Chapter 110 Renegotiation
The music on the phone gradually became less and less. It seemed that Miss Jian walked out of the disco and came to the aisle. Her first words said: "Are you here to congratulate me? Yesterday, the company's financial review was officially over. I renewed my three-year contract and my salary also increased... I heard that the company's additional investment will be in place tomorrow. I plan to recruit 5 or 6 employees to expand the business. Congratulations to me, I have officially taken office as the head of the China region."
Wang Cheng shouted in his heart: "I have allocated this money? I have pity that I have to work hard for the monthly living expenses."[]
After a few breaths to stabilize his emotions, Wang Cheng spoke again, his tone full of joy: "Congratulations, you finally realized your dream."
Miss Jian giggled on the other end of the phone. After more than ten seconds, she stopped laughing and immediately turned to the topic: "I have already contacted Li Xiang you introduced, but I always think this matter is unreliable. Can you reveal a little inside story to me?"
Wang Cheng shook his head gently on the phone: "Investing in Li Xiang's industry is the company's established strategy... You know, most profit-making projects in China are specialized, specialized, and accessible, and it is difficult for outsiders to enter. Our capital company is fortunate to enter early, but the allowable scope of operations is very narrow. We can only acquire some money-making enterprises that are not noticed and missed by big people, and sell them to foreign investors for joint ventures. The current profit is a bit gratifying. However, as more and more sharks enter this industry, fewer and fewer valuable companies will be available, and we have no right to enter the remaining huge profit-making projects.
This means that the company's profit points will become less and less, and even in the current profit state, we have a problem: how to remit profits to the parent company. Logically speaking, the profits brought by capital should naturally be returned to the parent company's books when the parent company has invested. However, foreign exchange controls are implemented in China. If each profit is to be remitted, it must apply to the Foreign Exchange Administration. Each application is scheduled for at least three months, and sometimes the approval time span is even longer. Even if the application is submitted this year and approved next year, it will be approved.
Each company has its own financial system. The profit expenditure of that year has been reflected in the account book, but the accounts have not yet been in place and are still waiting for approval and release at the State Administration of Foreign Exchange. The financial system requires that the amount must be entered into the accounts before the shareholders' meeting that year, but foreign exchange controls have ruined all these regulations.
Since the profits are not immediately available, the finances of each company cannot even make the accounts, because all profits must be affected by the exchange rate. It is possible to calculate according to the exchange rate on the day the account is booked. The company is profitable. However, after the Foreign Exchange Administration approves your money to enter your pocket, and after converting it at the exchange rate on the day, you will find that the company has done nothing and has lost money instead - how do you think this account is done?
Therefore, the only way to avoid the State Administration of Foreign Exchange and avoid exchange rate risks is to set up a joint venture to allow the joint venture to purchase equipment from abroad. The amount of the purchase of equipment may be the company's profit in the year. After the money is remitted, the company's profit is equal to the account. Whether the joint venture is profitable no matters. We can declare that the joint venture goes bankrupt immediately. Anyway, the company's profit has been accounted for.
For investment companies, a luxury car repair club is the most suitable project, because such companies need to continuously purchase luxury car accessories from abroad, and a luxury car door may cost hundreds of thousands of dollars, and domestic luxury cars are basically more than three times or even ten times the price of international luxury cars. Such companies are convenient for us to continuously transfer profits because it is very reasonable and very necessary to purchase luxury car accessories from high prices - three times the price of the international market and ten times the price."
Ms. Jian was silent for a moment: "I understand, you mean: It doesn't matter whether Li Xiang's company can make a profit. We are just using this industry to remit profits."
Wang Cheng praised: "Ms. Jian is indeed smart. As I said just now, there will be fewer and fewer domestic companies worth acquiring. We will eventually take the step of acquiring domestic companies and selling them to domestic companies. This is a 'complete domestic merger and acquisition case'. It is all RMB transactions. If the profits generated are exchanged into foreign currency, it will be a difficult march. In order to avoid this march and to avoid this difficult journey, Li Xiang's luxury car club is a project that must be invested in. Apart from that, we have no choice."
Miss Jian was silent for a moment on the other end of the phone and immediately said, "But I have inspected Li Xiang's company. According to what Li Xiang said, the real estate boss wanted to enter politics, so he resold part of the land to Li Xiang at a low price. But after I inspected, I felt that this was unreliable.
I once drove to Li Xiang's land at night to conduct a sample inspection. The land was located in the suburbs of the city. The real estate boss mentioned by Li Xiang purchased a large area of land. The already-built community has more than 100 brick-concrete buildings and more than 20 high-rise buildings. The land area distributed to Li Xiang is not large, accounting for about one-fifth to one-sixth of the entire development zone.
I stayed in that community for three nights and counted the lights in the community myself and found that the vacancy rate of the community was about 47%. I heard that the buildings in the community have been sold out and the boss is still building the second phase of the project. But I can calculate that if such a provincial capital city takes over a piece of suburban land, I think the land price will not exceed 130 million..."
This simplicity is really hopelessly serious. You said, you are the boss of a capital company and drove to someone else's community in the middle of the night and counted the lights on the windows. What a fool to me?
Jian Jie simply pointed out her suspicion: "The vacancy rate in the community is so high. I suspect that the real estate boss sold land cheaply because he wanted to enter politics, but because of his tight capital chain, he wanted to sell the land he acquired to ease the lack of funds - if further investigation is made, I think the truth will be revealed soon. But, do we need further investigation? There is a little doubt in capital investment, which is enough to deny the investment plan.
In any case, the price of Li Xiang's land is definitely high. I think it's reasonable for us to win at most 30 million. If Li Xiang thinks that he is not at a loss for 80 million, then he is conspiring with the real estate boss to cheat... Oh, if the company headquarters insists on investing in Li Xiang's enterprise, I think it's necessary to renegotiate and re-evaluate the land price and share ratio. I insist that buying that piece of land at a price of 80 million is inappropriate in any case."
A tough life requires no explanation.
Ms. Jian is indeed a bone demon. Wang Cheng was overjoyed by Jian Jie: "Of course, this joint venture project is the company's strategic layout, and it must be implemented without any other meaning - but the capital accounting before the joint venture... Ms. Jian is the head of the China region, and you can renegotiate according to your ideas. If you can save money for the company, I believe the company will definitely have a heavy reward... I heard that the cleaners of Goldman Sachs not long ago had an annual bonus of 2 million US dollars. The cleaners in the company have now started playing yachts. If you can save 50 million yuan in investment for the company, you can use a business plane as a private car next year."
ps: If you want to say that life is like this, luck comes, you can’t stop it. If there are talents who make money, you still have to worry about not being able to make money?
Chapter completed!