The Super Rich: Start from when the family business is about to go bankrupt!

Chapter 749 WPG's reasonable scale, temporarily reducing profit-sharing rights, is this unscrupulous senior brother ripping off junior brothers and sisters?
Yan Bingyue meant that An Wuyang's proposal to expand the scale by a hundredfold was unreasonable!
This disorderly expansion could easily disrupt the existing supply and demand relationship for pearl grouper.

Although the gross profit margin of pearl grouper farming currently appears to be around 50%, which is indeed quite profitable, this gross profit margin is dynamically adjusted according to market supply and demand.

If, as An Wuyang said, a 10,000-mu pearl grouper farm was hastily established, the purchase price of pearl grouper would inevitably plummet.

This raises a question: if more costs are invested but the gross profit margin plummets, how long will it take to recoup the costs?
Yan Bingyue had already roughly calculated the result in her mind!
Based on the assumption that 1000 pearl grouper are raised per acre, and the scale of the farm is 10,000 acres, and with the added cost reduction from self-built fish fry breeding factories, fish feed factories, etc., the cost of each pearl grouper may drop to around 10 yuan.

Considering the sudden increase of one-third in the supply of pearl grouper, the estimated purchase price of pearl grouper will drop from 30 yuan to around 20 yuan.
Of course, this is just a rough prediction and assessment, not the actual situation.

With the addition of Yan Bingyue's new technology, the super-large aquaculture farm covering 10,000 acres produces a total of 20 million pearl grouper fish every year.

The rough gross profit per fish is about 10 yuan, so the gross profit per year can reach 200 million yuan.

That sounds like quite a lot?
However, the total investment in a 10,000-mu (approximately 667 hectares) super-large-scale breeding farm is actually between 16 billion and 2 billion yuan!
It can take 8 or even 10 years to break even.

Perhaps some people think this is nothing?

However, this is just a mathematical calculation and does not take into account the fluctuations in the market price of pearl grouper, the aging and depreciation of the venue and equipment, or even various unforeseen circumstances.

Based on Yan Bingyue's proposed earthen pond aquaculture method, profitability can be achieved in the third year!

For capital investment, the current method is definitely better because a faster payback period means less risk.

Faced with Yan Bingyue's explanation, An Wuyang did not insist on going his own way, because the triggered random events also need to take into account the rationality of the investment and the rationality of future expectations.

If a super-large-scale breeding farm project of 10,000 mu is forcibly promoted, although An Wuyang's funds can fully support it, the actual reasonableness assessment may drop to a very low level.

"Xiao Yan, if we expand the scale as much as possible under reasonable circumstances, what do you think is the maximum scale we can expand to?" An Wuyang asked for the opinion of a professional.

Yan Bingyue fell into silent thought.

After a moment, he responded, "Actually, besides those objective factors, there is also a subjective factor that restricts the scale of our farm."

"Oh?" An Wuyang gestured for Yan Bingyue to continue explaining.

“For Zhanlan, we have always been outsiders. If our farm becomes too large, it may affect the market price of pearl grouper, and we may face resistance or even some kind of unclear retaliation,” Yan Bingyue added.

"For example, suppression from competitors, including the use of drones to deliver special drugs, which caused an imbalance in the water quality of our aquaculture ponds, leading to the death of grouper," Yan Bingyue added.

"Drones are so convenient to use now, and the methods of using them to commit dirty tricks are becoming more and more sophisticated," Yan Bingyue said cryptically.

How could An Wuyang not understand?
The Taibai Mountains have something to say about this!
The area had previously been attacked by drones carrying mercury, which destroyed the life of large swathes of land.

“Why don’t we establish a comprehensive security system?” An Wuyang suggested.

“For example, we can establish a drone defense system and equip ourselves with drones. When a drone flies by, we can also use drones to track it, thereby achieving a balance of terror,” An Wuyang added.

At this point, An Wuyang smiled, "In addition, I can put pressure on the imperial court to prevent these people from making any rash moves."

"If that's the case," Yan Bingyue thought for a moment.

“We can establish a 3,000-mu modern aquaculture farm, which is equivalent to expanding the pearl grouper industry in Zhanlan City by 10%, and this expansion is within a reasonable range,” Yan Bingyue explained.

"In addition, we operate modern farms and do not raise livestock in open-air ponds. This allows us to better defend against external risks. Whether it's using drones to administer pesticides or severe extreme weather, it has no impact on us," Yan Bingyue added.

“However, this will involve long-term land transfer issues, and the final investment will be relatively high, requiring at least 500 million Xia Guoyuan.” Yan Bingyue looked at An Wuyang hesitantly.

Can An Wuyang come up with an investment of 500 million?
Shouldn't this level of investment be made by someone in the early morning?
Actually, An Wuyang really does have it!
Although Xia Guoyuan had less than 300 million yuan in An Wuyang's fund pool, there were still more than 100 million US dollars, so An Wuyang could invest it himself.

But An Wuyang didn't want to invest himself!

He decided to let Wugengtian invest, since Wugengtian was a private enterprise of the An family, and An Wuyang, as the sole heir and the current head of Wugengtian, could make the decision himself.

“No problem, then build the farm according to this scale,” An Wuyang instructed.

Yan Bingyue immediately replied, "Well, Mr. An, if we want to implement this investment plan, we need Mr. An's help with something."

“We need to lease 3,000 acres of land in Zhanlan long-term. This will definitely require the assistance of the local government, so we need President An to help us handle the relations with the government,” Yan Bingyue added.

If it's just a small-scale pond aquaculture project covering 100 acres, then Yan Bingyue and Zhuang Fan can naturally handle it themselves.

After all, the construction cost of earthen pond aquaculture is very low, land can be rented for a short period of time, and there is no fear of any land disputes.

However, if a modern aquaculture farm needs to be built, a fish fry breeding factory, a fish feed factory, etc., it means that land needs to be leased for a long period of time.

In this situation, if the land dispute is not resolved properly, it will cause a lot of trouble later on.

An Wuyang replied with a smile, "Okay! I'll arrange it right away!"

For An Wuyang, wouldn't this kind of problem be solved easily and pleasantly?

After all, it's a 500 million yuan investment in real assets. It can not only boost the local economy but also provide jobs. Isn't that a good thing?

However, An Wuyang still does not intend to handle it himself, but instead entrusts it to Zhu Ning'an Pharmaceutical Group, the distributor in South China.

An Wuyang is all too familiar with the underhanded tricks involved. Sometimes, good things don't necessarily guarantee success; there are many complexities involved!
An Wuyang took out his phone and dialed Zhu Lingyao, the CEO of Zhu Ning'an Pharmaceutical Group. After the call was connected, An Wuyang quickly explained the current situation and then added, "Mr. Zhu, is it alright to leave this matter to you?"

Zhu Lingyao responded with certainty and eagerness, "No problem, no problem, please rest assured, President An, we will handle this matter as soon as possible."

"Thank you then!" An Wuyang replied politely.

"Mr. An, you're too kind!" Zhu Lingyao was eager to serve An Wuyang. Their Zhu Ning'an Pharmaceutical Group ranked second to last among the five major distributors, so he naturally hoped to build a deeper relationship with An Wuyang. After the call ended, An Wuyang casually replied, "The land issue is settled!"

Yan Bingyue and Zhuang Fan were both secretly shocked, because An Wuyang had solved such a complicated problem with just one phone call?

"Given the increased scale of our investment, I have decided to change the investment method. The investor will change from me to Wugengtian, and this farm will henceforth be a wholly-owned subsidiary of Wugengtian," An Wuyang added.

Yan Bingyue hesitated slightly before saying, "Since the scale of the farm has expanded, Mr. An, could you adjust my profit-sharing rights a bit downwards?"

Yan Bingyue has a 2% share of the profits!

Although it is only a right to dividends, not equity, two percent of the dividends is still a lot after the scale of the farm expands.

Based on previous calculations, if the scale of the aquaculture farm expands to 3,000 mu, and the impact on the market is not too great, the price of pearl grouper will not drop too much.

That means that Yan Bingyue could directly receive millions in dividends with a 2% share of the profits!

This is already a conservative estimate. If you're lucky, for example, if you encounter extreme weather that causes a sharp drop in production for other earthen pond aquaculture farms, the annual dividend might exceed two million.

Zhuang Fan immediately chimed in, "President An, could you also reduce my profit-sharing rights a bit?"

Zhuang Fan's profit-sharing rights are one percentage point higher, reaching three percent.

After a moment's consideration, An Wuyang replied, "Your profit-sharing rights will remain unchanged, but you will need to stand together with the farm."

“Until the farm recovers its investment costs, Lao Zhuang’s dividend rights will only be 1%, and Xiao Yan’s dividend rights will be reduced to 0.5%. Once the farm recovers its costs, your dividend rights will return to the agreed 3% and 2%,” An Wuyang explained.

Yan Bingyue immediately agreed, "No problem!"

Even if it's only a 0.5% bonus, he estimates it would be at least 200,000, possibly even more than his annual salary.

Zhuang Fan agreed, so how could he refuse?
After all, there's Yan Bingyue, that competitive dog, around!
"President An, there's one more issue regarding the farm that needs to be addressed," Yan Bingyue added.

"What's the problem?" An Wuyang asked.

“After the scale of the farm expanded, our previous design plan became obsolete. More importantly, I cannot build a modern farm with a scale of 3,000 mu (approximately 200 hectares). This requires a professional team to design it,” Yan Bingyue explained.

"Therefore, we need to hire a professional design team to do the design, which requires additional funding," Yan Bingyue added.

"In addition, the corresponding construction period needs to be extended. We can no longer officially start the project in March. The earliest we can start the project is in September of the second half of the year," Yan Bingyue added.

An Wuyang responded, "Do you have any design companies you would recommend?"

Yan Bingyue shook her head, "I don't recommend commercial companies!"

“I think we should contact the Dongguang Provincial Design Institute directly. Although their fees are slightly higher, they can handle the government's approval process, environmental assessments, and applications for aquaculture permits all at the same time. They can help us get everything done,” Yan Bingyue said, sharing her thoughts.

"In addition, we can also have them provide on-site services during the construction period, which can solve some unnecessary troubles," Yan Bingyue explained somewhat cryptically.

"Given that we are building a modern, intelligent breeding factory, I estimate the total cost to be around ten million," Yan Bingyue said nervously, looking at An Wuyang.

Because this cost is indeed quite high, if it were handled by a commercial company, the cost could be reduced by about 20%.

An Wuyang readily agreed, "No problem, it's only right that we maintain good relations with the locals."

Yan Bingyue breathed a sigh of relief. He was afraid that An Wuyang had connections with higher-ups, so he overlooked the ways of the lower levels.

However, how could An Wuyang not know: "It's easier to see the King of Hell than to deal with his underlings?"
An Wuyang does have a strong network of interpersonal relationships and is able to handle these matters well, but interpersonal networks are not used in this way; using them in this way is inappropriate.

The right approach is like Yan Bingyue's: if you want to do business and make money locally, you should leave the local resources behind.

How can you eat the meat yourself and not leave a single drop of soup for others?
"Is it safe to leave this matter to you?" An Wuyang asked Yan Bingyue.

Yan Bingyue nodded repeatedly, "I'll ask my supervisor for help. I have a very good relationship with my supervisor, and he has connections at the design institute. I can ask him to help me get some free labor."

"I'll persuade all my junior classmates to come and study and intern here, which will save us a lot of labor costs," Yan Bingyue said without any sense of guilt.

That delinquent senior!

Zhuang Xiaomeng almost rolled her eyes while listening to this.

An Wuyang laughed. He knew that Yan Bingyue, with the help of the breeding farm, did indeed have such power.

But it's still outrageous to take labor for free!

After all, Ping An Pearl Grouper Farm is going to hang up a sign for "Wu Geng Tian" (meaning "at dawn") in the future, and An Wuyang felt that there was no need for such a thing as hanging up a "Wu Geng Tian" sign to do something that would allow them to do nothing.

Wu Gengtian had a very good image under his grandfather and father. Even when Wu Gengtian was already on the verge of collapse, An Huchun still had to pay exorbitant compensation to lay off employees, which fully demonstrated the human touch of Wu Gengtian.

Now that Wugengtian has been handed over to An Wuyang, An Wuyang is reluctant to ruin Wugengtian's reputation and image!

An Wuyang reminded him, "Xiao Yan, whether you want to bring your junior brothers and sisters here to study or intern in the future is your freedom, but I don't want you to actually do anything like freeloading labor, understand?"

Freeloading is shameful, and An Wuyang doesn't like it!
"If you're here to study, we can provide basic accommodation and meals; if you're here for an internship, we'll provide a salary based on market rates," An Wuyang added.

Yan Bingyue nodded repeatedly, "Okay, President An, I've got it!"

(End of this chapter)