Chapter 895: Zhang Zhifei’s Hongyuan

Kumho’s disaster relief donations are operated by the Hong Kong New Sawk Charity Foundation. Xin Sawk is a charity officially registered in Hong Kong by Sun Shangyi and his wife in 1996. This time, in addition to Kumho’s 100 million disaster relief funds, Xin Sawk also raised nearly HK$100 million in disaster relief funds. These two funds will be directly used for post-disaster reconstruction work in Kingsoft.

Siyan Township on the east bank of Yinma River was flooded as a whole. After the flood receded, it was in a mess. Even if some rooms did not collapse, they became dangerous houses because they were soaked in the flood for ten months. Jinshan City immediately decided to transfer Siyan Township into an industrial park originally limited to the west bank. More than 20,000 people in Siyan Township chose to settle land. In addition to the disaster relief funds, the city will also provide a land acquisition compensation fee.

After a period of consultation, Zhang Zhifei's Hongyuan Industrial undertakes the reconstruction of Chenxi Paper Industry's shantytown and Siyan Township's disaster-stricken reconstruction resettlement area. The total cost of the project is close to 400 million yuan. In addition to the 200 million yuan disaster relief funds in the Xinshi Administration, the remaining part will be supplemented by Jinshan City with land acquisition compensation funds.

Zhang Ke came to Jinshan this time, and it was about to successfully acquire Chenxi Paper, but it was a foregone conclusion that he didn't need to go there in person. After he arrived in Jinshan, he lived in the provincial party committee hospitality hotel. At this time, he just brought the uncle to the Jinshan Hotel and talked about Hongxin Construction for a long time. Only then did he turn the topic to the construction of shanty towns and resettlement areas.

"Build a brand new town to the northeast of the paper mill, and the living area of ​​the paper mill will gradually be transformed, and the production scale of the paper mill will continue to expand. Especially after the entire Siyan Township is included in the industrial zone, it will be enough to support an industrial new city with 200,000 people," said Zhang Ke. "We need to plan this place well..."

Zhang Zhifei will not be careless about post-disaster reconstruction work. Not to mention the rest, Hongyuan Industrial can also enter Jiangnan Province. This time, he has brought almost half of Hongyuan Industrial's engineering management personnel in Haizhou to Kingsoft. In addition to purchasing tens of millions of engineering equipment, nearly a thousand construction workers recruited in Kingsoft in the past half month, and participated in the construction of municipal projects such as lake embankment reorganization, river dredging, Hongwei District dredging, road repair and other municipal projects.

Due to the great damage caused by the collapse of Jinshan Lake, the huge amount of post-disaster reconstruction work has far exceeded the load of local engineering construction companies. With the support of Zhao Youlun, the Secretary of the Municipal Party Committee and Mayor, it is only natural for Hongyuan Industrial to enter the Jinshan city area to fully enter, and there is almost no resistance. Hongyuan Industrial raised nearly 10 million US dollars in investment from Indonesian Chinese merchants, which almost all of them were used for this expansion.

Zhang Zhifei's greatest interest is more than that. Zhang Ke told him that the reconstruction area should be planned well. He nodded and agreed, but soon turned the topic elsewhere and said: "Jinshan City's finances are short of money and urgently used money everywhere, saying that he would take out 200 million yuan of land acquisition compensation for the reconstruction of the disaster resettlement area in Siyan Township, but the shadow of this money is not visible for the time being. Hongyuan Industrial still needs to pay in advance. I don't know when Kingsoft will be able to make up for the money for Hongyuan..."

"Hasn't the 200 million yuan of Xindaoguang been transferred to Hongyuan's account? This money should be enough to pay the preliminary expenses." Zhang Ke said.

"There is no shortage of money," Zhang Zhifei smiled and said, "I have been thinking these days that if Kingsoft's money is delayed until the project is completed and then paid in installments, isn't it a bit similar to the model of "advanced funds and government repurchase after construction" like Hongxin Construction?"

"Well, it's a bit similar," Zhang Ke's mind flashed, and Yuer said with a smile, "When did my uncle hide his words? He spent most of the day before half of his tail was revealed?"

"You muddy boy, how can I show my tail?" Zhang Zhifei smiled and said that he wanted to beat Zhang Ke, raised his hand, and took out the cigarette to smoke. "Hongyuan Industrial undertakes municipal projects such as river dredging, road construction, land leveling, pipeline laying, harbor terminal construction, and the construction of major demolition and resettlement housing in Haizhou. From 1994 to the summer of 1998, the net assets were only more than 200 million. Hongxin Construction went to Tianjin and Beijing in 1993. Although it was impossible to know its asset scale, Hongxin Construction now has only one billion registered capital. Moreover, after the establishment of Xintong Bank in 1995, Hongxin Construction, as the initiator, has invested more than one billion in Xintong Bank. Do you think this society is so popular that people are more popular!"

Zhang Ke smiled and said, "It's really annoying to compare people. Hongxin Construction made a fortune in the Hainan real estate market before 1993. Besides, the water behind Hongxin Construction is very deep, and this is not something that Hongyuan can compare - why, uncle, do you want to copy the operating model of Hongxin Construction?"

"This model requires financial institutions to support it. With Hongyuan's financial strength, it can only operate one or two projects at the same time. Hongxin Construction relies on financial institutions such as Xintong Bank and can operate dozens or hundreds of such projects at the same time," Zhang Zhifei shook his head and said, "It cannot be copied..."

In China, due to the shortage of funds from investors, the engineering company is no longer an exception. In his impression, it seems that Hongxin Construction has developed this model on a large scale, and it is also specially dealing with government departments that are short of funds and are eager to launch projects.

This cooperation model is usually willing to ensure higher profit margins for engineering companies. Even if the average net profit margin after deducting financing costs does not exceed 10%, with the help of financial support provided by financial institutions such as ICBC, Hongxin Construction can operate dozens or hundreds of projects at the same time, and the profit scale can reach an astonishing level.

"My uncle is a little moved..." Zhang Ke leaned his head against the high-waisted backrest of the rattan chair. Yuer stood up again and said, "I want to support you unconditionally, but the interests involved in all aspects of Jinhu are more complicated than before - so, uncle, you can transfer 20% of Hongyuan Industrial's shares to Jinhu Commercial!"

"This is absolutely fine," Zhang Zhifei asked again, "Will 20% be too little?"

"When I established Jinhu Commercial, Sun Shangyi, Ye Jianbin and others established a principle. Jinhu Commercial should promote the comprehensive development of all links of the industrial chain. In order to do more, they must make full use of limited capital. Even if the profit is high, the shareholding in related companies should not exceed 20%-20% of the shares," Zhang Ke said again, "In addition, the development direction of Hongyuan Industrial must follow the overall interests of Jinhu Commercial. You also agree to this condition?"

"I'm not very clear about the overall interests of the so-called Kumho Commercial Bureau," Zhang Zhifei said with a smile, "But I promise you, can I still not trust you?"

"Just agree," Zhang Ke smiled and stretched. "The reconstruction of the shanty town of the paper mill is Hongyuan's archway project, but it must be done seriously."

"What is erecting a archway? You have to say it so badly! Then I will transfer Liang Jun from Century Kumho."

"Hongyuan's next direction adjustment span is very large. If Liang Jun can be transferred here, I think it's better to let Liang Jun follow you. Hongyuan Development has a certain scale, and there will not be only one or two people who can use it," said Zhang Ke. "I asked Jinhu Commercial to transfer at least 50 million US dollars to Hongyuan in the name of corporate debt. Hongyuan's main goal during this period is to acquire engineering companies with experience in harbor construction as much as possible..."

Kumho Commercial raised more than $500 million in summer from Chinese capital evacuated from Indonesia. Of course, Kumho Commercial has to pay tens of millions of dollars in debt every year, which is one of the costs of Kumho Commercial's operations.

Kumho Commercial will not directly participate in the operation of the industry. In addition to overseas trade business, Kumho Commercial's most important operating income in the future comes from debt and equity investment.

In addition to injecting a small amount of funds into Hongyuan for 20% of its equity, Kumho Commercial Bank will lend 50 million US dollars of corporate bonds. The debt interest income will be charged a certain proportion of the debt interest. The debt interest income can maintain the daily operation of Kumho Commercial Bank. When Hongyuan Industrial achieves great development, the return on equity investment in the future will be the big deal.

Equity investment is not profitable for a certain period of time. Kumho Commercial cannot arbitrarily increase the proportion of equity investment funds. Limited equity investment funds should be as much as possible and penetrate into the entire industrial chain as deeply as possible. Then the specific enterprise shareholding ratio must be strictly controlled - Besides, if equity investment exceeds a certain proportion, it must directly participate in the operation, which is not in line with the original intention of the establishment of Kumho Commercial.

Zhang Ke's main intention to go to Jinshan this time was to discuss the construction of the port on Dongshan Island. It was not to talk to Xinting, but to make preliminary communication with Xu Xueping and Liang Weifa first. The initial panic in the disaster relief work in Jiangnan Province has passed. Although the road to post-disaster reconstruction work is still very large, it is at least on track. Next, we should focus on economic development. In Haizhou, Su Yiqun was transferred to Haizhou and Ping was transferred to Suyang, north of the East China Sea, as mayor. It was said that it was a transfer, but how could Suyang be transferred to Haizhou? After Su Yiqun was transferred, he appointed Song Peiming as deputy secretary of the municipal party committee and acting mayor, which was regarded as paving the way for Tang Xueqian to leave Haizhou.

Zhang Ke suspected that Tang Xueqian would not even need to wait until the study at the Central Party School was over to determine his new position. He chatted with his uncle at the Kingsoft Hotel for a long time, looked at his watch, and said, "Uncle Xu may be going back to his residence. Uncle, please come with me... In this way, you will know the direction that Hongyuan Industrial needs to adjust."

When Zhang Ke and the others went downstairs, Xie Jiannan, Lin Xue and Wang Haisu had just finished their conversation in the lobby cafe and were about to leave the Kingsoft Hotel.

Zhang Ke glanced at Xie Jiannan, but said nothing, and got into the car surrounded by everyone.
Chapter completed!