Reborn 92's Business Tycoon

Chapter 257: A Fat Year

Girls are so easily satisfied. Fang Yingzhi's half-true, half-false compliment made Huang Jingping, who had been holding back for a long time, relax her guard. Feng Yiping had done such a big thing, and the result was of course even better. Huang Jingping walked with a bounce for several days in a row, humming a little tune when she was in the kitchen.

It seems that the predecessors were right: there is never too much of a good thing, and it is never too late to start preserving.

After New Year's Day, the slogans on the doors of various government agencies were removed, and life and work returned to normal. As the trucks from the provincial capital delivered to the city, the annual summary reports for 1998 from various companies also arrived in Feng Yiping's hands.

The first one to arrive was Jia Sheng Decoration. This was definitely not written by his brother-in-law. Judging from the writing style and the predominance of data and tables, it should be the handwriting of the financial director, Li Lin.

He glanced over the previous process and focused on the three tables at the back.

Jia Sheng Decoration's operating income this year exceeded 13 million yuan. Of this, 95% was for renovations for individual owners, and the remaining 5% was for renovations for units. More than 90% of the individual owners did not request invoices, so, hehe, the taxes and fees were quite small.

Administrative expenses are also lower than average because at the moment, owners are still lining up to get their homes decorated by Jiasheng. There are no business expenses or advertising costs. Of course, there are some entertainment expenses. At the end of the year, it is inevitable that some government officials from relevant departments will be entertained.

Finally, on the table shown to Feng Yiping, after deducting income tax, the profit margin is still as high as nearly 20%. Of course, this is for Feng Yiping and the others to see.

The accounts for the company show a rather dismal performance, with various expenses remaining high – doing this is really child's play for Li Lin, a certified public accountant.

Therefore, the final profit tax submitted can only be described as really not much. However, Li Lin has already said that, in terms of the entire industry, a level like Jiasheng's cannot be said to be the conscience of the industry, but it is definitely a conscientious enterprise.

This is probably why many people in society later on, while shouting about the various domestic taxes and levies, and how they add up to many times those of developed countries such as Europe and the United States, rarely see them quit because of the high tax burden. The reality is that the various prescribed tax burdens are indeed high, but how many people actually pay taxes in full compliance with the rules?

But try it in the United States, where the Internal Revenue Service staff are armed and their deterrent effect exceeds even that of the CIA and the Department of Defense. From top government officials to gang leaders, there have been more than a few people brought down because of tax issues. As for ordinary people and businesses, if you steal or omit to pay just a little, you will definitely experience consequences that will pierce your heart more deeply than the domestic dictatorship.

To be honest, after seeing the real income and the taxes paid, Feng Yiping felt a little embarrassed for a few seconds. Well, maybe it was more than a few seconds, but that was about it. He didn't go crazy and try to pay back the taxes.

As his brother-in-law said, there are already two plaques in the company, issued by the tax authorities of the jurisdiction, which read 'Honest Taxpaying Enterprise'. If you feel guilty and pay back the taxes, that's not a good thing, and you will really offend a lot of people from the tax bureau.

Feng Yiping was also pretentious for a moment, thinking that after that he would tear up the form and then look at the balance sheet. The form was very neat and didn't contain much content because Jiasheng had no debts. Even their purchases of raw materials were paid for in cash because that was the most affordable price. So, in the end, although Jiasheng Decoration didn't have many fixed assets, its total assets were close to five million.

As for cash flow, that was also very abundant. In the account opened in the personal name of his brother-in-law, there were currently several million lying around.

At present, the profit of Youjia is not very good. Although as of the end of last month, the 40 stores in the provincial capital and the 10 stores in the city, a total of 50 stores, have sold a total of 7,530,000, there have been too many various initial investments. For example, at the beginning, a few dozen people stayed in the city for a month or two and opened ten stores. Therefore, the net profit of Youjia Convenience is less than 8%.

However, as the number of stores increases, a network is formed, and sales revenue increases, various costs will be lowered accordingly. It can be imagined that by the end of 1999, it will easily surpass several other companies and firmly take the top spot.

As for Zhitong, well, it has brought Feng Yiping a lot of hidden benefits, but just looking at the data on paper, it is really one that loses money.

Since its establishment, it has invested a lot, but has only sold five systems. The one for the noodle shop only cost 50,000 yuan, the most expensive being the one for the convenience store, which cost 300,000 yuan, the Jiasheng cabinet shop in the town cost 100,000 yuan, and the aluminium products factory that is being rebuilt, Ding Qiang and Hong Haoran argued for two or three days and finally settled on 90,000 yuan. Outside the system, there is only the City Tools Factory, and with the cost of training and mentoring, it totals more than 130,000 yuan.

This is all the revenue it has, which adds up to less than 700,000 yuan. However, with the sales director Wang Zhiqiang making an effort, at least a small profit can be made next year!

As for the two factories in town, the aluminium products factory, and the project team preparing for the construction of the hotel, they are currently spending money, so there is only expenditure and no income. Moreover, the expenditure is substantial. The two factories in town have spent more than 3.3 million, and the aluminium products factory has currently spent nearly 2.1 million. The major expenditure is the hotel project. The land by the river was acquired as a whole at a very favourable price, and just like that, the expenditure was nearly 10 million.

In short, over the past 98 years, Feng Yiping's income from all these companies, if combined with his share of the noodle shop's income, has comfortably exceeded 5 million yuan. Add in his royalty income, and it's already passed 6 million yuan. Of course, this doesn't take into account the windfall he made over the summer. Just from speculating on the Russian rouble during the summer, he made over 40 million US dollars.

Moreover, almost all of his companies have no debt. Of course, from a financial point of view, this may not be a good thing, but since he has his own money, there is currently no need to borrow money, which would incur additional financial expenses.

Among them, the income from the noodle shop does not go to him at the moment, and it is all in the hands of his parents, Feng Zhenzhang and Mei Qiuping, who are preparing to buy a house, either a villa in the provincial capital or a house in Shanghai – this is mainly instigated by Feng Yuxuan.

In addition to these financial gains, there have been some very welcome changes, mainly due to his hard work. Liangjiahe Middle School built its teaching building ahead of schedule, and the village built the road ahead of schedule.

What's even more gratifying is that, under their leadership and with their authorisation, a total of 33 households in the village have opened 48 stores in various parts of the province, and another 30-odd households are selling roasted chestnuts in various parts of the province. This trend is still expanding. At the same time, with the two factories in the town starting production, Fengjiachong has seen the first phenomenon of returning migrant workers, such as Feng Hongbing and the others.

In short, it was a bumper year.

Later, at the end of each year, when the income was good, depending on the profit, Feng Yiping would always take the family on a trip, basically within the country. This year's income, if calculated according to his later standards, would allow the family to go to Hawaii or Fiji for a holiday at least, or fly directly to Europe and go shopping.