Reborn Industrial Tycoon

Chapter 603 The painted cake is also delicious

When Li Weidong mentioned that he had no money for subsequent construction, everyone already understood that Li Weidong had gone around in such a circle just to ask for real estate development loans from the leaders!

These days, various places are engaged in economic construction, and large-scale construction projects are inevitable.

In addition to infrastructure such as roads, bridges, railways, and airports, people's livelihood projects such as stadiums, cultural tourism facilities, colleges and universities, hospitals, and stations are also under construction.

The local finance in most areas cannot afford such a large amount of funds, so they can only seek bank loans and repay them with future fiscal revenue.

In addition to government-led construction, there are more private construction investments. When real estate companies build shopping malls, office buildings, and residential buildings, how can they pay for it themselves? They all rely on real estate development loans.

In order to obtain real estate development loans, developers sought out connections with relevant departments, and there were many who were looking for ways. Therefore, several leaders present immediately understood Li Weidong's intentions.

By this time, it was already clear and Li Weidong did not hide it.

He said directly: "My leaders, let me tell you the truth, what I am currently lacking in this wholesale mall project is a real estate development loan. As long as I have a bank loan, my project can be accelerated.

At present, in terms of loan conditions, we are up to standard. The projects have been approved by the city. I can also get 30% of the project funds. However, the bank’s approval of real estate development loans is strict and will not be approved.

loan.

So I would like to ask all leaders to help us list our shopping mall project in Qinghe City as a key provincial commercial project, so that it will be much easier for us to raise funds!"

Next to him, Zhang Jiagang, the secretary of Qinghe City, also commented: "This wholesale mall project has played a huge role in promoting the economic development of our Qinghe City.

Just one textile wholesale mall has created employment for 100,000 people in the city, and last year the tax revenue exceeded 30 million yuan! If there are more malls like this, the economic development of Qinghe City will definitely reach a higher level!"

Paying a tax of 30 million yuan may not seem like a big amount now. In Yiwu in later generations, there were a lot of large households that paid taxes exceeding 10 million yuan a year, and there were countless people who paid taxes exceeding one million yuan.

But in 2000, a tax of 30 million was a huge number for a poor place like Qinghe.

At that time, Qinghe City's annual local tax was only about 1.2 billion, and the textile wholesale mall could pay 30 million in taxes. It was already a hen that laid golden eggs.

No one would have too many hens that can lay golden eggs. Of course, Zhang Jiagang strongly supports Li Weidong in building more wholesale malls.

The several leaders who were invited looked at each other with their own thoughts.

Although everyone knows that it may be difficult to surpass Yiwu, this pie is too big and too tempting. If it can really succeed, the entire province's economy will take off directly!

Even if it cannot surpass Yiwu, it can reach or be close to the level of Yiwu, even if it is only 70 to 80% of the size of Yiwu Mall, it is a very remarkable economic achievement and can drive the economy forward several steps.

As Zhang Jiagang said, a textile wholesale mall can directly or indirectly create 100,000 jobs and generate 30 million tax payments a year. If more are built, it will have huge benefits for both economic development and tax revenue.

Moreover, the funds for the project construction were not provided by the government, but were paid by Li Weidong, using real estate development loans, and the risks were borne by the banks.

If the project unfortunately fails and debt problems arise, Li Weidong will also suffer losses. With so many properties under his control, Li Weidong can repay the money by selling some at will.

Calculated in this way, if you support Li Weidong's development of the mall construction project, at least you will not lose money.

But if the mall project is successful, the people who handle it will inevitably enjoy a wave of political success.

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, and it will inevitably be looked upon by superiors.

Therefore, this account is still easy to calculate. If the project fails, it is others who lose, but if the project succeeds, you will make some profit. How to choose, everyone has a clear understanding.

And this is a commercial project after all, which is different from a residential project. For a residential project, the project is over when the house is sold, while a commercial project will have subsequent operations and income. From an economic point of view, it has

legitimacy.

…

Li Weidong personally put the visiting leaders into the car and watched them leave.

After waiting for the car to disappear from sight, Zhang Jiagang called Li Weidong aside.

"Chairman Li, the provincial leaders approve of this project. I guess there should be no problem with the real estate development loan." Zhang Jiagang said.

"Thanks to Secretary Zhang's mediation, this time it went so smoothly." Li Weidong immediately flattered.

"I also hope that our city's economy can develop. Let's not talk about whether it can surpass Yiwu. Even if it can approach the level of Yiwu, we can become a wealthy city."

As Zhang Jiagang spoke, he sighed and continued, "This real estate development loan is the last benefit I can get for Qinghe! I will be transferred next month."

"Are you going to the south?" Li Weidong asked.

Zhang Jiagang nodded: "This is not a secret. The organization arranged for me to go to the southern coastal city."

"Then I would like to congratulate Secretary Zhang in advance on his promotion!" Li Weidong said with a smile.

"What's promotion? It's just a horizontal transfer. It's also a prefecture-level city." Zhang Jiagang responded.

"They 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 a southern coastal city with a developed economy, even if the level does not change, it is actually a promotion.

Just listen to Zhang Jiagang continue to say: "The organization has decided to appoint Comrade Li Zhongwei to take over the position of secretary. Comrade Li Zhongwei has been working with me for two years and is familiar with various affairs of the city. He will be the top leader of the city.

It couldn’t be more appropriate.”

The Li Zhongwei mentioned by Zhang Jiagang is currently the second-in-command in Qinghe City. After Zhang Jiagang was transferred, he took over the position of the first-in-command secretary.

This Li Zhongwei was one of the first batch of college students after the resumption of the college entrance examination. He majored in physics at Beijing Institute of Technology, so he was an out-and-out technocrat.

Perhaps because of his background in science and engineering, Li Zhongwei attached great importance to the development of manufacturing. When he was in charge of Qinghe, the industrial output value of Qinghe City increased by an average of more than 20% every year. Although no high-tech enterprises were cultivated, ordinary manufacturing industries did.

It's been several steps up.

In his previous life, Li Weidong also opened a factory as a second-hand machinery and equipment trader during the period when Li Zhongwei was in power in Qinghe, and turned into an entrepreneur developing industry.

Nowadays, the manufacturing companies under Li Weidong are mainly located in Qinghe. Having such a leader who attaches great importance to the development of industry is obviously a good thing for Li Weidong.

…

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 sit down, please? Do you want a cup of coffee? Do you want some sugar?" the president asked with a smile.

"No 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. The chocolate you gave me last time was too sweet."

"I also want to eat something sweet, but I have been trying to keep in shape recently, so I can only endure it." Olaf replied with a smile.

Swedes generally like sweets. The chocolate produced in Sweden, even if it is called dark chocolate, is generally sweeter than the chocolate in Western European countries. In addition, Swedish cakes, candies, etc. are also very famous.

It is said that if you eat too much sugar, you will easily suffer from some chronic diseases, but Sweden is a longevity country, and its average life expectancy ranks among the highest in the world.

This is mainly due to 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. This factor also contributes to the longevity of Japanese people.

The second reason why Swedes live longer is because Swedes like to keep dogs. If you keep a dog, you need to walk it. If you walk your dog for half an hour every day, you will be exercising unconsciously, which is also beneficial to your health.

Although eating too much sweets can easily lead to cardiovascular and cerebrovascular diseases and diabetes, Swedes, by eating deep-sea fish and raising dogs, have one of the lowest rates of cardiovascular and cerebrovascular diseases in the world.

The female secretary brought the coffee with less sugar. After the president exchanged a few words with Olaf, he said, "Olav, you are in charge of international business. What do you think is the biggest shortcoming of our products in the international market?"

?”

"It should be because the price is high!" Olaf continued: "Our products are generally more expensive than other brands. Caterpillar in the United States and Liebherr in Germany are all cheaper than us, let alone Japan.

Brand."

"Yes, the price of our products is relatively high, which has caused us to lose some international markets. The management has always wanted to solve this problem, but it is a fact that labor costs in Sweden are high, which also keeps the prices of our products high.

!”

The president paused and then said, "In order to reduce the cost of products, the group has been looking to build production bases overseas, and there have been several successful cases.

In the past few decades, our focus has been on Europe and neglected Asia. But with Asia's economic growth, it will become a new big market.

So according to the group’s next strategic plan, we are going to set up a production base in Asia. This decision has been approved by the board of directors, and I think you have heard about it!”

Olaf nodded: "I have indeed heard of it. However, if we want to enter the Asian market, we will face competition from Japanese products. The situation in West Asia is better. The rest of Asia is basically dominated by Japanese products.

There are many well-known construction machinery companies in Japan. Their products have a complete range and good performance. Their quality is not inferior to European products. The key is that Japanese products are cheaper.

Over the years, Japanese construction machinery has always been an important opponent of our Volvo. When I promote products in the international market, I am often intercepted by Japanese companies!"

"Yes, 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!"

The president continued: "China's production costs are definitely lower than Japan's, there is no doubt about this. Although China's technology is backward, their industrial foundation is relatively complete.

Moreover, China also has abundant mineral resources and has advantages over other Asian countries in terms of product supply chain. Moreover, China's infrastructure construction is also more complete. They have stable power supply, transportation network, and enough ports.

Another very important point is that China itself is a growing market, and our products can be sold directly in China. Therefore, the group decided to locate its Asian production base in China!"

"This decision of yours is very wise!" Olaf quickly flattered.

The president continued: "Actually, we sent an inspection team to China a few years ago and inspected some Chinese companies. Among the Chinese engineering companies, there are many who are willing to cooperate with us.

But what we hope is to acquire a wholly-owned company. Even if it is not a full-owned company, our shareholding ratio cannot be less than 90%. However, the Chinese companies we inspected are not willing to accept this condition.

Some of them are only willing to give up 20% to 30% of their shares, and even the biggest concession is only willing to give up 50% of their shares. If we only get 50% of our shares, Volvo will not be able to gain control of the company at all.

right.

In the end, we identified an acquisition target that was willing to give a relatively large amount of equity, which was this company, and they were willing to give up 70% of their equity!"

The president said and handed a document to Olaf. Olaf opened it and saw that it contained detailed information about a company.

"Qinghe Heavy Machinery Factory?" Olaf began to read this information.

After a while, Olaf said: "Mr. President, with all due respect, this company's financial reports are not very eye-catching. They seem to have been losing money!"

"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?"

The president continued: "Our people have investigated and found that this company has a very good foundation, with many skilled workers and a stable supply chain. The main reason why they are losing money is because there is a local competitor.

But none of this matters. By the time we successfully acquired this company, no competitor could stop us from moving forward!"

"You are right, we at Volvo have the world's top technology. If the production costs are the same, how can Chinese companies be our rivals!" Olaf said immediately.

The president went on to introduce: "This company is very interested in our acquisition. Our people have been talking with this company for some time, and the local government also welcomes our investment.

But the problem now is that the equity ratio has never been negotiated, it is stuck at 70%, and they are unwilling to lower it any further. And our bottom line is 90%!"

"If we spend a little more money, we should be able to buy this 20% stake, right?" Olaf said immediately.

The president smiled slightly; "If the acquisition funds could be increased, then there would be no need for our conversation today!"

Olaf instantly understood that the president didn't want to spend money and wanted to get more shares, so the acquisition was stuck.

"Mr. President, what do you need me to do?" Olaf asked immediately.

"Olav, you are responsible for the group's international business, and you are also familiar with international business negotiations and price comparisons, 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 be increased. 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 then said: "I will book a flight to China tomorrow! By the way, what is 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 Beverly Engineering Company." The president replied.

"Bukang Project?" Olaf's expression was suddenly startled.

"What, do you know about this Beverly Project?" the president asked.

Olaf nodded: "At last year's Dubai Construction Machinery Exhibition, India had a large order of US$120 million, which was snatched away by Fukang Engineering!

This Fukang project is able to grab orders internationally, so I guess it has some skills. Unexpectedly, this time we were enemies on a narrow road, and God gave me a chance to take revenge!

Mr. President, you can rest assured that when we acquire Qinghe Heavy Machinery and combine our world-leading technology with China's low production costs, the first one we will kill will be the Fukang Project!"

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