Those Years When I Was Forced to Top the Forbes List

Chapter 192 Restructuring Stocks?!
Leader Huang led them to the next room and went out to whisper a few words to his secretary.

The secretary left, but he didn't come in immediately; he waited in the corridor.

I waited for a full 20 minutes.

During this time, Leader Huang did not come in to say a single polite word to them. He just stood there in the corridor, and the atmosphere became serious in silence.

If you say he's arrogant, then why is he standing outside while everyone else sits?

He didn't enter the office until his secretary returned, carrying a document with him.

The secretary also distributed a document to each of Chen Xuebing and his group.

"Take a look. This is the information about BOE that I sent people to investigate and submit to the municipal party committee and government. The reason why we gave up on BOE is right here."

As he spoke, Leader Huang walked over to the sofa and sat down, taking a look at the documents in his hand.

Judging from its thickness, Chen Xuebing realized it was clearly different from what he and the others had received.

He had a thick stack of documents, while the other had a thin stack.

Please read through it carefully. This document, over 20 pages long, contains information on the advanced generations of TFT-LCD production lines worldwide, domestic price trends, and BOE's current development status.

Chen Xuebing was the first to finish reading it, and he figured out the clue in just five minutes.

The previous section used several pages to discuss the differences between Sharp's most advanced 8th generation line and its 6.5th generation line, and concluded that BOE is very good, but we can wait a little longer.

"Leader Huang, do you mean we should wait until they have the technology for 7.5 to 8th generation production lines before investing?"

Leader Huang shook his head, speaking much more directly than the documents suggested:

"They are less than half a generation behind the most advanced production lines. If they have an 8th generation line, the world already has 9th generation lines, or even 9.5th generation lines, then they are all unqualified."

Chen Xuebing frowned: "They already possess advanced productivity in China, and have even broken the monopoly on 'no LCDs in China.' With this kind of technological capability, what's there to wait for?"

"Of course we have to wait." Leader Huang patted the armrest of the sofa: "Otherwise, if we rush into it and create an industrial cluster, and BOE fails, it will be irresponsible to the supporting small and medium-sized enterprises."

Chen Xuebing scoffed: "Once they all become the world's advanced productive forces, what will Chongqing have to do? Will BOE even come back?"

"Yes, we will, as long as we are willing to fight for it."

Leader Huang spoke with certainty, revealing a sly smile: "BOE is a state-owned enterprise under the Beijing State-owned Assets Supervision and Administration Commission. It has already received excessive support in Beijing and cannot invest any more. Shanghai and Shenzhen are both in contact with Sharp's 8th generation line. For such a large-scale investment, there are not many cities in the country that they can choose from."

Chen Xuebing was furious.

Sure enough, they had inside information.

He really couldn't argue about this.

Ten years later, they did come, and it was Yufu Capital that invested in them.

But Hefei, which dared to be a pioneer at that time, was the biggest beneficiary. It showed the courage to go bankrupt and became a benchmark for chip industrial parks, and the IC industry gradually grew from nothing to something.

Chongqing was merely catching the second train, and related industries did not gravitate towards it.

His body, which he had been holding up with all his might, slumped down, and he sighed.

No wonder the four municipalities have never had a benchmark industry in terms of high-tech competitiveness; their industries are large but not strong.

They held their heads too high, looking down on ordinary industries. By the time they tried to win them over after they had already established themselves, it was too late.

The key difference is that Beijing and Shanghai at least have the siphon effect of higher education institutions and economic and political status, which have accumulated a large number of scientific research talents. Tianjin, on the other hand, has an extremely strong historical foundation and is barely affected by Beijing's influence.

They have the confidence to back it up.

And what about Chongqing?

At this moment, Kan Zhidong, who was standing next to Chen Xuebing, noticed Chen Xuebing's dissatisfaction, smiled and patted his leg lightly, saying, "Now that we have the funds, we don't necessarily have to follow Chongqing. Go and talk to BOE first. Once we've reached an agreement, I'll introduce you to some local leaders. We can talk slowly, there's always a way."

Old Kan was a man who cared about his reputation. Seeing that they couldn't reach an agreement, he immediately said, "If this place doesn't want me, there are plenty of other places that will."

Chen Xuebing gave a wry smile and shook his head.

He didn't have time to talk slowly.

In its previous life, Hefei invested in BOE, earning billions and also gaining development advantages.

But it took too long, more than a decade.

BOE is known for its rapid production line construction and commissioning. According to his research, with sufficient funds, they can start production within a year.

This stock market boom presents an excellent arbitrage opportunity. The peak is expected before 2008. If an agreement is reached quickly, with exit conditions agreed upon within 18 months, or preferably within one year, then one can exit at the peak of the stock market.

At the very least, the portion of the funds he raised should be withdrawn.

As for whether the government will refund the funds, how much will be refunded, and whether the profits will be used to further cooperate with BOE after the refund, that is the government's decision.

After all, he runs a fund and takes investors' money. In addition to considering the development of BOE and local industries, he also needs to ensure that investors benefit as soon as possible.

Based on this calculation, he doesn't have just a few months. He needs to finalize the investment and shareholding agreement before the stock lock-up period can begin.

Otherwise, if you delay, you might not have the opportunity to sell at a high price for several years after the stock market boom has passed.

I originally thought that the deal in Chongqing was a done deal and there was plenty of time. Even if we couldn't get the lion's share, we could at least get some soup by cooperating with Yufu.

As a result, they firmly decided not to play anymore and planned to save the game and play it slowly later.

But how could he have time to wait?
He now needs a stubborn local government to engage in deep and rapid cooperation.

It seems I really need to make a trip to Hefei.

Chen Xuebing's thoughts were only fleeting when Leader Huang noticed a crucial piece of information that Kan Zhidong had intentionally revealed, and asked a question:

"Funds? How much capital do you have?"

Chen Xuebing snapped out of his daze, noticed the interested look in Leader Huang's eyes, and decided to make one last attempt.

“Leader Huang, I’m not here empty-handed. Bosera Funds has already agreed to raise 500 million yuan for me in Shanghai. If the municipal government cooperates with me, I can guarantee that we can achieve a one-to-one private financing ratio with the government funds.”

"One-to-one? Your private equity fund can now raise such a large amount of capital?"

Having worked in Shanghai for many years, Mr. Huang has had extensive contact with private equity funds and is very knowledgeable about their development and scale.

Originally, this was a group of people pooling their funds to get into the high-stakes trading rooms of exchanges, which were worth millions. It wasn't until the beginning of this century that relevant laws were enacted to specifically regulate it, turning it into a form of asset management for clients.

Many people subconsciously believe that funds must have credibility and binding force, but he knows very well that they do not. Private equity fundraising is purely based on the moral trust between investors and managers.

Trust barriers are a major obstacle to the size of private equity funds.

He knows many private equity managers in Shanghai and is well aware of the difficulties they face in raising funds.

However, precisely because of his prior knowledge, when he heard that this project was in cooperation with private equity funds, he did not keep up with the latest developments in private equity, which led to some blind spots.

Lu Xiaochun quickly coughed lightly: "There are conditions for helping President Chen raise funds. First, there must be project and government funding involved. Second, President Chen must meet certain conditions based on private equity funds."

He needs to make this clear to avoid any misunderstanding from the government.

This comes with a guarantee from Chen Xuebing and his own funds.

As he spoke, he made eye contact with Chen Xuebing, who, knowing his cautious nature, nodded to reassure him.

Leader Huang immediately flipped through the documents in his hand for another two pages and saw some content about "private equity funds".

His expression finally relaxed.

"Third-party oversight and transparency. These things already exist."

Chen Xuebing gradually came into his view. He slowly nodded, made up his mind, closed the documents about Gu'an Group in his hand, and walked out of the office.

Silence again.

Everyone looked at each other in bewilderment. But this time, it wasn't long before Leader Huang returned, followed by He Zhiya, the chairman of Yufu.

After sitting down again, Leader Huang looked at Chen Xuebing and said:

"President Chen, does your Gu'an Group plan to restructure? I'll have Yufu Capital acquire 49% of your shares."

These abrupt words were like a thunderclap.

Everyone in the room was stunned.

Even Chen Xuebing was momentarily stunned: "What?"

Leader Huang smiled, slammed the documents in his hand onto the sofa armrest, like a gavel snapping everyone back to reality.

"Don't think that restructuring is a bad thing. Some restructurings are for escaping difficulties, which is like holding a funeral. Some restructurings are for extraordinary development, which is like holding a celebration. And some normal enterprises can also restructure in order to optimize resource allocation so that one plus one is greater than two, or even greater than three."

“Yufu Capital was created for resource restructuring. Now there is a lack of bridging channels for private capital. I think your team is good. Next, the development of Chongqing’s finance will be the focus of our work. We need to make up for some inconspicuous factor markets in the process of clearing debts for more than 1,000 small and micro enterprises.”

"For example, microfinance companies."

“After careful research, I found that these markets are not suitable for state-owned enterprises. In the process of innovation and reform, we must introduce private forces. We may not hold a controlling stake, but we must have decision-making power.”

"This is a huge opportunity for you."

"If you are incorporated into Yufu Capital, then Yufu Capital and you can work together on BOE's matters in the future."

After saying that, he smiled and looked at Chen Xuebing.

Being brought under the government's control and given core business is definitely a sure-fire way to make money.

Chen Xuebing's face twitched slightly upon hearing this.

Huge opportunity
microfinance companies
Based on the background information provided by Leader Huang and the information he had about Yufu Capital, he knew that this "micro-loan company" was definitely not the kind of "micro-loan company" of later generations. Rather, it was an assisting company that Yufu Capital was handling in one go the bank debts of over 10 billion yuan for thousands of enterprises. It was probably going to support some of these small and medium-sized enterprises through small loans of less than one million yuan.

but.

49% equity stake?
Do you want to hear what you're saying?

Chen Xuebing had been trying to cooperate, but upon hearing these words, he couldn't help but shake his head and give up his last shred of hope.

"Leader Huang, I'm afraid your Yufu Capital is not capable of acquiring me. In addition, Yufu Capital is not currently capable of managing investments in a listed company."

Before he could finish speaking, Kan Zhidong patted him on the shoulder again.

Don't speak impulsively.

If you can't reach an agreement, just leave; there's no need to antagonize each other.

Upon hearing this, He Zhiya looked at Leader Huang and shook his head slightly.

Leader Huang leaned back, the faint smile in his eyes disappearing.

"Don't be arrogant, and don't say hurtful things. Do you even know what kind of company Yufu is?"

Chen Xuebing smiled.

He didn't say anything out of anger, nor did he intend to.

"of course I know."

“In 2003, you negotiated with ICBC to write off their bad debts in Chongqing in one go, buying back bad debts with a principal of 97 billion yuan and interest of 60 billion yuan for 27 billion yuan.”

"ICBC has agreed."

"Then Yufu Capital came into being. You gave Yufu 10 billion yuan in capital, and through a 'deposit one, lend two' model, it borrowed 20 billion yuan from the China Development Bank. The collateral for the loan was this bad debt."

“Yufu is now the creditor of many companies in the city and holds several mortgaged land plots held by these companies. As long as the economy continues to improve and land prices continue to rise, Yufu will continue to thrive.”

"But this does not mean that Yufu has the ability to handle a listed company."

“Yufu is now completely reliant on banks. After taking over that debt, there is no capital to inject. Whenever it invests, it must pledge the acquired shares to the bank. However, the stock price of listed companies fluctuates, which is visible to everyone. Once the stock price drops sharply and triggers the bank's liquidation line, can the government provide additional margin for Yufu? How much risk can it accept? Is it more reliable than our private financing funds?”

Chen Xuebing had been investigating Yu Fu's background, and now he revealed everything, raising a series of questions.

There was a brief silence.

However, this did not lead to any awkward situation.

Leader Huang smiled again.

"If we can't even consider these issues, what's the point of running an asset management company? Even if this situation really happens, the bank won't force a liquidation of Yufu. We can negotiate and ask the bank to wait patiently for two or three years. It's not a problem."

Leader Huang spoke with confidence, then smiled and said to Chen Xuebing in an educational tone: "Restructuring a company must be done by someone with power. Those without power can only dream about it. Secondly, you can't resort to conspiracies or sophistry. You must ensure that all parties involved in the restructuring benefit. Only we can get everyone to comply without resorting to any tricks and achieve a result that satisfies all parties."

He is a master negotiator and is well aware of his absolute advantage.

But these words failed to convince Chen Xuebing at all.

Chen Xuebing patted his leg and stood up.

“Sir, what you’re saying is about the officialdom, not the market. Since I started doing business, I’ve always believed in one principle: to firmly follow the market and not the officialdom. I absolutely respect the market. I think that’s the crux of our thinking. I was abrupt in coming today. I didn’t consider these things beforehand and have taken up your time. I’m sorry, goodbye.”

After he finished speaking, he no longer cared about the other person's expression, nodded politely, and walked out of the office.

Two exclamations, "Eh, eh?", came from behind me, seemingly from the surprised voice of Chairman Yu Fu.

No one expected that Chen Xuebing's departure would seem to have given Leader Huang a scolding.

The other party has not yet been given a chance to refute.

As Chen Xuebing passed by the meeting room next door where people were discussing how to divide the money, he noticed several surprised looks coming from inside.

Chen Xuebing suddenly realized that the office door had been open, the two rooms were next to each other, and he had spoken a little too loudly.

But he was just speaking out for businessmen like himself who have no connections, so he really couldn't control his emotions.

The first to react was Ren Ying, who quickly chased after them, looking somewhat anxious.

"Chairman, you've offended all the leaders. What are you going to do now?"

A flicker of wariness crossed Chen Xuebing's mind, and he chuckled.

"Let's move, so people won't keep an eye on me. Changzheng Capital will move to Shenzhen."

"Huh? What about the engineering company? They just took on this project, they can't leave!"

Chen Xuebing hesitated for a moment, then raised his hand to check the time.

He had considered this question before he decided to leave.

He originally planned to go to Pengshui after the New Year to hold a performance with the county government, and to win the overall development of the cement plant and Chiyou City, so as to promote the comprehensive development of the engineering company from raw material control to large-scale project development.

But now Maotian's trajectory seems to be different from its previous life; it is about to be invested in by Yufu Capital.

Let him join then, and we'll talk to Yu Fu about it later.

Time is of the essence, and he doesn't have the energy to deal with these things right now.

BOE is the real player.

"Never mind all that, let's pack up and head to Anhui."

"what?"

"Anhui, Hefei, bring more clothes, we may be gone for a long time."

(End of this chapter)