Chapter 415 I am more interested in minerals
If it was just Dong Xuan treating, Luo Yang might go alone.
Now that there are more investors at the dinner, it is more business-oriented in nature, so it makes sense to bring Yu Haiping along.
On the way to the destination, Luo Yang briefly explained the financing matters.
Of course, he would not explain the entire operation process in detail. After all, he did not trust his assistant to that extent.
"Chairman, has this kind of channel funding become commercialized now?"
Yu Haiping lamented: "The amount of low-interest funds flowing from the financial system to state-owned assets is huge, but they are afraid of losing state-owned assets and dare not make blind investments, so many state-owned enterprises will seek cooperation with local governments."
When talking about this, we have to mention urban construction and urban investment.
After the two taxes were merged, taxes had to be paid uniformly, and local finances became tight.
However, urban construction must be promoted, public expenditures on education, medical care, etc. must not be reduced, and employee salaries must be paid.
The local fiscal revenue each year is simply not enough.
The land transfer fee can be retained.
Land finance that relies on real estate development came into being.
Local governments have set up urban investment companies, allowing enterprises to incur debt to cover the costs of demolition, land acquisition, supporting construction, and relocation of schools and medical institutions. Finally, they recover the costs and make a profit from land transfer.
These profits are then converted into urban construction funds, promoting the urbanization process, and the cycle continues.
This model first achieved results in large and medium-sized cities, but around 11, it had not yet begun to spread to small fourth- and fifth-tier cities.
The reason is simple. The market in big cities is not yet saturated, land prices in small cities are cheap, and developers have not yet begun to turn their attention to the large number of small cities.
If the land cannot be sold, or if the land cannot be sold at a high price, the urban investment will not be able to operate.
Therefore, during this period, the finances of small cities are still tight, and urban construction and other aspects cannot keep up.
But small cities also need to develop, what should we do?
Capital will always find a way out.
State-owned enterprises fully advance funds to help local governments build development zones and public supporting projects;
The local government will use fiscal revenue as a guarantee to repay the construction funds over several years.
The cost of funds in the hands of the enterprise is less than 2 percentage points, and the profit of the full advance payment construction is more than 25%, which can be repaid in several years. With the guarantee of local fiscal revenue, it can obtain a stable profit of to percentage points every year.
Local governments are short of money, while state-owned enterprises have massive amounts of low-interest funds, so the two parties hit it off.
In fact, this is also the reason why Guotai's industrial real estate model can be so smoothly developed in Yang City. The local area is too short of money!
Yu Haiping used to work in a government office and knew a lot about this aspect.
"Yes, it's starting to go commercial!"
Not every state-owned enterprise can be like Gezhouba and Zhongmoujian, which have both money and the ability to engage in construction. Many state-owned assets are also engaged in the real manufacturing industry, and they have a large amount of low-interest quotas from the China Development Bank that they cannot use up every year.
Bank trusts smelled a business opportunity.
They act as a safety valve, which to some extent is equivalent to providing credit endorsement to the party in need of funds.
Whether to use assets as collateral or other means of guarantee is a technical job.
So the funding channel was established.
Since all parties in the channel need to share the profits, the capital cost is relatively high, but for companies that urgently need life-saving money, this cost does not matter.
"Chairman, wouldn't it be more cost-effective to get a loan directly from the bank?"
Yu Haiping was not clear about the overall plan, so it was inevitable that he had such doubts.
"There are some other factors involved, and you will gradually understand them later."
Luo Yang just skipped over it.
Obviously, this is something I don't want to talk about for the time being.
Yu Haiping has a high EQ, so he naturally didn't ask any further questions.
He then turned the topic to the preparations for the opening ceremony, and after reporting for more than ten minutes, the car arrived at the destination.
The dinner was arranged in a private club. When Luo Yang arrived, Cong Shanshan was already waiting at the door.
"How many people are there today?"
"Including Director Dong and me, there are three people from the bank. The other one is the investor this time, Tianshui Group's Vice President Lin Shengguo and his secretary Xu Jiao."
"Tianshui Group?"
Luo Yang asked curiously: "What is the main industry?"
"It's mainly about mineral resources."
Cong Shanshan, who was leading the way, lowered her voice and said, "The business is spread across Yunnan, Guizhou, Sichuan, Jiangxi, Hunan, Hubei and other provinces. The company in Shanghai is their business headquarters in the southeast region."
Huh?
Hearing this news, Luo Yang couldn't help but be surprised.
Yuanfan Group's main industry is new energy, especially batteries, and there will be a huge demand for lithium mines in the future.
Tonight's dinner is quite interesting.
"Director Dong, am I not late?"
There were already four people sitting in the box, and it seemed they were waiting for him.
"Boss Lin and I haven't seen each other for a while, so I came here early to catch up. Boss Luo, you're not late at all."
Dong Xuan stood up with a smile and introduced Luo Yang and Lin Guosheng to each other.
"Seeing is believing. I heard Director Dong say that Mr. Luo is young, but now I know that his imagination is still not enough after seeing him in person."
Lin Guosheng shook Luo Yang's hand with a smile on his face: "You are really young and promising!"
"Mr. Lin, you are too polite. You people born in the 1960s and 1970s are the backbone of society."
Luo Yang said modestly: "We young people are full of courage, but we cannot do without your help, support and guidance. Only by standing on the shoulders of our predecessors can we go more steadily and further!"
Yu Haiping looked at his boss in surprise.
Is this something a 21-year-old can say?
"Hahaha, no wonder Mr. Luo has built such a big business at such a young age!" Lin Guosheng laughed happily.
After the greetings, Luo Yang and Yu Haiping took their seats and the dinner officially began.
"Boss Lin, Boss Luo, this first glass of wine is for you two."
After a pre-meal pumpkin porridge, Dong Xuan picked up the red wine glass with a smile. "As the matchmaker, I have already tied the thread. Whether it can be successful in the future depends on the fate of the two CEOs!"
"Xiao Dong has been busy helping others make connections in recent years."
Among the people present, Lin Guosheng is the oldest, so there is nothing wrong with calling him Xiao Dong.
He also picked up the white wine cup and said with a smile: "I have accomplished a lot of good things, and my position has become more and more powerful. But I just forgot to make connections for myself!"
They are all masters of double entendre.
Luo Yang thought that he and Dong Xuan were not that familiar with each other, so he did not join in the mischief.
After a glass of wine, and with all the words of introduction already said, the topic naturally got to the point.
"Director Dong, President Lin, there is something I want to say first."
The Guangfan Wind Energy Project currently does not have any assets that can be mortgaged, so Luo Yang spoke first.
He said bluntly, "There is no collateral for this financing. We need to use another company as collateral first. The collateral project will not be implemented until a year later. I wonder if the bank and Mr. Lin can accept it?"
Lin Guosheng was stunned for a moment.
Making money is one thing, but the key is safety. If the channel risk is too high and causes the loss of state-owned assets, Lin Guosheng would never agree.
He immediately put away his smile and looked at Dong Xuan with confusion.
"Are you using Luo Sheng Tang as collateral for this financing?"
Dong Xuan knew what was going on and wasn't worried at all.
She did not rush to reply to Lin Guosheng, but looked at Luo Yang with a smile: "If it is, let alone 2 million, 5 million or less will do. Our Yongcheng Bank's trust department is willing to take on this commission."
Who doesn't know banks?
Although he didn't get an answer, Lin Guosheng looked much better after hearing these words.
He had heard Dong Xuan talk about Luo Yang before, and he also knew that Luo Yang had several profitable businesses under his name, and Luo Shengtang was one of them.
Moreover, banks have fixed procedures and will definitely have corresponding evaluation reports.
"I want to use another company as collateral."
Luo Yang shook his head. After all, there were three other shareholders in Luo Sheng Tang. If they wanted to guarantee 2 million yuan in financing for other companies, they would definitely have to inform Liu Haishan and the others. That was too troublesome. It would be better to use Zhengyang Group.
"Isn't it your clothing factory?"
Dong Xuan immediately thought of it, because Sunshine Electronics had a loan of 5000 million yuan and the guarantor company was Zhengyang Group.
"Yes, I plan to use Zhengyang Group as collateral."
Luo Yang smiled and said, "The companies that finance and guarantee are all registered in Yang City. They will be integrated into one group in the future. This will be more convenient."
"Boss Luo, the garment factory has already provided loan guarantees for a company."
Dong Xuan paused and said, "If we still want to use this company as collateral for this round of financing, it depends on the results of the bank's evaluation."
Her impression of Zhengyang Group is still at the stage of last year.
"completely fine."
Luo Yang shrugged and said, "Even if we launched an investment project worth hundreds of millions in the first half of the year, Zhengyang Group's profit for the whole year will exceed 2 million."
Dong Xuan: "."
"Is Mr. Luo's clothing business so big?"
Lin Guosheng was not surprised. A profit of 2 million yuan was just a drop in the bucket for a large state-owned enterprise like Tianshui Group.
He was just curious: "What brand is it? How well-known is it?"
"There are two men's clothing brands, one is Fengshang Men's Wear and the other is Coolpad Men's Wear. Both are new projects launched this year and are not making much money yet."
Because of the attributes of Tianshui Group, Luo Yang still wants to make friends with Lin Guosheng.
So the reply I gave him was quite detailed: "The profits are mainly from women's clothing. Domestic sales were good, and in the second half of the year we expanded into overseas markets. Currently, there are so many orders that we need to run the machines 24 hours a day."
After saying this, Luo Yang looked at Dong Xuan and said, "Director Dong is always welcome to send someone to evaluate the Zhengyang Group."
"Boss Luo is really good at giving people unexpected surprises!"
Dong Xuan didn't seem embarrassed at all. She looked at Luo Yang with her beautiful eyes and said, "The ability of Luo Sheng Tang to make money is enough to make people jealous. I didn't expect that you also hid a golden doll in Yang City."
The atmosphere at the table suddenly became lively again.
Once the fundamental problem is solved, the rest becomes easy.
Lin Guosheng doesn't care what Luo Yang's final capital cost is. He only needs to ensure two points: the interest rate on the funds borrowed from Tianshui Group is the individual link takes 1 point.
As a matchmaker, Dong Xuan could not possibly tell the truth at the dinner table about how much commission she received.
After the financing intention was roughly finalized, the conversation topics began to expand.
"Mr. Luo, you have such abundant cash flow, what industry are you planning to enter next?"
The reason for raising funds at high costs is nothing more than to reasonably avoid taxes. Everyone here is smart, so there is no need to make it clear.
Cong Shanshan inadvertently brought up this topic when she was toasting.
"me."
Luo Yang glanced at Lin Guosheng and said, "He is quite interested in minerals!"
(End of this chapter)
