Extraordinary Genius - Chapter 724
Chapter 724 – Conditions
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Although Xu Changyou (Secretary Xu) promised Feng Yu that hewill settle those small companies, Feng Yu still shook his head. “It’s notworth it. The purpose of investing is to make more money. Mayor Zhang, if I donot own any Bing City Machinery Company shares and it is still a state-ownedenterprise, will you agree to let those small factories merge with thecompany?”
Zhang Ruiqiang looked embarrassed. He will definitely notagree to it. It was just like Feng Yu said. If Bing City Machinery Companywants to expand, it should be expanding towards the southern regions.Furthermore, Bing City Machinery Company had already set up multiple branchfactories in different cities. It was not wise to diversify their resources inthe same province.
But as a Provincial Government official, he had to supportthis proposal. These small factories would be part of Bing City MachineryCompany, and all their products will be sold under Songjiang brand or Bing City(Agriculture Machinery) brand. The profits would be much more than before.
The local governments would be able to increase their taxincome, and all the workers’ salaries will be increased. But it will be harderfor Bing City Machinery Company to manage those factories.
Feng Yu could also help in the agriculture and pharmaceuticalindustries. But from Feng Yu’s attitude, he will not agree unless he stands togain something from this.
“Feng Yu, if you let Bing City Machinery Company acquire ormerge with the machinery factories or metal works factories, we can let youhave some tax subsidies this year. Also, if you need to expand your factories,I will help you get the land parcels. Are you willing to accept this proposal?”
Zhang Ruiqiang felt that Feng Yu was waiting for him tooffer some benefits. If not, Feng Yu would not mention this. This was Feng Yu’susual habit. Leading people into his trap.
But at this moment, Zhang Ruiqiang got to choose a stance.Furthermore, this would help Xu Changyou, and it would be a good thing for thewhole province.
Feng Yu looked at the provincial and Bing City map on thewall. He walked over and used his finger to draw two circles. “These two plotsof land will be auctioned next month? I think we should save the trouble andjust sell it to Tai Hua Supermarket Corporation.”
Zhang Ruiqiang frowned. Feng Yu had wanted these two plotsof land last year. But due to a delay in the demolition and relocation of theresidents, the auction of the land parcels was delayed to next month. Was FengYu eyeing these plots of land from the start?
Xu Changyou looked at Zhang Ruiqiang. The land was in BingCity, and Zhang Ruiqiang was more familiar with that area.
“These two plots of land are the prime location in BingCity. We are going to turn it into a commercial zone.”
Feng Yu shrugged his shoulders: “Can’t you see howsuccessful our Tai Hua Supermarkets are? With our supermarkets there, thetraffic will increase. We are also making huge contributions to the city. Manycities had invited us to set up our supermarkets in their area. Moreover, ourhypermarkets are not considered commercial buildings?”
“Those two plots of land cost 40 million RMB!” ZhangRuiqiang raised the price. The area of those two plots of land was not big, andlast year’s valuation was around 30 million RMB. If the land was put up forauction, it should fetch slightly more than 30 million. Zhang Ruiqiang does notthink it will fetch 40 million RMB at the auction. He knew Feng Yu was a tycoonand purposely raise the price.
Feng Yu suddenly slapped his forehead. “Ah…… I almost forgetthat Tai Hua Supermarket Corporation does not want to set up any moresupermarkets in Bing City and the surrounding cities. I think the city shouldcontinue to put those land parcels up for auctions. I still have a flight to catch.I will make a move first.”
Zhang Ruiqiang was dumbstruck. If it weren’t for XuChangyou, he would have shouted at Feng Yu. What flight? If you think the priceis too high, just say so!
“How much do you think is suitable?” Zhang Ruiqiang askedwith a long face.
“The market rate is more suitable. My men had evaluatedthose areas. The land area of those parcels are not a lot, and we are willingto offer 32 million RMB to buy them.” Feng Yu looked at Zhang Ruiqiang andsaid.
“35 million RMB! This should be the price at the auctions!”Zhang Ruiqiang gritted his teeth and replied.
“Fine, fine…… I can accept even if it is slightly moreexpensive. My hometown is also Bing City, after all.” Feng Yu said with an “Iam letting you take advantage of me” tone.
Actually, when Zhang Ruiqiang said 40 million, Feng Yualmost agreed. Tai Hua Supermarket had intended to bid for these two landparcels at the auctions, and they knew two other companies were alsointerested. The final price of those two land parcels will surely be much morethan the valuation.
Furthermore, 40 million RMB was cheap, according to FengYu’s standards. The location of the land parcels was among the best in BingCity. In his previous life, it as Carrefour and Walmart that owns them. Theirbusinesses were terrific. The surrounding areas already have other shoppingmalls and many residential estates.
“I have agreed to your terms. Shouldn’t you say somethingabout our conditions?” Zhang Ruiqiang asked.
“You said Bing City Machinery Company will be exempted fromtaxes earlier.”
“It’s tax subsidies!” Zhang Ruiqiang corrected Feng Yu.There was a great difference between tax exemption and tax subsidy.
“Both are the same.” Feng Yu replied. “How much subsidies areyou giving us?”
Zhang Ruiqiang looked at Xu Changyou, and then said: “Thisyear, there will be a 10% tax subsidy from all the factories.”
“I suddenly realized that we cannot afford to buy so manyfactories. But since you all mentioned this, I will discuss with the other shareholdersand buy two factories.”
“20%! That’s the max! You are also not investing in a newfactory. Those factories can start work immediately after you take over. Wecan’t deduct too much tax for you!” Zhang Ruiqiang furiously replied.
“Feng Yu nodded: “Ok. Deal. If there is nothing else, I willleave now.”
“We have not finished yet. Why are you leaving? Bing City PharmaceuticalEnterprise must also acquire those small pharmaceutical factories. Are you okwith this?” Zhang Ruiqiang grabbed onto Feng Yu. We had sold two land parcelsto you, and you just agree to one condition?
“Bing City State-owned Assets Supervision and AdministrationCommission of the State Council is the biggest shareholder of Bing CityPharmaceutical Enterprise. I am fine with it.” There were only 3 to 4 smallpharmaceutical factories in the province, and it was not a problem for BingCity Pharmaceutical Enterprise to buy them out. These small factories couldmanufacture some simple drugs. As long as those drugs were sold under Bing CityPharmaceutical, their sales will not be bad.
“Then what about Tai Hua Food Processing company? Can theyacquire some pig farms and smaller food processing factories?” Zhang Ruiqiangcontinued asking.
“We will not acquire any more pig farms. We have alreadystarted cooperation with those smaller pig farms, and it was working well. Asfor those smaller food processing factories, we can still discuss. But what’sthe use of us acquiring them? Our Longjiang province already has our milkpowder brand. My suggestion is to merge all those factories and sell milkpowder under this brand?”
“You all can also restructure and organize those foodprocessing plants. For instance, flour mills, alcohol, etc. These factories canbe merged together to become a bigger enterprise and increase theircompetitiveness. I am sure you all have your own plans on how to do this. I canhelp if you all encounter any problems in building your brands.”
Feng Yu mentioned some successful products from his previouslife. He does not have any experience in these areas, and it is better to letthe provincial government handle it. There are still some capable people ingovernment service.
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