mtl008 Chapter 607 Traps Everywhere
Chapter 607 Traps Everywhere
After hanging up with Ma Laosan, Li Xiangyang didn't rest. He thought of the friends in the tech circle that Liu Wanshan had mentioned; perhaps this was a breakthrough.
"Old Liu, of those colleagues you just mentioned, are any of them based in Beijing?" Li Xiangyang asked.
Liu Wanshan thought for a moment: "There is one, Master Sun. He's a key technical worker at a state-owned factory in Beijing. He's very well-informed."
“Let’s start with him,” Li Xiangyang decided. “Give him a call and tell him we’d like to learn more about the industry.”
When the call connected, Mr. Sun was very enthusiastic upon hearing that it was Liu Wanshan. However, his tone changed noticeably when he heard that Li Xiangyang wanted to inquire about Wufu Trading.
"Old Liu, you guys need to be careful with this company," Master Sun said in a low voice. "They ripped off the electronics factory next door a while ago."
"How did you get scammed?" Liu Wanshan put the phone on speakerphone, so Li Xiangyang and Wang Ergou could hear him.
"First, they signed an exclusive agency agreement, saying they'd help them open up the national market," Master Sun sighed. "But after six months, not only did they not make a profit, they ended up with a mountain of debt. In the end, the factory was acquired by a Hong Kong businessman, and the original factory manager is still hiding from his creditors."
Li Xiangyang was startled. A Hong Kong businessman? This reminded him of something.
"Master Sun, what's the background of that Hong Kong businessman?" Li Xiangyang asked as he took the phone.
"I'm not entirely sure either, I've only heard it's a large operation that specializes in acquiring struggling factories," said Master Sun. "By the way, have you been targeted by Wufu Trading Group as well?"
"I suppose so," Li Xiangyang said, not denying it. "We're looking into the situation."
"Then you must be very careful," Master Sun warned repeatedly. "These people are very ruthless; they won't stop until they achieve their goals."
After hanging up the phone, silence fell over the office.
Wang Ergou spoke first: "Xiangyang, I have a feeling there's an even bigger fish behind this?"
“I think so too,” Li Xiangyang nodded. “Wufu Trading is just the front man; the real boss is probably someone else.”
As they were talking, the sound of a car came from the factory gate. Li Xiangyang walked to the window and saw that Ma Laosan's car was already parked at the gate.
"You're back so soon?" Wang Ergou was somewhat surprised.
"Looks like there's important news." Li Xiangyang went out to greet them.
As soon as they met, Ma Laosan said, "Xiangyang, this matter is more complicated than we thought."
"How to say?"
“I found two factories in the provincial capital that Wufu Trading had targeted,” Ma Laosan said, lighting a cigarette. “The situation is similar to what you just heard, but I’ve noticed a pattern.”
"What pattern?"
"These acquired factories all eventually ended up in the same group—Tianhua Industrial," Ma Laosan flicked his cigarette ash. "And the owner of Tianhua Industrial is said to have Hong Kong capital background."
Li Xiangyang frowned: "It seems this is a very large game."
“Not only that,” Ma Laosan continued, “I’ve also heard that this group is currently making a large-scale acquisition spree here, targeting promising private enterprises like yours.”
"Why would they do this?" Wang Ergou asked.
"What else could it be?" Ma Laosan sneered. "To acquire assets at low prices, then integrate resources, and finally monopolize the market."
Li Xiangyang paced back and forth in his office, his mind racing. After a while, he stopped, a glint of shrewdness flashing in his eyes.
"Since they want to play, then let's play along." Li Xiangyang's tone was calm, but there was a chill in his voice.
"What do you want to do?" Ma Laosan asked.
“First, we need to build a larger information network,” Li Xiangyang said. “It’s not just about understanding them, but also about uniting with other companies that might become targets.”
Ma Laosan's eyes lit up: "You mean, establish a business alliance?"
"Pretty much," Li Xiangyang nodded. "Sharing information and supporting each other. Aren't they trying to take us down one by one? Then let's stick together and keep warm."
That afternoon, Li Xiangyang began to take action. He first called Chen Zhiming and asked him to contact some private business owners in the provincial capital; then, through Ma Laosan's connections, he arranged to meet with several local factory managers.
That evening, Li Xiangyang booked a room at a guesthouse in the county town and invited seven or eight business leaders over for a chat.
"Everyone, I've invited you all here today to share some information with you." Li Xiangyang got straight to the point and explained the details of Wufu Trading Company.
After hearing this, the expressions of the people present all changed.
"Director Li, this tactic you're describing seems familiar," said a timber merchant. "A while ago, a company also approached me, saying they wanted to exclusively sell my products."
"What company?" Li Xiangyang asked quickly.
"I think it was called... Oriental Trading, yes, that's the name." The timber merchant thought for a moment, "At the time, I felt the terms were too good to be true, and I suspected something was wrong, so I didn't agree."
Another food processing business owner said, "I've encountered a similar situation. The other party said they wanted to invest in expanding production, but demanded a 51% controlling stake."
Li Xiangyang and Ma Laosan exchanged a glance. It seemed that Tianhua Industry's reach extended further than they had imagined.
“It seems everyone could become their target,” Li Xiangyang said. “So I propose that we establish an information-sharing mechanism, so that we can be informed promptly of any unusual developments.”
"That's a good idea," the food factory owner nodded, "but how exactly will it be implemented?"
"My idea is for us to meet regularly to exchange ideas," Li Xiangyang said. "If we encounter any questionable cooperation offers, we should first let everyone know and help analyze them."
"What if a good cooperation opportunity really comes along? Wouldn't we miss it?" someone asked.
“Truly good collaborations stand up to scrutiny,” Ma Laosan interjected. “Those with ridiculously good terms are almost always problematic.”
After two hours of discussion, everyone finally reached a consensus: to establish an informal entrepreneur exchange group, meeting regularly to share information and resources.
After the meeting, Li Xiangyang kept the timber boss and the food factory owner behind.
“Gentlemen, I’d like to speak with you privately,” Li Xiangyang said. “Could you provide some detailed information about the companies you’ve encountered?”
“Of course,” the timber merchant readily agreed. “I still have their business cards here.”
Li Xiangyang took the business card and looked at it carefully: Dongfang Trading Co., Ltd., Business Manager Zhao Ming.
You can't tell anything from a business card.
At this moment, the food factory owner also pulled a contract out of his bag: "This is a sample contract left by that investment company. Take a look."
Li Xiangyang took the contract, his brows furrowing more and more as he read it. On the surface, the terms seemed very favorable, but a closer look at the clauses revealed traps everywhere.
“Look at this clause,” Li Xiangyang said, pointing to Article 8 of the contract. “On the surface, it’s supposed to be technical support, but in reality, it’s about taking complete control of the production process.”
"And here too." Ma Laosan also noticed the problem. "Financial oversight power, in essence, is about controlling the flow of your funds."
The food factory owner slapped his forehead: "Luckily, I suspected something was wrong and didn't sign the contract. Otherwise, the factory wouldn't be mine now."