Chapter 82: The More Friends, the Better

At the end of October, Lu Yu once again reviewed the entire development plan for the software from beginning to end. At the current pace, he estimated that in a little over ten days, his main tasks would be finished. After that, the nearly four hundred-strong team of programmers at Yunhan Technology would continue to refine the details and add various plugins. Lu Yu’s role would be to provide guidance and explanations whenever they encountered difficulties.

Calculating the time, from the initial preparations to the anticipated completion in ten days, Lu Yu would have spent nearly three months dedicated to this special effects software. Even with a team of about four hundred working in tandem, they had only completed the overall framework and main modules—the project was far from truly finished.

Reflecting on this, Lu Yu felt a touch of resignation. It was just a set of special effects software, yet it had already consumed so much effort and time. What about true artificial intelligence, then? Lu Yu found it hard to imagine.

Still, he was not discouraged. If developing artificial intelligence were so easy, the world’s top technology companies on Blue Star would have succeeded long ago. For one thing, it had been less than a year since he obtained the technical data, and his understanding of it was still quite superficial; at best, he had only scratched the surface. For another, his own foundation of knowledge was still insufficient, and he had much to learn from Blue Star’s academic resources.

Artificial intelligence involved so many disciplines, and in many of them, Lu Yu was an utter novice. This was not something to be rushed. Once the programming for the effects software was complete, he planned to visit the company only occasionally to answer questions and resolve issues. The rest of his time would be devoted to studying in the library.

At his current stage, he was reading general books—some highly technical and advanced, but not yet delving into research papers. Yet many such papers represented the cutting edge of Blue Star’s technology and research. They were essential reading. Beyond a broad survey of many disciplines, it was especially urgent for him to study materials science, since he planned to establish a materials research institute the following year. He had only begun a preliminary study of materials science and could hardly claim any real understanding. So, before founding the research institute, he needed to strengthen his knowledge in this area.

With these thoughts in mind, Lu Yu rolled his stiff neck and dived back into the sea of code.

In recent days, Deng Qiang had been exceptionally busy. Besides the daily management of Powder White and Black, the most pressing matters were investment and construction of the planting bases and processing centers. He had to meet with local authorities, discuss investment details, land requirements, and various supporting facilities. Naturally, he also sought policy support and preferential terms, which was only fitting.

After all, the land needed for planting bases and processing centers was not in prime or vital locations, and there were requirements for soil and water quality. Such places were often economically underdeveloped and, aside from agriculture, had little development value. Now that Powder White and Black intended to invest in these neglected areas, the local authorities were, of course, very welcoming. They promised to provide basic infrastructure like roads and offered favorable land-use policies.

Interestingly, when some local officials first received the investment proposal, they were puzzled. After understanding Powder White and Black’s products and investment plans in detail, it seemed less like an investment and more like an act of targeted poverty alleviation. These backward areas suffered from poor transportation and limited infrastructure, which would inevitably increase the company’s logistics and operating costs. Moreover, the planting bases and processing centers required a large workforce, and the company promised to hire mostly local labor.

If local people could grow medicinal herbs that met the standard, the company would purchase them all. This would not only provide numerous local jobs but also stimulate the local economy to some extent. The investment in planting bases and processing centers was substantial, from land leveling to facility construction and irrigation systems. From investment to construction to ongoing operations, these underdeveloped regions would see tangible benefits.

Locals would gain employment and income, local authorities would see increased tax revenues, and there would be no severe pollution. Not to mention, the company also pledged to fund the construction of at least five schools. Such a windfall left some local officials stunned, prompting them to confirm the details with Deng Qiang multiple times. He had to emphasize repeatedly that Powder White and Black was a socially responsible company, and all this was as it should be. Only after the investment agreements were signed and the special funds transferred to designated banks did the officials feel reassured. Afterwards, they expressed their appreciation, awarding Powder White and Black a special commendation for being such a benevolent enterprise.

Busy as ever, Deng Qiang traveled constantly to inspect different sites and negotiate with local officials. One investment contract after another was signed. For all the company’s high revenue, operating expenses were equally high. Beyond ordinary business expenses, there were also costs for stockpiling raw materials, building up product inventory, paying taxes, and now continuous large-scale investments.

The company was indeed profitable, but nearly all the earnings were reinvested into further expansion—a necessary path for any growing business. Especially now, with Deng Qiang planning to expand overseas and compete on the home turf of international giants, it was critical to solidify the supply chain for raw materials to withstand future competition and risks.

Those foreign giants were not to be underestimated; if they were to cut off the supply of certain raw materials, the company’s production lines would grind to a halt. Therefore, establishing their own planting bases was unavoidable.

Altogether, Deng Qiang had finalized investment contracts in twelve underdeveloped regions, most of them in Gui Province, with fewer in Shu Province. This was not from a lack of interest in Shu Province, but rather because of its heavier industry and less suitable land for medicinal herb cultivation. The planting bases required vast tracts of land, and some herbs grew better in mountainous regions—hence the focus on Gui Province.

Gui Province, after all, had been known since ancient times as the Land of the Hundred Thousand Mountains and the Miao region, rich in medicinal herbs. In the past, poor transportation hindered industrial development and kept pollution relatively low. Now, with the country’s major investment in infrastructure, transportation had greatly improved. Most of the world’s most spectacular bridges were in Gui Province, spanning mountains and chasms, their decks shrouded in mist.

For all these reasons, investment was concentrated in Gui Province.

After signing twelve investment contracts, Deng Qiang decided to pause; any further investments would put pressure on the company’s cash flow. It was a mistake to think planting bases were just a matter of contracting some land. From initial development to facility construction, equipment purchases for processing centers, and ongoing labor and operational costs, the expenses added up quickly.

Even though Powder White and Black had brought in over six billion in October alone, it could not sustain such outlays indefinitely. Moreover, to enter the sights of foreign consumers, the company needed to budget a substantial sum for advertising. Promoting in overseas markets was nothing like the early days at home, when a small investment yielded maximum results. Abroad, capital was king, and with the giants blocking the way, money had to be spent to achieve explosive impact.

Deng Qiang wanted to make a stunning debut, since their previous suppression had kept Powder White and Black out of the market. Now, their entry had to dazzle foreign consumers.

It was worth noting that, after much discussion among the management, they unanimously decided to launch a massive advertising campaign, followed by a timely announcement seeking agents in various countries. Foreign markets were too complex, the company was unfamiliar with local conditions and had almost no contacts or resources, making direct sales unlikely. Recruiting capable distributors in each country became the optimal strategy.

They also drew up detailed agency guidelines: each country would be limited to two or three distributors, depending on market size. The profit margin offered to distributors would be based on sales volume, ranging from 10% to 30%. The more sold, the higher the profit margin. Still, few distributors were expected to earn the 30% margin at first, as Powder White and Black’s production was limited and could not supply unlimited quantities. Even at 15% or 20%, the profits were considerable.

For instance, Deng Qiang, ever the modest and upright gentleman, generously calculated profits in US dollars. Thus, even the cheapest box of facial masks would net distributors ten to thirty dollars each. Just one box—the lowest-priced product.

Deng Qiang and the management were well aware that those foreign giants were flush with cash and clever tactics, but they could not control everything. By offering high profits, there would always be those willing to defy the giants and join in the competition. No one was foolish: with such effective products, sales would surely be strong, and with such high profits, money would be waving at them enthusiastically.

In a society where capital was everything, making money was the only truth. Even if a distributor only secured the agency rights, they would not need to operate the market personally—by recruiting a few sub-agents and transferring goods just once, they could effortlessly pocket the profits. Wasn’t that like picking up money off the ground?

It had to be said, Deng Qiang and the current management had truly grasped the wisdom of Sima Qian: “All the bustling under heaven is for profit; all the commotion is for gain.” Even when venturing into the strongholds of the giants, there was no need to do it alone—just gather a group of meat-loving partners in the foreign market, and everyone would join the fray together. The spoils would be plentiful and satisfying.

No doubt, upon learning of Deng Qiang’s strategy, those international giants would feel a sense of helplessness. But this was reality. In any group, it was impossible for everyone to be of one mind. Different positions bred different interests; alliances were rare and betrayal was always a risk. The larger the group, the more this held true. Such was human nature—unchangeable.

But it was precisely because of this nature that human society advanced. New groups replaced old ones, as the interests of the many supplanted those of the few. Thus, civilization moved forward.