Feng Yu had signed the contracts with all the distributors. Every year, there would be at least 84,000 units sold. It was still short of the target set by Li Mingde.
But Feng Yu was not worried. This was the minimum number of bikes sold. Motorcycles at places like Beijing, Shanghai, and Sichuan were selling well. These regions should be selling many more bikes than the minimum number. There were still Southern Guangzhou, Southeast regions, Ludong, Jiangsu, and Zhejiang areas. These places should be selling well too.
Coupled with the Northeast provinces, where Tai Hua Trading was handling directly, the total units sold should be 50% more than the minimum number. Even if there was still a shortfall at the end, Feng Yu still had his last resort. He would never let Li Mingde the chance to look down on him. As for the advertising fees, there was no way Feng Yu would pay back to the Machinery Company. Money that enters his pocket, he would never take them out!
Li Mingde knew that Tai Hua Trading had signed the distribution contracts with the distributors, but he was not sure of the details of the agreement. Feng Yu would never let Li Mingde know about it. If Li Mingde knows about how much profits Tai Hua trading will be getting, he would definitely try all means to get back the distribution rights even if he suffered some losses.
Feng Yu would never let Li Mingde get what he wants. He even deliberately lower Li Mingde’s guard by asking if they can cancel the 2 contracts. Feng Yu also said that it would be lucky if they were able to sell 100,000 units in that year.
Li Mingde did not accept Feng Yu request. This was the chance for him to win Feng Yu and involves a few millions of advertising fees.
If he won, he would not only get the chance to “educate” Feng Yu on how to do things, and it would also establish his authority at the Machinery Company further. He would be able to get the final say at the Motorcycle Factory and still get back a few millions of advertising fees. This was a chance for him to shine in front of the leaders from the City Government.
Feng Yu had told him that if they canceled their bet, he would not go against him in future. But Li Mingde ignored Feng Yu. He knew that if he won, how could Feng Yu go against him in future?
Li Mingde was feeling pleased, and during a meeting at the Machinery Company, he criticized the Motorcycle Factory and Feng Yu, the motorcycle factory in-charge, a few times. He reprimanded Feng Yu for not being at the factory, the motorcycle sales, and the manufacturing costs, etc.
When Li Mingde scolded Feng Yu, he sounded as if Feng Yu was not doing his work at the Motorcycle Factory. He was waiting for the time where he could get rid of Feng Yu.
If Hou Haitao had not expressed that he was willing to give up and the Hong Kong businessman supported Feng Yu, Feng Yu would never get the chance to be the motorcycle factory’s director. Even when Feng Yu had support, Li Mingde did not let Feng Yu be the factory’s director. He only allowed Feng Yu to be an acting director. If Feng Yu could not produce results in a year, then he would be replaced!
Even if Feng Yu produced outstanding results and became the Factory Director, Li Mingde was not scare. The Motorcycle Factory was still a subsidiary of the Machinery Company and was still under his management. He was still the General Manager of the Machinery Company. If Feng Yu is an emperor, he would be the emperor’s father!
The thing that Feng Yu upsets him the most was the veto vote. The higher management staffs at the Motorcycle Factory were appointed by Li Mingde, and during decision making, Feng Yu’s veto vote was too irritating and had disrupted his plans a few times.
Li Mingde believed that Feng Yu would not be in this seat for long. When the sales were not still not picking up during the halfway mark, he would look for Hou Haitao to discuss replacing Feng Yu! He could even accept Hou Haitao taking over this position!
No matter what, the Aviation Factory was still bigger than the Machinery Company, and Hou Haitao’s rank was higher than him. He was also more experienced and still had connections with the military. There was no way Li Mingde could get angry with him for giving up the vote to elect the factory’s director.
If it weren’t for the City Government, the Aviation Factory would also not get 14% shares of the Machinery Company. The technologies owned by the Aviation Factory were no related to motorcycles. Fuel saving engine, anti-wear tires, and high-performance batteries technologies? These were all not needed!
Furthermore, the Aviation Factory’s technologies were only suitable for cars and how can these work on motorcycles? If it weren’t for the Aviation Factory using a significant amount of cash, the leaders in the City Government would never agree to let them buy a stake in the company.
Li Mingde had thought that Hou Haitao was interested in getting a share of the profits. He did not know that the Aviation Factory was persuaded by Feng Yu to buy a stake in the Machinery Company.
Feng Yu had promised Hou Haitao that if the Machinery Company’s profits were not to their expectations or when the Aviation Factory needed funds, he would buy over their Machinery Company’s shares.
There was another reason why Hou Haitao agreed to this. Feng Yu had told him some good news. The ultra-high power electrical furnace which the Aviation Factory wanted was found. The other party decided to sell it, and they were in the midst of price negotiations. The Aviation Factory should be receiving the furnace in March the earliest or latest in June.
When would the Aviation Factory need money? Of course, it is when they had to make payments for the ultra-high power electrical furnace. This electrical furnace was not some cheap furnace. The market rate for a used 1970s model was above 10 million Rubles. Furthermore, Feng Yu had helped them find a 1985 model. It was more advanced, and the market rate was above 40 million Rubles. Even the 2nd hand furnace cost more than 20 million Rubles.
Currently, Europe and the US had restricted their technology to China, and even you had the money, you might not get what you wanted. That was the reason why the Chinese Government could not get this furnace for the Aviation Factory.
When the furnace arrived at Bing City, Hou Haitao could use the Machinery Factory shares to pay for part of it and the remainder from his factory. It should be enough.
Feng Yu had tried to persuade Hou Haitao to use his shares in the humidifier as part of the payment, but Hou Haitao rejected this suggestion. The humidifiers were giving him more profits than the Machinery Company and Feng Yu’s valuation of the humidifiers’ shares were too low.
It’s only some cash. Our Aviation Factory can surely raise it! Even if we can’t raise the required funds, we could also apply from the higher-ups. This is the ultra-high power electrical furnace. The leaders at the top should know the importance of this furnace and would surely provide the funds.
However, even though Hou Haitao thinks this way, he was still worried that his higher-ups might take over the ultra-high power electrical furnace and send it to other factories. That’s why he tried to use his own means to pay for the furnace.
The value of his Machinery Company shares should rise when the Soviet Union side ships the furnace. This was better than leaving the money in his factory or the bank. He also does not need to worry about the leaders transferring the factory’s funds away.
Hou Haitao was now trying to protect all available funds he had. He must get his hands on that furnace. When Feng Yu suggested this method to him, he immediately agreed. He used all his connections in Bing City and successfully became a shareholder in the Machinery Company.
These were all part of Feng Yu’s secret plot. The City Government got a sum of money; Li Mingde was satisfied because the Motorcycle Factory belongs to the Machinery Company and Feng Yu did not go to the Aviation Factory; Hou Haitao could put aside his factory funds safely and declared lower earnings to the higher-ups. When the furnace arrives, he will use these shares as part of the payment.
The one who was the most satisfied was Feng Yu. When the furnace arrives in Bing City, he would be the major shareholder of the Machinery Company!