But Liu Shitang knew that actually, like his son, he had no choice either. No matter how much his heart ached for his son, in the end he still had to do as his son said.
Liu Shitang was well-versed in what the market needed and where targeted markets could be found. He had long known that some mold processing required extremely high precision – he used to sigh helplessly because his old machine tools couldn’t handle it. But now things were different. Tengfei had good machine tools and his son. As long as he found the right places and told people what model machine tools they had at home, handing over photocopies of the specifications, the other parties were all industry insiders who understood immediately and would follow him to Tengfei to scout the location. Then they only needed to talk with his son, as they say, experts know competence just by extending their hands, and the business was invariably successful. The only thing that needed negotiating was price, because his son required advance payment and cash on delivery. But precisely because most companies with good machine tools were large enterprises that generally wouldn’t stoop to doing small processing jobs of just a few pieces, even though Tengfei’s processing price requirements were somewhat high, there were always several companies that gritted their teeth and accepted.
Liu Jun treated these processing opportunities as training for new personnel. Employees poached from Shi Yiji provided mentorship and guidance, while other foundational workers learned the most basic operational knowledge from this. Some knowledge, no matter how many times you taught it in class, because the procedures had many rigid requirements, each new person might not necessarily remember. But as long as they saw it on-site and compared it with what they had learned, the procedures came alive. Thus, processing clients saw their components treated like precious treasures by everyone at Tengfei. When finally received, they would unwrap the tight packaging, remove the oil paper, and inside would be a smooth surface that conformed to blueprint dimensions, with components showing no oxidation whatsoever.
These people, without question, became repeat customers.
Everything is difficult in the beginning. When looking for the first three clients, Liu Shitang needed to wear out his lips talking, but later he only needed to say: “So-and-so has already done processing with us – ask them if they’ll continue coming to us.” Moreover, when peers of some clients learned whose product standards had suddenly improved and won decisively in demanding tenders, they couldn’t help but inquire everywhere about what secret weapon that company had used. Thus, gradually, clients began seeking them out for processing on their initiative. Word of mouth depends on users spreading the word. One tells ten, ten tells a hundred – much more effective than self-promotion.
Not only that, but because of clients’ praise for Tengfei’s imported machine tools and appreciation for Tengfei’s strict processing techniques, those employees who had been encouraged by Liu Jun but remained somewhat skeptical in their hearts began to develop unconscious pride. This pride became Tengfei’s greatest centripetal force and cohesion. No amount of propaganda was as good as seeing with one’s own eyes.
This kind of processing was limited after all – the already installed machine tools could only eat one meal and go hungry for the next. But even so, after a month of settling accounts, the profits earned were enough to pay all personnel salaries and office expenses, the German equipment supplier’s engineer’s food and lodging, and the month’s purchases of various spare parts. This month, income and expenditure balanced out.
Liu Jun wasn’t particularly impressed because Tengfei currently had few workers and limited wage expenditures. And spare parts were included with the machines, so they didn’t need to purchase much themselves. This bit of income, converted to the German marks he used to earn, or compared to Tengfei’s family-fortune-destroying investment in machine tools, was quite pathetic. Moreover, it didn’t look good on the balance sheet – barely managing to climb into double digits for income was truly embarrassing. The only thing he valued was personnel training – practice training, which was an opportunity that money couldn’t buy. He could be certain that after three months, a batch of novices could be trained into semi-skilled workers who could operate semi-skillfully under the supervision of experienced workers.
But Liu Shitang was already very happy. This was only the first month – no, not even half the installation was complete – yet revenue could already break even. Very good indeed. Liu Shitang’s only concern was his son’s work intensity. Some unscrupulous merchants were truly shameless – they brought processing work but still required Liu Jun to provide the design. When did Liu Jun ordinarily have time for design? Of course, he could only compress his sleep time. Liu Shitang knew his son mostly only got five or six hours of sleep. He had the nanny cook more fish and meat for Liu Jun, but Liu Jun refused special treatment. Instead, he made the cafeteria food rich and varied, all meals free, meat and vegetables without restriction, eat your fill, with a piece of fruit after meals. Liu Jun believed that if he required employees to take on double responsibility, he naturally needed to give employees double returns. He hoped employees would maintain loyalty to Tengfei, but not the kind that was difficult to control, like Uncle Huang’s.
After Qian Hongming returned from another business trip, he arranged to meet Liu Jun as soon as possible to talk. Liu Jun didn’t know what urgent matter Qian Hongming had. He happened to need to come to the city for some purchasing, so he stopped by Qian Hongming’s company. When he arrived, Qian Hongming was still out, so he waited in Qian Hongming’s office, looking around. He discovered that Qian Hongming had one team with two company signs – two business licenses hung on the wall with completely identical company names, the only difference being the geographic area in front. One registration showed Development Zone, while the other showed Bonded Zone. He remembered Qian Hongming previously telling him about industrial and commercial registration in the Development Zone, but didn’t know when he had decided to register in the Bonded Zone too. Looking carefully, indeed, this Bonded Zone license was freshly minted, less than ten days old. Qian Hongming’s glass bookcase was densely packed with legal regulation books and various practical manuals related to companies.
When Qian Hongming hurried over, Liu Jun pointed at the two licenses and said, “A cunning rabbit has three burrows – not one license registered in the city center, yet the office is in the city center. Won’t you be investigated for the actual office address not matching?”
“Everyone tacitly understands. As long as I rent a small office in both the Bonded Zone and Development Zone, casually place a few of the cheapest desks and chairs, and occasionally have someone go clean them. If there are inspections above, industrial and commercial inspections will notify the industrial and commercial office, and tax inspections will notify the tax office. We temporarily go over with two people to put on an act. No one wants to see tax-paying enterprises like ours caught by higher authorities. Current government offices truly serve the renminbi. Liu Jun…” Qian Hongming paused and quickly closed the office door. “I have a way to help you raise startup capital – three million yuan, with relatively high interest. Calculated out, it’s more than double bank loan rates for half a year. Do you want it? Is the amount enough? If so, give me a timeline.”
Liu Jun’s eyes lit up, and he joyfully slapped the table. “Three million? Enough, enough! I’m already struggling to have some output, and the path is going smoother than I imagined…”
“Liu Jun, between us, you don’t need to be polite. Say how much you need and I’ll figure out more ways. It’s just that the interest is very high – you need to calculate costs and benefits carefully.”
Liu Jun laughed, “I don’t need to calculate. Even if the loan interest is double the bank’s rate, as long as you give me a full half year, I’ll still profit. I firmly believe in my products’ added value. Look, three million nearly drove a hero to death, haha, now I’m completely at ease. Hey, Hongming, you must tell me how to raise this loan. I need to learn to avoid being driven to death again. I’ll treat you to lobster.”
“Let’s not talk about other things first. From what I understand, if industrial gross profit margin can reach 10%, it’s already considered very good. Are you sure your newly operational company can handle high interest rates? To be honest, more than double is just my assumption. For actual operations, I need to ask you for the real amount, but I won’t ask you for handling fees or earn the middleman’s difference.”
“You?” A flash of recognition struck Liu Jun’s mind. “Letter of credit?”
“Yes, I registered the Bonded Zone company precisely for this purpose. But my current capacity is only enough to operate up to three million yuan: because it’s a time letter of credit, I still need to report to the general manager for approval – too much won’t work; because this is my first operation, I can’t learn from other experts who register companies abroad to operate themselves, but must contact familiar foreign clients, persuading them with prices to accept time letters of credit, and have goods shipped to my Bonded Zone beforehand so that when I issue the letter of credit, I can pick up and sell goods to domestic downstream clients without delaying a single day; the only fortunate thing is that I have domestic clients who need to import this chemical raw material, and their batch demand is just about three million; my domestic clients pay and pick up goods, I give you this money for designated use, and you repay me in half a year. With things urgent, I can only string several parties together to this amount – fortunately, it’s enough for you. Considering your interest expenses, the timeline you give me must be precise to facilitate my advanced operations. This is my operational plan. Do you think it’s feasible? Because contracts aren’t signed yet and specific prices and exchange rate fluctuations on both sides can’t be fixed, I can’t give you exact interest rate figures.”
Qian Hongming’s eyes sparkled with sharp light as he counted on his fingers, delivering all this information to Liu Jun in one breath, almost without pause. His voice kept getting higher, requiring Liu Jun to gesture with his hands, reminding him that walls have ears. Liu Jun was moved by his brother’s genuine intention to help him, and he was excited – incredibly excited.
“Fine. Hongming, between close brothers, we settle accounts clearly – you must collect a handling fee. But not too much, or I can’t afford it. Haha, this is so great!”
“What handling fee? Later, make a Tetsuwan Atom toy for my little Xiao Suihua – one that can spray gas and fly, exclusively handcrafted.”
Liu Jun laughed heartily. That was a robot – how could he make that? Qian Hongming was tactfully declining his offer. Liu Jun was incredibly moved, gripping Qian Hongming’s hand tightly, wanting to pick him up and swing him around.
Qian Hongming was also very excited. He felt a deep sense of satisfaction – he could now help Liu Jun, how wonderful. This time, for the first time, he would perfectly connect four parties. Each party had to be trustworthy and reliable people, so that each of their steps could be on solid ground and their first attempt could be a great success. He knew this was risky, but risk was not recklessness. He had to make full preparations, connecting the four parties seamlessly. Years of foreign trade work experience told him that what seemed like a simple import business could very likely encounter unforeseen accidents because he had never operated it before. He had to walk the entire path from beginning to end. In the future… Qian Hongming didn’t dare think about the future. Right now, he was celebrating with Liu Jun.
What an incredibly joyful and exciting thing this was! Three million, a full three million yuan, under Qian Hongming’s discretionary control for half a year. Three million!
Although Qian Hongming celebrated with Liu Jun, he really couldn’t help thinking about the exclusive control over those three million. Three million – how much would that be in cash? Would one sack be enough to hold it? Qian Hongming’s vision was filled with hundred-yuan bills bundled in stacks of ten thousand.