Shen Ji is currently mainly focused on Dongsheng's internal affairs and has no energy to pay attention to his personal investments.
The more than 22 million U.S. dollars he received from the Cornero Energy equity transaction, except for the total investment of less than 2 million U.S. dollars in Tianyue Trading and Tianyue Industry, the other funds were only used to do some unnecessary work. Bond investing involves energy.
Whether it is international commodity trading or the rapidly developing domestic economic situation, the yield on bond investment is obviously still too low.
When Shen Ji came to Kanem this time, he actually wanted to meet with Cao Mo and discuss what investment channels he could participate in without causing a conflict of interest with his current position.
If he wanted to continue in West Africa, he didn't know who he could trust except Cao Mo.
In addition to making a lot of money from the investment in Cornero Energy, Shen Ji also made a fortune in Tianyue Trading, which he invested in. It can also be said that it has achieved unprecedented success.
Including Huachen motorcycles, pickup trucks and parts, Tianyue Trading's sales in West Africa reached US$30 million in November.
A monthly net profit of three million U.S. dollars is not too scary compared to sales, but the problem is that Tianyue Trading’s initial investment net assets were only twelve million U.S. dollars, and its net assets exploded in just seven months. Doubling the number is so encouraging!
As Tianyue Industrial's monthly assembly capacity in Conero Lake Industrial Park has successfully exceeded 25,000 units, several domestic motorcycle manufacturers will lower their prices in the future and increase their marketing efforts in West Africa. Tianyue can also ensure its invincibility in the West African market in the next two to three years and maintain its current profit scale.
For Tianyue Trading, it will also face a directional choice next.
With great success in opening up the West African market, Tianyue has also gained considerable say in the sales system of Huachen Industrial.
In the first three months, Tianyue paid in full or issued a letter of credit in full before Huachen Industrial would deliver the goods. However, by November, Tianyue no longer needed to pay in advance or issue a letter of credit to Huachen Industrial. You only need to settle the account on a monthly basis.
Due to the hot sales of Huachen motorcycles in the West African market, Tianyue in turn not only strictly requires distributors to make cash transactions, but also requires distributors to pay a certain deposit to ensure its status.
Not only does Tianyue Trading no longer need to occupy a large amount of funds for inventory, it even charges an additional deposit of nearly 20 million US dollars.
Including undistributed profits, Tianyue Trading has accumulated more than US$30 million in cash at this time.
If Xie Sipeng really wanted to finance and stabilize his iron ore trade in Akwa, Cao Mo would be happy to lend him 10 million US dollars from Tianyue so that Tianyue Trading could get an additional financial income, but unfortunately for Xie Sipeng No intention of biting the hook.
Tianyue Trading now not only has 30 million US dollars in cash, but will also be able to book new profits of about 3 million US dollars every month in the future.
As of November, Tianyue has captured 30% of the relevant fields in the West African market.
If we focus on the trade of motorcycles, pickup trucks and parts in the West African market, the market space that can be explored in the future will be limited, and it will be enough to maintain the current level of marketing investment.
In other words, not only the profits generated in the future can be used for dividends, but also 20 million US dollars can be used now so that investors can recover their investments in advance, leaving Tianyue with 10 million US dollars in cash for working capital. enough.
However, in this way, Tianyue's development scale is limited to this.
However, Tianyue Trading’s current main business is to rely on Huachen Industrial to develop the West African market for Huachen Industrial’s motorcycles, pickup trucks and parts products. Therefore, it is difficult to bypass Huachen Industrial and truly enter motorcycle production. field.
Tianyue Industrial's factory in the Conero Lake Industrial Park only does simple assembly of Huachen motorcycles. The entire factory seems to cover a lot of space, but the investment is extremely limited, and it cannot be considered to be truly involved in the field of complete vehicle production.
Even if the domestic motorcycle supporting industry is extremely complete, providing certain conveniences for them to bypass Huachen Industry and truly enter the production of complete vehicles, the technological advantages accumulated by Europe and the United States in the field of high-end motorcycles are huge, and the accumulation of several major domestic brand manufacturers Deeply, Tianyue Trading relies on its capital accumulation of 30 to 50 million US dollars, and it is extremely difficult to break through.
This was also an issue Shen Ji rushed to Kanem to discuss with Cao Mo.
Of course, it is impossible to discuss these issues in front of Xie Sipeng and so many others.
Xie Sipeng was tired after riding for a day, and agreed to meet again tomorrow, so he took Zhang Min and his bodyguards to leave first; Brahm, Ensange, Zhao Xinyu, Xu Bin, Zhao Ling, Feng Rui, Li Qilu, Wang Jianzhong and others also left one after another. Cao Mo, Yang Deshan and Abacha stayed at the Lana Del Rey Hotel with Shen Ji instead of returning to Longta at night, and then went to the executive lounge in the main building of the hotel to drink and chat.
There was no one else around at this time. When talking about Tianyue's subsequent development, Cao Mo slapped his forehead and complained:
“I’m worried if I don’t have money, I’m also worried if I don’t have enough money…”
"How much cash do you have in hand right now that you haven't spent yet?" Shen Ji asked.
Since this year, Cao Mo has acquired Xinxuan Foods in China, but has made a lot of new investments in Kanem. Shen Ji also has a general understanding of the situation, leading the establishment of Tianyue Trading and Tianyue Industry, and spent a large amount of money in September. The funds were used for the expansion of the Felician family gold mining company. The Ibogu mining area and the Oguta mining area were combined, with a total area of more than 1,400 square kilometers. Among so many gold mining groups in West Africa, it can no longer be considered a small one. role.
In addition, it also made additional investments in industrial parks, security companies, Sanchez Leasing Company and Blue Star Leasing Company. After September, it purchased cocoa plantations in Benin, Akwa and other places.
Spending money is flowing, but Cao Mo received a large amount of funds from the Cornero Energy equity transaction in late May, and the cement factory owned by Felician and Sika Family Building Materials Company is a cash cow, so Cao Mo now has Shen Ji didn't know exactly how much cash he still had.
"Why, Lao Xie's words have tempted you?" Cao Mo asked with a smile.
“The domestic economy is very fast, and the economic development of the BRIC countries such as Brazil, Russia, India, and South Africa is also quite strong. In the past two years, the prices of bulk commodities such as crude oil and iron ore have been driven up quite sharply, and this trend should continue to rise. A few years..." Shen Ji said.
"You studied international finance and have worked in Dongsheng's senior management for so many years. Your vision is higher and broader than ours. I trust your judgment on the development of the international economic situation," Cao Mo scratched the back of his head and said, "But , To be honest, I have considered what Lao Xie said before, but for bulk commodity trading like iron ore, I can still spend 40 to 50 million U.S. dollars, so it doesn’t seem to be a big splash. !”
"You only have 40 to 50 million US dollars in cash in hand right now? I thought you needed more." Shen Ji asked in surprise.
"Although Cornero Cement Plant has not yet directly launched the third phase project, the upstream and downstream of the production chain have been investing in improvements. These investments are actually not much lower than the third phase project itself, and one thousand has been spent one after another. Ten thousand US dollars; for the gold mining company, the mining cost of the two new operating areas is very high, and there is currently no big profit. However, the investment in exploration and technology cannot be saved. Last month, it acquired a The Mineral Exploration and Technical Services Company spent millions of dollars more; plus the investment from Cornero Engineering and Construction Company, the money really went out like water..." Cao Mo said in front of Shen Ji, He also did not hide some of his thoughts and actions on the industrial layout in West Africa. He sat in the corner of the executive lounge, drank a glass of sparkling wine that was cold in his mouth, and shared many details that were not convenient to communicate on the phone and via email. Let Shen Ji know.
The controlling stake of Cornero Energy has been transferred to Dongsheng. The next goal is to complete the performance bet first. Cao Mo is currently putting more resources and energy into cement and gold mining companies.
The gold mining company is mainly strengthening and improving the technical level of gold exploration, mining, refining and tailings treatment in the two mining areas, striving to reduce the cost of deep rock gold mining and improving the comprehensive mining rate; in addition, it is strengthening the reserves of the two mining areas. exploration.
In addition to continuing to improve the technical management level of the production process, cement companies are mainly involved in the mining and transportation of lime and other minerals upstream, reducing the cost of upstream raw materials and ensuring the supply of raw materials; downstream, in key cities such as Draculamo and Catero, Directly invest in the construction of cement transfer stations and commercial concrete stations, purchase special cement transport vehicles and ships, and deeply penetrate into the sales chain.
The third phase of the Cornero Cement Plant is still under preparation and is not considered to be launched in a hurry for the time being. However, since the core market coverage of the Cornero Cement Plant is concentrated in Draculamo, Cao Mo directly carried out the project in Draculamo. Deep penetration of the entire sales chain provides convenient conditions.
Although Kanem wants to explore the potential of an industry at a deeper level, it is restricted by many objective conditions, but if you really put your heart into it, the rewards will be considerable.
The price of finished cement in Draculamo was still declining slowly in the second half of the year, but the profit level of the Cornero cement plant, instead of falling further in the second half of the year, began to rise steadily...