My ex-girlfriend thought I was poor, so I made 100 million by betting on stones.
Chapter 1052 I suddenly felt like I was being kept
After Yang Feng picked it up and took a look, he found that it was a current industry analysis.
"It seems that Yu Jiantao should have just received the news."
When Yang Feng saw this situation, he understood what was going on.
Lin Xue looked at Yang Feng and asked, "Did Liu Yueyun tell you?"
"Ah? You knew about this in advance?"
Yang Feng was surprised.
Lin Xue nodded and said, "It was just a guess before, but I just received a call and they confirmed that they have the idea of acquiring it, and they will come to Donghe Town this afternoon."
"So fast."
"Obviously it was intentional."
Lin Xue said with a serious expression, "They kept it secret in the early stages and then caught us off guard. In fact, they didn't give us much time to think."
"Then what do you think?"
"It's hard to say about this matter."
Lin Xue shook her head and said, "You should know that the Wu family in Haicheng also has a very deep foundation, which is not weaker than our family's business territory at all. And the most important thing is that a large number of their investment projects are in this area."
"for example?"
"For example, some automobile manufacturing, as well as R&D and manufacturing in the field of new energy."
Lin Xue continued, "Although our family is rich, business competition is never just about being rich."
Lin Xue's tone actually already had a business bent.
Yang Feng seemed to understand what she meant and said, "You mean, should we really consider selling this company?"
“In business, there are many examples of this.”
Lin Xue knew that Yang Feng might not be familiar with it, so she explained, "In an industry, first-mover companies usually use their background to build very high technology patent barriers, as well as cost barriers. Especially in the field you want to invest in, it is a huge heavy asset."
"I see."
"In fact, if I tell you the simplest thing, you will understand. Previously, our company purchased a large amount of batteries and related equipment from another company in Jiangcheng. Their prices are actually more than 50% cheaper than the company you are investing in now."
Lin Xue said, "But because of the pursuit of excellence in technology and the need to take care of our own industry, I chose to invest in the company's products. This can be understood as a business behavior, but with this huge cost difference, most companies will not rashly choose to change suppliers."
Yang Feng knew what she meant.
Even the best products need a very good price to survive.
Although the battery companies invested by Yang Feng have some structural advantages in the short term, which makes them very prosperous, in fact their high costs will discourage many companies that want to choose to purchase from them.
Yang Feng nodded and said, "This should be solved through subsequent cost control, especially now that I have planned to build a factory near Donghe Town. As long as the factory here is built, the cost will definitely drop significantly."
"Well, but this is just the first step. Even if the cost is reduced, it will be difficult to compete with those companies with deep foundations."
Lin Xue shook her head and said, "They can compete with us by slashing the prices of their existing mature products, even to the point of losing money. These companies have strong cash flow, so what should we do? When we are already at a cost disadvantage, we will definitely lose if we engage in a price war."
"Um……"
"Although my grandfather will definitely make a move, it will only turn the company's equity into a mess in the end, and more importantly, our costs will still be much higher."
Lin Xue is obviously much more mature in business than Yang Feng.
Yang Feng gradually understood what was going on and said, "The document Yu Jiantao sent me just now seems to involve cost analysis."
"That's right. Even if we can reduce some costs through factory transfer and accumulation in the future, our production cost is still 30% higher than similar products."
Lin Xue said.
Yang Feng fell into deep thought and said, "Besides this, there should be other problems, right?"
"In terms of R&D funding and related investment, we have no way to compete with these companies."
Lin Xue nodded and continued to explain: "Although we have a lot of funds at present, there is no upper limit. Once competition arises, it will definitely lead to a large number of poaching. Even a non-compete agreement cannot completely limit it."
"Well...especially some of them don't have a non-compete agreement yet."
“So that’s the problem.”
Lin Xue said seriously, "Think about it, if they really use higher salaries to poach these technical backbones on a large scale, what will we do?"
Yang Feng was a little silent.
He knew that if they used a lot of high salaries on an equal basis, they would not be a match for such old-established companies.
And if I have to say it, such companies have a higher platform, and for these employees, it is actually understandable to choose a higher platform in the industry.
"Besides that, it's the progress of research and development. Later, when we become a target, we will need to compete with others in technology."
Lin Xue said, shaking her head, "To do all this well, it takes not only money, but also a lot of time. Even so, the company may still die in the competition."
She was reminding Yang Feng of the risks of all this.
Yang Feng naturally understood the meaning of this.
His expression became somewhat silent.
What Lin Xue talked about were all practical issues.
As latecomers, they can use scale advantages, technological barriers, etc., or even directly poach employees and hollow out the entire enterprise against large-scale enterprises in the early stages.
As latecomers, it is very difficult for them to compete with them.
After all, Yang Feng is not a man with particularly strong capital nowadays.
Yang Feng hesitated for a moment, then finally looked at Lin Xue and asked, "When will the Wu family's people arrive?"
"It's said to be after two o'clock in the afternoon."
"Let's go meet them first then."
Yang Feng did not make a decision immediately.
He could actually sense that if there was competition for this kind of thing, it would be much more troublesome than he had imagined.
Lin Xue was helpless and said, "Forget it, you can think about it yourself. Just tell me when you figure it out."
Having said that, Lin Xue prepared to turn around and leave.
Yang Feng suddenly stopped her at this moment and said, "Wait, what do you think will happen if I don't sell it?"
"It's not a big deal. At most, I can invest more and you can buy some technology stocks. Even if we really have to compete with each other for funds, it doesn't matter."
Lin Xue answered calmly.
She knew that her words would give Yang Feng some reassurance.
Although commercially, she felt that this was not a profitable business.
But in actual operation, Lin Xue still respects Yang Feng's opinion.
Yang Feng suddenly laughed and said, "Why do I suddenly feel like I'm being kept by someone?"
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