Chapter 348 - Chapter 348: Chapter 231: A Web Novel Writer This Amazing, Wont Let People Live? (5800-word Mega Chapter)_2 (1/2)
Chapter 348: Chapter 231: A Web Novel Writer This Amazing, Won’t Let People Live? (5800-word Mega Chapter)_2
Now, the negotiations had concluded.
“How did they go?”
Shen Qianqian waited in the car for the two men, and as they walked out of the finance bureau, she asked anxiously.
These two men, she cared about both of them quite a bit.
Lin Chuan and Shen Jianhua got into the car.
One in the passenger seat, one in the back.
Lin Chuan fastened his seat belt, “Things are less than ideal.”
“Not ideal…”
Shen Qianqian pursed her lips slightly, “How much funding can we secure?”
Lin Chuan held up three fingers.
“Three million?”
Shen Qianqian’s expression hardened, and then after hemming and hawing, she was speechless.
“This matter can’t be blamed on the city administration.”
Lin Chuan had anticipated this outcome, “It’s an issue with the city’s development planning.”
From the backseat, Shen Jianhua sighed lightly and said, “I understand Director Wang’s stance. Under the current circumstances, it’s very difficult to fully support a failing steel factory to transform into a military weapons factory.”
Director Wang, that is, the head of Anling City’s finance bureau.
He had made it very clear—
Firstly, Anling City’s development plan is to become a famous tourist city in Han River Province and a well-known tourist cultural city nationwide.
There is little focus on heavy industry.
Secondly, the steel factory’s poor performance means that even if it were transformed into a military weapons factory, it wouldn’t bring substantial benefits to Anling City. The factory is small, provides limited job opportunities, and does not bring the profits that developing tourism would.
Also, a military weapons factory isn’t necessarily profitable.
The overall net margin in the military weapons industry is only about 4 percent, with very low profitability, influenced by cost pricing mechanisms, military pricing reforms, technological content, market demand, etc.
Most likely, it would lose more money than the steel factory.
Especially under the current situation, where the factory doesn’t yet have military orders, hastily investing massive funds would amount to throwing money into the water.
“Only three million, what can we do?” Shen Qianqian asked anxiously.
“Director Wang suggests that we use this three million to create a batch of weapon prototypes. Once we have some weapon orders, requesting more funds will be simpler,” explained Shen Jianhua.
In short, no unprofitable businesses.
“Three million could nearly cover replacing a few pieces of equipment.”
Shen Qianqian commented.
“Actually, the situation isn’t that bad,” Lin Chuan reassured them.
“Do you have another plan?”
Shen Qianqian raised her eyebrows, asking.
The Anling Iron and Steel Factory needs at least forty-six million to complete the transformation into a military weapons factory.
Relying on a bank mortgage isn’t very feasible.
The steel factory is bankrupt, with a broken capital chain, reduced market demand, and significantly insufficient orders leading to impending collapse.
“Mortgage the patents.”
Lin Chuan smile and tossed out a solution.
“How many patents do you have?”
Shen Qianqian asked blankly.