Journey 1995:Non-Stop

Chapter 397 Recruiting Again
As the boss, Yan Hui doesn't really understand management.

He wasn't particularly adept at social maneuvering, nor did he organize many drinking parties. He simply believed in placing the right people in the right positions. At the same time, he believed in respecting employees (by paying them well), and then taking the lead himself—that was about it.

Yan Hui came from a poor family. He was very much like his grandfather, always polite to everyone, making everyone feel comfortable around him. This politeness wasn't feigned; it was cultivated through his grandfather's teachings and example.

Two days later, Yan Hui made another trip to Linzi and met the two technicians at a restaurant that General Manager Zhou had booked.

I've met Dai Lingfeng and Yan Hui before. The other one is named Xu Jinze. The two are about the same age, with Xu Jinze being slightly older.

"President Yan, did you call us here because you also have plans to acquire this company?" Dai Lingfeng asked before even sitting down.

"I have this idea." Yan Hui didn't hide it.

“I knew it was like that, Mr. Yan. I felt you were a good person after our last conversation, but we can’t accept something for nothing, so we’ve decided to leave. I won’t be having this meal. We agreed to come this time because we met last time, as a gesture of respect to you and Mr. Zhou, but that’s all we can do,” Dai Lingfeng said apologetically.

"May I introduce this gentleman?" Yan Hui did not answer the question, but pointed to Xu Jinze instead.

"My name is Xu Jinze. I'm from the same county as Ling Feng. We used to work in the same factory and came here together three years ago," Xu Jinze introduced himself, without saying much more.

Clearly, these two people had no intention of eating this meal; they were only showing up out of courtesy.

Seeing this, President Zhou glanced at Yan Hui, unsure of what to do. This was all he could do; he couldn't force anything more.

Yan Hui glanced at President Zhou and nodded slightly. President Zhou then left the room first.

Only Yan Hui and the other two remained in the room. Under these circumstances, the two were too embarrassed to leave directly, and the room became somewhat quiet.

“I met Master Dai before, and I saw the tiles you made. I haven’t met Master Xu, but I imagine he’s at the same level. To be honest, I recently did some research on the tile industry, and your skills are indeed very mature, which is why I wanted you to stay. Actually, don’t worry about anything else. I’m a very easy person to get along with. My chemical products are sold in Guangdong Province, and I have some friends there. Even if you insist on going home, I think we can still make friends. So, let me make things clear first, have a cup of tea. It won’t hurt to have a cup of tea.” Yan Hui spoke politely, but it made it difficult for anyone to refuse.

The two men looked at each other, and Dai Lingfeng nodded: "Okay, President Yan, we'll listen to what you have to say."

"Thank you very much." Yan Hui said, pulling out chairs for the two to sit down and then pouring them tea.

He didn't try to win them over or set any conditions; he went straight to the point and asked, "You two have the deepest understanding of this factory. What aspects of this production line do you think could be improved? And approximately how much would it cost?"

"Hmm?" Dai Lingfeng was slightly taken aback.

He hadn't expected Yan Hui to ask this question. But since he was about to leave, this matter was no secret to him, so he spoke frankly: "The glazing machine still isn't good enough. If we switch to a better inkjet machine, the pattern will be fired directly onto the surface, and the quality will be greatly improved. Besides that, several steps can be improved into automated production lines. This production line can be extended further, but the efficiency will be greatly increased. I estimate that we'll need to invest at least another 500 to 1000 million in two production lines." "1000 million per line?" Yan Hui frowned slightly.

"No, each line is estimated to cost 300-500 million."

"If the market is large enough, and the entire production line is upgraded, plus the high-end inkjet machine you mentioned, what would the monthly production capacity be? Could it double?" Yan Hui asked.

“I think doubling it is no problem. The core reason for limiting production right now is that the market isn’t big enough. Besides that, there are a few steps that are too labor-intensive, and the labor force is unstable and slow,” Dai Lingfeng said after thinking for a moment.

"So, the annual output value can reach 1.5 million to 2 million?" After Yan Hui finished speaking, he made a rough estimate in his mind and felt that this data was quite reliable.

"Yes, theoretically there shouldn't be a problem."

"Based on my understanding of the market, the gross profit margin for these inkjet-processed tiles can reach 15%, and with increased production capacity, net profit will increase significantly. Overall, the net profit for the year can reach around 2000 million yuan. Am I right?" Yan Hui is very sensitive to data.

“Theoretically, it’s correct.” Dai Lingfeng looked at Xu Jinze, and the two exchanged a glance, concluding that the number was accurate. This wasn’t a fantasy; it was mathematical calculation.

“Hmm.” Yan Hui thought for a moment. “I’ll get straight to the point. First, I have the money; I can buy this processing plant outright. Second, I’m willing to invest another 10 million to improve the equipment. Third, I’m willing to share the profits. If you stay, you can each take 3% of the shares. These shares are from my 10 million investment and won’t be diluted by my investment. In other words, if we achieve a net profit of 20 million a year, you can each receive 600,000 a year. In addition, your basic salary of 200,000 a year will remain unchanged. Fourth, I’m not just in the chemical business; I’m also a first-tier steel distributor in Jinan. I have a market here, a market worth 50-60 million. I’m confident I can expand the market to 200 million.”

When it comes to talent, Yan Hui never believes that high salaries are everything. He insists on giving them shares so they can make money for him.

After Yan Hui finished speaking, Dai Lingfeng frowned. He looked at Yan Hui and then at Xu Jinze.

Neither of the two technical leaders spoke at this moment. They looked at each other and then began to analyze the feasibility of the proposal.

The factory's current annual net profit is three to four million, and this CEO Yan is saying he can make the net profit 2000 million a year? Although they had just calculated it, they still found it somewhat unbelievable.

You see, they've been here for almost three years, and they know very well how much profit this factory can generate.

However, those of them who are technically skilled naturally believe in technology. They are very clear about the production capacity and the gross profit of the updated goods, as mentioned earlier. This is simple math; it can't be faked, and anyone with an elementary school education can calculate it.

Yan Hui didn't raise their salaries, but he gave them shares and dividends, so theoretically they could earn 80 yuan a year!
Earning 80 a year is not simply four times the amount earned in the past 20. If a family's annual expenses are 10, earning 20 would only leave them with 10. However, with an annual income of 80, even if family expenses double, they could still save 60! This is a qualitative leap in every sense!

“I heard that you don’t have a house in Linzi yet, and it’s inconvenient for your wives and children to come over. In addition to what I just mentioned, I’ll give each of you a 120-square-meter apartment. This apartment won’t belong to you for now; it will be transferred to you after you’ve worked here for three years. We can sign a contract.” Yan Hui knew what these two needed most.

(End of this chapter)