Siheyuan (courtyard house): My name is Shazhu!

Chapter 411 Let's be careful with our profit reporting!

He Yuzhu and Zhao Youcai returned to Hong Kong at almost the same time, with their planes landing three hours apart.

Zhao Youcai arrived in Gangcheng first and went to work at the company immediately, which was very conscientious of him.

He Yuzhu returned by private jet and went home to rest immediately. He hadn't seen his family, especially his children, for almost a month.

"How many goods did you buy with 'a piece of cloth' this time? You seem very satisfied," Zhou Songyu asked.

"They've spent nearly 18 billion US dollars on various supplies. They didn't bring enough money, so they took out loans to buy them. This is just the first time; they plan to keep buying!"

"Aren't they very rich? Why do they need to take out loans?"

"Having money is just an illusion. It's only been seven years since the oil price surge, and they don't have much savings."

With oil prices rising again, their good days have finally arrived. From now on, they'll be truly wealthy, making money while lying in bed.

"That seems to make sense. Their time to make money is just beginning. What will they focus on buying this time?"

"We sold the freshwater treatment plant and the firecrackers to them. These people are smart. Don't tell anyone about the firecrackers."

"They won't tell us when they go out. Can we earn half the money?"

"The cost is less than two billion US dollars, but the profit can be at least 15.7 billion."

"So many?"

"That's all. You don't understand our company's earning power. Don't believe the profits we report now; they're highly inflated."

"Including this area?"

"There's still a bit less here. Taxes are reported based on 15% of fixed asset profits, but the actual average profit margin is over 70%. Less than a quarter of the profits are reported for tax purposes; it's impossible to give it all to top earners."

"So, does that mean our company's profits have already exceeded HK$100 billion?"

"Of course, our company basically doesn't sell low-end products. Even our low-end cars are considered mid-to-high-end cars internationally, so the profits are naturally high."

Are we still leaving the port city?

"Apart from the real estate and finance industries, they will all leave here to build new factories. The current factories are old and can no longer keep up with the pace of development."

Upgrading is not as good as rebuilding. Even as a free port, it is not as good as some other places. The logistics here are still good, and we already have a suitable company.

With shipping and maritime transport under our control, manufacturing can leave!

"You've already made all the arrangements. I don't understand these things. Prices here are too high. I've heard that many small factories have moved north to open new factories, which is very beneficial."

"At least the labor costs are very low, only 1/10 of what companies here have."

"Their prices are so low. Last time I went back, I ate out, and breakfast cost less than a cent. Eating roast duck for ten dollars is considered a luxury."

"Their wages are also low; their average monthly salary is probably around sixty yuan."

"That's too low. Will our company raise salaries this time?"

"Of course we need a raise! And there's the annual bonus too. Last year, our company's total profit exceeded 380 billion US dollars, so a raise is just a small amount."

"So high? Is it gold and oil?"

"Gold and oil are still profitable for the investment department, but money is no longer very meaningful to our company."

"What about the total investment in your hometown?"

"Seven hundred billion US dollars, what a terrible exchange rate!"

"Just bear with it. Who told you to make such a large investment? Aren't you afraid they'll back out?"

"Go back on your word! They're the ones who will suffer, and they won't go back on their word. You're underestimating some people too much, underestimating them in every way."

"Is it really that exaggerated? I really didn't see it."

"Look again in thirty years. What haven't our ancestors done thousands of years ago? They were the true elite of the elite!"

"I can wait until thirty years later."

"Zhu Zi, has General Manager Zhao made arrangements for the people in our village?"

"It's been arranged long ago. Women can choose to work in beverage factories, food factories, or instant noodle factories. Men can go to other factories, which are not far away and have rooms for couples. Children can also go there; there are schools nearby!"

"Educated people who go to electronics factories, as long as they have the ability, will be promoted faster than others. As long as they don't cause trouble, they'll be fine. Otherwise, we have the right to fire workers."

"Once everything is arranged, that's fine. Not many of them are educated, and they all have jobs. I've been away for twenty-five years, and I don't know many young people anymore."

"If you want to go back and stay for six months, and let the rest of you do more side jobs, they'll earn more money. Our company will buy them out."

"I'll listen to you."

.......

"He Sheng is back. When I went there this time, they were very enthusiastic and their enthusiasm was almost frightening."

They originally had only four projects, but this time they've built almost all of them. They're also afraid of losing everything, so they're not building factories in their city.

These are their various plans, very comprehensive. They are responsible for presenting them, and they take these matters very seriously; there haven't been many objections.

"Everyone is watching to see the results. I've given a lot of money and goods to my hometown, so they're considered family. They're happy to see the results and learn from the experience. Why not?"

Many small factories have already opened in Shenzhen, but they don't have the same advantages as us. What good is complete privatization?

"We haven't invested in the Guangzhou area, but it seems like we should consider doing something there."

"Yes, we have large-scale chemical plants, high-end fabric factories, OEM and branded clothing; our sales overseas have been steadily increasing."

"We still need to leverage their chemical industry foundation and regional advantages."

"Yes, we can also invest in their port construction in the future."

"Port construction will take many years, and loans are not worthwhile. At least you need to take a share. This is a long-term money-making project."

I have invitations from four other cities to build five-star hotels; these will all be excellent locations in ten years.

"It's not difficult to build a five-star hotel on a few plots of land after a few years."

"I also plan to build a grand hotel again in eight years. Mr. He, how many supplies did you buy with that 'piece of cloth' this time?"

"Less than 18 billion US dollars!"

"Our profits?"

"Subtract two billion US dollars."

"Almost 160, that's not a small amount, but these 'pieces of cloth' are still not as valuable as they will be twenty years from now."

"They're just starting out, and we'll have plenty of contact in the future. They appreciate our products and will buy from us as long as there are no other issues involved."

Moreover, the "cloth over their heads" phenomenon isn't limited to just one country; oil isn't running out, and other countries will come too.

We're giving our employees a raise of 200 each, which is their annual salary. Externally, we're saying we sold 3.2 billion US dollars worth of goods.

"I'll relay the message; this time it's completely in line with the wage levels here from the early 1980s. What about Malaysia?"

"They raised their wages by 10%. The wage level there can't compare to that in Hong Kong, and you don't need high wages and high living costs. Half the wage level in Hong Kong is enough."

"The income in my hometown is still more suitable!"

"That's because cities whose per capita annual income hasn't reached 1 yuan in 5 years will only be a little over one-fifth of this number."

"Deindustrialization of a city is acceptable, after all, it's not a single country."

"That's true!"

When Zhao Youcai announced a 200 yuan raise and paid a year's salary in cash, almost everyone was used to it.

They secured another massive order worth 3.2 billion US dollars, which is the envy of every company—a dream come true, but one that few can achieve.

All I can do is wonder why it wasn't me!

I wonder how much profit they'll make this time? Dongda Group's profits are high, but I don't know how much their fixed assets are.

If a company's main entity is not publicly listed, it's difficult to evaluate it, and they simply won't let you see it.

The real estate sector of Dongda Group, apart from motorcycles, does not have any manufacturing or pharmaceutical companies listed on the stock exchange.

Raising funds through the stock market is for companies with little money; Dongda Group has no need for it at all, as it has more money than it can use.

Otherwise, how could they dare to say that the new airport would be built in three years and that money was not a problem?

The annual charitable fund invested in schools and hospitals reaches HK$5 billion, and will increase in the future.

This also shows how fast prices are rising in the port city!

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like