mtlumby2d Chapter 633 This risk is worth taking.
Chapter 633 This risk is worth taking.
That evening, Li Xiangyang treated Tian Guoqiang and Chen Zhihua to dinner. During the meal, the three discussed many topics related to the South China market, and Li Xiangyang gained a deeper understanding of the situation there.
"Mr. Li, to be honest, I really admire you," Tian Guoqiang said, raising his glass. "It's truly remarkable to have built a company to this scale in such a short time."
"I just happened to be born at a good time," Li Xiangyang said modestly. "Reform and opening up gave everyone opportunities; the key is to seize them."
"Everyone has opportunities, but few can seize them," Chen Zhihua remarked. "I've seen too many companies in South China, many rising and falling, but few like you who are so steady and pragmatic."
"When doing business, stability is paramount," Li Xiangyang said. "Blind expansion often leads to self-destruction."
The next afternoon, Lin Yajing arrived at the factory on time. She was a woman in her thirties, dressed in a business suit, giving off a very capable impression.
“Mr. Li, it’s a pleasure to meet you.” Lin Yajing extended her hand proactively. “Your factory is bigger than I imagined.”
"Manager Lin, you're too kind. Please come in." Li Xiangyang led her on a tour of the production workshop and quality inspection department.
Lin Yajing was very professional, asking detailed questions about every aspect of the production process, quality control, packaging, and storage. She also randomly selected a few products to taste and was very satisfied with the taste and packaging.
"Mr. Li, the quality of your products is indeed excellent," Lin Yajing said in her office. "Our Hualian Supermarket has very strict requirements for suppliers, but yours fully meets the standards."
“Thank you for your recognition, Manager Lin,” Li Xiangyang said. “By the way, General Manager Tian and Manager Chen from Tianrun Trading are also here. Would you like to meet them?”
Lin Yajing nodded: "Sure, I was just about to learn about Tianrun Trading."
Soon, Tian Guoqiang and Chen Zhihua arrived at the office. After exchanging pleasantries, they began discussing the details of the collaboration.
"Manager Lin, Mr. Li has proposed a very interesting cooperation model," Tian Guoqiang said. "It's that Hualian Supermarket will purchase directly from the manufacturers, but we will be responsible for delivery and after-sales service."
Lin Yajing considered it for a moment: "This model does have advantages. We can get better prices, and we have a professional service team."
"How exactly will the tasks be divided?" Chen Zhihua asked.
Li Xiangyang said, "I'll be in charge of production and quality control, Hualian Supermarket will handle procurement and sales, and Tianrun Trading will handle distribution and after-sales service. As for profit distribution, we can determine it according to our respective contributions."
“This model sounds good,” Lin Yajing said. “However, I need to report to the company headquarters first, since we have no precedent for this kind of tripartite cooperation.”
“I understand.” Li Xiangyang nodded. “We also need time to refine the cooperation plan.”
Over the next hour, the four of them discussed the various details of the collaboration, including price, quantity, delivery, and settlement. Although many issues still needed to be resolved, the basic framework had been finalized.
"Let's leave it at that for now. I'll get back to you as soon as I get back." Lin Yajing stood up to leave. "If all goes well, we can sign a letter of intent next week."
After seeing Lin Yajing off, Li Xiangyang, Tian Guoqiang, and Chen Zhihua continued their discussion for a while.
"Mr. Li, today's meeting was very successful," Tian Guoqiang said. "If this cooperation goes through, it will be good for both of us."
“Yes, the key is to get the details right,” Li Xiangyang said. “By the way, Mr. Tian, do you have any specific ideas about the investment?”
Tian Guoqiang frankly stated, "To be honest, what I need most right now is working capital. If you are willing to invest, I hope it can be an equity partnership, rather than a simple loan."
"Equity cooperation?" Li Xiangyang was somewhat surprised. "You mean you want me to invest in Tianrun Commerce and Trade?"
“Yes.” Tian Guoqiang nodded. “This will not only solve our funding problem, but also give you a stable foothold in the South China market.”
Li Xiangyang pondered for a moment: "This proposal is very attractive, but I need to understand Tianrun Trading's financial situation and future plans in detail."
“No problem, I’ll prepare detailed information for you,” Tian Guoqiang said. “But I’d like to ask first, how much are you considering investing?”
"It depends on the specific circumstances," Li Xiangyang said. "If Tianrun Trading's prospects are indeed good, I can consider investing one to three million."
Chen Zhihua said excitedly, "Mr. Li, if you could invest three million, we could completely solve our funding problem and expand our business."
"Don't be too happy yet," Li Xiangyang cautioned. "Investing is a serious matter; I need to fully assess the risks."
“That’s only right,” Tian Guoqiang said, expressing his understanding. “We will provide all the necessary information and cooperate with your investigation.”
That evening, the three discussed the investment framework in detail. Li Xiangyang put forward several key conditions:
First, we request to review Tianrun Commerce's financial statements and audit reports for the past three years;
Second, it is required to understand the true situation and credit status of all customers;
Third, it is required to formulate a detailed development plan for the next three years;
Fourth, if he were to invest, Li Xiangyang would require a certain degree of influence on the board of directors.
Tian Guoqiang agreed to all the conditions and promised to provide all the information within a week.
The next day, Tian Guoqiang and Chen Zhihua returned to the provincial capital. Before leaving, Tian Guoqiang said to Li Xiangyang, "Mr. Li, regardless of the final outcome of the investment, I am very grateful for your help today. If the cooperation with Hualian Supermarket goes through, we will fully cooperate."
"Mr. Tian, you're too kind. It's about win-win cooperation," Li Xiangyang said. "I believe that as long as we cooperate sincerely, we can definitely create greater value."
After seeing the two off, Li Xiangyang returned to his office and began to reflect on the gains and losses of this collaboration.
In the short term, direct cooperation with Hualian Supermarket can bring stable orders and considerable profits; in the long term, if the investment in Tianrun Commerce is successful, it will be equivalent to having a foothold in the South China market, laying the foundation for future expansion.
Of course, risks exist. Investing in Tianrun Commerce means putting in a large amount of capital and bearing the risk of the company's poor management. However, Li Xiangyang felt that the risk was worth taking.
Three days later, Wang Ergou returned from the provincial capital, looking travel-worn.
"Xiangyang, I've had quite a haul this time!" Wang Ergou said excitedly as soon as he entered. "Not only did I find out the details about Tianrun Trading, but I also made an unexpected discovery."
Li Xiangyang put down his work: "Let's talk about Tianrun Trading first."
“Tian Guoqiang is indeed a good person.” Wang Ergou sat down. “I spoke with several business owners who have dealt with Tianrun Trading, and they all said that Tian Guoqiang is a good person, never defaults on payments, and doesn’t engage in shady practices.”
"Then why are they experiencing financial difficulties?"
"It's mainly because they trusted their partners too much," Wang Ergou shook his head. "Tian Guoqiang advanced nearly three million yuan to help those suppliers who ran into trouble. In the end, some factory owners ran off with the money, and some factories went bankrupt."
Li Xiangyang frowned: "Three million? He told me it was two million before."