Rebirth: The Financial Giant

The meaning of Lu Ming's words is very clear. If he chooses to play the house, sorry for the huge tax on Sheng Capital's side that day. The company would rather spend the money to buy back the company's stock to boost the asset price of the company itself. The rise will not be reflected in the stock price and will not be reflected in the income statement, so the social security funds and pension funds across the country will benefit collectively.

You must know that Tiansheng Holdings' institutional shareholders have social security funds from all over the country, and the profit reaction is equivalent to the inclusive national price in the stock price, because the major social security funds can be cashed out at a high level.

It is reflected in the income statement and it is a huge amount. This actually means that most of the dividends from the development of the enterprise fall on Ningzhou City. By paying a huge amount of tax, this tax is removed from the part that goes to the central government. Ningzhou is still the take the lead.

The reason why it is so generous to cash in profits and turn over such a huge tax is to free Ningzhou from its dependence on land transfer funds to maintain its finances. Tiansheng Capital also has the ability to do so.

According to the data, in 2017 last year, the land transfer fee income of Ningzhou City was 102.3 billion yuan, the highest in history, while in 2016 it was only 61.9 billion yuan, a year-on-year increase of 65.26%.

Even so, the scale of tax paid by Tiansheng Capital in the first quarter of this year exceeded the total income of Ningzhou's land transfer fees last year, which is the biggest reason for being so tough.

Of course, the top-line profit in the first quarter of this year was mainly the result of the return of overseas profit harvesting. It would be incredible to achieve this number every quarter.

Li Fuliang said with a sigh, Mr. Lu's remarks are thought-provoking. In recent years, Ningzhou City has indeed made great strides after its finances have been greatly improved, especially in the past year.

The positive translation of the words step too big means that the money suddenly increased so much, the spending is very high, and the days are getting richer. In fact, it is a great waste.

Taking a step back, it is a skill to waste money, but the biggest problem is that the land sale is amplifying the debt leverage.

Discount future cash flow to the current period to spend, what about future debt repayment?

That's what he said, but Li Fuliang was shocked when he heard Lu Ming's words just now. He also knew that Lu Ming had the next sentence to say, that is, Tiansheng Capital has another option - relocate!

Such a scale of taxation is also destined to be impossible for Ningzhou to let go.

At this time, Lu Ming said in an orderly manner: The profits of Tiansheng Capital are not generated out of thin air, but come from investing in the development of major enterprises and sharing their development dividends. How can Tiansheng obtain profits if they can't get up? Foreign leeks are also It's not easy to cut, Lao Mei is now all kinds of strict guards.

In fact, it can't be prevented, but it certainly can't be said so clearly.

Lu Ming continued: High costs will eventually destroy the competitiveness of enterprises. Besides, there are high-speed railways, networks, and expressways. The era of energy distribution is over, but it will not be concentrated in high-cost places. The control of housing prices is the envy of the people all over the country, and it goes without saying that the people of Ningzhou have the most say.

These words finally made Director Li smile happily. This political achievement is very impressive and beautiful.

Lu Ming continued: Nevertheless, it is difficult for Ningzhou to have large industrial land. You all know the development of large-scale industries, and every company needs a certain amount of space for development. The most important thing for modern industry is to have Land is exchanged for industrial growth, and now land is less and less and more expensive, and the possible space for industrial growth is constantly being compressed.”

With that said, Lu Ming twitched his fingers and said, Some people here want housing and living facilities, but if the living facilities are too expensive, the enterprises can't afford them, and how can the industry develop if the cost is too high?

Li Fuliang and the others nodded without saying a word, unable to refute.

Lu Ming continued: Entities represented by Anshi Group are still an important pillar of our city, and a sluggish entity will deal a heavy blow to our city's future economic growth.

Li Fuliang nodded and said: It makes sense. At the same time as the real estate industry is hot, we really need to be alert to the problem of the sharp decline in investment in the real manufacturing industry.

Lu Ming looked at the other party and said in an orderly manner: Although the sales of commercial housing in our city has been booming recently, especially in the city center, it has not only brought huge profits to developers, but also increased municipal tax revenue, but the drawbacks behind it are also obvious. Tianyu Yunchi, a new energy vehicle downstream company incubated by Sheng Capital, is also in Ningzhou, which has no impact now but is not difficult to find in the foreseeable future.”

First of all, the rise in housing prices has raised rents, which has increased the living burden on young people such as fresh graduates, which is equivalent to crowding out some talents to our city for employment and development, and Tianyu Yunchi will not be able to recruit enough talents or labor costs. Uplift, this problem also includes other enterprises in the city. At the same time, commercial offices and rising rents have been raised, and some enterprises cannot survive because of the high cost and have to relocate in whole or in part. The increase in volume has a negative impact.”

Secondly, a large amount of research data from our company's investment research and analysis department shows that some business owners have begun to invest funds in real estate development because of the decline in the profitability of the manufacturing industry in recent years. The withdrawal of funds from the real industry will make the city's industrial economy suffer. Strike, no jobs from industry?

The next thing is the debt leverage of residents. At present, some home buyers in the market use leverage such as intermediary companies, crowdfunding, P2P, and even down payment loans to raise a down payment to buy a home. Even if these debt leverage helped home buyers to a certain extent in the early stage, But it also aggravates the debt burden. Once the house price declines, these people are more likely to abandon the house and cut off the supply due to the low capital contribution, which will further increase the mortgage loan risk of the bank, which will be further transmitted to the real economy.

Tiansheng Capital's super earning power can indeed enable Ningzhou to live in housing without speculation, and Lu Ming proposed that Ningzhou's housing prices must be strictly controlled. A good geographical location and the foundation of people and people, if you want to attract real talents to work in Ningzhou, then your city's attractiveness must be well-placed.

Specifically, isn't it the cost of living and quality of life in Ningzhou?

Further, there are issues such as housing conditions, education level, medical technology, employment opportunities, and development space.

The two sides communicated in this lounge for more than an hour, exchanging a lot of opinions and suggestions. At about 19:30, Lu Ming just went back to his house, and he stopped going to the company and went home directly.

Ningzhou City quickly attracted great attention to this, and there was still a meeting in the evening. Ningzhou is now the time to choose between fish and bear's paw. Whether it is fish or bear's paw, only choose Neither one is perfect. Having both is what Ningzhou wants most, but it is impossible to achieve.

In the end, he made a difficult choice and chose Tiansheng Capital.

Such a decision is actually the best solution for Ningzhou City, and it is bound to be the choice. The reason is that Tiansheng Capital can move out, but the land in Ningzhou City will not run away, and it will always be there. .

Choose Tiansheng Capital first, and let’s talk about it. Even if there is the worst situation of relocation in the future, it will not be too late to sell land at that time, and the transfer fee will be more expensive as the city develops, and then take a step back even if the property market plummets in the future In the current situation, Ningzhou's debt has not increased on a large scale, and the house has not doubled and skyrocketed.

Therefore, there is no reason not to choose Tiansheng Capital. The reason why it is difficult is that the budget expenditure has to be compressed. Many projects that have been drafted have to be cut off due to the budget reduction, or they are temporarily put on hold indefinitely.

Lu Ming will still pay attention to this matter. If Ningzhou's house and debt are still soaring rapidly, there is nothing to say. Either the company will relocate or the company's income statement will be compressed.

But for Lu Ming now, the focus has shifted to the company's shareholders meeting.

As time entered May, Tiansheng Capital's annual general meeting also arrived as scheduled.

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