Private lending may not sound like a legitimate business, but the information channels these people have are truly impressive.
Just three days after the equipnt from those two factories was sold, President Li helped Liu nglong find another opportunity. A small private factory, using third-hand equipnt, was planning to eliminate it.
Third-hand equipnt... there really is such a concept. A state-owned factory once used it, then passed it on to a private company, which over ten years used it to create considerable wealth and then handed it down to the current owner.
Surprisingly, the equipnt can still be used normally, proving that production equipnt, like cars, is better maintained when privately owned than when public.
The owner originally had no plan to sell because the equipnt was still usable. However, due to a labor shortage and tight manpower in recent years, he had to consider replacing a few pieces with more automated equipnt, which ant selling the old equipnt to raise funds.
However, with President Li’s involvent, the other party couldn’t sell it at a high price, totaling 1.3 million.
Liu nglong felt that refurbishing was a hassle, so President Li volunteered... let help you connect with soone.
The refurbishnt cost is 200,000, and interest during refurbishnt is not calculated within this—essentially, President Li fronts the money to buy the equipnt.
Liu nglong reported this to Sister Hong, and Sister Hong said you make the call yourself. If you don’t understand, I can introduce friends from the complete set bureau to you—they better understand equipnt prices.
In short, Liu nglong’s business was rapidly expanding. Since the first deal was made, he has bought over 80 million in equipnt in the following month, most of them second-hand.
Then a problem arose; the equipnt operation was quite troubleso. Sister Hong suggested, why don’t you rent a larger warehouse in Zhengyang? Equipnt worth over a hundred thousand still requires us to make a special trip; it’s not appropriate.
Now the laborious task of fetching equipnt falls to her—now in the Qi Refinent Realm, able to use flying artifacts and storage bags.
As for directly sending these to Luohua? That’s not feasible.
Liu nglong was not very familiar with Zhengyang and didn’t know where to find a warehouse. President Li stated...
No need for him to say, Chief Lin directly called and said we have an abandoned warehouse in South Mountain, available for rent at a low price. The condition is... we have 200 million in funds here, with a monthly interest of 1.5%.
3% vs. 1.5%... twice the difference, leaving President Li no room to negotiate.
Furthermore, Beauty Lin expressed that she also had information on obsolete and second-hand equipnt, able to diate in between.
President Li couldn’t help but want to talk so small gossip, trying to gain a larger share.
However, Chief Lin was even better, directly throwing out two price lists—Liu nglong had two purchases where he obviously overspent.
Though not tricked, in the market, this price wouldn’t fetch second-hand goods. Liu nglong paid upfront for purchases, enjoying considerable discounts—those who buy second-hand goods usually don’t have money, mostly paying off debts slowly.
But aside from this, there is an insider price unknown even to the complete set bureau’s experts.
Yet Beauty Lin pointed out that in these two purchases, Liu nglong overspent by over three million.
President Li was dumbfounded. He didn’t actually understand the pricing, rely inquired in the market, intimidate a bit, or bribed relevant people to get goods at low prices.
In the first of these two deals, he paid money, only to be quoted an outsider price; he felt a bit ashad amidst his anger from being taken advantage of.
But Liu nglong realized—competition between two companies indeed is better than relying on just one.
Now he has earned nearly ten million, but earnings can’t keep up with the pace of expansion, and for a considerable period, he still has to take loans. However, he decided not to stop using President Li just because of high-interest rates.
Because Liu nglong himself was kicked out by a listed company and knows how helpless a small person is when facing trends, he didn’t want to be influenced by Chief Lin’s intentions. Paying a little extra interest to keep President Li on board was the main task.
In short, in these two months, Liu nglong took only 35 days to beco a millionaire, and in the following month, he acquired equipnt worth as much as 3.7 billion.
In fact, if he wished, he could buy over 10 billion in equipnt, but so pieces were not worth refurbishing—better to buy new ones. Moreover, so equipnt was too advanced.
Eliminated equipnt too advanced? That’s not contradictory at all, and after Sister Hong refused twice, Liu nglong quickly discovered the cause and effect: equipnt from the early founding of the country suffices, even... equipnt from the Self-Strengthening Movent period is usable.
But equipnt from the 1970s and 1980s... that’s more dangerous.
He actually worked on Feng Jun’s project before, and connecting the two, he understood exactly what Luohua needed.
Also, there is a reference point, which is the equipnt ordered by Sister Hong. He was a wild path, seeking second-hand equipnt all around, while Sister Hong as a regular army, had orderly orders for outdated equipnt.
In two months, he has spent over four billion, gathered a few people besides President Li and Beauty Lin to help run the business, including two highly-paid experts.
On Sister Hong’s side, she has also spent over three billion, and together they’ve spent over eight billion.
Even with President Li’s boldness, he can’t help but secretly ask Liu nglong, "Tell , General Liu, how long do you think this venture can last? No matter how rich Luohua is, they can’t keep spending like this?"
"It’s an international aid project of Luohua’s," Liu nglong had always used this excuse to brush it off, regardless of others’ belief, "we need not worry about funding."
"I know it’s an aid project," President Li responded with a smile, and by this point in the business, if he hasn’t figured out Luohua’s intentions, he might have backed out in shock —seen rag collectors, but not like this.
What he’s concerned about is, "Aid projects also have limits, right? Thirty billion, fifty billion... or a hundred billion? It can’t go on endlessly, can it?"
Liu nglong was first stunned by his words, then fell silent for a while before speaking, "I’ll give Sister Hong a call."
At the beginning, he asked Feng Jun this question. Feng Jun said just keep collecting, so he never asked again. At this point, he actually felt a bit uneasy internally, but as he knew more about Feng Jun, he dared not ask again.
Seeing his unsettled deanor, President Li roughly guessed what was happening, yet didn’t forget to remind him, "Ask in detail, the more precise the figure, the better."
Sister Hong answered the call promptly, stating straightforwardly, "Didn’t Elder Feng already tell you? Just keep collecting, as much as you can take—don’t worry about money."
"But surely there’s a limit, right?" Liu nglong chuckled helplessly, "Sister Hong, could you give us at least an approximate amount, so we can have so idea?"
"Why worry about it? You’ll be notified when we stop collecting," Sister Hong thought he was overly concerned, but knowing Feng Jun cherished this relationship, she casually provided a number, "Under 30 billion, you don’t have to worry."
After hanging up, Liu nglong looked a bit dazed, "Thirty... billion, beforehand?"
He instantly calculated his potential earnings, suggesting that he could earn roughly three billion by acquiring equipnt worth 24 billion and selling it for 29 billion, factoring in various expenses.
"Thirty billion?" President Li murmured softly, rubbing his chin, "That’s not... much actually?"
Truth be told, without delving deep into Huaxia, it’s hard to fathom how vast a potential giant like Guojia holds; they’ve only been in the recycling business for two months, but their reputation in Funiu Province’s industrial manufacturing industry has already spread.
Many unheard-of companies proactively approached them to recomnd second-hand equipnt, allowing them to roughly evaluate the second-hand equipnt market in Funiu Province.
The outdated equipnt across all of Funiu, rely amounts to a hundred billion, most of which can still operate normally. However, a substantial portion is hit or miss, with intentional offers for sale, not rely a hundred billion worth, but certainly not less than 80 billion.
And this is just one province of Funiu; how many provinces are there in Huaxia? Three hundred billion... can’t even consu the backward production capacity of Funiu.
Of course, replacing all backward production capacities in Funiu isn’t possible either. People used outdated capacity to run operations well, with factories close to ho, what reason to sell?
What Feng Jun is unsure of is exactly how much of this backward capacity should be retained, though maintaining so production capacity is necessary, as it can rapidly ramp up when ergencies arise.
Why was Mai Nation so formidable during World War II? Because they unleashed their production capacity, launching warships like dumplings, planes taking off like locusts. Before the war, Yamamoto weighed Mai Nation’s smokestacks, knowing Ni Hong was no match.
And at that ti, Mai Nation’s production capacity had been purged several tis by the Great Depression, leading to many business shutdowns.
Of course, business closures also have their rits, facilitating the rise of large groups and trusts, where efficient production further aids in rapid capacity surges.
Off on a tangent, President Li felt that 30 billion sounded like a lot but wasn’t that much either. With his and Liu nglong’s capabilities, within half a year, monthly equipnt procurent values would surely reach 1 billion.
So, how long can 30 billion support? Rember, there’s also Chief Lin’s group, watching closely.
On calculation, this project... can only last two years or so.
However, these two months, President Li has already enjoyed the benefits. As Luohua settles paynts promptly, he only utilized equity less than 2 billion, generating nearly six million a month, with additional miscellaneous inco, a total of eight to nine million.
His financing cost is only about 1.5% to 2% monthly interest, equivalent to about five million in profit per month.
Of course, that’s just him; Liu nglong’s profit is even higher!
(Third Chapter update, summon monthly tickets.)
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