Chapter 157: Subscription and Investment
Nanming City. Headquarters of Huakun Group.
“Have all of them arrived?” Lu Kun hurriedly asked his assistant who was guiding him along the way.
“They’re all here. Vice President Sun and the entire management team are now waiting for you in the first conference room to start today’s meeting,” the assistant replied promptly.
“Alright, let’s move faster,” Lu Kun quickened his pace.
...
Inside the conference room, everyone was buzzing with conversation.
“Manager Li, how many shares are you planning to subscribe to?” a branch store manager from a county-level city within the Huakun system asked his longtime rival. Others nearby perked up, eager to catch their exchange.
“Ah~ I can’t subscribe to much. Unlike you, Manager Lin, who joined earlier and has a solid family background. I’m afraid all the ‘juicy parts’ will end up in your mouth this time,” Manager Li lamented.
“Joining early means nothing when your store’s performance is causing envy! And as for a wealthy background, that’s nonsense—every family has its own troubles,” Manager Lin replied with a wry smile.
“Ugh! What a pair of sly old foxes!” muttered someone sitting beside them, thinking to himself.
...
Lu Kun entered the conference room to find it nearly packed, estimating that almost everyone had arrived. He then addressed the room: “Since everyone is here, let’s officially begin our meeting.
If anyone has objections to what’s discussed, please raise your hand first and wait for permission to speak.
During the meeting, if you need to discuss matters with each other, please keep your voices low so as not to disrupt the proceedings...
Now, let us invite Vice President Sun to give us a detailed introduction to today’s agenda.”
Lu Kun tapped the microphone, his expression serious.
Sun Bowen spoke earnestly: “The full title of this meeting is the Original Share Subscription Conference of Huakun Holdings Investment Co., Ltd. The first item on the agenda is naturally to confirm the subscription quotas of each person present.
I will now read out everyone’s share subscription quotas and their corresponding capital contributions.”
“Sun Bowen, Vice General Manager of the Huakun Group, subscribing to 6.25% of Huakun Holdings’ original shares, with a capital contribution of 500,000 RMB, holding 2% voting rights.”
“Luo Chunhong, Acting Manager of the Public Relations Department and Store Manager of the main branch in Nanming City, subscribing to 2.125% of original shares, contributing 170,000 RMB, with 0.7% voting rights.”
“Zhang Jiayi, Operations Manager of the Huakun Group, subscribing to 1.125% of original shares, contributing 90,000 RMB, with 0.37% voting rights.”
“Lin Chunming, Statistics Manager, subscribing to 1.1% of original shares, contributing 88,000 RMB, with 0.36% voting rights.”
...
“This meeting has raised a total of 3.8 million RMB from the management team, with the General Manager personally contributing 4.2 million RMB, making a total initial capital of 8 million RMB for Huakun Holdings. According to the agreed same shares but different voting rights arrangement, the management team's voting rights are one-third of their shareholding percentage. If anyone has any objections, please raise them now so we can discuss,” Sun Bowen said, lowering his script and scanning the audience.
“Vice President Sun, is Huakun Holdings only open to shareholding by the Huakun management team? Will other external investors be allowed in the future?” a branch store manager from the Nanming branch asked.
This question went beyond Sun Bowen’s authority, and he glanced toward Lu Kun, who was seated at the center of the chairman’s seat.
Lu Kun gave a barely perceptible nod and then answered directly: “Huakun Holdings will forever be restricted to Huakun people only. No outside capital will be allowed to subscribe. This will be explicitly stated in the subscription agreement, so please rest assured. Additionally, I promise everyone here that the Huakun management team will always retain shareholder voting rights!”
As Lu Kun finished speaking, applause erupted like a tide.
The crowd finally breathed a sigh of relief.
They had all scraped together this substantial sum by selling property and borrowing from relatives and friends. Once they subscribed, their entire fortune and livelihood would be tied to Huakun Holdings.
Enduring hardship now was for a better future, and they were willing to take the gamble.
If the boss decided to increase capital and expand shares in the future, they would accept it; it was an unavoidable reality. They and their boss were like locusts on the same rope—sharing both glory and hardship.
The boss already held firm control over Huakun Holdings. Even if share expansion occurred later, their individual shares might decrease proportionally, but dividends would remain undiminished.
In other words, they trusted their boss but not outsiders.
Their worry was that future external investors might swoop in, snatch the prize, and kick them out from the original shareholder positions.
Lu Kun’s firm assurance finally calmed everyone’s nerves.
...
“Now we move to the second agenda item: the first investment plan of Huakun Holdings Investment Co., Ltd.,” Sun Bowen announced, pausing as assistants distributed investment plan documents to the attendees before continuing.
“This investment plan includes a total of fifty-four projects, with an investment amount of 6 million RMB,” Sun Bowen said, lowering his eyes to his script with a serious expression.
“The first investment project is to buy shares in Shahe Furniture Factory, with a capital injection of 700,000 RMB. After the investment, Huakun Holdings will hold 73.7% equity, an absolute controlling stake. We will dispatch professional finance, design, and marketing staff to manage the factory’s financial affairs and brand marketing... Now, please raise your hands for a vote.”
...
“The first subproject is unanimously approved!”
“The second subproject is to invest in Wind Vane Clothing Factory, with 660,000 RMB injected, giving Huakun Holdings 81.2% equity, an absolute controlling stake. After investment, we will send finance, design, and marketing experts to guide the factory’s operations...”
“The third subproject is to invest in An’nan Rice Milling Factory, with 320,000 RMB. Huakun Holdings will hold 53.5%, an absolute controlling stake. We will assign finance professionals to oversee the factory’s finances and fund usage...”
...
“The fourth subproject is to invest in Qiqu Biscuit Factory, with 120,000 RMB. Huakun Holdings will hold 64.7%, an absolute controlling stake. We will send finance and brand marketing specialists to monitor finances and guide brand building and marketing...”
...
“The twenty-fifth subproject is to invest in Malaxianxiang Workshop, with 50,000 RMB. Huakun Holdings will hold 48.6%, becoming the largest shareholder. We will send finance staff and food quality inspectors to the site...”
...
“The thirty-fourth subproject is to invest in Erdan Brothers Roasted Nuts Workshop, with 10,000 RMB invested. Huakun Holdings will hold 27%, becoming the largest shareholder of the workshop...”
...
After completing the voting on all fifty-four projects, Sun Bowen realized sweat was pouring down his forehead.
“Take a break first. I’ll take over the remaining hosting duties,” Lu Kun smiled at Sun Bowen.
“Now, if anyone has any questions, please raise them all together. I will answer as many as I can,” Lu Kun cleared his throat and addressed the audience.
“General Manager, with so many companies we’re investing in during this first phase, won’t this place a heavy personnel burden on Huakun Holdings? For example, finance staff, marketing, design, etc...”
“We’ve done extensive preparation. Each investment project already has matched staff assigned. These are not decisions made on a whim,” Lu Kun quickly explained.
“General Manager, we’re investing 6 million RMB, but what about the remaining 2 million? Will it just sit idle in Huakun Holdings’ account, causing waste?”
“That won’t happen. We have done thorough calculations. In fact, the 2 million won’t just sit idly; Huakun Holdings’ operating costs are relatively high, and maintaining sufficient emergency funds will also strengthen its risk resistance.”
“General Manager, how long until the first dividends?”
“That depends on the overall profitability of our investment projects. I can’t give a definite answer yet.”
“General Manager, if someone among us leaves Huakun in the future but wishes to keep their shares in Huakun Holdings, is that possible?”
“We will discuss this later. For now, if someone leaves, they cannot continue to hold shares. We anticipate that Huakun Holdings will be highly profitable, and allowing former employees to retain shares would be unfair to current staff...”
“What about those who retire or leave after long service? Will there be special provisions?”
“We will establish relevant policies in due course. For employees who have dedicated their youth and made significant contributions to Huakun, there will certainly be considerations. Huakun has always been a friendly enterprise...”
...
The conference lasted nearly five hours. Lu Kun and Sun Bowen were drenched in sweat, but the attendees’ enthusiasm did not wane, relentlessly firing off all kinds of unusual questions.
As the staff dispersed excitedly, only Lu Kun and Sun Bowen remained in the conference room, exchanging weary glances.
“Finally, this matter is settled,” Lu Kun slumped into his chair, exhausted.
“The follow-up work will still be a tangled mess,” Sun Bowen said with a grimace.
Miaoshu Wu