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Chapter 62: Year-End Meeting
Shen Mo was somewhat tired, but his eyes were still bright. He gave a brief report on the progress in Jiangcheng and the plans for next year.
Han Mei had the loudest voice, raving about how booming the demolition compensation business in Tianjin was and how she planned to sweep across North China next year.
Su Wanqing didn't say much, but every word she spoke was to the point. Lu Chaoyang was as meticulous as ever. Ji Fanyin quietly took care of everyone's meal, refilling tea and water.
Lei Guoliang listened and observed. He could sense the invisible, competitive aura between the three women.
Shen Mo's achievements, Su Wanqing's foundation, Han Mei's drive, and Ji Fanyin's seemingly insignificant yet gentle power that connects everyone.
After dinner, the others returned to the hotel or their rooms one after another. Lei Guoliang was smoking on the balcony when Shen Mo walked over.
"Are you feeling better?" he asked.
"Alright. That old Chinese medicine doctor from Jiangcheng has some skills." Shen Mo smiled, lit a cigarette, and stood beside him, looking at the night view. "President Su is back early?"
"Um."
"The way she looks at you is different now." Shen Mo exhaled a smoke ring, his tone devoid of emotion.
Lei Guoliang did not respond.
"Guoliang," Shen Mo turned her head and looked at him, her eyes like jewels in the night: "I know you have a scale in your heart."
The three of us are different pieces to you, or perhaps... more than just pieces.
I don't care how many places there are in your heart; I only care whether my place is important enough and secure enough.
"The battle in Jiangcheng was tough, but I think it was worth it."
She was demanding, using her military achievements and loyalty, a more important position in his empire, and... a share of his affections.
"I've always recognized your abilities," Lei Guoliang said. "Whether your position is secure or not depends on how much territory you can conquer next year."
A very realistic answer. Shen Mo laughed; that was very much like Lei Guoliang.
"Understood. Well... see you at the meeting tomorrow." She stubbed out her cigarette and prepared to leave.
"Shen Mo," Lei Guoliang called out to her.
Shen Mo turned around.
"You've worked hard," he said, his voice not loud, but clear in the quiet night.
Shen Mo's smile deepened, he nodded, and turned to leave.
Lei Guoliang stood alone on the balcony for a while longer. Tomorrow would be a crucial meeting that would determine the future of Anjia Tianxia in 2005.
Tonight, these women, in their own ways, have added more complex and realistic variables to his thinking for tomorrow.
Empire, wealth, women, ambition, loyalty, scheming... all these are intertwined in the darkness of this deep town, waiting for him, the reborn one, to make his next move.
January 10, 2005, Shenzhen, Anjia Tianxia Group Annual Strategy Meeting.
The air in the conference room felt somewhat hot due to the overly strong central air conditioning and the crowded people.
More than sixty people were sitting on both sides of the long conference table and in the seats added at the back.
Regional general managers, core store managers, and directors from various centers across 26 cities nationwide. Everyone was dressed in suits and ties, their eyes gleaming with the still-burning fervor ignited by wealth and expansion over the past year.
At the far end of the conference table, Lei Guoliang sat alone, with only a glass of water in front of him. Lu Chaoyang and Ji Fanyin sat on either side of him.
The laptop in front of Ji Fanyin was connected to a projector, and her fingertips hovered over the Enter key, turning slightly white.
"Begin." Lei Guoliang's voice wasn't loud, but it was like ice water poured into boiling oil, instantly silencing all the whispers.
Press Enter to select the Sanskrit pronunciation.
On the huge projection screen, the 2004 core data report of Anjia Tianxia Group swept into everyone's view like a storm:
Total assets: RMB 2.18 million (real estate under Lei Guoliang's personal name is not included in the company's assets).
Total annual revenue: RMB 3.61 million (RMB 2.8 million from second-hand housing transaction commissions and RMB 0.81 million from rental agency commissions).
Net profit: Approximately RMB 7600 million (excluding rental income from properties under Lei Guoliang's personal name, minus monthly bank mortgage payments; this income belongs to Lei Guoliang personally and is unrelated to the company's net profit).
Total number of stores nationwide: 228 (covering 26 cities).
Total number of employees: Over 3200.
The numbers scrolled, and the conference room was initially deathly silent, then erupted into a cacophony of suppressed excitement and gasps.
In just four months, 93 new stores were added, averaging one new store opening every 1.3 days! This rate of expansion was nothing short of insane in the history of Chinese commerce in 2004.
Looking at the data for the East China region, Su Wanqing saw that the number of stores had exceeded 70, and the profit contribution was still the highest, but the proportion had dropped from 45% to 38%.
Her expression was calm, but her hands, resting on her knees, clenched quietly. She knew what this meant: the pie was getting bigger, but there were more people sharing it, and her absolute advantage was being diluted.
Shen Mo scanned the data for the South China and Central China regions. The newly expanded cities had achieved remarkable results, but the overall profit margin was dragged down by the large number of new stores opened and the initial investment.
Her lips pressed into a thin line; this was the expected price, but seeing the specific numbers still put her under pressure.
Han Mei was the most direct, grinning and tapping her fingers lightly on the table, clearly satisfied with the number of stores in North China approaching 50 and the soaring market share, even though the profit figures weren't particularly impressive.
Lu Chaoyang pushed up his glasses, stood up amidst a buzzing sound, and switched to the next set of PPT slides.
The red, bold headline struck everyone like an alarm bell:
Hidden Worries and Risks Under Rapid Expansion
1. Management cliff: Among newly promoted store managers, more than 35% were put into their posts without complete headquarters training, the employee turnover rate within three months was as high as 32%, and major customer complaints surged by 150% compared to the first half of the year.
2. Financial black hole: The average start-up cost of a single store exceeded the budget by 25%, marketing expenses surged by 80% year-on-year, but the return on investment declined, the accounts receivable cycle lengthened, and cash flow became tight.
3. Operational chaos: Due to outdated internal systems and lack of information sharing, seven cases of selling or renting the same property to multiple people have been confirmed, and three cases of salespersons engaging in unauthorized transactions and evading company commissions have been identified, resulting in direct losses exceeding one million yuan.
4. Quality decline: Mystery shopper surveys show that more than 40% of new stores fail to implement basic service standards, and the rate of distorted property information, such as sold but not withdrawn properties and incorrect pricing, is as high as 18%.
The excitement and restlessness from before deflated instantly, like a punctured balloon. The conference room fell silent, save for the hissing of the air conditioner.
Many regional managers and store managers began to turn pale and sweat appeared on their foreheads.
"Is it good?" Lei Guoliang finally spoke, his voice eerily calm as his gaze slowly swept over every face in the audience: "Four months, 93 stores. You guys are pretty capable."
No one dared to speak.
"But I have a question for you," he leaned forward slightly, his hands resting on the table, "why open so many stores?"
Is it to plaster Anjia Tianxia's signs all over the country, only to let them rot and decay? Or is it to make these numbers look good so they can distribute profits at the end of the year, regardless of whether they survive next year?
Every word was like a whip, lashing at the hearts of those blinded by performance targets.
"Expansion is not wrong. The market is hot, the opportunity is right in front of us, only a fool wouldn't take the plunge." Lei Guoliang's tone shifted, but became even colder: "But to rush in blindly, recklessly, and without regard for life is an even bigger fool! It's digging your own grave!"
He pointed to the red data on the screen: "These are the hands reaching out from the grave, pulling at your feet! Can you feel them?"
After the high pressure comes a new order.
Lu Chaoyang presented a completely new, more refined, and centralized organizational structure and authorization system for the group in 2005.
1. Five strategic zones were formally established, but their authority was redefined:
Personnel authority: Regional general managers can appoint and dismiss store managers and below, but all newly promoted store managers must undergo unified training and certification by headquarters.
The appointment of general managers of core cities and heads of regional functional departments requires approval from headquarters.
Financial authority: Implement a budget pool + rolling allocation system. Each region's annual budget must be detailed down to the quarterly and monthly levels and undergo strict review by headquarters.
Large expenditures, exceeding 50 yuan in a single transaction, require prior notification. The practice of acting first and reporting later is abolished.
Business rights: Store expansion plans, entry into new cities, and major asset acquisitions exceeding 1000 million RMB must be accompanied by a detailed feasibility report, which must be reviewed and approved by the headquarters strategic investment committee (Lei Guoliang, Lu Chaoyang, and relevant regional managers).
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