Volume 3 Chapter 21 - Building another Banta City (1/2)
The next morning, Xu Yi brought Agnes, Princess Caroline, as well as the group of people from the Drake Duchy led by Anduin to the Falling Rain Valley.
In the morning, Xu Yi led them around the various factories the Frestech Chamber of Commerce currently had, bringing out praise from Princess Caroline and Anduin without any surprise.
After they finished their lunch, Princess Caroline and Anduin said they wanted to look around alone, so naturally Xu Yi didn’t reject their request. He had two people go around with them before going off to find Kennard to hold a small meeting.
“Sir chairman, this is our company’s last month’s financial report. Please take a look.” Kennard gave him a document.
Xu Yi carefully looked over it and he found that compared to the previous months of this year, the Frestech Chamber of Commerce’s profit had dropped slightly.
This was clearly the effect from moving out of Banta City.
But this effect wasn’t big and even if there was a drop, their profit each month was still over five hundred thousand gold coins.
“Very good. According to this trend, we might be able to reach a million gold coins a month within three years.” Xu Yi praised with a nod, “If we’re able to achieve this standard, our company could be considered a true large company.”
“Sir chairman, you are being too modest.” Kennard said with a smile, “Even our Lampuri Kingdom’s strongest Falcao Chamber of Commerce only barely makes more than a million gold coins a month. Our Frestech Chamber of Commerce has only been established for two years and we have a monthly profit of over five hundred thousand, that is already a miracle. Lord father’s letters to me are always filled with praise, saying that you are the most talented merchant in the history of the Sines Continent.”
Xu Yi revealed a faint smile, “This result is not because of my abilities as a merchant, rather it’s all because of our technology. Our company can maintain this rapid growth in profits because our company has the advantage when it comes to technology. So we must keep investing more money into technology and maintaining this lead.”
“Un, I understand.” Kennard nodded, “So I’ve already increased the budgets of the magic machine workshop and the magic research facility by 40%, reaching five hundred thousand and four hundred thousand gold coins respectively.”
“It’s still not enough.” Xu Yi shook his head, “According to my ideas, half of the net profit of the company should be invested in development. This would guarantee that we would hold the lead when it comes to technology.”
Kennard said with an awkward look, “This perhaps isn’t good. Sir chairman, first we don’t have that many researchers. Even if we gave them that many gold coins, they wouldn’t spend it all on research. Moreover, it is impossible for us to put half of our profits into development because although we earn quite a bit, there are many places where we are spending money.”
“Un, I know, so I came looking for you to determine a plan for spending our capital.” Xu Yi stood up and walked over the map on Kennard’s office wall, pointing at the map as he explained his ideas to Kennard, “First, we must guarantee the stability and the development of the Falling Rain Valley because that is our core.”
“Of course.” Kennard nodded in agreement, “Currently we are investing a minimum of a hundred thousand gold coins to maintain and develop the Falling Rain Valley each month. Other than that, every single factory in the Falling Rain Valley is profiting, so there isn’t much pressure there.”
“Let me see…..” Xu Yi looked down at last month’s financial report again.
According to the data, of the four hundred and eighty thousand net profit of the Frestech Chamber of Commerce last month, the two steel mills had over half of that, providing a total of two hundred and fifty thousand gold coins in profit.
As for the magic machine and household magic machine departments, because the market had stabilized and adding in the effect of moving last month, their product numbers had dropped, which decreased their profits. They only reached one hundred and seventy thousand last month.
As for the remaining sixty thousand gold coins in net profit, that came from the tire factory and the bicycle factory.
These two factories currently had the fastest growing profits, especially the explosive growth of the bicycle factory in the past two months.
Once the new method of transportation of riding bicycles was promoted, it was immediately welcomed by the people of Banta City and the surrounding cities.
Because for an average person, a private horse carriage was too expensive, they couldn’t gain back what they spent at all. Moreover, the horse carriages had various limitations, making them not convenient at all.