Extraordinary Genius - Chapter 296 – Change of Attitude
Li Mingde received Feng Yu’s notification to evaluate the market rate of the automobile branch factory. Li Mingde was confused. This automobile factory had not even started operation, and the construction had just begun. Could it be Feng Yu found out that someone was siphoning the construction funds?
But this Automobile Factory’s director is appointed by Feng Yu himself and the factory was still doing the foundation works. How much money can this person siphon? The first phase of the construction fees had not even been reported to the City.
Soon, Li Mingde received a call from Deputy Xu, asking him to calculate the automobile factory’s current value and report to him.
Huh? The City wants to do something to this factory?
Li Minngde immediately asks around and found out that Feng Yu wanted to increase his investment in the Machinery Company and set up more automobile factories. He was shocked by Feng Yu’s wealth.
But he did not think this automobile project will do well in the first place, and since the City had made this decision, it might be a good thing.
Li Mingde quickly completed this task with the help of his men. It was fast as the construction was not completed and he only needs to evaluate the cost of the land, equipment, technologies and the factory’s workers.
At the same time, there were some problems too. The workers from the Machinery Company will have to be transferred back. Those workers will not want to work for a private company. Li Mingde does not need to care about those workers hired from FAW. He believes that Feng Yu would make arrangements for them.
After calculating, the total value of the factory was only about 80 million. This was still a hike up cost under the instruction of Deputy Xu. If Li Mingde had used the standard method of calculations, it would only be about 50 million.
When Feng Yu saw the valuation report, he almost threw the report on Li Mingde’s face!
Feng Yu was clear about the total cost of this project. This project had just started, and Feng Yu clearly remembered how much the machines were worth, how much Fu Guangzheng had invested and how much land was worth.
Now, with just a few workers and only the foundation works of the factory building, the cost increased by tens of millions?
“Li Minde, are you going to sign on the valuation report?” Feng Yu looked at Li Mingde coldly.
Li Mingde suddenly regretted. After all, Feng Yu was the one who had the final say in the Machinery Company. Li Mingde could be removed from his position of General Manager anytime if Feng Yu call for a shareholders meeting. He will not have such a good life in the future.
Li Mingde said with a sad face: “Manager Feng, this was instruction from the City.. I also have no choice. After all, I am still under the City Government. I can help you point out where the problems are in this report. This way, when you are negotiating with the City, you will have the upper hand.”
Li Mingde was not like a double spy. On the one hand, he was helping the City to inflate the factories value, on the other, he was telling Feng Yu where were all the problems in this report. During the negotiations, he will not side with any parties and let Feng Yu and the City negotiate.
As for the other shareholder, Fu Guangzheng, both parties had chosen to forget about him.
Once Feng Yu and the City agree on the valuation report, there was nothing Fu Guangzheng could do. The City was worried that Fu Guangzheng would side with Feng Yu and suppress the value of this factory. Feng Yu did not include Fu Guangzheng in this negotiations was because he could not help much either.
The negotiations did not go smoothly. The City made harsh demands. They knew that Feng Yu could not get the approval documents by himself. That’s why these approval documents were precious. Even if the automobile project was sold to Feng Yu, without the local government help, Feng Yu could not develop this business.
It was tough to build a successful business, but it was very easy for Bing City Government to stop a company from growing. Feng Yu was only someone from one of Bing City’s district with no backgrounds. The City Government was not afraid of him.
The City wants Feng Yu to set the Automobile headquarters in Bing City and cannot be moved to other places. Also, Feng Yu had to build the roads leading to the factory. The City will not pay for it.
The automobile commercials also had to mention “Manufacture in Bing City”, regardless of local or overseas, Feng Yu must not tarnish the image of Bing City. There were many other restrictions imposed on Feng Yu.
Feng Yu knows that the City was acting like a hooligan, but he was not someone who can be bullied so easily. He immediately pointed out that the valuation report of the factory will be decided by the Machinery Company and if the City insists on those conditions, then he works with the Fu family and suppresses the value. This way, the City will be suffering losses too.
Furthermore, Feng Yu could always give up Bing City. He can go and look for partners from other cities. He believes that with his wealth, the enterprises from other places will work with him. Although the approval documents were challenging to get, since Bing City could get it, then other cities can also get it. Worse come to worse, he will work with other City Government! There were many places in China with conditions better than Bing City.
Both parties negotiated for a week, and it was still not settled. But suddenly, the City Government had a change of attitude. The City decided not to sell this project to Feng Yu and even agrees Feng Yu invest in the Machinery Company to expand this company.
Why did the City have a change of attitude so fast? Feng Yu quickly got the answer.
He received a call from Master Lu. He told Feng Yu that the Central Party Committee had decided to encourage the local enterprises to be bolder and be brave to try new things. The local enterprises shake off the reliance on overseas technologies and start developing.
The committee even pointed out the industry they were supporting. The automobile industry. They expressed that there will be government policies implemented soon. There will be many benefits to this industry, and the local government should not hinder the progress of the companies in this industry. The local government must support these companies and help them.
These directives were quickly disseminated to the provincial government and the local regions. The Bing City Party Secretary immediately call for a meeting and everyone agrees to support the development of the Machinery Company.
Although the City cannot afford to invest any more funds into this project, they must be a part of it. They cannot sell this project to Feng Yu and let it be a private company. This project will also let Bing City score political points with the higher-ups.
When Feng Yu got to know about this, he felt that Master Lu had acted too fast.
He had thought that it would take Master Lu a few months to get this sorted out. But who knows, Master Lu got everything settled with a short time.
Feng Yu wanted to cry. Master Lu, why are you so influential?
But there were also benefits from this. This means that the Machinery Company will have a large plot of land and there will be less hindrance from the City in the future. There were pros and cons. In the short term, Feng Yu will have some benefits but in the future, the City will a share of the profits.
Never mind. Just treat it as supporting his homeland. But in 3 to 5 years time, Feng Yu will not let the City interfered with the Machinery Company. He must turn the Machinery Company into a real shareholding company!
A new round of negotiations started again.