Gun-Ho asked GH Machines’ President Jong-Suk Park, “How many machines did you send to Dyeon Korea so far.”
“Four were sent to Dyeon Korea, and we received an order for another 4 machines. And, I placed a new order of twin screws with West Moulding in the U.S. I ordered ten of them. Since I didn’t know how to place an order with them, I asked for help from GH Mobile’s Manager Chang-Hoon Seo from the sales department.”
“You did?”
“Actually Manager Seo visits me here sometimes. He came here yesterday, and had lunch with me.”
“I see. I don’t see some of your workers today. Did they go somewhere?”
“Yeah. They went to visit a factory nearby to fix their machines. We are getting paid for the service.”
“Hmm, really?” Gun-Ho continued, “Miura Machines’ president in Japan is coming to visit us here.”
“Here? You mean GH Machines?”
“Yeah. He probably wants to see the company that would take over his machines and technology, and he wants to make sure we are worthy. He is coming with his plant manager.”
“Does that mean that he would accept our offer price—300 million won?”
“We haven’t talked about it yet. Once he arrives here, we will negotiate the price.”
“Speaking of money, bro, I received the payment from Dyeon Korea for the machines, but I have several places that I need to spend the money for. I need to buy twin screws from West Moulding, not to mention other necessary parts that I’m planning to purchase. Even though he agrees to 300 million won, I’m not sure if I can come up with that amount. What should I do?”
“I will send 300 million won to GH Machines. Just make it as temporary accounts receivable.”
“Temporary accounts receivable?”
“Just tell that to your worker who is handling accounting work here. She will know what to do. It doesn’t mean that we are increasing the company’s capital with that money, but it’s more like a temp fund that the company can use until it is ready to pay it back. You just need to record the money as temporary accounts receivable.”
“Hmm, really?”
“And, if the deal of acquiring Miura Machines goes through, you will need to hire one more worker who can exclusively handle the work in supplying products to the companies in Japan. I mean a worker who will be in charge of trading.”
“I agree with you. I do think that we need someone who handles trading, so that person can also take care of purchasing twin screws from West Moulding. I can’t ask GH Mobile to help me with it forever.”
“That’s right. And, before Miura Machines’ president arrives here, you will need to clean your office and factory. Make it neat and organized. You know, Japanese people love things that are clean and placed in an orderly way.”
“Bro, what do you think about GH Machines getting TS 16949 (automotive quality system)? I talked with a consulting service company yesterday, and they said that they would help us with getting TS 16949 and ISO 9001 (quality management system), and ISO 14001 (environment management system) simultaneously.”
“Hmm, is that right?”
“So, I told them that we are a small company with only 12 workers. They said that even smaller companies with 5 or 6 workers get those certifications as well.”
“Well, I think you should do it then.”
“One of my workers here is young and has a good education background. I was thinking about having him handle the certification matter.”
“Well, it’s your call.”
“Hmm, okay. I guess I will take some time to think about it.”
Gun-Ho asked, “How is it going with your plan to create a website for GH Machines?”
“Oh, I almost forgot about it. I talked with GH Media’s design team lead the other day on the phone about it, and that was it. I have so many things that I need to take care of, as a business owner. I guess I will have to talk to her again soon.”
“Yeah.”
“Speaking of which, I admire you for it, bro. It’s not like you own only one business, but you have several of them, and you are handling them very well. Moreover, you are always one or two steps ahead of everything.”
“Thanks.”
“Is it okay that I get back to you on the website matter after we complete the deal with Miura Machines?”
“Sure.”
Gun-Ho stood up from his seat getting ready to leave.
“Well, I should let you go back to your work. I’m heading to Dyeon Korea now. I have an executive meeting to attend there this afternoon.”
“Why don’t you have lunch with me before going there?”
“There is no good restaurant around here, isn’t there?”
“There is one if we go to the area around the industrial park for foreign workers. Fish dishes there are really good.”
“Sounds great. Let’s take my car.”
After having lunch with Jong-Suk, Gun-Ho went to Dyeon Kroea.
When it was 2 pm, Gun-Ho convened an executive meeting as previously scheduled.
Gun-Ho spoke, “I’d like to hear first about how we are doing with the acquisition of the manufacturing facilities in Noida, India, and Tianjin in China.”
Director Kim started his report on those.
“We signed the purchase & sales contract for a manufacturing facility in Noida, India. It’s 5,100 pyung large, and our purchasing price for this facility is 3.2 billion won. We will make the full payment by the end of this month. For installing necessary machines there, we request the work to GH Machines. As a start, we will install two machines.”
“Even though GH Machines will handle the installation of machines, we will need to select a worker who will operate those machines.”
“Yes, sir.”
“In addition, Mr. Manager Hee-Yeol Yoo will need to select someone from the research center and send him to India. That person will handle the compounding work.”
“Yes, sir.”
Director Kim continued, “As to the manufacturing facility in Tianjin, China, I asked Dingding to buy the factory that she found. I believe she will sign the contract today. Mr. Vice President Adam Castler received the report from Dingding this morning that she was heading to Tianjin.”
“Is the factory located inside an industrial complex?”
“Yes, sir. Our purchase price is 2.8 billion won, and it is a 4,950 pyung large facility.”
Gun-Ho turned his gaze to the internal auditor and said, “Once the stock market closes today, I want you to post a public announcement. The announcement is about our new factory in India. Include the size of the manufacturing facility, purchase price, and its location.”
“Understood, sir.”
“For the facility in China, we will make a separate announcement later, maybe coming Monday or Tuesday.”
“Yes, sir.”
“And, are we hearing anything about stock split from investors these days?”
“Of course, we are, sir. We are getting calls from investors inquiring about our plan for a stock split. Some people from investing clubs even visited our company in person for that matter.”
“Considering the low volume of our stock available to trade on the stock market, we should do a stock split, shouldn’t we?”
“I suppose so, sir.”
“How do we split our stock? What do you all think about it?”
After asking for opinions from the executive officers in the room, Gun-Ho looked around.
‘We have about 7 people here in the executive meeting today including the interpreter. The fact that we reviewed the possibility of a stock split will reach some people outside the company one way or another, especially to the stock market. The executive officers here might not realize it, but the investors outside our firm are keeping their eyes and ears open about it. The stock price will increase once stock split occurs.’
