Chapter 134: Chapter 125: Truly Extraordinary

Hearing that Aerospace was willing to give such a large order, Lu Li couldn’t have been happier.

But the development cycle for engines generally takes a long time.

The development cycle for a brand new engine might take several years.

Even a major engine redesign would take about three years.

Lu Li felt that at the moment, he hadn’t really gained much benefit.

He still had to gather a large sum of money to invest in this money pit.

Just as he was thinking this, things took a positive turn.

Liu Quan first inquired, “Mr. Lu, are you sure that once the engine is produced, you’ll license it to Mr. Peng’s factory for production?”

He didn’t know any other engine manufacturers, and although he could open it to tender in the future, it would be troublesome and might not be trustworthy.

Peng Erping was different.

This person knew part of his background.

In a sense, he was trustworthy.

Lu Li replied confidently, “Yes, I will license it to President Peng.”

Peng Erping gave a grateful look.

Liu Quan smiled and said, “From Mr. Peng’s expression just now, it seems like investing thirty to forty billion to build a production line would be quite a pressure?”

Peng Erping chuckled bitterly and said, “I do have a lot of spare funds, probably around ten billion. But if I want to meet your requirements, I might have to mortgage the company to the bank for a loan.”

Liu Quan asked, “Have you considered financing?”

Peng Erping was taken aback, “Do you mean…”

Liu Quan explained President Zou’s idea, “If you’re willing to accept financing, we at Aerospace are willing to cover half the cost and send a large workforce to help set up the production line. Additionally, I hope Mr. Lu can join with an equity stake based on the licensing, and we can establish a new factory together.”

This was a clear statement.

If Lu Li took equity with the licensing, the newly established factory would no longer need to pay him licensing fees but instead convert them into equity. Once the factory makes money, he can take dividends annually.

This equates to direct cash conversion.

The licensing fee turning into permanent equity is essentially a direct conversion, isn’t it?

Moreover, he can still receive dividends.

This deal is actually more beneficial than directly taking the licensing fee.

Moreover, the patent rights for the engine would still be with Lu Li.

He could still license it to others to earn additional licensing fees.

Lu Li roughly understood why Liu Quan would propose such a request.

It’s simple; they wanted to bind him to the same front line.

The question now was whether Peng Erping would agree to this request.

After all, this meant that Lu Li wouldn’t need to invest any money upfront yet would gain equity in the new enterprise.

On the other hand, Peng Erping and Aerospace would be investing real money.

Fortunately, Peng Erping saw the bigger picture.

He knew that aligning Lu Li with the same front line was more important than anything else.

Without hesitation, he replied, “I have no issue here; it depends on whether Mr. Lu is willing.”

Liu Quan, Jiao Xue, and Engineer Fu all looked at Lu Li.

Lu Li had already thought it through.

Seeing the eager eyes of everyone.

He nodded slightly and said, “I think it’s feasible.”

Taking the lead, Liu Quan said, “Alright, since Mr. Lu has agreed, let’s discuss equity distribution.”

Peng Erping said, “Tell us about the distribution.”

Lu Li also looked over.

Liu Quan pondered for a moment and said, “President Zou’s idea is that we’ll invest twenty billion, and Mr. Peng, you naturally would need to invest a corresponding amount, making the total investment not less than forty billion, with equal shares between us. However, due to Mr. Lu’s equity coming from licensing, his share would naturally be less.”

Lu Li understood Liu Quan’s meaning.

After all, this is just a production enterprise, not a real technical equity stake.

The engine patent would still belong to him, so how could there be too much equity given?

Liu Quan continued, “We’ll each take forty percent of the equity between us and Mr. Peng, with the remaining twenty percent for Mr. Lu. Do you think that’s appropriate?”

Peng Erping almost immediately agreed, “Of course, there’s no issue.”

Huh?

So, just like that, he acquired an equity worth eight hundred million Chinese Yuan?

Lu Li found it hard to believe that his net worth had suddenly skyrocketed to eight hundred million Chinese Yuan.

But on deeper reflection, he understood why Peng Erping agreed so readily.

It’s a straightforward rationale: the market engines’ licensing fee proportion is generally around six percent of sales revenue.

If his earlier assumption was correct and Aerospace could help the new enterprise earn four to five hundred million US Dollars annually,

then the annual licensing fee would be around thirty million US Dollars.

Converted into Chinese Yuan, it’s about two hundred million.

This way, the new enterprise is essentially offering four years’ worth of licensing fees in exchange for a permanent license.

For a company, this is undoubtedly advantageous.

Thus, on the surface, it seemed like Lu Li got a raw deal.

Because they only used four years’ licensing fees for a permanent license.

But that’s not the case in reality.

Lu Li would gain twenty percent equity and earn annual dividends.

Currently, equity dividends in domestic companies are usually around twenty percent.

Assuming the new company makes five hundred million US Dollars annually, it would give out one hundred million US Dollars as dividends.

With twenty percent of the shares, he could earn twenty million US Dollars.

Converted to Chinese Yuan, that’s about one hundred and thirty-four million.

The amount might be slightly less than the licensing fee.

But owning twenty percent equity.

If the company’s earnings grow, and its assets appreciate,

selling the equity might fetch tens of billions.

This essentially means that equity investment is betting on the enterprise’s future prospects.

Indeed, if the enterprise’s future prospects turn bleak, the licensing fee would reduce too.

Anyway, no matter how it plays out, this cooperation model is the best for Lu Li.

For Peng Erping and the Aerospace side, it is also very beneficial.

It is a win-win cooperation.

Liu Quan looked at Lu Li and asked, “Mr. Lu, do you think a 20% equity stake is feasible?”

Lu Li nodded and said, “Yes.”

Liu Quan couldn’t help but smile, “Alright, I’ll call the headquarters to draft the contract. A colleague responsible for this will come to sign with you tomorrow.”

…

After discussing the cooperation matters.

Lu Li, in good spirits, left Longda Machinery with Liu Quan and Jiao Xue.

He first dropped them off at the hotel.

Then he directly drove back to Liu Kexin’s small villa.

After greeting Aunt Huang, he went straight upstairs to the bedroom.

With the door closed, Lu Li began to ponder, “I accidentally discovered a bacterium that can be made into an engine, and my net worth soared to 800 million. If I discover more things, wouldn’t I instantly become the richest person in the world?”

Hmm, that’s just something to think about.

In reality, his concept was that having enough money to live comfortably was enough.

As it stands, as long as this rotary engine can be created, he can lie comfortably.

Since that’s the case, Lu Li didn’t bother to discover anything else.

With that time, better to develop superpowers and enhance his strength.

“The transformation technique has been evolving for so long, why hasn’t it finished yet?”

Lu Li was really perplexed.

“Could it be because I’ve been busy with other things in the past few days and haven’t noticed the changes in myself?”

He thought it was very likely.

Decided to see how much he has evolved in the past few days.

Lu Li thought for a moment, then picked up the dressing mirror beside him.

Started to try if he could change his form.

The last time, his facial muscles and skin could change to a certain extent.

Only the bones couldn’t change.

So the change wasn’t complete.

He thought, after so many days, the bones should have changed, right?

Lu Li first recalled Aunt Huang’s appearance in his mind, then began to suggest the change to himself.

He kept staring at the mirror.

In the mirror, his appearance began to change at a speed visible to the naked eye.

Lu Li could clearly feel that when his facial appearance changed, his bones also seemed to start trembling.

A moment later, he looked at his reflection in the mirror with astonishment, becoming exactly like Aunt Huang!

Be it the chubby face or the wrinkles on it, even the yellowish-brown spots were copied!

“Wow, I actually turned into Aunt Huang?”

Lu Li suddenly became excited.

Hurriedly looked at himself.

Found that his body shape was still the same as before.

He knew why.

Just now he only suggested a change in appearance.

Didn’t suggest a change in body shape.

Since the appearance can fully change, the body should as well.

Lu Li again recalled Aunt Huang’s body shape, then suggested the change to himself based on it.

The next moment, he felt his bones, muscles, skin, and internal organs all trembled.

He surprisingly shrunk a lot, and his body shape changed from looking weak to plump.

In almost no time, Lu Li saw that he looked no different from Aunt Huang.

Hmm, the clothes couldn’t change.

Still wearing the same set as before.

Maybe Aunt Huang was a bit chubby.

He changed into her appearance.

The clothes and pants got stretched, also appeared much longer.

“Could it be that the transformation technique is complete? But why didn’t I feel like before when the superpower evolution was completed?”

Though Lu Li was a bit confused, he was too excited, just wanting to know if the transformation technique had truly been developed.

He hurriedly lowered his head to check his body to see if any key positions had changed.

Unfortunately, the internal structure hadn’t truly changed, he still had male characteristics.

Lu Li used his x-ray vision to scan, finding that his bones, muscles, and skin had changed, but essentially it was still himself.

He decided to continue trying.

In myths and legends, can’t Immortals transform into anything?

Like turning into a stool, a stone, a fly, etc.

Lu Li naturally wanted to know if he could change like that.

He looked around the room for a reference object, then suggested to himself to turn into a bedside table.

Then…

Hmm, there was no reaction at all.

“In this sense, the transformation technique indeed hasn’t completed entirely. At this stage, I can change into someone else’s shape without much problem, provided the body shape doesn’t differ too much. If I wanted to turn into a child, I probably can’t for the time being, let alone become a small animal.”

Although the transformation technique hasn’t fully completed, it seems a bit regretful.

But, since Lu Li last found that his transformation technique development progressed, his body had strengthened a lot.

He couldn’t help but feel curious.

This time the transformation technique development seemed to have progressed a lot again, even the bones could slightly change.

So has his body’s strength also increased a lot?

For instance, he could already ignore adults swinging a knife at him before.

Now could it have strengthened enough to withstand bullets?

If he could indeed withstand bullets, then he would truly have stepped into the extraordinary threshold!

Lu Li wanted to know if he could withstand bullets, decided to experiment.

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