Chapter 70 of 100

Chapter 70

15 min read3,757 words

It has to be said, Joshua has a natural talent for becoming a professional manager. At least from this report to the major shareholders, it’s clear that this law graduate is very organized, dividing the entire report into several major aspects such as investment, production, sales, and profits, linking one part to the next, and finally reaching a conclusion that made John's heart race and his lips dry!

John, suppressing his excitement, read through the report line by line.

First, it detailed the investment completion status of the Flying Pigeon Bicycle Company for the first half of the year. Last year, due to the exceptionally high sales of bicycles, the product had a supply shortage in the U.S. market alone. After discussions among the board members, it was decided to invest in building a second bicycle factory. This factory was constructed in the San Francisco area in the western United States, where Fengke spent nearly half a year. In March of this year, the second factory began production, capable of manufacturing 500 bicycles per month, increasing to around 900 in June, and is expected to reach 1,500 by the end of the year, along with 400 tricycles per month.

The first factory in New York, after two rounds of expansion, had already reached a production capacity of 2,500 bicycles and 500 tricycles per month at the beginning of the year. By the end of the year, it is expected to reach 3,000 bicycles and 800 tricycles per month, aligning with the London factory's year-end target.

To build the second factory, expand the first factory, and invest in the London factory, the Flying Pigeon Bicycle Company has spent a total of $260,000! After all, acquiring and renovating a factory in San Francisco, along with training workers, is a significant expense.

However, the substantial investment has paid off.

Last year, the Flying Pigeon Company produced only about 20,000 bicycles, but in just the first half of this year, the two factories in the U.S. manufactured 19,000 bicycles and 3,000 tricycles, all of which were sold out! By the end of the year, this number is expected to increase significantly.

This is a truly astonishing figure!

After all, the U.S. population at this time is only around 50 to 60 million, with an average annual income of about $200 to $300. The number of people who can afford bicycles is not very high, making this figure even more shocking!

The large sales volume has brought in substantial revenue. The Flying Pigeon Company's revenue for the first half of the year has already approached $1 million! This is even after Joshua and his team reduced the selling price, lowering the bicycle price to $40 and the tricycle price to $60.

Although the selling price was reduced, the company's profit did not decrease. Following John's suggestion, Fengke hired over a dozen mechanical engineers who, through process improvements, reduced the cost of each bicycle to around $22 and each tricycle to $35. The result of the price reduction was an increase in profit per unit. Even after deducting management, advertising, and tax expenses, as well as investment and expansion costs, the net income of the two U.S. factories for the first half of the year was still as high as $140,000, with an estimated annual net income exceeding $300,000!

The London factory, although it started production later and has a capacity of only 1,500 bicycles per month, managed to sell out all 6,000 bicycles produced in just four months! The high selling price of £18 per bicycle also brought a profit of about £4 (nearly $20) per bicycle. In four months, the 50% net profit attributable to the U.S. Flying Pigeon Bicycle Company reached $60,000. If the factory reaches its planned monthly production of 3,000 bicycles by the end of the year, the profit from the U.K. alone in the coming year will be over $300,000!

What an astonishing figure!

Driven by the massive profits, the British partners are desperately increasing the production capacity of the bicycle factory and have already put the production of tricycles on the agenda, with plans to start production soon.

This is not all. According to Joshua's plan, the two factories in the U.S. will continue to expand, aiming to reach a monthly production of 5,000 bicycles and 1,200 tricycles, with an annual production of 60,000 bicycles and over 10,000 tricycles, which will largely meet the demand in the U.S. market. As for the U.K., the partners have proposed a massive plan to double the production capacity, and the vast British colonies will ensure sustained sales, potentially generating even higher profits than in the U.S.

This is why Joshua is becoming increasingly eager to build a factory in Germany.

It's easy to imagine that if a factory is established in the equally industrialized and increasingly affluent Germany, and supplies neighboring countries like France, Austria, and Switzerland, increasing sales by tens of thousands or even hundreds of thousands of units annually is not impossible, which would mean endless profits!

"This money is too easy to make!"

After calculating a long series of numbers, John couldn't help but sigh inwardly.

After all, John owns 40% of the Flying Pigeon Bicycle Company, and he has already earned $80,000 in just the first half of the year, almost equal to the total cash savings of old Hunterall's lifetime!

Of course, Joshua wouldn't give him so much money. In fact, even last year's dividends were withheld after discussions with John, all reinvested into further expansion. This is the best time for the Flying Pigeon Company to expand on a large scale, and Joshua and his team certainly won't waste this opportunity.

However, if Joshua's plan is realized, by the end of next year, the dividends John receives from the Flying Pigeon Bicycle Company might reach or even exceed this figure...

Conservatively estimated, before selling his shares, the Flying Pigeon Bicycle Company will bring John at least hundreds of thousands, if not millions, of dollars in dividends, and the proceeds from selling the shares will certainly not be less than this figure!

And don't forget, old Hunterall also owns 20% of the shares!

"Add the profits from the Swiss Army knives, and I should be considered a wealthy man, right?"

Imagining piles of green dollars, John's heart was filled with joy. Joshua also mentioned in the letter that the sales of Swiss Army knives were equally impressive, with nearly 30,000 units sold in just over a year, generating over $10,000 in profit. Several military officials from different countries have already shown interest, and if orders can be secured, it will not only significantly increase sales but also serve as excellent advertising, potentially turning this small tool into a cash cow.

The only downside is that the sales of the safety razors remain poor, and Joshua is considering discontinuing production.

But at this moment, John couldn't care less about the safety razors. After reading Joshua's letter again, he excitedly stood up, pacing back and forth in the study as if he had boundless energy.

In an era where millionaires are rare in the U.S., John's net worth is now undoubtedly that of a wealthy man!

"Finally, I have money!"

Unable to resist, John glanced at the numbers in the letter again and chuckled to himself. His thoughts couldn't help but leap across the ocean, back to New York City. He remembered the 3.6 acres of land Steve had purchased for him in Manhattan and could almost see the scene when he returns to New York in a few years...

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