Chapter 1161 - Northern Construction

Chapter 1161 – Northern Construction

Niu Jinguo is speechless. He did not expect Feng Yu to appear suddenly.

Obviously, Li Dafu had gotten the support of Feng Yu, and Niu Jinguo’s leader’s promise to him is like a joke now.

Feng Yu dares to go against the City Government in the past, and he was not so rich. Now, Feng Yu has become Asia’s top billionaire, and all the top leaders can’t wait to receive him. Even if Feng Yu is not Bing City Machinery Manufacturing Group’s biggest shareholder, Li Dafu, will still become the President if Feng Yu supports him.

Feng Yu had donated a large amount of money to Bing City. Many people joked that Feng Yu owns half of Bing City as half of the infrastructures related to him.

Why is Feng Yu supporting Li Dafu? How am I not better than him?

The other Directors were glad that they had not spoken earlier, or they will be in trouble now.

“You are Niu Jinguo, right? If you are willing to continue to work here, just focus on your job and not think of other things. I think it’s time for the City Government should change their representative!”

Niu Jinguo quickly took a step back and did not say anything. Manager Feng had let him off this time, and he is grateful. This is a good position, and he does not want to be replaced. The previous representative from the City Government is now the head of the City’s State-owned Assets Supervision and Administration Commission of the State Council.

With Feng Yu supporting Li Dafu openly, no one dares to question his appointment. Li Mingde shook his head in his heart. He had prepared many things to say to justify this decision, but Feng Yu only needed to say two sentences.

Feng Yu left quickly as he is not interested in discussing the subsidiaries’ heads’ appointments. He can find out later and can replace them anytime he wants.

Feng Yu still need to visit Bing City Pharmaceutical Group. One of its subsidiaries needs to be restructured.

Feng Yu can tell that the City Government is addicted to restructuring. Feng Yu had advised Zhang Ruiqiang to increase Bing City beer’s scale, and Zhang Ruiqiang let Beidacang acquire it. The beer company expanded and acquired all other beer factories in Longjiang Province to increase its production.

Bing City Beer started expanding southwards. They avoided clashing with strong competitors and slowly acquire some smaller beer factories to expand their brand influence.

This strategy increases Bing City Beer’s market share in China, and they monopolized the northeast region of China.

Feng Yu suspects this is why the City wants to break up Bing City Machinery Company, and they are targeting Bing City Pharmaceutical now.

Bing City Pharmaceutical was set up based on a holding company’s model and doesn’t need to split. If the company split again, it will affect its future development.

But this time, the City wants a subsidiary, which has nothing to do with medicine production, to be separated from Bing City Pharmaceutical. This subsidiary is a real estate company, and it will be merging with a City-owned developer.

The Central Government had made real estate a core industry. Since it is a core industry, there will be many government policies and subsidies in the future.

Zhang Ruiqiang remembered Feng Yu’s words. When a company reaches a certain scale, it will be easier to build its brand, gather resources, and raise funds.

Anyway, the real estate company under Bing City Pharmaceutical focused on building hostels and accommodations for Bing City Pharmaceutical’s factories. There are no profits, and they should merge with the City-owned real estate company. This will help with its growth too.

Feng Yu does not object to this decision. The real estate industry will develop rapidly in the coming decade. In Feng Yu’s previous life, property prices skyrocketed after 2000.

The property prices in the commercial district had started to increase now. For example, Wind and Rain Building’s rental had increased, but many companies are still queuing up to rent offices there.

Being a real estate developer now has good prospects, and Feng Yu has an abundance of funds. He can afford more land plots than others and can even hold them for profits in the future.

This is the strategy used by Superman Li. He bought lots of land parcels in China and sold them when the development deadline is almost up for profits. In Feng Yu’s previous life, Superman Li rather pay the penalty than develop some land parcels. He gave all sorts of excuses to avoid developing the land. He is just waiting for the value of his land to appreciate. In fact, land parcels’ value rises faster than property prices.

The city’s developer’s scale is not big, and Longjiang Province still has its provincial developer, much bigger.

The real estate company under Bing City Pharmaceutical is quite small. It’s not worth merging it with the Provincial developer company. They will not get many shares from the merger. But it is different if it merged with the City’s developer, as both are on the same scale.

Of course, Bing City Pharmaceutical’s controlling shareholder is the City Government. They don’t need Feng Yu’s approval for this decision. But the City Government, especially Bing City’s Executive Deputy Mayor, is smart. He was Xu Changyou’s former secretary and will never offend Feng Yu.

Zhang Ruiqiang can get promoted so fast is because he got Feng Yu’s support. The Executive Deputy Mayor wants to follow Zhang Ruiqiang’s footsteps and gain Feng Yu’s support. He might not get promoted, but his position will be secure.

Who is better than Feng Yu when it comes to the economy? If you claim you are better than him, why are you not Asia’s Top Billionaire? Why didn’t you set up a company that can enter Fortune 500? Many of Feng Yu’s companies are in the Fortune 500!

If Feng Yu says they should not merge, then the City Government will not mention the merger. All the City Government leaders, including the Provincial Government leaders, trusted Feng Yu blindly.

Everyone in the City Government is overjoyed when Feng Yu agrees to this merger. This means Feng Yu supports the development of the real estate industry.

Feng Yu did not object to the merger conditions. Although the City’s development company has debts, they also have lots of fix-assets and technologies. The subsidiary under Bing City Pharmaceutical does own several factories, hostels, buildings, etc. but had handed most of them to Bing City Pharmaceutical before the merger.

Most importantly, this subsidiary has the experience and qualifications which the City-owned development company needed. Feng Yu is not pleased with the new company’s name after the merger. The City still wants to use the word City in its name. But at least it is better than Bing City Pharmaceutical Real Estate Developer.

But Feng Yu felt the name will restrain the company’s scale. He wants it to be changed from Bing City Construction Group to something bigger.

The company cannot be named China Construction, but it can be called Northern Construction Group. When people see this name, they will think that this company’s business is all over the northern region.

So, the Northern Construction Group, which will be working with Tai Hua Supermarket Group to develop commercial real estate in the future, is formed!