Siheyuan: Pioneer in anti-corruption, fighting against evil!
Chapter 110 Fierce Competition
As chairman, He Yuzhu does not receive a salary, but Lou Xiao'e still enjoys 5% of management dividends and gives another 5% to the management.
Employees receive internship wages, basic wages, seniority wages, etc., and the proportions of social insurance and medical insurance are clearly defined.
Welfare benefits are also clearly listed as group regulations.
Baiwei Group owns a large amount of land. Since it does not accept franchises, all Sichuan-style branches are self-operated. The logistics and warehousing facilities are also purchased on the land, and its fixed assets are valuable.
With the appreciation of land and housing prices, the group's fixed assets have increased year by year because they started early.
Therefore, the cost of land purchase and real estate construction is extremely low, and the appreciation rate far exceeds inflation.
At the end of the meeting, the focus was on discussing export strategies, emphasizing the need for further promotion.
When the domestic market is already aware of the company, publicity and product launch for overseas branches are particularly important.
This requires increased investment!
At the same time, competition in the overseas market is fierce. However, Master He's Food has won the favor of consumers to a certain extent with its unique taste, especially the new technology of adding broth and vegetable packages.
The rich flavor and healthy ingredients of instant noodles make them popular.
He Yuzhu is ingenious in packaging design, allowing consumers to add other ingredients on their own, making the production process simple but able to produce noodles with rich taste, which has been well received.
After all, food combination is a science, and most people are not proficient in it.
After the meeting, He Yuzhu called Lou Xiaoe and told her: "Xiaoe, I plan to create a new ** brand.
“He has been developing the formula, and although there are challenges, there are some initial results, but they still need to be tested by technicians.
Lou Xiao'e was stunned when she heard this, and then asked excitedly: "Have you had this plan a long time ago?"
"Of course, we already have logistics and storage facilities, as well as breeding and processing bases on the grasslands, so the foundation for **production is already in place.
He Yuzhu lit a cigarette and continued, “The next issue is the issue of dairy cow breeding and processing technology.
“This requires professional breeding and processing knowledge.
"He Yuzhu continued," You may need to run errands, and you will be mainly responsible for the management of products such as milk powder, cream ice cream and pure milk.
“There are relatively few chemical ingredients in milk powder, but the ingredients added need to undergo rigorous testing to ensure scientific safety, after all, it is for children to eat.
He Yuzhu emphasized, “Safety is the primary consideration.
Lou Xiao'e nodded to show her understanding: "I understand, I will find an authoritative foreign institution to conduct testing, and even pay attention to foreign scientific research results, especially discoveries in food raw materials.
" she added.
It is not difficult to create a new brand because the formula is already mature.
Afterwards, Lou Xiao'e will send people to various parts of the world to conduct testing and obtain certificates of qualification from authoritative organizations.
These are essential when Master Ho Food enters the international market, considering food safety standards.
He Yuzhu's attention was not on these things at the moment. His focus was on the financial market, although he knew very little about financial operations.
He planned to make a fortune during the Internet bubble, raise a large amount of funds, convert them into US dollars and then invest them in the Chinese stock market.
He adopted the method of leasing stocks, buying them at high prices, and then buying them back at low prices when the bubble burst and returning them to financial institutions.
The operation itself is not complicated; the difficulty lies in how to use leverage.
Although He Yuzhu has sufficient funds, he is not well-known in the financial world. In addition, he is from the East, so even if he has strong financial resources, it is not easy for him to obtain leverage support.
To this end, He Yuzhu contacted several financial institutions, and finally Goldman Sachs was willing to provide leverage because they had heard of He Yuzhu.
After all, Goldman Sachs has a branch in Hong Kong Island and has some understanding of Chef Ho and Sichuan Flavor, both of which are part of the Baiwei Group.
Many financial institutions in Hong Kong Island have been paying close attention to the Barrymore Group, looking forward to its listing; even Goldman Sachs has proposed a listing plan.
As a result, the other party did not mention the listing at all, because they were not short of money. For Baiwei Group, money was not a necessity.
Expansion was slow to begin with, with a large amount of capital lying idle, until the establishment of the warehousing and logistics company, when large expenditures began.
Either don’t do it, or do it to the best of your ability, as if this is the core concept of the group.
So Goldman Sachs ended up guaranteeing, providing 15 times leverage, and taking charge of the operation.
He Yuzhu didn't care about it at all and agreed directly. He then rented the stocks and sold them, and then waited for changes.
At the same time, he was not idle. He commissioned Goldman Sachs to help him find farms and land on the West Coast of the United States to grow soybeans.
That’s right, the goal of He Yuzhu’s trip is to plant soybeans and subsequently build an oil press to produce edible oil. This is his new plan.
Why build a factory in **? The main reason is the transportation cost. Of course, some of the products will be shipped back to China as raw materials for other food processing.
This was He Yuzhu's original intention for this financial operation. The expected profit was more than enough, so he planned to buy some shares and establish his own investment company in **.
Baiwei Group’s investment company is focused on the domestic market, and he doesn’t mind sharing wealth with Lou Xiao’e; but abroad, this world belongs to him alone.
Seeing that He Yuzhu was clear about his goals and full of confidence, Goldman Sachs readily accepted the offer and focused on serving large clients.
So they acted quickly because the other party obviously had big money and needed to negotiate the acquisition of the farm, or might directly purchase large tracts of unowned land.
But this requires a thorough plan, and it is best to purchase in batches.
He Yuzhu just asked them to search and investigate, and would not make a final decision immediately.
As the Internet bubble bursts, there will inevitably be a chain reaction. The cost of acquisition will be much lower then, and it would be foolish to act now.
He Yuzhu brought Wen Li here, and the two of them toured the west coast of the United States, especially enjoying time in Miami Beach.
They were just like ordinary tourists, shopping and sightseeing. He Yuzhu also bought a lot of ingredients, especially seafood, and cooked them himself when he returned to the hotel.
At first, the hotel chef was a little dissatisfied with He Yuzhu's use of the kitchen, but high-end hotels put service first, and it was so romantic for guests to cook for their wives! After He Yuzhu demonstrated his superb knife skills and cooking skills, the chef was silent and even took the initiative to help.
The translator hired by He Yuzhu had a hard time as he had to translate He Yuzhu's instructions. Although He Yuzhu did not understand Western food, he knew the ingredients very well.
Western cooking is actually not complicated. He is proficient in several cuisines and knows every cooking method by heart. With just a little guidance, the chef can gain a lot.
When He Yuzhu and Wen Li were exhausted from playing, the Internet bubble burst and the stock prices of major Internet companies fell sharply.
He Yuzhu did not wait for the lowest point. When he felt satisfied with the returns, he immediately repurchased the stocks and returned them to the financial institution, paid the interest, and repaid the leveraged loan and its interest.
He himself reaped the rewards, which surprised everyone at Goldman Sachs.
He Yuzhu then instructed them to start the acquisition.
Large farms were purchased, and agricultural companies and processing plants were established.
Goldman Sachs helped identify suitable industry managers.
Because the land He Yuzhu purchased was connected and included some small towns, he was able to hire agricultural workers here and essentially became the master of the area.
Even the police here have to respect him because their salaries are paid from the taxes paid by He Yuzhu.
In some uninhabited areas, He Yuzhu has the ability to develop new towns as residences for farmers and workers.
Like finding water sources, they can only rely on groundwater, and electricity is supplied through cables connected to the surrounding main lines.
It is difficult to lay down comprehensive infrastructure in sparsely populated areas, but this is not unsolvable. He Yuzhu does not need to worry too much, as someone will naturally help him solve these problems.
He could rent out houses to workers, and as long as he had enough land and enough workers, he could become the owner of many small towns.
This feeling of control is really refreshing!
People from Goldman Sachs reminded He Yuzhu that he should hire employees of different ethnicities. He Yuzhu did not object, but he preferred to hire Chinese.
Next is the issue of equipment. Since there is so much land, mechanized farming can save manpower and improve efficiency.
Various equipment is purchased according to the land area, the efficiency of the machinery is amazing!
By purchasing land, setting up companies and hiring workers, He Yuzhu was able to avoid many taxes.
As for buying a house or a car, he has no such plans.
In the construction of the museum, the Architecture Research Institute invested more than He Yuzhu, because there are new concepts and technologies here. Although it is not a revolutionary breakthrough, it is indeed progress.
They attach importance to the integration of ancient architecture and modern style and hope to see actual results, so they are extremely strict in project supervision.
Xu Huizhen and Chen Xueru are fully aware of the importance of this project. Any problem may lead to starting over, so they will not compromise easily.
Even if you don't make money, you should give it your all.
They even went to the construction site every day just to supervise the technicians and learn from the people in the Architecture Research Institute.
……
"Mr. He, this is a map of our land distribution!" During this period, the people at Goldman Sachs tried their best to find land to purchase and deal with the withdrawal of some funds.
Now they do not need to file tax returns as it is once a year and they can take advantage of various tax reduction strategies during this period.
They had suggested that He Yuzhu purchase real estate or luxury goods, which would be tax-deductible.
However, He Yuzhu was not too impressed by this. He thought of a solution: art consumption.
He buys antiques for himself, which counts as an investment in art. **'s art consumption can also be deducted from taxes and can also maintain and increase its value.
This is consistent with He Yuzhu's actual situation, but the problem is that He Yuzhu purchased it at a too low price and he had no intention of falsifying the information.
Things that are illegal are not good for him.
As for buying a house, it is not cost-effective for him because the utilization rate is too low.
Neither his eldest son nor his second son were suitable to go abroad, especially in **.
Their wives and children will not be suitable for traveling abroad in the future, including traveling or studying abroad.
So, whatever he buys, he probably won’t use.
However, He Yuzhu immediately thought that airplanes would be needed in the future, so he had a new idea.
"I want to buy a plane. Do you think this is convenient?" he asked.
The Goldman Sachs people were stunned for a moment and quickly asked: "Mr. He, do you really want to buy a plane?"
“Of course, my group’s subsidiaries include logistics companies, and air transport may be needed in the future.
We are currently working with airlines to utilize their remaining luggage space on their flights.
"He Yuzhu explained: "But this number is uncertain, after all, the remaining space on each flight is difficult to predict.
“In the long run, this will affect logistics efficiency and reputation.
“So I plan to buy an airplane to use as a cargo transporter.
“This should significantly reduce taxes, right?” The Goldman Sachs people immediately responded: “Of course, we can go directly to Boeing headquarters to see what type of aircraft you need to order.
"Okay!" He Yuzhu also wanted to conduct an on-site inspection.
Under the arrangement of Goldman Sachs personnel, they flew to the location of Boeing on a small business jet prepared by Goldman Sachs.
Boeing has sent people to meet them directly at the airport, arranged a special car to take them to the pre-booked hotel, and confirmed the time of the visit.
Wen Li asked curiously, "Why are they so enthusiastic and provide such thoughtful service?"
He Yuzhu smiled and said: “They are developing faster than us, and the market competition is fierce.
Manufacturing aircraft is not easy, but they also face competition, such as Airbus from Europe, and service is also one of the means of competition.
“This is something we can learn from, but we haven’t done enough in this regard and it will take time to improve.
"Wen Li thought for a moment and nodded in agreement: "Indeed, I am very satisfied with their service. If I were a buyer, I would definitely choose them.
"That's right!" He Yuzhu immediately picked up the phone, "I haven't discussed the purchase of the aircraft with Liu Xiao'e yet, I'll get her opinion first.
After saying that, he directly dialed the international long-distance call. After Liu Xiao'e answered the phone, He Yuzhu explained the situation in detail.
“This incident was caused by me, and I have prepared several plans.
First, I can lend money to the company without charging interest, and just repay it on time every year.
“The second is stock investment. If you have enough money, you can add more funds.
“The third one is also a share investment, but you don’t need to invest now, it will be deducted from the dividends later.
"..." Liu Xiao'e thought about it and realized that her dividends over the years had not been used for investment. She only bought some properties in Hong Kong Island and Beijing.
Her home in Hong Kong Island used to be a villa, but now she has moved to a larger villa in the Mid-Levels area of Repulse Bay.
In addition, she also bought some real estate as an investment and had sufficient funds, but the price of four planes would be cheap even if they were used for cargo transportation, but still expensive.
It was difficult for her to take out so much money at one time, so she said, "Let's buy it in batches, and the company will repay it year by year. This way, we can save a lot of taxes financially and there will be savings every year.
“When you come back, I will have someone prepare the loan contract.
"no problem!"
This is a convenient operation. The same four aircraft can be sold in different countries, which can save some taxes. This is a legal and reasonable operation.
He Yuzhu saves taxes on stock market gains, while domestic companies increase spending and reduce taxes on profits.
“By the way, I have also purchased a large amount of land to grow soybeans and process them into edible oil to be included in the Chef Ho food series.
"He Yuzhu continued.
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