Reborn Industrial Tycoon

Chapter 647 Foreign monks can chant sutras

Zhao Jinshan thought that Li Weidong did not know Huiyuan Industrial Group, so he introduced: "Huiyuan Industrial Group started out as a machinery import and export trade. Their business was very big back then. In the early 1990s,

Can get a foreign exchange quota of 70 to 80 million US dollars."

When it comes to import and export trade, Li Weidong couldn't help but think of Xiao Yuanzheng back then. Those who were able to do this business at that time were not ordinary people.

In the early 1990s, when the country's foreign exchange was still relatively tight, we were able to obtain a foreign exchange quota of 70 to 80 million U.S. dollars, which was an even more unusual background.

So Li Weidong said subconsciously: "This Huiyuan Industrial Group has a very deep background!"

"That's right. This company has quite a lot of connections in the petroleum system." Zhao Jinshan did not explain much, and went on to introduce: "Later, the country partially liberalized coal prices, and Huiyuan Industrial also began to enter the coal field at that time.

At that time, coal prices soared, and Huiyuan Industrial made a lot of money. During this period, it also merged with many state-owned or collective enterprises, and began to develop into liquefied natural gas and coal chemical industries.

When coal prices fell sharply in 1998, Huiyuan Industrial, like us, bought a lot of coal mines at the bottom, but they were not as calm as us. In 2000, coal prices hit a low, and they couldn't help but sell a batch of coal mines.

Among the relatively small coal mines, several of them have been taken away by us.

However, Huiyuan Industrial still retains several large mines. The original technical teams are still there. After all, they have been in the coal business for ten years, and they have merged with some state-owned enterprises during this period. They have the old foundation of state-owned enterprises and are capable.

Provide technical support.

Recently, I have been looking for technical personnel, and I don’t know where I got the news from Huiyuan Industrial, so I came to the door and said that I was willing to provide comprehensive technical support, but we needed to sell 30% of our shares to them.

"

"Does this mean that the previous coal mine was sold at a loss, and I came here to make up for it?" Li Weidong said with a smile.

"Based on the current coal price, those coal mines must have lost money on sales. It is normal for Huiyuan Industrial to want to make up for it from other places." Zhao Jinshan replied.

"But with 30% of the shares, some lions are talking loudly." Li Weidong continued.

"I calculated that the recovery rate of most of the mines we have is between 20% and 30%. With the technology provided by Huiyuan Industrial, the recovery rate can be increased to at least 60%. Even if

The share dividend is 30% less, but in total, our profit is obviously more than it is now."

Zhao Jinshan continued: "What's more, these 30% shares are not given away for free. Huiyuan Industrial must have paid more than ten to two billion! Even if we divide the money, we still make a lot of money!"

But Li Weidong shook his head: "Brother Zhao, you can't calculate like this. What if the price of coal continues to rise? In two or three years, you may be able to make a profit of 120 yuan per ton of coal. By then, how many yuan will we earn?"

You can earn more than ten or two billion a month!"

"You don't want to sell your shares?" Zhao Jinshan asked.

"At least 30% is impossible." Li Weidong continued categorically: "If Huiyuan Industrial is willing to provide technical support, I will accept selling him 10% of the shares at most."

"Okay, then I'll listen to you!" Zhao Jinshan did not hesitate. On a strategic level, Zhao Jinshan still unconditionally believed in Li Weidong's judgment.

So Zhao Jinshan continued: "Then I will go talk to Huiyuan Industrial and try to reduce the shares to less than 10%!"

…

In the fitness club of a certain star hotel, Zhao Jinshan was holding a table tennis racket and standing in front of a table. Opposite him was a short, lean man, but he looked very smart.

This person is Sun Chongxin, the chairman of Huiyuan Industrial Group.

In terms of table tennis skills, Zhao Jinshan was obviously no match for Sun Chongxin, and he was defeated after a few shots.

"No, I can't beat you!" Zhao Jinshan waved his hand, indicating that he wanted to take a rest.

Sun Chongxin also put down his racket and said with a smile: "Mr. Zhao, you should exercise more. Your belly is bulging out!"

The two of them walked to the seats next to them and sat down. They picked up towels and wiped their sweat. They each opened a bottle of mineral water and started chatting while drinking.

"Mr. Sun, I really can't agree to that 30% share. This Dongshan Mining is not my company. There is another shareholder. You must know him, that is Li Weidong of Puppy Electric. We discussed it.

For a moment, I felt that 30% of the shares was too high." Zhao Jinshan said.

"It's not like I won't give you money. I will make the acquisition based on Dongshan Mining's valuation and market price. You will definitely not lose money, and you may even make a big profit. And after you get technical support, your coal output will increase significantly.

If it increases, the final profit will be greater than now." Sun Chongxin said with a smile.

"We are relatively optimistic about the price of coal in the future. If we sell more company shares now, we will lose money in the long run." Zhao Jinshan said bluntly.

"I'm also optimistic about coal prices, otherwise I wouldn't come to you!" Sun Chongxin put down the mineral water bottle in his hand and continued: "Since you can't accept 30% of the shares, how much can you accept?"

"5%!" Zhao Jinshan did not directly quote the bottom line of 10% to facilitate the subsequent negotiations.

"This is too little!" Sun Chongxin shook his head and then said, "I can reduce the price by 5% and buy 25% of your shares."

The two sides started a series of bargaining, and finally reached a price of 20%, but Sun Chongxin refused to lower it.

Seeing that the negotiation seemed to have reached a deadlock, Sun Chongxin reached out to the assistant next to him. The assistant hurriedly came over and handed a thick document into Sun Chongxin's hand.

"Mr. Zhao, this is a copy of the most recent meeting minutes. You have to read it first and return it to me after reading it!" Sun Chongxin handed the document to Zhao Jinshan.

Zhao Jinshan took the meeting minutes, looked at the unit where the meeting was held, and his expression suddenly became serious.

This turned out to be a meeting on coal mine production safety held by the National Work Safety Committee.

"This Sun Chongxin is really well-connected, and he was able to get such meeting minutes." Zhao Jinshan thought to himself, and he now understood why Sun Chongxin asked him to return it after reading it.

Zhao Jinshan immediately began to read the meeting minutes carefully, and his expression gradually became solid.

"Is the country going to close down small coal mines for rectification?" Zhao Jinshan asked seriously.

Sun Chongxin nodded: "At the end of last year, the State Council issued the "Notice on Further Closing and Rectifying Small Coal Mines and Coal Mine Safety Production Work," which was last year's Document No. 68.

However, this year the demand for coal began to increase rapidly, the price of coal also increased significantly, and there were more and more small local coal mines.

The country is also aware that under the current circumstances, if all small coal mines are closed down across the board, it will lead to insufficient coal supply and the price of coal will rise even higher, which will in turn affect industrial development and people's livelihood needs.

.

Therefore, this meeting is discussing that while ensuring that the national economy is not affected, small coal mines should be phased out in stages, and other coal mines should also be rectified, and safety production work in coal mines should be gradually strengthened."

Zhao Jinshan pondered for a moment and said: "This is good news for our Dongshan Mining industry. The coal mines we know about mining are not considered small coal mines, and we will update a batch of new equipment recently and will also increase the number of coal mines.

Capital investment in production safety. If we rectify small coal mines, wouldn’t our coal be better sold?”

"Mr. Zhao, haven't you noticed? In addition to discussing small coal mines, this meeting also discussed coal mines with low mining efficiency. These are also within the scope of closure."

Sun Chongxin smiled slightly and continued: "Although some coal mines are not small in size and have high output, their collection efficiency is very low and the recovery rate is very low.

If this kind of coal mine continues to exist, it will not only produce a lot of waste of resources, but also seriously damage the ecological environment, and even cause irreversible serious consequences. Therefore, this type of coal mine also needs to be gradually closed down.

As far as I know, except for the two large mines of Taifeng and Taisheng and a few coal mines in Dongshan Mining, the recovery rates of the other coal mines are not high, right?

I can guarantee that if you do not increase the recovery rate, in the next two to five years, when the country begins to increase its rectification efforts, most of your coal mines will definitely be listed as closed for rectification.

Moreover, increasing the recovery rate cannot be achieved in a day or two. This itself requires a process. With so many coal mines, it will probably take about two years to increase the recovery rate, right?

Mr. Zhao, even if you start to increase the recovery rate now, you will still have just enough time to deal with the national team’s gradual rectification of coal mines. If you calculate it this way, you don’t have much time left for Dongshan Mining!”

After hearing what Sun Chongxin said, Zhao Jinshan suddenly became nervous.

Zhao Jinshan knew that Sun Chongxin would definitely not fool him with the fake meeting minutes, which meant that the country had planned to gradually rectify the coal mines.

The kind of small coal mines run by unscrupulous coal bosses may ignore national policies and carry out production secretly, which is the so-called black coal mines without formalities.

However, a serious coal production company like Dongshan Mining must conscientiously implement national policies. If the country requires coal mines to be shut down, they must be shut down. Production cannot be carried out secretly.

In other words, the coal mines under Dongshan Mining must increase the recovery rate of coal mines as soon as possible so that they can meet the production standards set by the country in the future.

…

"Weidong, we are in trouble." Zhao Jinshan dialed Li Weidong's phone number and told Li Weidong about the meeting minutes.

Li Weidong subconsciously patted his forehead and said, "I was only thinking about the scale of the coal mine, but I forgot about the production efficiency of the coal mine!"

This was indeed a mistake by Li Weidong. He only remembered that the state was rectifying small coal mines with low output, so when buying coal mines at the bottom, he chose medium and large coal mines with good output and avoided all small coal mines.

However, during the rectification process of the coal industry in later generations, in addition to small coal mines being rectified, coal mines with low production efficiency were also included in the rectification process.

This type of coal mine with low production efficiency is part of the so-called "overcapacity reduction" in the coal industry.

As early as 1994, the country designated the cross-cut policy of "support, transformation, rectification, union, and improvement" for the coal mining industry. These ten words all refer to improving the production efficiency of coal enterprises.

Later, those "backward production capacities" were simply eliminated. In the two years when the policy was the most stringent, nearly 700 million tons of production capacity were directly eliminated!

China's coal consumption in 2021 was 5.2 billion tons, and the reduction of 700 million tons of production capacity that year also shows the country's determination to rectify the coal industry.

In Li Weidong's impression, the next wave of coal mine renovation work will begin at the end of 2004.

At that time, the Office of the Work Safety Commission of the State Council promulgated the "Emergency Notice on Strengthening Coal Mine Safety Supervision and Management and Further Improving the Closure and Rectification of Small Coal Mines."

This emergency notice caused fundamental changes in the management system of the domestic coal industry.

In the era of planned economy, coal mines were all state-owned or collectively owned. At that time, the main emphasis was on production standards. "Industry management, labor union supervision, and labor department inspection" were the production policies of the coal industry at that time.

After the reform and opening up, enterprises have more autonomy, so the production policy of the coal industry has become the policy of "enterprise management, state supervision, and labor union supervision".

However, except for large state-owned coal mines, how can there be such a thing as a labor union in other coal mines? There are countless small and medium-sized coal mines, and the state has no way to supervise them one by one.

Therefore, after the emergency notice in 2004, the production policy of the coal industry also changed to "national supervision, local supervision, and enterprise responsibility."

This also means that the responsibilities related to coal production are delegated to local governments and enterprises. If problems occur in coal mines, local governments will be responsible for adverse supervision.

After this emergency notice was issued, various localities began to act quickly and shut down a large number of small and non-compliant coal mines. The closure of three to four thousand coal mines in major coal-producing provinces a year happened during that era.

However, those small coal mines are prone to resurgence. When the supervisors come, they close the mines. Once the supervisors leave, they reopen the mines for production. Without production procedures, they turn into unlicensed black coal mines and start operations secretly.

Formal coal companies certainly cannot do this and must still produce in accordance with national regulations.

"It seems that it is imperative to improve production efficiency and recovery rate!" Li Weidong sighed.

Zhao Jinshan continued: "Brother Li, we are now as good as the forest wind. We have bought too many coal mines at the bottom in the past two years. At that time, these coal mines were not loved by grandma and uncle, but now they have become

Fragrant buns.

Nowadays, all the major coal companies are staring at us! They are eager for us to have problems. If the country really starts to rectify the coal industry on a large scale, we will definitely be the first to receive inspections from relevant departments.

If our coal mines really fail to meet the country's production requirements, those large coal companies will definitely come to take a bite, and it will be us who suffer in the end. So our coal mines must improve production efficiency as soon as possible."

Dongshan Mining's bargain hunting in the past few years was indeed too ruthless. For this reason, Li Weidong and Zhao Jinshan not only spent all their savings, but also owed a lot of bank loans.

Li Weidong estimated that his round of bargain hunting might lead to one of the top twenty coal companies in the country. Shanxi coal bosses would also lose one to two hundred people because of this bargain hunting.

Nowadays, the price of coal has risen, and those coal mines that no one cared about back then have become money printing machines.

Therefore, Dongshan Mining will inevitably become the target of public criticism in the coal industry.

If the coal mines under Dongshan Mining cannot meet national production standards, then these coal mines will not be closed, but will be "joined up" or "rectified" by other coal companies. To put it bluntly, they will be annexed.

And those large coal companies have technology, and they can use their technology to quickly increase production efficiency. The coal mines of Dongshan Mining have become their money printing machines.

Therefore, Dongshan Mining maintains low production efficiency and ultimately fails to meet national standards, which is something other coal companies are very happy to see.

Huiyuan Industrial is convinced of this, so it insists on holding 20% ​​of the shares. Huiyuan Industrial believes that if Dongshan Mining does not compromise, it will be divided up by other coal companies in the future.

To put it bluntly, Jinshan Mining's expansion was too brutal and too rapid. It expanded its territory quickly before the foundation was solid. It's okay if there are no problems with this business model, but if there are problems, it is likely to collapse directly.

There are not a few Chinese companies that have directly collapsed due to blind expansion.

Only Zhao Jinshan asked: "Brother Li, as far as I know, improving production efficiency and recovery rate is not something that can be accomplished in a short time. We have so many coal mines, and I'm afraid it will take about two years."

, which means we must start this work as soon as possible.

Otherwise, we should agree to Huiyuan Industrial’s conditions! Anyway, we won’t lose money on this deal. Selling 20% ​​of the shares can also raise some funds to repay the loan. This is better than being swallowed up by other coal companies if production fails to meet the standards in the future.

It’s much better to drop it!”

"But we could have made more, but I don't want to agree to Huiyuan Industrial's conditions unless absolutely necessary. After all, in coal mining, if you don't make money, you will lose money!"

Li Weidong frowned and then said, "Apart from Huiyuan Industrial, is there no one else who can help us improve our technology?"

"Those big coal companies are like a mirror in their hearts! If we ask them to help, I'm afraid they will offer a higher price than Huiyuan Industrial!" Zhao Jinshan replied.

Li Weidong pondered for a moment and then said, "Actually, I have thought of a backup plan. I don't know if it can work!"

"What backup plan?" Zhao Jinshan asked immediately.

"Since we can't find suitable talents at home, why don't we go abroad to look for them?" Li Weidong smiled and then said: "There is a saying that foreign monks can chant sutras!"

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