Chapter 120: Advance the Funds, Then Repurchase

"Boss Wu, after an hour of production testing, every stage has met the standards. The quantity is up to par, the quality is up to par, and the personnel are even more up to par!"

Time passed, and the test was soon completed. Factory Manager Pei, brimming with excitement, once again approached Wu Ya. He had been exhausted for the better part of the day, constantly moving around the three production lines, committing every detail to memory. Once everything was perfect, he ordered the machines to stop and hurried over to report to Wu Ya.

"Haha, one hundred and fifty finished products in an hour. It seems we aren't even at full capacity yet! Good, very good!" Wu Ya nodded, an uncontrollable smile spreading across his face.

Based on this actual progress, if they were running at full capacity, they should be able to produce at least fifty more units. Although there was no need to run at full capacity right now, it was still good to know where they stood.

"Hmm, at this rate of production, our textile line must keep up immediately. Otherwise, some people might really be tempted to look for a backup," Factory Manager Pei said suddenly, his smile fading as he spoke with a touch of sarcasm. Clearly, he was still dwelling on Wu Ya’s earlier remark.

"Hahaha, how did Factory Manager Pei become so petty? But you really do need to pay attention to the textile line. Otherwise, within two months, you might not be able to keep up with my pace!" Wu Ya laughed, but his tone was serious.

Two months. That was his own conservative estimate. According to his plan, he intended to push into the provincial capital in one month, allowing his Chensi brand to enter the provincial market alongside his own journey into university. By then, the output of his finished garments would necessarily have to reach a different level—a massive surge. If things went poorly, the production lines would have to run at full capacity. If the textile line couldn't keep up with his demand for raw materials, what then? He would inevitably have to find another textile factory elsewhere to supply him with fabric. Therefore, warning Factory Manager Pei now was a matter of top priority.

"Hmm, I’ve actually thought about that as well. But alas, our factory only has so much equipment. Wanting to expand? That’s harder than reaching the heavens! First, just submitting the report will drag on for months. Then there's the approval process, feasibility studies, verification, replies, and finally, project initiation, followed by the actual release of funds. You can’t complete that process in under a year or two!" Factory Manager Pei said with a bitter expression.

He knew all too well that he couldn't keep up with Wu Ya’s pace of development. The problem was that even if they planned ahead, they couldn't keep up. The rigidity of the system led to operational lag. There were too many procedures; if a single signature was missing, you wouldn't get a cent. This was one of the primary reasons—and perhaps the most significant one—why large state-owned and collective enterprises collapsed in batches after the market economy opened up.

Stagnation. They were being beaten black and blue by the agility of private enterprises. While others were already making money, they were still stuck writing feasibility reports. Business opportunities were fleeting; there was no time to discuss them. And so, they went bankrupt. This was the crux of Factory Manager Pei's frustration. He had a golden opportunity to let Chensi expand in leaps and bounds, yet he was powerless, forced to watch from the sidelines. It was easy to imagine how stifling that felt.

"I see..." Wu Ya fell into deep thought after hearing this. He knew that collective enterprises lacked flexibility, but that was something he only knew from his previous life after he had become an adult, and he had only heard about it without experiencing it firsthand. By the time he had achieved some success in his own business, the state-owned and collective enterprises had mostly collapsed. He had only ever dealt with private companies. Seeing Factory Manager Pei’s predicament, he finally realized just how rigid collective enterprises were in this era—to the point where they couldn't even grasp opportunities when they presented themselves.

However, to him, this was yet another opportunity.

"Factory Manager Pei, I think we need to sign another agreement!"

"Another agreement?" Factory Manager Pei froze, looking at Wu Ya in confusion. Was there nothing better to do all day than sign agreements? They had just signed a bonus agreement, and now this? "Boss Wu, you must have nothing better to do. Are you raising eggs in here?"

"Tell me, what are you up to now?" In the end, Factory Manager Pei couldn't suppress his curiosity. This kid always had unexpected ideas that made him, a manager for half his life, feel inferior. If he wanted to sign an agreement, it certainly wouldn't be for nothing. Perhaps he had found a way to get rich from the previous topic again!

Sure enough.

"Haha, I have an idea! To enhance our cooperation and ensure it remains tight, I suggest that I invest in building a new textile workshop! We don't need to report this; our initial contracting agreement already grants us that authority. We only need to sign an agreement because of the similarity in business and the ownership of the equipment; we need to make a clear distinction!"

Wu Ya stopped there, looking at Factory Manager Pei to gauge his reaction.

"Heh, are you waiting for me to digest this, or are you checking to see if I understood? Kid, don't play coy! I know what authority the initial contract grants! Since you want to sign an agreement, you must have thought of terms not covered in the original contract! Come on, go on!"

Factory Manager Pei cut him off bluntly, which made Wu Ya blush slightly. But undeniably, dealing with a straightforward person like Pei was very refreshing. Once you said it, he understood. No need to waste words.

Wu Ya composed himself and continued: "Haha, ginger really is spicier when it's old! Factory Manager Pei, what I mean is that I will temporarily establish a textile workshop in my own name. This avoids the problem of you being unable to supply enough goods. During this time, you submit your report for business expansion. No matter how long it takes, as long as it gets approved, then..."

Before he could finish, he was interrupted again, this time by an unfriendly tone: "Then, I’ll directly buy out your workshop? And you’ll exchange the equipment you’ve been using for a few years for my cash? Right? Wu Ya, Boss Wu, your abacus is clicking a bit too loudly, isn't it? Is it made of Hetian jade?"

Factory Manager Pei was incensed. It was too shrewd—shrewd to the point of treating everyone else like a fool! You put up the capital to set up a textile workshop, then supply yourself, and call it 'ensuring Chensi’s supply' and 'deepening cooperation.' But in reality? Once his expansion report was approved, it meant the higher-ups would allocate funds. And then? Use brand-new government money to buy your used equipment? Bah! You’re dreaming! You make your money over the next few years, and then have Chensi buy your scrap metal? Do you think I'm brain-dead?

Factory Manager Pei even felt insulted, as if Wu Ya were trampling on his intelligence.

"Factory Manager Pei, don't be so hasty!" Wu Ya realized immediately that Pei had misunderstood. He thought Wu Ya was playing a double-cross: putting up capital to profit first, then selling the equipment to profit again! He quickly waved his hands, his expression turning sincere.

"Factory Manager Pei, my specific idea isn't as simple as that! Why sign an agreement? Why clearly divide the ownership of the equipment? It’s to ensure that our future cooperation can achieve a win-win situation without any entanglements! And it’s so that after the report is approved, the acquisition of my equipment can be logical and above-board! It ensures you won't make any mistakes while creating more revenue for the factory!"

"Oh?"

Hearing this, Factory Manager Pei became interested. What was he worried about? First, the factory’s interests being harmed—he couldn't use public money to buy old equipment in a few years. Second, that the whole thing wouldn't be above-board, making it a violation or even illegal. But if someone put up their own money to supply themselves, and then he used public funds to buy the equipment years later, it would surely look suspicious. If someone reported it, he would face jail time. But according to this kid, the situation seemed different. Signing an agreement was meant to prevent that? To make the purchase of his old equipment logical years later? That was a fresh idea!

"Then give me the details, hurry up!" Factory Manager Pei urged, his impatience growing.

Wu Ya smiled. "Factory Manager Pei, the agreement I want to sign with you isn't just about me building the textile workshop! It also stipulates that until your expansion report is approved, this workshop will operate under the same contracting method as you currently use! During this time, all profits related to this workshop will belong to your factory! The only condition is that once the report is approved, you must purchase it!"

Contract the profits first, then buy the equipment? Factory Manager Pei couldn't quite process it at first. This was the exact opposite of what he had thought! Originally, he thought Wu Ya would put up the capital and profit, while Chensi would be left to foot the bill. Now, it was Wu Ya putting up the capital, and Chensi profiting! And in the end, Chensi would still be the one to pay, but the logic was entirely different!

Since you want to profit, you must pay—that was an eternal truth. And having someone else buy equipment through a contract, then buying it back with your own funds—what was wrong with that? Nothing! It was equivalent to Wu Ya providing the capital, and they were essentially reimbursing him! The interest was simply the contracting fee. Because no matter how many years passed, the profits created by the equipment wouldn't flow out—they would all go into the factory's account. In a sense, the equipment would belong to Chensi all along. It wasn't just reasonable; it was legal!

"Hahaha, wonderful! Wu Ya, you young people really do have fast brains! I am truly impressed, truly impressed! You’ve opened my eyes once again!" Realizing the key, Factory Manager Pei couldn't help but laugh loudly, looking at Wu Ya with excitement and admiration.

If this was accomplished, it wouldn't just increase the factory's revenue; it would be a further demonstration of his own capabilities. How could he not admire Wu Ya? In just half a month, he had made several 'impossible' things happen! He had dragged a factory that had stopped production into full-capacity operation. The evaluation from his superiors would undoubtedly be stellar.

"Haha, you flatter me, Factory Manager Pei! This was just a flash of inspiration. It still required your permission to confirm it was right!" Wu Ya replied modestly.

Putting up capital to operate was actually quite common in the future; he had just slightly modified it. He would contract it to them rather than fronting the entire cost himself. He couldn't just throw money away to let them make a profit for nothing. Charging a certain contracting fee was a win-win. It minimized his own investment and gave Factory Manager Pei a perfect excuse for his report. In this era of rigid thinking, if he didn't take a fee, he might be suspected of having ulterior motives. But by charging a fee, it became reasonable, greatly increasing the success rate, and adding a significant achievement to Factory Manager Pei's record!

"Then shall we go to the office and discuss the contract?" Factory Manager Pei was too excited to wait. He waved his hand and strode out.

"Let’s go, let's talk about the contract!" Wu Ya followed closely behind without hesitation.

Front the capital, then buy it back. A sudden, spur-of-the-moment idea had easily gained Factory Manager Pei's approval. This was perfect! It not only reduced his own expenses but also guaranteed his raw material supply. After all, keeping raw materials in his own hands was the best way to avoid risk and was the key to his strategic layout! When the rear was stable, the front could be calm. When his sales volume reached the national top ten, his output would inevitably reach a staggering number. If the raw material supply failed then, his entire layout would fall into chaos. The losses? They wouldn't even be calculable in terms of money!