Becoming Rich with Daily Scavenging APP-Chapter 556: Fresh Miracle

"Yonghui’s main focus is on fresh produce, but fresh produce is a business that can easily incur substantial losses if the supply chain is not strictly controlled.

So the profit margin for fresh produce fluctuates greatly, and if you want to ensure high profits, you can only make adjustments on the product itself.

For instance, although grapes are the same, grapes from some places are of good quality and expensive, while others are average in quality and cheap when bought in bulk.

So to ensure profits, Yonghui chooses to sell low-quality fresh produce at high prices to avoid the unstable profit factors brought by fresh produce losses.

Although many customers aren’t sensitive to the quality of fresh produce, doing this long-term will eventually be noticed.

Once even the reputation of their main fresh produce line starts to deteriorate, it’s natural for Yonghui’s revenue to continuously plummet."

After listening to Yu Laidong’s brief introduction to Yonghui, Chen Yiyang understood Yonghui’s current problems.

Actually, solving these issues is quite simple.

One way is to significantly increase employee wages and benefits, and provide employee training.

The other is to strictly control quality management, prioritizing quality over profit.

Of course, everything in the world is easier said than done.

Doing this might allow Yonghui to rise again. But the first to be compromised would be the interests of the shareholders behind the scenes.

After all, reputation requires long-term cultivation and profit sharing, and during this long process, all shareholders and management have to patiently bear the loss of profits.

According to the current trend among wealthy individuals, they prefer to make a quick buck and then leave, rather than having such long-term plans.

But Chen Yiyang does.

After hearing Yu Laidong’s analysis of Yonghui’s problems, Chen Yiyang decided to buy Yonghui and then proceed to restructure Yonghui.

Of course, this restructuring requires professionals.

Chen Yiyang said to Yu Laidong, "If I buy Yonghui’s shares, can Shoudonglai send people to help restructure Yonghui?"

"No problem, but we don’t have many people, so we can only help you restructure a few local stores close to Shoudonglai."

"That works." Chen Yiyang nodded.

Once some stores benefit from the restructuring, Chen Yiyang can then push for the majority of the stores to undergo restructuring.

After chatting with Yu Laidong, Chen Yiyang then scheduled a meeting with Zhang Xuansong.

Because of the significant decline in Yonghui’s profits and stock price, Zhang Xuansong, who was troubled by this, immediately showed enthusiasm upon hearing of Chen Yiyang’s visit.

However, Chen Yiyang was not there to invest; he planned to directly purchase enough shares from Zhang Xuansong and other Yonghui shareholders to become the largest shareholder and take control of Yonghui.

"I have no objections to this." Zhang Xuansong thought for a moment and replied, "Currently, Yonghui’s board has five members, and we can give you three seats, with Yonghui retaining two seats."

"That’s acceptable." Chen Yiyang nodded. 𝒇𝓻𝓮𝓮𝙬𝙚𝒃𝒏𝓸𝙫𝒆𝙡.𝓬𝓸𝒎

His main reason for acquiring Yonghui was for the sake of flash purchases, so he could appropriately make some concessions for Yonghui.

Similarly, Chen Yiyang told Zhang Xuansong about inviting Shoudonglai to help remodel Yonghui.

"Actually, I had this idea a long time ago, but I don’t have much rapport with Yu Laidong,"

Zhang Xuansong said happily upon hearing Chen Yiyang’s words, "Since it’s already discussed, let the Shoudonglai people come over to help remodel in due time."

"Won’t you wait until I’ve completed the share purchase?" Chen Yiyang felt a flash of doubt.

"Hahaha, given President Chen’s reputation for investing in Yonghui, we couldn’t be more eager to have you on board; how could we possibly back out?

But waiting for President Chen to complete the share purchase before inviting the Shoudonglai people to assist in the restructuring would be too slow.

President Chen also surely hopes for Yonghui to improve sooner, ideally seeing Yonghui turning from loss to profit right after completing the acquisition, doesn’t he?"

Since Zhang Xuansong said so, Chen Yiyang didn’t have much else to say and nodded in agreement.

After returning to Lin’an, Chen Yiyang communicated with Yu Laidong about Shoudonglai helping Yonghui’s restructuring.

Once all the details were negotiated, he began arranging the acquisition of Yonghui.

Yonghui had gone through three rounds of financing during its development, so there were many shareholders behind it.

After connecting with a group of shareholders through Zhang Xuansong, Chen Yiyang embarked on a tough road of negotiations.

This was when the downside of Chen Yiyang’s reputation as an investment genius became apparent.

All Yonghui’s shareholders were all for Chen Yiyang investing in Yonghui. However, if even the investment genius Chen Yiyang favored Yonghui, wouldn’t this mean that Yonghui’s future market value would increase?

If so, selling Yonghui shares now would seem like a loss.

So these shareholders either demanded high prices or weren’t willing to sell, hoping Chen Yiyang could buy shares from others.

Busy for almost a month, Chen Yiyang managed to acquire only the 5% stake transferred to him by Tengxu.

However, during this time, the restructuring by Shoudonglai for Yonghui was quite successful.

Shoudonglai made significant changes to Yonghui’s fresh produce selection and product quality control.

They also helped Yonghui establish Yonghui Preferred.

With Shoudonglai’s involvement, the sales of the restructured stores immediately increased.

Given this beneficial situation, even Yonghui’s market value increased significantly.

Chen Yiyang somewhat regretted inviting Shoudonglai to help restructure Yonghui.

Due to this restructuring, the originally over fifty billion cash that could get him nearly 30% of Yonghui’s shares would probably now need to rise to sixty billion.

But with Yonghui’s rising market value, some shareholders who held a pessimistic view of Yonghui’s future were deciding to cash out, selling their shares to take advantage of the market value rebound.

As a result, Chen Yiyang’s negotiation progress unexpectedly sped up quite a lot.

"President Chen."

One day, Yu Laidong called Chen Yiyang and said, "Xuchang is hosting an event for the Huaxia Supermarket Week, inviting many executives from large chain supermarkets over. Since President Chen is about to acquire Yonghui, why not come over and meet your peers?"

"Alright." Chen Yiyang nodded.

He wanted to attend this event not just because he was about to buy Yonghui, but because his flash purchase project required a lot of cooperation from chain supermarkets to offer discounts.

Meeting the bosses of these chain supermarkets would be nothing but beneficial.

Upon arriving in Xuchang, with Yu Laidong’s help, Chen Yiyang met quite a few people.

The event was held in the evening, with a banquet beforehand.

"President Chen, can we get acquainted?"

A middle-aged man about forty years old walked over.

"And you are?"

"My name is Wang Wei," this person introduced himself, "I currently run a fresh produce chain supermarket."

"Nice to meet you." Chen Yiyang shook hands with him.

Another fresh produce operator.

"What’s your store’s name?" Chen Yiyang wasn’t familiar with the name Wang Wei.

Before coming, he had reviewed profiles of many large chain supermarket executives.

But there was no Wang Wei among them.

"My store is called Fresh Produce Miracle, and we’re a fresh produce chain supermarket that started a few years ago, operating mainly in Hefei."