lao Cai likes it.

"Fully furnished apartments will influence the trend of homeowners decorating their unfurnished apartments."

Luo Yang spoke again: "If you do a good job of promotion and influence 10% to 20% of the residents to purchase your products when they renovate, you can make a living from these businesses."

"More than that!"

Once his mind was opened, Cai Fujun said excitedly, "Developers in small cities tend to cluster together, so relationships are closer. With a little effort, we can definitely secure some of the pre-furnished apartment business from other developments, which will be worth more than just one or two hundred million yuan!"

Old Cai is definitely not bad at interpersonal relationships.

Initially, they expanded outwards by leveraging Luo Yang's connections at Jincheng Real Estate, and soon they were able to acquire businesses from Santai and Sunshine.

“I also know a few real estate developers back in my hometown.”

Cai Fujun further expanded his thinking: "We can also secure a significant amount of business on Zhedong Road."

He began to envision a bright future.

"If we could get a large real estate company to cooperate and become their centralized procurement unit."

Luo Yang is the one who's good at making empty promises.

(End of this chapter)