The Fourth Lingshi Financial Crisis

Chapter 228 The Art of Valuation
The entry of the Qingning Chamber of Commerce is equivalent to sharing the shares of other members of the consortium, which will definitely cause dissatisfaction among other members of the consortium. However, Su Yuanfeng gave other shareholders an irresistible reason: Li Qingning stands behind Li Qingning, the president of Lingshi Reserve Bank, Li Qingyang. The entry of Ning Chamber of Commerce will greatly enhance the consortium's political leverage!

I have to say that Li Qingyang's banner is really easy to use.

Su Yuanfeng didn't even need to explain the reason clearly, as long as he gave some hints, other members of the consortium would understand.

According to the estimates of the Haiya Chamber of Commerce, with the support of the consortium's strong economic strength and strong political background, there is at least a [-]% to [-]% certainty that this Yangjiang Port equity transfer transaction will be successfully won.And as long as this business is negotiated, it will undoubtedly bring the cooperation between Qingning Chamber of Commerce and Haiya Chamber of Commerce to a higher level.

However, at the bidding stage, Shenhuozong quoted a very unacceptably high price.

Li Qingning stretched out two slender fingers, and said with a bit of displeasure, "Shenhuo Sect is simply greedy. According to their quotation, the return on investment for our acquisition of Yangjiang Port may not even reach 2%!"

However, Yang Lu shook his head disapprovingly: "Shenhuozong is not doing charity, so the quotation will definitely be higher!"

"But this is too outrageous!" Li Qingning's face was full of unreasonable expressions, and he crazily complained about the greed of Shenhuozong, "If you buy shares at this price, the return on investment of Yangjiang Port is even lower than the normal business of Qingning Chamber of Commerce. Not as good. Now even the Haiya Chamber of Commerce is a little hesitant to accept this business. After all, there are many chambers of commerce in Zhongzhou that are not well managed. There is no need to accept the offer from the Shenhuozong. Those foreign chambers of commerce on the island are now becoming hesitant."

And such a thing?
Yang Lu's hand holding the teacup froze slightly, and quickly analyzed the cause and effect of the matter in his mind.

It wasn't until Miss Qing Ning couldn't sit still that Yang Lu asked again: "I heard that the transfer of Yangjiang Port's equity is a major event personally promoted by Tian Daxiao, is that true?"

Li Qingning didn't know why Yang Lu asked this, so he nodded honestly and said, "It's said to be like this!"

Yang Lu put down his teacup slowly, and said in a decisive tone: "Then tell Han Fulai and Su Yuanfeng that we must win this business. If they want to ask, then you can say that I, Yang Lu, suggested this!"

"Why?" Yang Lu answered unquestionably, but Li Qingning couldn't be dealt with. "Why do we have to rush to take over such an outrageous offer? What's more, the Shenhuozong asked our Haiya Consortium to send someone to take over Yangjiang Port." The daily operation and management work, isn’t this asking us outsiders to work for them for nothing? No matter how you look at it, this business is not worth it!”

Seeing Li Qingning's bewildered expression, Yang Lu smiled and asked back: "Miss, do you think it is difficult to manage the port?"

At any rate, Li Qingning also has three years of experience in managing chambers of commerce, so he replied without hesitation: "Actually, it's not difficult. Managing ports and wharfs is more of a cumbersome daily work. It's very easy to lose money even if you want to do business like this. Difficult. But this matter is not easy, after all, it still needs to do a lot of real daily management work, which will inevitably involve a lot of energy."

"That's it!" Yang Lu showed an encouraging smile, and then continued to explain, "Wharf management, port operations, official road maintenance, and leased warehouses are all good businesses that collect rent on the ground, and their management difficulty is much lower. Manufacturing and business. According to the most basic business logic, if the return on investment is the same, all major cultivation chambers of commerce should be inclined to invest in these businesses, but this is not the case, do you know why?"

Yang Lu's question stopped Li Qingning on the spot.

It seems to be the truth!

With a similar rate of return on investment, there is absolutely no need for the major cultivation chambers of commerce to work hard on manufacturing or ocean-going trade.Isn't the franchise business of "I opened this road, I planted this tree" such as dock management, port operation, official road maintenance, and warehouse leasing not good enough?Are you all fools who can't see that it's more comfortable to sit on the floor and collect rent?

"If the return on investment is about the same, it must be more suitable to collect rent from the land than to operate production. In this way, the price quoted by Huoyun Prefecture is still reasonable? But why did no one see such an obvious thing in the past?"

Seeing that Li Qingning had been caught in his own logical trap, Yang Lu smiled and directly announced the answer: "Of course you are not stupid, infrastructure such as ports and docks seem to be able to sit on the ground to collect rent, no matter how good the year is. Whether it is bad or not, it does not affect their own profits, but behind these businesses lies the greatest risk. Think about it, what happened to the official road of Haiya City and the port of Haiya City during the Ascension to Immortals Conference and the Outlying Islands War ..."

Li Qingning suddenly had a flash of inspiration, and suddenly realized: "I understand! You are referring to the policy risk of the Wuliang Sword Sect!"

Compared with Yangjiang Port, Haiya Port, which has a larger cargo flow, should theoretically be more profitable.

Yang Lu once thought that the port of Haiya City and the several official roads connecting Haiya City should be the main source of profit for the Haiya Group, but later he discovered that this might not be the case.

Even in the long run, Haiya Port and Haiya Official Road will make almost zero profit contribution to the Haiya system.

Although ports and official roads are indeed businesses that collect money on the ground, their maintenance and operating costs are not low.

If all affairs of Sea Cliff City can be decided by the Sea Cliff Department itself, and all commercial activities can be carried out normally in accordance with market principles, then there is no doubt that these two infrastructure assets will contribute a lot of profits.However, this is only the most ideal situation, and the real situation is far from it.

It has only been a year since Yang Luman came to the Kyushu Cultivation Realm with all his plans, and the port and official roads of Haiya City have already been shut down once.

The first time was to hold the Immortal Ascension Conference, the ocean trade in Haiya City was temporarily suspended for two months, and even the official road was opened for free to the mortal seekers who flocked here.

The second time was during the Outlying Islands War. In order to ensure that the Haiya Fleet could complete supplies in time and support the Outlying Islands battlefield as soon as possible, the Wuliang Sword Sect directly issued a temporary ban, prohibiting any goods other than war materials from occupying the official road.

However, whether it is the closure of the Haiya Port or the expropriation of the Haiya official road, it is not decided by the Haiya Department itself, but by an administrative order of the Wuliang Sword Sect.During this period, the daily maintenance and management of ports and official roads cannot be stopped, which means that during the period of suspension, these assets will face huge losses every day.

And because of the extremely high fixed costs, as long as this kind of business is shut down for one month, it will take a year to do nothing.This is why infrastructure assets such as docks, official roads, ports, and warehouses seem to be particularly easy to make money, and the return on investment is not bad, but everyone's investment enthusiasm is still not high.
Seeing that Li Qingning understood what he meant, Yang Lu continued to explain patiently: "No matter where it is, the biggest risk of infrastructure assets is political risk, or you can also say contract risk. On the surface, we Cultivation Chamber of Commerce seem to be We are buying ports, but in fact, we are buying the credit endorsement of the forces behind the ports. In other words, we are actually betting that the political forces where these assets are located will respect property rights and the legal system. This is why ports with the same throughput, The valuation of the Zhongzhou port is several times higher than that of the East Barren State port, but there is still no one interested in the East Barren State port!"

Li Qingning also knew about the situation in the Eastern Barren State.

As one of the seven major sects in Kyushu, Guiyi sect, the overlord of Donghuangzhou, is the only overlord sect that has fallen into the quagmire of civil war today.

The monks of Guiyimen's sect and the monks of the world's sect have had a history of killing each other for thousands of years. The two sides have already accumulated blood feuds. Even President Lu Yang came forward to mediate in person, but they failed to end the bloody feud between the two sides.

It is precisely because the Eastern Barren State has been in a state of civil war for a long time that the prices of various local infrastructure assets are as cheap as cabbage. It is often overseas cultivators who have just signed a contract to buy a port. As a result, within a few years, the comprehension forces behind the port are easy to buy. Lord, and then the new cultivator force refused to recognize the contract signed by the previous ruler, directly took over the sold port, and then listed it for sale again to cut leeks.

Under such circumstances, no matter how high the potential income of the East Barren State Port is, no one dares to lick blood.

Although Zhongzhou has maintained peace and stability for a long time, the Wuliang Sword Sect has always been the sword of Damocles hanging in the air.

For example, Tianshu City was severely damaged by the animal disaster. In order to help Tianshu City complete its reconstruction as soon as possible, the Wuliang Sword Sect announced that all caravans transporting building materials to Tianshu City would be exempted from tolls for three years.

However, many of the maintenance and charging work of Tianshu City's official roads have been outsourced to private chambers of commerce by the Shanying faction. As a result, the Wuliangjian faction issued an administrative order. will face huge losses.

Although many Cultivation Chambers of Commerce who suffered heavy losses protested to the Wuliang Sword Sect, Lin Jianxing, the head of the Wuliang Sword Sect, reprimanded him angrily, saying that you, unscrupulous cultivation capitalists who made the country miserable, are you trying to force the common people of Tianshu City to death? ?

When Yang Lu talked about the public case of Tianshu City's official road, there was a hint of sarcasm in his tone.This made Li Qingning a little puzzled and said: "Do you think the Wuliang Sword Sect has done something wrong? I think Lin Jianxing's head is right! The people in Tianshu City have no houses to live in, and these unscrupulous comprehension chambers of commerce continue to operate in the official way. It’s really unreasonable to set up card fees!”

Yang Lu just smiled coldly: "Of course Lin Jianxing is wrong! This is simply nonsense that doesn't understand the basic principles of economics!"

"Why did you say that?"

Yang Lu lightly knocked on the table and said: "The Wuliang Sword Sect exempted the toll, the original intention was to subsidize the Shanying Sect, but this practice itself hurt the reputation of the Shanying Sect. The terrain of the Tianshu Mountains is dangerous, and the Shanying Sect sect The main source of finance is the income obtained from contracting out the official roads of the Tianshu Mountains. If the Wuliangjian faction ignores the interests of the contractors and uses administrative orders to force them to give up profits to the Shanying faction, who do you think will dare to contract the mountain in the future? The official way of the Eagle Faction? In the end, it is the Mountain Eagle Faction and the people of Tianshu City that will be damaged!"

"Then what do you think the Infinite Sword Sect should do?"

"The lesser of the two evils, the Wuliang Sword Sect might as well give money directly to the victims of Tianshu City!" Yang Lu snorted coldly, expressing his own point of view, "However, Lin Jianxing is short-sighted and doesn't understand the value of credit at all. Using the legal system as a tool for the party to fight against dissidents can only be a short-sighted act of generosity to others. In the end, it will damage the interests of the entire Zhongzhou, so that similar assets in Zhongzhou can only be sold for cabbage prices, causing greater indirect damage to the cultivation sects in various places. Loss. Because no one knows whether the assets I bought at a high price will not be counted because of an order from the Wuliang Sword Sect!"

This kind of naked practical economic theory is obviously difficult for the naive and simple Li Qingning to accept immediately.

After thinking about it for a long time, she showed a half-understanding expression, slowly nodded and said: "I understand what you mean, they are also ports and official roads of comparable value, and they can be sold at high prices in places with good credit. Places with bad credit cannot sell at a high price. Due to years of civil wars in the Eastern Barren State, the political credit of the major cultivation forces has become like waste paper, so the assets they are responsible for management are also waste paper, and no one dares to buy them for any amount of money. , and although Zhongzhou is peaceful and stable, because the Wuliang Sword Sect often meddles in local affairs, the credit level of the Wuliang Sword Sect is not high, and the assets cannot be sold at a high price..."

"...that's why I said that what we bought was not the port, but the credit endorsement of the cultivation forces behind the port. Even if it is a port with the same throughput, it is backed by the Shenhuo Sect, the Wuliang Sword Sect, or Guiyi. door, its valuation will be very different." Yang Lu put on a teachable expression, and completed what Li Qingning hadn't finished.

If someone else had educated himself with such an embarrassing expression, Li Qingning would have been impatient.

But now Li Qingning subconsciously regarded Yang Lu as the person he trusted the most, so he didn't feel that there was anything wrong with his preaching tone, but fell into deep thought again.

Yang Lu's theory is also summed up by him after years of hard work in the earth's capital market. Even the rulers and investors of the earth, there are not many people who can see this level. The more Li Qingning thinks about it, the more he feels it. Reasonable, even a little distracted in the end.

This kind of subtlety, the ability to see the essence through the phenomenon in just a few words, she has only felt from her great-grandfather, and now she feels the same quality in Yang Lu, so the way Li Qingning looks at Yang Lu Nothing is quite right anymore.

Yang Lu noticed that Li Qingning was suddenly staring at him obsessively, and couldn't help but blush: Miss, although we are a bit handsome, don't look at me with such a nympho expression!

Fortunately, Li Qingning didn't stare at Yang Lu all the time, but quickly lowered his head again. Yang Lu was not in a hurry, and just quietly looked at Li Qingning's perfect profile with slightly frowning brows.This is the advantage of girls growing up beautifully. Even if they don't do anything, just letting others watch beside them is a kind of visual enjoyment!
A few days ago, Yang Lu heard Ji Sihan accidentally mention that Tian Beixi is also a rare and peerless beauty, almost as beautiful as Li Qingning.Although Yang Lu and Tian Beixi fought against each other for several rounds, he really didn't observe the opponent's appearance carefully. He only saw the outline of Tian Beixi's appearance from a distance through the enhancement of five senses, and he didn't know whether Ji Sihan was bragging.

Considering that Ji Sihan is one of the very few people who met Tian Beixi and Li Qingning at the same time, this kind of evaluation should be considered objective...

(End of this chapter)