The reason why Charlie wade wanted to hold the Ancestor Ritual once a year was to continuously strengthen their loyalty to the Wade Family through a faster frequency, while at the same time making them understand the master-subordinate relationship between the Wade Family and them, so that they would develop loyal thoughts in their hearts, and then strengthen the Wade Family’s control over them.
At this point, a young man spoke up, “I can understand the Ancestral Ceremony being held once a year, but why do we have to come to Eastcliff every three months to report on our duties?”
Charlie wade asked him rhetorically, “You are taking the resources and earning the money of the Wade family, and I am asking you to come every three months to report on your duties, do you still have any comments?”
The young man busily said, “Our family has long since moved overseas and gradually shifted the focus of our business over the years, and the business we currently run overseas no longer has anything to do with the Wade family.”
Charlie wade nodded his head and asked him, “What is your name?”
The young man replied, “My name is Kirk wade.”
Charlie wade nodded slightly and said, “Good, let me ask you, what business does your family run overseas now?”
Kirk wade busily said, “We produce and sell Chinese furniture for the whole of Europe, mainly to Chinese customers, and our production location is Romania.”
Charlie wade frowned and asked, “Why do you produce Chinese furniture in Romania?”
Kirk wade replied, “Mainly because Romanian timber production is very high and their labour costs are relatively cheap.”
Charlie wade asked again, “Then how many workers do you have in Romania? What is the annual production value?”
Kirk wade thought for a moment and said, “We have about 10,000 employees in Romania, and our annual output is about two billion euros, with a net profit of about 20 per cent.”
Charlie wade nodded and said, “In that case, you have a net profit of four hundred million euros a year from this business alone.”
“Yes.” Kirk wade said, “A few years ago our production base was still in China, and it was me who suggested that my family move the production base to Romania.”
Charlie wade asked him, “Why did you suggest moving to Romania when the production base was in China?”
Kirk wade explained with some pride, “Originally we produced in China and sold in Europe, although the logistics cost was much higher, the overall profit margin was even a bit higher than now because domestic labour was relatively cheap, but I had a hunch five years ago that the EU would definitely keep raising the tariffs and other taxes on foreign products in the future, in that case, our products in the European The market would lose all advantages, and then the profit margin would also plummet, and I was indeed right in guessing that since three years ago, the EU has been continuously raising the tariffs on imported furniture, which has been raised by at least 40% so far!”
Charlie wade nodded and said, “After you moved your business to Romania, you were able to avoid this European tariff policy on foreign countries, right?”
“That’s right!” Kirk wade explained, “When we moved our production base to Romania, we also re-registered a company in Romania, which is equivalent to turning our products into local goods produced in Romania, and because Romania has also joined the EU, the entire European market gives great preferential policies to Romanian products, in this way, we also effectively enjoy to this preference.”
“With lower tax costs, we are able to keep our prices lower, which also allows us to sell more, so the overall profit margin is also considerable, compared to those other companies that have been producing Chinese furniture at home and selling it to Europe, each of them has suffered heavy losses.”
Charlie wade smiled and said, “It seems that you are quite good at business.”
Kirk wade said confidently, “That’s for sure, I finished my bachelor’s degree at Yale University at the age of twenty and my MBA in two years, and I have been involved in the family business since I was eighteen, so I dare not say I am a genius in business, but I am definitely much better than most entrepreneurs who talk on paper.”
Charlie wade nodded slightly and smiled, and spoke, “In that case, then you don’t need to go back this time, stay in China to give me a hand, and by the way I will test you, whether you really have two brilliance!”