industrial overlord

Chapter 655 Super tasteless
It is a cold joke to say that Mutong Iron Mine is super tasteless.The proven reserves of Mutong iron ore are 400 billion tons. In the past few years, the proven reserves of iron ore in China as a whole have not reached 400 billion tons.It was not until the first 10 years of the new century that due to the soaring domestic demand for iron ore, there was an upsurge in prospecting, which led to a rapid increase in China's proven iron ore reserves.By 2010, the national proven reserves of iron ore reached 600 billion tons, equivalent to 1.5 Mutong iron ore.

Huang Gang said that Mutong Iron Mine is tasteless, not just talking about it.The discovery of the Mutong iron mine can be traced back to the 70s, but this world-class iron mine was still undeveloped until the beginning of the 21st century.Both Brazil and Peru, which are in South America with Bolivia, have large iron mines, and the transportation conditions are far better than those of the Mutong Iron Mine. When the output of these iron mines is sufficient to meet the global demand for iron ore, it is important to develop the Mutong Iron Mine. Unprofitable.

In addition, in Huang Gang's mind, the entire iron ore industry is also a tasteless one.The international iron ore market has been in a stable state for more than ten years. Compared with the high investment, the profit of operating iron ore is not very large.Standing at the height of the State Planning Commission, it can be seen that the demand for iron ore in China is increasing significantly, but the production capacity of international iron ore giants such as BHP Billiton and Vale is far from reaching saturation. There are reasons to believe that iron ore prices will change significantly in the future.

In terms of judgment on economic issues, Lin Zhenhua is naturally inferior to Huang Gang, but Lin Zhenhua has an advantage that Huang Gang does not have, that is, he is a time traveler and can see the future.Lin Zhenhua clearly remembers that at the beginning of the 21st century, facing China's huge demand for iron ore, several major international iron ore giants secretly conspired to continuously push up the price of iron ore.In 2005 alone, the contract price of China's iron ore imports rose by 71.5%, which is tantamount to a naked money grab.

Since China does not have iron ore resources, China is in a completely passive position in iron ore price negotiations. Basically, we can only accept whatever price someone asks, and we don't even have the ability to bargain.

Lin Zhenhua has experienced this stage in his previous life, so he naturally knows how much the price of mineral resources will rise in a few years. Therefore, even as early as 10 years ago, he had already started to deploy Hanhua's mining industry.Last year, Hanhua established a sales center in Santa Cruz Province, where the Mutong Iron Mine is located. For more than a year, the sales center did not sell a few pieces of equipment, but the government departments related to the Mutong Iron Mine, Mine owners, farmers, etc. visited over and over again.Fang Lei, the director of the sales center, has now become a Bolivian handyman, able to chat with local dignitaries proficiently in Spanish about the weather, making money, gambling, and even women...

After sufficient preliminary preparations, the headquarters of Hanhua Group made a decision to invest in Mutong Iron Mine, and decided to invest 300 billion to 500 billion yuan to fully develop Mutong Iron Mine and provide a reliable source of iron ore for domestic development. .The team led by Hu Gui has done a lot of sensitivity analysis and determined that even if the iron ore price does not rise significantly, Hanhua’s investment can be recovered; and if the iron ore price is really as predicted by Lin Zhenhua If it grows at a rate of more than 30%, Hanhua's profit from it will be no less than that of any existing industry.

To invest 300 to 500 billion yuan, Hanhua's existing funds alone are far from enough, and it is difficult to meet the requirements even if it seeks a bank loan.At this time, He Fei, who had been advocating going public to collect money, put forward his own proposal again, thinking that Hanhua could raise this huge amount of funds from the stock market. This time, the proposal was approved by the management.

"Is it tasteless? We might as well look at it in a few years. Anyway, investing in mineral resources will at least not make a loss, what do you think?" Lin Zhenhua said to Huang Gang.His prophecy was a bit too appalling, and he didn't want to tell Huang Gang too much at this time. He just needed to explain to Huang Gang that this was Hanhua's decision. What Huang Gang needed to do was to help Hanhua complete the listing work. That's all.

Huang Gang said: "That's true. Over the past few years, the domestic demand for iron ore has been increasing, and the price of iron ore has risen steadily. It is unlikely to decline in the short term. Therefore, if Hanhua wants to I can't judge whether investing in iron ore can get a high return, at least it won't be a loss."

Lin Zhenhua smiled and said, "That's enough. It's not easy to find a project that will definitely not lose money these days."

Huang Gang shook his head and said: "Mr. Lin, what others say makes sense. If you Hanhua can't find a suitable project, it's a joke. I don't know why you are suddenly interested in iron ore, but , if you need a lot of funds for this reason, then there is nothing wrong with using the method of listing to raise funds. After all, your Hanhua has long been qualified for listing."

"Just having listing qualifications is not enough. We have to ask the China Securities Regulatory Commission to give us a listing quota. I know how tight the listing quota is now. In some places, the provincial government will not hesitate to negotiate with the Securities Regulatory Commission to get a quota. Yes." Lin Zhenhua said.

Huang Gang said disapprovingly: "That's another company. You Hanhua Heavy Industry, if you want a quota, it's not easy to get a job? It's impossible for the China Securities Regulatory Commission to get stuck with you, right?"

"Well, I also think that if we want a quota, we should be able to get it." Lin Zhenhua said, "However, what we want...is not a quota."

"What do you mean?" Huang Gang asked in surprise, "Are you still planning to ask for quotas for other companies? Is it from Xunyang City or Jiangnan Province?"

Lin Zhenhua said: "It's not from other companies, but from Hanhua Group itself. This time, we plan to establish five listed companies, so what we need is five places."

"You guys are crazy!" Huang Gang jumped up, "Five quotas, thank you for thinking of them. Do you know how many listed companies there are in China? The China Securities Regulatory Commission can't approve dozens of companies in a year, and you want five companies at once. ?”

Lin Zhenhua said: "Even if we launch five listed companies, each of them is a high-quality stock. So many junk stocks have been listed. With such a good resource, why not go public?"

"Five?" Huang Gang gradually calmed down from his initial surprise. He looked at Lin Zhenhua and asked, "So, you don't want to go public in the name of the group, but to split off the subsidiaries under the group?"

Lin Zhenhua said: "That's right, our idea is that the Hanhua Group Company will remain the same, and the five subsidiaries of our chemical equipment company, machine tool company, refrigeration equipment company, household products company, and Hunbei Forging Machine Tool Factory will be divided into five companies. Listing. In the future, Hanhua Group, as the major shareholder of these five listed companies, will also retain businesses including steam turbines, electric welding equipment, ship propulsion, electronics, and automobiles. We can sell up to 40% of the equity of these five companies and recycle The funds will be used to establish a wholly-owned mining subsidiary to develop overseas mines including the Mutong Iron Mine.”

Huang Gang is quite familiar with the composition of the Hanhua Group. He calculated with his fingers and said, "The combined tangible and intangible assets of the five companies that you have spun off are probably over 40 billion. You give up 500% of the equity, if you consider the appropriate premium issuance, it should not be a problem to recover 600 billion to [-] billion yuan of funds, which is more than enough to invest in the Mutong Iron Mine.”

Lin Zhenhua said: "Our own estimates are similar to this. Of course, all these funds will not be invested in the Mutong Iron Mine. We also have some mining rights in Africa, Mongolia, Indonesia and other places. It’s time for these mines to invest. In this way, the funds are still a little tight.”

"Large-scale overseas investment like this can apply for national policy support." Huang Gang reminded, "As long as your project is suitable, the country can provide you with some loans with relatively low interest and a repayment period. It can be set longer, and you can use it with confidence."

"Then I would like to thank Director Huang." Lin Zhenhua said with a smile, "I also need to ask Director Huang to take care of the quotas of the five listed companies."

Huang Gang patted his head, wrinkled his eyebrows, and said, "Boss Lin, to tell you the truth, before I went out, I expected what kind of price you might offer, and I was ready to be slashed by you." But I never expected that your appetite would be so big.

Who doesn't know now that one listing quota means tens or even tens of billions of funds. If you want to place five quotas in one go, it is equivalent to getting 500 billion funds.If it is only for digging a carat canal, I might as well persuade the China Securities Regulatory Commission to auction off these five places, and the money sold will be enough. "

Lin Zhenhua chuckled: "The question is, do you dare to publicly auction the listing quotas? Besides, people want listing quotas for the purpose of collecting money. How can we return the money you have collected? Our Hanhua subsidiaries are all For high-quality assets, which company has at least one billion yuan in profits a year, how many of your companies that have been listed in the past can make such profits?"

Huang Gang said: "There are quite a few companies with high profits, but there are not many companies that can show their profits on the books. I hope you, Hanhua, will not engage in such tricks with small profits on the books."

Lin Zhenhua said: "Don't worry, we listed these five companies after careful consideration. These five companies have now entered a period of stable development, and the company no longer needs to invest in them. Our idea is, After these companies go public, they must ensure that at least 50% of their profits are used for shareholder dividends every year, so that shareholders who donate money will not suffer losses.”

"You should not be so optimistic. I guess it would be good if the China Securities Regulatory Commission can give you three listing quotas. Five companies can be listed in one go... This is something you, Mr. Lin, dared to think about." Huang Gang muttered Said grumblingly.

(End of this chapter)