Chapter 54 Entering Zhongshi Oil (Seeking Clicks and Recommendations)

  "Leadership instructions: the transformation of scientific and technological achievements into real productive forces should fully respect the labor of scientific and technological workers. Therefore, it is decided to allocate 12.99 million US dollars in full patent fees to Comrade Su Cheng, that is, you."

  Ding Zhipeng had gone through the materials of Su City countless times in the train compartment, but now seeing his youth and calmness, he still sighed and said in a relaxed tone: "Of course, according to our country's regulations, apart from paying taxes in full, it's best to exchange US dollars for RMB."

  The official exchange rate is 3.7, half of what you'd get on the black market.

  Su Cheng took a deep breath, first digesting the news brought by Ding Zhipeng, and then quickly grasped the two words "best" and asked tentatively: "If I don't exchange for RMB, can I directly deposit US dollars into my account?"

  A female cadre who was behind Ding Zhipeng coughed and said, "Several million yuan is not enough to spend?"

  "This isn't a matter of whether it's enough to spend, this is about me exercising my own power." After two minutes of conversation, Su Cheng had already gotten used to their tone, speaking in a grandiose manner.

  Although the TiGai Committee is indeed powerful, it is ultimately under the leadership of the Central Government. Even if you use your toes to guess, you would know that this matter has been approved by higher authorities. Otherwise, even if it were the Shandong Provincial Committee or the Minister of Petroleum, they wouldn't have the power to approve a $12.9 million deal for Su City.

  If "haggling" is not allowed, why should this lineup appear? Just send a document over, and who dares to refuse execution.

  Ding Zhipeng indeed showed a difficult expression, and advised: "If you want to keep a small amount of US dollars, we can ask the People's Bank comrades to prepare several hundred or several thousand US dollars. If it's more than that, it's not easy."

  At this time, everyone at the oil school was already on shaky ground. A few hundred dollars could still be imagined, but a few thousand dollars were beyond their concept. No one knew what so much money could do, let alone buying American flour to eat every day.

  It was some cadres who took out their spare time and led them out of the classroom. Now naturally no one will pursue the "early love" issue anymore.

  When only a few people were left in the room, Su Cheng finally spoke up: "I don't want to exchange US dollars for RMB at the official rate. If I must not keep the US dollars, can I use them to buy foreign goods?"

  "What then? Become a self-employed individual?" The female cadre was opposed to the allocation, her tone as stiff as if she had swallowed a wooden stick.

  Su Cheng said with a smile: "It's not impossible. Or, I can ask some individual vendors to help sell on my behalf. After all, the difference is several million, and it's worth working hard for."

  The female cadre's head was tilted to one side. Her monthly salary plus allowance barely reached a hundred yuan, and now hearing others use millions as a unit, she naturally felt strange.

  Ding Zhipeng started from a political perspective, but did not want the image of "scientific and technological workers" established by the state to be tarnished by corruption. After advising several times without success, he proposed another plan and asked: "Su Cheng, we are now doing pilot reforms for state-owned enterprises. Since you have sufficient funds, would you be willing to participate in the operation of state-owned enterprises? If the funds are allocated in this way, not only can you enjoy the preferential treatment of overseas Chinese investment, but also exempt from income tax."

  Overseas Chinese investment means counting in US dollars. Suzhou has already nodded secretly, and it's unrealistic to ask others to pay at the black market price.

  A female cadre added: "The starting point for personal income tax is 400 yuan, and 1.29 million yuan will be taxed at 5.64 million yuan."

  It's not scary if you don't think about it, but once you calculate it, it's frightening. Not only Suzhou, even Ding Zhipeng's temples are throbbing with anxiety.

  $560,000, more than the fiscal revenue of some prefecture-level cities. In fact, the original personal income tax was aimed at high-salary foreigners, with a starting point of 800 yuan in 1979, which is more than 10 times that of national senior officials. It wasn't until 1986 that it was revised to 400 yuan, but for foreign personnel, it remained at 800 yuan.

  Buying state-owned enterprise shares is the most cost-effective way, exempt from income tax and no need to sell US dollars at the national price.

  Su Cheng originally didn't plan on sleeping soundly with several hundred thousand yuan in savings - doing so would probably make him sleep uneasily.

  He hesitated for a moment and asked: "Which state-owned enterprises can I invest in?"

  Ding Zhipeng retorted: "Which state-owned enterprises do you want to invest in?"

  "CNPC!" Su Cheng rushed out of his mouth.

  Several people present were stunned for a moment before reacting. Ding Zhipeng laughed angrily, saying: "You young man, you're quite something! China Petrochemical hasn't even been listed yet and you've already set your sights on it? Are you thinking of getting in on the ground floor of the petroleum department?"

  They are all members of the reform committee, so they naturally understand the departmental reforms for the next year.

  Su Cheng awkwardly smiled twice, but his heart surged with waves. If Buffett can invest in PetroChina, why can't I?

  Of course, this is something that cannot be said at this time.

  "What about the Shengli Oil Field?"

  Ding Zhipeng shook his head again.

  "So, the oil field machinery factory?" Su Cheng said that if he had $12.9 million, it was indeed possible to rebuild a factory. However, he only understood a bit about design and was clueless when it came to managing and building a factory. If he were given a new factory without sufficient management, technical expertise, or skilled workers, wouldn't it be completely mismanaged?

  In 1987, there were no headhunting companies. Workers and managers familiar with the factory were mostly state-owned enterprise employees holding iron rice bowls, an era when people couldn't be hired even with money.

  Ding Zhipeng looked back and a few people discussed in low voices for a while, then said: "It's okay. However, the number of shares will be calculated based on the actual situation and also need to solicit opinions from the workers."

  "No problem." Su Cheng didn't mind not having controlling shares. He was already the second-in-command of the factory, which was enough to exert his influence. Besides, this was a large factory that occupied nearly 4,000 mu of land. Even if they just sold the land 20 years later, they could make several hundred million yuan.

  As for now, the main calculation method of factory assets is the total amount of plant, equipment, inventory and accounts receivable. No matter how you calculate it, he doesn't lose out.

  However, taking advantage of the fact that several people were present, Su Cheng somewhat reluctantly asked: "Next year when China Petrochemical goes public, can my assets in the machinery factory be calculated as shares in China Petrochemical?"

  "This, we need to study." Ding Zhipeng did not bluntly refuse, but instead shocked Su Cheng.

  In fact, this has a historical context. 1987 was an important experimental stage for the State Commission for Restructuring the Economy to carry out shareholding system reform in state-owned enterprises. Including Ding Zhipeng, all Chinese people were uncertain about the final result of the shareholding system reform. Just a few years ago, people were still opposed to contracting and leasing, but now the transfer of operating rights is no longer a concern, and it has touched on the core issue of property rights.

  From Ding Zhipeng's perspective, Suzhou has the ownership of the machinery factory and the ownership of Sinopec, which is not essentially different... Moreover, Sinopec's listing requires calculating the assets of its subsidiaries and merging them into the parent company. Suzhou's request is also reasonable.

  Even so, due to CNPC's large capital, Suzhou City as a small shareholder investment, is even less noticeable than occupying the machinery factory's larger proportion of shares.

  Ding Zhipeng was willing to make it a pilot project, and said: "After we complete the mechanical factory's shareholding system reform, let's take a look at the situation, but you can actively apply."

  Su Cheng naturally nodded repeatedly. If the shares that Buffett got when he invested in PetroChina in 2004 are considered original shares, then what about his investment in 1988? Wasn't it legendary founder's shares?

  Soon, comrades from the Central Body Reform Committee were taken away by the oil field leaders. The leaders of the Petroleum School smiled foolishly, waving goodbye in the exhaust fumes, seemingly harmless like a panda.

  When they arrived at the Su City, the instructor was smiling and shouted: "Shulan, Director Su has arrived, go play quickly, I'll help you ask for leave."

  The teachers around couldn't help but turn their heads.

  ……