Chapter 127: Zhao Holdings? (Please subscribe—1/4)
"What exactly... is your plan?" Kinoshita Hidekaze could not help but stand up from the sofa and sit down beside him. "We are talking about a massive amount of capital required to compete now. The funds I had prepared have already been earmarked by Sumitomo, who originally planned to make a move themselves; it is difficult to extract them to support you."
"If the matter surrounding Takeda Manufacturing only required throwing money at it, why would it have become this complicated?" Tao Zhiming shook his head continuously. "Takeda Takanao has no leverage for negotiation. Once Mitsubishi clears out the small fry and Takeda Takanao is completely cut off from any aid outside the *zaibatsu*, won't he be even more at the mercy of the conglomerate?"
"It’s not like that, it’s not like that!" Kinoshita Hidekaze stood up and paced. "If Takeda Takanao realizes that the plot of land has extraordinary value, then, of course, he can use that as a bargaining chip."
"No, as long as he cannot find funding, the first thing he needs to deal with is the delivery of the Henghe Trading order. To fulfill that order, he needs to solve the payment for raw materials. Even if these problems are solved, he still needs to handle the repayments to Mitsubishi. Brother Hidekaze, you told me last time that Henghe Trading and the magnetic powder supplier are both part of Sumitomo’s layout, right?"
"That’s correct. Mitsui’s layout, on the other hand, is the market competition in the cassette tapes and video tapes produced by Takeda Manufacturing. Among the top ten companies, Mitsui controls four. They are playing the acquisition card. The other conglomerates are mainly allies of these three."
Tao Zhiming had a clear picture in his mind: "Then, everyone will make their moves next. However, I’m afraid Takeda Takanao will have to endure for another two days; it is only when he is on the verge of collapse that he will see everyone make their moves again."
"...Do you think there is still an opportunity?" Seeing him speak with such confidence, Kinoshita Hidekaze asked with some hesitation.
"No, I should say that our opportunity will only appear under these circumstances."
Tao Zhiming had come here precisely to confirm the current situation. After all, the timing of his entry was of the utmost importance. He had to wait for the *zaibatsu* to strike directly to identify where their flaws lay.
Now, the first flaw had appeared. Because of this interest rate cut, Mitsubishi had actually managed to trap a significant amount of capital from other conglomerates through high-level influence and covert operations. Under such circumstances, they would only double down on their previous strategy: drive the price down! Crush the valuation of Takeda Manufacturing to the absolute bottom! Even Mitsubishi, despite having ample funds, would do the same, because with the capital of other conglomerates tied up, they could strike everywhere and scoop up quality assets in more places!
...
Takeda Takanao’s dark circles were deeper, and his eyes were bloodshot. He truly had not expected that even when he wanted to sell his properties and land, he would find the situation even more difficult.
Production Manager Kimura Shuuta, Financial Manager Takeda Gorou, and Marketing Manager Tanimura Kazuo gathered in the office shortly after.
Takeda Takanao rubbed his eyes: "Is there any new information?"
"My situation, there's no need to elaborate," Kimura Shuuta sighed. "If we cannot confirm the arrival of new raw materials by the day after tomorrow, we will have to shut down production in a week."
Takeda Gorou hesitated and said: "President, last night, many people contacted me, saying they could provide loans."
Tanimura Kazuo looked at him, and Takeda Takanao perked up: "What did they say?"
"The terms are very harsh; they require shares as collateral, and the interest rate is very high..."
Takeda Gorou mentioned the interest rates, and Tanimura Kazuo immediately exclaimed: "Isn't this robbery? If we borrow 1 billion, we have to pay 130 million in interest every month? When will we ever be profitable! Gorou, have you been dealing with the *yakuza*?"
Takeda Takanao’s face turned livid.
"President," Takeda Gorou tentatively suggested, "at this point, I think the new agreement with Yuhe Trading is the only way out. I managed to secure new terms yesterday. If we sign the agreement first, use their deposit to purchase raw materials, and after completing the Henghe order and receiving the final payment, we stop taking new Henghe orders, we might be able to tide over the current crisis."
"That is an exclusive agency agreement. Are you saying that from now on, we should entrust the entire company’s revenue to Yuhe?" Takeda Takanao felt a throbbing pain in his head. "Although Yuhe Trading has made concessions, their motives certainly aren't pure! Is it really necessary to cooperate with us at this very moment just to snatch the Henghe market in the future?"
"It’s for our exclusive agency! After all, after the new factory goes into production, 15 million cassettes a year is a very stable supply channel!" Tanimura Kazuo urged. "Besides, at this stage, where else can we find a channel to get money quickly? No interest to pay, we just need to do our part: produce, produce!"
Takeda Takanao felt physically and mentally exhausted, and the situation was indeed as described. He just couldn't understand: if Yuhe Trading could see the future of Takeda Manufacturing, were the others blind?
So he said: "Unless I figure out why they are all targeting Takeda Manufacturing, I cannot make any more decisions easily. The new agreement for the magnetic powder has already taught me a lesson. So, let’s get to the bottom of this first!"
"But we have to pay the magnetic powder supplier immediately."
"Today, find out exactly why today!" Takeda Takanao glared at his three capable subordinates with blood-red eyes. "We cannot go on like this, otherwise, we will only fall into more and more traps!"
At this moment, there was a knock at the door: "President, today's newspapers have arrived."
"Bring them in."
Takeda Takanao tossed the newspapers onto the table and said to them: "Gorou, Kazuo, go. Find out what is going on. Takeda Manufacturing has always been a diligent enterprise; there is no reason for us to face such a situation. Perhaps they are trying to force us to make hasty choices in a desperate situation, making us lose the most important thing. I thought about it all night—it must be this land. Everything they are doing right now is just to strip us of our bargaining power!"
Tanimura Kazuo felt a shock and hurriedly lowered his head: "I understand!"
After they left, Kimura Shuuta asked in confusion: "If they want this land, why have the real estate companies all withdrawn?"
Takeda Takanao sneered: "That’s because those real estate companies aren't qualified to swallow this land. Shuuta, what if this land isn't worth 3.5 billion yen, but five or even ten times that? Could those real estate companies be the ones causing us such a predicament?"
Kimura Shuuta turned pale: "If it’s such a terrifying power, how can we resist?"
"Then I would rather sell the new factory, or even everything else that can be sold, pay off the loans, and stop production, just to protect this land! I need to know why this land is so important. Only when this is confirmed can I make the person hiding behind the scenes sit in front of me and negotiate as equals!" Takeda Takanao said fiercely.
Kimura Shuuta left with a heavy heart, and Takeda Takanao sat down. In truth, these were just outbursts born of anger. He didn't have that much confidence; he was simply unwilling to give up. The land was already mortgaged to Mitsubishi Bank. If he ultimately couldn't come up with the money to repay the loan, could he really keep it? The complexity of the situation was beyond his ability to handle.
At this moment, his gaze drifted to the newspaper on his desk. He first looked at the news, which was mainly about yesterday’s interest rate cut. Takeda Takanao cursed with resentment: "Land, finance—don't these guys know that manufacturing is the foundation of the country?"
He saw an interview and his expression softened slightly: "It's a pity there are so few people like Professor Yamamoto..."
While he was muttering, the desk phone rang. After answering, he heard someone say: "President, there is a guest at the door who wants to visit you, saying they want to discuss a joint venture to set up a factory abroad."
"Abroad? A joint venture?" Takeda Takanao was about to refuse directly. At this point in time, he had neither the funds nor the energy to think about such things.
But the voice on the phone continued: "He said Takeda Manufacturing only needs to provide technical licensing and training, and they can provide the funding."
Takeda Takanao felt a stir in his heart and, after a moment of thought, said: "Please show the guest to my office."
For some time now, most of the people who had come to see him were there to talk about mergers, acquisitions, or buying land. Wasn't setting up a joint venture abroad something only large companies with better production capacity and sales channels would do?
Takeda Takanao tidied up his desk, and after a while, he saw a young man being led to his office door.
"Nice to meet you, President Takeda. Here is my business card."
Takeda Takanao looked the young man over, noticing that his attire didn't look particularly "decent," appearing somewhat weary and travel-worn. He looked down at the card and asked in surprise: "Zhao Holdings... President Zhao Yuanxi?"
"Yes." Zhao Yuanxi suppressed his inner curiosity and smiled with a business-like demeanor, "I apologize for the intrusion and for taking up your time."
...
"A new face has entered Takeda Manufacturing?"
Many people received the news immediately, and the forces surrounding Takeda Manufacturing quickly began to investigate. But no one knew this new face, nor did they know which side he represented.
"What about your people inside Takeda Manufacturing? Can't they get any news?" Handa Kiyoshi asked Omiya Hiroshi over the phone.
"Not right now, but I believe there will be news soon," Omiya Hiroshi frowned. "What about Mitsubishi? What is their reaction?"
"Mr. Omiya, our alliance between Yuhe and Mitsubishi is limited only to the operation of that piece of land in Zuoshang Hengchan. Proposing to use Yuhe Trading to check Henghe was already a new benefit our chairman managed to secure. But on the matter of Takeda Manufacturing, Mitsubishi will only prioritize their own interests. What right do we have to know their reaction immediately?"
Omiya Hiroshi’s eyes flickered as he spoke into the receiver: "If we are going to act, there are only two days left. Sumitomo will definitely take action through the magnetic powder supplier and Henghe Trading. They are the first noose around Takeda Manufacturing's neck. There shouldn't be anyone foolish enough to get involved in this now, so who exactly is this new face? Mitsubishi, Sumitomo, or Mitsui?"
"Probably... allies like us at Yuhe also have their own hidden agendas."
For a moment, those in charge of the Takeda Manufacturing affair in the major *zaibatsu* all began to speculate. At such a sensitive time, whose side was the person who walked into Takeda Manufacturing on?
After leaving Takeda Manufacturing, Zhao Yuanxi walked with a calm and composed demeanor. He walked to the station, got on the train, and arrived at his hotel. Along the way, he kept his eyes straight ahead, looking weary and exhausted.
Not long after, information was finally gathered, allowing all parties to grasp the situation.
"What is this... just some guy from Hong Kong looking for investment. It's a waste of time that he visited every single one of them."