The meaning expressed by Lu Ming's words is already very clear. If you choose to play with houses, sorry about the huge tax on Tiansheng Capital, the company would rather use the money to repurchase the company's shares to promote the company's own asset prices.
Even if the increase is reflected in the stock price, it will not be reflected on the income statement. It is better to let the national social security funds and pension funds collectively benefit.
You should know that the institutional shareholders of Tiansheng Holdings include social security funds from all over the country, and the profit reflection in the stock price is equivalent to benefiting the whole country, because the major social security funds can cash out at high levels.
This is reflected in the income statement and is a huge amount. This actually means that most of the dividends from enterprise development fall on Ningzhou City. By paying a huge amount of tax, excluding the part that goes to the central government, Ningzhou City is still
The bulk of it.
The reason why such generous profits are paid and such huge taxes are paid is to help Ningzhou get rid of its dependence on land transfer fees for financial maintenance. Tiansheng Capital also has the ability to do this.
The data speaks for itself. Last year in 2017, Ningzhou City’s land transfer fee revenue was 102.3 billion yuan, reaching the highest level in history. In 2016, it was only 61.9 billion yuan, a year-on-year increase of 65.26%.
Even so, the amount of tax paid by Tiansheng Capital in the first quarter of this year exceeded the total income from land transfer fees in Ningzhou last year. This is the biggest reason for being so tough.
Of course, the profit explosion in the first quarter of this year is mainly due to the return of overseas profit harvesting. It would be incredible if it could reach this amount every quarter.
Li Fuliang sighed softly and said: "Mr. Lu's words are thought-provoking. Ningzhou City has indeed taken too big steps in recent years, especially in the past year after its financial resources have been greatly improved."
The positive translation of the phrase "too much step forward" means that there is suddenly so much more money, and it is spent very frivolously, and life becomes more and more luxurious as time goes by. In fact, it is a huge waste.
To say the least, wasting money is a skill, but the biggest problem is that land transfers amplify debt leverage.
If future cash flows are discounted and spent in the current period, what about future debt repayments?
That's what he said, but Li Fuliang was shocked when he heard what Lu Ming said just now. He also knew that Lu Ming had another sentence that he didn't say, which was that Tiansheng Capital had another option to relocate abroad!
Such a tax scale also determines that Ningzhou cannot afford to let it go.
At this time, Lu Ming said methodically: "The profits of Tiansheng Capital are not generated out of thin air. They come from investing in the development of major enterprises and sharing their development dividends. If they can't get up, how can Tiansheng make profits? Foreign leeks also
It’s hard to cut it off, the Americans are now taking strict precautions against it.”
In fact, it is impossible to prevent it, but it certainly cannot be said so clearly.
Lu Ming continued: "High costs will eventually destroy the competitiveness of enterprises. Besides, now that we have high-speed rail, networks, and highways, the era of vitality distribution is over, but it will not be concentrated in high-cost places. We in Ningzhou City are interested in
The control of housing prices is the envy of the people across the country, and it goes without saying that the people of Ningzhou City have the most say."
What he said finally made Director Li smile happily. His political achievements were outstanding and beautiful.
Lu Ming continued: "Despite this, it is difficult for Ningzhou City to have large areas of industrial land. Everyone knows that for the development of large industries, every company needs a certain amount of space for development. The most important thing for modern industry is to have
Land is used in exchange for industrial growth. Nowadays, land is becoming less and less and more and more expensive, and the possible space for industrial growth is constantly being compressed."
As he spoke, Lu Ming twitched his fingers and said: "There are people here who want housing and living facilities, but the living facilities are too expensive and the enterprises cannot afford them. How can the industry develop if the cost is too high?"
Li Fuliang and others nodded repeatedly without saying a word, unable to refute.
Lu Ming went on to say: "Entities represented by Anshi Group are still an important pillar of our city, and the downturn of the entities will cause a heavy blow to our city's future economic growth."
Li Fuliang nodded and said: "It makes sense. While the real estate industry is booming, we must be wary of the sharp shrinkage in investment in the physical manufacturing industry."
Lu Ming looked at the other party and said methodically: "Although the commercial housing market in our city has been booming recently, especially in the city center, which has not only brought huge profits to developers, but also increased municipal tax revenue, the disadvantages behind it are also obvious, such as skyrocketing
Tianyu Yunchi, a company downstream of new energy vehicles incubated by Sheng Capital, is also in Ningzhou. It has no impact now but it will not be 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 freshly graduated college students. It is equivalent to crowding out some talents to find employment and development in our city. Tianyu Yunchi will not be able to recruit enough talents or the labor cost
This problem is also faced by other enterprises in the city. At the same time, commercial offices and rising rents have been driven up. As a result, some enterprises have been unable to survive due to higher costs and have to move out in whole or in part. This has a great impact on the overall economy of Ningzhou city.
The growth 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 due to the decline in manufacturing profitability in recent years. The withdrawal of funds from the real industry will cause our city’s industrial economy to suffer.
Crackdown, no jobs created by industry?”
"The bottom line is residents' debt leverage. Currently, some home buyers in the market are using intermediary companies, crowdfunding, P2P and even down payment loans to raise down payments to buy homes. These debt leverages have helped home buyers to a certain extent in the early stages.
But it also increases the debt burden. Once house prices fall, these people will be more likely to abandon their houses and cut off payments due to low capital contributions, thereby further increasing bank mortgage loan risks and further transmitting them to the real economy."
Tiansheng Capital’s strong earning power can indeed enable Ningzhou to live in housing rather than speculate. Lu Ming proposed that Ningzhou’s housing prices must be strictly controlled. In addition to the above, another reason is to provide a platform for the development of Tianyu Yunchi.
With a good foundation of geographical location and people, if you want to attract real talents to work in Ningzhou City, your city's attractiveness must be in place.
Specifically, isn’t it the cost and quality of living in Ningzhou City?
Furthermore, there are issues such as housing conditions, education level, medical technology, employment opportunities, and development space.
The two parties communicated in this lounge for more than an hour, exchanging a lot of opinions and suggestions. At about 19:30, Lu Ming just left home, not going to the company, and went home directly.
Ningzhou City soon paid great attention to this, and they were still holding meetings to discuss it in the evening. Now is the time for Ningzhou to make a choice between fish and bear's paw. Whether it is to choose fish or bear's paw, only choose
Neither one is perfect, and having both is the outcome Ningzhou City wants most, but this is impossible to achieve.
In the end, I made a difficult choice and chose Tiansheng Capital.
Such a decision is actually the optimal solution for Ningzhou City, and it will inevitably be this choice. The reason is that Tiansheng Capital can move out, but the land in Ningzhou City will not be lost. It will always be there.
.
Let’s choose Tiansheng Capital first. Even if the worst situation occurs in the future, such as relocation, it will not be too late to transfer land by then. Moreover, the transfer fee will be more expensive as the city develops. If we take a step back, even if the property market plummets in the future
In this situation, Ningzhou City’s debt has not increased on a large scale, and houses have not doubled or skyrocketed on a large scale. Of course, there is no room for decline, which in turn means that it has a huge ability to resist risks.
So there is no reason not to choose Tiansheng Capital. The reason why it is difficult is that the fiscal budget expenditure has to be compressed, and many projects that have been drafted have to be cut off due to budget reduction, or they are shelved indefinitely.
Lu Ming will still pay attention to this matter. If Ningzhou's houses and debts continue to soar rapidly, there is nothing to say. Either the company will move abroad or the company's profit statement will be compressed.
But now for Lu Ming, the focus has shifted to the company's shareholders' meeting.
As time enters May, Tiansheng Capital’s annual shareholders’ meeting also arrives as scheduled.
