Big Data Cultivation

Private lending may not sound like a legitimate business, but the information channels these people have are truly impressive.

Just three days after the equipment from those two factories was sold, President Li helped Liu Menglong find another opportunity. A small private factory, using third-hand equipment, was planning to eliminate it.

Third-hand equipment... there really is such a concept. A state-owned factory once used it, then passed it on to a private company, which over ten years used it to create considerable wealth and then handed it down to the current owner. 𝒻𝘳ℯℯ𝑤ℯ𝒷𝘯ℴ𝓋ℯ𝘭.𝑐ℴ𝑚

Surprisingly, the equipment can still be used normally, proving that production equipment, like cars, is better maintained when privately owned than when public.

The owner originally had no plan to sell because the equipment was still usable. However, due to a labor shortage and tight manpower in recent years, he had to consider replacing a few pieces with more automated equipment, which meant selling the old equipment to raise funds.

However, with President Li’s involvement, the other party couldn’t sell it at a high price, totaling 1.3 million.

Liu Menglong felt that refurbishing was a hassle, so President Li volunteered... let me help you connect with someone.

The refurbishment cost is 200,000, and interest during refurbishment is not calculated within this—essentially, President Li fronts the money to buy the equipment.

Liu Menglong reported this to Sister Hong, and Sister Hong said you make the call yourself. If you don’t understand, I can introduce friends from the complete set bureau to you—they better understand equipment prices.

In short, Liu Menglong’s business was rapidly expanding. Since the first deal was made, he has bought over 80 million in equipment in the following month, most of them second-hand.

Then a problem arose; the equipment operation was quite troublesome. Sister Hong suggested, why don’t you rent a larger warehouse in Zhengyang? Equipment worth over a hundred thousand still requires us to make a special trip; it’s not appropriate.

Now the laborious task of fetching equipment falls to her—now in the Qi Refinement Realm, able to use flying artifacts and storage bags.

As for directly sending these to Luohua? That’s not feasible.

Liu Menglong was not very familiar with Zhengyang and didn’t know where to find a warehouse. President Li stated...

No need for him to say, Chief Lin directly called and said we have an abandoned warehouse in South Mountain, available for rent at a low price. The condition is... we have 200 million in funds here, with a monthly interest of 1.5%.

3% vs. 1.5%... twice the difference, leaving President Li no room to negotiate.

Furthermore, Beauty Lin expressed that she also had information on obsolete and second-hand equipment, able to mediate in between.

President Li couldn’t help but want to talk some small gossip, trying to gain a larger share.

However, Chief Lin was even better, directly throwing out two price lists—Liu Menglong had two purchases where he obviously overspent.

Though not tricked, in the market, this price wouldn’t fetch second-hand goods. Liu Menglong paid upfront for purchases, enjoying considerable discounts—those who buy second-hand goods usually don’t have money, mostly paying off debts slowly.

But aside from this, there is an insider price unknown even to the complete set bureau’s experts.

Yet Beauty Lin pointed out that in these two purchases, Liu Menglong overspent by over three million.

President Li was dumbfounded. He didn’t actually understand the pricing, merely inquired in the market, intimidate a bit, or bribed relevant people to get goods at low prices.

In the first of these two deals, he paid money, only to be quoted an outsider price; he felt a bit ashamed amidst his anger from being taken advantage of.

But Liu Menglong realized—competition between two companies indeed is better than relying on just one.

Now he has earned nearly ten million, but earnings can’t keep up with the pace of expansion, and for a considerable period, he still has to take loans. However, he decided not to stop using President Li just because of high-interest rates.

Because Liu Menglong himself was kicked out by a listed company and knows how helpless a small person is when facing trends, he didn’t want to be influenced by Chief Lin’s intentions. Paying a little extra interest to keep President Li on board was the main task.

In short, in these two months, Liu Menglong took only 35 days to become a millionaire, and in the following month, he acquired equipment worth as much as 3.7 billion.

In fact, if he wished, he could buy over 10 billion in equipment, but some pieces were not worth refurbishing—better to buy new ones. Moreover, some equipment was too advanced.

Eliminated equipment too advanced? That’s not contradictory at all, and after Sister Hong refused twice, Liu Menglong quickly discovered the cause and effect: equipment from the early founding of the country suffices, even... equipment from the Self-Strengthening Movement period is usable.

But equipment from the 1970s and 1980s... that’s more dangerous.

He actually worked on Feng Jun’s project before, and connecting the two, he understood exactly what Luohua needed.

Also, there is a reference point, which is the equipment ordered by Sister Hong. He was a wild path, seeking second-hand equipment all around, while Sister Hong as a regular army, had orderly orders for outdated equipment.

In two months, he has spent over four billion, gathered a few people besides President Li and Beauty Lin to help run the business, including two highly-paid experts.

On Sister Hong’s side, she has also spent over three billion, and together they’ve spent over eight billion.

Even with President Li’s boldness, he can’t help but secretly ask Liu Menglong, "Tell me, General Liu, how long do you think this venture can last? No matter how rich Luohua is, they can’t keep spending like this?"

"It’s an international aid project of Luohua’s," Liu Menglong had always used this excuse to brush it off, regardless of others’ belief, "we need not worry about funding."

"I know it’s an aid project," President Li responded with a smile, and by this point in the business, if he hasn’t figured out Luohua’s intentions, he might have backed out in shock —seen rag collectors, but not like this.

What he’s concerned about is, "Aid projects also have limits, right? Thirty billion, fifty billion... or a hundred billion? It can’t go on endlessly, can it?"

Liu Menglong was first stunned by his words, then fell silent for a while before speaking, "I’ll give Sister Hong a call."

At the beginning, he asked Feng Jun this question. Feng Jun said just keep collecting, so he never asked again. At this point, he actually felt a bit uneasy internally, but as he knew more about Feng Jun, he dared not ask again.

Seeing his unsettled demeanor, President Li roughly guessed what was happening, yet didn’t forget to remind him, "Ask in detail, the more precise the figure, the better."

Sister Hong answered the call promptly, stating straightforwardly, "Didn’t Elder Feng already tell you? Just keep collecting, as much as you can take—don’t worry about money."

"But surely there’s a limit, right?" Liu Menglong chuckled helplessly, "Sister Hong, could you give us at least an approximate amount, so we can have some idea?"

"Why worry about it? You’ll be notified when we stop collecting," Sister Hong thought he was overly concerned, but knowing Feng Jun cherished this relationship, she casually provided a number, "Under 30 billion, you don’t have to worry."

After hanging up, Liu Menglong looked a bit dazed, "Thirty... billion, beforehand?"

He instantly calculated his potential earnings, suggesting that he could earn roughly three billion by acquiring equipment worth 24 billion and selling it for 29 billion, factoring in various expenses.

"Thirty billion?" President Li murmured softly, rubbing his chin, "That’s not... much actually?"

Truth be told, without delving deep into Huaxia, it’s hard to fathom how vast a potential giant like Guojia holds; they’ve only been in the recycling business for two months, but their reputation in Funiu Province’s industrial manufacturing industry has already spread.

Many unheard-of companies proactively approached them to recommend second-hand equipment, allowing them to roughly evaluate the second-hand equipment market in Funiu Province.

The outdated equipment across all of Funiu, merely amounts to a hundred billion, most of which can still operate normally. However, a substantial portion is hit or miss, with intentional offers for sale, not merely a hundred billion worth, but certainly not less than 80 billion.

And this is just one province of Funiu; how many provinces are there in Huaxia? Three hundred billion... can’t even consume the backward production capacity of Funiu.

Of course, replacing all backward production capacities in Funiu isn’t possible either. People used outdated capacity to run operations well, with factories close to home, what reason to sell?

What Feng Jun is unsure of is exactly how much of this backward capacity should be retained, though maintaining some production capacity is necessary, as it can rapidly ramp up when emergencies arise.

Why was Mai Nation so formidable during World War II? Because they unleashed their production capacity, launching warships like dumplings, planes taking off like locusts. Before the war, Yamamoto weighed Mai Nation’s smokestacks, knowing Ni Hong was no match.

And at that time, Mai Nation’s production capacity had been purged several times by the Great Depression, leading to many business shutdowns.

Of course, business closures also have their merits, facilitating the rise of large groups and trusts, where efficient production further aids in rapid capacity surges.

Off on a tangent, President Li felt that 30 billion sounded like a lot but wasn’t that much either. With his and Liu Menglong’s capabilities, within half a year, monthly equipment procurement values would surely reach 1 billion.

So, how long can 30 billion support? Remember, there’s also Chief Lin’s group, watching closely.

On calculation, this project... can only last two years or so.

However, these two months, President Li has already enjoyed the benefits. As Luohua settles payments promptly, he only utilized equity less than 2 billion, generating nearly six million a month, with additional miscellaneous income, a total of eight to nine million.

His financing cost is only about 1.5% to 2% monthly interest, equivalent to about five million in profit per month.

Of course, that’s just him; Liu Menglong’s profit is even higher!

(Third Chapter update, summon monthly tickets.)