We are all reborn, who wants to be the richest man?

Chapter 201 CEFC and Rare Earths

"Mr. Luo is dissatisfied with you for saying that my father sent me here with a mission this time. It's just a front-line stand."

"Master Rong, there is no need to be polite between us. If you have anything to say, just say it directly. As long as I can do it, I will never shirk it."

Mr. Rong, this surname already explains a lot.

They were top capitalists during the war years, but their capital was not obtained through exploitation like many blood-sucking capitalists of that era.

On the contrary, people donated their wealth several times to fight the war.

In the Magic City, the Rong family's property is very popular, and many people relied on the Rong family's support to survive during the poor times.

The Rong family was the first domestic capitalist to be recognized by the leader, and was also the only large family in the country to be recognized internationally.

Based on this point in time, Luo Nianzhong probably guessed why Mr. Rong sent Mr. Rong here.

"My father has been found by the superiors, and Mr. Luo should know about asking my father to take the lead in establishing a trust institution, right?"

Seeing Luo Nianzhong nodding, Mr. Rong continued, "I'm not afraid of Mr. Luo's jokes. It's easy to set up a trust company, but the capital is far from enough, only 20 million.

This amount of money was never enough to do a big business, so my father came up with the idea of ​​issuing bonds.

My father knows that Mr. Luo has a certain say in the financial industry in Southeast Asia and the business community of the island country, and I wonder if Mr. Luo can help."

After Mr. Rong said this, Luo Nianzhong secretly said that it was true.

If it weren't for himself, Mr. Rong would soon go to the island country to issue bonds of 100 billion yen, which is almost equivalent to 5000 million US dollars.

Now that he has the unexpected factor, the other party has found him first.

Luo Nian Center even judged that history may have deviated. If Mr. Rong's bond issuance goes smoothly, the scale may be larger. Otherwise, it is not worth bearing this favor on him.

"What is the specific amount? What is the specific amount of bonds to be issued?".

"Two hundred million dollars."

Mr. Rong looked at Luo Nianzhong nervously when he reported the number.

The company's total assets are only a few dozen times, and its debts exceed its assets dozens of times. It can be said that it is entirely guaranteed by Mr. Rong's credit.

It's very valuable and very worthless.

Luo Nianzhong did not express his agreement, but looked at Mr. Rong and said, "Why don't you choose financing?"

In Luo Nianzhong's memory, in his previous life, Li Bancheng, as the first person in Hong Kong Island, invested in CEFC early and became its director. This can be regarded as one of his investment legends.

Not only was this investment extremely profitable and the rate of return was astonishing, but it also relied on the background of the directors of CEFC to win a lot of projects.

Now Li Bancheng has not reached his original height because of Luo Nianzhong, but Luo Nianzhong is stronger than him. Why doesn't the other party look for him?

Mr. Rong smiled bitterly when he heard Luo Nianzhong’s words, “It’s not that we don’t want to raise funds, it’s just that the scale is too small.

We have also thought about seeking financing from patriots like Mr. Luo, but if we have too much money, we are afraid of losing control, and if we have less money, we are worried that you will look down on us.”

Luo Nianzhong suddenly realized that he had always subconsciously regarded Huaxin as that behemoth, but he had neglected this point.

This is one of the four major consortiums of Rabbit Future. It can be said that the industry is spread across all walks of life. The important thing is that the huge influence brought by becoming its shareholder is what Luo Nianzhong values ​​​​the most.

It is not easy for the officially led consortium to join, and now is the best opportunity.

Once the other party has developed, it is not that easy to join.

"I am very optimistic about the development of Rabbit, and I have always spared no effort to support and invest in it, so I am also very optimistic about the future of Mr. Rong's company."

What I said was very straightforward even though it was not direct. I just wanted to join in.

As for Mr. Rong's worries, Luo Nianzhong also understands, but he believes that his bait is enough to attract the other party.
"The valuation is US$20 million. I want % of the shares. The Far East Group is willing to guarantee you the US$ million bond issuance."

As soon as Luo Nianzhong's conditions came out, Mr. Rong was lying if he said he wasn't interested.

A valuation of US$20 million means that the market value of this company has more than doubled without doing anything, and it is still foreign exchange.

The second condition is even better. Far East Group provides guarantee and endorsement.

No one would think that the Far East Group has any repayment pressure on the two hundred million US dollars. It can be said that this is a disguised form of bonds sold by the Far East Group.

In this case, not only will these bonds be snapped up, the Rong family can also rely on Mr. Rong's face to get another loan elsewhere without any problem.

The problem now is that the transfer of 20% of the equity at one time is too much. If it is halved, Mr. Rong will make the decision directly without asking for instructions.

After thinking about it, Mr. Rong said sincerely, "Mr. Luo, 20% of the shares is too much and my father will not agree to it.

To be honest, 15% is a limit, at least 10%."

Luo Nianzhong is satisfied with 10%, but giving back to the country is to give back to the country, which is not how business works.

Moreover, he has a big deal in his hands that can make this company take off. If he can participate in this deal, the Luo family will have a voice and influence in the manufacturing industry around the world.

"I wonder if Young Master Rong knows about rare earths?"

Mr. Rong didn't understand why Luo Nianzhong turned the topic to this, but he still replied, "I know, but I don't know much about it."

It's understandable. After all, the Rong family made its fortune in light industry and finance, so it's normal for them not to understand rare earths.

Rare earths are not a resource but a collective name for 17 rare elements on the periodic table.

It has rich physical properties and chemical activities such as light, point, and magnetism. It has irreplaceable uses in industry, military, technology and other fields. Just like additives, adding a little rare earth elements can make the performance of materials improve by leaps and bounds.

For example, the patriots of the beautiful country can easily destroy the polar bear's Scud because four kilograms of samarium cobalt magnets and neodymium iron boron magnets are added to the manufacturing process for electron beam focusing. Samarium and neodymium are rare earth elements.

There are also flame-retardant titanium alloys added to f22 using rhenium rare earth, night vision goggles added with lanthanum, rangefinders with neodymium, invisible coating with samarium, etc.
Not to mention the field of science and technology, neodymium, samarium, praseodymium, dysprosium and other rare earth elements are the main raw materials for manufacturing super permanent magnet materials.

Its magnetic properties are four to ten times higher than ordinary permanent magnet materials, and its commercial value is very high.

This is also the reason why rare earths are later called irreplaceable strategic resources for new technologies, new energy, new materials and other new industries.

It is such an important strategic resource that rabbit reserves now account for more than 90% of the world's reserves.

At this time, Rabbit is still at the stage where we know this thing is important, but don't know how important it is.

Because the manufacturing industry is backward, rabbits do not use many rare earth elements. Only when rabbits became the world's largest manufacturing country did they understand how important this thing was.

After listening to Luo Nianzhong's explanation of the importance of rare earths, not only Mr. Rong, but also Governor Zhang were shocked and said that they would make a deposit to the superiors when they returned.

“If we can win the exclusive sales rights of Rabbit Rare Earth, the price alone can be significantly increased, if nothing else.

You must know that with the current refining technology, the cost of refining rabbits is very low."

I would also like to thank one person for this, that is Academician Xu, the first person in Rabbit Rare Earth.

It was his technological breakthrough that allowed Rabbit to change from selling rare earths to selling rare earth elements now.

However, because of his refining technology, beautiful countries, island countries and other countries have completed strategic reserves and accumulated large amounts of rare earths.

Because there is no registered patent and he lectures publicly, many people take advantage of it.

In the 90s, a large number of state-owned enterprises transformed and turned their attention to the low-cost and high-profit industry of rare earths.

The amount of mining is far greater than the market demand. In order to sell the rare earths in hand, a price war has begun.

Nearly half of the rare earth reserves have been mined in less than ten years, and those countries that need rare earths have also completed strategic reserves. These rare earth reserves are enough for their own countries to use them for decades.

Luo Nianzhong proposed in advance that he wanted Rabbit to manage it and better control this industry.

"This thing is so important, then why don't we ban the sale? Are we still selling it for takeout?" Before Mr. Rong could speak, Governor Zhang winked.

Luo Nianzhong explained to Governor Zhang with a hearty smile.

“First of all, not all rare earth resources in the world are here.
Second, if you ban rare earths, will others also ban some of your other imported goods? This is not worth the loss.

The third is that only by selling it and making others dependent can we strive for better interests, which is also more in line with the national strategy."

In fact, it is not that Rabbit has never tried to restrict exports, and was sued by European and American countries to the WTO for this reason.

In 2010, Rabbit tightened its rare earth quota, reducing it by 40% from the previous year.

However, the price of rare earths fell rapidly after rising sharply for half a year, and the price plummeted even more sharply than before the restrictions.

The reason is that the downstream market for rare earths is single, mainly concentrated in countries with developed manufacturing industries.

These countries had already completed strategic reserves in the 90s, which were enough to supply them with supplies for at least ten years.

Although nothing in this regard has happened yet, what if someone vigorously develops new technology to replace it because you are disabled.

Although rare earths are important, their resources are not very high. Rare earth resources have been discovered in the beautiful country and Theo, and some rare earth resources can achieve self-sufficiency in a short time.

The last point is that many industries can accept not using rare earth elements, such as white goods and other industries, which are major manufacturers.

You can think of banning it, but the country can’t think of it? Those think tanks did not do this, which means that prohibition is only a bad idea.

Now that there is such an opportunity, Luo Nianzhong wants to make the country more stable and broader in this strategic resource, and the Luo family will also benefit.

"Mr. Luo really cares about the national interests. As you said, if the price of rare earths goes up, the interests of the Far East Group will also be affected, right?"

Luo Nianzhong didn't care at all.

"The wool comes from the sheep, and the dogs pay the bill, so as long as our products are always ahead of the times and recognized by customers, it has nothing to do with us."

"The wool comes from the sheep, and the dogs pay for it."

Mr. Rong silently recited Luo Nianzhong's words and his eyes lit up, "No wonder my father always said that Mr. Luo is a once-in-a-millennium business wizard. This sentence has benefited me a lot."

what is this? In the future, the wool will come from the dogs and the pigs will pay the bill. This is to maximize the benefits of using the resources in hand.

However, this also shortens the industry cycle, accelerates market elimination, and increases resource waste.

It's a bit like you only care about immediate interests, and there's nothing you can do about it. Even your colleagues are like this and you can't be like this, right? Short-term profits and company demise are good choices, right? This is why core technology and high-end technology are so important.

The three of them talked a lot. Luo Nianzhong saw that it was getting late and said, "Let's get here first today."

"I have benefited a lot from what Mr. Luo said today. I will convey Mr. Luo's plan to my father when I go back. I believe I won't keep Mr. Luo waiting for too long."

Mr. Rong stood up and solemnly shook hands with Luo Nianzhong again.

"I would also like to convey my regret for not seeing your father this time and my respect for him."

Luo Nianzhong really admired Mr. Rong, just like he admired Huo Daheng.

"I will definitely tell the truth, and I look forward to meeting Mr. Luo again."

(End of this chapter)