Chapter 200 Demanding Land and Policies from the Municipal Party Committee
Chapter 200 Demanding Land and Policies from the Municipal Party Committee
At 5 p.m., Ling Yun led Ni Guangnan to the municipal party committee building.
Secretary Zhang's office is on the fifth floor, facing south, and you can see Thousand Buddha Mountain when you look up.
After the secretary announced their arrival, the two were invited inside.
Secretary Zhang was reading documents when he saw them come in, so he took off his glasses.
"Lingyun, Mr. Ni, please have a seat." He gestured to the sofa. "Xiao Liu, please pour tea for our distinguished guests."
Ling Yun didn't bother with pleasantries; he simply opened his briefcase, took out Qilu Microelectronics' business plan, and placed it on Secretary Zhang's desk.
"Secretary Zhang, we want to build an integrated circuit research and development center," he said.
Secretary Zhang opened the planning document, glanced at a few pages, and looked up: "How much investment?"
"The first phase of $50 million has been secured. The first phase is mainly to set up the company's framework. It is estimated that $20 to $30 million will be invested every year thereafter, and there is no expectation of any returns in the short term."
"What do you mainly do?"
"Chip design, process development, equipment upgrades," Ni Guangnan continued. "We'll start from the low end, with the goal of building the first domestically upgraded 1-micron production line within three years."
Secretary Zhang closed the planning document and leaned back in his chair.
"In terms of policy, the city can provide whatever it can," he said. "Tax breaks, talent introduction subsidies, high-tech enterprise certification—none of that is a problem. What else do you need?"
"Land," Ling Yun said. "To build a research and development center, we need a site. It would be best if it were close to a university for easy collaboration."
Secretary Zhang thought for a moment, then stood up and walked to the wall where a map of Jinan was hanging. He pointed to the location of the High-tech Zone.
"There's a plot of land next to the Qilu Software Park, about 300 mu (approximately 20 hectares)." He circled it with his finger. "It was originally planned for a foreign-owned electronics factory, but the project fell through, and the land has been vacant ever since. How about you take it?"
"Price?" Lingyun asked.
"For high-tech enterprises, the land transfer fee will be charged at the minimum standard." Secretary Zhang walked back to his desk, took out a document from his drawer, and said, "This is the land price list for the high-tech zone. Take a look. It's over 300 mu (approximately 20 hectares), and the total price is about... over 30 million yuan. It can be paid in installments."
Ling Yun took the document and exchanged a glance with Ni Guangnan.
"We'll take it," Ling Yun said.
"There's one more condition," Secretary Zhang said, sitting down again. "Once the R&D center is built, priority should be given to recruiting graduates from local universities. At least one hundred internship positions should be provided each year."
"Sure," Ling Yun said. "We are planning to build a joint laboratory with Shandong University."
"Then it's settled." Secretary Zhang picked up the phone, dialed a number, and said, "Xiao Liu, come over here for a moment. Bring the land transfer contract template for the High-tech Zone."
Ten minutes later, the secretary brought over a stack of documents. Secretary Zhang personally made annotations on several key clauses: the land price was set at the lowest level, the payment period was extended to three years, and the municipal infrastructure was to be the responsibility of the High-tech Zone.
"Take the contract back and review it. Sign it after the lawyer has reviewed it." Secretary Zhang handed the documents to Ling Yun. "But I have to remind you, many people are eyeing this land. You need to act quickly, make sure the plans are practical, and don't give anyone any leverage against you."
"Understood." Ling Yun took the document. "Thank you, Secretary Zhang."
"No need to thank me." Secretary Zhang waved his hand. "If you can really make integrated circuits a success, it will be a good thing for Jinan and Shandong. I'm just doing my job."
It was already dark when I left the municipal party committee building. The wind was cold in early winter in Jinan.
Ni Guangnan held the contract documents tightly in his arms, as if he were holding something precious.
"Three hundred acres," he murmured, "enough to build several laboratories."
"That's not enough." Ling Yun opened the car door. "We'll need to expand it in the future."
"That will cost a lot of money. We should spend it frugally and make the most of it."
"Don't worry about the money. I have a way to solve it. I'll make sure you win big. Whether it's technology-industry-trade or trade-industry-technology, the key issue is limited resources and limited funds. With me, funds are not a problem."
On the bus, Ni Guangnan remained silent, simply gazing out the window. The streetlights receded one by one, casting shadows on his profile.
"Lingyun," he suddenly said, "I'm sixty-four this year."
"Um."
"The thing I want to do most in my life is to see China have its own integrated circuit industry." Ni Guangnan turned around, his eyes shining brightly in the dimly lit carriage. "I used to think I might never see it. Now... it seems like there's some hope."
"You will see," Ling Yun said. "And you will see even more. Twenty years is enough for us to close the gap with developed countries!"
"You're that confident?"
"You have to believe that we can improve slowly. They will stop and wait for us, or even come back to meet us," Ling Yun said with a mischievous grin, leaving Ni Guangnan somewhat confused.
It wasn't until 20 years later that Ni Guangnan understood the meaning behind Ling Yun's wicked smile.
The next morning at eight o'clock, the finance department door was open.
Section Chief Wu was checking the accounts, with three ledgers spread out on the table. He was using a calculator with his right hand and flipping through vouchers with his left. Hearing footsteps, he looked up.
"President Ling."
"How much money is in the account?" Ling Yun asked directly.
Section Chief Wu took out the monthly report from the drawer, turned to the last page, and pointed to a number: "As of yesterday, the bank deposits were 28,763,452 yuan. Adding the outstanding bills receivable of 4,200,000 yuan, the total is 32,960,000 yuan."
"What about accounts receivable?"
"Four million three hundred thousand, all within three months, no major problem." Section Chief Wu turned another page. "Accounts payable are one million eight hundred thousand, mainly for raw materials. Next month's wages and utilities will cost about one million two hundred thousand."
Lingyun pulled up a chair and sat down.
How much profit did the electronics factory make this year?
Section Chief Wu opened another ledger and slid his finger down the entries.
"From January to October, mouse and keyboard sales revenue was 64 million, cost was 42 million, and gross profit was 22 million. Computer assembly revenue was 9 million, cost was 7.6 million, and gross profit was 1.4 million. Internet cafe management system sales revenue was 3 million, with negligible costs."
He paused, then added, "Adding in government project revenue of 12 million, with a gross profit of about 8 million, the total gross profit is... around 31.4 million."
"What about taxes?"
"High-tech enterprises pay a reduced rate of 15%, plus some deductions, with actual payments amounting to approximately 3.7 million."
"Net profit?"
"Twenty-seven million seven hundred thousand. But this is the book profit, not including fixed asset depreciation and bad debt provisions."
Ling Yun nodded: "Do you have enough cash?"
"That's enough." Section Chief Wu closed the ledger. "But President Ling, with so much cash in our account, shouldn't we do some financial management? Just leaving it in the bank earns us hundreds of thousands in interest every year."
"No need," Ling Yun said. "I need the cash immediately."
"Where will it be used?"
"Buy land and build buildings."
Section Chief Wu was taken aback: "We're going to build a new factory?"
"No, build the group headquarters." Ling Yun stood up. "You work out a cash flow model, calculate based on a 30% revenue growth over the next three years, reserve enough operating funds, and the rest can all be used."
"How many?"
"At least twenty-five million."
"That much?" Section Chief Wu's hand stopped on the calculator. "Then we only have a few million in working capital left in our accounts."
"Enough to keep things running smoothly." Ling Yun glanced at his watch. "Give me a cash flow forecast this afternoon."
"Yes, Mr. Ling."
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