MMB Chapter 77, First Payment
Chapter 77, First Payment
Since the 11th, the small factory on Tongzhou Street has officially started production.
Today, the 23rd, Li Rong and his workers have produced a total of 16.1 tons of substandard plastic flowers.
In theory, operating day and night, the maximum daily output is 2 tons.
However, while the man could work hard, Lin Yuanshan's local excavators, inherited from the former Fa Ji Plastics Factory, couldn't keep up.
therefore.
Over a period of 13 days, a total of 16.1 tons were produced, slightly less than Bo Rong's estimate.
This is only because we managed to buy that KM250; if we hadn't, we would have had to reduce production.
The price Lin Yuanshan initially negotiated with Xu Neng for the substandard plastic flowers was that Yellow River Plastics would buy them back at 75% of the market price.
That is, 200 * 0.75 = 150 pieces.
Later, Lin Yuanshan devised a scheme to revitalize the waste recycling business, helping Li Yicheng gain a reputation for a stable market.
The two parties revised the contract, reducing the buyback price to 70%, which means the buyback price per ton is 140 yuan.
140 * 16.1 = 2254 yuan.
The cost of the raw materials has already been paid. Now, the only remaining cost per ton is the processing fee and miscellaneous expenses of 30 yuan.
16.1 * 30 = 483 yuan.
2254-483=1771 yuan. This is the profit that the small factory on Tongzhou Street has generated for Lin Yuanshan in the past 13 days.
Now, with the addition of Hongfa Factory on Hongyun Street, and the addition of Uncle Xu as a key figure, the company has grown significantly.
Lin Yuanshan estimates that production capacity will increase by at least four times.
During the period of consuming hundreds of tons of waste materials in stock, Far East Plastics' monthly profit was conservatively HK$1.6.
Qiaoxin Bank isn't stupid; could they lend money to Lin Yuanshan to buy machines?
There's no need for Chen Laoji or Lin Jingtang, who lives in seclusion on the hillside of Victoria Peak; Lin Shaochao alone can settle this matter.
All the machines transported to Hongfa were imported, and Lin Yuanshan personally oversaw their transportation.
The laborers brought by Shen Da Hui and Hong Shun also worked very hard. A group of people shouted slogans and used primitive tools to carefully move the first two machines into the factory.
Busy until noon, Little Rabbit brought Iron Head over to deliver lunch.
Lin Yuanshan didn't do anything special. He was just like everyone else, with a metal lunchbox and a pair of bamboo chopsticks, casually finding a shady spot to eat his food heartily.
Shen Da Hui, with a towel draped around his neck to wipe his sweat, walked over and squatted down next to Lin Yuanshan.
While eating, he asked, "Mr. Lin, I just took a tour of the factory."
I discovered an alley behind the southwest corner of the factory wall, and a drainage ditch behind the alley.
How about this, my team members and I will break down that wall, find some bamboo poles and asphalt to build a shed, and set up a stove to serve as a kitchen, so that Little Rabbit won't have to run back and forth every time she needs to cook?
The little rabbit's eyes lit up; this was a great idea.
The small factory on Tongzhou Street had no space at all, so during this time she was staying with the neighbors in Wai Zai's house, borrowing a place to cook for them.
Although when Shen Da Hui took her to borrow a place, he simply asked, "Uncle, what do you disagree with?" and the other party smiled and nodded.
But Little Rabbit always felt that Brother Hui's tone back then seemed to have a threatening element to it.
Lin Yuanshan ate quickly, shoveling the last bite into his mouth. He then got up and put the lunchbox and chopsticks back into the plastic basin: "You can set up a kitchen, but don't tear down the walls."
Previously, when applying for a factory registration certificate, the Trade and Industry Department sent people down to review the small factory on Tung Chau Street.
This Hongfa factory is no exception. It was illegally constructed as soon as it was taken over, and we'll have to deal with the mess again.
Therefore, the southwest corner was chosen as the location.
Do not build a shed; the kitchen is a critical area, and safety should be the top priority.
Go ask any of the brothers in the gang if they've ever been bricklayers.
Then take him to Ah Rong, get some money, buy some firebricks and cement, and build a decent stove, remembering to ensure proper ventilation and drainage.
Iron Head, who had been listening intently, couldn't help but say, "Young Master Yuan, that would take up at least 100 square feet..."
Lin Yuanshan waved his hand, interrupting Tie Tou: "It's alright, making sure the workers have a hot meal is more important than anything else."
Besides, this factory is only temporary.
After saying that, Lin Yuanshan opened two packs of cigarettes. Although they were the cheapest Lucky Strike cigarettes, he gave one to everyone present, except for Xiao Tu, even the laborers who were associated with Hong Shun and the Blue Lantern.
Ruffled the rabbit's head, Lin Yuanshan put on his coat and walked toward the factory gate, with Tie Tou quickly following behind.
Others have a one-hour lunch break.
But Mr. Lin, as the boss, had no rest.
Before Xu Neng stepped down, Lin Yuanshan had to go to the Shek Kip Mei branch to settle the payment for the 16.1 tons of secondary rubber flowers.
Tie Tou pulled his rickshaw, braving the sun, and hurried toward the Shek Kip Mei branch factory.
Lin Yuanshan sat in the back of the truck, holding a fountain pen in his right hand, writing and drawing in a small notebook.
In this day and age, there's no such thing as bank transfers. You just make a phone call and the money is transferred to your account with a ding.
The goods need to be escorted to the other side. After arriving at the other side, we have to wait for them to arrange for people to unload and inspect the goods before they are put into storage and signed off.
Then, the finance departments of both parties will coordinate and settle the payments.
In Hong Kong during the 60s, there were three main types of settlement methods for doing business: bank terms, fixed-amount terms, and credit terms.
The first type is monthly settlement: on the last day of each calendar month, the full amount for the month is settled. For buyers with a solid credit history, the seller may extend the payment period to a maximum of 45 days.
The second type is a 60-90 day settlement period, which is also known in the industry as a three-month settlement.
The third type is credit or advance payment, which takes longer. It's usually used when foreign buyers place orders for export, typically for 90 days to six months.
The plastic flowers exported by Yellow River Plastics follow this rule, relying entirely on advance financing for turnover.
Lin Yuanshan's initial capital came entirely from loans. He was in a hurry to get his money back for cash flow, so he took advantage of Xu Neng's power to quickly settle his accounts, which was a special case among monthly settlements.
At this time, news of Xu Neng's resignation and his impending joining Yuanshan Plastics had already spread within Huanghe Plastics.
Therefore, when Xu came to work at the Shek Kip Mei branch today, he easily noticed the strange looks he was getting from the people around him.
At this age, in this position.
Instead of staying put and enjoying the shade under the big tree of Yellow River Plastics, he actually went and hung out with some greenhorn.
Xu Neng didn't need to ask; he knew that everyone would definitely think he was crazy.
Because they had been notified in advance, Xu Neng took Lin Yuanshan and Tie Tou to the finance office as soon as they arrived.
Upon hearing their purpose, the finance manager's smile froze. The warehouse had checked Lin Yuanshan's shipment and confirmed that there were no problems.
Even if we calculate based on the calendar month, there's still a week left until the end of the month.
On one hand, there was the outgoing factory manager, and on the other hand, there were the unspoken rules regarding payment settlement. The finance manager was in a dilemma, his expression showing great entanglement.
Xu Neng pointed to the receiver: "Is it difficult to handle? Why don't you call General Affairs Zhou and ask for his opinion?"
"No! No need." The finance manager shook his head repeatedly, but added, "Director Xu, could you please sign the approval form for this payment as well?"
"Okay." Xu Neng signed his name on the form without hesitation.