Journey 1995:Non-Stop

Chapter 188 Risks and Returns

The 1998 floods were severe from mid-July until mid-September. Yan Hui was constantly monitoring the climate change and flood peak changes, and the pressure was naturally considerable.

July 19th was a Sunday. Yan Hui was already certain that his batch of goods would arrive the next day. Many people in the market were contacting him, wanting to buy a batch of logs, but Yan Hui didn't sell a single one.

There were many people criticizing Yan Hui, and everyone thought that Yan Hui was trying to profit from the disaster. However, Yan Hui did not explain. Instead, he went directly to the government of Qinhuai and took the initiative to explain his purpose.

The security guards couldn't believe it at first, since Yan Hui was so young, but after chatting for a few minutes, they immediately led Yan Hui into the house, and soon a leader came looking for them.

"You mean you have a batch of logs arriving tomorrow, and you're planning to donate some of them?" The leader was hardly convinced.

"Yes, I've discussed it with my family, and we feel that with such a huge flood, we should do what we can to help. Although my personal strength is limited, my grandfather said that if you have the ability to do something, you must do it."

"So who's in charge in your family?" the leader asked again.

“I’ll make the decision. I’d like to ask about our needs. If the boards are good, I’ll donate the boards; if the logs are good, I’ll donate the logs.” Yan Hui had already made his plans.

Whether this counts as talent or not, Yan Hui always maintains a calm and composed demeanor when facing government officials, and has never been intimidated.

"Wait a moment, I'll find a leader from the water resources department to come and talk to you." The leader acted swiftly and immediately left.

It's the weekend, but none of the government leaders are taking a break.

Soon, a leader in charge of the rescue rushed over and had a detailed discussion with Yan Hui.

The Jianye section currently does not require timber for dike reinforcement, but the flood has only just begun. If problems arise, not only sandbags and timber, but even trucks will have to be used to fill the dike. Therefore, it is necessary to have a reserve of logs.

"We have already stockpiled some, but of course, the more emergency supplies the better," the leader said frankly.

“Then I’ll donate some logs,” Yan Hui thought carefully. “I plan to donate two train cars’ worth of larch logs, about 120 cubic meters.”

"Two freight cars!" The leader was stunned.

How could he not know the price of larch logs? Two train cars of thick-diameter larch logs would cost at least tens of thousands of yuan now! And they're not easy to buy!
Jianye doesn't have an urgent need, but given the current situation of the Jingjiang River section, no one knows what dangers might arise for Jianye in the future.

120 cubic meters, enough for at least five or six truckloads, is sufficient for the emergency reinforcement of a high-risk section of the river!

"Well, I don't have a lot of funds either. This number is one I've calculated, so please don't think it's too little." With this awful weather, Yan Hui isn't even sure if his goods will arrive by the end of the month, so donating this much is already at his limit.

"If you think this is too little, then what about other people? Mr. Yan, this donation of timber is the largest we've ever received, and it's a personal donation." The leader was at a loss for words. "Where is your timber? Would you mind taking me to see it first?"

"We'll arrive tomorrow. You can send a car over then. Here's my business card." With that, Yan Hui handed the card to the other person and turned to leave. The leader stood up, seemingly wanting to ask something, but after glancing at the card, he ultimately didn't. He still couldn't quite believe it and needed to verify Yan Hui's identity.

During this period, transportation capacity itself was a scarce resource, and he couldn't possibly send several trucks to the timber market just because of a few words from Yan Hui.

After Yan Hui left, the leaders conducted a brief investigation and confirmed that Yan Hui was indeed a businessman from Fujian Province. However, according to the investigation, Yan Hui was not a big businessman at all; his assets were less than a million yuan. His donation of over 10 yuan worth of supplies was truly touching.

"What kind of sentiment and spirit does this comrade possess? Jianye needs entrepreneurs like this! Xiao Wang, this matter is still only in the verbal stage. We haven't seen the timber yet, so don't rush to report it. But when you go to load the trucks tomorrow, remember to bring a reporter from the newspaper." The leader gave instructions.

"clear."

Yan Hui didn't think too much about it. After he went out, he only felt that the rain had lessened. When he passed the Yangtze River, he even felt that the waves had shrunk. He was full of confidence in his railway transportation.

For a business owner, confidence is more important than gold. When Yan Hui went to the government today, he heard that Jianye does not need logs for disaster relief at present, but only log reserves or reinforcements to other places. He felt much more at ease.

Sometimes, ordinary people, including businessmen, don't really trust weather forecasts, but what Yan Hui heard this time was absolutely credible.

In the past few days, the flood peak has been getting bigger and bigger. Yan Hui originally didn't have the courage to order a few more train cars, but after discussing the donation, Yan Hui directly increased the order quantity to the maximum and even started collecting deposits in advance.

When his cousin brought people over last time, many people no longer saw Yan Hui as a "nouveau riche," but as a wealthy family with a long history, which raised Yan Hui's market image to a new level.

Of the 420 cubic meters of logs to be delivered tomorrow, Yan Hui has decided to donate 120 cubic meters, and for the remaining 300 cubic meters, he will start collecting money and selling the goods directly.

In just two hours, Yan Hui sold the 300 cubic meters of logs at a price of 800 yuan per cubic meter, without raising the price further.

"Fifth brother, I understand your donation, but why don't you sell it for 1000 yuan per cubic meter? It'll be slower, but I'm sure I can sell it in two days! Besides, if you sell it so quickly, others might continue to sell it at a higher price," the third brother couldn't help but complain.

“We want to do long-term business. 800 cubic meters is already a good profit. Even if we donate 120 cubic meters, we won’t lose money. We can sell 1000 cubic meters, but once the flood is over, we won’t be able to stop the voices behind our backs cursing us.” Yan Hui rejected the third brother’s suggestion.

"Then you can give it to your cousin. He can buy it for 800 and then secretly sell it for 1000 per cubic meter, right?" The third brother still didn't understand.

“On the one hand, everyone knows our relationship, so your statement hasn’t changed; on the other hand, if we can sell for 1000 per cubic meter, do you know what that means? Such a huge profit, even with great risks, will attract a bunch of bosses to restock on a large scale! You know, most of their goods come from Fengtian, and their cycle is at least three days faster than ours! If they all restock on a large scale, what price can we sell our next batch of goods for? Have you thought about that?” Yan Hui patiently explained to the third brother.

The biggest taboo in business is going to extremes. Right now, other merchants are either transporting goods or closing down. The current price level is maintaining a balance at this stage, a balance between risk and return. It would definitely be a mistake to rashly disrupt this balance.

"That makes sense. When will the next batch of goods arrive?" the third brother asked expectantly.

"It will be quick, no need to rush."

(End of this chapter)