Chen Feijin continued to complain." The main pressure we are currently facing is the cost of raw materials. We have to spend a lot of money to purchase raw materials. This will involve a problem of capital recovery.”
"If our factory is doing domestic business, we can get money very quickly after selling the goods. There won't be any pressure in terms of capital recovery. However, they were in the export business now. It would take at least two to three months to send a batch of goods to Yilan, including the customs clearance time. After the other party paid, it would take a long time to settle the exchange. The speed of returning the funds was really too slow.”
Xia Kezhong thought about it. This was the case. For a privately contracted factory, funding was indeed a big problem.
After all, without the foundation of a state-level enterprise, if the payment was not paid in a few months, the funds might be broken.
Chen Feijin continued to act pitiful." Director Xia, to be honest, I contracted the factory with a loan. I didn't delay the salary of my employees for a day, but the interest rate of the bank is too high. Once the capital chain breaks, our entire company might be finished in an instant.
"So I hope that the government can give us a policy to reduce the income tax of state-owned enterprises. It won't take too long. A year is enough. When the funds for this batch of gas tanks are received, the operation of the company won't be difficult.”
Chen Feijin's words were both true and false.
It was helpless to act pitiful appropriately.
Xia Kezhong obviously didn't understand the real situation of the steel plant. In Xia Kezhong's opinion, the steel plant was just a small private factory. It was only natural that it had a weak foundation. It was also very reasonable for Chen Feijin to complain that the funds were returning too slowly and the steel plant wouldn't be able to hold on.
Xia Kezhong thought for a moment and then nodded."If it's just a one-year tax reduction, I don't think there should be any problem in principle. After all, you're a company that earns more than 40 million dollars in foreign exchange. It's also necessary to give you some policy support.”
"How about this? You write a written report and I'll report it to my superiors.”
It might be difficult for a large state-level enterprise to request a tax reduction, but it was much easier for a local enterprise to contract a factory.
Xia Kezhong felt that as long as he reported it, the leader would have no reason to disapprove of the 40 million dollars in foreign exchange earned from the export.
Chen Feijin was naturally happy to receive a year of tax relief.
The corporate income tax reduction was not a policy that anyone could get. Chen Feijin could get such preferential treatment, thanks to the good timing.
In the mid-to-late 1980s, the country had been in a trade deficit for many years, and its foreign exchange reserves were getting smaller and smaller year by year. Therefore, the policy support for export-earning enterprises was relatively strong. As long as the enterprises could bring in foreign exchange, it did not matter if the country suffered a loss.
In the 1990s, when China's trade entered an era of surplus, export enterprises would at most have some export tax refunds. Coupled with some local support policies, it would be almost impossible to get a policy of reducing corporate income tax.
Chen Feijin continued," My second request is that I hope to keep some foreign exchange reserves. After that, our factory will purchase a batch of equipment. I don't ask for much.”
Xia Kezhong thought for a moment and said," It's not a big problem, but the amount can't be too big. I'll keep you a million dollars at most."”
"Enough, enough."
A million dollars in 1988 was worth a lot. It was worth more than ten million dollars.
"One last request…cough cough, can you publish our century in the newspaper?”
Xia Kezhong smiled. Young people were still young and loved to be in the limelight.
"Alright, this is simple." Xia Kezhong agreed immediately.
"Ahem, Director Xia, I have a small request. When you publish it in the newspaper, don't mention the specific name of our factory, and don't write my specific name.”
"Why?" Xia Kezhong didn't quite understand. He had worked so hard to publish it in the newspaper, so why did he have to conceal his identity?
Chen Feijin explained," That... I'm a small business. People are afraid of being famous, pigs are afraid of being strong. It's not good to be remembered by others. If a relative comes to borrow money, my life will be difficult."”
"Besides, it's only a small achievement now. It's not worth learning and bragging about. If it's just luck this time and leads us astray, that won't be good.”
"I didn't expect you to think so much." Xia Kezhong laughed.”
In fact, Chen Feijin only told half the truth.
Indeed, he did not want others to know that his factory had earned a lot.
Of course, the real reason was that those gas canisters were destined to become heavy weapons. When the time came, there would be a culprit and a debt. If they were to track them down, it would be troublesome.
Chen Feijin did not want to be targeted by the Americans so early and become the first batch of companies to be punished in the future.
In the evening, Zhang Antao came back from the Provincial Party Committee Office.
Today, the old man happened to be coming from Beiping. He decided to have a good gathering with the old man.
Zhang Antao only saw his grandpa when it was time for dinner.
Old Master Zhang was usually very busy with work. Even when he came to Guangzhou this time, he had a lot of things to do.
The father and son didn't have much in common, so they started talking about work.
"The preliminary statistics of the country's foreign trade last year are out. The trade deficit is close to 13.9 billion US dollars! If this continued, the country's foreign exchange reserves would be emptied.”The old man said worriedly.
Zhang Antao nodded." I remember that the deficit was even bigger the year before last. It seemed to be close to 16 billion USD. Compared to the year before last, last year was better."”
"Better? The import did not decrease at all. Instead, it increased by billions of dollars. Thanks to the relatively large increase in the export, the trade deficit was not as large as last year.”
The old man let out a long sigh and continued,"But we are only selling raw materials! This is the seller's foundation!"
"Yeah, we can't just rely on selling raw materials.”Zhang Antao nodded.
In order to appease the old man, Zhang Antao took out a document from his briefcase.
"Dad, this is the trade volume of the Guangzhou Fair for the past two days. It just arrived. I haven't had the time to show it to you yet."
The old man didn't mind. After deducting the transaction amount of the raw materials, it was at most tens of millions of dollars.
He flipped to the last page.
"The sales of industrial products on the second day…more than 50 million dollars?”The old man was a little puzzled. According to past experience, the turnover of industrial products on the second day would be at most 10 million, far from the first day.
After all, other than selling raw materials, there was really no other good product in the country.
The old man immediately took a closer look and found that one company had monopolized more than 40 million dollars in transactions.
"Dongfanghong Steel Plant? Was he selling raw materials again? No, they are selling gas cans."
"Gas cans are so popular?" The old man found it unbelievable.
"An Tao, come and take a look." The old man frowned and called his son over to look at it together.
This book comes from：m.funovel.com。