Chapter 80: Small Investment, Huge Returns
"Mr. Liu, I completely agree with your views. It's commonly believed that in North America, especially in Canada and the United States, due to widespread use of air conditioning, the demand for fans is low. But in my opinion, the situation may not be entirely so. You must have personally experienced the 1973 global oil crisis while studying in Canada — those times must be unforgettable, right?" Lin Haoran smiled and asked Liu Luanzhong.
Liu Luanzhong nodded slightly, his face filled with emotion. "Indeed, I was studying in Canada back then. That oil crisis left an indelible impression on me; it changed so much."
"And now, with the domestic turmoil in Iran and the looming threat of civil war, if conflict breaks out fully, history may repeat itself. Add to that the steady increase of your company's orders from North America over the past six months, and it's clear that the fan market there holds massive potential. With the looming threat of an energy crisis, demand for energy-saving products — particularly fans — will certainly soar. Under such circumstances, the small workshop model will likely fail to keep up with and capture the market's enormous demand, limiting your growth opportunities," Lin Haoran added.
In fact, there were already some international concerns about this. However, because Iran's oil exports hadn't yet dropped, the crisis had not exploded — fears were merely speculation at this point.
But Lin Haoran knew very well, with absolute certainty, because he came from the future.
"Mr. Lin, I didn't expect us to think so similarly. It's truly an honor!" Hearing Lin Haoran's analysis, Liu Luanzhong's eyes lit up.
This not only affirmed Lin Haoran's keen insight but also indicated that the two of them shared a highly aligned view of the North American market's future.
"Mr. Liu, I would like to propose a personal idea. In the North American market, especially in Canada and the U.S., consumers are relatively wealthy and pursue higher living standards. Therefore, even if there is a large demand for fans, consumers will prefer practical products that also offer aesthetic appeal. I believe that if we innovate the design of fans — breaking the traditional style, perhaps incorporating retro elements — and create products with vintage charm, they could take the market by storm," Lin Haoran continued.
In fact, this was precisely the strategy Liu Luanzhong would adopt later, earning him a fortune of hundreds of millions within just two years. Lin Haoran mentioned it now merely to further build their alignment.
As Lin Haoran anticipated, Liu Luanzhong's heart surged with excitement upon hearing this.
These ideas perfectly matched his own tastes — he had long been a fan of retro styles.
During his time at his family's fan factory, he had imagined countless times incorporating vintage elements into fan designs. Sadly, none of the elders had ever supported such innovation.
After striking out on his own, though heavily in debt, Liu had always planned that once his factory stabilized, he would pursue this dream — to stand out from the market with a distinctive product.
"Mr. Lin, your idea is brilliant. I completely agree!" Liu Luanzhong's desire to collaborate with Lin Haoran grew even stronger.
Since parting ways with his father's business, he had been determined to prove himself — to achieve success through his own efforts.
However, though orders were flooding in and business was good, he still felt anxious.
The growth rate was far slower than he wanted.
Most of his and his partner's startup capital had been borrowed, and though they had just repaid their debts, they were still cash-poor.
He knew that if he wanted to truly realize his grand vision, he had to scale up production and strengthen competitiveness.
Yet, expanding at the current pace would take forever.
Orders kept piling up beyond his capacity, but Aimco's production scale was simply too small to handle them.
Every time he had to turn away orders due to lack of capacity, he felt both regret and helplessness.
Moreover, he was still in a cold war with his father. Despite half a year passing, he had yet to reconcile, only occasionally communicating with his mother.
Although begging his father for help could ease his cash flow problems, Liu's pride and dignity prevented him from doing so.
He had vowed to succeed on his own.
Lin Haoran's appearance was like a beam of light shining through the haze.
Their aligned visions gave Liu the confidence to believe this cooperation could accelerate his success.
He knew this opportunity was rare — a real chance to change his life's trajectory.
As for his partner, since their visions didn't align, it was time to part ways.
He was grateful to his partner for their early support, but if they couldn't adapt to the changing landscape, they couldn't stay together.
"Mr. Lin, since we seem to be on the same page, how would you like to proceed with the cooperation?" Liu asked with a smile.
"Mr. Liu, after careful thought, I think there are two options," Liu replied. "First, Mr. Lin could directly buy my partner Mr. Liang Yingwei's 50% stake in Aimco. Second, I could transfer my own shares to him, and then we could establish a new company together. Currently, Aimco's equity is split equally between me and Mr. Liang. Mr. Lin, what do you think?"
Lin Haoran thought for a moment and asked, "If I were to buy Mr. Liang's shares, how much would it cost?"
"About HK$200,000," Liu estimated after a moment's thought. "If you offer HK$200,000, I think Mr. Liang would agree."
When they had first founded Aimco, the investment was relatively small, and the company's value today wasn't massive yet. In fact, HK$100,000 might be a fair price — but doubling it would make Liang feel compensated for his efforts.
"HK$200,000? Fine. I can pay that. I'll buy Mr. Liang's shares," Lin Haoran said straightforwardly. "But if I continue investing to expand production, how will we adjust the equity?"
After all, if he kept putting in money, the shareholding percentages couldn't stay the same.
Liu Luanzhong pondered briefly and then said sincerely, "Mr. Lin, if we are to expand, we'll mainly need to relocate to a bigger factory and hire more staff. I estimate that an investment of HK$1 to HK$2 million would be enough to meet immediate needs and increase our order capacity tenfold."
"Moreover, as the market evolves, we can adjust our scale accordingly. Regarding ownership structure, I have a small request: I hope you can consider treating half of the investment as a loan to me personally. That way, we maintain a balanced shareholding for now, and I promise to repay the loan once we have sufficient profits."
This way, Liu could avoid severe dilution of his stake while still securing the funds necessary for rapid growth.
Of course, Liu feared that Lin Haoran might refuse — many investors were greedy.
Moreover, if he failed to repay, Lin Haoran would be bearing significant risk.
Unexpectedly, Lin Haoran agreed immediately.
"Okay, I accept your terms!" Lin Haoran said with a smile, not even hesitating.
For Lin Haoran, an investment of HK$220,000 plus another HK$1–2 million was nothing — a tiny amount.
If such a modest investment could turn into hundreds of millions within two years, it would be one of the best deals imaginable — small investment, huge returns.
Even if he didn't make hundreds of millions, a profit of tens of millions was guaranteed.
He knew Liu Luanzhong's success story very well from his past life — he was confident in this partnership.
"Mr. Lin, then it's settled! I'll meet with Mr. Liang tonight, and I'm sure he'll agree to sell. Tomorrow, we can sign the contract!" Liu said excitedly.
He couldn't wait to bring Aimco into its next stage of rapid growth.
He was sick of the current sluggish pace. He wanted to see the company soar — and now, that dream was finally within reach.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 20 Chapters In Advance: patreon.com/Albino1