Reborn, back to a small county town to become a wealthy family

Chapter 792 It's not modesty, it's true that he's useless.

Founded in 1995, BYD has accumulated strength over more than 20 years and has now become one of the giants in the new energy vehicle industry.

Even Tesla, a rising star in the new energy vehicle industry, was founded in Silicon Valley in 2003 by engineer Martin Eberhard, and it has been around for nine years now.

Therefore, to truly achieve success in the field of new energy vehicles, having enough funds is not enough; time is also required for accumulation.

In the early stages, we can completely adopt the models of some later domestic new energy vehicle brands.

For example, NIO is manufactured by JAC Motors; and Xiaomi Auto has chosen BAIC Group as its contract manufacturer.

Luo Yang also plans to adopt this model, where the company will only be responsible for the design, research and development, and marketing of automobiles, while production will be outsourced to contract manufacturing partner car companies. Anyway, Nanjing Automobile Group is located in Jinling. After negotiating a cooperation with them, the production line can be placed in the new energy vehicle industrial park in Jiangning Development Zone. There shouldn't be any major problems.

Although it's unclear why the son-in-law's opinion suddenly took a 180-degree turn, it's always a good thing that the two of them agree on something.

"In this way, we will save a lot of money in the initial investment."

Jiang Yuanshan, in a good mood, said to Luo Yang, "A large portion of the funds saved can be used for marketing and brand building."

"It's not just about marketing; we can also strive for excellence in technology research and development, including the exterior and interior design of the car."

Luo Yang also smiled and shared his thoughts: "We're not in a hurry to launch our product to the market."

The reason he wasn't in a hurry was because some fragments of his memory were triggering alarms, especially during the period of 19-20, when spontaneous combustion incidents of new energy vehicles occurred frequently in China. Coupled with the fact that traditional gasoline vehicles were not willing to be outdone and increased media coverage, it led to market users having concerns about the safety of new energy vehicles.
"When do you think would be a good time for us to start?"

After returning from his trip to the provincial capital, Jiang Yuanshan felt that the project had entered a fast track, especially with the support of leaders behind the scenes.

Moreover, Luo Yang's signal last year was that it would take two or three years, and even if we compromise, it should be able to start around next year.

"Dad, when will the funds arrive?"

"I'm available anytime."

Jiang Yuanshan spoke frankly: "We initially agreed that each of us would contribute 5 billion yuan in the early stages. However, according to the business plan you prepared, the initial start-up capital for the project only needs to be 6 to 7 billion yuan. This estimated amount also includes the cost of relocating the entire Yuanfan New Energy Battery Factory to the Jiangning Development Zone. But now the plan has changed. In reality, we want to replicate a new energy vehicle power battery company in the industrial park. The funds involved need to be recalculated, but based on my experience, I estimate that the difference will not exceed 500 million yuan."

This means that he and Luo Yang only need to each contribute about 35 billion yuan in the early stages.

And this doesn't even take into account loan factors.

"We had a discussion yesterday afternoon, and the Jiangning Development Zone Management Committee is willing to help us coordinate at least 20 billion yuan in low-interest loans for this project."

Jiang Yuanshan then brought up the loan: "Let's calculate based on a minimum of 2 billion yuan. Each person would need to put up about 25 billion yuan upfront. Although I don't have that much cash flow on my books, by mortgaging the assets to the bank and adding the credit loan limit, it's still no problem to borrow 2 to 3 billion yuan."

Sure enough, normal companies don't have that much cash flow sitting on their books.

Only someone as cautious as Luo Yang could maintain such a low debt ratio and a large amount of cash flow in his company, even with two cash cows at his disposal.

“If I only have 25 billion yuan, I can take it out at any time.”

After thinking for a moment, Luo Yang simply revealed the truth.

Currently, Luoshengtang and Zhengyang Group alone have over 15 billion yuan in cash flow on their books. With asset collateral and credit loans, raising 25 billion yuan would be no problem at all.

There's no need for him to bring up making money in the crude oil futures market here, lest he provoke his father-in-law.

"What do you mean?"

Hearing his son-in-law say this, Jiang Yuanshan almost misunderstood Luo Yang's true thoughts, thinking that he also hoped to start the project as soon as possible.

"Dad, I think we should postpone the start date until after next spring."

Luo Yang's reply surprised Lao Jiang, causing him to pause for a moment.

"Of course, once the project is launched, preliminary research and project feasibility assessment reports still need to be done in advance."

"We can use the business plan you sent me as a basis."

Jiang Yuanshan nodded and suggested, "After all, the basic content of this proposal has been approved by the leaders. If we make major changes, we will need to communicate with them, and it will leave a bad impression of being fickle."

"That's no problem, that's what I think too."

After agreeing, Luo Yang continued, "In addition, we need to talk to Guotai Industrial Real Estate again. It would be best to sign a cooperation agreement or something similar with them first. Then, our two companies can go to the provincial capital together to talk to the people in Jiangning Development Zone about the details of the project's implementation."

A few days ago, Official He took Jiang Yuanshan to the provincial capital to make connections. He didn't expect to reach an agreement on this trip. At most, he just had the intention. All he wanted was an opportunity to make connections.

Several people, including Jiang Yuanshan, did not expect that the high-ranking official He would actually disclose the news that the new energy vehicle manufacturing project was looking for investment sites, hoping to attract investment and build a home for the project.

He hadn't held out much hope, but things took an unexpected turn for the better.

As one of the investors in the new energy vehicle manufacturing project, Jiang Yuanshan first affirmed his intention to invest, and then discussed many preferential policies with the development zone. This confidence stemmed from the previously mentioned 20 billion yuan low-interest loan.

"Indeed, the framework agreement cannot be signed without discussing the details properly."

Jiang Yuanshan nodded and said, "After you've finished negotiating with Guotai Industrial Real Estate, the three of us will go to the provincial capital together and try to finalize the investment cooperation agreement by the end of September, and it would be best if we could sign it."

"It shouldn't be that fast."

Luo Yang shook his head and said, "Let's not even talk about the bank loans and low-priced land in the cooperation agreement. Even the Jiangning Development Zone will require a considerable amount of time for meetings, discussions and coordination. The agreement also involves matters concerning upstream and downstream enterprises in the industrial chain, which is a constraint for us. So we also need to spend time investigating. This matter will take even longer. Therefore, I think it would be quite fast if we could sign the investment framework agreement before November."

He had encountered similar projects before. Although he hadn't managed them himself, he had chatted with people who had managed projects before, so he knew that the intricacies involved were very time-consuming.

On this point, Jiang Yuanshan was quite convinced of his son-in-law's abilities.

"No wonder you said you would officially launch the project next spring."

Jiang Yuanshan understood and said, "Signing the framework agreement is just the beginning. Subsequent land listing procedures, preliminary planning and demonstration of the industrial park, and other matters will also take a lot of time. The springtime time you mentioned is quite tight."

"Besides this, there is another thing to consider."

Luo Yang turned his head and glanced outside the floor-to-ceiling curtain wall: "The infrastructure of the Guangfan Wind Power project will be completed around October. The supporting facilities will not take much time. Next, we will introduce production equipment, recruit a large number of employees, and invest more money in research and development. This period of intensive capital investment coincides with the early stage of investment in the new energy vehicle industrial park. Dad, will you have any financial pressure?"

The Guangfan Wind Power Project was regarded as a key project by Yang City and was granted preferential loans.

In the early stages of the project investment, apart from the initial capital paid for acquiring the land, all the money spent on infrastructure so far has come from bank loans.

The project claims an initial investment of 5 billion yuan. Even if that figure is inflated, it would still be at least 2 to 3 billion yuan. However, the city only provides 1 billion yuan in loans, and the rest of the funds have to be provided by Luo Yang and Jiang Yuanshan in real terms.

Are you experiencing financial difficulties?

Jiang Yuanshan looked at Luo Yang with surprise; "So we need to avoid peak periods for fund usage?"

"I have no problem at all."

Luo Yang shrugged, revealing a relaxed expression.

Even without gains in the crude oil futures market, there are still two quarters left in the second half of the year. During this period, both Luoshengtang and Zhengyang Group should have no problem making a combined profit of over 20 billion yuan.

Not to mention that he already plans to sell Lemon CC after the start of next year.

When Luo Yang planned to enter the new energy vehicle manufacturing industry last year, he never thought he could make money from the international crude oil futures market, so selling Lemon CC was part of his plan to raise money.

If he sells it for 100 billion, he can get 49.5 billion in cash flow, which is plenty of money.

"Since you have no problems on your end, let's proceed according to this timetable for now."

Since his son-in-law said that funding was not a problem, he didn't ask any more questions. He smiled and said, "You can start expanding the preparatory team you put in the development zone management committee. By the way, we've been talking about this project for so long, but it seems we still haven't come up with a suitable name, have we?"

"Forehead"

When Jiang Yuanshan asked this question, Luo Yang felt a headache coming on.

"Dad, I'm terrible at naming things, why don't you do it?"

"Guangfan Wind Power, Guangfan Electronics, Guoyang Real Estate, Sunshine Tourism, and Qingyang Building Materials—I think they're all pretty good?"

Jiang Yuanshan shook his head and said, "You're a young person, I think it's better if you come up with the name for something new like new energy vehicles."

Seeing that he couldn't refuse, Luo Yang fell into deep thought.

"How about we snatch BYD's Dynasty series?"

He stroked his chin and thought for a moment, but then dismissed the idea. After all, it was already August 2012, and BYD might have already applied to register the Dynasty series trademarks. He didn't want to make a fool of himself.

(In fact, BYD's earliest registered dynasty trademark was "Qin", registered on July 4, 2012, designated for use on automobiles, small motor vehicles and other products. Subsequently, BYD successively registered trademarks including the names of dynasties such as Xia, Shang, Zhou, Jin, Sui, Tang, Song, Yuan, Ming and Qing, as well as the names of Chu, Yan, Han, Zhao, Wei and Qi from the Warring States period.)

After considering acquiring BYD, he also thought of several other companies, including NIO and XPeng, but he abandoned the idea because he was too embarrassed to do so.

Jiang Yuanshan didn't disturb Luo Yang, quietly smoking and drinking tea.
After a long while, Luo Yang raised his head.

"Dad, how about we just name it Guangfan Motors?"

Jiang Yuanshan: "."

Looks like it's not modesty, he's really useless!

(End of this chapter)