“Financial fraud?”

Zhuang Jianye was a little surprised. With Tengfei Group's current operating conditions and financial level, let alone not to mention that it is not fake, even if it is fake, it can still make the financial statements rich and professional. How could it be seen by the regulatory authorities?

So there must be something strange about it.

Sure enough, when the two of them sat down, Cao Jiefang took a sip of tea before continuing: "After all, it was caused by the cancellation of large orders in the energy department some time ago..."

It turned out that after a few years, Zhuang Jianye actively developed the domestic gas turbine market, especially winning most of the domestic coal chemical orders, the market share of Tengfei Group's gas turbines increased from 8% to 22%.

The increase in market share means an increase in product shipments of gas turbines.

With the rapid popularization of D-40 series gas turbines in the coal chemical industry, the stability and maturity of Tengfei Group's gas turbines have been greatly improved. When the D-50 gas turbine series with a higher power is launched, the technical level, fuel efficiency ratio, or operating costs are not inferior to those of foreign giants such as GE, Siemens, and Mitsubishi.

There are even more transcendences in some aspects, especially in plateau performance. Thanks to the sufficient domestic testing environment, Tengfei Group's products are far better than foreign brands.

With technology, products, and funds, more importantly, there are iron-clad support for coal chemical projects that are constantly being launched in other provinces. When Zhuang Jianye saw this, we might as well follow Changhong TV and launch a price war. Not to mention sweeping all foreign brands out, at least we have to increase the market share by 10 percentage points.

So starting from the end of 1994, the D-series gas turbines under Tengfei Group were reduced in price across the board, with a price reduction of more than 10%. This is not counting. While purchasing Tengfei Group's products, it also introduced a series of preferential purchase policies.

For example, it is responsible for free maintenance services within 10,000 hours.

Three thousand hours of free replacement for any problem.

Double compensation for one thousand hours of failure.

Down payment of 20% and installment payment financial services.

Pay full payment and price reduction to enjoy 18% off

...

The introduction of a series of preferential policies instantly ignited the war in domestic gas turbines. International giants such as GE, Siemens, and Mitsubishi quickly followed up, and while they came up with new models, they also launched their respective promotional policies to compete with Tengfei Group's offensive.

Seeing that the gas turbine market was about to return to a constant balance for thousands of years, Zhuang Jianye didn't want to put in a big move. In the second quarter of 1995, based on the previous price cuts, the price of D series gas turbines was reduced by 30% and a total of 40%.

This made the entire domestic gas turbine market halved in an instant.

Now foreign brands can't stand it.

Their advanced gas turbines are basically produced in their own country. Both materials and labor are expensive, and they are imported products when transported to China.

Before the rise of Tengfei Group's gas turbines, these foreign manufacturers' gas turbines are important equipment urgently needed in China and can also enjoy duty-free discounts.

However, when the policy department saw that Tengfei Group's gas turbines had a tendency to replace foreign brands, the tariff discounts for most foreign gas turbine models were cancelled.

Only heavy and super heavy duty gas turbines that cannot be produced in China, which are still subject to certain tariff preferential policies.

The cost remains high? He was also subject to heavy taxes. Foreign brands immediately became empty-handed old man in this price war. That was so willing but not enough.

On the other hand, Tengfei Group has cut the price of gas turbines in half, and it seems to kill 1,000 enemies and lose 800 on its own. In fact, Tengfei Group not only did not suffer any losses, but also made considerable profits from it.

The reason is very simple? Because the domestic heavy chemical industry ushered in a new climax in the construction of the 1990s, various localities introduced a series of preferential policies for this purpose, one of which was to subsidize key equipment, thereby encouraging relevant enterprises to focus on the construction of heavy chemical industry.

Tengfei Group not only stepped on the small trend of coal chemical industry, but also stepped into the big trend of the country's vigorous development of heavy chemical industry.

As the saying goes, standing on the wind, even a pig can fly.

The gas turbine business under Tengfei Group is so light-weight that it is naturally blown to the sky by the strong policy wind.

National key technical equipment subsidies.

Subsidies for key construction projects in the province.

These are the two most basic subsidies? The remaining depends on the specific local economic situation and the importance of the country in the region.

Tengfei Group received five subsidies at most once on a chemical project in Shanghai, and the most once on a project in the capital of the snow district.

It is precisely because of these subsidies that Tengfei Group dares to unscrupulously reduce the price of gas turbines, let alone cut it in half? Even a 20% reduction is not a problem.

Even selling the cost price will not affect Tengfei Group's tiny bits? Because various subsidies can make up for the lost profits.

So? In the first half of 1996, Tengfei Group's gas turbine market share increased rapidly from 22% to 58%, occupying half of the domestic gas turbine market.

When foreign gas turbine giants such as GE, Siemens, Mitsubishi and other foreign gas turbine giants saw this situation, they were like their wife was sleeping by Tengfei Group Group, and they were almost smoking. It was so irreconcilable.

After all, domestic heavy chemical industry and power development are also a considerable profit growth point for them. As a result, they are trying to get excess profits from domestic development, but they do not want to break out of Tengfei Group halfway, not only snatching their profits, but also snatching their money.

As the saying goes, many people are like killing their parents.

Foreign gas turbine giants such as GE, Siemens, and Mitsubishi also began to take positive actions while giving Zhuang Jianye a nickname to the butcher price.

They first criticized domestic trade policies and described the huge domestic subsidies to Tengfei Group as unfair competition, which undermined the principle of the market economy.

How can Zhuang Jianye be tolerated? He directly retorted that Tengfei Group can do not have subsidies, but can you let the country join the World Trade Organization? We are fair in the global market?

When foreign giants saw that we couldn't beat you in China, and we still had global competition. We did this only after being kicked by a donkey. Let's strangle your Tengfei Group to death first.

Since public opinion cannot influence policies, then try to compete for strength.

Isn’t the domestic taxation of imported gas turbines? Then we set up factories in China, except for a few core components, all of them are produced in China, and it depends on how you can do it.

Domestic heavy chemical construction have a laying of domestically produced equipment? We have also produced it in China. Do we also have to enjoy subsidies according to the rules?

Of course, this is not the most ruthless thing for foreign giants. What makes Tengfei Group in a good situation in danger is the comprehensive strength of the giants.

If gas turbines cannot beat Tengfei Group, they will be combined with other important equipment and processing machinery for combined sales.

Tengfei Group's gas turbines are good, but other supporting equipment and machinery are weak. After such tricks, foreign giants quickly saved the situation.

The big order that Tengfei Group lost in the energy department some time ago was taken away by GE using a combination of oil mining equipment.
Chapter completed!