Only after being reborn did I realize how fascinating the world of the rich is.
Chapter 266 What if the person surnamed Li is playing hard to get with you?
After the auction ended, everyone went home.
On the way, Xu Lei couldn't help but ask, "President Li, are we just going to let this go like this? I know that 80 million is a bit too high, but I'm really not willing to see our factory, which we've grown up in, fall into someone else's hands like this!"
Li Xiaofeng smiled and said in a calm tone, "So what if you're unwilling? This world won't let everyone have everything they want!"
However, there is still room for maneuver in this matter. I think that Qin Kai is probably not the kind of guy who would settle down and do manufacturing. He probably has his eye on that piece of land.
But he didn't have any concrete information, so he probably didn't know when that land would be designated for commercial use. He probably thought I had inside information because I wanted to buy the electric vehicle factory!
"Mr. Li, do you have any information on this?"
"Of course I don't. In fact, they have far better information than I do in this regard. I just want to buy this factory!"
In fact, Li Xiaofeng was also very uneasy. He temporarily gave up investing in Hongxing Electric Vehicle Factory because he didn't want to waste too much money.
He originally intended to intimidate his competitors by using his power to make them back down, but unexpectedly, he aroused Qin Kai's covetousness and gradually drove the price up.
An electric vehicle factory with almost zero net assets was sold for a high price of 80 million. If it weren't for the definite news of land appreciation and those additional conditions, this would have been nothing short of selfless dedication.
Merchants are all profit-driven.
He was gambling that Qin Kai had no intention of investing in Hongxing Electric Vehicle Factory, that Qin Kai had no inside information, and that Qin Kai would renege on the agreement later.
In fact, Li Xiaofeng was quite confident about these speculations, but he couldn't be 100% certain.
In this era, although the manufacturing industry is also moving forward step by step with the benefits of the times, the speed at which it makes money is definitely not comparable to that of highly profitable industries such as real estate.
Young people like Qin Kai may pursue careers in the film and entertainment industry, but they are unlikely to follow the path of the previous generation and dedicate themselves to the arduous manufacturing sector.
In fact, it's not just Qin Kai; young people in the future will increasingly embrace the idea that: I don't want to suffer, I want to enjoy life; I don't want to build a career, I want to make quick money, preferably money while lying down.
Of course, Li Xiaofeng also wanted to make money while lying down, but he at least understood one thing: if he wanted to make money while lying down, he had to plan his business strategy in advance.
His reason for wanting to invest in manufacturing was, on the one hand, to ensure a stable cash flow for his business empire and reduce investment risks.
Stable cash flow is very important for businesses. For example, Li Xiaofeng's real estate speculation requires him to pay a large amount of monthly mortgage payments every year.
Therefore, Li Xiaofeng needs to fill the gap in his monthly mortgage payments by taking out bank loans to pay off other loans, selling some of his real estate, or setting aside some funds.
As real estate regulation intensifies, these measures are not sustainable solutions. As speculation in housing grows, obtaining loans will become increasingly difficult.
As for selling some real estate, if cash flow dries up and there are policy crackdowns and falling house prices, not only will the houses be difficult to sell, but even if they are sold, it will result in a huge loss.
Setting aside a portion of funds not only reduces the overall capital utilization rate, but also only allows for short-term speculation in real estate, making it impossible to hold onto the property.
With increasing regulation of the real estate market, only long-term property ownership will allow investors to earn more money in the future.
On the other hand, Li Xiaofeng's investment in manufacturing is also a preparation for the future.
The real estate industry is currently very profitable and is on the rise, but what about ten years from now? When the real estate industry enters a downturn, what will become of his business empire? Will he just sit around and do nothing?
Another point is that manufacturing is a capital-intensive industry. When the real estate industry can no longer speculate on houses, it can make full use of the funds it has earned from the real estate industry.
On the way back, Qin Kai's face was very gloomy, especially after he heard Li Xiaofeng's words. His face remained ashen, as if shrouded in dark clouds.
Wei Jianjun, who was standing next to him, kept comforting him: "Brother Kai, this guy surnamed Li said those things to you today on purpose to provoke you. Don't fall for it!"
"I know he came here on purpose to provoke me, but what he said was also true. If the land where this electric vehicle factory is located is designated for commercial use within the next year or two, this electric vehicle factory will definitely be profitable."
But what if it takes two or three years, or even three or four years? How much money would I need to invest to save this company? Li Xiaofeng said he would need to invest three or four hundred million yuan. Although it may not actually be that much, it's not far off.
If I invest these three or four hundred million yuan in the real estate market, how much money can I make? And how much money can I make by investing in this weird electric car?
"I might not make a single penny, and might even lose money. Wasn't this factory always losing money before?"
"Then what should we do?"
"What can we do? We'll just have to accept it. At worst, we'll forfeit the five million yuan deposit, but we have to cut our losses as soon as possible. Otherwise, this factory might really become a huge burden on us!"
"But if we do that, won't we offend Director Hou? You know, Director Hou may only be a deputy section chief, but he's a very capable person. I heard he'll be promoted soon!"
Qin Kai said somewhat dejectedly, "I know I might offend Director Hou, but if we don't, how much money will we have to pour into some hole?"
Wei Jianjun said somewhat dejectedly, "Brother Kai, I think we need to think about this matter carefully. Breaching a contract, especially one with someone within the system, has a huge impact and will significantly affect our future business."
Furthermore, we made this whole trip and gained nothing, even losing five million in the process. That's a bit unfair!
"Sigh, I was fooled by Dapeng!"
"Why did you bring him up again!"
"He told me something before, saying that as long as I invested in the direction of this guy surnamed Li, I would be sure to make a mistake. But I never expected that this guy surnamed Li would set a trap for me and swindle me out of a lot of money!"
"Brother Kai, you never know. What if that guy surnamed Li is playing hard to get? If you hadn't been there to argue with him, he might have been able to buy the factory at a very low price!"
"But what if he's not playing hard to get, but setting a trap for me? Do you expect me to keep investing hundreds of millions and then slowly wait for the land to be designated for commercial use?"
Upon hearing Qin Kai's words, Wei Jianjun fell silent.
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