"Our current raw material costs account for about 30% of the sales price, machinery depreciation accounts for 20% of the sales price, management fees, real estate depreciation, and transportation costs account for almost 15% of the sales price, while labor only accounts for 5%."
Kyle stood in front of the TV and introduced to Cavin who was sitting on the sofa passionately, "What is the concept of 5%? Our peers, their number is about 25%, and we are 20% less."
!And this 20% will all be converted into our net profit.
Factories with similar business operations to ours only make 10% profit from selling a product, while we have 30%! Our profit is three times theirs!
Mr. Carvin, I think this should be the reason why Nord Bank invested in us."
"This is indeed a good project,"
Kavin smiled softly and looked like a kind old man. He looked through the report in his hand.
"But Mr. Kyle, in your report, your factory in Chenxi City has introduced about 1,300 new wilderness wanderer workers through various methods every year in recent years. However, the total number of your workers has grown extremely slowly. In recent years,
The average growth rate is only 100 per year.
Does this mean that you will lose close to 1,200 wilderness wanderers every year?"
"Mr. Carvin," Kyle hurriedly defended, "but the number of new wilderness wanderers entering the city is increasing. Recently, due to the migration of A-level alien beasts, several nearby cities have seen a large influx of wilderness wanderers. It is foreseeable that,
The number of our workers will continue to grow,"
"Of course you can now," Kavin smiled and brought the coffee in front of him to Kyle.
"Mr. Kyle, don't worry, have a sip of coffee."
Then he continued, "What about the future? The storm of migration of A-level alien beasts has been going on for almost ten years. Even the earlier storm came more than ten years ago, and you have been making money for almost ten years.
With the A-level alien beasts leaving, order in the surrounding cities will be restored sooner or later. When the new order is established, will there still be so many wilderness wanderers entering the city?"
"We can also open branch factories in other cities along the A-level exotic beast route. This business can continue to make money."
Kyle argued.
"The migration of A-level alien beasts has an end, and the migration of this A-level alien beast is almost over," Calvin said with a smile, and then he looked at Kyle who wanted to speak again and continued,
"Even if we assume that the migration of A-level alien beasts is continuous, Mr. Kyle, you currently have about 6,000 wilderness wanderers on file. Based on the annual loss of 900, the service life of these wilderness wanderers is about
It's 5 years.
Mr. Kyle, humans are not chickens, pigs, or cows. They can be slaughtered in a few months or a year or two. To meet the work intensity you require, this person must be at least fifteen years old before he can work.
This cultivation cycle is long, and after you consume all the wilderness wanderers, no new wilderness wanderers can be born.
So in a sense, would I consider you to be consuming a non-renewable resource?"
"I···"
Kyle opened his mouth, but this time he couldn't make a sound of defense.
"Chenxi City is the largest city in the surrounding area. It has a siphon effect on wilderness wanderers who cannot live in the wilderness, so the number of wilderness wanderers arriving is much higher than other cities,"
Calvin put down the report in his hand and continued, "In other words, in fact, many of the wilderness wanderers you absorbed were people who were supposed to enter the surrounding cities but were attracted by the prosperity of Chenxi City and did not belong to Chenxi City.
Then you won't be able to attract so many people in other cities, and you won't be able to replicate the success of Chenxi City in other cities.
And since this is a non-renewable resource, it will naturally be used up one day.
Around Chenxi City, including the nearby radiation range, the number of wilderness wanderers is only a few hundred thousand.
Among them, there are tens of thousands who are not affected by migration and are unwilling to enter the city. There are also tens of thousands who can settle down or simply die in the wilderness and will not enter the city. In the end, there are only tens of thousands of people who may enter the city.
I saw you said in your report that you want to expand production in Chenxi City? Then your consumption will continue to increase. How long can these tens of thousands of people keep you going?
ten years?
According to the production cost in your plan, it will take about five years for our investment to recover. In ten years, we will make double the money. The return will be 100% in ten years, and the average annual return will be 10%. Do you think this return is high?
Mr. Kyle, this is still the ideal situation according to our calculations."
A trace of cold sweat broke out on Kyle's forehead. He found that he was completely led into the opponent's rhythm, but he didn't know how to refute.
The other party has already demonstrated that it is not feasible to open branches in other cities and expand in Chenxi City. It has even directly demonstrated that his project has no future.
This is the reason why he has been reluctant to find people for financing. These people are too smart and cunning, and he can't beat them. He would rather borrow high-interest money from the bank.
If he hadn't really been unable to borrow money, he wouldn't have approached Nolde, a group of wolves that eat people but don't spit out bones.
"If it doesn't work out, we can negotiate the price again and my shares can be sold cheaper."
Kyle wiped the cold sweat from his forehead.
"It's actually not a matter of price," Calvin said slowly, looking at Kyle's increasingly nervous look, "We can actually give you a higher price."
"Um?"
Kyle was stunned. He thought the negotiation had failed.
"Mr. Kyle, as you said, your company's operating conditions are very good, and its performance report is also very good, which is much higher than other similar companies."
Kavin said softly.
"What's the point? You can't see anyone."
Kyle frowned.
"not necessarily,"
Calvin took a sip of coffee and said kindly, "Nolde can package your factory and list it on the market, and you can attract financing in the stock market. Relying on your excellent financial statements, the stock price will rise rapidly, and then you will have money to continue
Expanded.”
"But our project is not..."
Kyle was a little confused.
"Your project won't last long, but it doesn't prevent you from making money," Kavin said with a smile.
“You can slowly reduce your holdings of some stocks at a high level, and then release some bad news appropriately to make the stock prices fall. Then you can buy them back and repeat this several times, and you will have enough money.
When the company really can no longer operate, you report false news to increase the stock price, then sell the stocks in your hands, find a few short-selling institutions to expose the problems of your company, wait for the stock price to collapse, and you make another profit from it.
Pen, by the time this is over, you will have made money and left."
"But if we do that, won't many people who buy our stocks go bankrupt and jump off the building?"
Kyle was stunned. He always felt that he had seen this operation somewhere before. His parents had lost all their money in the stock market and finally committed suicide by jumping off a building. As a result, he became a street child.
"You have made money, what does it have to do with you whether they die or not?"
Kavin drank coffee and smiled.
At this moment, the lights in the conference room suddenly went out.
The wooden conference room door was slowly pushed open.
