Cutting-edge technology: Starting with individual stealth equipment

Chapter 96 Company Cash Dividends and the Construction of Private Super Estates

After Zhou Chengyue took his leave, Lin Chuan turned and entered Jiang Miaolan's office.

He walked to Jiang Miaolan's desk, glanced at her, and asked, "When will the annual report be released?"

Jiang Miaolan replied, "Not that fast."

Lin Chuan nodded, then asked, "What is the estimated net profit for the entire year of 2012?"

Upon hearing this, Jiang Miaolan thought for a moment and then replied, "It's estimated to be in the range of 30 billion to 35 billion."

Last year, DeepBlue Technology signed a total of 210 billion yuan in "plastic-eating bacteria" business contracts with three Middle Eastern countries and South Korea's SK Group.

However, all of them were five-year long-term contracts, and the money was not paid to DeepBlue Technology in one lump sum.

Another factor was the launch of the company's new headquarters construction last year, with a total investment budget of 80 billion yuan. Lin Chuan did not hold back accounts receivable or require contractors to advance funds.

Some of these expenses need to be included in the current period's financial statements.

Direct expenditures for the main construction projects such as new headquarters office buildings and factories, including building materials and project costs, are initially recorded in the "Construction in Progress" account and do not affect current profit or loss.

Once completed and ready for use, it is transferred to the category of fixed assets.

Depreciation will be accrued in installments over the useful life and gradually included in the profit and loss of each period, reflected in the financial statement expenses of the corresponding period.

Expenditures that do not meet the capitalization criteria are directly included in the current period's financial statements.

The portion included in last year's financial report mainly consisted of daily management expenses during the construction period, which lowered last year's net profit.

"A net profit of 30 to 35 billion yuan, huh?" Lin Chuan pondered for a moment and immediately made a decision: "Then let's distribute 17 billion yuan as dividends this time. You start to draft a specific plan, bring it up at the board meeting later, and then submit it to the shareholders' meeting for review and voting."

Jiang Miaolan nodded: "Mm."

For listed companies, the necessary procedures must still be followed in accordance with regulations.

However, there will be no resistance. Lin Chuan is the actual controller and largest shareholder of DeepBlue Technology, and the founding team, Su Qingyue, and the equity held by the seven major investment institutions have all signed a concerted action agreement with him.

Lin Chuan has absolute control over Deep Blue Technology, and if he wants to approve something, he is 100% certain that it will be approved.

Conversely, what he opposes will absolutely not pass.

The company will distribute cash dividends every year from now on, which was Lin Chuan's plan from the beginning.

Without a doubt, as the company's largest shareholder, Lin Chuan is the biggest beneficiary of any dividend distribution.

He will receive the most cash dividends this time, around 620 million yuan. Individual shareholders of listed companies who have held shares for more than one year are temporarily exempt from personal income tax on dividend income. However, this policy will not be implemented until September 2015.

Currently, a 10% dividend tax is also required.

After deducting dividend tax, Lin Chuan's actual net cash receipts were approximately RMB 5.586 million.

As the company's second-largest shareholder, Su Qingyue holds 12.63% of the shares and will receive approximately 2.14 million yuan in dividends this time.

The 15 founding team members, including Jiang Miaolan and Zhang Wei, each hold 0.702% of the shares, and each will receive 1193.4 million yuan.

The company has reserved approximately 1.79 million yuan for equity incentives, and this dividend will not be included in the specific distribution.

The seven major investors each hold 3% of the shares, and each institution can share 5100 million yuan.

In addition, Shenhong Group holds 3.08% of the shares and will receive 5236 million yuan.

The remaining 80,000 retail shareholders and institutional investors in the secondary market will receive approximately 100 million yuan.

Half an hour later, the board of directors of DeepBlue Technology completed the drafting of a preliminary dividend plan.

Around 19:20 PM that evening, the announcement was released to the public, titled "Xin'an Shenlan Technology Co., Ltd. 2012..."

Announcement of Annual Dividend Plan and Convening of the First Extraordinary General Meeting of Shareholders in 2013.

DeepBlue Technology Co., Ltd. (hereinafter referred to as "the Company"), in light of its 2012 operating results and future cash flow plans, and in order to further enhance shareholder returns, increase shareholder satisfaction, and boost market confidence in the Company's long-term development, has formulated a cash dividend plan for 2012 after thorough research by the Company's Board of Directors.

本次分红以截至2012年12月31日公司总股本63.29亿股为基数，向全体股东每10股派发现金红利人民币2.686元（含税），本次拟派发现金红利总额共计人民币17亿元。

This distribution of equity will not include bonus shares or capitalization of reserves; the remaining undistributed profits will be carried forward to the next fiscal year.

The funds for this dividend distribution come from the company's distributable profits for 2012, which complies with relevant requirements of laws and regulations, the company's articles of association, and the company's shareholder return plan.

As soon as the announcement was released, investors in the secondary market were immediately unsettled, with some even placing overnight orders to sell off their entire holdings.

If disclosed a month earlier, it would most likely stimulate DeepBlue Technology's stock price to hit a new high.

However, the same thing is now being interpreted by the market as a major negative, with the market believing that DeepBlue Technology's management is very likely to think that the future prospects of the "plastic-eating bacteria" business are not optimistic.

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Now that we've made money, let's quickly divide it up and secure our profits.

Amid panic, DeepBlue Technology's stock price plummeted to its daily limit at the opening of trading the following day, and continued to fall, constantly hitting new lows.

It has to be said that the capital market changes faster than turning the pages of a book.

Just a while ago, DeepBlue Technology was a hot commodity in the eyes of investors, but then the discovery of a so-called "Osaka Bacteria" that can eat plastic overseas scared the capital market to death.

In the blink of an eye, the fragrance became a hot potato, to the point that even DeepBlue Technology's 2012 dividend of 17 billion yuan was regarded as a major negative factor.

Ultimately, it's simply a lack of confidence within the capital market itself.

Essentially, the market has raised expectations for DeepBlue Technology too high, and the funds are too greedy, wanting to exhaust the potential for DeepBlue Technology's stock price growth over the next five or even ten years in just one month.

As a result, the slightest external disturbance causes widespread panic.

However, Lin Chuan paid no attention to the dramatic fluctuations in Deep Blue Technology's stock price. At this moment, he was already thinking about the private super estate that he planned to build this year.

Career is important, life is important, and Lin Chuan manages to do both without neglecting either.

The Zichen Bay Villa where Lin Chuan currently lives is already the most luxurious residence in Xin'an City, but he still feels that the supporting facilities are not perfect enough.

The space was too small; there wasn't even a proper stage to appreciate the girls' graceful dance moves.

Zichen Bay Villas during the Spring Festival holiday.

At this moment, Lin Chuan is planning his private estate at home: "Let's name it Qingwu Forest Garden."

Shen Yuxin and Jiang Miaolan sat next to him.

Neither of the two women spent the Spring Festival in their hometown this year, nor did Song Wanqing and Zhong Chuliu; they all spent the Spring Festival in Xin'an City.

After a while, Jiang Miaolan asked curiously, "How big of an area are you planning to cover?"

Lin Chuan thought for a moment and said, "It's about 5000 mu in size."

Upon hearing this, the two women were immediately taken aback.

Shen Yuxin couldn't help but say, "Senior brother, isn't 5000 mu a bit too exaggerated? And as far as I know, it's almost impossible to legally build a thousand-mu-scale pure private manor in China. It's simply impossible to get approval."

Upon hearing this, Lin Chuan smiled and said, "Therefore, we need to combine the compliant land use with the path of commercial development, avoiding permanent basic farmland and arable land red lines, and then apply for approval under the name of a high-end leisure and cultural tourism resort project."

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This is almost the only compliant path in China that can achieve the large-scale development of high-end manor-style properties.

Since it is a commercial, cultural, tourism and resort area, it needs to be opened and operated to the public in accordance with the reported business operations and meet the requirements of the project's business attributes.

In theory, anyone can come here to spend money.

Lin Chuan is certainly free to spend money here for vacation, and he can do so long-term.

The difference is that this way of playing is very expensive and not cost-effective.

However, for Lin Chuan, he doesn't need to consider cost-effectiveness; high expenses don't put any pressure on him.

Lin Chuan looked at the two women and said, "Let's build a cultural tourism estate that integrates private residences, high-end business receptions, and leisure. This is in full compliance with the requirements of national land use and industrial planning."

Over the next few days, Lin Chuan began to plan and lay out the overall framework of "Qingwu Forest Garden".

The location was chosen in the eastern district of Xin'an City, avoiding permanent basic farmland.

DeepBlue Technology's new headquarters is located here. Dongcheng District is not only easy to acquire land, but it is also only a 15 to 20 minute drive from the company's new headquarters, making the commute to the company short.

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The total area is approximately 5000 mu, with the core private manor residential area covering approximately 300 mu.

The development adopts a "point-based land supply" model, with only 300 mu of residential building land subject to construction land transfer.

In terms of core features, it includes independent private courtyards, dance halls, theaters, hot spring pools, reserved spaces for private helipads, exclusive butler rooms, private organic vegetable gardens, and more.

The design concept adopts a low-density layout, with the buildings integrated into the local natural landscape and preserving the original vegetation to achieve the effect of "courtyard in the mountains and house in the forest".

As a commercial and cultural tourism project, it is also necessary to provide high-end service facilities to meet reception and business needs.

It needs to have features such as a private high-end clubhouse, a custom-made private kitchen restaurant, a boutique hotel, a private wine cellar, a business conference center, and an outdoor infinity pool to meet the owner's needs for private receptions and small high-end business meetings.

Then there is the ecological leisure area, which covers an area of ​​about 2000 mu.

Preserving the original natural landscape and creating leisure scenes aligns with the project's cultural and tourism attributes.

In terms of core features, Linchuan has planned a mountain-encircling leisure trail, a forest yoga platform, an organic tea garden, a Chinese herbal medicine planting and sightseeing garden, a mountain bike path, a mountaintop viewing platform, and more.

The ecological agriculture supporting area covers an area of ​​approximately 500 mu, retaining the agricultural land attributes and creating organic agricultural support facilities.

It includes functions such as organic rice paddies, specialty fruit and vegetable gardens, ecological pastures, and reservoir fishing areas.

These facilities can supply organic ingredients to the estate and also facilitate small-scale agricultural experience activities, meeting the requirements of a diversified business model that combines agriculture, culture, and tourism.

Then, the original forests and wetlands in the area will be preserved without development, which will not only meet the requirements of ecological protection, but also reserve natural landscape space for the manor.

The last area is the supporting area of ​​the wildlife park, covering more than 2000 acres. It integrates animal protection, science education, and leisure tourism, providing exclusive living facilities for the manor owners while also promoting the project's business requirements as a commercial and cultural tourism project.

The inclusion of this large wildlife park in Linchuan also serves another purpose: to reduce public criticism and condemnation.

As the saying goes, "He who eats another's food is bound to do his bidding, and he who takes another's money is bound

Once the zoo is built and put into operation, a symbolic entrance fee will be charged.

Each ticket costs three or five yuan, and prices for various items inside the venue are also kept low.

They maximize the cost-effectiveness, focusing on an affordable price so that the general public can enjoy some of the benefits.

In particular, it is important to make the public believe that if Lin Chuan were not so luxurious, they would not be able to enjoy a zoo ticket that costs only three yuan.

You should know that tickets to Chimelong Safari Park cost two or three hundred yuan each.

The wildlife park that Lin Chuan plans to build is of an even higher standard, and the other consumer attractions within the park also offer excellent value for money.

Even if they continue to subsidize the business and operate at a loss, they will not raise prices and will always maintain affordable prices, allowing the public to have a consumption experience that is several times more valuable than the ticket price. The public will not be able to complain even if they want to.

President Lin is so wicked and childish, he actually used sugar-coated bullets on the people.

It is foreseeable that if someone criticizes or starts arguing, there will inevitably be more netizens arguing back.

Are you kidding me? If it shuts down, where are we supposed to find a zoo where we can experience hundreds of dollars worth of admission for just a few dollars? Where are we supposed to find a hotel where we can stay for hundreds or thousands of dollars a night for a hundred dollars? You just can't stand seeing people benefit, can you?

Lin Chuan spent about five days finalizing the overall plan for "Qingwu Forest Garden".

At this moment, Jiang Miaolan glanced at the draft plan: "According to your plan, the first phase of the project alone will cost more than 30 billion yuan."

The development is being carried out in three phases. The first phase will complete the construction of the road network, clubhouse, and residences in the core residential area. Once the first phase is completed, the basic conditions for receiving and moving in will be met.

Jiang Miaolan looked at Lin Chuan and said, "I estimate that the entire project will require an investment of at least 30 billion yuan. Just the zoo project alone, based on your specifications, can basically be considered the top zoo in the country. The budget for that alone will be over 10 billion yuan."

At this point, Jiang Miaolan added, "Of the dividends this time, you only received a little over 500 million yuan, which isn't even enough to cover the land acquisition costs."

Lin Chuan smiled and said, "Money is not a problem. I plan to use equity pledging to find a bank or securities firm to provide a cash flow in advance."

Equity pledging is not the same as selling stocks to cash out; it is a financing guarantee method that allows for the provision of cash flow in advance.

Of course, interest will be charged, but Lin Chuan obviously doesn't care about that little bit of interest.

Upon hearing this, Jiang Miaolan looked at him with suspicion: "The shares under your name are still in the lock-up period, so they can't be pledged, right?"

Neither banks nor securities firms will accept pledges of shares that have not yet been released from lock-up.

The risk is too high because it cannot be quickly disposed of and converted into cash.

DeepBlue Technology went public through a reverse merger in May 2012. Lin Chuan, as the controlling shareholder and actual controller of the company, had a 36-month lock-up period for his shares.

To meet the collateral requirements, the restrictions will not be lifted until May 2016.

"Who said I was going to pledge my own shares?" Lin Chuan looked at Jiang Miaolan, then added, "Senior Sister's is fine."

Su Qingyue currently holds 12.63% of the shares in Shenlan Technology. She is not the controlling shareholder or the actual controller, and the shares she holds have a lock-up period of 12 months.

In other words, the lock-up period will expire in May of this year, and she can then pledge her shares.

Lin Chuan said with a smile, "Senior Sister has 12.63% of the shares. If she pledges 5% or 10%, it will be enough to cover the funds needed for the first phase of the project."

Just as the two were discussing this matter, Su Qingyue arrived at the Zichen Bay Villa.

Upon entering the house, he saw Lin Chuan and Jiang Miaolan sitting on the sofa in the living room, and then walked over.

Su Qingyue sat down next to Lin Chuan, glanced at him with a half-smile, and said, "Let's not call this place Zichen Bay anymore, it would be more appropriate to rename it Pansidong (Spider Cave)."

Upon hearing this, Jiang Miaolan couldn't help but chuckle.

Clearly, Su Qingyue also saw Song Wanqing and Zhong Chuliu when she entered the villa. The mansion was quite lively now, as none of them had gone home for the New Year.

"What is this?"

Su Qingyue noticed the draft plan for "Qingwu Forest Garden" on the table.

Jiang Miaolan replied, "He plans to acquire a plot of land in the Dongcheng District to build a super estate. This is the preliminary plan, and we were just discussing funding issues, and he needs your help again—"

Upon hearing this, Su Qingyue picked up the plan and opened it for browsing.

After reading it, she turned to look at Lin Chuan and asked, "Are you sure you want to go this far?"

Lin Chuan nodded and said succinctly, "Let's get started this year."

Su Qingyue put the materials aside and gave Lin Chuan a deep look: "You brat, you really know how to enjoy yourself."

Lin Chuan smiled and said, "Only by openly indulging in pleasure can one live a peaceful and stable life. The bigger your business grows, the more you should do this. As a super-rich man, you don't crave beauty or indulge in pleasure. Are you thinking of gilding your own image? What are you planning to do? What do you want to do?"

Upon hearing this, Jiang Miaolan looked at Lin Chuan with suspicion: "Is that so? But why does it sound like an excuse?"

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Lin Chuan calmly replied, "Don't worry about that."

Jiang Miaolan rolled her eyes at him.

After the brief interlude, Su Qingyue said, "With such a large plan, I don't have enough cash flow to help you manage it."

Lin Chuan immediately said, "Won't your DeepBlue Technology shares be released from lock-up in three months? Pledge a portion of them to generate cash flow, and then lend them to me."

Su Qingyue pondered for a moment, then looked at Lin Chuan: "Then let's do this: you don't need to set up any new one-person company. I'll take the plan, and I'll arrange for a subsidiary of Shenhong Group to do this project. You can just come and consume. This way, it's more compliant."

Su Qingyue added, "However, according to your operational requirements, this project will not only fail to make money, but will also face a net loss of more than 500 to 600 million yuan every year, or even a loss of 1 billion yuan a year. Shenhong definitely cannot afford to lose that much money. You need to solve the problem of subsequent operating costs."

Lin Chuan immediately made the decision: "This is a good idea. Let Shen Hong do it. It would be best if it could break even. If not, I will make up for the losses for Shen Hong and continue to inject funds through equity financing."

The operational strategy was for Lin Chuan to give the subsidiary operating the project a very high valuation, and then raise funds for it separately.

Once the funds raised are almost used up, another round of financing will be conducted, and so on, continuously raising funds to inject capital.

With just a few adjustments, the matter was finalized, and the project was handed over to Shenhong Group to proceed.

In this way, Lin Chuan felt even more relaxed.

They are just waiting for the first phase of the project to be completed and meet the standards for receiving and moving in, so they can move in directly as consumers.