Chapter 86: The Wager Agreement

“Ladies and gentlemen, what I just explained is the new plan for the company’s future, and I believe it can offer you all a better prospect.”

Du Qiu stood at the front of the conference room with a new company structure chart displayed on the projector behind him.

Just a week had passed since Qin Yun registered the offshore company and other domestic companies had been completed one after another. Du Qiu also reorganized his industrial blueprint.

Not only had Xue Ningmei proposed a share swap but he had also received a proposal from Ning Yuzhe hoping to establish a joint venture company to produce ultra-high precision CNC machining centers together.

After reorganizing the business and structure, Du Qiu specifically convened Sun Hongming, Liu Yaofeng, Yuan Minhua, Qin Yun, Chen Tao, and Rein Leinar, six people altogether, to explain the upcoming changes to the company.

Specifically, they were to establish a research and development center, which will become the core engine of Du Qiu’s industrial blueprint.

It would provide technical patent support to other companies and charge for patent licenses and technical services.

Dream Technology will become a company with core businesses in CNC system and automation control system software, as well as industrial automated production line equipment manufacturing.

Under it, there will be subsidiaries for garbage disposal equipment, industrial robots, special sensors, and more.

Additionally, a separate new materials company will be established.

Apart from these, Du Qiu planned to pull Xue Ningmei into the joint venture with Ning Yuzhe, giving her a way out without letting her interfere in his core business.

As a controlling subsidiary of Dream Technology, the joint venture would become an external financing platform in the future and could accept other capable strategic investors until it is ultimately packaged for listing.

“Boss, are we trying to replace Fa Ke Company of Japan?” Liu Yaofeng asked excitedly.

Although Fa Ke Company of Japan held a sizable market share in CNC control software, its true strength lay in its industrial robots, a company renowned for producing robots with robots.

Recent data shows it is among the top five wealthiest companies in Japan.

“Fa Ke Company is just one of our targets. Dream Technology not only wants to defeat Fa Ke but also to replace Siemens!”

The crowd gasped in surprise; Du Qiu’s ambitions were indeed lofty.

Rein Leinar spoke solemnly, “I like this dream.”

Sun Hongming suddenly asked, “President Du, that tripartite joint venture, how much stake does Dream Technology hold? Do we have the opportunity to obtain its shares?”

“Dream Technology, as the controlling shareholder, will hold 40% of the shares, with the other two companies holding 30% each. I will set aside 10% of our 40% shares as stock options for you and other core staff.”

Chen Tao gently applauded and said, “Boss, you are wise!” He had started to address Du Qiu as ‘boss,’ emulating Liu Yaofeng.

In his past sales career, he had never felt as confident and proud to sell a product as he did now.

Yuan Minhua asked worriedly, “President Du, we cannot possibly come up with the funds to hold a 40% share, can we? Would the other two companies agree to this plan?”

Du Qiu smiled and said, “Don’t worry, I’ll convince them to accept this arrangement.”

Sun Hongming expressed his concern, “President Du, a tripartite company like that might not satisfy Director Xue.

With all the support she has given us before, 30% of the shares in a company that competes with her existing businesses will hardly please her.”

Chen Tao agreed saying, “I’ve recently gained a good understanding of Huading Group in the north. They hold a large share of the CNC machine tool market there.

Even a listed company in Shenyang was almost bankrupted by their tactics. Director Xue is not someone who is easily satisfied. Perhaps her placing a large order with us wasn’t without the intention of gaining control.”

Yuan Minhua curiously asked, “How could an order gain control over us?”

Chen Tao explained, “With a large order, isn’t your production capacity mostly focused around it? Although we deal with software, it’s CNC control software that requires the corresponding hardware.

Furthermore, we also need to hire engineers for software integration.

This means we can’t sell like general software without manufacturing and installation costs. If there are costs involved and the order isn’t fully paid upfront, what happens when our cash flow gets tight and the order has any sort of issue? Couldn’t our company be in danger then?

At that time, won’t we have to beg them not to cause us problems?”

“Ah? That can be done?” Yuan Minhua, not familiar with such tactics, was surprised to hear this for the first time.

Qin Yun suddenly said, “By the way, Huading Group was supposed to have paid the full amount for the orders we completed this month, but when I inquired their finance department yesterday, they said that they have some cash flow issues and might have to delay the remaining payment for this month’s orders.

Could it be that Huading Group is about to take some action against us?”

Du Qiu’s expression changed slightly. Recently, to accelerate the construction of the new material production line and the trial production of two other new materials, he had invested a good deal of funds.

Moreover, he had just got Yuan Minhua to rent the factory building next door from the industrial park and was making renovations for a cleanroom, which all cost a substantial amount.

In addition, the costs for the components required for large orders, as well as additional engineering staff, all required significant funds.

For this reason, he had sought out Aunt Zhao for another loan from the bank.

If Xue Ningmei really did “reasonably” delay the payment, Dream Technology’s cash flow would indeed be snapped.

It’s like some listed companies going bankrupt over a few million in debt, leading to hundreds of billions in restructuring.

Qin Yun’s expression also changed; as the financial controller, she was very aware of the current funds on the account.

Chen Tao looked at Du Qiu and chuckled apologetically, “Boss, I was just saying. To my knowledge, Huading Group has never defaulted on other people’s payments.”

Sun Hongming, a bit anxious, suggested, “President Du, maybe you should contact Director Xue and ask about the situation.”

Du Qiu smiled and said, “You don’t need to speculate on things that are not likely to happen here. Even if there’s any sort of situation, I can handle it well.

Don’t forget, we don’t only have Huading Group; Feiyu Technology also wants to cooperate with us.

For the new company, they are willing to put in 80 million in cash and a portion of personnel and equipment investment.

With this money, Dream Technology can manage cash flow whenever it’s necessary.”

Yuan Minhua patted her chest and said, “You scared me to death, Chen Tao. I’m most afraid of a broken cash flow now.”

Chen Tao scratched his head and smiled apologetically.

He knew that among the seven people present, four were victims of the broken cash flow of Road Star Technology and were rumored to have not yet received their overdue salaries.

Sun Hongming was surprised and asked, “President Du, if Feiyu Technology is willing to put in 80 million in cash, they must want controlling shares, right?”

“Their original plan was to have controlling shares, but I rejected it. They then stepped back but want me to sign a wager agreement with them.”

“What kind of wager agreement?” Sun Hongming asked, somewhat nervously.

Du Qiu calmly said, “I must produce a top-tier CNC machining center within three months.”

“How is that possible? Are they crazy?” Liu Yaofeng was the first to exclaim.

Rein Leinar glared at Du Qiu and said slowly, “Du, this is an unreasonable demand. It must be rejected!”

Chen Tao also shook his head, “Getting out a top-tier CNC machining center in three months… looking around the world, unless it’s one of those few companies, it seems impossible.”

Du Qiu smiled and said, “I modified the condition. They originally gave me a year and planned to invest only 50 million.

Additionally, I brought up Huading Group’s participation, and Chairman Ning did not object but also required that they match an investment of 80 million.”

“Ah?! Boss, you changed the wager condition yourself? Three months, can you really do it?” Sun Hongming was somewhat dumbfounded.

Du Qiu tapped the table confidently and said, “Sun, please don’t say ‘can you?’ If I couldn’t, would I propose such a condition?

In three months, there’ll be a large CNC machine tool expo in Magic City. It will be the best opportunity to launch a new product.

With such a platform for release, I believe our machining center will definitely make a name for itself overnight!”

Du Qiu’s real thought, however, was to use this opportunity to accelerate the verification of some technologies.

The completion of the ultra-high precision machining center will bring about new technologies and enable the production of many parts that could not be manufactured before.

“Du, if you can achieve this goal, I’ll follow you for the rest of my life,” Rein Leinar’s eyes revealed a certain excitement and fervor.

“Boss, three months! Couldn’t you make it half a year?” Liu Yaofeng sighed.

“Why, are you afraid of working overtime? Don’t you want to make this a success? You should be excited and thrilled like Rein Leinar,” Du Qiu retorted.

“Excited? I am already too excited to contain myself,” Liu Yaofeng said in an exaggerated tone.

This made everyone laugh, dispelling the previously solemn atmosphere.

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