Chapter 95: Dajun's Idea

Ya Li happily laughed, "Then I can only give my blessings; the three of us will drink a cup together."

The three people's wine glasses clinked together.

I drank it all in one gulp.

After finishing this cup of wine,

I picked up a hand‑torn lamb chop and started eating,

You have to admit, this signature dish of Boss Wu is very flavorful.

I ate with big bites,

My hands and mouth were covered in oil.

Ya Li watched in a daze,

I looked at Ya Li and said, "Don't just watch, General Manager Kang, eat."

Ya Li smiled, then picked up the lamb chop and began eating.

After eating the lamb chop,

I said to Sun Dajun, "Dajun, you said you have ideas in my office today; the two of us will have a proper chat, I want to hear your thoughts."

Sun Dajun smiled,

"Dad, you won't scold me, will you?"

"What are you talking about? How could I scold you? You're now the General Manager, and I've handed all authority to you. How could I scold you,

If you have ideas, I will definitely support them.

If you have no ideas, then I would get angry."

I finished speaking and wiped the oil on my hand with a paper.

"Dad, then I'll speak," Sun Dajun gave me and Ya Li a glance.

"Go ahead. General Manager Kang is also here; if there's any shortcoming in your ideas, we can supplement them," I said.

"Dad, our company needs to make profit, so we must cut the baggage," Sun Dajun said and looked at me again.

At this moment I took out a cigarette,

Sun Dajun hurriedly took out a lighter and lit it for me,

I took a drag and said, "Dajun, continue."

"Dad, General Manager Kang is like this; our Group Company has too many subsidiaries, many of which are unprofitable. They all rely on the Group Company's money from selling houses to pay salaries.

If we keep going like this, it's very dangerous,

I suggest we shut down or transfer the unprofitable companies.

Then the burden on the Group will be lighter,

So we can devote all our effort to real estate development.

Personally, I think the Group Company's diversified operation strategy is not good. We should now focus only on real estate.

Because houses are the most profitable now.

We should put all our energy into real estate, acquire more land in Xin Cheng, and build more buildings.

The company's development will certainly get on the fast track," Sun Dajun said proudly.

If in the past, I would have shouted,

"What damn nonsense,

Don't I understand this principle,

Diversified operation would reduce the company's risk a bit.

Currently many subsidiary companies are not profitable; it's all due to poor management.

But today I can't lose my temper, mainly because Ya Li is here,

I need to pretend to support Sun Dajun.

After hearing Sun Dajun finish,

I took another drag,

then asked Sun Dajun, "Dajun, anything else."

Sun Dajun shook his head,

I said, "Dajun, first I want to compliment you; these ideas are all correct, showing you think from the Group's perspective.

Over the years I've let your third uncle manage the company.

But the company's management turned out like this, I'm very sad.

At first he proposed that the company must diversify, but no company is profitable.

Dajun, I ask you directly, if the Group Company wants to shut down the lower companies, which ones need to be shut down?"

Sun Dajun said, "Qi He Kuang must be shut down; this mine has become the biggest burden of our Group. It yields no benefit; every month we have to allocate funds to pay its wages.

The cement plant also must be shut down; its cement quality has been unstable. Other ones like the building materials company can be transferred.

Get rid of all non‑real‑estate projects.

Then our Group Company will be much lighter."

I listened to Sun Dajun finish, did not speak immediately, I looked at Ya Li,

Ya Li then said, "Chairman Zhao, what Sun just said is factual. I think Sun is right; the Group Company must go light, then it can truly become a large conglomerate.

Modern corporate management is no longer diversified; it should be single‑focused, perfect the product, and that will win the market."

After Ya Li finished, she looked at me.

I nodded,

Then said, "Makes sense."

Ya Li continued to say: "Chairman Zhao, for example, this Wu Ji Lamb Soup, its product is just making a fuss over the lamb. If he did something else, then customers would think his lamb soup is not good, too mixed."

Actually, no matter what product you sell, you must follow market demand and also have a distinctive feature.

Our Da Heng Group is in the real estate business.

Then its product is houses; how to build houses that the market needs,

making people eager to buy,

"Then Da Heng Group will have a future."

After I heard Ya Li finish speaking,

He laughed and clapped, saying: "Not bad for someone from the south; Kang Zong made this complicated issue simple and clear."

It seems what you say makes sense.

The company's diversified operation indeed has some drawbacks.

But this rectification requires time; it's not something that can be done overnight.

Sun Dajun, Kang Zong, I understand your meaning: that we should let the group go into battle lightly equipped, discard the unprofitable businesses, and only keep the profitable ones. Right?

Sun Dajun nodded immediately,

"Yes, yes, Dad means exactly that. I think we must cut through the tangled mess with a swift blow. We are a large group company; we cannot let these small subsidiaries lead us astray."

I'll take on this task.

"I will carry out bold reforms on the company." Sun Dajun said confidently.

"Sun Dajun, you have such ambition; I am relieved."

For this matter, first come up with a concrete plan.

Let me think about it.

After I finished speaking, I took a sip of wine.

Sun Dajun still wanted to say something,

but Ya Li stopped Sun Dajun with a glance.

Sun Dajun then said nothing more.

Ya Li said: "Chairman Zhao, Sun Zong, the company reform is certainly important, but we also cannot rush; we must proceed slowly."

Many subsidiaries have already become accustomed to this way of operating; if we suddenly reform and push them into society, they will find it hard to adapt.

We still have time,

I think we can start with a pilot at one company.

If there is no impact in society, we can continue to promote it in other companies.

I then asked: "Kang Zong, which company do you suggest for the pilot?"

Ya Li said: "From Qi He Kuang."

"Why?" I asked.

"Because this company originally cooperated in operation with Lanling County; it's just that your share is larger."

"But Lanling County does not bear responsibility, only enjoys dividends. How can there be such a good thing in the world—taking money without doing any work?"

"Moreover, Qi He Kuang's market is too single, and the mining cost is too high. In the market, it simply cannot compete with Zaocheng Mining Group."

"It has many staff and a heavy burden."

"Such an enterprise requires Da Heng Group to spend a lot of money every year to support it."

Ya Li looked at me and said.

Sun Dajun also continued to say: "Dad, Kang Zong is right. This Qi He Kuang should have been discarded long ago. Is it because of my second uncle's affair? Then my second uncle can come work at the group company, and we will support him. As for others, we won't inquire."

Watching them sing in harmony,

I smoked without speaking,

They don't understand my relationship with Qi He Kuang.

That was the key to my initial entrepreneurial success; without Qi He Kuang, there would be no today's Zhaoerhai.