The Fourth Lingshi Financial Crisis

Chapter 56 Self Defense
Seeing that both Li Qingning and Yang Lu were shocked by the financial report made by himself, He Mingyuan's smile became more and more confident.

However, what he didn't know was that what Li Qingning hated the most was that others looked down on her. She directly characterized He Mingyuan's confident smile as a mockery of her lack of ability.

So Li Qingning slammed the account book on the conference table, and asked loudly: "Guard He, in the past three years since your Luoxia City branch was established, you have hardly contributed any profit to the headquarters. Isn't there your own problem here? ?”

The eldest lady couldn't find any objective problems, so she began to directly question the other party's motives.

However, Li Qingning's stern performance could not deter He Mingyuan, a veteran in the business world who has been in business for more than [-] years.

Hearing Li Qingning's heartbreaking question, He Mingyuan was not afraid, but responded loudly: "Miss, this is the cruel commodity market! If the money in the commodity market is so easy to make, all traders can make a steady profit without losing money. Then how can there be poor people in this world?"

He Mingyuan was actually changing the concept secretly.

Commodity markets are indeed brutal, but only for speculators.

The Qingning Chamber of Commerce is a trader engaged in physical transactions. Although this type of trader cannot make a huge profit like a speculator, it is not impossible to fail to make money for two consecutive years.

He Mingyuan also seemed to know that there was a loophole in his logic, so he didn't give Li Qingning any time to react, and chased after the victory: "I, He Mingyuan, have worked hard for so many years, and all the purchases of goods have been made at the market, and I have not embezzled a penny from the Qingning Chamber of Commerce. You can replace it with someone else." This Chamber of Commerce is in charge, and it is absolutely impossible to manage it better than me!"

Guanshi He's impassioned speech, combined with a clean account book, is like a national hero who was unjustly killed by a foolish king.

Li Qingning pursed his delicate mouth, stared at He Mingyuan for a long time, and finally sat down on his seat: "Could it be that the Qingning Chamber of Commerce is really unlucky, and every time it buys grain, it catches up with the high price of grain?"

Seeing that Li Qingning's attitude had softened, He Mingyuan said sincerely: "Miss, this is why the Haiya Chamber of Commerce never engages in procurement in person, but outsources the procurement business to major suppliers. This is to avoid price fluctuations. Uncertainty in profitability. In business activities, victory or defeat is a common matter in military affairs, and no one has ever succeeded casually!"

Li Qingning sat blankly on the chair.She seemed a little distraught, but the loss of more than 1 spirit stone coins obviously hit her hard.

She really couldn't understand why she couldn't make money even in such an open and transparent business as grain procurement?
Obviously, other chambers of commerce can earn some hard money more or less!

Is it really because of my bad luck?

Li Qingning's mood was a little depressed because of Li Qingyang's affairs. After learning the news of the Luoxia City branch's huge loss in grain trade, she felt even more depressed, and subconsciously turned her attention to Yang Lu for help.

Seeing the pitiful look of the young lady who was about to cry, Yang Lu knew it was his turn to play.

He took the account book and glanced at it roughly, then threw it aside, and applauded lightly: "I didn't realize that, in our Qingning Chamber of Commerce, there is such a clean and honest cadre as Guanshi He! "

As if he didn't understand Yang Lu's sarcasm, He Mingyuan said righteously: "When I was down and down, it was the eldest lady who personally promoted me from the market to the chief manager of the Luoxia City branch. This kindness, I, He Mingyuan, will live forever Unforgettable! Sharing worries for the eldest lady and Qingning Chamber of Commerce is exactly my duty, He Mingyuan, to do!"

He Mingyuan's upright Chinese character face, coupled with his Wei Guangzheng speech, is simply a model actor on earth.

Yang Lu tapped on the table lightly, interrupted the other party's impromptu performance, and said with a smile: "The standardization of grain transactions is extremely high. If all spot transactions are carried out, the cost fluctuations are too violent. Don't talk about the Qingning Chamber of Commerce, I guess The vast majority of downstream merchants will go bankrupt because of this..."

Seeing that Consultant Yang, who had never made a sound, finally made a move, He Mingyuan quickly cheered up and asked, "The price of commodities fluctuates according to the relationship between supply and demand. This is a natural principle. I wonder what advice Consultant Yang has?"

Yang Lu looked at He Mingyuan meaningfully, and slowly said: "As far as I know, most of the grain transactions in Luoxia City are not based on the spot price, but are settled according to the forward contract price signed by the buyer and the seller in advance. To avoid large fluctuations in food prices in the future, causing unnecessary losses to major chambers of commerce, I don’t know if I’m right?”

Li Qingning obviously didn't know that there was such a thing, and immediately cast a suspicious look on He Mingyuan.

Through the questioner's question, one can see the level of the questioner's professional level. The specific business questions raised by Yang Lu are obviously higher than Li Qingning's "air-to-air" questions, which made He Mingyuan feel nervous.

However, his "righteous face" still remained unchanged, and he said generously: "Guangshi Yang is really familiar with the way of bulk commodity trading. Yes, many grain buyers will sign purchase contracts with producers in advance for the next few months. Lock in future transaction prices. Our Qingning Chamber of Commerce has also done this before, for example, we signed four forward purchase contracts last year, and we also signed three forward purchase contracts the year before last, which are all recorded in the books."

Yang Lu asked with interest: "Oh? Then why didn't you sign a forward purchase contract this time?"

Regarding this issue, He Mingyuan was also well prepared.

"There is also a problem with the forward contract!" He took a deep breath and explained slowly, "Seven months ago, the Luoxia City branch received a procurement request from the headquarters, asking us to purchase 4.1 tons of japonica rice. It was delivered to the Haiya Chamber of Commerce in July, when the spot price of japonica rice was about [-] yuan per ton, which was much higher than the historical average.”

Li Qingning didn't completely abandon the shopkeeper, and he still had some understanding of the general situation of the round-grained rice trade.

She nodded to confirm He Mingyuan's statement: "That's right, the price of round-grained rice rarely exceeded 4 yuan Lingshi coins in previous years."

Seeing that Li Qingning agreed with his statement, He Mingyuan continued to introduce: "According to the regulations of Luoxia City's grain trading, when we sign a forward contract, we, as the buyer, have to increase the price to complete the transaction. This is the so-called forward premium. Therefore, when we signed a forward contract The comprehensive cost of the futures contract has reached as high as 4.6 yuan per ton of japonica rice, which is only 5% of the profit margin compared to the Haiya Chamber of Commerce’s quotation of 8 yuan per ton.”

Li Qingning raised his eyebrows and said, "You think the profit margin of this transaction is too low, so you bet on the price of japonica rice falling?"

"Miss is wise!" He Mingyuan bowed his head and apologized with shame on his face, "Due to the high cost of storage of japonica rice and high warehouse rent, and the price of japonica rice was at a historical high at that time, we judge that the spot price of japonica rice is unlikely to rise above 4.6 yuan , the probability of the spot price falling is greater, so I refused to sign the forward contract... It's a pity that the sky doesn't come true!"

According to He Mingyuan, since the spot price of japonica rice was too high when the Haiya Chamber of Commerce placed the order, after careful consideration, he decided not to sign a forward contract, but to purchase in the spot market at that time, as long as the spot price of japonica rice does not increase in the next six months If it is higher than 15%, He Mingyuan's decision can greatly increase the profits of the chamber of commerce.

It's a pity that unforeseen circumstances and sudden floods caused the price of round-grained rice, which was already at a historically high level, to once again experience a rare surge, which led to the current passive situation of the Qingning Chamber of Commerce.

(End of this chapter)