Journey 1995:Non-Stop

Chapter 301 Multifaceted Development
"Mr. Yan, do you still have such good connections here?" On the way back, Wang Yongjun asked with some doubt. Of course, they knew about Yan Hui's relationship with President Han, and they also knew that Yan Hui's main channels were expanded from here, but they did not expect that Yan Hui had connections with Hong Kong-funded enterprises.

"This is all normal business. We bid according to regulations. It's not about any connections." There were other people in the car, so Yan Hui didn't say much more.

After returning home, Yan Hui continued to busy himself with various things, and he was still constantly on the go.

By May, several projects discussed with Li Ze had been successfully signed. Yan Hui not only secured the plywood business but also received commissions on hardware and air conditioning. For the hardware, Yan Hui didn't source entirely from Liu Yang; he discovered the profit margins were substantial. He contacted his second-in-command in Beijing, who introduced him to some channels. He also found two people through Wang Yongjun and handled the work himself.

The profit margin for hardware parts, overall, can reach an astonishing 40% or more, something Yan Hui had never imagined before. After talking with his second brother, he understood that the problems with hardware parts lie in high wastage, large inventory, an excessive variety of types, and slow turnover, hence the high profit margin. His second brother told Yan Hui that the higher the volume of hardware used, the lower the profit margin, and for some special parts, even a 200% profit margin might not guarantee profitability; you might buy 10 pieces and only sell 3 after several years.

Li Ze is a rather lazy person with limited abilities, and ultimately, no major projects were secured through him. Looking at the existing projects, aside from his own hardware business, Yan Hui's mall construction this year will only earn him a maximum of five or six hundred thousand yuan, not enough to propel him to higher positions. If Li Ze could secure any major project—cement, concrete, or steel reinforcement—Yan Hui would achieve a significant leap forward this year.

Fortunately, Yan Hui didn't say these words aloud, otherwise he would have easily gotten beaten up. He seemed like a born businessman, very clear about the meaning of "business is business," and that one shouldn't sacrifice money for the sake of face.

By July, Yan Hui's plywood and steel formwork rental businesses were going smoothly, with the company's stock of steel formwork reaching approximately 1.5 million RMB. The net rental income each month was about 50,000 to 60,000 RMB. In fact, Yan Hui spent about 1.3 million RMB on these steel formworks in total. He had always been meticulous in this regard, saving money wherever possible, and acquiring the cheapest steel formwork available nearby.

Despite this situation, Yan Hui still had several hundred thousand yuan in cash on hand. Throughout the plywood and construction material business, Yan Hui didn't need to use his own money; all the pressure to secure payments fell on the suppliers, even in the plywood business. Under these circumstances, not a single supplier complained; everyone revolved around Yan Hui, afraid of losing this cash cow.

He searched everywhere for suitable steel formwork, basically not ordering new stock from steel mills. In this small area, no one was selling used steel formwork anymore, which was a great advantage; he had essentially eliminated many potential competitors. Steel formwork is a type of movable property that requires heavy investment and is difficult to mortgage. To enter this industry, one must have a large amount of capital, and very few people are willing to compete head-on in this leasing sector with such large capital.

As Yan Hui's career progressed, he no longer had any competitors in this region.

Unable to find a suitable driver, Yan Hui is preparing to buy a car and drive it himself.

You can get a car loan. He's been looking at cars a few times recently and has decided to buy a Buick Regal for a little over 21 yuan. While others might not care much about buying a car, his father is very concerned. When he and Yan Hui went to buy a car, he kept grumbling that once Yan Hui had more money, they could buy a nice car back in their hometown and just park it at the door.

Yan Hui's grandmother has always wanted to rebuild a house, while his father hopes that Yan Hui will buy a car, but these things will have to wait, and the family understands.

Yan Hui could manage to scrape together a million to build a five- or six-story house, but business people, when things are going well, naturally prefer to invest the money in production.

Yan Hui and his father came twice. They had already chosen a car, and this time they were here to process the loan application. "You have money now, why don't you just buy it directly? Why do you have to take out a loan? You'll have to pay interest!" His father always felt that Yan Hui's actions were wrong.

Employees generally dislike taking out loans because deposit interest rates can't keep up with loan interest rates. However, business owners prefer loans because business profit margins are higher than loan interest rates.

"That's why I don't have that much money right now. I can't not buy this car; I can't drive that van every day. I'll give you the van first, and next year when I have more money, I'll buy you a used sedan," Yan Hui promised.

“We’re not in a hurry. I’m doing quite well at the lumber mill, and I’ve learned some skills there. I even installed the sander myself when the belt came undone last time,” the father boasted.

"Hmm? Which one are you talking about? Is it the 1300 model wide-band sander?" Yan Hui asked.

“Yes, yes, that’s the one!” the father said immediately.

“That machine is quite safe. It automatically shuts off and cuts off the power immediately after the tape is removed. It only takes about two or three seconds to stop. Removing and installing the tape shouldn’t be difficult, right?” Yan Hui looked at his father. “But why did you have to do this? Didn’t I tell you not to touch those machines?”

"I was just trying to help out," the father said, a little embarrassed. He had wanted to show off to his son, but his son didn't understand at all.

“Go back and tell Dai Changzi that if this sander keeps slipping off the belt, the problem might be with the pneumatic control. The tension roller of the sanding belt is driven by an eccentric shaft, and…” Yan Hui had just started speaking when he realized he was talking to his father, so he quickly waved his hand. “Anyway, just tell him it’s pneumatic. The ‘qi’ in air and the ‘dong’ in movement.”

"Huh? Okay," the father nodded, seemingly understanding.

These are all minor matters. This processing plant has been operating for a long time and has always been quite worry-free for him. For Yan Hui, the investment in this processing plant wasn't large, because most of the investment was financed through loans. Theoretically, the largest shareholder of this factory is the bank. So, as long as the factory operates stably and with high quality, that's enough. Yan Hui calculated that the processing plant only gives him a few hundred thousand yuan a year in profit sharing.

After completing the loan procedures, Yan Hui couldn't pick up the car today, so he took his father home and then went to nearby construction sites to buy steel formwork. He heard that someone was selling it today, but the quantity was very small, only a dozen tons. Although the quantity was small, Yan Hui always handled these matters personally and came on time. (Supplementary Chapter)

(End of this chapter)