OBS Chapter 654 The right choice
Chapter 654 The right choice
“Okay, then you go and handle the formalities first,” Li Xiangyang said. “Wang Ergou, you’re in charge of equipment procurement. Mr. Lin, could you please communicate with Hualian to see if they can accept our phased supply plan?”
“No problem.” Lin Yajing stood up to leave. “Mr. Li, I think your caution is correct. In business, steady progress is always better than reckless advances.”
After seeing Lin Yajing off, Li Xiangyang, Wang Ergou, and Tian Guoqiang continued to discuss the specific implementation plan.
“Xiangyang,” Wang Ergou suddenly said, “I have an idea.”
“What idea?”
“Since we’re going to build a small base, could we consider introducing some new technologies?” Wang Ergou said, “like automated packaging lines or quality inspection equipment.”
Li Xiangyang's eyes lit up: "That's a good idea. Our current factory has good output, but its automation level isn't high enough."
“Yes,” Tian Guoqiang exclaimed excitedly, “If the new base can achieve a high degree of automation, it will not only improve efficiency but also reduce labor costs.”
“Then let’s go to the provincial capital tomorrow to check out the equipment,” Li Xiangyang decided. “If we’re going to invest, we should invest in the most advanced technology.”
The next morning, Li Xiangyang, Wang Ergou, and Tian Guoqiang drove to the provincial capital.
They first went to the largest machinery and equipment market in the provincial capital.
"Hello, do you have automated equipment for agricultural product processing?" Li Xiangyang asked a salesperson from an equipment company.
"Yes, please follow me." The salesperson warmly guided them on their tour.
In the exhibition hall, Li Xiangyang saw various advanced equipment: fully automatic packaging machines, intelligent sorting equipment, quality testing instruments...
"How much does this equipment cost?" Tian Guoqiang asked, pointing to a complete production line.
"This is our company's latest product, and the complete set will cost approximately 1.8 million," the salesperson explained. "However, it's highly efficient, capable of processing ten tons of raw materials per day."
One million eight hundred thousand, that price is indeed not cheap.
"Can you make it cheaper?" Wang Ergou tried to bargain.
"There's not much room for negotiation on price," the salesperson thought for a moment, "but if you're sure you want to buy, we can provide free technical training and one year of maintenance and repair service."
Li Xiangyang carefully inspected each component of the equipment and found that the quality was indeed good.
“Well then,” he said to the salesperson, “we’ll go back and discuss it, and get back to you in a few days.”
"Okay, here's my business card. Feel free to contact me anytime if you have any questions."
After leaving the equipment market, the three visited several research institutes to learn about the latest food processing technologies.
At the Provincial Academy of Agricultural Sciences, they met an expert who specializes in agricultural product preservation technology.
"Mr. Li, hello." The expert greeted them warmly. "I heard you'd like to learn about the latest food preservation technology?"
“Yes, we want to make a breakthrough in product quality,” Li Xiangyang said.
"Then you've come to the right person," the expert said with a smile. "We've recently developed a new vacuum packaging technology that can double the shelf life of agricultural products."
"Really?" Tian Guoqiang asked excitedly. "Could you tell me more about it?"
“Of course.” The expert showed some samples. “As you can see, products processed with our technology not only have a longer shelf life, but also retain better taste and nutritional value.”
Li Xiangyang carefully tasted the sample and indeed felt that it tasted better than ordinary packaged products.
Is this technology expensive?
"The equipment investment will cost approximately 500,000 yuan, but in the long run, it can greatly enhance the competitiveness of the products," the expert said.
With the addition of 500,000 and the previous equipment cost of 1.8 million, the total investment is now close to 2.5 million.
But Li Xiangyang felt that the money was well spent.
After spending two days in the provincial capital, Li Xiangyang and his team basically saw all the advanced equipment.
On the way back to the county, Tian Guoqiang couldn't help but say, "Xiangyang, after seeing so much equipment, I think our vision was still too conservative."
"How to say?"
“If we really want to build a competitive production base, three million is simply not enough,” Tian Guoqiang said. “We need at least five million.”
Li Xiangyang was silent for a moment, then said, "Five million."
"Really?" Wang Ergou was somewhat surprised. "Didn't you always say you wanted to play it safe?"
"Being cautious doesn't mean being conservative," Li Xiangyang said. "If you're going to do something, you should do it to the best of your ability."
Upon returning to the factory, Li Xiangyang immediately convened a meeting with the core management team.
"Starting today, we will be launching the new base construction project," he announced in the conference room. "We will invest five million to build a highly automated agricultural product processing base."
This news shocked everyone present.
Finance Manager Xiao Chen asked, "Factory Manager, we only have a little over one million yuan in working capital right now. Where will the rest of the money come from?"
"A bank loan," Li Xiangyang said. "I'll go sign the contract with the Science and Technology Development Bank tomorrow."
"Then what are our risks..."
“Every investment carries risk,” Li Xiangyang interrupted Xiao Chen, “but the risk of not investing is even greater. If we don’t improve our competitiveness, we will be overtaken by others one day.”
After the meeting, Li Xiangyang sat alone in his office, thinking about his next steps.
An investment of five million is indeed a considerable sum. However, he believes that with his market judgment and his team's execution capabilities, this investment will definitely be successful.
The next morning, Li Xiangyang received a call from Chen Ming.
"Mr. Li, what's your decision?" Chen Ming's voice carried a hint of urgency.
"Manager Chen, we've decided to take out a loan of five million," Li Xiangyang said directly.
There was a few seconds of silence on the other end of the phone: "Five million? Not fifteen million?"
"We'll lend five million for now, and if needed later, we'll apply for additional loans," Li Xiangyang explained.
Chen Ming was clearly a little disappointed, but he quickly composed himself: "Okay, I'll go over this afternoon and we'll sign the contract."
After hanging up the phone, Li Xiangyang walked to the window and looked at the workers who had already started working in the factory area. A loan of five million was indeed a considerable burden for the factory at its current level, but he believed it was the right choice.
In the afternoon, Chen Ming arrived as promised, bringing a thick stack of loan contracts.
"Mr. Li, this is the loan contract for five million, with an annual interest rate of 8%, a term of ten years, and only interest payments for the first three years," Chen Ming explained the terms smoothly. "Please take a look and see if you have any questions."
Li Xiangyang carefully reviewed the contract, scrutinizing every clause. Having been in business for so many years, he knew the importance of contract terms.