Journey 1995:Non-Stop

Chapter 396 Laying Out the Tile Industry
Yan Hui has not participated in the steel mill's bidding recently, and the company's account balance is growing, enough to repay all bank loans. However, using money to repay loans is the worst thing to do; it's better to use the money to make money.

Recently, Yan Hui had been asking Zhou Ping to keep an eye on the situation of the tile factory in which Zhou had invested, but there had been no new information. Mainly because Zhou hadn't brought it up himself, Zhou Ping didn't want to keep asking. Finally, one day in late May, Zhou Ping heard about the latest developments and came to tell Yan Hui about the situation.

"This factory is probably beyond saving. They're too wary of each other. They've been monitoring production very closely lately. All the shareholders are on guard internally, afraid that other shareholders will steal the goods," Zhou Ping said.

"Has it gotten to this point?" Yan Hui frowned. "In this situation, is there a lot of unsold inventory piling up in the warehouse?"

"Mr. Yan, you know about this?" Zhou Ping asked, somewhat surprised.

"Definitely. What's the point of focusing on production at a time like this? Tiles are very cash-intensive; if things continue like this, the company will have to shut down." Yan Hui shook his head slightly. "It's a pity. This is the trouble with having too many shareholders. Once people become selfish, the company can't function. The key is that these people know each other, so even if there were management agreements made in advance, it's useless at this point. By the way, did President Zhou sell his shares?"

"No, my uncle gritted his teeth and didn't sell. He's just waiting for you to see if you're interested in buying it," Zhou Ping said truthfully.

"Okay, then I'll call President Zhou." Yan Hui took out his phone and dialed President Zhou's number.

After a brief exchange, General Manager Zhou got straight to the point: "Recently, a big boss came over wanting to acquire this factory. He offered a high price of 1800 million, but because of that, everyone is arguing that someone wants to sell at a higher price. The most crucial thing is that the two technical managers are determined to leave, so the boss who wants to buy the factory doesn't really want them. This boss insists that these two technicians must stay."

"Is this boss trying to use this argument to lower the price, or is he making it a necessary condition?" Yan Hui asked.

“It’s a necessary condition. This boss is quite powerful; he owns two mines, one a kaolin mine and the other a quartz mine, both essential raw materials for tile production. However, he’s not a supplier to this factory. If he buys them, his mines will have another source of consumption, which will definitely benefit him. In short, this person is capable, but he doesn’t have many market channels and doesn’t understand tile production technology. He will definitely want to keep these two people,” Mr. Zhou explained.

"That makes sense. If that's the case, then just negotiate with the technical staff, right? Surely, for something as big as selling the company, getting two technical staff shouldn't be too difficult, right?" Yan Hui asked curiously.

“No way, they wouldn’t do it even for 30 a year. We’ve negotiated 35 now, but these two are still pretty adamant. The most crucial thing is that this salary means the original owner would have to pay for it, and the new owner probably won’t be willing to pay such a high salary.” Mr. Zhou sighed.

The market for this tile factory is currently around 50 to 60 million yuan a year. This is the factory's own market, but recently, due to internal conflicts, the market has shrunk slightly. If the annual net profit is only 3 to 4 million yuan, then distributing 700,000 yuan to two people is too much.

"Didn't you guys discuss the salary with this boss?" Yan Hui felt this was a bit outrageous.

Logically, the new owner should decide how much to pay, but it seems a group of veterans are doing it. Clearly, these people only want to sell the factory, and their promises to the two technicians are unreliable. They're all focused on selling the factory as quickly as possible, and they don't care whether the technicians stay or leave.

"Well, to be honest, it's a bit of a rip-off, and I don't dare to say anything. Anyway, if it really sells for 1800 million, I'll be free. Those people warned me not to say anything out of turn." President Zhou sighed.

"So, is 1800 million enough to acquire this company?" Yan Hui was quite interested in the factory. It had equipment worth approximately 1500 million, a mature production team, and a market valued at around 5000 million annually. A valuation of 1800 million for such a factory was definitely an undervaluation.

"It's probably impossible. They're still negotiating the price. The boss is willing to offer 1800 million, but some shareholders are still not satisfied. You know, this is like demolition compensation. When it's not being demolished, they'll sell it for a little money, but when it's really being demolished, there will always be a few people who feel they're not getting enough." Mr. Zhou also seemed somewhat helpless.

"If you don't need to handle the technical staff issue, and besides that, I'm willing to offer 2000 million, do you think we can take over this factory?" Yan Hui asked again.

Yan Hui and President Zhou had previously discussed a price of 20 million.

"That shouldn't be a problem. I can help you create the image of a sucker, say you're in the chemical industry and have money to burn. In that case, everyone will be scrambling to sell at this price." President Zhou had discussed this with Yan Hui before.

It would have been difficult to buy it for 2000 million before, considering that the market value alone, with annual sales of 5000 million, is worth at least 1000 million.

Just like Yan Hui's current polyurethane company, although the company's equipment, factory buildings, land, and patents are worth about 50 million, he wouldn't sell the company for 100 million.

“I think it’s possible, but it’s not a done deal yet. I need to find a way to meet with these two technicians and reach an agreement with them.” Yan Hui thought for a moment, “Anyway, Mr. Zhou, once this matter is settled, I will give you an additional 10 yuan as a service fee.”

"President Yan, this wasn't mentioned beforehand," President Zhou exclaimed in surprise. He hadn't expected Yan Hui to be so decisive in his work.

"Of course, these are the rules, I understand." Yan Hui didn't say anything unnecessary.

Mr. Zhou bought shares for 130 million. If the company is acquired for 1800 million, Mr. Zhou will receive 126 million, losing 4. If the company is acquired for 20 million, Mr. Zhou will receive 2000 million, making a profit of 140. Yan Hui gives him an additional 10, instantly turning his "profit of 10" into "profit of 10," effectively doubling his profit. This will make him happy to find ways to operate.

"Thank you so much, Mr. Zhou, for getting these two to come out." Yan Hui had great respect for technology.

Although this person wanted to leave, everyone has a price to pay when they come out to work. These past few days, Sun Lei had clearly wavered. Yan Hui had received a call from Bank Manager Zhang; apparently, Sun Lei had already spoken with him and seemed quite willing to leave. Sun Lei wasn't just after the money; he mainly felt comfortable being respected. Of course, being paid more and being respected are essentially the same thing.

Although these two technicians live in other places, they earn enough to bring their families over. Ultimately, it all comes down to how much money they can make.

(End of this chapter)