Rebirth to 90s: Start from Scratch
Chapter 381: Return on investment
Zhang Qianxiu looked at the map carefully and asked, "Lao Shi, you don't need to tell me about the advantages, but the disadvantages."
Shi Chengwang said: "These tens of thousands of mu of land are directly embedded in the mountains because they are located on the edge of the mountains. Although this is the edge of the mountains, the overall terrain is several meters higher than the plains."
"It happens to be a place without a big river. I went there to investigate on the spot. The only stream came down from the mountain. It was probably a small ditch. It was estimated that it would have enough water for ten or twenty households and irrigate one. Tens of acres of land, but compared to tens of thousands of acres, it’s just a drop in the bucket."
"We have also considered groundwater, or because of the reasons I just mentioned. In plain areas, shallow groundwater sources are available at three to five meters, and a bit deeper than ten meters. However, we estimate that the groundwater sources there are 20 meters away. Below, mining groundwater is difficult."
"There is another reason why it is not suitable for mining. It is the edge of the mountain. Excessive exploitation of groundwater can easily cause the terrain to sink. Although the terrain is not much sinking, it is only a few centimeters or a few millimeters, but such sinking may cause the mountain. Cracks appeared, causing major landslides."
"It's like a concrete red brick house. If one side of the foundation sinks one or two centimeters, and the other side does not sink, the wall in the middle will be torn. However, if the house has beams, but the wall is cracked, the problem is not big. But it’s hard to say about the mountains. Another heavy rain may cause a major landslide."
After listening for so long, Zhang Qianxiu summed it up and said, "Shilao, what you said is that there is no water resources in the local area and groundwater cannot be exploited."
"These old Yuan told me from the beginning that they would bring water from the river for irrigation, about five kilometers away."
Shi Chengwang pointed to a river on the map, and said, "This river, and this piece of land, has a drop of more than ten meters. In other words, the river is ten meters shorter than the ground. It is useless to repair the dam. It’s not so high, so I can only pump water out of it."
Zhang Qianxiu frowned slightly, and nearly 100,000 mu of land needed to be irrigated. It was not a small project that was pumped solely by a pump.
Shi Chengwang glanced at Zhang Qianxiu and said, "Boss Zhang, there is actually another way to bring water from another place. We also agree, but the distance is relatively long, with a straight line of more than 30 kilometers."
"It's more than sixty kilometers to this piece of land."
"But what I have been walking is a canyon. Many places don't need to be built. You just need to excavate it. There are mountains on both sides and a canyon in the middle, which is a natural river."
"It's just that some places are relatively wide and need to be built manually, and some places have gaps and need to build river banks."
"After the water is brought in, we can give you a place to build a reservoir above this."
"This location, as long as someone draws it in, it is a natural reservoir. Just build a dam."
Looking at Shi Chengwang's explanation, Zhang Qianxiu wondered the feasibility of this plan.
Su Yuwei, who had not spoken all the time, said suddenly: "Lao Shi, this water can't be kept in the reservoir when it is drawn in. After all, the amount of water from the reservoir is limited. There must be a drainage channel for the downstream, and it will eventually flow into that river. Right!"
"Your plan is just to let this river diverge a section in the middle and supply it to our side. The end point cannot be in the reservoir you mentioned."
Zhang Qianxiu reacted immediately when Su Yuwei spoke.
Shi Chengwang's goal is this river!
As long as this river reaches this wasteland, it must continue to dig down, and finally merge into the original river, and the diversion that Zhang Qianxiu dug out can benefit the place where it passes.
Shi Chengwang and the others wanted to use their own reconstruction to benefit the villages below.
Shi Chengwang smiled and said, “It’s not difficult to build the river course below. Let’s requisition the land. The current will not be very large. You don’t need cement. Just dig it directly. Then use stones to build the river bank. It’s relatively high, and it’s not that difficult to dig a river. Going this way can benefit more than a dozen villages that lack water, and about 20,000 people will benefit. In addition to your 100,000 mu, you can solve 200,000 mu of arable land. The dozen or so villages below depend almost entirely on groundwater for their livelihoods, with no other water resources."
"If this diversion can be built, the work will be in the future!"
Zhang Qianxiu finally understands that the government will not do anything to lose. The place is used for you, you can raise the land, and finally it is theirs. The canal you built will help them improve the water use of more than a dozen villages. .
But this is not completely profitable. There are nearly 100,000 mu of land. The yield of wheat per mu is about the same as that of rice, and it is basically a little lower. After drying, it is possible to produce 700 to 1,000 catties per mu. Yes, one thousand is considered a high yield, and the overall one mu is slightly more than one or two hundred catties of rice.
Even eight hundred catties per mu, 100,000 mu can produce 40,000 tons in a year, even if the profit per ton is 30 to 50 yuan, the profit in that year is 1.2 to 150. Ten thousand, plus subsidies, about one million a year, and an income of more than two million a year.
Of course, these are all under normal circumstances, and there may be losses or high yields, and profits will naturally be different.
Zhang Qianxiu asked, "Lao Shi, you should have made a budget? How much will it cost if this river is repaired?"
The whole journey is at least seventy or eighty kilometers, and there is a reservoir.
The construction of river channels is mainly to excavate and build river embankments.
Shi Chengwang said: "About three million, plus the reservoir."
Zhang Qianxiu asked again: "If I contract this piece of land, how much subsidy will I give me in a year?"
Shi Chengwang said: “It’s about 900,000 mu. There is no 100,000 mu of wasteland, but there must be 85,000 mu. It’s between 85,000 and 95,000 mu. The entire area has 100,000 mu. There are some places that cannot be used as arable land. We can use those places together, but we can only provide subsidies based on the area of arable land."
"We can give subsidies for three years."
This is a very simple account. It costs three million to repair the river, and the official subsidy is more than two million. If they want to repair it themselves, they can barely fix it.
But after they repaired it, they had no money to invest in the wasteland improvement, and it was handed over to Zhang Qianxiu. They could not only repair the river, but also improve the wasteland.
More importantly, the construction of the river is a one-time investment, and the subsidy is given in installments.
In three years, the interest has been hundreds of thousands. If you calculate it carefully, there is a big gap between them.
Zhang Qianxiu said, "Lao Shi, I have to go and inspect it on the spot."
"There is no problem with this." Shi Chengwang said: "What I told you is the truth, but there is no way to investigate in the mountains. In winter, the snow is heavy and you can't enter the mountains."
Zhang Qianxiu naturally understands: "With this understanding, let's look at the original river course, wasteland, and the villages below."
Shi Chengwang nodded: "Yes, then we will go tomorrow. I will arrange the car. If it goes well, we will be back tomorrow night."
"Okay!" Zhang Qianxiu said, "The specifics, we'll talk about it after seeing the place."
Things were about to talk, Shi Chengwang and others got up to leave, and Zhang Qianxiu chatted with Yuan Pengchi for a while. Yuan Pengchi was very supportive, and he felt that the place had a certain economic value.
Zhang Qianxiu was hesitant in his heart, because the return period was too long, and the rate of return was very high.
In the early stage, rivers and reservoirs were built, with an investment of 3 million yuan. Some money would be spent on land rectification. As for agricultural machinery, I would find a way to get it from the State of Su when the time comes.
In this way, the overall investment is about 10 to 20 million, which is nothing compared to the investment in research and development.
The income in the next few years should be 200 to 3 million a year, and it will pay back in about ten years. If it is better, it will pay back in six or seven years. In the next ten years, it will be profitable. On average, it will pay back every year. The rate of return should be around 15%.
The annual rate of return of 15% is relatively high among enterprises. The annual profit of the world's four largest grain merchants is only about 3%.
As for the kind of investment that makes a huge profit, pays back in one year, and makes several times the profit in two years, it is more common in small companies, but it is not in large companies.
Apple has always been regarded as a company with high profit margins by many people, but its net profit is actually 22%, while Xiaomi's net profit margin is only 7%.
In 2018, a profit margin of 8%.
The stock **** Buffett has invested in decades, and the average annual rate of return is more than 21%.
Calculating in this way, in fact, the annual income of 15% is not low, especially in the two industries of agriculture and traditional manufacturing, where the profit itself is very low.
Apple and Xiaomi are all technology-based companies, and Bashen is in the financial sector.
The profits of science and technology, the Internet, energy, finance, and medicine are themselves high-profit industries. Agriculture and traditional manufacturing are low-profit industries. Zhang Qianxiu is now engaged in low-profit industries. He can't do high-profit industries. There is currently no industry in China. Such conditions let Zhang Qianxiu do it.
After talking with Yuan Pengchi, Yuan Pengchi and his three students also went back to rest.
Only Zhang Qianxiu and Su Yuwei were left in the room.
Su Yuwei seldom speaks when Zhang Qianxiu is discussing business matters, but she usually listens to her. In fact, she knows Zhang Qianxiu's business very well in her heart.
Zhang Qianxiu asked, "Daughter-in-law, do you think this can be done?"
Zhang Qianxiu actually has a general decision in his mind, as long as there are no major problems, then do it! The biggest problem now is the conditions in the mountains. There is no way to be sure. It is winter and the mountains have been blocked by heavy snow.
He would ask Su Yuwei because he always felt that Su Yuwei was smarter than himself. Often times, he seemed more foresighted than Su Yuwei because he had memories of the previous life.
Without the memory of the previous life, Zhang Qianxiu felt that he could not be compared to Su Yuwei.
In the previous life, Zhang Qianxiu did not "open up", he was just an ordinary office worker, a company's grassroots management, and he did not achieve much.
In this life, Su Yuwei did not have any "plug-ins", and her achievements now are already very good. Zhang Qianxiu actually did very little to help her, and she had tossed it out by herself.
Su Yuwei said: "It is not difficult to excavate river channels in the plains. It is similar to what Shi Lao said, that is, digging pits and then piling up the river bank with stones at a low cost."
"But to dig a river in the mountains, the terrain is much more complicated and the difficulty is much greater. It is winter, and we can't go in and investigate. I don't know if it is as easy as Shi Lao said."
"If the terrain in the mountains is too complicated, even if you want to dig a tunnel, don't say three million, ten million may not be enough."
"After all, it depends on whether Shi Lao deliberately concealed something."
"But overall, I think I can try."
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