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Chapter 195 - Chapter 195: Cooperation with Mingcan Mosu

"These buildings are good. The layouts and discounted prices meet our conditions. Let's finalize it as he suggested and find a time for him to come here to sign the contract."

"Okay, understood. I'll contact them."

"Alright, contact legal, arrange the time, pay attention to the contract. Also, the renovation and furniture are all entrusted to you. Can you handle it?"

"I'll do my best. If there's anything I don't understand, I can ask Uncle Zhang and Brother Sun."

"Also, get the contract for leasing to Shanchi Technology ready. For the lease term, let's sign for 10 years first, and the rent will be 20% lower than the market price."

"Okay, I understand."

"Alright then, you can go."

In 2005, residential buildings in Beicang District were still mainly low-rise structures, with most communities limiting floors to 6 to avoid installing elevators.

Most residential communities near Beicang Middle School have buildings around six stories high, but there are also some low-rise high-rises with elevators installed.

Low-rise high-rises are often found in what now seem like relatively remote areas.

Conversely, most residential buildings in the main urban area and near schools are predominantly six-story, like the Golden Coast community where Tan Jincheng previously lived, which had six-story buildings without elevators.

This time, Tan Jincheng chose two 11-story low-rise high-rise residential buildings, purchased as entire buildings.

Each building has 44 units, with various layouts.

The developer offered good incentives, including a certain price discount and additional parking spaces.

The total price was 26 million yuan, with a 40% down payment totaling 10.4 million yuan.

The loan is for 20 years, with some interest rate discounts.

The two buildings are side-by-side and will be used as employee dormitories, which is very convenient.

This was 4 million yuan less than the originally estimated 30 million yuan.

That 4 million yuan could be used to buy a luxury villa.

In addition, the plan to buy a house near Yongcheng University from last time also needs to be arranged.

After Qingqing enters her third year, moving out of the dormitory is feasible.

With work and studies getting busier, and sometimes not being able to return at night, having a house outside would be much more convenient.

After Zhang Xuhui left, Tan Jincheng felt a moment of distraction and couldn't help but call Zhang Xupeng:

"Old Zhang, what are you up to?"

"Playing games at the company. Want to play together? Or if you have nothing else to do, you can come over and hang out."

"Oh, playing games? What game?"

"Online game, Fantasy Westward Journey, it's pretty fun. Create an account and let's play together. I've been playing it for several nights straight."

"No, no, I don't have that much free time. Besides, I have company at night. You're different; being single, you can only play games."

"Idiot, hurry up and tell me what's up, I still have quests to do."

"Nothing much, I just heard from Brother Xuhui that you knew I bought two buildings. How did you know about this?"

Zhang Xupeng paused, his mouse stopping involuntarily,

"What? I didn't know that. Wait, two buildings? Not two units?"

He really didn't know about this.

Ever since the shares were reallocated, Zhang Xupeng hadn't been coming to Shanchi Technology much, and with his recent immersion in gaming, he had even less time.

The two had discussed buying villas together before, even deciding to buy in the same community, but nothing had been finalized yet.

How did two buildings come into play now?

"Yes, two 11-story low-rise buildings, 88 units in total, 26 million yuan. Not bad, right? But I prefer odd numbers. Sigh, remember last year when we bought that small unit, before we bought it, we eagerly followed the sales and looked at layouts for days, we were so excited back then. How come now that I've bought two buildings, I don't feel that way anymore?"

"Damn it, I get why you called. You're just bragging to me again,"

Zhang Xupeng said, speechless.

"No, no, am I such a vulgar person? I'm just sighing that I no longer have that feeling of spending money like before, do you understand?"

"What the hell do I understand? I can't afford two buildings. And what are you buying so many houses for?"

"To rent them to the company as employee dormitories. You see, my company now has five or six hundred employees, and there will be more in the future. These two buildings won't even be enough."

"Alright, alright, I really get it. You're just showing off, but I don't want to hear it, so I'm hanging up."

With that, Zhang Xupeng directly hung up the phone.

After hanging up, Zhang Xupeng stared blankly at the computer screen for a moment, then chuckled after a brief period of contemplation, before resuming his grand gaming endeavor.

On the other end of the call, Tan Jincheng held his disconnected phone and muttered to himself,

"It really wasn't showing off."

Last year, when he bought that small unit in Liren Garden, although he didn't feel the same excitement as buying his first house in his previous life, he was indeed excited for several days.

After all, it was his first fixed asset in Beicang in this life, completely his own.

Even the house in his hometown made him feel more excited than he did now.

Perhaps because these two buildings weren't for personal residence, Tan Jincheng, apart from considering location, discounts, quality assessment, and so on, didn't even go to the site to take a look.

Everything was handled by Zhang Xuhui, so he genuinely couldn't be described as very excited.

Both buildings are under his personal name.

In over a decade, both buildings will be in excellent locations, and selling them for over 200 million yuan will be no problem.

This is a sure-win investment, but it is just an investment.

As for future increases in employee numbers and insufficient dormitories, by then, Shanchi Technology will certainly acquire land and build its own employee dormitories, just like Shenzhou Company.

Shanchi will also have its own real estate development company.

Whether it's traditional manufacturing or the internet industry, avoiding real estate is simply impossible.

Tan Jincheng is no saint.

The "six wallets" approach has indeed affected many people's lives, but it doesn't mean that if you engage in it, it won't evolve to this stage.

When a physical company develops to a certain stage, with thousands or even tens of thousands of employees and formalized management, addressing the housing problem for the majority of employees is an unavoidable issue that will not change based on the owner's will.

This is a necessity and an inevitability in development.

From another perspective, it's also a good thing: companies introduce more preferential housing policies, employees save on housing costs, and thus have more disposable income.

More money leads to consumption, to buying various goods, which is also a manifestation of boosting local economy.

The premise is a healthy increase in housing prices.

In the current era, apart from some areas in Shanghai, Beijing, and Shenzhen, housing prices nationwide are actually quite reasonable.

Taking Beicang District as an example, the highest prices are only around 4000 yuan, with some as low as just over 2000 yuan, and the average price is just over 3000 yuan.

Beicang District is filled with factories, offering many job opportunities, and the average wage level is not particularly low.

Taking the relatively developed and currently thriving mold industry in Beicang District as an example, aside from a slightly higher entry barrier, wages are by no means low.

Taking Mingcan Mosu as an example, in 2005, a mold master, if working on a package deal, could earn 10,000 yuan or even more per month depending on their skill level.

The basic salary for a CNC programming master was generally above 3500 yuan, and for a mold designer master, it was generally above 5000 yuan.

With such salaries, buying a house is completely affordable.

A month's salary is roughly equivalent to the local average housing price, which is a healthy level and unlikely to significantly impact the quality of life.

If the average salary is five or six thousand yuan and housing prices are thirty to fifty thousand yuan, who could still afford a house?

"Everything needs to maintain a healthy cycle,"

Tan Jincheng sighed inwardly, then stood up.

Let's go do another thing that ensures a healthy cycle: the cooperation with Zhang Mingcan.

Since Tan Jincheng hinted to Zhang Mingcan about the idea of cooperating to establish a company on their way to Hengdian last time, Zhang Mingcan had given it careful consideration after returning and discussed it with his wife for several days.

The investment for the new factory would definitely be in the tens of millions.

If he were to invest solely, he could indeed secure large orders from Shanchi Technology, and the profits would undoubtedly be substantial, but the risks would also be very high.

If a company places all its bets on one client, and then the client's orders change, new suppliers are introduced, or orders are directly snatched away by competitors, these would all be unforeseeable losses.

Tan Jincheng had previously revealed to him that Shanchi Technology's electric scooter production capacity in 2006 was estimated to be over 200,000 units, potentially reaching up to 500,000 units.

The supply price for plastic parts is 68 yuan per set.

This means the annual order value would be between 13 million and 34 million yuan.

With the new industrial base being built in 2007, orders would increase further.

The gross profit for plastic products cannot compare to that of molds, but the sheer volume makes up for it.

Calculating with a factory scale requiring tens of millions in investment, if all 13 million yuan in orders are secured, and considering factors like price reductions, it would take about four years for the investment to break even.

Honestly, this business is viable.

With stable orders as a foundation, plus developing new clients, the investment payback period would be even faster.

After three or four years, owning a factory completely of his own—how satisfying would that be?

However, Zhang Mingcan also knew that if he were to be the sole investor, he would indeed have the final say in the company, but at the same time, he would have no say regarding Shanchi Technology's orders.

A 20-year-old is at an age when their thoughts are constantly changing, especially an outstanding young man like Tan Jincheng.

You simply cannot grasp his intentions.

While business friends are certainly important, what matters more, and only, is profit.

Therefore, accepting Tan Jincheng's proposal to cooperate and jointly establish a new company, with the new company managed by him and Shanchi Technology participating through equity investment, would be the best approach and the most effective way to protect his own interests.

As for future newly developed clients, Shanchi Technology taking a share of the profits is unavoidable.

Because for Mingcan Mosu now, with the nationwide ban on motorcycles, transitioning from motorcycle parts is a necessity.

Without transformation, the factory would only shrink.

And a major client in the electric vehicle industry like Shanchi Technology is something Mingcan Mosu must firmly grasp.

(End of chapter)

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