Li Jianhui originally planned to go to Johor Bahru, but a call from Xiangjiang forced him to rush back to Xiangjiang.
Three investment delegations from Guangdong Province, Sichuan and Sichuan Province, and Shanghai Municipality arrived in Xiangjiang at the same time. Originally, Li Jianhui thought that some projects would not be able to advance at all in recent years.
As a result, he now realizes that he underestimated the courage of the superiors. Just after the New Year, several joint venture projects for the Yangcheng to Pengcheng, Chengdu-Chongqing-Guo expressways, Yuzhou Jiangbei Airport, Pengcheng Airport, and Shanghai Port were successively approved.
In addition, more than ten coastal cities have been opened to the outside world, including Yangcheng, Yongcheng, Shanghai, Tianjin, Qindao, etc.
To Li Jianhui's extreme surprise, Yuzhou, which is located inland, has also become one of this group. His butterfly effect has been instigated quite a bit.
This time the three parties came, firstly to connect several joint venture projects with Xinhui Infrastructure Investment Company, and secondly to attract investment.
After receiving the policy, they naturally hope that more companies in Xiangjiang will invest and build factories in the cities where they are located or under their jurisdiction.
Yuzhou, in particular, came with great confidence this time. Wang Dezhong, a member of the Standing Committee of the Provincial Party Committee and leader of the Yuzhou Municipal Party Committee, personally led many senior officials from Yuzhou to come.
Li Jianhui, who had just returned to Xiangjiang, had no time to go home and rest, so he immediately rushed to Xinjian Building and held a high-level meeting of Xinjian Department in Xiangjiang.
Zhou Bingqian, who was sitting in the conference room, was both happy and a little worried. She never expected that the North would approve all so many projects.
With two expressways and two airports, even if it is a joint venture, and with the relatively low prices in the north, Xinhui Infrastructure Investment Company will have to invest at least 30 billion Hong Kong dollars.
An airport is expected to invest 1.5 billion Hong Kong dollars. Since the Xinjian Department wants to build a joint venture, it is natural that it will not be petty. If it wants to build it, it will go to a big one.
Thinking about the past life, when Yuzhou first built this airport, the planned investment was only 300 million yuan, and the supporting roads were less than 100 million yuan.
This time, with the Xinjian joint venture, it will naturally not be so tight anymore. You must know that the airport plan that has started construction in Guocheng is quite high-end.
By the way, the U.S. dollar was depreciating last year, and the RMB was also depreciating. According to the official exchange rate, as of now, the exchange rate between the U.S. dollar and the RMB is 1:2.321, while the exchange rate between the U.S. dollar and the Hong Kong dollar is 1:4.586, and the exchange rate between the RMB and the Hong Kong dollar is 1:1.976.
Guocheng Airport has donations from the Donghua Association and a low-interest loan of 1 billion Hong Kong dollars. Even if it does not increase by a penny, this amount of funds far exceeds the scale of the previous Yuzhou Jiangbei Airport construction, and you must know that this is still calculated according to the official exchange rate.
As for the expressway, the Yangcheng to Pengcheng Expressway has a relatively flat road with a length of 125 kilometers and the relatively low domestic prices during this period. The cost per kilometer is about HK$70 million, and the total cost is estimated to be HK$8.75 billion.
Xinhui Infrastructure Investment Company holds 49% of the shares and requires an investment of HK$4.2875 billion.
The length of the Chengdu-Suihe-Chongqing expressway is 330 kilometers, the section from Suizhou to Guo is 75 kilometers, and the section from Guocheng to Hezhou is 110 kilometers. The total length is about 515 kilometers.
Due to the terrain, the construction cost in Sichuan and Sichuan Province is undoubtedly much higher. The cost per kilometer is about 100 million Hong Kong dollars. The total planned cost is 51.5 billion Hong Kong dollars. Xinhui Infrastructure Investment Company will contribute 49% of the capital, which requires an investment of 25.235 billion Hong Kong dollars.
Zhou Bingqian thought about it carefully and felt that things were a bit troublesome. Seeing that the year-end meeting was about to be held, major companies' expansion plans for the new year were also handed over to Li Jianhui one after another.
Now Xinhui Infrastructure Investment Company has invested in so many projects at one time, and they are all industries with a long return period, which will inevitably cause dissatisfaction among many senior executives.
Fortunately, none of these projects require a one-time investment. For the airport, it requires at least two years of continuous investment, for the expressway, it takes at least three years, and for the expressway in Sichuan and Sichuan Province, it takes at least four years, or even five years.
In this case, the pressure on Xinjian Department is not as great as imagined, and it will not affect the expansion of Xinjian Department's major enterprises.
It's a pity that Zhou Bingqian had better thoughts. When the meeting officially started, senior executives including Huihong Group President Toru Iwatani, Lane Crawford President Li Qungang, Donghua Communications President Xie Minxiong, Wheelock Land President Li Qihai and others spoke out one after another.
He said that the most important thing for Xinjian Department at present is to expand its industries, rather than wasting limited funds on projects with no visible return rate.
Fortunately, Zhou Bingqian is not without helpers. Liu Xiaoyan, who is responsible for Xinjian Department’s affairs in Greater China, said: “Although the return period of these projects is relatively long, it does not mean that the return rate is low.
In particular, the two major airports and the Yangcheng-Pengcheng Expressway have great potential. Even if it is the expressway in Sichuan and Sichuan Province, I believe there will be no loss.
And we not only consider the profit of this project, but also consider the impact that investing in these projects will have on our Xinjian Department and even the Donghua Association.
As Ms. Zhou said, these projects have construction cycles, and we don’t need to spend so much cash at once. Allocating it quarterly will not have a big impact on our Xinjian Department.”
Subsequently, Wei Li, Chen Huiya, and Shi Shaoming made speeches one after another, all supporting investment in these projects.
In fact, these senior officials know very well that these projects have been agreed upon by Li Jianhui, so there is no possibility of vetoing them. Today's meeting is just to take a precaution against Xinhui Infrastructure Investment Company, which will focus on funding in the future, so that the leaders of these companies will feel confident.
A preparation.
As for those who oppose it, the main reason is that Xinhui Infrastructure Investment Company needs funds either to divert them from these companies, or to steal the cake of these companies.
For example, Huihong Group is afraid that it will pay a large amount of dividends after the annual report is released, so that the funds can legitimately go to Li Jianhui's hands.
The same is true for Lane Crawford. Last year, it did not engage in a major price war in the US market, and its profits were quite gratifying. Its total market capitalization is also catching up with HSBC. It cannot escape the fate of large dividends this time.
As for Donghua Communications and Wheelock Land, due to rapid expansion, although their market value has exceeded 100 billion Hong Kong dollars, they are still short of money. They both hope to raise funds again this year and issue additional shares, so that Pang Group will have more funds to expand.
Once a large amount of funds are used by Xinhui Infrastructure Investment Company, it will be impossible for them to raise funds for additional issuances. Li Jianhui needs to raise funds for additional issuances and use funds to maintain his own shares from being reduced. This requires Li Jianhui to have funds in hand to make it possible for these groups to
Financing.
After everyone spoke, Li Jianhui said: "The investment in these projects has been decided. Miss Huiya, tomorrow you and many senior executives of Huangpu Holding Group will discuss the port joint venture with the Shanghai investment delegation.
Xiaoyan, Bingqian, you and many senior executives of Yuntao Holdings will meet with the Yuzhou investment delegation tomorrow. Taoda Group’s orange juice drinks, Taoda herbal tea and Taoda instant noodles can establish production bases in Yuzhou, and at the same time connect with Yuzhou Jiangbei
Airport and Chengdu-Chongqing-Guo Expressway.”
As for Guangdong Province, Li Jianhui personally negotiated with them to implement the Yangcheng-Pengcheng Expressway and Pengcheng Airport projects.
At the meeting, Li Jianhui also asked Huihong Group, Lane Crawford, Xinjian Bank, Watsons, Hutchison Real Estate, K. Wah Bank, Hongyu Clothing, Jingyi Electrical Appliances, Jinhong Jewelry and other profitable companies to make dividend plans.
Even if Toru Iwatani was extremely unwilling in his heart, he could only obey the order. He knew very well that the sunset of the Huihong Group was probably already over.
Due to weak profit growth, the total market value of both HSBC and Lane Crawford has been approaching. When this annual report is released, it will be the day of the decline of Huihong Group.
He has proposed for several consecutive years that Huihong Group expand its own industry to obtain new profit growth points, but unfortunately he has been rejected by Li Jianhui time and time again, so that Huihong Group ended up in this situation.
Looking at other companies in Xinjian, benefited by the appreciation of the Hong Kong dollar and the depreciation of the US dollar in the Hong Kong stock market, Lane Crawford, Xinjian Bank, Watsons, Hutchison Land, Wheelock Land, Donghua Communications, Wheelock Holdings, and Whampoa Holdings
, Phoenix, Huaxin, Huahong, Hongyu Clothing, etc. have seen their market values rise sharply.
This year, let alone Huihong Group maintaining its position as the number one listed company in Xiangjiang, I am afraid that it may not be able to maintain its top ten position within the Xinjian Group.