I collect gold fingers in the heavens

Chapter 360 Profit Calculation, Contract City

After listening to Wang Hang's explanation, Deputy Mayor Liu Zexin's interest has been pulled to the highest level.

After inspecting the established projects, Deputy Mayor Liu Zexin temporarily changed his itinerary and asked senior county officials Wang Zhibo and Wang Hang to take him around Longhua County. Looking at the brand-new Longhua County, Deputy Mayor Liu Zexin thought The idea is getting stronger and stronger.

After having dinner together, Deputy Mayor Liu Zexin took Wang Hang to talk.

After the polite official speech, Liu Zexin, the deputy mayor, asked straightforwardly, "Mr. Wang, [Bikong Environmental Protection Business Development Co., Ltd.] is developing well in Longhua County. Have you considered expanding business in other places?"

consider?Do you still need to think about it?Wang Hang wanted to expand the business of [Bikong Environmental Protection Development Co., Ltd.] even in his dreams.

Before [Bikong Environmental Protection Business Development Co., Ltd.] acquired [Longhua County Water Plant], the water supply cost of [Longhua County Water Plant] was 1.55 yuan/cubic meter.

The current water price for residents in Luzhou City is 2.5 yuan per cubic meter. For non-residential water, that is, all kinds of water except residential water and special water, including administrative water, industrial water and business service water, the water price is 2.9 yuan / cubic meter, and the price of special water, that is, the special service industry and the water used to obtain the "special industry business license".Including water used by pure water (including bottled water) production enterprises, commercial dance halls, KTV, nightclubs, clubs, saunas, massages, foot baths, beauty salons, car washes, etc., their water price is 5.4 yuan per cubic meter.

Among them, residential water consumption accounts for 35% of Longhua County's total water supply, non-residential water consumption accounts for 40% of Longhua County's total water supply, and special water consumption reaches 25%!

In 2016, the total water consumption in Longhua County was about 2.42 million cubic meters, of which the residential water consumption was 0.847 million cubic meters, the revenue was 2.1175 million yuan, the non-residential water consumption was 0.968 million cubic meters, the revenue was 2.8 million yuan, and the special water consumption was 0.605 billion yuan. billion cubic meters, with a revenue of 3.267 million yuan.

The total annual water supply revenue is about 8.18 million yuan!

Looks great, right?
However, the 8.18 million yuan is not all from the water supply plant.

The water price includes three types of fees, among which the water supply fee is paid by the water supply plant, while the water resources fee and sewage treatment fee have to be turned over to the finance and handed over to the government for overall planning and processing.

8.18 million yuan, only about 2.45% of the amount is the revenue of the water supply plant, which is about [-] million yuan.

If you calculate it like this, it will shrink a lot immediately.

However, the sum of various costs of the water supply plant is 1.51 yuan/cubic meter.

The annual water consumption of 2.42 million cubic meters costs 3.6542 million yuan.

The revenue of the water supply plant is only 2.45 million yuan.

That said, the water plant is living beyond its means!
The annual loss exceeds 1.2 million yuan.

If it weren't for the financial subsidy of 0.5 yuan per cubic meter, the water supply plant would have been unable to continue, and it has been closed for a long time.

The subsidy in Luzhou City is relatively small, and the subsidy in the capital is higher, with a subsidy of 1 yuan per cubic meter of water. In this way, the water supply company in the capital is still losing money.

But [Bikong Environmental Protection Business Development Co., Ltd.] took over [Longhua County Waterworks], it was different. After transformation and use of new technology, after using the [Smart Ring] management system, the staff was downsized, and [Longhua County Waterworks] The production cost and operating cost of the water are reduced at once, and the cost of the water price is only 0.48 yuan when calculated comprehensively.

The water consumption of Longhua County is 2.42 million cubic meters a year, and the cost is only 1.16 million yuan.

As mentioned earlier, the annual revenue of Longhua County Waterworks is 2.45 million yuan.

The difference between the two is 1.29 million yuan.

This 1.29 million yuan is the gross profit of [Bikong Environmental Protection Business Development Co., Ltd].

The water supply of one county alone can earn a gross profit of 1.29 million yuan. What about a city or a province?
Not to mention the profits of sewage treatment.

Not counting the intellectual property cost of [Dianjinsang], the comprehensive cost of [Longhua County Sewage Treatment Plant] treating 1 ton of water is actually very low, less than 1 yuan per cubic meter.

On the domestic sewage treatment fee side, they don't earn much, that is, a gross profit of [-] to [-] million a year.

But in terms of sewage production, [Longhua County Sewage Treatment Plant] can earn more. Assuming that it can produce 1095 tons a day, that is [-] million tons a year, and earn more than three yuan per ton, then it is three to four thousand Wan's gross profit.

Calculated in all aspects, this is another gross profit of [-] to [-] million a year, which is already quite a lot.

That's still a county benefit!
And it's because Longhua County is not a big industrial county, otherwise, in this aspect of industrial sewage treatment, the profits that can be made will at least double!

In terms of water supply and sewage treatment costs alone, [Bikong Environmental Protection Business Development Co., Ltd.] can earn a gross profit of nearly 2 million yuan. Even if there are fixed expenses for pipeline construction and reservoir repairs, the annual net profit will not be less than [-] million yuan.

And this is the profit of drought and flood protection.

A county can earn a net profit of [-] million, how could Wang Hang have no motivation to expand!

You must know that there are 111 counties or urban areas in Guangxi Province.

A county or urban area can earn 111 million, and 111 can earn [-] billion.

What kind of business can have such huge profits?
Of course, compared with the water industry, the waste recycling industry is not as profitable.

For example, in the sanitation business, after [Bikong Environmental Protection Business Development Co., Ltd.] raised the wages and benefits of sanitation workers, it must be a loss.

Fortunately, other business lines in the waste recycling industry are still profitable. Overall, they are still profitable, but not much, but after a year, there are still tens of millions of profits.

…………………………………………………………………………

Although Wang Hang's heart is very eager to expand, but he can't be too eager. Facing the straight-to-the-point answer from Liu Zexin, the deputy mayor of Luzhou City, he hesitated and said with a embarrassed expression, "Mayor Liu, what do you say about us?" The company doesn't want to make the business bigger, that's a lie, don't say you don't believe it, I don't believe it myself."

"The company definitely wants to expand its business scope."

"However, first of all, the company has just entered this industry not long ago, and has invested a lot of money. You also know that this is an asset-heavy industry that requires a lot of capital. During this time, the parent company has invested heavily in the breeding industry ,so……"

"Hey! Second, even if we want to expand, we have no way to expand. You see, we entered this industry late. Even the water business in Longhua County relies on the help of senior officials from Longhua County. It was acquired by [Lushui Water Affairs Group] at a premium. Our company has internally evaluated it, and for this project alone, our company paid an extra 700-800 million yuan."

"Now the water affairs of various cities are contracted by various water affairs groups. It can be said that there is a radish and a hole. Our company does not have it, and we don't want to be taken advantage of again."

"So, our company intends to develop, but we have no choice but to see if there are any opportunities in the future!"

Wang Hang said in a rather [helpless] tone.

Liu Zexin, the deputy mayor of Luzhou City, became serious. After pondering for a moment, he said slowly, "Senior officer Wang has spent a lot of thought to help you [Bikong Environmental Protection Development Co., Ltd.] land in Longhua County smoothly. , ran away a lot of political resources, which I have heard in the city."

"Facts have proved that Gaoguan Wang did the right thing. He left your giant Buddha in Longhua County and Luzhou City."

"Where is it! Mayor Liu, you are flattering us!" Wang Hang said immediately upon hearing this.

"Mr. Wang, [Bikong Environmental Protection Business Development Co., Ltd.] you have the confidence to be proud!" Liu Zexin, the deputy mayor of Luzhou City, reached out to stop Wang Hang from speaking, and said, "Let's put it this way, Mr. Wang, if I put Luzhou Are you interested in entrusting the water, sanitation and garbage collection business in other areas of the city to your company?"

Wang Hang's eyes lit up immediately, "Really? But..."

Wang Hang hesitated to speak, but the meaning was obvious.

"The environmental sanitation of Luzhou City can be transferred to you after I make a decision. In terms of water affairs, I will communicate with [Lvshui Water Affairs Group]..."

"But the cost?" Liu Zexin, deputy mayor of Luzhou City, kicked the ball to Wang Hang's side.

Wang Hang has already been ordered by the above. If possible, Luzhou City will be included in the pilot city, test the [Ring of Wisdom], and accumulate big data information. For this reason, in terms of related expenses, it is possible to make some regressions .

"The annual sanitation contract costs 5000 million yuan, and other standards are the same as Longhua County, Mayor Liu, what do you think?" Wang Hang reported the conditions in a plan.

Liu Zexin, deputy mayor of Luzhou City, flashed joy in his eyes, and a faint smile appeared on the corner of his mouth, "Then, Mr. Wang, you just wait for my good news."

Liu Zexin was so happy for a reason.

Luzhou City spends hundreds of millions of dollars on sanitation every year. The sanitation company has always suffered serious losses and has to rely on financial blood transfusions. Moreover, the cleaning effect is not very satisfactory. The mayor's hotline often receives complaints from citizens.

Lu Zhou City had long wanted to get rid of this burden.

If [Bikong Environmental Protection Business Development Co., Ltd.] really contracted the environmental sanitation of Luzhou City for 5000 million yuan, then it will save more than [-] million yuan for the Luzhou City Government, and the finances will not be so tight up.

The same goes for the water affairs of Luzhou City.

Liu Zexin conducted research in Longhua County. Although he is not clear about the cost of [Bikong Environmental Protection Business Development Co., Ltd.], the income and expenditure should be able to maintain a balance, and there is no need for financial subsidies.

If sanitation and water services do not require government financial subsidies, how much money can the government save in this area!
At least hundreds of millions a year, or even more.

This alone is very attractive to the government.

You must know that the finances of the Luzhou City Government have been very tight in recent years, with serious population loss, young people have gone out to work, and the local government has not been able to collect taxes, so the pressure has always been great.

Even if there is some insider trading behind these industries, the reduction of such a large financial expenditure is enough to make some leaders who want to act again move their minds.

……………………………………………………………………………………………………………………………………… ……

Liu Zexin, deputy mayor of Luzhou City, brought good news to Wang Hang less than a month after returning.

[Bikong Environmental Protection Business Development Co., Ltd.] acquired all the shares of [Lvshui Water Group] with 1.1 million yuan and assumed a debt of 1.6 million yuan.

Of course, the sanitation industry and garbage recycling industry of the entire Luzhou City also came at the same time.

[Bikong Environmental Protection Business Development Co., Ltd.] has entered a new stage of development by recruiting troops, integrating businesses, and transforming production lines.

(End of this chapter)