Siheyuan: My wife is Xu Huizhen

Chapter 655 Return to Hong Kong

Such a meticulous layout, from raw material procurement and production process optimization to product sales channel integration, fully meets market demand, fully taps every potential resource, and improves overall production efficiency.

From a long-term perspective, it will definitely open up new profit growth points for the company and create greater value.

However, when He Yuzhu was concentrating on calculating the total value of the equipment needed for the six industrial buildings, he was suddenly shocked and couldn't help but take a breath.

That eye-catching number - 3.5 million, hit his heart like a heavy hammer.

This was a staggeringly large investment! Three hundred and fifty million yuan—this figure seemed not merely a cold symbol but a heavy, suffocating boulder, weighing heavily on his heart. He instantly felt the immense weight of the responsibility on his shoulders, and the road ahead was fraught with obstacles.

Despite the atmosphere of doubt at the scene, He Yuzhu still nodded firmly, his eyes flashing with unquestionable courage and determination.

He straightened his back and announced the adjournment of the meeting in a steady and powerful voice.

Everyone was surprised by his decision. They looked at each other and then began to discuss in low voices. Some frowned, some shook their heads and sighed. But no matter how many doubts they had in their hearts, they could only pack up their things silently and leave the meeting room one after another.

After returning to the office, before He Yuzhu had time to catch his breath, Liao Lieying walked in right after him.

She looked hurried, her steps quick. She slammed the documents in her hands on the table with a loud thud, sat down, and spoke bluntly, "Look at what's going on! The company has been working so hard for the past four months, but the operating profit is only a mere three million. Looking at the account, the balance is only 4.2 million. We're on the verge of purchasing equipment, but we have no idea where to find the funds. The company's financial situation is extremely tight, and every expense has to be carefully considered. That huge equipment purchase fee is like a mountain looming over us, weighing us down. It's a truly daunting problem."

He Yuzhu frowned slightly, his expression showing a hint of solemnity.

He is well aware of the company's current operating conditions and the situation is indeed not optimistic.

During the Spring Festival, the factory experienced a period of shutdown due to employee vacation arrangements. The machines stopped roaring and production came to a standstill.

Not only that, after the Spring Festival, the market fell into a state of sustained weakness, consumers' purchasing enthusiasm dropped significantly, and they held their wallets tighter, which directly led to a sharp drop in the company's profits.

In the past, the company's four industrial buildings could generate 1 million in profits each month through efficient production in months with good production operations.

If this good momentum is maintained, the profits generated by these four industrial buildings will reach 12 million in a year, which is undoubtedly a very considerable income, enough to support the company's many expansion and development plans.

But now, reality has dealt them a heavy blow.

You know, when Li Chaoren first entered the plastics industry and opened a plastics factory, he was busy from dawn to dusk every day during those long three years.

In order to purchase raw materials of suitable price and good quality, he ran around, shuttled between different suppliers, and endured cold stares and difficulties; in the production process, he kept a close eye on it at all times, for fear of any quality defects.

During this period, he encountered many difficulties such as difficulty in capital turnover and fierce market competition, and went through countless hardships that ordinary people could hardly imagine. But even so, he only earned 300 million Hong Kong dollars in the end.

In comparison, the profitability of these four industrial buildings is astonishing, a world of difference.

Moreover, although the radio business appears to be booming at the moment, the market demand is extremely strong and the products are in short supply. The radios carefully displayed in stores are often snapped up by eager consumers as soon as they are put on the shelves, and the scene is extremely lively.

But in reality, the profits behind this are far less than they seem at first glance.

Throughout the entire production and sales chain, raw material costs continue to rise with market fluctuations, and the prices of high-quality electronic components remain high.

In terms of labor costs, as workers' demands for salary and working environment increase, expenditures are also continuing to increase.

During the transportation process, not only the long distances between different regions must be considered, but also cost fluctuations caused by factors such as road conditions and oil prices must be dealt with.

In addition, there are numerous taxes and fees that pile up layer upon layer. After this series of cost compression, the net profit at the end is really limited.

At this moment, Liao Lieying's eyebrows furrowed, her eyes filled with worry, and she couldn't help but ask, "Although radios are indeed very popular in the market right now, business is booming, and the profits are considerable, the scale of this investment is simply too large. Our company's existing capital reserves are simply not enough to support such a large project. This huge funding gap is like a mountain looming before us, weighing us down. How to fill it is really worrying and keeps me awake all night."

He Yuzhu seemed to be very confident. He stood straight with his hands casually tucked into his trouser pockets. The corners of his mouth raised slightly, revealing a confident and determined smile. He comforted him slowly and calmly: "Don't worry, this money will never come out of the company's account. Recently, I have been running around, using a lot of connections, and it took a lot of trouble. Fortunately, hard work pays off, and I finally succeeded in getting the equipment I needed." His tone was relaxed and natural, as if the difficulties and obstacles along the way were not worth mentioning, and everything was under his control.

When Liao Lieying heard this, a hint of doubt flashed across her beautiful eyes, and her smart eyes narrowed slightly, as if she was quickly sorting out various possibilities in her mind.

After a brief silence, she raised her hand and pointed thoughtfully towards the north. With a hint of tentativeness in her tone, she asked softly, "Could it be their investment?"

She secretly speculated that, given the current complex situation, the only source of such immense strength, capable of providing such a massive amount of equipment at once, could be a powerful force coming from a specific direction. After all, past evidence indicated that the northern region held immense resources and potential. Any action by the forces behind it could easily cause significant disruption within the industry.

He Yuzhu's lips curled up slightly, revealing a confident smile. He nodded confidently in acknowledgment, "Indeed, this batch of equipment was carefully selected and shipped from Germany. Their industrial manufacturing technology is leading, and the precision and stability of the equipment far exceed domestic standards. It plays a vital role in our upcoming projects. Although the transportation process was full of twists and turns, fortunately, everything went smoothly, and the equipment has now been properly installed. You, please stop worrying about these equipment and focus on recruiting. The new production plan is already on the verge of full implementation, and we urgently need a large number of workers with rich experience and mastery of cutting-edge technology, as well as professionals in various fields. You must do a solid job in recruitment, strictly screen and introduce a group of high-quality fresh blood to the company, helping the company seize the initiative in this transformation and development."

Although detailed market research and data statistics show that the company's future industrial layout will cover as many as 28 industrial buildings, which is a considerable scale.

But He Yuzhu was clear in his mind and had no intention of investing all these buildings in the production of electron tubes.

After all, this time expanding the production scale to two vacuum tube production workshops and six transistor production workshops has already reached the ceiling of the company's current capabilities.

From the perspective of core technology reserves, the research and development and application of new technologies still need time to mature and are not enough to support larger-scale production.

In terms of staffing, the number of professional and technical workers and management talents is limited, and a sudden expansion of the scale cannot guarantee efficient and orderly production.

Turning our attention to the market, consumers and partners' acceptance of new products still needs to be improved, and expanding market share will not happen overnight.

After weighing all these factors, He Yuzhu knew that now was not a good time for blind expansion, so he resolutely decided to temporarily shelve the plan to further expand the production scale and first stabilize and strengthen the existing business.

As summer quietly approaches, the future use of the industrial building is facing a major transformation. With the ever-changing market economy and the company's own strategic adjustments, optimizing its industrial layout is imperative. With his keen business acumen, He Yuzhu has already carefully planned this.

For the electronics business, maintaining eight industrial buildings is the perfect size. This scale not only ensures orderly production and a stable supply of products to the market, but also cleverly controls various costs within a reasonable range, thereby maximizing economic benefits and laying a solid foundation for the company's continued development.

As long as there is sufficient supply of raw materials, the factory can rely on advanced production technology to continuously produce large quantities of high-quality equipment.

In this way, hundreds of millions of yuan will be saved, which is undoubtedly a considerable cost reduction.

He Yuzhu fell into deep thought, his mind like a sophisticated computer, repeatedly weighing the priorities of various matters and funding allocation plans.

After a moment, he said with a firm look and a determined tone, "First, allocate 350 million to pay for the land in Haojiang. That piece of land has a prime location and huge potential for future development. The sooner we acquire it, the sooner we can lay out our plans."

He paused briefly, tapping his right hand lightly on the table, as if organizing his increasingly clear thoughts. Then he continued methodically, "The remaining 70 will be used to initiate construction. First, we'll build the basic framework and advance the preliminary preparatory work. We'll then flexibly allocate resources based on actual conditions."

Buying the land is only the first step in a long journey. There are still a large number of complicated matters waiting for He Yuzhu's team to deal with.

First, hire a top professional design company in the industry.

These design companies need to conduct in-depth research on the unique local customs and culture of Haojing, such as the celebration methods of local traditional festivals and the living habits of residents. At the same time, they must accurately grasp the current business atmosphere and analyze the layout and characteristics of various surrounding commercial facilities.

On this basis, a unique design scheme is carefully crafted according to the different positioning of the future hotel, such as high-end luxury or people-friendly and convenient. From the overall appearance of the hotel to the division of various functional areas inside, no detail can be missed.

Once the plan is finalized, it’s time to look for a reputable and experienced construction company.

Such companies must not only have a track record of successfully building large-scale commercial buildings, but also be familiar with local building codes and construction environments to ensure that the design plan can be perfectly implemented and take charge of the specific construction matters.

Moreover, there are more scientific and reasonable arrangements in terms of fund payment, and it is not necessary to pay all the money in full at one time.

He Yuzhu's team can negotiate with the construction company to allocate funds in stages and regularly according to the construction progress.

For example, at key nodes such as completion of foundation engineering, topping-out of main structure, and completion of interior decoration, corresponding proportions of payment will be made.

In this way, as the company's business progresses steadily and orderly, the hotel project will gradually generate profits.

After careful calculation, the profits generated by the hotel operations every month will be sufficient to cover the cost of hotel construction, and there will even be a considerable surplus.

He Yuzhu already had a clear plan for this remaining funds. He planned to use it to purchase land for the second hotel.

While purchasing the land, the construction of the new hotel was started simultaneously. From design bidding to construction team selection, we followed up closely, allowing the hotel business to achieve dual-wheel drive, expanding rapidly as if it had wings, and occupying a more important position in the business landscape of Haojing.

When Liao Lieying heard this, her doubts grew rapidly like sprouts breaking through the soil in spring. She couldn't help but ask, "So, are you planning to use all the profits generated this year to build those two hotels?"

Upon hearing this, He Yuzhu didn't hesitate at all. His eyes were as firm as the brightest North Star in the night sky. He nodded heavily and replied in a resolute tone, as if reciting an unquestionable oath, "Indeed, we currently have 10 industrial buildings in production. Since opening, our products have been well received as soon as they were launched on the market, just like seedlings after a long drought finally receiving a rain. The market feedback is very good. After careful calculation, the monthly profit can reach approximately 250 million."

When Liao Lieying heard this, he lowered his head slightly and started to calculate silently in his heart.

Her thoughts were like a sophisticated computer. Based on the current market conditions, she took into account factors such as the cost of raw materials, various expenses in the production process, and the sales price of the product, and calculated them carefully.