Chapter 603: The Painted Pie Is Also Delicious

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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 finances 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, private construction investment is more important. How can real estate companies pay for the construction of shopping malls, office buildings, and residences themselves? They all rely on real estate development loans.

In order to obtain real estate development loans, there are many developers who go to relevant departments to establish relationships and find 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: "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 project funds. However, the bank’s approval of real estate development loans is relatively strict and will not approve loans. .

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

Next to him, Zhang Jiagang, the secretary of Qinghe City, also said: "This wholesale mall project has played a huge role in promoting the economy 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 shopping malls like this, our Qinghe City's economy will surely reach a higher level! "

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

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

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

No one can have too many hens that can lay golden eggs. Of course, Zhang Jiagang and Li Weidong will build 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 province's economy will take off directly because of it!

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 the economy and tax revenue.

Moreover, the funds for the project construction were not provided by the government, but were paid by Li Weidong. They used 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.

Calculating this way, Li Weidong Mall construction project will at least not lose money.

But if the mall project is successful, the people who handle it will inevitably enjoy 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, and it will inevitably be looked down upon by superiors.

Therefore, this account is easy to calculate. If the project fails, others will lose. If the project succeeds, you will make some profit. How to choose? Everyone has a clear mind.

And this is a commercial project after all, which is different from a residential project. If the house is sold in a residential project, the project will be over, while the 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 improve. Let's not say whether it can surpass Yiwu. Even if it can approach the level of Yiwu, we can still 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: "It's no secret. The organization arranged for me to go to a southern coastal city."

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

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

"Prefecture-level cities are different. 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 has not changed, it is actually a promotion.

I only heard 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 very familiar with the affairs of the city. It is most appropriate for him to be the top leader of the city."

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

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 is an out-and-out technical bureaucrat.

Perhaps because of his background in science and engineering, Li Zhongwei attaches great importance to manufacturing. During his tenure in Qinghe, the industrial output value of Qinghe City increased by more than 20% per year on average. Although no high-tech enterprises have been cultivated, the ordinary manufacturing industry has taken several steps forward.

In his previous life, Li Weidong also turned from a second-hand machinery and equipment dealer to an industrial entrepreneur during Li Zhongwei's tenure in Qinghe.

Today, 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 industry.

At the Volvo headquarters in Sweden, Olaf knocked on the door of the president's office.

"Mr. President, are you looking for me?" Olaf said.

"Olaf, you are here! Please sit down? Would you like a cup of coffee? Do you want sugar?" The president 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 you used to like sweets. The chocolate you gave me last time was sweet."

"I also want to eat something sweeter, but I'm trying to keep in shape recently, so I can only bear 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 and candies are also very famous.

It is said that eating too much sugar is prone to some chronic diseases, but Sweden is a longevity country, and its life expectancy ranks among the top in the world.

This is mainly caused by two reasons. The first is that Swedes like to eat deep-sea fish. Many trace elements in deep-sea fish are good for the body. This is also a factor in the longevity of Japanese people.

The second reason for the longevity of Swedes is that Swedes like to keep dogs. Keeping dogs requires walking dogs. Walking dogs for half an hour, you will exercise unconsciously, which is also good for health.

Although eating too much sweets can easily lead to cardiovascular and cerebrovascular diseases and diabetes, the Swedes, by eating deep-sea fish and raising dogs, have become one of the countries with the lowest incidence 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 spoke; "Olav, you are in charge of international business. What do you think is the biggest disadvantage of our products in the international market?"

"It should be the high price!" Olaf continued: "Our products are generally more expensive than other brands. Caterpillar in the United States and Liebherr in Germany are cheaper than us, not to mention Japanese brands."

"Yes, our product prices are 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 Sweden's labor costs are high, which also makes our product prices high!"

The president paused and 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.

In the past few decades, our focus has been on Europe and ignored Asia, but with the economic growth of Asia, it will become a new big market.

So according to the group's next strategic plan We have a plan to set up a production base in Asia. This decision has been approved by the board of directors. I think you have heard about it!" Olaf nodded: "I have heard about it. However, if we want to enter the Asian market, we will face competition from Japanese products. The situation in West Asia is better, and other regions in Asia are basically dominated by Japanese products. There are many well-known construction machinery companies in Japan. Their products are complete in variety and performance. The quality is not inferior to European products. The key is that Japanese products are cheap. Japanese construction machinery has been an important rival of Volvo for many years. When I was selling products in the international market, I was 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 to introduce; "China's production costs must be lower than Japan, there is no doubt about that. 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! "

"Your decision is very wise!" Olaf flattered quickly.

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

But what we hope is to fully acquire a company. Even if we cannot fully own it, 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. Even the biggest concession is only 50% of their shares. If we only get 50% of the equity, we at Volvo will not be able to gain control of the company at all.

Finally, we identified an acquisition target that was willing to give a relatively large amount of equity, which was this company. They were willing to give up 70% of the equity! "

The president said and handed a document to Olaf. Olaf opened it and saw the details of a company inside.

"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 it be possible for us to 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 these are irrelevant. We successfully acquired this company by the time we waited, and 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 these 20 shares, right?" Olaf said immediately.

The president smiled slightly; "If the acquisition funds can be increased, then there will be no conversation we are having 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. The board of directors does not want to spend 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 ability. Unexpectedly, this time we were enemies, and God gave me a chance to take revenge!

Mr. President, don’t worry, 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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