svetikya Page 760
Page 760
The total investment in this factory is astonishing, exceeding 100 million RMB!
Such a bold move has successfully created Asia's premier and largest electron tube processing base.
Moreover, this place can continuously produce up to 1200 million different types of vacuum tubes every year!
And looking at the scale of funds that Elton Bowles plans to invest, it's unlikely to reach such a level.
However, all of that is now history. The investment in equipment alone would certainly not be less than fifty million yuan! Keep in mind, that's an extremely large sum!
The reason why He Yuzhu dared to propose such a plan was naturally because he had full confidence and a strong ability to persuade the other party.
After all, if his unique approach were implemented, it would easily save the other party tens of millions of dollars in investment!
Even more enticing is that the other party can have priority to purchase those advanced transistors directly from him!
It must be said that for Elton Bowles, this plan is truly an excellent and extremely attractive option!
Elton Bowles then asked a few more questions, wanting to thoroughly understand any potential problems...
Then he fell into deep thought. His original plan was to take out a loan after the industrial building was completed, and to invite some peers to invest in it, so as to build a transistor production base.
It should be noted that our initial investment in this project was no less than HK$3000 million!
However, at this moment, someone actually made such an enticing suggestion:
All of these financial investments no longer need to be borne by myself.
All you need to do is sell that industrial building to them, and they will then take full responsibility for production and supply the necessary parts directly to you.
In this way, they can successfully save themselves a whopping 3000 million yuan in huge investments in fixed assets!
If the 3000 million originally planned for investment could be redirected to other areas, there is no doubt that with his keen business acumen and accurate market insight, he would be able to reap substantial profits.
Currently, the rate of return between this input and output is roughly fluctuating around 10%.
A simple calculation shows that this means there is a potential extra net profit of up to 300 million per year!
Thinking of this, Elton Bowles couldn't help but ponder in his heart, weighing the pros and cons.
Finally, after much deliberation, a clear and definite decision gradually emerged in his mind...
Chapter 537 Signing the Contract
“Mr. He’s proposal is indeed impressive, but if I may be so bold, I still have some doubts,” Elton Bowles said earnestly.
“Mr. Elton, please speak freely,” He Yuzhu replied calmly with a smile.
"Mr. He, can you guarantee a stable supply of transistors? After all, this is crucial for our future cooperation."
Elton Bowles stared intently at He Yuzhu, awaiting his reply.
"Mr. Elton, you can rest assured! The transistors we produce can withstand rigorous testing from all angles and in all aspects, both in terms of quality and performance. You have no need to worry about that."
He Yuzhu answered confidently.
After receiving such a positive answer, Elton Bowles breathed a slight sigh of relief, but then immediately launched into a series of questions.
These issues mainly revolve around whether he can successfully obtain a sufficient number of transistor components, and the various situations that may arise in the subsequent foundry process.
Faced with Elton Bowles' barrage of questions, He Yuzhu remained patient, providing detailed and convincing answers to each one, and making corresponding assurances.
Finally, after a thorough discussion, Elton Bowles seemed satisfied.
He paused briefly, then slowly began to speak:
"If conditions permit, I would like to visit your company's production workshop first. Only by seeing the actual production process and environment with my own eyes can I truly have a clear understanding."
"That's no problem at all. We welcome you to visit and inspect us anytime," He Yuzhu readily agreed.
With this, the formalities regarding the cooperation between the two parties were temporarily concluded. At this point, for Elton Bowles, whether He Yuzhu was willing to lower the price was no longer the most crucial factor.
Compared to slight price fluctuations, the most important thing is to find a way to reasonably save on this huge amount of fixed assets, which is also the primary task he needs to focus on solving right now.
As night fell and the city lights came on, a banquet filled with laughter and friendly exchanges slowly came to a close in a warm and harmonious atmosphere.
Time quietly passed until the next morning, when sunlight filtered through the thin clouds and sprinkled down on the earth.
At this moment, Elton Bowles, leading his inspection team of more than ten people, entered the magnificent Hongfa Industrial Building with the enthusiastic accompaniment of Liao Liewen.
The building has a hidden interior, with three floors meticulously designed as transistor manufacturing workshops, and another floor dedicated to radio assembly.
Elton Bowles and his team first stepped into the production workshop, where they were amazed by what they saw.
Contrary to the dirty, chaotic, and disorderly scene that everyone had originally imagined, everything here appeared orderly and spotless.
Inside the spacious and bright workshop, the workers, dressed in uniform white work clothes, looked like hardworking angels.
They operated the various precision instruments with focused concentration, their techniques skillful and their movements fluid and natural.
Each work area is well-organized, raw materials are neatly arranged, and tools and equipment are properly placed.
The entire workshop was filled with a rigorous and serious work atmosphere, as if even the air itself was permeated with the spirit of striving for excellence.
Next, the group moved to the assembly workshop. There, too, a high degree of cleanliness and order was maintained.
Each workstation is rationally laid out, and the workers cooperate seamlessly. They methodically and precisely assemble the various components, much like an artist meticulously crafting a masterpiece.
The group members were amazed and impressed by the highly efficient and orderly work environment and the impeccable cleanliness.
After touring these advanced production lines one by one, they walked together into a small and exquisite conference room.
Here, Elton Bowles finally gained a clearer and more comprehensive understanding of the company. He couldn't help but exclaim:
"No wonder your company's radios are of such outstanding quality! This is evident from the strict and high standards of environmental requirements!"
His words revealed his sincere admiration.
Prior to this, Elton Bowles' company had purchased several transistor radios manufactured by He Yuzhu's company.
Once the radios arrived, the technicians immediately began a comprehensive and in-depth test.
The result was a pleasant surprise. The radio's appearance and workmanship, as well as the quality and performance of its internal components, were all outstanding and almost impeccable.
After this on-site visit, Elton Bowles finally realized that He Yuzhu's company was not to be underestimated; it was not only good, but in some aspects it might even be better than his own company.
Faced with such an outstanding partner, He Yuzhu was very humble and polite, exchanging only a few simple pleasantries.
He then enthusiastically began to talk to Elton Bowles about his grand plans for the future.
He Yuzhu confidently stated that if he had the opportunity to successfully purchase the industrial building from the other party, he planned to invest at least HK$8000 million to introduce advanced production equipment.
Once this goal is achieved, the existing production scale will expand rapidly by more than four times! At that time, the number of transistors that can be produced each year will reach tens of millions, which will undoubtedly greatly enhance the company's production capacity and market competitiveness.
Regarding the future cooperation model between the two parties, He Yuzhu also proposed several feasible solutions.
For example, Elton Bowles could choose to purchase a large number of high-quality transistors directly from He Yuzhu and then ship them back to England for further processing and production; or he could commission He Yuzhu to help assemble them into complete radio products and then ship them to England.
In addition, through Hong Kong, an important trade hub, these radios are expected to be sold to other vast markets around the world.
In this way, under this cooperative framework of clear division of labor and mutual benefit, He Yuzhu's company will mainly undertake the important tasks of production and assembly.
Elton Bowles' company, on the other hand, only needs to focus on key aspects such as marketing, customer maintenance, and product sales.
With our respective strengths and close cooperation, we are confident that we will be able to create a more brilliant and prosperous new world for business.
This allowed them to achieve a remarkable transformation from a company with substantial fixed assets and primarily focused on manufacturing to a light-asset enterprise emphasizing design and sales.
The grand blueprint drawn up by He Yuzhu is truly captivating, even the well-informed Elton Bowles couldn't help but be impressed.
It's important to understand that in the current business environment, the OEM (Original Equipment Manufacturer) model is not yet widely popular, and it was completely unheard of for Elton Bowles.
However, at this moment, this brand-new idea was like a mysterious key, quietly opening a magical door to the unknown, instantly stimulating countless novel ideas and thoughts in his mind.
According to He Yuzhu's proposed plan, he only needs to meticulously draw up exquisite design drawings, and then He Yuzhu's company will use its strong production capacity to transform these designs into real, high-quality products.
The finished products can then be quickly transported to vast markets around the world via convenient and efficient port transportation channels.
This not only significantly reduced Elton Bowles' huge investment in fixed assets, but also effectively alleviated the heavy financial pressure he faced.
Moreover, the quick-thinking Elton Bowles soon came up with even more possibilities.
If this radio product is a great success, does that mean that He Yuzhu can be entrusted to further venture into the production and manufacturing of televisions and other types of home appliances? After all, the dawn of a win-win cooperation is already shining ahead.
Finally, after careful consideration, Elton Bowles said with deep emotion:
“Mr. He, your sincerity has deeply moved me. In principle, I personally agree with this cooperation plan. I am willing to transfer that industrial building to you first. Let’s sign a preliminary letter of intent first. After the new production base is officially completed and put into operation, we can finalize a more detailed and legally binding agency agreement.”
He Yuzhu wore a faint smile as he calmly extended his right hand and said firmly, "There's absolutely no problem with that!"
However, signing a contract is not something that can be done overnight; it requires a series of rigorous procedures and discussions. Therefore, both parties decided to board the ship together and head towards the Guantang Industrial Zone.
Upon arrival at the destination, a brand-new industrial building came into view.
The building has 11 floors, which is the maximum number of floors that can be built in industrial buildings at present due to local building regulations.
However, it is worth mentioning that it occupies a very large area, with each floor covering a total area of 15,000 square feet.
To save space to the greatest extent possible, the designer cleverly placed the spiral staircase at one end of the building.
This not only facilitates the movement of people up and down, but also allows trucks to drive directly upstairs.
The top floor of the building was planned as offices and residential areas, while the ground floor was used as shops. In reality, only nine floors were actually usable as production workshops.
At this moment, workers are busy laying cables. It can be seen that the entire main structure and interior painting work have been successfully completed.
Based on the current progress, it won't be long before we can start purchasing the relevant equipment and put it into formal production.