Chapter 362: Doomed to early losses

In the Xinghai Group office, Han Songlin met Zheng Lin, who had arrived tired and dusty. A smile appeared at the corner of his mouth. After taking a closer look, he couldn't help but frown slightly: 'You've lost weight!' Zheng Lin said in a bad mood, 'And I've darkened!'

'You used to be too white, and a little darker is quite good.'

Zheng Lin rolled her eyes, what kind of words are these? Don't you know that white covers up three uglinesses? As long as the facial skin darkens, the shortcomings of the entire face and so on will be infinitely magnified.

Then it will look very ugly.

'You told someone to pick me up from the airport and take me to the company, why exactly?' Zheng Lin had originally planned to say that she would go home and rest for a while, but was told by the driver that Han Songlin had told her to come to the company first.

Han Songlin ignored Zheng Lin's slightly angry face and took out a file from the table: 'This is the file on Changxing Machine Tool. I need you to hurry up and bring someone to Changxing Machine Tool to conduct research.'

Zheng Lin gritted her teeth and looked at Han Songlin fiercely. Bosses are really inhumane.

After taking over the file on Changxing Machine Tool, Zheng Lin flipped through it. It had been collected before.

'It seems that, in the end, Changxing Machine Tools has not escaped your clutches,' Zheng Lin said with a sigh. The last time, Salt did not agree to the acquisition by Xinghai Group, but after all the twists and turns, it came back.

Han Songlin rolled his eyes and let Zheng Lin experience it for himself: 'What do you mean by clutches? I acquired Changxing Machine Tools for the development of our machine tool business. Who else but me will sacrifice themselves for the cause of China's machine tool industry?'

This is not a lie at all!

China's machine tool enterprises once achieved the world's number one sales, but so what?

The number one position was all based on the number of low-end machine tools, and in the field of high-end machine tools, China is still controlled by others.

No matter what industry, as long as it is controlled by others, it is unacceptable to us.

We have a huge population, which is an unparalleled advantage; we can play the whole industrial system, and we can develop in all industrial categories.

Moreover, we can all develop very well.

Power is indeed a natural thing for us.

At the beginning, Changxing Machine Tool will naturally focus on mid-to-low-end machine tools, but research and development of high-end machine tools will continue.

The future goal of Changxing Machine Tool will only be to focus on the high-end machine tool sector.

'Okay, you're the boss, you're right! I'll take someone to Changxing Machine Tool for research. Is that all?'

'That's it!'

Zheng Lin sighed, and then she said to herself, 'Okay, I'll go to Changxing Machine Tool tomorrow.'

Han Songlin nodded. The acquisition of Changxing Machine Tools could not be rushed, or at least, the other party must not be made to feel that he was in a hurry.

It was good that Zheng Lin would go and take a look first.

When Zheng Lin led a team to Changxing Machine Tools, the news that Xinghai Group was going to acquire Changxing Machine Tools also broke out instantly.

Objection?

There were indeed people who objected within Changxing Machine Tools, but the vast majority of people had a sense of anticipation.

The news of Xinghai Group spread quickly throughout Changxing Machine Tool Factory thanks to the efforts of those who wanted to see it spread.

People realised that Xinghai Group was actually very powerful.

Fule Wines and Fuxing Industries were both part of Xinghai Group.

Many people had bought motorcycles made by Fuxing Industries.

In addition, Jiangzhong was so close to Yandu that news and other information spread very quickly.

Naturally, it was clear that Fuxing Industries offered very good treatment.

Nowadays, people don't want to talk about how good the treatment is, as long as they can have work, get paid, and support their families, that's fine.

Zheng Lin went to Changxing Machine Tool for research, and would come back every afternoon to brief Han Songlin on the situation.

'Changxing Machine Tool is considered to be at the upper-middle level in the domestic machine tool industry.' When Zheng Lin talked about this, she couldn't help but frown and then expand on it. If the technical level was high, Xinghai Group wouldn't have been in the running.

'However, the current situation of the entire domestic machine tool industry is not good at all. Faced with competition from foreign machine tools, domestic machine tool companies that are technologically backward simply cannot compete.'

The only magic weapon that domestic machine tool companies can use to compete at this time is price!

However, price competition is not applicable in all industries, and it also depends on quality.

The prerequisite for price competition to be advantageous is that there is not much difference in the quality of your products, and then consumers will naturally choose the lower price.

'If we acquire Changxing Machine Tools, we have to be prepared to do a good job and be prepared for substantial losses in the next few years!'

After saying this, Zheng Lin waited for Han Songlin to make a decision.

Han Songlin leaned back on the sofa: 'Can we afford these losses?'

'It depends on you, how prepared you are to lose money.'

'A loss of 200 to 300 million yuan a year is, I think, still acceptable.'

Zheng Lin silently looked at Han Songlin and after a long while said, 'Rich people are so domineering!'

Han Songlin snorted, knowing that Zheng Lin should be the one who understands the financial situation of the entire Xinghai Group.

"How much does Changxing Machine Tool owe now?'

'In terms of debt, it mainly owes 30 million yuan in bank loans, another 20 million yuan in payments to Jiangzhong Iron and Steel, and some payments to other suppliers. It's not much, just 8 million yuan.'

8 million yuan is not much?

Han Songlin looked deeply at Zheng Lin, who was getting a little carried away!

'In terms of staff wages, a total of more than 2.3 million is owed.'

'What about corporate assets?'

'In terms of corporate assets, the land, factory buildings and equipment amount to 75 million yuan.'

Han Songlin asked doubtfully, 'Is that all?'

'All? Naturally, technology is not included in the calculation.' Zheng Lin laughed lightly. When buying a state-owned enterprise, when would technology be included in the calculation?

It's all about land, factories, and equipment.

Han Songlin naturally would not say that the technology should also be included.

'I have already talked to Yandu, and Xinghai Group will bear all of Changxing's debts, and in addition, we will give Yandu 14.7 million, and we will be able to incorporate Changxing Machine Tools into our group.' Zheng Lin's negotiations with Yandu went quite smoothly; Yandu obviously also wanted to get rid of this hot potato as soon as possible.

'Then complete the acquisition as soon as possible, so as to avoid any more complications!' Han Songlin was not going to say anything about continuing to drive down the price.

He had high hopes for Changxing Machine Tool.

After all, would Xinghai Group be able to revive Changxing Group and make it even better?

Thinking about this, Han Songlin couldn't help but look out the window, where there were still some yellow leaves on the branches.

In March, it will be spring, the season when all things grow.

Zheng Lin: 'Yes, by the way, I hope we can organise a signing ceremony for the investment project in Yandu.'

He looked at Han Songlin and continued, "You should come and give a speech at the ceremony.'

'Yes, I'll be there," Han Songlin said nonchalantly. Jiangzhong is not far from Yandu, just a little over 30 kilometres away.