Sun Dahai asked Qiao Hongwei to give priority to meeting the needs of the Supervision Department and help Paul set up a shelf as soon as possible so that the Supervision Department can operate normally.
Paul joined the company in the second half of last year. In a few months, he mainly recruited personnel, formulated various supervision systems, became familiar with the situation of each company, and trained supervisors and inspectors.
Starting this year, the Supervision Department will officially come into play. Sun Dahai has made an agreement with Battelle to let him train at the winery until the end of this year, and then report to the Supervision Department next year.
As for the future, we will decide whether to let Batelliu set up the future Supervision Department or let him work in the Supervision Department established by the Food and Heaven Department. It will depend on the situation at that time.
"By the way, how much is the total investment for this project?" Sun Dahai, who let his thoughts go wild, finally focused on what was in front of him.
“The purchase price of this land is one million US dollars, and with various taxes and fees, it’s nearly 10 million US dollars.
The total project budget is US$150 million, but the situation in the United States and China is similar, and the final estimate will be about ten points higher than the budget.
In addition, the design fee of the architectural design studio is estimated at US$10.15 million. In addition, the company also needs to hire a supervision company to supervise the project, and the cost is about US$5.
Overall, the entire project will cost approximately US$200 million to complete."
Sun Dahai thought for a while and said: "I remember that the total cost of our future building in Xiangjiang is US$250 million. Ten acres of land costs US$100 million, and the construction cost of a 33-story building plus a podium is only US$250 million.
One hundred and fifty million US dollars. Compared with the United States, land is too expensive and construction costs are not high."
Zhu Lihua said: "Hong Kong has a small amount of land but a large number of people, especially near Central. Land prices are much higher than most places in the United States."
The land purchased by the company cost US$100 million, which is HK$700 million. What we bought was not expensive.
The land that the Hong Kong government sold to Hua Xia Bank's Xiangjiang Branch is only one kilometer away from us. The location is not as good as ours, and the area is several hundred square meters smaller than ours. However, the price is HK$1.1 billion, which is higher than ours.
The ground is a full 40% higher.
The United States is different from Hong Kong. The land stock there is extremely abundant. Except for a few areas, it is difficult to sell land at a high price.
In addition, although we don’t spend much to buy land, when we build a house, in addition to normal commercial taxes, we have to pay real estate tax and house insurance every year. After a hundred or more years, it is actually not cheap.
As for labor costs, the United States is much higher than those here in Xiangjiang. Moreover, they have a lot to do, and they can't work overtime or work hard. If they are asked to build this project, it will not be completed within two years.
If it were replaced by Xiangjiang's construction team, it would only take about a year and a half to complete the work, and it is guaranteed to be fast and good, and the cost will be much lower." Zhu Lihua said very proudly.
But Sun Dahai knows that the most powerful ones are the construction workers in Mainland China.
In the past, there was the famous Shenzhen Speed, but later on, he turned into an "infrastructure maniac" and started building the earth all over the world. I want to ask you, are you afraid?
"You make a plan for the use of funds for this project and give it to Qiao Hongwei and Zhou Haibing, and let the company prepare the funds." Sun Dahai explained.
"No need, didn't you ask the company to give me a funding limit of 50 million US dollars last year? With this money, it is enough."
Sun Dahai was stunned for a moment and asked: "Do you want to apply for a loan? The company has money in its account, which is enough to pay for this project."
The company is not short of money at all now.
The company currently has two large loans. One is a three-year loan of US$750 million obtained through the mortgage of Japanese stocks. The other is a loan of US$120 million for future building projects.
This low-interest project loan is just a joint loan that the company applied for from three banks: Standard Chartered Bank, HSBC Bank and Hua Xia Bank Xiangjiang Branch in order to better integrate into the financial market in Xiangjiang.
In other words, this loan is about spending some money to build a relationship. These three banks also knew this and tacitly agreed to provide future low-interest loans and improve the company's credit rating.
There is no way around this.
Commercial banks are not just money-giving boys. They are used to being red-topped and white-handed. What they are best at is giving money to companies that don’t need money, and collecting debts from companies that urgently need money to avoid risks and achieve profits.
The company's financial status is very good, and it has sufficient reserves to prevent unexpected events.
After the Plaza Accord last year, it took only three months for the U.S. dollar to depreciate sharply by 20 yen against the yen, from one U.S. dollar to 250 yen, down to 200 yen.
Sun Dahai lurked in advance on long Japanese yen contracts in major financial markets and paid a total of US$700 million in margins, which meant he purchased foreign exchange contracts with a total value of US$7 billion.
Under the normal change of months and keeping the total contract amount unchanged, a profit of US$1.4 billion has been achieved.
Of this money, Sun Dahai left US$100 million in the trading team's account to replenish the margin, and also gave Qiao Wanting a free investment quota of US$100 million for them to practice.
The remaining US$1.2 billion has been returned to the account for setting up the future holding company, and some sound bonds and other financial instruments have been purchased to diversify risks.
The downward trend of the U.S. dollar against the Japanese yen slowed down, but Sun Dahai knew where it was now! In the next two years, the downward trend did not change. It was not until one U.S. dollar was exchanged for 140 yen that a small rebound began.
Eventually, the yen exchange rate will stabilize around 120, meeting the requirements of the U.S. government.
In other words, Sun Dahai's US$7 billion contract will continue to reap more than US$2 billion in net profits in the future. If the company develops normally, there will be no funding gap within a few years.
Zhu Lihua is just the project manager of an investment company and has been in the United States in the past few months. Sun Dahai is worried that she does not know the company's financial situation and may make wrong judgments, so now he takes the initiative to remind her.
Who knew that Zhu Lihua had other plans. After hearing what Sun Dahai said, she told him her plan in detail.
It turned out that she had already made plans. She only needed 50 million US dollars to pay the land purchase fee and related taxes first, and the remaining money would be used to pay for the first phase of the project after the contractor was selected through bidding.
When construction begins and the project is truly activated, she will simultaneously carry out investment promotion work for the Blue Ocean Commercial Building shops.
Zhu Lihua will bear part of the subsequent project costs with the store deposit she received, and for the rest, she will apply for low-interest loans from many banks and invite these banks to settle in.
Understand, Sun Dahai knew in her mind that she was going to use fifty million US dollars to revitalize a US$200 million project.
Zhu Lihua is indeed an outstanding talent trained by the Huo family in Xiangjiang. This routine of running real estate projects is so familiar that it is ingrained in her bones.
Since she was confident, Sun Dahai delegated power to her and let her handle it on her own. However, Sun Dahai still asked Zhou Haibing to give her an extra 20 million US dollars so that she would not have to walk a tightrope and take too many risks. 11