12dz Chapter 558: Relying entirely on loans to survive
Chapter 558: Relying entirely on loans to survive
The next morning, Wang Ergou brought new news.
"Brother Xiangyang, my friend's situation changed again last night," Wang Ergou said in a low voice. "At Jinyuan Industrial, three skilled workers have already been laid off due to unpaid wages."
Li Xiangyang was reviewing production reports, not even looking up: "Anything else?"
“What’s even more interesting,” Wang Ergou leaned closer, “is that their Vice President Zhao went to the county yesterday, apparently to apply for some preferential treatment, but was politely refused.”
At that moment, Ma Qingfu pushed open the door and came in, his face beaming with excitement: "Xiangyang, great news! Old Zhang from the provincial capital agreed and signed a three-month long-term supply contract for 10,000 cans per month, at a price two cents higher per can than now!"
Li Xiangyang then looked up, a satisfied smile spreading across his face: "That's right. With stable orders, we're not afraid of a protracted battle."
"But the cost of raw materials is so high now..." Ma Qingfu was still a little worried.
"Qingfu, do the math," Li Xiangyang said, picking up a calculator. "Although raw material costs are higher, our product quality is good, and customers are willing to pay a premium. Plus, with economies of scale, the actual profit isn't much less."
Just then, the sound of a car came from outside. All three of them looked out the window and saw that black sedan again.
"This Zhao Mingyuan is really persistent," Wang Ergou said, pursing his lips.
This time, it wasn't just Zhao Mingyuan who came; there was also an unfamiliar middle-aged man, dressed in a sharp suit, who looked like someone important.
"Mr. Li, this is Mr. Jin, the chairman of our Jinyuan Industrial Group." Zhao Mingyuan's introduction had a hint of flattery in it.
Mr. Jin, who appeared to be in his early forties, spoke politely but had sharp eyes: "Mr. Li is young and promising; I've heard Mingyuan mention him before. I came here specifically today to discuss cooperation with him."
Li Xiangyang discreetly observed this General Manager Jin. Judging from the man's demeanor, he did indeed seem like an experienced businessman, but there was a hint of impatience in his eyes, clearly indicating that he had been cornered.
"Mr. Jin, you're too kind. Please have a seat." Li Xiangyang gestured to the sofa next to the coffee table. "May I ask how you'd like to collaborate, Mr. Jin?"
After Mr. Jin sat down, he got straight to the point: "Mr. Li, we're both businessmen, so let's not beat around the bush. This kind of price war benefits no one. Why don't we join forces and develop the market together?"
"How exactly will we collaborate?"
“We can form a joint venture. Your technology and distribution channels, our capital and equipment—we can complement each other’s strengths,” Mr. Jin said earnestly. “Profits will be distributed according to our investment ratio. What do you think?”
Li Xiangyang sneered inwardly, but remained outwardly calm: "Sounds good. But I'd like to know, how much capital does President Jin plan to invest?"
Mr. Jin and Zhao Mingyuan exchanged a glance, somewhat hesitant: "This...we can discuss it slowly."
"What about the equipment? What is the current daily production capacity of your production line?" Li Xiangyang continued to press.
"Uh... our equipment is quite advanced, but it's still in the debugging stage..." Zhao Mingyuan answered on behalf of the others, clearly feeling a little guilty.
Li Xiangyang stood up and walked to the window: "Gentlemen, if I may be so bold, this doesn't seem like you're here to discuss cooperation; it looks more like you're here to ask for help."
Mr. Jin's face instantly darkened: "What do you mean by that, Mr. Li?"
"What do you mean?" Li Xiangyang turned around and looked directly at President Jin. "A true alliance between two strong parties should involve both sides having the capability and sincerity, not one side struggling to survive and looking for a sucker to take over."
"You... what nonsense are you talking about?" Zhao Mingyuan jumped to his feet. "Our Jinyuan Industrial Group is a powerful company, how could we..."
“Strong financial backing?” Li Xiangyang interrupted him. “If they were truly strong financially, would they be delaying their workers' wages? Borrowing money everywhere? Begging me for cooperation?”
Mr. Jin's expression changed completely. He gave Li Xiangyang a deep look, then gestured to Zhao Mingyuan, "Let's go."
Before leaving, President Jin turned back, his voice laced with threat: "President Li, the business world is like a battlefield. I hope you won't regret your decision today."
Li Xiangyang smiled dismissively: "Don't worry, I never regret my decisions."
After the two left, Ma Qingfu said worriedly, "Xiangyang, won't we get into trouble for offending them like this?"
"Trouble?" Li Xiangyang sat down again. "Qingfu, you need to understand this: truly capable people don't easily threaten others. The more someone blusters but is weak inside, the less confident they are."
Wang Ergou nodded: "Brother Xiangyang is right. And judging from the conversation just now, they are indeed at their last gasp. They can't even come up with a concrete cooperation plan; they're clearly trying to get something for nothing."
That afternoon, Liu Jianjun came again, this time with an even more serious expression.
"Xiangyang, Jinyuan Industry has filed a complaint, saying you're maliciously raising prices and disrupting market order," Liu Jianjun said, getting straight to the point after sitting down.
Li Xiangyang put down the documents in his hand: "Director Liu, that's interesting. They raised the price first; we just followed suit."
"I know, I know," Liu Jianjun waved his hand, "but the county hopes you can take the initiative to cool things down, after all, harmony brings wealth."
"Take the initiative to cool things down?" A cold glint flashed in Li Xiangyang's eyes. "Director Liu, the business world is like a battlefield; no one will willingly show weakness. Unless..."
“Unless what?”
“Unless the other party shows goodwill first,” Li Xiangyang said, picking up his teacup and sipping slowly. “For example, they could settle the outstanding wages owed to the workers to prove their sincerity in cooperating.”
Liu Jianjun was taken aback: "How do you know they're in arrears with wages?"
Li Xiangyang smiled faintly: "Director Liu, can this kind of thing be kept secret? The news of the three skilled workers leaving has already spread throughout our circle."
Liu Jianjun sighed, "Alright, I'll go back and talk to them. But Xiangyang, you should know when to stop; after all, their background isn't simple."
"What's their background?" Li Xiangyang suddenly became interested.
"I heard that General Manager Jin's younger brother works in the provincial government, and at a fairly high level," Liu Jianjun said in a low voice. "So the county can't afford to be too biased towards either side."
Li Xiangyang sneered inwardly, but remained outwardly calm: "Understood, thank you for the reminder, Director Liu."
After seeing Liu Jianjun off, Li Xiangyang called Wang Ergou over: "Ergou, go and find out more about this Boss Jin, what his background is."
“Okay, Xiangyang.” Wang Ergou nodded. “My friend said that Jinyuan Industrial doesn’t have much money left in its books and is relying entirely on loans to stay afloat.”
"A loan?" A glint flashed in Li Xiangyang's eyes. "From whom?"
"I heard it's private lending, and the interest rates are very high," Wang Ergou said, a gloating expression on his face. "It probably won't last much longer."
Just then, Ma Qingfu rushed in, his face beaming with excitement: "Xiangyang, great news! Two more clients just arrived from the provincial capital, both wanting to sign long-term contracts!"
"What are the conditions?" Li Xiangyang immediately perked up.
"It'll be even higher than the current price, and they're willing to pay a 30% deposit upfront!" Ma Qingfu exclaimed excitedly. "Xiangyang, we're about to strike it rich!"