Chapter 1208 – Big Customer
Zheng Zhigang. When Feng Yu was in Hong Kong, he had met him twice. But at that time, he was still a kid!
Even now, Zheng Zhigang is still a student. A Harvard student, and had returned to Hong Kong for Lunar New Year.
Many might not know about the Zheng Family. Still, most people would have heard of their family’s jewelry business brand, Chow Tai f.o.o.k. Many years ago, the Chow family only had a daughter, and she got married to the Zheng family. Thus, this business falls into the hands of the Zheng family.
But the Zheng family’s head is getting old and had pa.s.sed his authority to his eldest son over the past few years. If it wasn’t for the bad economy and worried about his retirement news will affect the family’s business, he would have retired a long time ago. After all, his eldest son is already fifty-five now.
If the Zheng family’s head is the emperor, the crown prince would have revolted. No crown princes will want to wait for decades for the throne. Of course, the Queen of England is different.
Zheng Zhigang is very lucky to have no brothers and only has two sisters. That means the family business will fall into his hands in the future. He can represent his family to make some decisions despite not owning any of the company’s shares.
“Brother Guangzheng, Brother Feng.” Zheng Zhigang is still in his early twenties, but he is not nervous at all. Most second generations will not be so relaxed in front of Feng Yu, and this left a good impression on Feng Yu.
“Gang Zai. Sit.” Fu Guangzheng said.
The venue of this meeting is a traditional Hong Kong breakfast teahouse. They can chat over food in a private room. There are bodyguards outside, and they are not worried about others eavesdropping.
Zheng Zhigang had ordered some of his favorite dishes and was served within five minutes.
Hong Kong breakfast is special, and Feng Yu likes it. Zheng Zhigang felt more at ease when he saw Feng Yu and Fu Guangzheng did not care much about dining etiquette.
After they are done eating, Zheng Zhigang poured tea for Feng Yu and Fu Guangzheng, and they lean back on the chair to enjoy it.
“Gang Zai, I had told Brother Feng about you. You two can go ahead to discuss the details. I had left my cigars in my car. I will go and get it.”
Fu Guangzheng made up an excuse to leave the room and left Feng Yu and Zheng Zhigang alone.
“Brother Feng, my family’s Chow Tai f.o.o.k is the top jewelry chain stores in Asia. We are also one of the top internationally. But we had recently met with some issues with our suppliers, and I heard from Brother Guangzheng that you own gold mines. We wish to work with you.” Zheng Zhigang sat up straight.
“I know about Chow Tai f.o.o.k. You all had invented 99.99% gold product, and it is Asia’s top in diamonds, jade, pearl, precious stones, etc. I will also be happy if we can cooperate. After all, we are Chinese.”
Zheng Zhigang is overjoyed when he heard what Feng Yu said. But he becomes nervous again.
“But… the international gold prices kept rising recently. I estimate the gold price will keep rising this year. We can cooperate, but our gold supply will not be high. Also, I want to settle the payments every month based on international gold prices. That means the prices will keep rising every month. Can you all accept this?”
Gold prices will rise this year, and Feng Yu will not sign a fixed price long-term contract with Chow Tai f.o.o.k, which will let them get a good bargain.
Although Feng Yu will still profit from this deal, what will Kirilenko think? After all, Feng Yu likes to take care of his fellow countrymen, which is a Chinese company.
Even if Kirilenko did not voice his displeasure out, he would be feeling unhappy inside. Feng Yu does not want to spoil his friendship with Kirilenko because of Chow Tai f.o.o.k.
“Brother Feng, can I ask how much gold your mine can produce each month?” Zheng Zhigang asked. If he can secure a steady supply of gold, he can accept this condition.
Anyway, Chow Tai f.o.o.k’s gold accessories are also priced according to international gold prices. They will not absorb the differences because of the rising gold prices.
“How much do you all need?” Feng Yu asked Zheng Zhigang back.
Zheng Zhigang’s eyes brighten up. From Feng Yu’s tone, it seems that he can meet his demand.
“Can we get 300,000 Ounces of 99% and above gold each month?” Zheng Zhigang asked.
This Zheng family wants so much gold? 300,000 Ounce a month is Feng Yu’s gold mine’s maximum production. That means if they cooperate, the Zheng family will be his only customer.
This is also because Chow Tai f.o.o.k is also a Tai Hua Supermarket group’s business partner. All of Tai Hua Supermarket’s Hypermart will have a Chow Tak f.o.o.k branch. As Tai Hua Supermarket set up more branches, Chow Tai f.o.o.k opens up more than 100 new branches.
Currently, Chow Tai f.o.o.k is not listed and is not affected by the two financial crises. Their family’s net a.s.sets did suffer minimum losses, unlike Superman Li. His net worth had dropped because his shares’ prices had plunged.
Not only Chow Tai f.o.o.k is powerful. They had cooperated with other jewelry companies to control the Asia market and uses it to enter the western countries.
That’s why Chow Tai f.o.o.k requires a high volume of gold. They used their status to get low priced gold and diamonds from the African companies and supply them to other jewelry companies. That’s why their cooperation with African companies have cracks.
The contract terms differ for different partners.
“300,000 Ounce a month might be a problem. But 200,000 Ounces should not be a problem. When our production increases in the future, we can supply more.” Feng Yu thought for a while and said.
At least 200,000 Ounces a month is equivalent to 2.4 million ounces of gold a year. This amount is sufficient to meet Chow Tai f.o.o.k’s demand, as they can still buy back some gold from the market, and they still have other channels.
“No problem. Can we use the average gold price for the month when we settle the payment?”
Feng Yu nodded. “No problem.” If they pick a day in the month to settle the payment, both sides have a chance to be at a disadvantage.
The average price can prevent any side from suffering any losses, and Feng Yu has no problem with this arrangement.
“Can we sign a ten-year contract?” The Zheng Family needs a stable supply of gold, and the longer the contract, the more beneficial it is to them.
Feng Yu nodded. “This is not a problem, but I want to add an additional clause in the contract. Suppose Chow Tai f.o.o.k is going to be listed, I hope our Polar Bear Minerals Enterprise will have priority to invest.”
Feng Yu also thinks Chow Tai f.o.o.k has potential? Feng Yu is the G.o.d of investment, and if he is going to invest in Chow Tai f.o.o.k, they will be overjoyed. Furthermore, there’s no reason to reject this clause.”
“This clause can be included in the contract!”
Chow Tai f.o.o.k