Chapter 300 Operation of Kaven (Three updates, please collect, subscribe and vote monthly)
"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 Kaven who was sitting on the sofa with great emotion, "What is the concept of 5%? Our peers, their figure is about 25%, but 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 profits are three times theirs!
Mr. Kaven, I think this should be the reason why Norde Bank invested in us. "
"This is indeed a good project,"
Kaven smiled softly, looking like a kind old man. He looked at the report in his hand,
"But Mr. Kyle, in your report, your factory in Dawn City has probably introduced about 1,300 new Wilderness Wanderers 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 number has only increased by 100 per year.
Does this mean that you will lose nearly 1,200 Wilderness Wanderers every year? "
"Mr. Kaven," Kyle hurriedly defended, "But the number of new Wilderness Wanderers entering the city is increasing. Recently, due to the migration of A-class Exotic Beast, a large number of Wilderness Wanderers have poured in from several nearby cities. It is foreseeable that the number of our workers will further increase."
"Of course you can now," Kaven smiled and handed the coffee in front of him to Kyle.
"Mr. Kyle, don't worry, drink some coffee."
Then he continued, "What about the future? The storm of A-level Exotic Beast migration has been going on for almost ten years. Even the earlier storm came more than ten years ago. You have made money for almost ten years. With the A-level Exotic Beast Once leaves, the Order in the surrounding cities will recover 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 always make money."
Kyle argued.
"The migration of A-level Exotic Beast has an end. The migration of this A-level Exotic Beast is almost over," Kaven smiled, and then he looked at Kyle who wanted to speak again and continued,
"Even if we assume that the migration of Class A Exotic Beast is continuous, Mr. Kyle, you currently have about 6,000 Wilderness Wanderers employees on file. Based on the annual loss of 900 Wilderness Wanderers, the service life of these Wilderness Wanderers is about 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 need, this person must be at least fifteen years old before he can work.
This cultivation cycle is long, and after you have consumed all the Wilderness Wanderers, no new Wilderness Wanderers will 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 could not make a sound of defense.
"Dawn City is the largest city around. 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."
Kaven 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 Dawn City and did not belong to Dawn City.
Then you will not be able to attract so many people in other cities, and you will not be able to replicate the success of Dawn City in other cities.
And since this is a non-renewable resource, it will naturally be used up one day.
Around Dawn 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, only tens of thousands of people may enter the city.
I saw you said in the report that you want to expand production at Dawn City? Then your consumption will continue to increase. How long can these tens of thousands of people last you?
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 in ten years is 100%, and the average annual return is 10%. Do you think this return is high?
Mr. Kyle, this is still the ideal situation we calculated. "
Kyle A trace of cold sweat broke out on his 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 proved that it is not possible to open branches in other cities and that it is not possible to expand in Dawn City. It has even directly proved 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 gone to Nord, a group of jackals who 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.
"This is actually not a matter of price," Kaven said slowly, looking at Kyle becoming more and more nervous, "We can actually give you a higher price."
"Huh?"
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 reports are also very good, which are much higher than other similar companies."
Kaven said softly.
"What's the point? I can't see anyone."
Kyle frowned.
"Not necessarily,"
Kaven took a sip of coffee and said kindly, "Nord can package your factory and list it on the market. 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 to expand."
"But our project is not..."
Kyle is a little confused.
"Your project won't last long, but it doesn't prevent you from making money," Kaven 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. 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 off 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 make another profit from it. By the time the matter is over, you 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 by trading 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?"
Kaven 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.
Asking for a ticket at the beginning of the month