"Brother Feng, our supermarket's rapid expansion period is over. Now, we are expanding to the third-tier cities and below. Our expenditure had decreased, and we will have a large surplus soon." Fu Guangwei said happily.
After investing for so long, they can finally see their dividends.
Although there were dividends in the past, it was very small. This was because Tai Hua Supermarket was expanding too fast. Also, the supermarkets were not renting space. They had to buy or build their own space. The cost was much higher.
In the long run, it was worth it to buy or build their own space. But it would put a lot of pressure on the supermarket's funds.
Luckily, they had enough loans from the banks. Even without Tai Hua Supermarket Corporation, they could still get a large amount of loans with their name.
That's why Tai Hua Supermarket Corporation had been in high debt for so many years. But no banks were worried that they could not repay their loans.
Tai Hua Supermarket Corporation was a big corporation, and the shareholders were all tycoons. Who would dare to renege on their loans? In fact, any one of them could pay off the loan.
After years of rapid expansion, Tai Hua Supermarket Corporation had taken over all the first-tier and second-tier cities. They had also taken over most of the third-tier cities. But the fourth-tier cities and below were taken over by other supermarket corporations.
Tai Hua Supermarket Corporation had two solutions now. One was to set up their supermarkets near them and use their brands and prices to push out the other supermarkets. This method would hurt the other supermarkets, and it would lower their profits. Also, after they had pushed out the other supermarkets, they would increase the prices and lose some of their customers.
The second solution was to merge with those smaller supermarket corporations and expand at their original locations. The locations chosen by those small supermarkets were all in good locations.
Tai Hua Supermarket Corporation could even keep the smaller supermarkets' brands and let multiple supermarkets operate together.
Also, they must be careful not to be sued for monopolizing the market. It was fine to monopolize the market, but if they were to use their monopoly to push out their competitors, the fines would not be light.
That's why Tai Hua Supermarket Corporation decided to use the third solution. They would set up at least one large supermarket in the third or fourth-tier cities. It might not be a hypermarket.
They could use their brand advantage to slowly attract customers without excessive promotions.
Just Tai Hua Supermarket's membership card and shopping card could be used all over the country, and other supermarkets would not be able to catch up.
Many people were working hard in the big cities, but their parents were still living in the smaller cities. If the company gave out shopping cards, they could bring them back to their parents.
Also, the bigger the brand, the higher the credibility. People will think that your products are better and fresher. This was true. Tai Hua Supermarket's fresh produce had always been the industry standard.
Having their own picking garden, transporting goods by themselves, and delivering goods multiple times a day, not only could they provide their customers with fresher products, but they could also reduce the wastage rate.
Tai Hua Supermarket was doing well, but there were some problems. But it was a sweet problem.
"Brother Feng, we have so much cash remaining. Are we going to split the profits or do something together?"
Dividends were great. After investing for such a long time, he could finally see a large amount of profits. Tai Feng had invested in other businesses.
Yes. Fu Guangwei had been eyeing a yacht for a long time, and now he has the money to buy it.
"Dividends are fine too. We can also do something together. Have you asked the rest?" Feng Yu turned and looked at Fu Guangzheng. The two of them had discussed this before.
Fu Guangzheng nodded: "I had discussed with the Li brothers. They also want to ask for your opinion."
"Fu." Feng, "Feng Feng Feng Dao Feng Yu Feng Li Li's Store.
"Our cash share will be more than 30% this year. This is too high. My idea is to get dividends. In the future, we will also get quarterly dividends. Everyone can use the dividends to invest in other things like stocks. "Fu Guangzheng said.
Now, he had his father-in-law's help, and the financial market was recovering. The stock market had entered a bull market. He wanted to make more money.
But the Li Brothers did not think this way. They had not invested much in the financial market. Their family preferred to invest in real estate. Now, they do not need funds. They were troubled about how to invest the dividends and what to invest in.
If they were to invest in real estate, they had too little funds. Also, China's property market was being regulated recently, and many people said that the property market was not doing well.
That's why the Li Brothers wanted to see what Feng Yu was going to invest in. They wanted to be a part of it. The Li Brothers had connections and were willing to let Feng Yu appoint someone. Anyway, Feng Yu had never cheated them over the years.
"How about dividends? Everyone can use the dividends to invest in the stock market or something else. But I have a request. I want our Tai Hua Supermarket to continue to expand rapidly within this year. "
Fu Guangzheng frowned: "Why? This is not worth it, and it will increase our expenses. "
"Our Tai Hua Supermarket's financial model will be restricted soon. I heard that the higher-ups are discussing that the payment deadline should not be more than 60 days. This was because there were too many lawsuits in the past two years. " Feng Yu was also helpless. Luckily, Tai Hua Supermarket's expansion period was about to end.
Fu Guangwei realized that his work had become more difficult. In the past, the payments were quarterly, and some of them were even quarterly. This allowed them to have enough floating cash in their accounts.
Many of their new stores were opened with this money as a working capital.
If this restriction was extended to 60 days, then their floating cash flow would be much lower. Luckily, they do not need to expand so fast anymore. Investing in a supermarket in a third or fourth tier city was much cheaper.
"Oh, there are still some restrictions. We are not allowed to charge suppliers entry fees. We are not allowed to use festivals, celebrations, opening of new branches, etc." Feng Yu thought for a while and said.
Fu Guangwei had a bitter look on his face. He had only been promoted for a short while, and everything had changed?
If the supermarket's expansion slowed down after he was promoted, and the profits and sales had dropped, he would be too ashamed to continue as the Chairman.
Feng Yu also did not expect the higher-ups to set such restrictions. Luckily, Old Zhang had informed him beforehand and asked him to be careful not to be singled out.
Actually, this restriction was targeted at Tai Hua Supermarket and other big retailers. It was a suggestion made by those suppliers during a meeting, and the higher-ups agreed.
Among the companies, Tai Hua Supermarket's losses were second only to Gome and Suning.
"Make the changes as soon as possible. This is the last time we have to save cash. Within 6 months, we must control the settlement period to be within 2 months. If not, we will postpone the dividends. "
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