20 years of restarting life

Chapter 2969 Sun Hongji

While Zhao Changan was visiting the vehicle factory, Gu Dacong and Tian Yuewen hurriedly arrived. After some greetings, they continued the tour. After walking through the processes in each workshop of the third factory, it was already past six o'clock in the evening, and the setting sun was disappearing behind the mountains in the west.

Then drive to Luoyi Hotel in the city center.

Zhao Changan probably wanted to drink in the evening, so he didn't drive and sat with Gu Dacong. As a result, Sun Hongji came up to him again and drove Gu Dacong's secretary into his car and sat in the passenger seat.

"You, if you have something to say, please say it now. Don't wait until we are at the dinner table to disturb others."

Gu Dacong said Sun Hongji with a smile.

Zhao Changan could tell that Sun Hongji had some ideas, and he had obtained Gu Dacong's nod before. He smiled and said, "We are all family, so just tell me what you have to say, Brother Sun."

As a national key special vehicle group, Luoyi Yituo has experienced a slump in sales of its products in the field of civilian vehicle machinery in the past two years due to the easing of the international environment and corporate reforms.

In addition to the pressure of a large amount of triangular debts, a large number of retired employees, and many equipment from the 1960s and 1970s that need to be eliminated and updated, the state requires enterprises to exercise subjective initiative, be self-reliant, and not rely on others for everything. It is difficult to turn a big ship around, so the company's operations have been difficult in the past two years.

"Mr. Zhao, you also know that YTO has 3,000 to 4,000 retired employees due to illness, and nearly 30,000 employees in service. The pressure is very high, especially during the New Year holidays. The workers want to have a decent New Year, which also maintains the stability and unity in the city."

Sun Hongji smiled bitterly and said, "Today is Laba Festival. When I came out this morning, the employees I met all said they were going to make white porridge today. I was so embarrassed that I blushed."

Zhao Changan still didn't understand what Sun Hongji meant. Although Yinnan Luoyi Vehicle Factory was currently performing well, the company itself was highly in debt. Yinnan Mingzhu held 60% of the shares, Luoyi YTO held 25%, and Luoyi Local Asset Management Office held 15%.

As far as Zhao Changan knew, after the vehicle factory signed this big order, YTO took a copy of the contract to the bank and borrowed 80 million yuan for YTO's emergency funds.

The bank was not stupid either. It signed a strict contract with YTO and the vehicle factory. If YTO could not repay the loan with interest within one year, the bank would deduct the money from the vehicle factory's account.

The total value of the Persian Gulf order is 1.2 million U.S. dollars. The gross profit of the vehicle factory can reach 60%. After deducting labor, water, electricity, equipment depreciation, office expenses, and donations - after all these factors, the remaining profit is about 35%.

Because all the products are exported, and the local government of Luoyi participates in the share dividend, the tax paid is about 5%. The net profit of this batch of orders can reach 30%, US$3600 million, nearly RMB 3 million.

Even if all of it were distributed as dividends, YTO's profit would only be 7500 million.

As for the Vehicle Plant No. 1 and Plant No. 2, the sales of vehicles have not yet formed economies of scale and are basically in a state of slight profits.

In other words, Sun Hongji had already taken all the profits from this order in advance.

Not to mention that there won't be a penny of dividends before the New Year, if the first branch of the vehicle factory (low-speed light trucks) and the second branch (three-wheeled motorcycles) cannot create good results next year, and the third branch cannot get new orders of sufficient volume after completing the order in the Persian Gulf, the vehicle factory will not be able to distribute dividends next year.

Instead, they should use that little profit plus some working capital to repay the bank debt that is due, and then take out a new loan.

So Zhao Changan was a little confused about what Sun Hongji was trying to do by saying these things to him. As for the purpose, he didn't even need to think about it, in one word, 'money!'

"Brother Sun, if you have something to say, just say it directly. There's no need to beat around the bush. If it works, it will work. If it doesn't, I can't do anything about it."

Zhao Changan is not a fool. Although he does not mind the industry in Luoyi now, after all, this is just an early move for future industrial layout, but he also has to consider the feelings of the business staff here.

So it is impossible to say everything.

There was a hint of disappointment in Sun Hongji's eyes, but this was also to be expected. If it were him, he wouldn't be so foolish as to fall into the trap without knowing anything, let alone Zhao Changan, this little fox.

He could only force himself to smile and say, "It's not a big deal. It's just that it's the end of the year and the factory still owes employees more than half a year's wages. There are also several years of subsidies for laid-off workers, as well as pensions and medical reimbursements for retired employees."

"Brother Sun, it's no use telling me this. You know the situation of the first and second vehicle factories. You have already advanced the profits of the orders for the third factory."

Zhao Changan frowned when he heard this. Even if Sun Hongji cried, he would never let him make plans on the profits of the third factory. He said to Sun Hongji, "If you are really anxious, I will give you a suggestion. Director Tian still has 15% of the shares."

"Haha, don't think about getting involved with Tian Yuewen. If you start doing that, the threshold of my office will be broken down tomorrow."

When Gu Dacong heard this, he immediately objected.

In recent years, various cities have been working hard to absorb these surplus laborers. Especially at the end of the year, laid-off workers from many companies will discuss together.
One of Gu Dacong's important tasks these days is to solve the livelihood issues of the common people during the New Year. He is very busy and has tried his best.

6◇9◇Book◇Bar

Especially since the First Tractor Factory is the largest enterprise in the city, involving more than 30,000 employees, laid-off workers and retired workers, he could not help but be cautious.

Besides, what we advocate now is self-reliance and giving full play to subjective initiative.
There are so many enterprises, and every one of them is in the transformation period now. Both sides of the hand are fragile, so what should other enterprises do?

Just thinking about it gave Gu Dacong a headache.

"I know. I didn't think about the profits. If we don't have the money to pay the bank, you can just deduct it. We won't say anything."

Sun Hongji's attitude was acceptable, Zhao Changan nodded.

"What I mean is, can we borrow some money from the vehicle factory temporarily to solve our urgent needs, so that the workers can have a few dishes on the table for the New Year, so that the women and children in the family can buy two new clothes for visiting relatives and have decent gifts, so that when relatives, fathers-in-law and brothers-in-law come to our house, they can have a few delicious dishes on the table and a bottle of decent wine, and the children can pay for school fees at the beginning of the year. If we really can't pay this debt, we can deduct the principal and interest from the future dividends of the vehicle factory."

Sun Hongji was a little emotional when he spoke, and his eyes became a little red.

Zhao Changan knew Sun Hongji's purpose, which was to get the $9600 million advance payment for the Persian Gulf order.

(End of this chapter)