Extraordinary Genius - Chapter 92 – Using Technology to Exchange for Shares
Although Zhang Ruiqiang had promised Feng Yu, he was still not satisfied. In the original timeline, these people, like Song Laosi and Cripple Wang can still enjoy their lives for another 2 years. The time was shortened, but it was not enough.
Many wealthy people like to donate to the Police and the government to improve the security. That was because even if you are wealthy and able to hire a lot of bodyguards but you might still not be a match for those vicious villains.
Just like Hong Kong’s richest man, Superman Li. He was influential, but his son was still easily kidnapped by some kidnappers. The kidnappers even went to his house to demand a one hundred million ransom.
After that, Superman Li donated a large sum of money to the Police and government to improve the monitoring systems and the police equipment. But what’s the use? One hundred million was gone, and the whole world knows about it. It even caused Superman Li’s company share prices to drop.
Feng Yu does not want that. He still prefers the security of the big cities in his previous life. There were no guns and not many who were willing to risk their lives.
“Mayor Zhang, I had made it very clear just now. If you want me to accept such low prices, then you must improve the security. If there are no law and order, who is willing to come and invest here? This is business. Since you are not able to meet my demands, then you must give me a price that satisfies me. I can never accept a few million RMB!”
“You can have other conditions, like lesser income tax or company tax.”
“That is unnecessary. I will pay whatever taxes I am required to pay without a single cent less.”
“That’s not right. From what I know, your company is selling used cars, and those cars are all luxury cars. But there are no records of your company importing used cars, nor paying taxes for those cars.” Zhang Ruiqiang revealed one of his cards.
Zhang Ruiqiang had found out about this? Feng Yu still thought that he did an excellent job at keeping these a secret and this secret would last till the last batch of cars were sold.
“I imported scrapped metals and vehicles parts, and I paid my taxes for those. Are there any problems? Those cars sold by my company were assembled by ourselves. The vehicle department had inspected the cars and allowed us to sell it.” Feng Yu retorted.
He had used a loophole. If the City Government were to pursue this matter, it would still be very troublesome for him. But if he had not done this in the first place, he would get so many profits.
“The City did not go after you for using this loophole.”
“My business is legal! If there is any law that states that what I’m doing is illegal, go ahead and list it out.” Feng Yu argued.
“No point arguing. It’s still the same thing. If you have other conditions, go ahead and say it out.”
“I really can state any conditions?” Feng Yu asked.
Zhang Ruiqiang replied cautiously: “It cannot be illegal and you are not allowed to use any loopholes.”
“Fine. Those technologies and the experts can be given to the Machinery Factory for not a single cent, but…… I want to exchange them for shares!”
Those technologies were worth at least a hundred million RMB and to ask Feng Yu to sell them for a few million? How could he possibly agree to it? Since you want these technologies, then let me be a shareholder. We can spill the earnings together.
“What did you say? Exchange for shares?”
“Yes. There are a lot of shareholdings companies and factories. Why can’t our Bing City’s Machinery Factory use the shareholding system? I am using my technologies in exchange for the factory’s shares. This way, the factory is able to save money and make use of the advanced technologies on the production of agricultural machines. It’s a win-win situation.”
“This…… I’m afraid it cannot be done.”
Zhang Ruiqiang shook his head. How can a state-owned factory letting an individual become a shareholder? Although according to the law, there was nothing wrong and there were also some precedents. However, those were from foreign direct investors and those state-owned enterprises were making a loss. Even then, there were lots of controversies. The Machinery Factory was still making profits, and the City Government were still able to get a share of the profits every year.
With the shareholding system and private capital injection, does that means that Feng Yu will be a backseat driver? Even though he knew that Feng Yu was very capable, but from the eyes of the leaders in the City Government, Feng Yu was just a kid, and it was ridiculous for a kid to be one of the bosses of the Machinery Factory!
Zhang Ruiqiang voiced out his concerns, but Feng Yu felt that these were not an issue. He only asked Zhang Ruiqiang three questions:
1. If the factory does not have the technologies and just have advanced machinery, how long will it take for the factory to be the best in China?
2. He owns these technologies and if he decided to sell to other corporations, can the City Government stop him?
3. Will the Machinery Factory, be the best in China with these technologies and the 3 experts?
Feng Yu kept emphasizing on China and Zhang Ruiqiang’s eyes brighten up. Feng Yu knew that Zhang Ruiqiang was transferred to the City Government to be the Deputy Mayor was to oversee attracting investors and foreign trade. He was also responsible for the enterprise’s reforms.
Also, earlier this year, there were about 600 to 700 state-owned enterprises converted into the shareholding system. There were some enterprises whose scale was a few times bigger than the Machinery Factory, and not all were loss-making enterprises.
Zhang Ruiqiang had also planned to convert some state-owned enterprises in Bing City into the shareholding system as pilot testing. But he had never considered the profitable Machinery Factory. But after Feng Yu asked him those questions, he was confident that if the Machinery Factory were reformed, the factory would be the best in China. To him, it would be a great achievement!
“If the City Government agrees to it, how much are you investing and how much shares you want?” Zhang Ruiqiang asked.
“I will not come out with a single cent. I will use these technologies and the three experts to exchange for the shares. I want 3 million Rubles worth of shares. I understand the financial statements well, and my shares will be according to the proportion of total value of the factory. I will not take a single share more or less! If you all try to be funny and tweet the figures, then this deal will be off. I will sell all these technical information to the Machinery Factory in Lin Province. I had already given you concessions on the machines pricing. If the City still does not agree to this, then that’s it.”
That’s it? Zhang Ruiqiang looked at Feng Yu deeply. Feng Yu was implying that he could still get his hands on other advanced machinery and technology?
If that is the case, then this Feng Yu is a treasure. The Machinery Factory was also worth for the City Government to invest in. In future, the factory will have the potential to bring in lots of profits for the City.
It’s only 3 million Rubles investment. The City Government can inject funds to increase the value of the Machinery Factory’s assets to over 3 million Rubles and then take back the funds later.
“Okay. I will talk to the City Government and get back to you within a week.”
“3 days. I will only wait for 3 days. If you did not get back to me in 3 days, I would go to Ji Province. Ji Province is also pushing me for an answer.”
Feng Yu was also pressuring Zhang Ruiqiang. If after 7 days, you get back to me and tell me that you all still need to discuss and drag for another 7 days, and then, another 7 days, the value of these technologies will drop. He must force the City to come to a decision as soon as possible.
Zhang Ruiqiang clenched his teeth and said: “Fine, 3 days!”