Chapter 24: Acquiring the Company

Deng Qiang thought for a moment. “If we’re talking about these products, the cosmetics company’s previous distribution channels were mainly focused on county towns and rural areas. Last time, you mentioned targeting the high-end market, so those channels won’t be useful at all.”

“The product design will need a complete overhaul, and we’ll have to devise a new promotional plan. How much are you prepared to invest, Mr. Lu?”

Lu Yu frowned. “Hold on a moment, I’ll show you some information.”

With that, he retrieved his laptop from his bag and began typing rapidly.

He summarized the effects that his two experimental products could achieve. As for the raw materials, he listed mostly Chinese medicinal herbs, intentionally omitting the key substances.

The hydrating product could stimulate skin cells to absorb moisture, leaving the skin supple and hydrated. It could also activate cellular factors, providing some degree of anti-aging benefits.

The whitening product absorbed surface pigmentation from the skin, producing noticeable brightening effects after half a month of continuous use, and visible results after a month.

After describing the effects in detail and listing the ingredients, Lu Yu saw that there was nothing more to add. He connected to the printer, printed out the document, and handed it to Deng Qiang.

“Take a look at this, and then tell me more about your plan moving forward.”

Deng Qiang accepted the document with curiosity. As he read, first confusion crossed his face, then shock, and finally he was left utterly astounded, even stammering a little.

“Mr. Lu, is…is this real?”

Lu Yu looked him in the eye and said earnestly, “If anything, I’ve understated it. There’s absolutely no exaggeration.”

Deng Qiang was so excited that his breathing grew rapid. Realizing he was about to take charge of a future international cosmetics giant, how could he not be thrilled?

He had left a large corporation in search of a place to showcase his abilities. Now, an opportunity far beyond his wildest expectations had suddenly appeared before him. How could his heart not race?

He took several deep breaths, forcing himself to calm down. “I need to think about this, Mr. Lu, I need to think it through carefully.”

Lu Yu noted the expression on his face and nodded.

Just then, Liu Shichang knocked on the door, informing them that the owner of the cosmetics company had arrived. Lu Yu turned to Deng Qiang. “Go back to your office and think it over carefully. From production to market launch, draft a simple plan and come see me later.”

Deng Qiang nodded repeatedly.

Lu Yu then headed to the meeting room with Liu Shichang.

The cosmetics company owner was a man in his forties, accompanied by an assistant and a legal adviser. Zhou Jing was sitting with them, chatting.

Seeing Liu Shichang enter with a young man, the owner guessed this must be the decision-maker. He put down his teacup and stood up.

“Mr. Liu, and this is?”

Liu Shichang smiled. “This is my boss, Mr. Lu.”

He then introduced the cosmetics company owner to Lu Yu. “This is Mr. Peng Yuanshan, owner of the cosmetics company.”

Lu Yu shook hands with Peng Yuanshan. “Hello, Mr. Peng, thank you for coming such a long way.”

Peng Yuanshan replied cheerfully, “Not at all, it’s no trouble.”

Lu Yu released his hand. “Mr. Peng, please, let’s sit and talk.”

Once Peng Yuanshan and his two associates were seated, Lu Yu sat down as well and got straight to the point.

“Mr. Peng, if I may get right to business?”

Peng Yuanshan straightened his expression and nodded seriously. “Of course, Mr. Lu, please go ahead.”

Lu Yu was straightforward. “In principle, I agree to your asking price, but I have one condition: the procedures and handover must be completed as quickly as possible. If you’re agreeable to this, we can sign the contract today.”

Peng Yuanshan was momentarily surprised by such directness—he hadn’t expected someone who didn’t even try to haggle. But he quickly replied, “I have no problem with that.”

Lu Yu clapped his hands. “Very well, twenty-four million it is. Mr. Peng, here’s to a fruitful partnership.”

Peng Yuanshan shook hands again. “A pleasure to work together.”

Lu Yu signaled for Zhou Jing to hand over the contract.

Peng Yuanshan glanced through the terms and, finding no issues, passed it to his legal adviser, saying with a smile, “Mr. Lu, you seem like a straightforward person, so I’ll be candid with you. With the rise of e-commerce and the encroachment of foreign giants, the market for small brands has become tougher and tougher. You should be mentally prepared for that.”

Lu Yu hadn’t expected Peng Yuanshan to speak so frankly and was momentarily caught off guard, but then he laughed. “Mr. Peng, that’s hardly the sales pitch I was expecting! Not only did you refrain from singing your own products’ praises, you started off by dousing me with cold water!”

Peng Yuanshan chuckled as well. “Honestly, I hadn’t planned to say it, but you seem so forthright, and since we’re both from Shu City, there’s no need for pretenses.”

Lu Yu smiled and nodded. “I appreciate your candor, Mr. Peng. But my aim in acquiring this cosmetics company is precisely to take on those international heavyweights.”

Peng Yuanshan was curious. “You sound quite confident, Mr. Lu?”

Lu Yu replied, “I do have confidence.”

Peng Yuanshan grinned. “Then let me wish you great prosperity in advance!”

Lu Yu stroked his chin. “If you plan to stay in the cosmetics field, there’ll definitely be opportunities for us to work together again.”

Peng Yuanshan said, “I haven’t decided what I’ll do next. I plan to take a break for a while. I’m not as energetic as you young people anymore. If I return to the industry, I might have to trouble you, Mr. Lu, in the future, haha.”

Lu Yu merely smiled, and by then the legal adviser had finished reviewing the contract, nodding to Peng Yuanshan that all was in order.

Without hesitation, Peng Yuanshan signed the contract.

Lu Yu signed and stamped it as well, then escorted Peng Yuanshan and his party out. Zhou Jing went with them to handle some formalities. As soon as the procedures were completed, Lu Yu would transfer the payment.

Back in the office, Deng Qiang had calmed down. He’d drafted a simple plan and came to see Lu Yu straight away.

As soon as he sat down, he eagerly began, “Mr. Lu, based on the characteristics of our products—whether it’s masks or creams—I think we should divide them into three tiers.”

“One is an affordable line, smaller in volume and less effective, but with the widest appeal.”

“The second targets the mid-range market—urban white-collar workers. The packaging should be more refined, with better efficacy.”

“The third is aimed at high-end consumers, a luxury line with lavish packaging and the best results, ideally matching what you described.”

“This way, we can cover nearly the entire female consumer demographic.”

“As for promotion, since we’re small and can’t compete with international giants on that front, we should focus on online marketing for now. We don’t have the resources to build offline distribution channels yet.”

“My plan is to find representative female consumers and let them try our products for free. We’ll document their experiences in a reality-style documentary and use the internet for promotion.”

“This minimizes our investment and maximizes our returns, helping us quickly establish brand image and reputation.”

“For now, we’ll sell exclusively online, keeping inventory and operating costs low.”

“Finally, regarding raw material procurement—this is critical. We must not only rigorously control quality, but also stockpile enough to guard against competitors’ tactics.”

“Some of the medicinal herbs we need aren’t widely cultivated. Supply could easily limit our output.”

“So we’ll need to build a stable supply chain and expand cultivation. If funding allows, we should even establish our own plantations.”

Lu Yu listened carefully and nodded from time to time. He had to admit, this man had both ability and vision. He hadn’t made a mistake in hiring him.

He considered the company’s situation. “Right now, our funds are limited. Stockpiling raw materials will take up a big chunk, so let’s keep the product line as it is for now.”

“We’ll focus on hydrating masks, whitening masks, and hydrating creams. Although we call it a cream, it can be used on other parts of the body too, so we must be careful not to label it as just a face cream when we go to market.”

Deng Qiang nodded, taking notes.

Lu Yu continued, “We won’t expand the production line for now. Hydrating and whitening body washes can be added later when the company has more capital.”

“As for manufacturing, the process is fully automated, which also lowers the risk of formula leaks. I’ll personally oversee the adjustments to the production line.”

“When you arrange production, make sure to enforce strict confidentiality—set up a security team and keep improving the system.”

Although Lu Yu was confident that after his adjustments, employees would have almost no chance of accessing the formula—especially since the synthesis of the two special substances would be entirely automated—he still preferred to err on the side of caution.

Workers would only operate computers or machines, never handling the raw materials themselves, much less understanding how the two key substances were synthesized.

So there was little risk of leaks, but it never hurt to be prepared.

After all, there are always clever people out there, and one can’t rule out the possibility that someone, someday, might try to steal the formula.

Better to be over-prepared than caught off guard.

Lu Yu then gave Deng Qiang a long list of mechanical equipment—some useful, some not—simply to mislead anyone who might be watching.

He instructed Deng Qiang to purchase the equipment as quickly as possible, after which he would personally go to the industrial zone to adjust the production line.

Deng Qiang agreed and went off to get started.

Lu Yu had already told him to retain or dismiss the cosmetics company staff as needed.

For the company’s restructuring and recruitment, he left instructions with Liu Shichang to handle the hiring as quickly as possible.

He also asked Liu Shichang to fully support Deng Qiang with the cosmetics company’s restructuring.

The company’s accounts still held more than a hundred million yuan.

Previously, he’d received two hundred million from the Ali company, transferring fifty million to his own account. Now, with the new company and acquisition, expenses were mounting.

This was only because tax season hadn’t arrived yet—he’d have to file and pay at the end of the quarter.

While sole proprietorships don’t pay corporate income tax, personal income tax would still be a hefty sum.

Lu Yu knew the company’s funds were sufficient for now, but he wanted to be well prepared.

It might seem like there was no immediate problem, but once the product hit the market, who knew what pressures and risks might arise? Only with cash on hand could he be at ease.

Moreover, stockpiling raw materials would require a significant outlay.

So Lu Yu began thinking about how to generate more revenue.

Previously, he’d found vulnerabilities in both Windows 10 and MacOS, but had only cashed in on the Windows 10 one; he hadn’t approached Apple yet.

He considered whether to sell the vulnerability to Apple for a tidy sum.

But after some thought, he decided against it. In his situation, unless the company had an explicit bounty, taking a vulnerability to them for payment could easily be considered extortion.

While he felt no moral qualms about extorting Apple, it wouldn’t look good if it ever came to light.

So where else could he make money?

He began to ponder new avenues for profit…