Volume 5 Chapter 97 Strongest company
The Frestech Chamber of Commerce’s plan to open the Candra Empire market didn’t progress smoothly because of various reasons.
Even if the Frestech Chamber of Commerce’s magic machines were very popular in Wimbledon City right now, with ambassador Hakanin ordering more and more each time, this was not a normal trade model and it wasn’t what Xu Yi wanted to see because it opened the market a bit too slowly.
But before the Frestech Chamber of Commerce’s production capacity was greatly increased, Xu YI wasn’t that worried about this.
Moreover, although the Frestech Chamber of Commerce was slow in opening the Candra Empire market, the markets of the other companies were being opened quite quickly and smoothly.
Other than selling in the countries around the Stantine Duchy, the Frestech Chamber of Commerce went north, going past the Drake Duchy and entering the Falk Kingdom, becoming all the rage there.
The Falk Kingdom was a country that had more territory and people than the Lampuri Kingdom. If the Lampuri Kingdom wanted to take the capture and digest the market, they would need some time.
Comparing it, if it was just from the angle of the Frestech Chamber of Commerce’s development, they should be focusing on the Falk Kingdom.
Not to mention that the Falk Kingdom was in the center of the continent. To their east was the Candra Empire and to the north was the Marlow Empire, so they were in quite the important position.
If the Frestech Chamber of Commerce could develop in the Falk Kingdom, when it matured, they could even find a chance to enter the Marlow Empire.
If they could open the markets of both the Candra Empire and the Marlow Empire, it could be said that the magic machines had spread all over the continent.
Of course, this reality was still currently very far away for the Frestech Chamber of Commerce.
The Frestech Chamber of Commerce’s production capacity could never be increased, so even if they opened the markets of the continent, they wouldn’t be able to seize them all.
For this situation, Xu Y was gradually changing the development plan of the Frestech Chamber of Commerce.
Before this, the Frestech Chamber of Commerce mainly exported magic machines to sell in other countries and received benefits from that.
The factories that were made in cooperation with those countries were only supplemental, satisfying the demands of those countries to grasp a part of the magic machine technology.
Now that he knew that the Frestech Chamber of Commerce’s production capacity would find it hard to keep up within the development of the market, Xu Yi changed his idea.
The factories in the Stantine Duchy and the Black Rice Wasteland were still working at full power and they were increasing their production capacity, but the Frestech Chamber of Commerce fully focused on opening more factories with other countries.
In these factories, a few of them were controlled by the Frestech Chamber of Commerce and the rest only received technical support from them. As for the location, the workers, and the management, they were all controlled by the various companies of the various countries.
For these countries, of course they liked this kind of cooperation model more because they can learn the magic machine technology from this model. They would be able to make what they learned magic machine technology that belonged to them.
It was different from purchasing technological patents from the Frestech Chamber of Commerce. Because these factories had technical support from the Frestech Chamber of Commerce, they had personnel from the Frestech Chamber of Commerce teaching them, giving them a bit of an advantage when it came to research.
That way, with longer cooperation, these joint investment factories would have performance and quality that came close to the Frestech Brand and would allow them to catch up to the Frestech Chamber of Commerce easier.
So with this partnership model, the Frestech Chamber of Commerce easily entered the Falk Kingdom. They signed several cooperation contracts with several companies in the Falk Kingdom.
At the beginning of next year, the Frestech Chamber of Commerce would be building five household magic machine factories in the Falk Kingdom.
According to this plan, in the next five years, the Frestech Chamber of Commerce would continue working with the Falk Kingdom to build at least ten household magic machine factories. At the same time, they would build one production magic machine factory and three steel mills.
In Xu Yi’s mind, he was prepared to build a complete Frestech Chamber of Commerce production base on the Falk Kingdom. He would let that base break free of the Frestech Chamber of Commerce’s main base, allowing it to produce various household magic machines independently.
This idea was naturally because of the Falk Kingdom’s superior position.
Compared to transporting household magic machines from the Stantine Duchy to other countries to sell, building joint investment factories and producing locally would save quite a bit on transport costs.
At the same time, this cooperation method would only require the Frestech Chamber of Commerce to send technical staff. They didn’t need to invest other foundational workers and build factories, so it saved them quite a bit of manpower and effort.
Although with this cooperation method, the Frestech Chamber of Commerce’s profit would drop, because of their leading position in the magic machine industry, even if they only provided technical staff in the contracts they signed with other countries, the profit they gained wasn’t small.
Take the Frestech Chamber of Commerce’s cooperation deals with the Falk Kingdom. In the five household magic machine companies they would be investing in together, the lowest stock shares they had was 45% and the highest was 60%.
The Falk Kingdom was a bigger country than the Lampuri Kingdom, so their national strength was much greater. The citizens were much richer and their domestic market was much bigger than the Lampuri Kingdom’s.
So even if they shared the profits, once they opened the Falk Kingdom’s market, the Frestech Chamber of Commerce would still be able to earn a large profit.
So when conducting the yearly profit estimates, the Frestech Chamber of Commerce’s financial manager Sebas made a very bold calculation.
Forty million gold coins!
This was Sebas’ estimate for the Frestech Chamber of Commerce’s yearly profit.
Such a large figure was rather shocking.
It could even be said that if the Frestech Chamber of Commerce could earn that much, they would exceed the Falcao Chamber of Commerce and become the highest profiting company in the surrounding countries!
And even if next year passes, the Frestech Chamber of Commerce would only be seven years old.
In such a short time, the Frestech Chamber of Commerce had become the strongest profiting company in the surrounding countries. This development speed was like a miracle.
But at the Frestech Chamber of Commerce’s year end meeting, no one objected to the data Sebas brought out.
Because…..in just a single year, the Frestech Chamber of Commerce’s annual profit had reached a shocking thirty three million gold coins!
Compared to last year’s profit of twenty six million gold coins, this year’s profit had increased by a giant amount of seven million!
Since they could increase by seven million this year, adding in the Falk Kingdom’s market that was opened, as well as their various other projects, everyone believed that the Frestech Chamber of Commerce had no problem increasing their profit by seven million and reaching forty million gold coins.
However, while everyone was feeling excited about this number, Xu Yi threw a bucket of cold water over them.
That’s right, the Frestech Chamber of Commerce’s yearly profit would increase, but their investments would also increase next year.
According to Xu Yi’s plan, the Frestech Chamber of Commerce would increase the magic research facility’s funding from five million this year to eight million.
At the same time, the Frestech Chamber of Commerce would also keep investing in the guards, striving to reach ten thousand guards by next year.
The Frestech Chamber of Commerce guards had stronger equipment than the armies of the surrounding countries, so the Frestech Chamber of Commerce would need to invest three million at least.
In terms of the sea, the Frestech Chamber of Commerce would keep increasing their investment.
With the construction of the island bases, according to the financial budget Sebas made, the Frestech Chamber of Commerce would be investing at least four million gold coins on these island bases a year and it would gradually increase with each passing year.
But compared to the spending of the magic research facility and the guards, there were follow up development plans for the island bases that could bring them large benefits. As long as they did it well, it wouldn’t cost them money and would earn them back money.
Of course, there was no hope during the early stages of investing.
According to the plan, at least for three years, the Frestech Chamber of Commerce could only invest and would find it hard to get a return.
But compared to getting a return, Xu Yi cared about the other conveniences the island bases brought.
For example, by having these island bases, the Frestech Chamber of Commerce’s guard fleet and transport fleet could move around much easier. It was easier for the Frestech Chamber of Commerce to develop other markets through the endless seas.
For example, the naval vessel market……
Leslie had passed the news that Remito Russell was interested in the guard fleet and Xu Yi wasn’t surprised.
He was certain that any person who experienced the might of the Frestech Chamber of Commerce’s guard fleet would definitely admit that primitive wooden boats were falling behind.
The Candra Empire’s navy weren’t fools, they would definitely be interested in the guard ships.
Xu Yi had Leslie deliberately act in front of the Candra Empire’s navy just to attract their attention.
Now that Russell as the vice chief of staff had expressed this idea, it meant that Xu Yi had achieved his goal.
Leslie’s letter had just arrived in Xu Yi’s hands for a few days before ambassador Hakanin came to the Stantine Duchy. Other than his usual goods, he also brought a letter from Russell.
In the letter, Russell expressed the interest of the Candra Empire’s navy in the Frestech Chamber of Commerce’s guard fleet, but Russell had raised questions about the two million gold coins price that Leslie had raised. He stated that this was too high and it couldn’t be accepted, so he hoped the Frestech Chamber of Commerce would make some concessions.
Xu Yi responded with a letter expressing the Frestech Chamber of Commerce’s stance.
Xu Yi’s words were very polite and he had said a lot in eloquent words, but there was a simple meaning behind them.
Impossible.