Chapter 80: A Small Investment, Enormous Returns
"Mr. Lau, I completely agree with your perspective. Conventional wisdom says that North America—especially Canada and the United States—has such widespread air-conditioning that demand for electric fans should be limited. But I don't believe that's entirely true.
"You personally experienced the 1973 global oil crisis while studying overseas. I'm sure that period left a lasting impression on you, didn't it?" Lin Haoran asked with a smile.
Lau Luen-hung nodded slightly.
"That's right. I was studying in Canada at the time. The oil crisis left an unforgettable impression on me. It changed many things."
Lin Haoran continued,
"Now, Iran is becoming increasingly unstable, with the threat of civil war looming over the country. If a full-scale conflict breaks out, history may very well repeat itself with another oil crisis.
"At the same time, Aimeigao's steadily increasing North American orders over the past six months clearly demonstrate the tremendous potential of that market.
"If another oil crisis really occurs, energy shortages will become a reality. Demand for energy-efficient appliances—especially electric fans—will inevitably surge.
"In that situation, operating out of a small workshop simply won't be enough to seize the exploding market demand. It will only limit your earning potential."
In reality, a small number of people in the international community had already begun worrying about such a possibility. However, since Iran had not yet reduced its oil exports, there was no immediate crisis, and such concerns remained nothing more than speculation.
But Lin Haoran knew better.
He knew with absolute certainty that the Second Oil Crisis would indeed arrive.
After all...
He had come from the future.
"Mr. Lin, I didn't expect our thoughts to align so perfectly. It's truly an honor," Lau Luen-hung said, his eyes lighting up.
Not only was this recognition of Lin Haoran's insight, but it also meant they shared the same outlook on the future of the North American market.
Lin Haoran smiled and continued,
"Mr. Lau, I'd like to share another personal opinion.
"Consumers in North America—especially those in Canada and the United States—are generally wealthier and place greater importance on quality of life.
"So even if demand for fans is high, customers won't simply buy any fan. They'll prefer products that are not only practical but also beautifully designed.
"I believe fan designs should break away from traditional appearances. For example, incorporating vintage styling to create products with a nostalgic aesthetic could make them truly stand out in the market and become highly sought after by consumers."
In truth, this was exactly the strategy Lau Luen-hung would adopt in the future.
Within only two years, that approach would earn him well over a hundred million Hong Kong dollars.
Lin Haoran deliberately brought it up now simply to make Lau feel that their business philosophies were perfectly aligned.
Just as Lin Haoran had expected, Lau Luen-hung was overwhelmed with excitement.
These ideas perfectly matched his own personal preferences.
Even back when he worked at his family's fan factory, he had repeatedly envisioned incorporating vintage designs into electric fans.
Unfortunately, neither his father nor the family elders had ever supported the idea.
After starting his own business, however, he was burdened with debt. Considering the company's current stage of development and the risks involved, he had never dared implement such a bold redesign.
Although the factory was steadily growing, it still wasn't strong enough to support a complete overhaul of its product designs.
Nevertheless, he had long planned that once the factory became larger, he would introduce vintage styling into his fan designs, allowing them to stand apart from competitors and gain a stronger market advantage.
"Mr. Lin, your idea is absolutely brilliant! I completely agree with your vision!"
Lau Luen-hung became even more eager to cooperate with Lin Haoran.
Ever since disagreeing with his father and deciding to build his own business, he had been determined to prove himself.
He wanted to carve out his own place in the business world and demonstrate to his family that his decision had been the right one.
But time had flown by.
More than half a year had passed.
Although the factory's orders continued to increase and business was booming—so much so that they could barely keep up—Lau still felt anxious.
The company's growth was nowhere near the pace he had envisioned.
The startup capital he and his friend had used was almost entirely borrowed.
Only recently had they finally repaid all their debts, leaving them practically penniless again.
He understood that if he truly wanted to realize his ambitions, expanding production and increasing competitiveness were absolutely essential.
But under the current circumstances...
How long would it take before he could actually expand?
The number of orders he received had already exceeded what the factory could handle.
Aimeigao was simply too small.
They had started from almost nothing, and expansion couldn't happen overnight.
So every time he was forced to reject profitable orders due to insufficient capacity, all he could do was sigh helplessly.
The money was right in front of him—
Yet he had no choice but to let it slip away.
As for his father, he was still unhappy with his decision.
Even after more than half a year, the two remained locked in a cold war.
Lau occasionally kept in touch only with his mother.
Of course, asking his father for help would immediately solve his financial problems.
But Lau's pride wouldn't allow it.
He had sworn to succeed through his own efforts.
That determination prevented him from relying on his family.
Lin Haoran's appearance was like a ray of light piercing through the darkness before him.
Their shared business philosophy gave Liu tremendous confidence.
He knew this wasn't merely finding a business partner.
It was an opportunity to realize his dreams and accelerate his company's growth.
Without hesitation, he decided that he absolutely had to seize this chance.
It would become the turning point of his career, allowing him to rise much faster and finally prove his abilities to his family.
As for his current partner...
Since their visions no longer aligned, then parting ways was inevitable.
Lau was grateful that his friend had stood beside him when he first started his business.
But if his partner refused to adapt, there was nothing he could do.
He would always choose the path that aligned with his own convictions—
The path of faster growth.
"It seems we've had a very enjoyable conversation," Lin Haoran said with a smile.
"In that case, Mr. Lau, how do you propose we work together?"
Lau Luen-hung thought for a moment before answering.
"Mr. Lin, after careful consideration, I believe there are two possible approaches.
"First, you could directly purchase my partner Mr. Liang Yingwei's shares.
"Second, I could sell my own shares in Aimeigao to Mr. Liang, and then you and I could establish an entirely new company together.
"At present, Aimeigao is owned equally between Mr. Liang and myself, with each holding fifty percent.
"Mr. Lin, which option do you think would be better?"
After pondering briefly, Lin Haoran asked,
"If I buy Mr. Liang's shares, how much capital would I need to prepare?"
Lau Luen-hung thought for a moment.
"Two hundred thousand Hong Kong dollars.
"If you offer HK$200,000, I believe my friend will agree."
When Aimeigao was founded, their investment had actually been quite small.
Given the company's current size, its actual value meant that HK$100,000 would probably be enough to purchase half the business.
However, Lau Luen-hung knew his friend would never accept such a price.
That would ignore all of Liang Yingwei's hard work and support throughout the startup process.
But if the offer doubled to HK$200,000...
Liang would almost certainly agree.
That would also allow Lau Luen-hung to repay, in some measure, his friend's loyalty and support.
"Two hundred thousand?"
Lin Haoran nodded.
"That's acceptable. I'll purchase Mr. Liang's shares in Aimeigao for HK$200,000.
"But if we're going to significantly expand production, how much additional investment do you think will be required?
"And after I make that investment, how should our ownership shares be divided?"
After all, if he continued injecting capital, the equity couldn't possibly remain unchanged.
He wasn't running a charity.
Lau Luen-hung pondered for a moment before replying sincerely,
"Mr. Lin, the company's immediate expansion needs mainly involve relocating to a much larger factory and hiring additional workers.
"I believe an investment of between one and two million Hong Kong dollars would be sufficient to meet our current expansion needs.
"That level of funding should allow our order volume to increase by more than tenfold.
"And if market demand continues to improve, we can further expand production accordingly.
"As for our post-investment ownership structure..."
He hesitated slightly.
"I have one request.
"If possible, I'd like half of the expansion capital you invest to be treated as a personal loan to me.
"This way, the company still receives the funds it needs while maintaining a relatively balanced ownership structure between the two of us.
"I also promise that once I've accumulated enough capital, I'll repay the loan as quickly as possible.
"I hope our partnership can be built upon mutual trust and shared success."
His proposal demonstrated not only his confidence in the company's future but also his respect for everyone's interests.
More importantly...
He had no intention of letting his own shareholding be heavily diluted.
Otherwise, partnering with Lin Haoran would lose much of its meaning.
Originally, Lau Luen-hung had expected Lin Haoran to reject the idea.
After all, few investors were ever satisfied when it came to profit.
Besides, if Lau Luen-hung failed to repay the loan, Lin would be assuming considerable risk.
To Lau's surprise...
Lin Haoran agreed without the slightest hesitation.
"Very well."
"I accept your proposal."
Lin answered immediately.
To him, an investment totaling HK$2.2 million was far below what he had expected.
In fact...
It was almost insignificant.
He quietly calculated in his heart.
If HK$2.2 million could become several hundred million Hong Kong dollars within just two years...
It would undoubtedly be one of the best investments imaginable—
A tiny investment with enormous returns.
Even if it ultimately failed to generate several hundred million...
Earning over one hundred million Hong Kong dollars was virtually guaranteed.
After all, Lin Haoran knew Lau Luen-hung's future entrepreneurial success from his previous life.
He had absolute confidence in him.
"Mr. Lin, then it's settled."
Lau Luen-hung's excitement was unmistakable.
"When I get back tonight, I'll immediately speak with Mr. Liang.
"I'm certain he'll agree to sell his shares for HK$200,000.
"Once we've finalized everything, we can sign the contract as early as tomorrow."
At this moment, Lau couldn't wait to make everything official.
He desperately wanted Aimeigao to enter a period of explosive growth.
He had endured the company's slow and exhausting pace long enough.
Now...
He wanted to see it soar.
(End of Chapter)
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