Far away's internal problems had been resolved, but that didn't mean that Li Dong could just sit around and do nothing.
Far away still had many problems to deal with.
First, there was the issue of industry competition!
Several large supermarkets in Pingchuan were determined to fight with Li Dong to the end. It had been close to ten days, and the price drop storm still hadn't subsided.
Far away had lost at least five million in those ten days!
However, Li Dong couldn't back down now. If he did, he would lose a large portion of Pingchuan's market.
Distance Marketing had built so many branches in the Great Plains. If they lost a large portion of the market, the trouble that would come after them would most likely be beyond redemption.
This was the first problem Far away was facing.
Second, there was the distribution center.
If they couldn't get it by the end of the year, they didn't know how long the negotiations would last until early next year.
If they dragged on for too long, the distribution center might be delayed until the year after next.
By the year after that, Far away would have more than a hundred branches, maybe even two hundred.
Now, there were less than seventy branches. Far away's logistics system was already struggling. Most of the logistics channels relied on other logistics companies. This was another hidden danger for Far away.
Other than these two problems, the headquarters building couldn't be delayed any longer.
Li Dong didn't know how many employees Far away had, but he had a rough idea.
All the branches added up had more than three thousand employees. This wasn't a small number.
When they recruited a few dozen or a hundred people previously, they could still make do with Worldwide. They could also borrow the branches for training.
However, when they recruited seven to eight hundred people in one go, they didn't even have a place for training.
In the end, they had to borrow a large warehouse in the suburbs of Far away to solve the training problem. This made Li Dong realize that without his own headquarters, not only would it weaken the employees' sense of belonging, it would also make the higher-ups of Far away lose confidence.
Now that so many people were holed up in Worldwide, the higher-ups' office space was getting smaller and smaller.
Now, other than the higher-ups like Li Dong, the other department heads had to share an office with a few other heads. This was a big blow to morale.
There were many things to do, but they couldn't be rushed.
Li Dong worked hard and prepared to deal with everything one by one. It would be best if he could deal with all these matters by the end of the year.
When 2006 began, Far away would enter a new page.
…
Among the three things, the industry competition needed time, so Li Dong decided to stay put for now.
However, the other two matters could be put on the agenda.
In mid-December, Li Dong initiated the third negotiation with the Southern Suburbs government.
Whether it was Far away or the Southern Suburbs, this negotiation was urgent.
Far away was hoping to get this piece of land as soon as possible and start construction in early spring next year. If the construction was fast, it could be completed by October next year and put into use before the end of the year.
Compared to Far away, the situation in the Southern Suburbs was more urgent.
Far away and South Lake's further negotiations made the Southern Suburbs government anxious. Initially, they thought that Far away might be pressuring them.
However, when they received news from Nanhu that Vice President Wang Yue, who was Far Away, had already begun to conduct field investigations, the government officials in the southern suburbs could not hold it in any longer.
Both sides were eager to make this negotiation a success.
In fact, everything that needed to be discussed had already been done. The only problem left was the nature of the land, whether it would be commercial or industrial.
However, since things had reached this stage, the Southern Suburbs government was willing to take the initiative to negotiate. This was enough to explain a lot of problems.
In fact, the municipal government did not interfere in this negotiation. Instead, they let the Southern Suburbs government negotiate with Far Away.
The third negotiation did not last long. In just three days, both sides reached an agreement.
The most important part of the agreement was the land. The Southern Suburbs government made a concession.
The land would be given to Far Away based on the nature of industrial land. However, in terms of price, Far Away had to buy it at 20% higher than the market price.
In fact, this was to give the government a way out. If it was commercial land, the land would be worth almost 200 million.
However, according to industrial land, it could be bought for 50 million.
Even with a 20% increase, it would only be 60 million. A hundred thousand square meters of land, 60 million was not a loss.
However, it was not easy to take advantage of the government. The reason why the Southern Suburbs government was willing to invest in Far Away's distribution center was naturally for political and economic achievements.
If Far Away could not meet the requirements of the Southern Suburbs government, the government had the right to buy back the land.
Li Dong quickly agreed to this. He knew the distribution center very well.
Not to mention anything else, just think about the Ma Qun distribution center in Nanjing. A Ma Qun distribution center could support many people.
Su Guo relied on this Ma Qun distribution center and gained a lot of benefits.
If it was not for Far Away's sudden rise in Jiangbei, Su Guo would have the intention to enter Jiangbei. All of this was the influence of the Ma Qun distribution center.
After the negotiation, there was no need for Li Dong to intervene.
Just as Li Dong was about to get busy with the headquarters, the financial director, Liu Hongmei, came to tell him that there was no money!
Li Dong did not dare to believe it. How could there be no money!
Not long ago, Shen Qian used the land in Hua Manor to borrow 50 million from the bank. 50 million was not 500 RMB. Moreover, Far Away's blood supply was very strong. There was no problem of funds being cut off.
Li Dong's face was gloomy. "How much money does Far Away have?"
"Less than 100 million."
Li Dong frowned. "How can it be so little?"
He was not putting on a show. He was speaking the truth. For the current Distance, a reserve of 100 million was really not a lot.
In Li Dong's impression, Far Away could use more than 200 million just from the payment of goods and shopping vouchers.
In other words, Far Away not only owed the bank 90 million RMB, but it had also used more than 100 million RMB.
More than 200 million RMB in debt was out of Li Dong's expectation.
Liu Hongmei had guessed that Li Dong did not know the exact amount of money. She immediately said. "General Manager Li, I will calculate the accounts for you today."
"Let's start calculating this from the beginning of the year. At the beginning of the year, other than the payment for goods and shopping vouchers, there was not a single cent left in Distance's account. That is to say, at that time, other than the few Qingyang stores and the Longhua store, we had zero assets.
"Next, I will tell you about this year's revenue."
"The six shops in Qingyang and Longhua have been open for 10 months. The total profit is 88 million."
"The seven stores in Mound City opened in July. They have been in business for five months and have made a total profit of 46 million."
"The twelve stores in Tong Shan opened in September. So far, they have been operating for three months and have made a total profit of 26 million."
"The five convenience stores in Pingchuan have been open for two months. The total profit is about 4 million."
"The other 10 new shops are not making any profit at the moment. The total profit is 164 million."
"Then, let's calculate the expenditure. The 19 stores in Mound City and Tong Shan cost 40 million, 75 million from Baidu shares, 80 million from the land in Washington, and 39 stores in Pingchuan. The total investment is close to 200 million. There are also other expenses such as cars, floor rentals, and donations. The total is 25 million. That's a total of 440 million. "
"We made a profit of 164 million, took a loan of 90 million, and spent 440 million. In total, we overdrew our funds to a total of 186 million!"
Li Dong was a little dumbfounded after calculating the debt.
He had spent more than 400 million this year?
This did not include the land for the distribution center. If he included it, he would have spent 500 million this year.
Now he had overdraft of more than 100 million. Including the loan, it would be almost 280 million.
Li Dong felt a headache coming on.
No wonder he was out of money. He had spent more than 100 million on goods and vouchers. It would be good if he still had 100 million left.
But he could not use this money now. So far away had such a big business. If he did not leave 100 million in reserve, Li Dong would not be at ease.
Then where would he get the money for the distribution center?
Baidu's shares could only be sold in March next year. That meant he had to wait no matter what he wanted to do.
Li Dong thought for a while and asked, "Are there any other places to spend money this year?"
"Not at the moment. The money for the branch in Pingchuan has been transferred out. That money should be enough to build the branch in Pingchuan."
"As for the distribution center, it is not urgent. We can delay the government. So far away, we have more than 30 shops. Every month, we can earn about 30 million. In two months, we will have enough money to buy the land at the beginning of the year. "
Li Dong rubbed his temples. Right now, the Distance Mercenary Group was almost completely reliant on these thirty or so shops for blood supply.
Pingchuan had invested so much, but there were almost no returns.
On one hand, it was because the shops were not completed. On the other hand, the price war with the supermarkets was hurting both sides.
Otherwise, when Ping Chuan's 30-odd shops opened, he would be able to earn at least 20 million contribution points a month.
In this way, all the stores would be profitable, and he should be able to earn about 50 million a month.
600 million a year. With that much money, he could do whatever he wanted.
Unfortunately, these were all wishful thinking. Pingchuan had become a money-eating machine. No matter how much money he had, it would not be enough.
Especially for the distribution center. It was close to 200 million. Washington would need at least 100 million. In total, it would be 300 million.
Even if Li Dong sold his shares now and recouped his losses, the remaining money would barely meet his requirements.
After a rough calculation, Li Dong had no money left in his hands after a year. He had to include his stocks as well.
However, according to his calculations, in this one year, he had gained a headquarters, a distribution center, and more than 60 shops.
This was all he had gained, and also all the capital he had on hand.
Out of boredom, Li Dongxian did some calculations. It shouldn't be a problem for 70 shops to be valued at 350 million yuan.
The land and buildings in the Hua Residence were valued at 250 million yuan. It was not a problem.
The distribution center would be valued at 200 million. This way, his total assets would reach 800 million.
Of course, there were some things that Li Dong had not calculated.
For example, the value of the shops. So far away's brand. These intangible assets were also worth a lot.
If he really calculated it, it would not be far from 1 billion.
Li Dong took a deep breath. He did not expect that he was so rich.
Previously, when people said that he was a billionaire, Li Dong wanted to spit at them. But now, it seemed that those people had foresight.
Unfortunately, as a billionaire, Li Dong did not even have the money to buy a piece of land.
60 million was not a small amount.
Looks like there was no way to start construction this year. The weather was cold now, and he could only wait until next year.
Also, he had to get rid of those annoying supermarkets as soon as possible. He had lost a lot because of those supermarkets.
If it was not for those supermarkets, all the branches in Pingchuan would be open by the end of the year.
Every month, they would bring in at least 20 million, and that was the minimum.
If his business was better, and he was the only one who could monopolize the business, he might be able to earn more.
Previously, Li Dong wanted to drag it out. But now, it seemed that he could not drag it out any longer.
He did not have any money for the headquarters and distribution center. That meant that there was only one thing he could do for the rest of the year.
There was still one month before the New Year, and it would be the peak of the year.
If he were to start a price war now, he would be making a huge loss.
One month. At most one month. He must get rid of these people!
Li Dong gritted his teeth. He did not believe that these supermarkets could compete with him with just one branch!
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