"Mr. Yu, I think our cooperation can go further!" Feng Xiaochen said after drinking.
"We are already a strategic partnership now! How can we take it one step further? Are our two companies merging into one?" Yu Qingyang asked with a playful smile.
"Mr. Yu, you know, I'm talking about investing in Huaihai Investment!" Feng Xiaochen looked at Yu Qingyang firmly and said.
"Mr. Feng, Huaihai Investment is a state-owned enterprise and cannot transfer shares, because once the state-owned shares lose control, the nature of the company will change!
I have no right to transfer state-owned shares. I can only transfer my shares if I agree to HSBC's investment.
So, there is a problem now! A company with a market value of more than 200 billion, 10% of the shares, is 20 billion, what do I need so much money for?
I'm young, give me 20 billion, and I don't know how to spend it. What if I lose the motivation to fight because of these 20 billion?" Yu Qingyang played with the wine glass and laughed.
"Mr. Yu, the market value of Huaihai Investment is definitely less than 200 billion. According to our strict evaluation, the market value we can give is only 60 billion!
As for worrying about losing the motivation to work hard after getting money, Mr. Yu is just kidding!
I believe that with Mr. Yu’s ability, money has never been your goal!
Money can only be your tool, the tool to achieve your ideals."
"Haha! Mr. Feng, you deserve the award!
First of all, I don’t agree with your HSBC valuation!
Let's put it this way, the cement plant in Aljigeria will be put into operation in three months, with an annual output of 10 million tons, and Yuanmu International Trading Company is willing to underwrite all production capacity!
Based on the market price in Afghanistan, it is 1,200 yuan per ton! Even if the ex-factory price is calculated as 800 yuan! The annual output value is also 8 billion yuan! The profit is 6 billion yuan!
According to the rules for estimating a company's market value, generally a company's market value is about twenty times its annual output value! Companies with good expected returns will multiply by a higher multiple!
The annual output value of Huaihai Company's cement factory, cement product factory, and internal combustion brick factory definitely exceeds 10 billion.
Calculated based on a profit margin of twenty times, two hundred billion is very reasonable!
Secondly, I really don't want to transfer the shares.
Maybe we can negotiate another way to work together!”
"In what way?"
Feng Xiaochen had already given up hope, but he didn't expect that in a sudden turn of events, Yu Qingyang would take the initiative to propose another solution, and asked quickly.
"The first solution is for me to inject Huaihai Investment into Huayu Investment Company!
As for HSBC, if it wants to maintain its existing shares, it needs to inject corresponding funds!
Of course, the premise is that the market value of Huaihai Investment Company is 200 billion, and this cannot be changed!"
"What about other options?"
“The second option is that HSBC promises to provide Huayu Investment with low-interest loans of no less than 100 billion in the next five years!
This requires an exit commitment letter from HSBC.
Huayu Investment will invest in building construction materials factories overseas, including but not limited to cement plants!
You know, Africa is not just Ajigeria!
In South Africa, East Africa, West Africa, North Africa, and Southeast Asia, building materials are scarce products in many countries!”
"We all know that backward countries such as Africa and South Asia are short of building materials. Not only are they short of building materials, they are short of everything!
However, in some countries, due to national systems, it is not so easy to invest in building materials factories in their countries.
There are constant wars in some areas, and investment risks are too high! We do not support investing in some high-risk countries!
Just like the cement plant invested by Huaihai in Algeria, based on normal estimates, it is valued at 200 billion, which is indeed no problem!
However, after our company’s assessment, the probability of war in Afghanistan is very high! Therefore, it has seriously affected the valuation of Huaihai Company!”
"Yes, many places in Africa are in constant war, the environment is harsh, and investment risks are high! But it is precisely because of this that there are such high profits!
Some risks can be reduced through some measures! For example, if a cement factory makes billions in profits a year, it can hire a powerful security company to provide us with security services.
We can even become "military contractors" ourselves! With one percent of the profit a year, we can support a security team with incredible combat effectiveness!"
"Marx once said in Capital: Once capitalists have appropriate profits, capital will become bold. If there are 10% profits, it is guaranteed to be used everywhere; if there are 20% profits, it will be active.
Get up; with 50% profit, it will take desperate risks; for 100% profit, it will dare to trample all human laws; with 300% profit, it will dare to commit any crime and even take risks.
The danger of hanging one's head.
This doesn’t just apply to capitalists!
It works for anyone!
Including the security team you hire!
In the past, the security team mainly turned against guests and devoured the owner's property!
So hiring a security team is not a perfect solution!”
"Haha! Mr. Feng, in my opinion, what you are talking about does not exist!
Maybe, as you said, there will be such problems in recruiting mercenaries as security guards internationally!
But what if I am recruiting veterans from within the country?
The Chinese Army is the most powerful Army in the world!
If the security team is composed of Chinese veterans and their families are all in China, then these problems will not exist!
And I happen to have such a relationship that I can recruit veterans who have participated in combat directly from the army! I can directly select veterans with excellent character!" Yu Qingyang laughed.
Yu Qingyang and Feng Xiaochen were going back and forth. It seemed that they were discussing the establishment of a security team, but in fact they were talking about the estimation of the market value of Huaihai Investment.
Feng Xiaochen said that investing in cement plants in Africa is too risky due to war, so the valuation will not be calculated at twenty times.
Yu Qingyang said that I have a security team that can avoid risks caused by war and other factors.
Feng Xiaochen went on to say that international mercenaries and military contractors are unreliable. It is possible that their assets and assets will be swallowed up by mercenaries and military contractors, resulting in loss of money and loss of life.
Yu Qingyang said that his security team all uses domestically recruited veterans who have been on the battlefield, and he has no such concerns.
The brief confrontation between the two ended with Yu Qingyang winning again.
"Mr. Yu, you mentioned the problem, please forgive me for not being able to make the decision. This has exceeded the authorization given to me by the board of directors!"
"It's okay! I'm not in a hurry! We can talk slowly!
By the way, you can remind the board members of HSBC that next time we meet, the valuation of Huaihai Investment will not be 20 million!
Because my lovely beautiful manager, Miss Angela, just helped me choose a mine! A mine covering an area of more than 500 square kilometers!
It’s full of beautiful marble!
Negotiations are ongoing now! So the market value will definitely change next time we meet!
Also, after three months’ time, after the cement plant in Algeria is put into operation, Angela will go to Nigeria to discuss investment in a new cement plant! It is expected that the production capacity of the Nigerian cement plant will be twice that of Algeria!”
"If Mr. Yu can perfectly solve the security risks, I believe the board of directors will be very willing to spend more money to invest in your company!" Feng Xiaochen said with a smile.
If you want financial companies to come up with money, you first have to make people believe that you can actually make money.
Everyone knows that you can make money by opening a factory in Africa.
But why are supplies still in short supply in Africa?
It’s very simple. Not just anyone can open a factory in Africa!
Not all countries are suitable for opening factories!
Yu Qingyang did not force HSBC to buy shares, and it was not even Mu En's request to buy shares. He would not even start negotiations with HSBC about buying shares.
Yu Qingyang owes Mu En a favor. If it weren't for Mu En, he wouldn't be where he is today. Another thing, HSBC's investment in the company can indeed increase the company's foundation.
But Yu Qingyang really doesn’t want to take a bunch of RMB home.
Selling part of the shares and returning home with tens of billions of RMB would not be a blessing, but could easily lead to disaster.
The negotiation has come to an end. Due to Feng Xiaochen's authority issues, it cannot continue.
Next, everyone's conversation turned to romance, focusing on tasting delicious food and wine.
Occasionally exchange information about the development trends of the world economic situation.