During this period of time, Royal Fund and the Mitsui Foundation have conducted several rounds of in-depth cooperation. The two parties have established a series of joint ventures, forming a pattern of allies with shared interests.
Home appliance brands such as Sony, Toshiba, Panasonic, and NEC owned by the Mitsui Foundation have set up export production bases in China. While reducing production costs, they have successively launched price reduction promotions to expand their market share in the mid-to-high-end field of the international market, with considerable results.
good.
Squeezed by the joint efforts of upstream and downstream manufacturers of Chinese and Japanese home appliances, South Korean home appliance manufacturers such as Samsung and LG were completely miserable. A large part of their market share was eroded and their profit margins plummeted.
early 2005
Toshiba's flash memory business under the Mitsui Consortium was sold to Atlantic Jinko Group and acquired 6.3% of the other party's equity through a share exchange transaction. Since then, it has become the second largest shareholder of Atlantic Jinko, and can enjoy the huge profits of the leading company in the memory chip field.
At the same time, cooperation projects between the two parties continue to
Wang Yaocheng is like a hard-working spider, constantly intertwining the interests of the Royal Family Fund and the Mitsui Consortium, making them intricate and indistinguishable.
In the Australian FMG Resources Company project, witnessing Wang Yaocheng's great courage and brilliant success, Mitsui Takauchi is also willing to deepen the tie-up with Royal Fund and promote in-depth cooperation between the two consortiums.
FMG Resources rose like a rocket and became a myth in the mineral resources industry.
The value soared from 18 million Australian dollars in 2003 to about 50 billion Australian dollars at the end of 2005. The value increased 2,770 times. The ugly duckling turned into a golden phoenix.
How did this all come about?
In early 2003, Forrester acquired 47% of the shares of Allied Mining & Prog, a company listed on the Australian Stock Exchange, for A$8.4 million, and renamed it FMG on July 19, 2003. At this time, it was worth A$18 million.
Australian dollar.
Forrest raised hundreds of millions of Australian dollars through mortgage loans and financing to purchase more mining rights, and discovered billions of tons of iron ore reserves in the Pilbara region, prompting the company's rebirth.
Calculated based on the price of Royal Fund’s acquisition of FMG, the purchase of 47% of Forrest’s equity cost 974 million Australian dollars. The value of FMG before delisting was 1.77 billion Australian dollars. The company has officially entered the delisting and reorganization process.
Soon after, the 2.0 version of FMG Mineral Resources Company, which was integrated into seven large and medium-sized mines, made its debut. Royal Fund invested A$8 billion to fully launch the 150 million tons production capacity plan.
In version 2.0, the value of FMG Resources has risen rapidly to about 15 billion Australian dollars, and with the impact of rising international iron ore prices and good news about the rapid progress of the project, the value has continued to increase.
What followed was the investment of shares by the Mitsui Consortium and Huaxia Steel Enterprises, as well as the conclusion of the long-term agreement price negotiations in 2006, further pushing up the value assessment of FMG Resources, reaching an astonishing valuation of 50 billion Australian dollars, equivalent to about 23 billion U.S. dollars.
As a traditional resource company, the valuation of FMG Resources Company has little moisture, let alone room for imagination. Instead, it grows with the growth of overall strength and profitability.
Even so, he can be said to be the most handsome boy in the field of mineral resources, attracting everyone's attention.
Everything that happened in Australia established the Mitsui Consortium's recognition of Wang Yaocheng's genius business ability and further deepened the cooperation and trust between the two parties.
Since this time;
Various application chips used by brands such as Toyota Motor, Sony, Toshiba, Panasonic, and NEC owned by the Mitsui Foundation fully adopt Royal Fund Troika products, and the industrial chain is fully integrated to promote each other to form stronger competitiveness.
HSBC and Sumitomo Mitsui Banking Corporation have implemented a share swap transaction. HSBC paid 3.31% of its shares to acquire 10% of Sumitomo Mitsui Banking Corporation's shares, becoming each other's second largest shareholder, which is conducive to the two banks achieving in-depth financial cooperation.
The Sino-Japanese joint venture Yangzijiang Shipyard in Jiangsu Province has received large orders, including 22 300,000-ton iron ore carriers, 10 150,000-ton Cape Good Hope-class dry bulk carriers, and 12 11,000 TEU ships from Swire Shipping
Container ships include orders for large oil tankers, natural gas carriers and 300,000-ton iron ore carriers from the Mitsui Consortium.
This shipbuilding company has applied Mitsui Shipbuilding's rich shipbuilding experience, coupled with the abundant domestic skilled shipbuilding workers, and backed by two wealthy fathers who have plucked the hair out of their legs and have thicker waists than others, it embarked on a counterattack not long after its establishment.
road.
There are some things that I really can’t envy.
In addition, Royal Fund has spent 27.7 billion US dollars to acquire 19.2% of Toyota Motor's shares in the market through 21 rounds of shareholding increase, ranking as the second largest shareholder. Its ultimate goal is to obtain 20% of the shares.
The Mitsui Consortium spent 9.2 billion Australian dollars to acquire 20% of the shares of Australian FMG Resources, becoming the second largest shareholder.
The Kidman family spent 1.85 billion Australian dollars to acquire 4.4% of the shares of Australian FMG Resources, ranking as the third largest shareholder.
China Baosteel Group spent 1.85 billion Australian dollars to acquire 4.4% of the shares of Australian FMG Resources, becoming the third largest shareholder.
In addition, steel companies such as MCC, Shougang, Wuhan Iron and Steel, Hebei Huafeng and Valin have successively taken shares, occupying varying amounts of shares.
Through some coquettish operations and taking advantage of the surge in the world's iron ore, Royal Fund achieved its investment goal of quadrupling and recovered more than 15 billion Australian dollars through the release of shares, far exceeding the tens of billions of Australian dollars invested in the project.
.
In addition, FMG Resources has formed a de facto interest alliance with the Mitsui Consortium, which is experienced in the bulk resources industry, and Huaxia's final major iron ore customer. All parties are mutually beneficial and win-win, and the upstream and downstream channels are completely opened up.
This is really a win-win situation. Royal Fund also controls 64.5% of the equity of Australia's FMG Resources Company, which can attract more allies to join the ranks and achieve win-win cooperation.
One of the most sensational events in the world's financial circles in 2005 was the five-and-a-half-month "long-term agreement" negotiations. Finally, on November 3, 2005, several parties reached a benchmark for a 35% increase in iron ore prices in 2006.
price agreement.
In the field of world bulk resources, for every one dollar increase in the price of iron ore, major buyers led by China, Japan and South Korea will have to pay an additional US$780 million, which is an astonishing amount.
What astonishes the whole world is that China's rapidly developing economy has an endless demand for iron ore, and its appetite is frightening.
Looking back at history
In 2004, China imported 166 million tons, surpassing Fuso with 149 million tons, ranking first in the world in iron ore imports for the first time.
Then, I turned on the unparalleled mode and ran all the way, and I couldn't contain myself at all.
In 2005, China's iron ore imports jumped to 281 million tons, and are expected to reach 380 to 400 million tons in 2006. Such a good appetite has simply shocked the eyes of the people who eat melons.
In view of this
The stocks of companies in the world's bulk resource field have generally risen. Correspondingly, the prices of iron, copper, tin, aluminum, and nickel ores have soared, and there has even been a shortage of resources.
In this case
In the 2006 "Long-term Agreement" benchmark price negotiations held in Los Angeles, the United States, the three major mines put forward an astonishing demand for a 71% increase in the "Long-term Agreement" price. However, iron ore importers led by China, Japan and South Korea refused to comply.
, the negotiations between the two parties fell into a stalemate for several months.
This price increase is so shocking that even Nippon Steel and Posco, which produce mid- to high-end steel products, cannot afford it.
If history remains unchanged, after months of anxious negotiations.
Japanese and Korean steel companies, including China, became the final losers. In the end, they could only accept the long-term contract price increase of 71% from the three major mines. They had to swallow this bitter pill, and the price of iron ore per ton soared to more than 100 US dollars.
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The situation is different now. What broke the deadlock in negotiations was the latest news from FMG Resources, which was like throwing a boulder into a calm lake, causing waves.
According to estimates from the internationally renowned British Lancaster Institution of Engineers:
After more than a year of high-intensity construction by the China Construction Iron Army, 75% of the construction work on the 400-kilometer dedicated heavy-haul railway double line from the Pilbara region of Western Australia to Port Hedland and the internal railway network connecting seven major mining areas has been completed.
All projects are expected to be completed and put into use in the third fiscal quarter of 2006. The specific time point is around July 15, three to four months ahead of the expected construction period.
At the same time, China Harbor Engineering Company and China Metallurgical Corporation also reported frequent good news.
FMG's dedicated iron ore terminal in Port Hedland has completed 80% of the concrete pouring and the project progress has reached 77%. It is confirmed that it can be put into use before June 1, 2006, and the progress is faster than that of the railway.
The construction of seven major mines and the debugging of mining equipment, mineral processing plants and other facilities that MCC is responsible for have been mostly completed. Four mines C, D, E, and G have been put into preliminary production. It is expected that the equipment debugging will be completed and the equipment will be put into operation in two months.
Full production period.
The three mines A1, B, and F will also be put into trial production before June 2006, continuously supplying iron ore to China.
This shocking news was released on November 1, 2005, once again disrupting the joint price-raising strategy of the three major mines.
This means
FMG Resources will launch its first giant ship loaded with iron ore in the third quarter of 2006, possibly between July and August.
It also means that in 2006, the world's iron ore supply will increase by 60 million tons, which is enough to impact the high iron ore prices and alleviate the almost endless appetite of Chinese steel companies.
The potential threat of only hearing the sound of the stairs but no one coming down has now become a reality.
The original plan to put into production in the fourth quarter of 2006 has been brought forward. This is really bad news for the three major mines.
According to FMG Resources' huge size of 150 million tons, it will definitely become the fourth largest player after the three major mines. It has an influence that cannot be underestimated in the field of iron ore production, and no one can ignore it.
these two years
Vale quickly increased production from 140 million tons to 270 million tons, Billiton increased production from 124 million tons to 220 million tons, and BHP Billiton increased production from 95 million tons to 176 million tons, showing that the three major mines have strong potential to increase production.
This shows that the international market does not lack iron ore resources at all, nor does it lack the ability to grow rapidly.
Maintaining the current situation is in the interest of the three parties. The three companies have joined forces and tacitly maintained the situation where the supply of iron ore exceeds demand, and they have made a lot of money.
Unfortunately, catfish were put into the fish pond, causing the spring water in the river to no longer remain calm.
Just two days later, the 2006 "Long-term Agreement" benchmark price was released. The three major mines made substantial concessions and showed the greatest sincerity. The 35% price increase plan was almost half of the previous 71% plan, and finally won
reached the consensus of all negotiating parties.
When the news reached Hong Kong, Wang Yaocheng could not suppress his overwhelming sense of accomplishment and took his friends Qi Yafei, Shi Xueyi and others to get drunk in the hotel.
This was the first time since Wang Yaocheng was reborn that he got drunk, and at the same time he knocked over a table of drinking buddies, which was an unprecedented event.