Chapter 724
Although Xu Changyou (Secretary Xu) promised Feng Yu that he will settle those small companies, Feng Yu still shook his head . “It’s not worth it . The purpose of investing is to make more money . Mayor Zhang, if I do not own any Bing City Machinery Company shares and it is still a state-owned enterprise, will you agree to let those small factories merge with the company?”
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Zhang Ruiqiang looked embarrassed . He will definitely not agree to it . It was just like Feng Yu said . If Bing City Machinery Company wants to expand, it should be expanding towards the southern regions . Furthermore, Bing City Machinery Company had already set up multiple branch factories in different cities . It was not wise to diversify their resources in the same province .
But as a Provincial Government official, he had to support this proposal . These small factories would be part of Bing City Machinery Company, 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 tax income, and all the workers’ salaries will be increased . But it will be harder for Bing City Machinery Company to manage those factories .
Feng Yu could also help in the agriculture and pharmaceutical industries . But from Feng Yu’s attitude, he will not agree unless he stands to gain something from this .
“Feng Yu, if you let Bing City Machinery Company acquire or merge with the machinery factories or metal works factories, we can let you have 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 to offer some benefits . If not, Feng Yu would not mention this . This was Feng Yu’s usual 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 the whole province .
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Feng Yu looked at the provincial and Bing City map on the wall . He walked over and used his finger to draw two circles . “These two plots of land will be auctioned next month? I think we should save the trouble and just sell it to Tai Hua Supermarket Corporation . ”
Zhang Ruiqiang frowned . Feng Yu had wanted these two plots of land last year . But due to a delay in the demolition and relocation of the residents, the auction of the land parcels was delayed to next month . Was Feng Yu eyeing these plots of land from the start?
Xu Changyou looked at Zhang Ruiqiang . The land was in Bing City, and Zhang Ruiqiang was more familiar with that area .
“These two plots of land are the prime location in Bing City . We are going to turn it into a commercial zone . ”
Feng Yu shrugged his shoulders: “Can’t you see how successful our Tai Hua Supermarkets are? With our supermarkets there, the traffic will increase . We are also making huge contributions to the city . Many cities had invited us to set up our supermarkets in their area . Moreover, our hypermarkets are not considered commercial buildings?”
“Those two plots of land cost 40 million RMB!” Zhang Ruiqiang raised the price . The area of those two plots of land was not big, and last year’s valuation was around 30 million RMB . If the land was put up for auction, it should fetch slightly more than 30 million . Zhang Ruiqiang does not think it will fetch 40 million RMB at the auction . He knew Feng Yu was a tycoon and purposely raise the price .
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Feng Yu suddenly slapped his forehead . “Ah…… I almost forget that Tai Hua Supermarket Corporation does not want to set up any more supermarkets in Bing City and the surrounding cities . I think the city should continue 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 Xu Changyou, he would have shouted at Feng Yu . What flight? If you think the price is too high, just say so!
“How much do you think is suitable?” Zhang Ruiqiang asked with a long face .
“The market rate is more suitable . My men had evaluated those areas . The land area of those parcels are not a lot, and we are willing to offer 32 million RMB to buy them . ” Feng Yu looked at Zhang Ruiqiang and said .
“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 more expensive . My hometown is also Bing City, after all . ” Feng Yu said with an “I am letting you take advantage of me” tone .
Actually, when Zhang Ruiqiang said 40 million, Feng Yu almost agreed . Tai Hua Supermarket had intended to bid for these two land parcels at the auctions, and they knew two other companies were also interested . The final price of those two land parcels will surely be much more than the valuation .
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Furthermore, 40 million RMB was cheap, according to Feng Yu’s standards . The location of the land parcels was among the best in Bing City . In his previous life, it as Carrefour and Walmart that owns them . Their businesses were terrific . The surrounding areas already have other shopping malls and many residential estates .
“I have agreed to your terms . Shouldn’t you say something about our conditions?” Zhang Ruiqiang asked .
“You said Bing City Machinery Company will be exempted from taxes 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 are you giving us?”
Zhang Ruiqiang looked at Xu Changyou, and then said: “This year, there will be a 10% tax subsidy from all the factories . ”
“I suddenly realized that we cannot afford to buy so many factories . But since you all mentioned this, I will discuss with the other shareholders and buy two factories . ”
“20%! That’s the max! You are also not investing in a new factory . Those factories can start work immediately after you take over . We can’t deduct too much tax for you!” Zhang Ruiqiang furiously replied .
“Feng Yu nodded: “Ok . Deal . If there is nothing else, I will leave now . ”
“We have not finished yet . Why are you leaving? Bing City Pharmaceutical Enterprise must also acquire those small pharmaceutical factories . Are you ok with this?” Zhang Ruiqiang grabbed onto Feng Yu . We had sold two land parcels to you, and you just agree to one condition?
“Bing City State-owned Assets Supervision and Administration Commission of the State Council is the biggest shareholder of Bing City Pharmaceutical Enterprise . I am fine with it . ” There were only 3 to 4 small pharmaceutical factories in the province, and it was not a problem for Bing City Pharmaceutical Enterprise to buy them out . These small factories could manufacture some simple drugs . As long as those drugs were sold under Bing City Pharmaceutical, their sales will not be bad .
“Then what about Tai Hua Food Processing company? Can they acquire some pig farms and smaller food processing factories?” Zhang Ruiqiang continued asking .
“We will not acquire any more pig farms . We have already started cooperation with those smaller pig farms, and it was working well . As for those smaller food processing factories, we can still discuss . But what’s the use of us acquiring them? Our Longjiang province already has our milk powder brand . My suggestion is to merge all those factories and sell milk powder under this brand?”
“You all can also restructure and organize those food processing plants . For instance, flour mills, alcohol, etc . These factories can be merged together to become a bigger enterprise and increase their competitiveness . I am sure you all have your own plans on how to do this . I can help if you all encounter any problems in building your brands . ”
Feng Yu mentioned some successful products from his previous life . He does not have any experience in these areas, and it is better to let the provincial government handle it . There are still some capable people in government service .