Volume 8 Final Chapter Chapter 1148: The Sin of Expansion
Nan Youqiong inherited a lot of his personality from Nan Yi. He would have fun or make a fuss, but he would never delay doing serious things. Despite a ridiculous night, he still got up at the right time according to his biological clock, washed, exercised, and took a bus to Gaoshe Town.
In the morning, Wang Fengtai was asked to take a tour of several branches in the entire factory area, including the fully automated workshop established a few years ago.
Xiaoxiaonan's Jazari robotic arm has been mature for several years. As a result, Xiaoxiaonan provides fully automated factory solutions to the outside world and has become well-known in the field of factory automation.
Nan's company also has a comprehensive plan to implement full automation, but it will take a long time to execute. Not only does it have to balance the cost difference between labor and machinery, but it also has to consider the issue of personnel placement. It simply cannot be done quickly.
However, the general direction is like this and will not change. Generally speaking, we will first liberate most of the mechanical and repetitive workers and basically eliminate exploitation. When intelligence matures, we will gradually liberate the mental workers and then realize the overall liberation of the Nan working class.
Nan Youqiong came to Yanweidie for the purpose of removing this malignant tumor. It employs 26.4% of the total number of Nan’s employees, but generates less than 0.7% of the profit. From a profitability perspective, it is completely unsatisfactory. From a charitable organization perspective, it has hardly brought any word-of-mouth effect. There is no need for such a company to exist.
I check the factory in the morning, the Swallowtail Butterfly Community in the afternoon, and work overtime at night to check the accounts and the roster of line leaders and above. I take a break at about the same time and continue checking the next day.
After reading the information for two consecutive days, Nan Youqiong came up with a plan in his mind - to move from factory to household.
Swallowtail Butterfly will be split up. Nan Group will continue to hold Swallowtail Butterfly's factories in Vietnam and Bangladesh, and the factory in Gaoshe Town will be divested. The factory buildings, fully automated workshops and funds in the factory accounts will belong to Nan Group. The remaining parts will be transformed into joint-stock companies, and all shares will be distributed to the workers, realizing the true meaning of "the factory is run by the workers."
Now that a rough plan was ready, Nan Youqiong asked the Adler think tank to refine it. He did not dare to let the strategy team participate in this matter from the beginning, as he was worried that Nan Yi would object.
If it weren't for Nan Yi's feelings, he wouldn't have to go through so much trouble and could just sell the factory. Anyone with a discerning eye can see that Swallowtail Butterfly is definitely a high-quality industry. The only prerequisite is to lower the workers' welfare level to the average level of the same industry. In this way, the factory can generate huge net profits every year.
Because of Nan Yi's "die-hard desire to save face", Nan Youqiong must continue to support him. After weighing the pros and cons, he thinks that the best solution is to move the factories to households.
As time went by, the plan began to be detailed. It roughly absorbed some measures from the distribution of land to households, abolished the levy, and converted agricultural tax into factory rental fees. After the factory was reorganized, it would need to pay money to the Nan family for three consecutive years, with the amount being 80% of the 2006 profit.
During the three years, Nan's staff taught the managers selected by the workers how to manage and taught the business staff how to find and connect with businesses, so that the factory could operate healthily. After three years, Nan's staff withdrew, and the relationship between Yanweidie and Nan's only remained that of tenant and landlord, with no other connection.
When the plan of branching to households came to Wang Fengtai, after reading it, he couldn't help but sigh at Nan Youqiong's decisiveness and experience in doing things. This plan could be said to be the best plan. It not only took into account Nan Yi's emotions, but also reduced the potential burden on the Nan family, directly getting rid of a big burden.
Nan Youqiong then discussed the share distribution plan with Wang Fengtai. In order not to make it too complicated, the plan would be calculated directly based on each employee's years of service, regardless of their position. The total number of shares would be the sum of the years of service of all employees in the factory multiplied by ten. One year of work would give you 10 shares, and ten years of work would give you 100 shares.
After finalizing the plan and determining the list of people to be taken away, Nan Youqiong asked Wang Fengtai to go to Ningbo for an inspection after the new year, and then come back to implement the plan of moving from factory to household.
If nothing unexpected happens, Yanweidie will build a new factory in Ningbo, which will be divided into two parts, one half will continue manual production, and the other half will adopt a fully automated solution. Secondly, the next step will be to plan to build a factory in Mexico.
Nan Yi knew nothing about Nan Youqiong's plan. If he saw the plan of dividing factories into households, he would definitely say that Nan Youqiong was despicable. If the factory was handed over to the workers, minus the first three years, and if it didn't go bankrupt within the next two years or changed from being owned by full-time employees to being owned by no one at all, he would take the surname Nan Youqiong.
Fortunately, he didn't know about it, which saved me some trouble.
At seven o'clock in the evening, Nan Yi came to the House of Cards in Repulse Bay. Today was an activity day, so there was naturally a card game going on in the House of Cards.
The players at the table are Zheng Shadan, Guan Erfu, and Chen Guowen.
Over the past decade or so, there has been a real estate company in Xiangkeng whose performance has been booming. Even during the years when the property market was sluggish, the company still made progress every year. Now it has become a giant in the real estate industry, but it is not well-known and few people mention it.
It is Fu Lu Shou Real Estate. Normal people would not like to mention it in normal times, but they must find it when things are not going well. It is very contradictory. In Xiangkeng, if there is a funeral in the family, the Xiao family and Fu Lu Shou are basically unavoidable, unless they do not want to build a tomb for their ancestors.
Adhering to the strategic policy of "not competing with the living, but only asking for efficiency from the dead", Fu Lu Shou flourished everywhere in Xiangkeng, taking advantage of every available space and building many niche walls next to football fields, residences and schools. It made outstanding contributions to Xiangkeng's "housing for the dead" and also contributed a large amount of taxes.
Back then, Chen Guowen could only be brought to the House of Cards by Nan Yi, and he could only sit in the corner. Now, he can sit at the card table openly and compete with other wealthy people in card skills.
"Mr. Zheng, Mr. Guan, Mr. Chen, who has better luck?"
"Guan had the best luck today, winning over eighty dollars." Zheng Shadan sorted out the cards in his hand, raised his eyes and said, "Professor Nan, how come you have time to come here today?"
"The Chinese University of Hong Kong has invited me to give a lecture tomorrow on how to use Marxist theory to overthrow the mountain of capitalism that weighs on the citizens of Hong Kong."
Zheng Sha laughed boldly, "Hahaha, Nansheng is still so humorous. Speaking of mountains, your Nan family has one. When are you going to overthrow it?"
After Fang Mengyin retired, Nan Ruoqiong became the public face of the Fang Group. Her experience abroad was difficult to trace, but her origin from the Po Leung Kuk Orphanage could not be hidden from those who were interested. So, after becoming famous, she openly acknowledged her origins in media interviews.
With the surname Nan, he could take over the Fang Group. The wealthy people who knew about the Fang Group easily linked Nan Ruoqiong and Nan Yi together. Most people speculated that the Fang Group was actually the "Nan" Group from beginning to end, otherwise why was it not Nan Yi who was walking around outside who took over, but another unknown person with the surname Nan.
They also had some guesses about Nan Yi's true strength, but except for Li Tongban, no one else had any clue. However, the mere presence of Zhao Shixian and Chen Guowen had already made them look askance, and when they dug deeper into Chen Guowen, the Nanchen Village that popped out made them even more stunned.
In this little-known village, there are too many businesses belonging to the Chen family. All of them are low-key, and it is difficult to tell their strength. We can only get a glimpse of their strength through the amount of tax they pay. However, with a little thought, based on preconceived notions, it is easy to conclude that Nanchen Village and Nanyi are inseparable.
The style is too Hong Kong style. Except for Nan Chen Construction, there is no loan relationship between other companies and banks. It is a typical Hong Kong style of development. They all like to operate with low debt. What's more, Nan Yi used to call Chen Guowen "Uncle Guowen", but later changed it to "Mr. Chen" in front of everyone to avoid the issue of seniority.
For example, Zheng Shadan used to treat Nan Yi as a junior, with Fang Mengyin in between them, but now they are just equals.
Nan Yi shook his head, "I don't recommend my own family."
"Li Tongban is the biggest one, push him."
Nan Yi glanced at the door and found that Li Tongban had come, so he deliberately said: "Since Zheng Sheng said so, then let's push Li Sheng. Li Bancheng's name is known to everyone and he has a big target."
Li Tongban staggered to the card table and said, "Nansheng, what do you want to push me for?"
"Mr. Li." Nan Yi stepped forward and helped Li Tongban sit on a chair. "Mr. Zheng and I talked about playing Landlord, and Mr. Zheng suggested playing you."
"My assets are all land and docks, which are difficult to divide. However, Shark Gallbladder is all gold and jewelry, which are easy to divide." Li Tongban did not take it as an offense, but instead said to please him.
A few people chatted for a while about Dashan and the landlord, and then, after a round of cards was over, Li Tongban also joined the game. Nan Yi stood by and looked at two rounds of cards, then sat down beside them.
At about eight o'clock, Yang Zhengqi came, not alone. He was accompanied by a middle-aged man named Xu Mashi, who was about fifty years old. Nan Yi had never seen him in person, but he knew him very well.
That year, Chen Ruiwu poached Xu Mashi and the two sides cooperated to develop Zhuniao Garden. The project was a hit and Xu Mashi had the capital to start his own business. Afterwards, Chen Ruiwu supported Xu Mashi in establishing Tiandi Company. Nanchen Construction only held 20% of the shares and never interfered in the company's affairs.
Xu Ma Shi had capital and support from others, so he started with his first project after independence, Jinbi Garden. After acquiring the land, he dug deep into the ground, creating the surrounding environment and atmosphere to be eye-catching, thus conquering the hearts of home buyers.
We will continue to adopt the "short, flat and fast" development model of the small-sized and low-priced Zhuniao Garden, and adopt high-standard design, heavy packaging and large-scale marketing. People who don't understand marketing don't know what's going on. To put it bluntly, it's all empty stuff, just using a little to achieve a lot.
Before the houses were built, more than 323 houses in the first phase were sold out. The total price of one house was about 250,000 yuan, and a cash flow of 80 million yuan was thus obtained.
This model was used to perfection by Xu Mashi. At that time, Xu Mashi created the record of "land acquisition, construction approval, construction start, completion, sales, occupancy, and profit in the same year", which was a miracle in the history of domestic real estate development.
With this miracle, Xu Mashi developed Jinbi Garden to the fifth phase and completely built it into a star real estate project in Guangzhou. In this way, in just three years, Tiandi entered the top ten real estate projects in Guangzhou. From then on, Tiandi embarked on a "Great Leap Forward" development path.
The gene of Tiandi Real Estate is Xu Mashi's personality, which has been imprinted in Zhuniao Garden and has hardly changed. It is brave enough to forge ahead, focuses on packaging rather than being pragmatic, operates in an exaggerated manner, has advanced marketing techniques, and emphasizes efficiency first, etc.
There is no doubt that Xu Mashi has a forward-looking vision, but being too arrogant is also a form of arrogance. In 2000, Tiandi had become a strong real estate company, and Xu Mashi launched a two-reserve strategy of reserving talents and reserving land.
The most typical example is that one engineering director is exaggeratedly equipped with 8 deputy directors. Of course, he was smooth sailing in the early stage, and the entire Tiandi people supported his strategy.
According to normal cost estimates, it has doubled. In terms of manpower, a real estate project has only 30-50 people in engineering, budget, finance, marketing, procurement, administration, etc., of which marketing employs the most people. However, at that time, all pre-sale properties could be sold, so 8 marketing personnel were enough.
Assuming that one real estate project employs 50 people, a dozen projects would only require around 500-800 people. However, Tiandi has more than 2,000 employees, which means that more than half of them are reserved for the future.
Of course, Xu Mashi had a plan for such expansion. It was also in 2004 that Tiandi began to expand across the country. Tiandi built high-quality real estate projects and put forward the slogan of "special prices for opening and preferential prices for special prices".
Since 2006, Tiandi has been expanding massively across the country, grabbing land, and increasing its land reserves several times, making it the largest landlord in the country.
At the same time, this rapid expansion also quickly drained Tiandi's cash flow. Today, Tiandi already has tens of billions of debts, and in order to support the normal operation of the project, there is still a funding gap of more than 5 billion. In the short term, if Xu Ma Shi cannot find 50 to 60 billion in funds, Tiandi Group will face bankruptcy and liquidation.
There is a second largest shareholder behind Tiandi, so Xu Mashi naturally could not help but look for Chen Ruiwu, but Chen Ruiwu's reply was that he could lend 100 million to Tiandi and 200 million to Xu Mashi personally, and he could also increase capital. Nanchen Construction would only follow the investment and not lead the investment.
The meaning is very clear. You, Xu Ma Shi, will inject money into the group first, and Nan Chen Construction will follow suit. The upper limit is 1 billion. If it exceeds this number, the shares can be directly diluted.
How could Xu Mashi have the money to increase capital? In the past few years, Tiandi’s dividends were not much, and Nanchen Construction received less than 20 million in total. According to the proportion, Xu Mashi’s personal funds would not exceed 80 million.
Like many domestic business owners, in his eyes the company is the individual. Regardless of whether the expenses are related to business activities or not, they can be recorded in the company's account and will never be paid from his personal pocket.
Every year the people in the finance team who are responsible for checking the accounts of Emperor Tian are always overwhelmed as there are too many problems with the accounts, especially with the expenses, which include all kinds of messy expenses.
In view of Tiandi's blind expansion and disordered accounts, and the fact that Xu Mashi only dared to borrow 100 million in the name of Tiandi but not the other 200 million in his own name, in the second half of last year, Fan Hongdou had discussed with Chen Ruiwu and was waiting for the right time to withdraw his shares and stop being involved with Tiandi.
Now that Tiandi Group is facing a cash flow shortage and having asked Chen Ruiwu for help to no avail, Xu Mashi is betting everything on going public. Therefore, Tiandi continues to borrow money from banks and increases the scale of expansion. There are more than 30 projects under construction across the country at the same time, and funds are stretched to the extreme. If there is any mistake, the group will collapse immediately.
Xu Mashi had already traveled around the country and wanted to seek help from other bigwigs, but was rejected by all. Finally, Chen Ruiwu couldn't stand it anymore and pointed out a way for him - contact Yang Zhengqi, with whom he had a cooperative relationship before, and go to Xiangkeng to take a look.
The reason why Nan Yi came to House of Cards today was because he knew Xu Ma Shi was coming.
Yang Zhengqi brought Xu Mashi to the poker table and introduced him to a group of people, and then brought him to Nan Yi.
"Nansheng, let me introduce you to a friend, Xu Mashi, the chairman of Tiandi Group; Mashi, this is Nansheng, Nan Yi, the grandson of Madam Fang of Fang Group."
"Hello, Mr. Nan."
Nan Yi shook hands with Xu Mashi and said, "Hello, Chairman Xu, I am Nan Yi, a teacher."
After the greetings, Nan Yi asked the two to sit down.
Then he passed by Xu Mashi and started talking directly with Yang Zhengqi about the topic of women .
Yang Zhengqi is an old pervert. He is old but young at heart. He has been entangled with many female artists in his company. He is also a big mouth. He does not hide his own affairs and tells everything he knows when facing media interviews.
However, the truth and falsehood of what they said were mixed up, and the names of the female artists were rarely revealed, so it could be said that the last piece of fig leaf had not been removed.
Nan Yi extremely despises such people. At their age, can't they just be quiet and give more opportunities to those retired young people in their forties?
There are a lot of old perverts in Xiangkeng, and they are all like combers. After they have combed through them, it is almost impossible to find a fish that has escaped the net.
After listening to Yang Zhengqi bragging for a while, Nan Yi's cell phone vibrated. He saw that it was a text message from his precious daughter. He apologized and hid in a corner to reply to the message.
The little girl said she was bored staying at home and wanted to come and find Nan Yi.
Nan Yi replied: In the House of Cards, with a few old guys, it would be boring even if you came.
Nan Ruoqi: I want to go over there.
Nan Yi: Come on, and bring some of the newly arrived cherry tomatoes.
Nan Ruoqi replied with an "OK" emoticon. Ten minutes later, she arrived, took the cherry tomatoes and shared them with others. Then she sat in the corner with Nan Yi, ate one and a half herself and fed Nan Yi half of them.
"Dad, before Qian Meizi goes public, can you issue additional shares to Lavender?"
Nan Yi held a half-bitten cherry tomato between his fingers and shook it, "You let Daddy eat what you left, and you still want to take advantage of Daddy?"
"Daddy, am I a little princess?"
"What's wrong, little princess? Are the cherry tomatoes sweeter after you bite them?"
Nan Yi didn't play by the rules at all and directly blocked Nan Ruoqi's next words.
"Damn daddy, you're so annoying. You have to answer according to what I say." Nan Ruoqi pouted.
"Okay, okay, let's start over."
"Yeah." Nan Ruoqi nodded and asked again: "Daddy, am I a little princess?"
"Of course you are. You are the most beautiful little princess in the world."
"Mommy said that when I was a kid, Daddy would always smell it whenever I pooped..."
Before Nan Ruoqi could finish, Nan Yi grabbed her face and said, "Is this your trick? Are you trying to disgust Dad on purpose?"
"Daddy, if you don't let go I'll cry."
Nan Yi let go of his hand, pointed at Nan Ruoqi's nose and said, "Your mother will be back the day after tomorrow, I'll ask her to take good care of you."
"Hehe, I'm not afraid." Nan Ruoqi had a mischievous look on her face and was not afraid of Nan Yi's threat at all.
Nan Yi shook his head helplessly, "I can't do anything about you. Why didn't you go play with your classmates today?"
"Every time we go shopping, we go to the internet cafe. It's boring." Nan Ruoqi shook her head and stuffed a cherry tomato into Nan Yi's mouth. "Dad, after the Chinese New Year, shall we go to Tromsø to see the Northern Lights?"
"Woo." Nan Yi sucked the cherry tomato into his mouth, bit it with his teeth and said, "Didn't you go there once two years ago?"
"It's not the right time. It's not the best month to see the aurora."
"Come back after you finish watching?"
"Well, it won't take Dad too long, just three or four days."
Nan Yi stroked Nan Ruoqi's head and said, "It's okay. We can stay there for a few more days. There are a lot of wild blueberries in the swamps in Tromsø. It's a good opportunity for us to investigate and invest in building a blueberry juice production plant there."
"Dad, we are going there to have fun, not to do business." Nan Ruoqi said dissatisfiedly.
"Okay, okay, just for fun, not business."
While the father and daughter were whispering here, something happened at the card table. Chen Guowen stood up, gave his seat to Xu Mashi, and walked towards Nan Yi.
After the greetings, Chen Guowen got down to business.
"Nan Yi, Bai Ri Fei Sheng suffered a loss in Spain. A big client was snatched away."
"An enterprise in Caozhou?"
"Yes, the companies in Hanji Town, Caozhou, offered prices 30% lower than ours."
"What did Anko say?"
"Give up the low-end market and focus only on the mid-to-high-end market." Chen Guowen frowned and said, "I don't think this method will work. Caozhou will enter the high-end market sooner or later. If they keep suppressing our prices, our profits will be in jeopardy."
"Where is the main market for Bai Ri Fei Sheng now?"
"We have markets in Japan, Europe and North America. The countries with relatively high sales are Japan, Spain, the United Kingdom, the five Nordic countries and the United States."
“Which country has the lowest profit margin?”
"USA."
Nan Yi thought for a while and said, "Talk to Caozhou and divide the market between the two sides. Don't engage in a meaningless price war with them. It will be meaningless if the profit is too low."
"I'm just afraid we won't be able to reach an agreement."
"If we really can't come to an agreement, wait and see for a while. If the other party is still aggressive, don't be polite. Do something ruthless. Not only will we destroy their factory, but we will also make them bear debts to scare them."
When Chen Guowen heard the words "let's do something ruthless", a method immediately popped up in his mind: ask foreigners to cooperate with the manufacturers who are not on good terms with him, cooperate in a friendly manner for two or three times first, and then gain the other party's trust, place a large order, negotiate a low deposit, and set a higher penalty for breach of contract; then bribe people in the factory to put some contraband in the coffin or inside the coffin, and notify the customs to seize it, causing the other party to be unable to deliver on time and pay the penalty for breach of contract.
In this way, even if the other party's factory cannot be destroyed, it can make them nervous and they will be cautious when they encounter big orders in the future.
Seeing Chen Guowen's expression, Nan Yi knew that he was right to be cautious before. From the first day he joined Nanchen Village, he repeatedly emphasized the financial system. Everything had to be done according to the procedures. Even if you were waiting for money to save your life, you couldn't withdraw a penny from the company account if you didn't complete the procedures.
The second is uninterrupted anti-fraud learning. Nan Yi will collect fraud cases in commercial activities for a long time, disassemble and analyze various means, and summarize various business traps. The Nan family will share this information with Nanchen Village. The senior management of various companies in Nanchen Village will regularly organize learning and be familiar with various fraud methods and traps.
The fact that Nanchen Village has not been cheated or suffered any major losses in the past twenty years is inseparable from its meticulous learning attitude. As the saying goes, reading ten thousand books will help you write like a god. The more you analyze, the more you will be able to use it when you need it.
"Uncle Guowen, if it really comes to that, don't attack too many people. We are all trying to make a living, so it's not good to cause internal friction. Also, I'm retired, so you don't need to tell me about official matters in the future. Just go to Hongdou directly."
"I don't know what you're thinking, retiring in your forties? I'm already sixty this year, and I'm thinking of working for a few more years."
Chen Guowen was very depressed. He couldn't work for a few more years even if he wanted to. He had already been promoted to the position of chairman, and the real power had been taken away by the general manager. In another three years, he would have to hand over the chairman's chair, and he would still be unable to work.
Nan Yi chuckled, "I started doing business when I was sixteen, and it's been almost thirty years. I'm tired, and I plan to enjoy my life in the next few decades. Uncle Guowen, you too should accept your age. Go back to the village and be a director on the board of directors. It's nice to take a walk and play cards every day."
"That's the only way."
Even if Chen Guowen is attached to his current position, he can do nothing about it. Chen Zongqing and Nan Yi took the lead in retiring, so who else dares not retire?
In terms of achievements, who dares to say he is greater than Chen Zongqing? In terms of age, who dares to say he is younger than Nan Yi?
The two chatted for a while, and Chen Guowen returned to the card table to watch, while Nan Yi and Nan Ruoqi continued to whisper.
At this time, Xu Mashi, who was sitting at the card table, was muttering in his heart: "I don't know how long it will take to play cards before we can talk about serious matters. Time waits for no one!"
He knew very well that if he wanted to discuss financing, he needed to wait for the right opportunity and must not act too hastily. Being too hasty would be a sign of weakness, and the other party would be likely to ask for an exorbitant amount of money.
