What Cao Mo and Ding Zhaoqiang have negotiated is the framework for equity transactions between the two parties. However, specific details including performance commitments, application and payment methods need to be further negotiated.
It was impossible for Cao Mo to push Shen Ji to take responsibility for all these things; it was not that he could not trust Shen Ji, but that it would make him appear too weak in front of Ding Zhaoqiang.
This also shows that he needs to establish a certain industrial foundation in China.
Fortunately, when I returned to China last time, in addition to registering the shell company of Cornero Trading, I also injected capital into Baocheng Accounting Firm in exchange for 20% of the equity, and signed a business entrustment agreement with Chen Feng.
After Cao Mo sent Song Yuqing back to the hospital last night, he went home and sorted out Cornero Energy's materials. He got up early the next day and asked Chen Feng to meet him at a breakfast shop near his home on Xikang Road.
"Even for Dongsheng's equity investment funds, it is troublesome to apply for 40 to 50 million US dollars in foreign exchange for overseas equity acquisitions. We may need to register a company in China and place the corresponding part of the equity into this company. , and then directly use RMB to complete the transaction and reduce the overseas transaction limit,”
Cao Mo drank spicy soup and fried dumplings, and told Chen Feng some information about Cornero Energy.
"Of course, we haven't discussed the specific transaction details with Hexi Fund yet. You may be needed to assist me then. I'm not very familiar with the relevant domestic financial, income tax and other details. Without your help, Everything is left to Hexi Fund to draft the agreement, who knows how many traps they will bury in it..."
Chen Feng came over after breakfast, but still ordered a bowl of spicy soup, feeling that it was necessary to calm down his irritated nerves.
The cocoa butter trade has initially begun, with cumulative sales of RMB 12 million in the first three months. After deducting sales expenses, input value-added tax, tariffs, corporate income tax and other costs, Cornero Trading currently retains RMB 12 million in sales. A profit of 800,000 yuan and a payment of more than 9 million yuan were retained in the account and were not remitted to Kanem.
Chen Feng didn't know much about Cao Mo's situation in Kanem, but from the profits retained from the Cornero trade and the payment for goods, he could imagine that Cao Mo was doing quite well in Kanem.
Cao Mo is in his early twenties. He was able to buy an eight-million-dollar mansion in Xinhai. In the first half of this year, he was able to transfer tens of millions of profits to the country. No matter from which perspective, he is considered quite good and is the envy of countless people his age. It’s too much.
However, Cao Mo now told him that he wanted to transfer part of his equity in Kanem Company, and the total transaction price exceeded 600 million yuan. How could he accept this reality calmly without taking a breath?
"Have you calmed down?" Cao Mo saw Chen Feng choking and coughing after drinking several spicy soups, and asked with a smile, "The equity in this transaction is more complicated. I only have about 320 million. It's not as scary as you think, the rest is held on behalf of others..."
"You might as well not explain." Chen Feng said with a hint of resentment in his tone.
"I want to acquire a cocoa butter food processing factory in Xinhai or nearby. Is there any suitable acquisition target?"
Although Chen Feng is engaged in cocoa butter trade across borders and is very capable, he is not proficient in cocoa butter processing.
Now he doesn't have any foundation in China. If he wants to build a brand new food processing factory, he first needs to find qualified and reliable factory managers, and then find an engineering contractor to sign contracts for factory construction and equipment procurement. During the construction of the factory As well as equipment installation and commissioning, various procedures, and the process of permit application and approval, hundreds of employees must be recruited for training.
After this series is completed, it will take two years to get on the right track, which is considered fast.
Cao Mo decided to give priority to mergers and acquisitions
.
After more than four months of exploration, Chen Feng finally understood this industry thoroughly.
The domestic cocoa powder processing industry can be traced back to the 1960s, but China is not a cocoa producing area. The entire industry was extremely small until the late 1990s. The cocoa powder and other raw materials needed for domestic food production mainly relied on imports.
In the mid-to-late 1990s, some domestic manufacturers began to use cocoa dregs husks, grind the shells into powder, add flavors, and sell them as cocoa powder for profit. The huge profits were unimaginably high, which also led to similar companies such as Xinhai and Jiangsu and Zhejiang.
Food processing factories are springing up like mushrooms after a rain.
Of course, everything comes at a price.
On the one hand, low-quality cocoa powder manufacturers are competing against each other, creating vicious competition, and prices are falling again and again. Those who use dregs and fruit husks as raw materials to produce low-quality cocoa powder no longer have much profit, and are often targeted by the food hygiene department.
danger.
On the other hand, the image of the entire industry in the past decade has been so negative that some domestic manufacturers want to transform and produce high-quality pure cocoa powder. However, in terms of brand image, they can no longer compete with foreign manufacturers and imported cocoa powder; not to mention that they do not have the advantage of origin.
.
Therefore, cocoa powder processing plants of all sizes in Xinhai and nearby areas, including Xinxuan Foods, still use pure cocoa powder mixed with different proportions of husks and peel powder to meet the different needs of downstream food manufacturers and maintain operations.
For many operators, this industry has become useless.
Xinxuan Food Company, which Cao Mo personally visited, might not be impossible to acquire as long as the price is right, but the problem is that after acquisition, how to break out and develop in the domestic industrial environment is a headache.
Cao Mo must make an acquisition, so Chen Feng suggested that he register an offshore company in a relatively low-comprehensive European and American region and invest in the acquisition in the name of the offshore company.
In addition to enjoying preferential policies for foreign investment, this can also distinguish it from those domestically funded food companies.
Regarding the equity acquisition of Cornero Energy, Chen Feng also suggested using overseas companies to complete the transaction as much as possible.
The Dongsheng family has a big business and great influence. It is not difficult to apply for a foreign exchange investment quota of 60 to 70 million US dollars. After completing the transaction using an overseas company, Cao Mo took the US dollars and returned to the country to invest. Not only could he enjoy various
With this preferential policy, it will be much more convenient to use funds for domestic and overseas investment projects.
It is still very difficult for ordinary domestic-funded enterprises that do not reach the level of influence of Dongsheng to apply for foreign exchange of 60 to 70 million US dollars.
Otherwise, how could there be such a large market for domestic illegal foreign exchange transactions?
"Is it possible for us to acquire Xinxuan Food?" Cao Mo asked.
He visited Xinxuan Food on the spot and found that apart from the inherent shortcomings of the domestic industry, Xinxuan Food's factory construction and internal operations are quite good.
"We should be able to talk about it," Chen Feng said. "Some time ago, they got a batch of cocoa husks from Kanem. They wanted to transport the husks into the country, but they were seized by the customs. Not only was this batch of junk goods lost, but the entire cocoa husks were also lost.
The matter has also been reported to the food supervision department. At present, the relevant departments in Qingshan District have increased their supervision of Xinxuan... I want to negotiate now. Not only can we negotiate, but the price will be relatively suitable."
Cao Mo thought about how he met Guo Donghu at the Lana Del Rey Beach Casino. He didn't expect his grandson to be so unlucky. He calculated that this should be the first batch of garbage they transported directly back to Xinhai from Kanem, so he hit the target directly.
Went up.
"Okay, you can contact Xinxuan's investors to see if they are willing to sell the factory." Cao Mo said.
"You and your friends are having breakfast here!"
Cao Mo turned around and saw Yu Jing and Chen Chang looking over at the door of the breakfast shop.
Yu Jing is still wearing pajamas
, with a sleepy look, as if she hadn’t slept enough on her only day off, so she was pulled out by Chen Chang to have breakfast; Chen Chang was wearing a short dress, with her slim legs exposed, and she put on light makeup.
The kind of girl who will dress herself up exquisitely even when she is at home.
"Well, my friend Chen Feng came over to talk to me about something and treat him to a bowl of spicy soup," Cao Mo said. "Do you also have spicy soup and pan-fried buns?" He waved to the shop owner and ordered two more.
A bowl of spicy soup and four taels of beef in pan-fried buns.
"It's enough for us to eat two taels of fried buns, otherwise we'll gain weight again," Yu Jing said.
"It's okay. As long as there's nothing wrong with the meat, there's nothing to worry about." Cao Mo joked.
"...If you say dirty words, be careful I tell Cheng Xi later!" Yu Jing threatened.
"Even if Cheng Xi is here, am I still afraid of you?" Cao Mo said stiffly.
After Cao Mo finished speaking, he saw Cheng Xi riding a bicycle to the door of the breakfast shop and walked in.
"Did you make an appointment today to cheat me out of my breakfast money?" Cao Mo asked, slapping his forehead.
"Why are you treating me? Why did you get up so early? I wanted to call you to wake you up after I came over." Cheng Xi sat next to Cao Mo and asked curiously.
"Let's have breakfast with a friend!" Cao Mo introduced Chen Feng to Cheng Xi.
Chen Feng saw that the matter was almost over, so he did not disturb Cao Mo while chatting with the three beautiful girls, and stood up to leave first.
Watching Chen Feng drive away in the Santana parked on the roadside, Chen Chang couldn't help but sigh to Cao Mo: "Your friends are a bit too big!"
Chen Chang and Yu Jing are pretty, graduated from prestigious schools, and work in large commercial enterprises. The people they usually come into contact with or try to pursue are mostly young talents. In 2006, the price of new cars has dropped to 70,000 to 80,000 yuan.
Santana is indeed a bit out of their depth.
Cao Mo smiled and said, "Youbu Santana, you can be considered a car owner, so he is better than me who doesn't have a car." He asked Cheng Xi curiously, "Where is your car? How did you get here by bike today?"
?”
"That petty woman, my credit card has been frozen and my car has been repossessed, so I can only ride a bicycle for a while!" Cheng Xi reached out to grab Cao Mo's ears. Seeing that Cao Mo was about to hide, he stared at her beautiful eyes and said,
"Let me give you a quick tug to calm me down."
"What's the point of pulling here? You were obviously touching him. He just said dirty words to me!" Yu Jing complained.
"I'm right. I invited Yu Jing to have breakfast. She was worried about gaining weight. I comforted her by saying that the weight on her body was in the right place. How is this obscene?" Cao Mo said with an innocent face.
"..." Cheng Xi looked at Yu Jing's bulging breasts even under her loose pajamas and chuckled, "Cao Mo is right, you are definitely not wrong. I don't know how many people are envious of you!"
Cao Mo was about to get up and walk over to help Cheng Xi, while Yu Jing went to bring spicy soup and fried dumplings when Xiao Jun's call came in.
"Are you up? I came to the company in the morning and mentioned you to the manager in charge of the African market in our marketing department. He has been to Draculamore twice before and heard about you. Do you have time to have a light meal together at noon?
Let’s talk about Kanem’s situation,” Xiao Jun said on the phone.
"Am I so famous?" Cao Mo said with a smile, "Okay, I'm with Cheng Xi, Yu Jing and the others. I'll find a place to eat in Tianzifang at noon..."
The acquisition agreement with Hexi Fund needs to be negotiated, and it is impossible for him not to participate in the merger and acquisition of the food company, and he cannot return to Kanem for the time being. He is also thinking about returning to the company this morning, forging a power of attorney, and then borrowing Chen Rong
He tricked his father into taking over the old house at No. 118 Tianzifang, but he would not refuse Xiao Jun's invitation casually...