1988: Back to the human world for a few years

Chapter 199 Choice (1)

Three days later, in an office in the government building.

Feng Yuan, who was sitting on the sofa, was frowning and looking at the plan in his hand over and over again.

The expression is very serious and solemn.

Attitude, but also very hesitant.

The uncle and nephew sitting at the next table also had the same plan in their hands, but unlike Feng Yuan who was eager to carefully consider every word, the two plans had already been placed on the coffee table.

Vice President Tang was hesitant and looked at Feng Yuan, whose brows were furrowed into a "川" shape, with some dissatisfaction.

As the company's executive vice president, he has a lot of things to deal with every day, and he doesn't have that much time to sit here and waste.

Besides, isn't this just a plan that the so-called corporate management research project team under Liu Jiyu came up with after receiving instructions? It's bold, but it also has a strong sense of being a perfunctory job. Do you really have to read it over and over again?
As if sensing his uncle's impatience, Tang Chaoxian, as the plan recommender, explained in a low voice: "Boss Tang, according to the statistical information, up to now, the special working group led by Boss Wang has paid more than 6800 million yuan in advance to nearly half of the towns in Linyi, and the amount of replacement debt generated is as high as 1.4 million yuan;"

"In addition, they have injected capital into 87 towns in Pingyuan, Yucheng, Qihe, Jiyang and other regions in the form of debt swaps to incubate more than 67 small projects... Adding the more than ten key projects they originally incubated in Linyi County, the actual amount of capital injection will not be less than 3000 million."

At this point, Tang Chaoxian's tone was somewhat complicated: "According to the calculations of professionals who don't deposit money in banks, the special working group's direct capital injection of less than 1 million yuan may not seem particularly large, but under the leverage effect, the short-term commodity circulation value it has driven exceeds 7 million yuan;"

"And given that the customization model enforced by the special working group has received good feedback from consumers, as long as this model continues, with half a year as the time limit, the driving force of the mid- and long-term commodity circulation value of this less than 1 million yuan investment amount can even exceed 11 billion yuan!"

"To put it in the words of the bank, this leverage ratio of nearly 1:12 is so exaggerated that it makes people feel that it is fake... After all, this money is invested in the real economy, not the financial securities market. The two are not the same;"

"According to their estimates, if this model continues, and a maximum of another 400 to 500 million yuan is invested, and it lasts for three months, the triangular debt problem of local enterprises in Linyi County will be fundamentally sorted out, and the local economy of Linyi County will also usher in a big boom... And if during this period, an enterprise can stand out in the customized production model, Linyi County can even use this as a starting point to produce a siphon effect in related industries and become an important distribution center for this industry and supporting industries."

Tang Chaoxian picked up the thermos and refilled his uncle's water. He sighed, "Boss Tang, don't think that the special task force has limited ammunition and can't come up with the 400 to 500 million yuan needed for the follow-up. This matter will eventually be abandoned halfway."

“In fact, whether it is deposited in a bank or not, the competent authorities of Linyi County are waiting for the stabilization effect of the model explored by the special working group;”

"In fact, there is no need for such an exaggerated leverage ratio of 1:12. As long as the lever of commodity circulation value can continue to maintain the level of 1:8 in three months, the bank will officially intervene and take care of the subsequent capital investment. The competent authorities of Linyi County will definitely not sit idly by. Even if they have to use their last bit of assets, they will try their best to share part of the subsequent funds and materials... After all, everyone hopes that their name can be higher in the credit book."

With a hint of envy and helplessness in his tone, Tang Chaoxian leaned forward and said, "Although I don't want to admit it, I have to say that the special working group led by General Manager Wang is indeed good at handling cases;"

"In fact, as long as they can provide a feasible model that can effectively promote the circulation of local commodity economy, their mission will be accomplished... As far as the current situation is concerned, they are undoubtedly doing very well in this regard."

After briefly talking about the achievements of the special task force, Tang Chaoxian's tone became dejected again: "But what about us?"

"When we officially took over Momo Baitou, the company's account was originally supposed to have 1.07 million yuan in funds. Although Yang Mo, who was previously in charge, spent 3700 million yuan, it still had more than 6300 million yuan in disposable funds... This is an astronomical figure for a third-level subsidiary."

"According to the principle of reciprocity, we do not require a leverage ratio of 6300:1 or even 12:1 for the 8 million yuan. After all, the level of the special working group is much higher than ours, and its nature is also somewhat special. The social resources and policy support that can be mobilized in a fair and open manner are not comparable to ours... But at the very least, a leverage ratio of 1:5 or 1:4 should be achieved, right?" "After all, according to the bank, the current economic environment is not good. A leverage ratio of 1:4 may not be enough in previous years, but now it is a barely worth mentioning achievement."

"That is to say, with this 6300 million yuan of funds, we must at least increase the actual commodity circulation value of Linyi County by 2.5 million yuan. Otherwise, we can't even maintain our dignity, let alone compete with President Wang!"

"But what about the result..."

At this point, Tang Chaoxian sounded a little frustrated: "As of yesterday, Momobaitou has only approved 21 projects. Among these 21 projects, only 6 are truly revenue-generating."

"Correspondingly, the available funds on Momobaitou's books have dropped from 6300 million two months ago to 2100 million now."

"That is to say, we have invested 4200 million in six projects that could generate revenue... But in reality, the actual investment in these six projects is only 6 million!!"

"In fact, this is not the most critical thing. The most critical thing is that by the end of the year, these six projects must generate 6 million yuan of actual commodity circulation driving force to cover all investment sunk costs and bring the overall economic leverage ratio to the minimum level of 1.7:1."

With a wry smile, Tang Chaoxian crossed his arms tightly and said, "With an actual investment of 517 million, we can generate an actual commodity circulation driving force of 1.7 million. This translates to an economic leverage rate of nearly 1:33... How is this possible? After all, the estimation of the actual commodity circulation value is different from the statistical calculation method of GDP. The two are not comparable."

"Unfortunately, Momobaitou only has 2100 million yuan of available funds now... This is an awkward number that is neither too much nor too little;"

"If the 2100 million is invested in revenue-generating projects and generates positive returns, it is possible to cover all the previous investment sunk costs and hand in a barely passing grade with a leverage ratio of 1:4;"

"But if there is a slight mistake in the middle, or if the subsequent investment amount for revenue-generating projects cannot guarantee the minimum figure of 2000 million... then we can only pray for a miracle."

At this point, Tang Chaoxian's tone was full of worry: "The most important thing is that we still have to use this last 2100 million to create enough jobs to accommodate the family members and idle employees in the company... This is our real trump card in the arm wrestling with President Wang. After all, even if President Wang is doing well, he has only earned a reputation. As long as our family placement rate is significantly higher than his, it is really hard to say who will win."

"But the problem is... Mr. Wang has the help of Director Mu. Over the past few months, he has solved the employment and resettlement problems of more than 1100 family members and idle employees. It seems that Director Mu's foreign trade projects are about to start to get on track on a large scale. In addition, Mr. Wang has been holding back the 5 million yuan in funds. It is said that the communication and contact for the big project he is planning during this period are also going smoothly. In the future, there will be more jobs for the family members of the company;"

"So, with the 2100 million yuan in our hands, can we use the big bet on the small, meet the 1:4 leverage ratio, and create more jobs for Mr. Wang's family members... We really have no idea!"

In the end, Tang Chaoxian concluded: "Faced with the current predicament, Vice President Feng decided to take a gamble and pool the last 2100 million to build a large project... Only in this way can we have a chance to turn defeat into victory."

"Similarly, the plan submitted by the business management research team under Team Leader Liu is bold, but it is our only chance to turn things around at the moment;"

"But as you know, Mr. Tang, this plan is just an idea... Not only will it have serious side effects, but there are also many links that need to be carefully considered and adjusted. Otherwise, if we violate the rules of the game, we will really be eliminated."

………………

Vice President Tang's face trembled when he heard this. Was he planning to gamble his last 2100 million against Wang Yinuo's 7 million?
Even Hong Kong and Taiwan movies and TV dramas don’t dare to act so exaggerated, okay! ?
However, after careful consideration, I feel that although this matter may not sound reliable at first glance, it is actually not impossible.

(There is another chapter in the afternoon)
(End of this chapter)