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After listening to Wang Hang's explanation, Deputy Mayor Liu Zexin's interest was peaked.

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 felt in his heart The idea is becoming more and more determined.

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

After finishing the polite official remarks, Vice Mayor Liu Zexin asked straight to the point, Mr. Wang, [Bikong Environmental Protection Development Co., Ltd.] is doing well in Longhua County. Have you ever considered expanding its business in other places?

consider? Do you still need to consider it? Wang Hang dreams of expanding the business of [Bikong Environmental Protection Development Co., Ltd.].

Before [Bikong Environmental Protection 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/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, water used in special service industries and those who have obtained the Special Industry Business License. Including water used by pure water (including bottled water) production enterprises, commercial dance halls, KTVs, nightclubs, clubs, saunas, massages, foot baths, beauty salons, car washes, etc., their water price is 5.4 yuan/cubic meter.

Among them, residential water consumption accounts for 35% of Longhua County's total water supply, non-resident 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 approximately 242 million cubic meters, including 84.7 million cubic meters for residents and 211.75 million yuan in revenue, 096.8 million cubic meters for non-residents and 280 million yuan in revenue, and 0.605 for special water. billion cubic meters, with revenue of 326.7 million yuan.

The total annual water supply revenue is approximately 818 million yuan!

Looks pretty good, right?

However, not all of the 818 million yuan belongs to the water supply plant.

The water price includes three types of fees, among which the tap water fee is borne by the water supply plant, while the water resource fee and sewage treatment fee must be turned over to the finance department and handed over to the government for overall planning.

818 million yuan, only about 30% of the amount is the revenue of the water supply plant, which is about 245 million yuan.

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

However, the total cost of the water supply plant is 1.51 yuan/cubic meter.

With a water consumption of 242 million cubic meters per year, the cost reaches 365.42 million yuan.

The water supply plant's revenue was only 245 million yuan.

In other words, the water supply plant cannot make ends meet!

Annual losses exceed 120 million yuan.

If it were not for the fiscal subsidy of 0.5 yuan per cubic meter, the water supply plant would have been unable to continue its operation and would have been closed down for a long time.

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

But it was different after [Bikong Environmental Protection Development Co., Ltd.] took over [Longhua County Water Plant]. After transformation and the use of new processes, and the use of the [Smart Ring] management system, the staff was reduced, and [Longhua County Water Plant] The production cost and operating cost of water were suddenly reduced. After comprehensive calculation, the cost of water price was only 0.48 yuan.

Longhua County uses 242 million cubic meters of water a year, and the cost is only 116 million yuan.

As mentioned before, Longhua County Water Plant’s annual revenue is 245 million yuan.

The difference between the two is 129 million yuan.

This 129 million yuan is the gross profit of [Bikong Environmental Protection Development Co., Ltd.].

The water supply in one county alone can earn a gross profit of 129 million yuan. What about a city or a province?

Not to mention the profits from sewage treatment.

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

There is not much money to be made from domestic sewage treatment fees, which is a gross profit of 10 to 20 million a year.

But in terms of producing sewage, [Longhua County Sewage Treatment Plant] makes a lot of money. Assuming that it can produce 30,000 tons a day, that is 10.95 million tons a year. It can earn more than three yuan per ton, so this is also three to four thousand yuan. A gross profit of 10,000 yuan.

All things considered, this is another gross profit of 50 to 60 million a year, which is already quite a lot.

This is still the income of a county!

And it’s because Longhua County is not a large industrial county. Otherwise, the profits that can be earned from industrial sewage treatment will at least be doubled several times!

From the water supply and sewage treatment costs alone, [Bikong Environmental Protection Development Co., Ltd.] can earn a gross profit of close to 200 million. Even with fixed expenses for pipeline construction and reservoir repair, the annual net profit will not be less than 100 million.

And this is the profit from drought and floods.

A county can earn a net profit of 100 million, how come Wang Hang has no motivation to expand!

You must know that Guangxi Province has 111 counties or urban areas.

A county or urban area can earn 100 million, and 111 can earn 11.1 billion. glutinous rice

What kind of business can make such huge profits?

Of course, compared with the water industry, the profits of the garbage recycling industry are not that high.

Like the sanitation business, after [Bikong Environmental Protection Development Co., Ltd.] increased the wages and benefits of sanitation workers, this area will definitely be losing money.

Fortunately, other business lines in the garbage recycling industry are still profitable. Generally speaking, they are still profitable, but not much. But after a year, there are hundreds of millions in profits.

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Although Wang Hang was eager to expand in his heart, he could not act too impatient. Faced with Liu Zexin, the deputy mayor of Luzhou City, he hesitated and said with an embarrassed look, Mayor Liu, what do you think we should do? 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, not long after the company entered this industry, it invested a lot of money. As you know, this is an asset-heavy industry with high capital requirements. During this period, the parent company invested heavily in the breeding industry. ,so……

Hey! Secondly, even if we want to expand, we actually 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 Official Wang of Longhua County. It was acquired by Cai Cai [Green Water Water Group] at a premium. Our company has conducted an internal evaluation and found that our company has paid an extra 7 to 8 million yuan for this project alone.

Nowadays, the water affairs in various cities are contracted by various water groups. It can be said that it is a carrot and a pit. Our company does not have it, and we are not willing to take advantage of it anymore.

So, our company is determined 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 Wang has put a lot of effort into promoting your [Bikong Environmental Protection Development Co., Ltd.] to be successfully established in Longhua County. , and used a lot of political resources, which I have also heard in the city.”

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

What the hell! Mayor Liu, you are trying to kill us! Wang Hang said immediately after hearing this.

Mr. Wang, [Bikong Environmental Protection Development Co., Ltd.] you have the confidence to be proud! Liu Zexin, 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 leaving the water, sanitation, and garbage recycling services in other areas of the city to your company?

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

Wang Hang hesitated to speak, his meaning was obvious.

I can pass the decision on environmental sanitation in Luzhou City to you as soon as I make the decision. As for water affairs, I will communicate with [Green Water Water Group]...

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

Wang Hang has long received the order from above. If possible, Luzhou City should be included in the pilot city to test the [Smart Ring] and accumulate big data information. To this end, some reductions can be made in terms of related expenses. .

The annual contracting fee for environmental sanitation is 50 million, and other standards are the same as Longhua County. Mayor Liu, what do you think? Wang Hang reported the conditions in the plan.

Luzhou City Deputy Mayor Liu Zexin's eyes flashed with joy, and a faint smile appeared at the corner of his mouth, Then, Mr. Wang, just wait for my good news.

There is a reason why Liu Zexin is so happy.

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

Luzhou City has long wanted to get rid of this burden.

If [Bikong Environmental Protection Development Co., Ltd.] really contracts Luzhou City's environmental sanitation for 50 million yuan, then it can save the Luzhou City Government more than 50 million yuan in expenditures, and the finances will not be so tight. .

The same goes for Luzhou City’s water affairs.

Liu Zexin conducted research in Longhua County. Although he did not know the cost of [Bikong Environmental Protection Development Co., Ltd.], the revenue and expenditure should be able to maintain a balance without 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 a few hundred million a year, or even more.

This alone is very attractive to the government.

You know, the finances of the Luzhou City Government have been very tight in recent years. There has been a serious population loss. Young people have gone out to work, and local taxes cannot be collected. The pressure has always been great.

Even if there is some insider trading behind these industries, being able to reduce such a large financial expenditure is enough to make some leaders who want to make a move start thinking about it.

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Less than a month after Liu Zexin, the deputy mayor of Luzhou City, returned, he brought good news to Wang Hang.

[Bikong Environmental Protection Development Co., Ltd.] fully acquired all the shares of [Green Water Water Group] for 110 million yuan, and contracted debts of 160 million yuan.

Of course, the entire Luzhou City's sanitation industry and garbage recycling industry are also coming at the same time.

[Bikong Environmental Protection Development Co., Ltd.] has recruited personnel, integrated business, transformed production lines, and entered a new stage of development.

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