Rebirth of the Industrial Tycoon - Vol 2 Chapter 603
Chapter 603 The flatbread painted is also very fragrant
When Li Weidong mentioned that there was no money for follow-up construction, everyone already understood that Li Weidong went around in such a circle just to ask the leaders for real estate development loans!
In these years, all regions are engaged in economic construction, and it is inevitable that a large-scale construction project will be carried out.
In addition to infrastructure such as roads, bridges, railways, and airports, livelihood projects such as stadiums, cultural and tourism facilities, colleges and universities, hospitals and stations are also under construction.
The local finance in most areas cannot afford so much funds, so they can only seek bank loans and repay them with future fiscal revenue.
In addition to government-led construction, it is more private construction investment. When real estate companies build shopping malls, office buildings, and residences, how can they pay for themselves? They all rely on real estate development loans.
In order to obtain real estate development loans, it is no longer rare for developers to find ways to connect with relevant departments, so several leaders present immediately understood Li Weidong’s intentions.
By this time, he had already tried to see it, and Li Weidong did not hide it.
He said directly: “Leaders, to be honest, the wholesale mall project I’m working on now lacks real estate development loans. As long as there are bank loans, my project can be accelerated.
At present, in terms of loan conditions, we are up to the standard. All projects have been approved by the city. I can also take out 30% of the project funds. Even the bank has stricter approvals for real estate development loans, and no approval is given. loan.
Therefore, I would like to ask the leaders to help and list our shopping mall project in Qinghe City as a key commercial project at the provincial level, so that it will be much easier for us to raise funds! ”
Next to , Zhang Jiagang, secretary of Qinghe City, also helped: “This wholesale mall project has played a huge role in promoting the economic development of our Qinghe City.
Just a textile wholesale mall, it has driven the employment of 100,000 people in the city. Last year, the tax payment exceeded 30 million yuan! If there are more such shopping malls, the economic development of our Qinghe City will definitely be able to go to a higher level! ”
The tax payment of 30 million is not a big amount now. In Yiwu in later generations, a large number of large households who pay more than 10 million yuan a year will be caught, and there will be countless more taxpayers who pay more than one million yuan.
But in 2000, the tax of 30 million was a huge number for a poor place like Qinghe.
At that time, the annual land tax in Qinghe City was only about 1.2 billion yuan. The textile wholesale mall could pay 30 million yuan in tax. It was already a hen that laid a golden egg.
No one would think too many hens like this that can lay golden eggs. Of course, Zhang Jiagang fully supported Li Weidong and built more wholesale malls.
The leaders who were invited looked at each other with different thoughts.
Although everyone knows that it may be difficult to surpass Yiwu, this pie is too big and too tempting. If it can be successful, the economy of the whole province will take off directly because of this!
Even if it can’t surpass Yiwu, it can reach or approach the level of Yiwu, even if it is only 70% to 80% of the volume of Yiwu Mall, it is a very remarkable economic achievement, and it can also drive the economy to advance several steps.
As Zhang Jiagang introduced, a textile wholesale mall can directly or indirectly generate 100,000 jobs and pay 30 million tax a year. If you build more, there will be huge benefits for economic development and tax revenue.
Moreover, the funds for the project construction were not provided by the government, but by Li Weidong, who used real estate development loans, and the risks were also borne by the bank.
If the project fails unfortunately and there is a debt problem, Li Weidong will also suffer losses. With so many properties under Li Weidong’s hands, he can repay the money by simply selling some.
In this way, supporting Li Weidong to develop the shopping mall construction project will at least not lose money.
But if the mall project is successful, the person who handles it will inevitably have a wave of political achievements.
At that time, it can be said that this is a project approved by me, and it will definitely be regarded as a visionary decision, which will inevitably make the higher-ups take a look.
So this account is still easy to calculate. It is others who lose if the project fails, and the project that succeeds and earns. How to choose, everyone feels like a mirror in their hearts.
And this is a business project after all, which is different from a residential project. The residential project sells the house and the project ends, and the business project will have follow-up operations and income. From an economic point of view, it has legitimacy.
…
Li Weidong personally sent the visiting leaders into the car and watched them leave.
Waiting for the car to disappear from sight, Zhang Jiagang called Li Weidong aside.
“Chairman Li, the provincial leaders approve this project very much. I estimate that there should be no problem with the real estate development loan.” Zhang Jiagang said.
“Thanks to Secretary Zhang’s mediation, this time it will be so smooth.” Li Weidong immediately flattered.
“I also hope that our city’s economy can develop, not to mention whether it can surpass Yiwu. Even if it can approach the level of Yiwu, we can become a wealthy city.”
Zhang Jiagang said with a long sigh, and continued, “This real estate development loan is the last thing I can get for Qinghe! I will be transferred next month.”
“Are you going to the south?” Li Weidong asked.
Zhang Jiagang nodded: “It’s not a secret either, the organization arranged for me to go to the southern coastal cities.”
“Then I would like to congratulate Secretary Zhang Gaosheng in advance!” Li Weidong said with a smile.
“What is the promotion, it’s just a transfer from the level, it’s also a prefecture-level city.” Zhang Jiagang responded.
“Prefecture-level cities are different from prefecture-level cities. After all, the economy of southern coastal cities is more developed.” Li Weidong said with a smile.
From a northern city with a relatively average economic level, to the economically developed southern coastal city, even if the level has not changed, it is actually a rise.
I just heard Zhang Jiagang continue: “The organization decided to appoint Comrade Li Zhongwei to take over the position of secretary. Comrade Li Zhongwei has been with me for two years, and he is very familiar with various affairs of the city. He will be the number one in the city. It’s just right.”
The Li Zhongwei mentioned by Zhang Jiagang is currently the second-in-command of Qinghe City. After Zhang Jiagang was transferred out, he took over the position of the first-in-command secretary.
This Li Zhongwei is the first batch of college students after the resumption of the college entrance examination. He was born in physics at the Beijing Institute of Technology, so he is an out-and-out technocrat.
Perhaps because of his background in science and engineering, Li Zhongwei attached great importance to the development of the manufacturing industry. During his reign in Qinghe, the industrial output value of Qinghe City increased by an average of more than 20% per year. Although no high-tech enterprises have been cultivated, the ordinary manufacturing industry has reached several levels.
Li Weidong in his previous life was also an entrepreneur who started a factory from a second-hand machinery and equipment trader during Li Zhongwei’s reign in Qinghe.
Nowadays, the manufacturing enterprises under Li Weidong are mainly located in Qinghe. It is obviously a good thing for Li Weidong to have such a leader who attaches great importance to the development of industry.
…
Sweden, Volvo headquarters, Olaf knocked on the door of the president’s office.
“Mr. President, are you looking for me?” Olaf said.
“Olav, you’re here! Please have a seat? Would you like a cup of coffee? Would you like some sugar?” The CEO asked with a smile.
“Less sugar, thank you.” Olaf was not polite.
The female secretary went down to make coffee for Olaf, and the president said, “Olav, I remember that you used to like sweets very much. The chocolate you gave me last time was sweet.”
“I also really want to eat something sweeter, but I’m keeping my body in shape recently, so I can only bear it.” Olaf replied with a smile.
Swedes generally prefer sweets. Chocolate produced in Sweden, even under the name of dark chocolate, is generally sweeter than chocolate in Western European countries. In addition, Swedish cakes and candies are also very famous.
It is said that eating too much sugar is prone to some chronic diseases, but Sweden is a long-lived country, with the highest life expectancy in the world.
This is mainly caused by two reasons. The first is because Swedes like to eat deep-sea fish. Many trace elements in deep-sea fish are good for the body. Japanese longevity also has this factor.
The second reason for the longevity of Swedes is that Swedes like to keep dogs, and they have to walk the dog if they keep a dog. Walking the dog for half an hour every day makes you exercise without knowing it, which is also good for your health.
Although eating too many sweets can easily lead to cardiovascular and cerebrovascular diseases and diabetes, Swedes have become one of the countries with the lowest rates of cardiovascular and brain diseases in the world by eating deep-sea fish and raising dogs.
The female secretary brought the coffee with less sugar, and the president exchanged a few words with Olaf before saying, “Olav, you are in charge of international business, what do you think is the biggest weakness of our products in the international market? ?”
“It should be expensive!” Olaf continued: “Our products are generally more expensive than other brands. Caterpillar in the United States and Liebherr in Germany are cheaper than us, let alone Japan. brand.”
“Yeah, the price of our products is relatively high, which makes us lose some international markets. The management has always wanted to solve this problem, but it is a fact that the labor cost in Sweden is high, which also keeps the price of our products high. !”
The president paused, then continued; “In order to reduce the cost of products, the group has been seeking to build production bases overseas, and there have been several successful cases.
For the past few decades, our focus has been on Europe and neglected Asia, but as Asia’s economy grows, it will become a new big market.
So according to the next strategic plan of the group, we are going to set up a production base in Asia, this decision has been approved by the board of directors, I think you have heard of it! ”
Olav nodded: “I have heard of it. But if we want to enter the Asian market, we have to face competition from Japanese products. The situation in West Asia is better, and the rest of Asia is basically dominated by Japanese products.
There are many well-known construction machinery companies in Japan. Their products are complete in variety and have good performance. The quality is not inferior to European products. The key is that Japanese products are cheap.
Over the years, Japanese construction machinery has always been an important opponent of our Volvo. When I was promoting products in the international market, I was often cut off by Japanese companies! ”
“Yeah, so we need to find a place with lower production costs than Japan as a production base, so that we can gain an advantage in the competition. And this place is China!”
President then introduced: “China’s production cost is definitely lower than Japan’s, there is no doubt. Although China’s technology is backward, their industrial base is relatively complete.
Moreover, China also has rich mineral resources and has an advantage over other Asian countries in terms of product supply chain. Moreover, China’s infrastructure construction is also more perfect. They have stable power supply, transportation network, and enough ports.
Another important point is that China itself is a growing market, and our products can be sold directly in China. So the group decided to set up the production base in Asia in China! ”
“Your decision is very wise!” Olaf quickly flattered.
President went on to say: “Actually a few years ago, we sent a delegation to China and inspected some Chinese companies. Among the Chinese engineering companies, there are many who are willing to cooperate with us.
But what we want is to fully acquire a company. Even if we cannot fully acquire it, our shareholding ratio cannot be lower than 90%. However, the Chinese companies we have examined are unwilling to accept this condition.
Some of them are only willing to give up 20% to 30% of the shares, and even the biggest concessions are only willing to give up 50% of the shares. If we only get 50% of the equity, we Volvo will not be able to gain control of the company at all.
In the end, we identified an acquisition target that is willing to give more equity, which is this company, and they are willing to give up 70% of the equity! ”
The president said, and handed a document to Olaf, who opened it and saw the details of a company.
“Qinghe Heavy Machinery Factory?” Olaf began to read this document.
After a while, Olaf said, “Mr. President, with all due respect, this company’s financial report is not very bright, they seem to be losing money all the time!”
“It is precisely because of long-term losses that they are willing to give up more equity! If it is a profitable company, how can we get the majority of the equity?”
President went on to say: “Our people have investigated and found that the company’s foundation is still very good, with many skilled workers and a stable supply chain. The main reason why they lose money is because there is a local competitor.
But these are irrelevant. When we successfully acquired this company, no competitor can stop us from moving forward! ”
“You are right, we Volvo have the world’s top technology, if the production cost is the same, where can Chinese companies be our opponents!” Olaf said immediately.
The president then introduced: “This company is very interested in our acquisition, our people have been talking with this company for a while, and the local government also welcomes our investment.
But the problem now is that the proportion of equity has never been negotiated, it is stuck at 70%, and they are unwilling to reduce it any more. And our bottom line is 90%! ”
“We should spend more money, should we be able to buy this 20% stake?” Olaf said immediately.
The president smiled slightly; “If the acquisition funds can be increased, then there will be no talk we have today!”
Olav instantly understood that the president didn’t want to spend money and wanted to take more shares, so the acquisition was stuck.
“Mr. President, what do you need me to do?” Olaf asked immediately.
“Olav, you are in charge of the international business of the group, and you are familiar with the negotiation of international business, so I need you to go to China and negotiate this project!” The president said immediately.
“Is it still the original budget?” Olaf asked.
The president nodded: “The acquisition budget will not increase. This price has been approved by the board of directors, and the board of directors does not want to add more money!”
“I understand!” Olaf nodded and continued: “I’m going to book a flight to China tomorrow! By the way, what’s the name of the competitor you just mentioned? How big is it?”
“I don’t know how big they are, I only know that the company is called Fukang Engineering Company.” The president replied.
“Beverly Engineering?” Olaf’s expression was startled.
“Why, do you know about the Beverly Project?” the president asked.
Olav nodded: “Last year’s Dubai Construction Machinery Exhibition, India had a large order of 120 million US dollars, which was taken away by this Beverly Project!
This Fukang project is able to grab orders internationally, which is a bit of a skill. Unexpectedly, this time it turned out to be an enemy, and God gave me a chance to take revenge!
Mr. President, you can rest assured that when we acquire Qinghe Heavy Machinery, we will combine our unique global technology with China’s low production costs, and the first thing we will kill will be the Fukang project! ”
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