Crying babies got fed, so of course, when it came to funding, the more the better. Even without money, other forms of support would be great too.
It all depended on how much resolve the local authorities could show in supporting Jiuzhou Automobile Factory's growth and development.
Chen Qianjun wholeheartedly approved of Xu Yifan's considerations. "No wonder you're such a capable factory director, President Xu. You've thought everything through. You've considered the crises the factory might face and prepared a fallback plan in advance.
"At the same time, you've anticipated how the market may change and prepared for the worst.
"You have a clear vision and the drive to forge ahead!
"And you've built up your own technical expertise. It's truly impressive that you've made it this far.
"I have great confidence in Jiuzhou Automobile Factory. A high-quality factory deserves the authorities' support!"
Across from him, smiles had already appeared on the faces of the Jiuzhou Automobile managers.
Chen Qianjun continued, "There are still some details to discuss.
"Jiuzhou Automobile Factory plans to build a new electric two-wheeler plant and a battery plant. President Xu, how many employees are you planning to hire, and how much do you intend to invest? Could you tell me more?"
Xu Yifan replied seriously, "Our initial plan is to invest 15 million yuan in a battery plant with an annual capacity of 10 GWh. It should provide about 500 jobs.
"That will be enough to meet Jiuzhou Automobile Factory's needs for the next few years."
The workforce for just one kind of component would rival the number of workers on Jiuzhou Automobile Factory's current production line.
The battery plant's scale was clear from that alone, considering batteries were nowhere near as complicated as an entire electric car.
"As for the electric two-wheeler plant, we plan to invest around 10 million yuan. It should also require about 500 employees once it's built, with an annual output of roughly 200,000 vehicles."
It would be a medium-sized electric two-wheeler plant. After outlining the two factories' general plans, Xu Yifan spoke again, sounding a little helpless.
"Actually, in my view, both factories should be several times larger.
"I have great confidence in our products. With our first-mover and technological advantages, we can absolutely capture a substantial share of the market.
"Not the entire national market, perhaps, but we should be able to capture most of the market in the province.
"The only problem is that we're short on funds right now."
Once again, Chen Qianjun acted as though he hadn't understood what Xu Yifan was implying. He murmured, "Twenty-five million yuan in total is already a very substantial investment, and it'll create a thousand jobs. Add the 500 people already working at Jiuzhou Automobile Factory, and it'll rank among Jiangzhou City's major companies!
"If the operation were even larger, it could become the city's biggest manufacturer!"
Compared with the mainland's fifth-tier cities a decade or more later, a factory with a few hundred employees could already count as a major local enterprise. The prospect was extremely appealing.
The only problem was that it was all still hypothetical.
Chen Qianjun tapped the table lightly as he thought. The others beside him didn't disturb him.
After a long while, Chen Qianjun finally spoke.
"Here's what we can do. Jiuzhou Automobile Factory needs land for both the electric two-wheeler plant and the battery plant.
"As things stand, Jiuzhou Automobile Factory is still too small to build two more large plants within its existing grounds.
"Jiangzhou City can offer Jiuzhou Automobile Factory favorable terms for land use.
"Two hundred mu of land!
"If, within the next three years, Jiuzhou Automobile Factory builds the battery plant and electric two-wheeler plant you just described, bringing its total workforce, including the existing factory, to more than 1,500 employees, and remains in operation and profitable for at least one year,
"then those two hundred mu of land will be sold to Jiuzhou Automobile Factory at the preferential price of 10,000 yuan.
"If you don't reach the scale I just described, the Jiangzhou City authorities will reclaim the land or sell it to Jiuzhou Automobile Factory at market price, depending on the circumstances.
"As for funding, the Jiangzhou City authorities can guarantee a loan for Jiuzhou Automobile Factory from China Merchants Bank. Using valuable collateral such as the factory's equipment, vehicle production licenses, brand, and production lines, you could borrow around 100 million yuan.
"If Jiuzhou Automobile Factory later registers its own battery patents and gains the technical ability to mass-produce the new lithium iron phosphate batteries, the loan limit could rise further. That's about all the support the authorities can offer at the moment. What do you think, President Xu?"
Chen Qianjun laid out the support plan.
Xu Yifan's thoughts raced.
Build the battery plant and electric two-wheeler plant within three years, bring the total workforce to 1,500, and remain profitable for at least a year, and he could get two hundred mu of land for practically nothing.
Those terms were reasonable for both the authorities and the company.
For the company, the authorities would provide support, and it would effectively use the land for free for three years regardless.
If it met the agreed targets, it could then buy the land at a preferential price, saving a huge sum.
With the real estate market on the verge of taking off, the future value of such a large plot was incalculable!
For the authorities, it would be even better if the company grew to a certain size. It would boost the local economy and employment, making the cost of two hundred mu of land well worth it.
And if the company ran into trouble, the land could be reclaimed under the agreement, leaving the authorities with no substantial loss.
Besides, the loan arrangement was fairly conservative: it was secured by collateral. At worst, the bank could take everything Jiuzhou Automobile Factory owned.
To be honest, Xu Yifan knew exactly what things would be like three years later. Vehicle production licenses would skyrocket in price, and together with Jiuzhou Automobile Factory's equipment, they would easily cover the loan amount, with plenty left over!
Even in the worst-case scenario, he could just go home and inherit the family business—and probably take some money back with him, too!
The proposal was actually quite good and would genuinely help Jiuzhou Automobile Factory as it stood.
With more ample funding and a huge plot of land, the factory could spread its wings.
But since he was already taking out loans and agreeing to something like a performance-based wager, why not go bigger and get everything in place at once?
Xu Yifan held up one finger and said calmly, "A thousand mu of land. Within three years, I'll grow Jiuzhou Automobile Factory's workforce to 10,000, make it profitable, and keep it running normally!
"On top of that, I'd like to borrow 200 million yuan in two installments.
"One hundred million would be secured by Jiuzhou Automobile Factory's existing buildings, equipment, land, the exterior-design patents for the Jiuzhou Mini, and our vehicle production license.
"The other hundred million would be secured by the new battery plant, our new lithium iron phosphate battery technology, and the electric two-wheeler plant.
"If that isn't enough, I also have luxury cars worth about 10 million yuan in total, as well as a mansion in Jiangzhou City worth around two million."
Go big or go home. More funding and more land would settle Jiuzhou Automobile Factory's development needs for a long time to come.
With no major pressure from funding or land, and with the system Xu Yifan possessed, there was no way he could lose!
And if, by some slim chance, he did lose, that would prove he wasn't cut out for this. He might as well go home and live off his family!
Xu Yifan's words left everyone present silent for a moment.
This young man had grand ambitions and a huge appetite!
But if he really succeeded, both sides would benefit enormously.
Jiangzhou City would gain another pillar of its economy, directly creating 10,000 jobs. The tens of thousands of family members relying on those workers would also become better off.
The entire city would enjoy greater prosperity and increased consumer spending. One large company could benefit the whole city!
And if things didn't work out as hoped, the land could be reclaimed, while the loan would be the bank's problem.
After a long while, Chen Qianjun gritted his teeth and spoke.
"I can tentatively agree to your terms, but I'll need to hold a meeting and report to my superiors before I can confirm anything.
"If everything checks out, the Jiangzhou authorities will speed up the support process and aim to have the details set down in writing within the next week!"
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