Rebirth of the Industrial Tycoon

Chapter 647: The Foreign Monk Can Chant

Zhao Jinshan thought that Li Weidong didn't know Huiyuan Industrial Group, so he introduced: Huiyuan Industrial started as an import and export trade of machinery. Back then, their business was very big. In the early 1990s, it was You can get a foreign exchange quota of 70 to 80 million U.S. dollars.

When it comes to import and export trade, Li Weidong can't help thinking of Xiao Yuanzheng back then. At that time, it was not ordinary people who could do this business.

In the early 1990s, when the country's foreign exchange was still relatively tight, it was an unusual background to be able to obtain a foreign exchange quota of 70 to 80 million US dollars.

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

That's right. This company has quite connections in the petroleum system. Zhao Jinshan didn't explain much, and went on to introduce: Later, the country partially liberalized coal prices, and Huiyuan Industrial also started to enter the coal field at that time.

At that time, the price of coal was soaring, and Huiyuan Industry made a lot of money. During this period, it also merged many state-owned or collective enterprises, and began to develop into the field of liquefied natural gas and coal chemical industry.

Coal prices plummeted in 1998, and Huiyuan Industrial, like us, bought a lot of coal mines, but they were not as calm as we were. In 2000, when the price of coal fell to the bottom, they couldn't help but sold a number of relatively small coal mines, and some of them were still taken away by us.

However, Huiyuan Industry still has a few large mines. Those technical teams are still there. After all, they have been in the coal business for ten years, and they have merged some state-owned enterprises during the period. They have the old background of state-owned enterprises and are capable. Provide technical support.

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

Is this because you feel that the previous coal mine sold at a loss, and you came here to make up for it? Li Weidong said with a smile.

Judging from the current coal price, those coal mines must have sold at a loss. It is normal for Huiyuan Industry to seek compensation from other places. Zhao Jinshan replied.

But with 30 shares, some lions will open their mouths. Li Weidong continued.

I calculated that the recovery rate of most of the mines in our hands is between 20 and 30. If we have the technology provided by Huiyuan Industry, the recovery rate can at least be raised to more than 60. Even if it is less than 30% Dividends on the shares, but when calculated, our profit is obviously more than it is now.

Zhao Jinshan went on to say; What's more, the 30% of the shares are not given away for free. Huiyuan Industry must spend more than a billion or two billion! We both made a lot of money if we split the money!

Li Weidong shook his head: Brother Zhao, you can't do this calculation. What if the price of coal continues to rise? After two or three years, you might be able to make a profit of 120 yuan by digging a ton of coal. You can earn more than two billion in a month!

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

At least 30 is impossible. Li Weidong continued firmly: If Huiyuan Industry is willing to provide technical support, I will accept selling him 10 shares at most.

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

So Zhao Jinshan went on to say: Then I will talk to Huiyuan Industrial and try to reduce the shareholding to below 10!

In the fitness club of a star-rated hotel, Zhao Jinshan was holding a table tennis racket and standing in front of a table. Opposite him was a thin man with a short stature, but he looked very sharp.

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

In terms of table tennis skills, Zhao Jinshan was obviously not Sun Chongxin's opponent, and he was defeated after a few shots.

No way,

I can't beat you! Zhao Jinshan waved his hand, expressing that he wanted to take a rest.

Sun Chongxin also put down his racket, and said with a smile: Mr. Zhao, you usually exercise more. Look at your belly, it's protruding a lot!

The two walked to the seat next to them and sat down, picked up a towel to wipe off their sweat, opened a bottle of mineral water each, and chatted while drinking.

Mr. Sun, I really can't promise you the 30 shares. Dongshan Mining is not a company owned by me alone. There is another shareholder. You must know him. He is Li Weidong from Xiaogou Electric. We discussed it , I think 30 shares is too high. Zhao Jinshan said.

It's not that I don't give money. I will purchase according to Dongshan Mining's valuation and market price. You will definitely not lose money, and you may make a lot of money. And after you get technical support, coal production will increase significantly. increase, the final profit will be more than it is now. Sun Chongxin said with a smile.

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

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

5! Zhao Jinshan did not directly report the bottom line of 10, which is also convenient for the next negotiation.

That's too little! Sun Chongxin shook his head, and then said; I can lower it by 5 and buy 25 of your shares.

The two sides began a series of bargaining, and finally talked about 20, Sun Chongxin refused to lower it.

Seeing that the negotiation seemed to be at an impasse, Sun Chongxin stretched out his hand to the assistant next to him. The assistant hurried over and handed a thick document to Sun Chongxin.

Mr. Zhao, this is a photocopy of the latest meeting minutes. Please read it first and return it to me after reading it! Sun Chongxin handed the document to Zhao Jinshan.

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

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

This Sun Chongxin really has a lot of contacts, and he was able to get this kind of meeting minutes. Zhao Jinshan thought to himself, and he also understood why Sun Chongxin had to return it after he asked him to read it.

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

Is the country going to close and rectify the small coal mines? 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 Mine and Coal Mine Safety Production Work, which is the No. 68 document last year.

However, this year, the demand for coal has begun to increase rapidly, and the price of coal has also risen sharply. Instead, there are more and more small coal mines in the local area.

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

So this meeting is discussing, while ensuring that the national economy is not affected, small coal mines will be gradually phased out, other coal mines will also be rectified, and coal mine safety production will be gradually strengthened.

Zhao Jinshan pondered for a moment, and said, This is good news for Dongshan Mining. The coal mines we know about mining are not small coal mines, and we will update a batch of new equipment recently, and at the same time increase Capital investment in safety production. If the small coal mines are rectified, wouldn’t our coal be sold better!”

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 shutdown.

Sun Chongxin smiled slightly, and continued; Although some coal mines are not small in scale and output is not low, their collection efficiency is very low, and the recovery rate is very low.

The continued existence of such coal mines will not only cause a large amount of waste of resources, but also seriously damage the ecological environment, and even cause irreversible and serious consequences. Therefore, this type of coal mine also needs to be gradually shut down.

As far as I know, the coal mines of your Dongshan Mining, except Taifeng and Taisheng two big mines, and a few coal mines, the recovery rate is 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 starts to step up rectification efforts, most of your coal mines will definitely be listed in the ranks of closure and rectification.

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

Mr. Zhao, even if you start to increase the recovery rate now, it is just enough time to deal with the gradual rectification of coal mines by the national team. Calculated in this way, there is not much time left for Dongshan Mining!

After hearing Sun Chongxin's words, Zhao Jinshan suddenly became nervous.

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

The 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 procedures.

However, a serious coal production enterprise like Dongshan Mining must conscientiously implement the country's policies. If the state requires coal mines to be shut down, they must be shut down, and it is impossible to secretly carry out production.

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 state in the future.

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

Li Weidong patted his forehead subconsciously, 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 made by Li Weidong. He only remembered that the state would rectify those small coal mines with low output, so when buying bottom coal mines, 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 the rectification of small coal mines, coal mines with low production efficiency were also included in the ranks of rectification.

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

As early as 1994, the state designated the cross policy of support, reform, rectify, unite, and improve for the coal mining industry. These ten words are all about improving the production efficiency of coal enterprises.

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

In 2021, China's coal consumption will be 5.2 billion tons, and the production capacity of 700 million tons will be cut that year, which 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 start at the end of 2004.

At that time, the Office of the Work Safety Committee of the State Council promulgated the Urgent Notice on Strengthening Coal Mine Safety Supervision and Management and Further Doing a Good Job in Closing and Rectifying Small Coal Mine.

And this urgent notice has caused a fundamental change 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, production regulations were mainly emphasized. Industry management, trade union supervision, and labor department inspection were the production policies of the coal industry in that era.

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

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

So after the emergency notice in 2004, the production policy of the coal industry has also become national supervision, local supervision, and enterprise responsibility.

This also means that the responsibilities related to coal production are lowered to the localities and enterprises. If there is a problem in the coal mine, the local government should bear the responsibility for unfavorable supervision.

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

However, those small coal mines are prone to resurgence. When the supervisors come, they will close the mines. Once the supervisors leave, they will reopen the mines and resume production. If there is no production procedure, it will become an unlicensed black coal mine and start working secretly.

Formal coal enterprises certainly cannot do this, and still have to 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 a tree that will be destroyed by the wind. In the past two years, we bought too many coal mines. Back then, these coal mines were not loved by grandma and uncle, but now they are all Fragrant buns.

Nowadays, all major coal companies are staring at us! They want 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 big coal companies will definitely come up to take a bite, and we will be the ones who will suffer in the end. Therefore, our coal mines must improve production efficiency as soon as possible.

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

Li Weidong reckoned that he might be able to copy a top 20 coal company in China with his bottom-hunting. The Shanxi Coal Boss will also lose one or two hundred people because of this bottom-hunting.

Nowadays, the price of coal is rising, and those coal mines that no one cares about in those years 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 the national production standards, then these coal mines will not be closed, but will be jointly or rectified by other coal companies, or to put it bluntly, they will be annexed.

And those big coal companies have technology, and they can quickly improve production efficiency by using their own technology. The coal mines of Dongshan Mining have instead become their money printing machines.

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

Huiyuan Industry is also determined by this point, so it will not let go of the 20 shares. Huiyuan Industry believes that if Dongshan Mining does not compromise, it will be divided up by other coal enterprises in the future.

To put it bluntly, the expansion of Jinshan Mining was too brutal and too fast. The foundation was not yet solid, so it quickly expanded its territory. It’s good that there are no problems with this business model, but once there is a problem, it is likely to collapse directly.

There are not a few Chinese companies that collapse directly because of blind expansion.

I only heard Zhao Jinshan ask: Brother Li, as far as I know, improving production efficiency and recovery rate is not something that can be completed in a short period of time. We have so many coal mines, I am afraid it will really take about two years. , that is to say, we must start this work as soon as possible.

Otherwise, let's agree to Huiyuan Industry's conditions! Anyway, we won't lose money on this transaction. By selling 20% ​​of the shares, we can get back some funds to repay the loan. This is much better than being swallowed up by other coal companies if the production fails to meet the standards in the future!

But we could have earned more. I don't want to agree to Huiyuan Industrial's conditions unless we have to. After all, if you don't earn money, you lose money!

Li Weidong frowned, and continued, Aside from Huiyuan Industry, is there no one else to help us improve our technology?

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

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

What backup plan? Zhao Jinshan asked immediately.

Since we can't find suitable talents in China, why don't we look for them abroad? Li Weidong smiled, and then said: There is a saying that foreign monks can chant scriptures!

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