Chapter 58: Only When Money Is Needed Does One Regret Its Scarcity

As they walked out of the company, Lu Yu and Deng Qiang lingered at the rear, keeping a slight distance from the others. Lu Yu inquired about the current state of the company’s finances:

“For the entirety of June, our three sales events brought in a total revenue of 3.882 billion yuan, an increase of 816 million over May.”

“But throughout June, we didn’t expand the production line, so the projected revenue for July should be about the same, with only minimal growth.”

“Also, as June ends, we’re preparing to pay taxes over the next few days. Currently, there’s not much liquid cash available.”

Hearing about the impending tax payment, Lu Yu grimaced with a pang of regret. Yet there was no way around it; taxes had to be paid—both an obligation and a responsibility.

He was running a sole proprietorship now and already paid significantly less in corporate tax. What more could he ask for? Thirty-five percent personal income tax and seventeen percent value-added tax, and although much could be deducted through costs, there was still a hefty sum to pay.

He sighed and said to Deng Qiang, “I was hoping to quickly set up a materials research department, but it looks like I’ll have to wait.”

Deng Qiang was curious, “Materials research? Basic materials or new materials?”

Lu Yu nodded, “Both.”

Deng Qiang inhaled sharply, “Lu, this really needs to be taken slowly.”

“Last time, setting up the biopharmaceutical lab took up a lot of funds, and more might need to be invested in the future.”

“Besides, materials research—basic materials are thankless, and new materials are difficult. Either way, it requires massive investment.”

“The company’s financial priority is still expanding our raw material supply, and especially establishing more of our own cultivation bases.”

“We’re planning to enter the overseas market next year, so we’ll have to invest in both raw materials and production lines. There’s no way we can allocate so much for materials R&D right now.”

Lu Yu listened and nodded helplessly, “Don’t worry, I won’t arbitrarily use company funds.”

“Stick to your established plan. Don’t let it be disrupted. So you’re preparing to enter the overseas market next year?”

Deng Qiang replied, “That’s the current plan. We haven’t promoted ourselves abroad, and the big international cosmetics corporations spend heavily to suppress news of our products. Not many overseas consumers know about us.”

“So we’ve decided to venture out ourselves. Recently, these giants have been aggressively promoting in the domestic market—advertising and discounts everywhere.”

“We can’t just compete with them here; we need to bring the competition to their turf.”

“To bring a blessing to female consumers overseas is our unshirkable duty.”

Lu Yu laughed, “Well, as long as you have a plan. But what about the domestic market?”

“We can’t meet domestic demand as it is. Don’t stir up controversy—online critics are unreasonable these days.”

Deng Qiang replied, “Our focus for the second half of the year is expanding production lines and raw material supply, and establishing more cultivation bases to maximize output. It’ll be much better than now.”

“As for controversy, once consumers see our pricing, I doubt there’ll be any complaints.”

“We sell cheaply domestically to look after local consumers, but we can’t let that stop us from earning big abroad.”

Lu Yu asked, “What price are you planning for overseas?”

Deng Qiang chuckled modestly, “Not expensive. Just convert the unit price to US dollars. Pretty fair, really.”

Lu Yu was speechless—fair, really? He wanted to ask on behalf of foreign female consumers, “Does your conscience not hurt?”

But he appreciated this shamelessness and thick-skinned approach.

He thought for a moment and asked, “With that price, will sales be good?”

Deng Qiang replied, “Even if sales are great, we won’t be able to allocate much output to the overseas market.”

“Our focus remains domestic. Overseas, we’ll go high-end.”

“Those giants have monopolized our domestic market and profited for years. It’s time we went high-end and earned some ourselves.”

“Reciprocity is a traditional virtue, after all.”

Lu Yu smiled, “Good, keep up the hard work. I’m looking forward to your performance.”

Deng Qiang asked, “Lu, can we develop some new products?”

Lu Yu replied, “Such as?”

Deng Qiang said, “Our products cover hydration and whitening, and face masks and shower gels are widely used, as well as moisturizing creams. It’s hard to branch out into other categories.”

“I just wondered if there are other effects—like anti-wrinkle or wrinkle removal.”

Lu Yu stopped, turning to stare intensely at Deng Qiang, his mind rapidly considering methods and technologies for anti-wrinkle solutions, but he didn’t speak immediately.

Seeing Lu Yu’s expression, Deng Qiang was startled but realized he was deep in thought and didn’t interrupt.

Lu Yu pondered many methods and technologies, but with his current abilities, few could be realized.

Without verification, he couldn’t be sure any would be effective.

Yet there was one technology he was certain he could produce—considered a new material, inspired by materials science books and elementary technology files he’d recently studied.

Looking at Deng Qiang, Lu Yu said, “I wouldn’t have thought of it if you hadn’t mentioned it.”

“Suppose we sell a product similar to a face mask—apply it to the skin, peel it off after a while, and it tightens the skin, erasing wrinkles.”

“Or make it latex-like, apply it, let it dry, then peel it off for the same effect.”

“Do you think such a product would sell?”

Deng Qiang’s eyes lit up as Lu Yu spoke, excitement growing:

“It would sell fantastically! Absolutely, people would rush to buy it! Lu, you can really make such a product?”

Lu Yu frowned, “I can, but it’s a bit troublesome.”

“This is a new material, and producing it would be tricky.”

“There’s no ready-made production line; we’d need to buy a lot of equipment and modify it.”

Deng Qiang insisted, “What’s troublesome about it? Not troublesome at all—this is crucial for the company, Lu!”

“Just tell me what equipment you need and I’ll arrange it immediately.”

Lu Yu found Deng Qiang amusing, “Why are you so excited?”

“The company’s mine, the profits are mine, and I’m not as excited as you.”

Deng Qiang replied, “I get a year-end profit share, don’t I? 0.1%—not insignificant.”

Lu Yu laughed, “Alright, you have a point.”

“Speaking of bonuses, draft a year-end reward plan by position.”

“Annually, take 0.9% of total profits and set up a bonus pool.”

“Use it for incentive programs, as encouragement for your overseas expansion next year.”

“But make sure management understands—there won’t be a bonus this year, only next year. We can’t have pioneers get nothing in return.”

“Finish the incentive plan soon and show me. Make it reasonable, based on contribution, not just position.”

“Those opening the overseas market must earn more than those working domestically, and it must be tied to results—not average everyone out.”

Deng Qiang instantly realized this was a good thing.

Once word spread through the company, everyone would be eager for the overseas campaign.

0.9% of total profits might sound small, but considering Fen Bai Dai Hei Cosmetics’ revenue and profit margins—over 50% higher than outsiders estimate—it’s hardly insignificant.

With high prices abroad, profits would be even greater.

With the quality and efficacy of the company’s products, what’s there to fear about earning money?

They might count money until their fingers cramped!

So, 0.9% of total profits—hardly a small sum.

Lu Yu was generous enough; honestly, Fen Bai Dai Hei’s products were so competitive.

Similar products had virtually no real rivals; opening markets was far less arduous than for other companies.

Their cutting-edge technology left other hydration and whitening products far behind.

And soon, they’d add an anti-wrinkle solution.

Deng Qiang cheerfully saw Lu Yu off at the company entrance, then hurried back inside.

He needed to prepare for the upcoming anti-wrinkle product.

He would research and work with management to devise a fair incentive plan starting next year.

Chen Xiaofei and two others waited in the car for Lu Yu, noticing Deng Qiang’s conversation with him, guessing it was business-related, and refrained from interrupting.

After Lu Yu got in, the company sent out another car to help deliver goods.

Chen Xiaofei mentioned the address near Shu Yin University, then stepped on the gas and sped away.

Lu Yu sat in the passenger seat, still contemplating the anti-wrinkle product Deng Qiang had brought up, considering which equipment to modify for the production line.

He could make it in the lab, but mass production would be far more complex.

Not only would equipment need to be modified and production lines assembled, but costs had to be managed.

Crucially, new substances needed to be added—ideally herbal extracts—to obfuscate the formula and keep it secret.

So he’d have to return to the lab, experiment, and verify which materials wouldn’t affect the new material’s properties.

Fortunately, the old, rudimentary lab hadn’t been dealt with yet.

After this round of experiments, those instruments could be disposed of; there’d be no future use, nor would he renew the lease.

Lu Yu mused silently, not speaking. Chen Xiaofei noticed and asked,

“Did something happen at the company?”

Lu Yu glanced at him, “No, what could go wrong?”

Chen Xiaofei said, “You got in and didn’t say a word.”

Lu Yu replied, “I was thinking. I’ve been reading lately, and have gained some insights. I’m just pondering these ideas now, alright?”

Chen Xiaofei responded, “Alright, alright, you’re the genius, I’m just the underachiever. I dare not provoke you.”

Lu Yu retorted with a middle finger.