Age of Legends

Chapter 222 Crisis
"Then I'll call you Xiao Zhang!" Xu Shan smiled. Huang Huifen was very amiable, and the company atmosphere was good. Xu Shan also knew that Zhang Chen's family had entered the industry later in life and didn't have the formalities of those big companies, so she just went along with that. Firstly, Zhang Chen was indeed a high school student, and his face looked young, so it did feel a little awkward for her to call him that.

Secondly, Zhang Chen is still like a little brother, so it's easier for her to call him that, and it also helps to shorten the distance between them.

"Isn't General Manager Huang here?" Zhang Chen asked. "Is he off arguing with someone again?"

Huang Huifen was known for her swift and efficient work at construction sites, so Zhang Chen asked her about it immediately.

Xu Shan, in her early twenties and with a touch of charm, couldn't help but chuckle as she said, "Sister Xu Ran is in her office. But it seems she's on the phone."

Just a moment ago she was smiling, but when Xu Shan mentioned Chen Xuran's phone call, her expression turned slightly serious, as if she also knew about the troubles that had recently been entangled with the two female bosses.

Zhang Chen nodded and went straight upstairs to the second floor. Xu Shan, seeing Zhang Chen downstairs, didn't bother to announce his arrival. She knew perfectly well that Chen Xuran treated Zhang Chen no differently than a nephew.

Chen Xuran usually comes over on weekends. She is now her own boss. She used to host some commercial shows, but she has turned them all down. After all, "If You Have a Dream, Just Say It" has become a hit in Rongcheng, and many companies are lining up to be on the show. This involves some internal profit distribution within the TV station, but without exception, they are all blocked by Chen Xuran. She only looks at whether the interview is worthwhile.

The new station director wants to keep this leading lady in check, so he's given her a lot of authority. Now no one dares to offend Chen Xuran. Everyone knows that Wang Bowen is now a rising star at the provincial station. He gained fame for successfully planning the emotional observation series at the Fuzhou Digital Culture Festival.

He was Chen Xuran's strong supporter. It's fair to say that if Chen Xuran hadn't considered the relationship with the municipal TV station, the provincial TV station could have easily recruited her. The provincial TV station might be hesitant to make such a move due to considerations of their sister system; this has happened before, but it caused a negative impact, so it's generally considered taboo. The provincial TV station won't use higher administrative levels to poach people, but if the municipal TV station manages to oust someone, then there's nothing that can be said.

Moreover, not to mention the provincial station, many satellite TV stations have also extended olive branches to her. She can live without the municipal station, but the municipal station cannot live without her now.

In her office, Chen Xuran felt a heavy weight on her mind as she made the call. "Director Liu, why is there still no progress on our loan application for the Lanyuan project after two weeks?"

“Mr. Chen, it’s not that we don’t support it…” Liu Xinwei, vice president of China Merchants Bank, took a sip of tea, “The head office just issued a document to strictly control renovation loans! You want to demolish the old teahouse on the west side of the park and build antique-style shops, but the cultural bureau hasn’t even approved the filing!”

Chen Xuran, dressed in a suit, quickly unfolded the planning map and patted it: "Why isn't it filed? The vice mayor personally inspected the site last week and said he supports the pilot program for mixed-ownership reform of state-owned enterprises! The land was originally allocated to Fuxing Group and converted to commercial land. We'll get the property certificate next month!"

Liu Xinwei said, "Oh, Mr. Chen, it's not that I don't want to approve it, but our bank has a system that connects directly to the head office. The system shows that your collateral is too little. According to the new regulations, renovation projects need to add 30% fixed asset collateral... Besides, there are so many unfinished buildings in Rongcheng now, even that Hong Kong-funded project on Chunxi Road has stopped!"

Chen Xuran was getting anxious: "Our plan specifically preserves and renovates several cultural relics sites, and we will also be responsible for their maintenance in the future. The government has promised to provide tax rebates for businesses for ten years. As long as the loan is in place, the shops on both sides of Lanyuan Avenue can be pre-sold before the Spring Festival!"

"Mr. Chen, it's not that I don't want to help you. That bad debt from last year's Hongguang Building hasn't been written off yet..." The bank manager, Mr. Liu, lowered his voice on the other end of the phone, "unless you can get the city investment company to provide a guarantee, or pledge the Fuxing Group's shareholding agreement to us..."

Chen Xuran chatted for a few more minutes, arguing his case logically, and the other party became somewhat resistant. "I didn't say I wouldn't keep my promise, it's just that there's no way to change things once the documents are issued. How about this, the maximum approval is 800 million, with the first installment of 400 million at a 20% premium to the benchmark interest rate. The second installment can only be released after we see the pre-sale permit... Either you accept this agreement, or you do what I just said and get the city investment company involved. I have to go to a meeting now! Mr. Chen, I'm just following instructions from above, please don't be upset, I'm still trying to accommodate you..."

After hanging up the phone, Chen Xuran threw it on the table and angrily shouted, "You idiot!"

Zhang Chen had just finished listening and poked his head out. "Oh, godmother, what's making you so unhappy?"

When Chen Xuran saw Zhang Chen, she felt a little embarrassed, but she couldn't suppress her anger. Her soft voice was filled with rage as she said, "It's all because of that Liu Jianwei from China Merchants Bank. When he asked me to introduce him for help, he kept calling me 'Sister Chen,' but now that I'm getting him to approve the loan, he's trying to trip me up. I'm so angry! These idiots are really something! He just wants a bigger slice of the pie!"

Zhang Chen asked, "Now, is there a problem with the money?"

Chen Xuran hesitated for a moment, then nodded, "Your mother and I are both extremely stressed. Your mother promised to release some compensation funds for the renovation, and the construction site also needs money. The contractor can't cover all the upfront costs, and we also need to make some initial payments. We had already contacted China Merchants Bank, but now they say the policy has changed!"

Zhang Chen asked, "How much is the funding gap?"

"China Merchants Bank promised 20 million, but now they can only approve a maximum of 8 million, and the interest rate will be higher. If they had told us earlier, we wouldn't have been able to plan like this!" Chen Xuran slammed his fist on the table in anger.

Zhang Chen also had a toothache. With a funding gap of 20 million, Zhang Chen tentatively asked, "Could we develop the real estate and renovate the park simultaneously, using the pre-sale revenue from the real estate to offset the development costs?"

“The government is shrewd, not stupid. Some preliminary projects are necessary. Only after passing the inspection can they obtain the government's pre-sale permit. This is to prevent some companies from taking advantage of the situation, cutting corners, and using the guise of renovation to make money off others,” Chen Xuran said.

Zhang Chen finally understood what the dark cloud hanging over Xuhui Real Estate was. No wonder his mother was in a bad mood, and he heard that some people in the company were feeling uneasy.

Banks are the lifeblood of the real estate industry, its lifeline; if the funding runs out, the trouble will be dire.

The lack of development loans is the main reason for the bankruptcy of most real estate companies. Don't be fooled by the seemingly lucrative real estate industry; a single wave of credit tightening can send countless small and medium-sized real estate companies out of the market and into bankruptcy. Successful companies always stand on the bones of the failures.

This is mainly because real estate development in China generally relies on bank loans, which can account for more than 50% of the total investment in a project, and it is not uncommon for bank loans to account for 70% or 80%. When banks adjust their policies, such as increasing the mortgage ratio, limiting the loan amount, or withdrawing loans, it can basically cause the real estate company to go bankrupt.

However, this is a two-way street. The risk of maturing bank and real estate debt can also lead to systemic harm to society. Some banks may lose large amounts of reserves due to real estate company debt, or even go bankrupt, causing social losses. Therefore, the process of finding a balance between the interests of both sides is ongoing.

But it will be just like this now. Once China Merchants Bank adjusts its policies, the small company that my mother and Chen Xuran run may go bankrupt immediately.

Therefore, starting a business is full of difficulties and obstacles; one wrong step and you're finished.

Zhang Chen was still dreaming of being a rich second-generation, but now he's about to become a poor second-generation!

Zhang Chen's brows furrowed into a deep frown.

Upon seeing this, Chen Xuran said, "Oh dear, why did I tell you all this? I'm making you worry too. It will be resolved, I will try to resolve it."

Zhang Chen asked, "Godmother, how do you plan to resolve this?" Chen Xuran's earlier enthusiasm faltered, her delicate eyebrows trembling. "Just keep drinking with them, and talk to Liu Jianwei. Talking is the only option!"

Zhang Chen said, "It's difficult, and there's nothing they can do. Banks also have to follow the policies... It's very difficult to switch... However, it's not entirely impossible!"

Chen Xuran's eyes lit up. "What, you have a way?"

Zhang Chen smiled and said, "We can give it a try!"

Chen Xuran's girlish temper burst forth, and she almost jumped up with joy, "Oh my, I knew my godson had a way with me, you're so clever!"

Zhang Chen was both amused and exasperated. "Don't get so excited yet, it's not a sure thing! I can't do this alone, you'll have to make the decision."

"It's okay, just go ahead and do it. Tell me how you need my cooperation?" Chen Xuran raised an eyebrow, as if she had reverted to her girlish nature.

Downstairs, hearing the commotion upstairs, another clerk, Zhao Lei, said to Xu Shan, "Little Zhang always has a way with things. Sister Xu Ran hasn't been this happy in a long time!"

Xu Shan nodded. Chen Xuran was very approachable and kind to people, especially her employees, who all took good care of her and naturally defended her. Hearing that she had regained her cheerfulness, she felt relieved. However, the two of them thought of the bank loan issue again and couldn't help but sigh.

……

Liu Qi, the CEO of Yipin Real Estate, received a phone call. He frowned slightly upon seeing the caller ID, then answered with a forced smile. "President Chen, what made you think of calling me?"

Hearing the thuggish voice on the phone, Chen Xuran didn't really like dealing with this person, especially since they had once been competitors. But she still smiled and said, "Mr. Liu, when can we meet to discuss a business deal?"

After hanging up the phone, a dinner party filled with clinking glasses and weaving together social and interest networks ensued. Someone remarked, "Mr. Liu, you must be too busy. You can't even forget to talk business over dinner?"

"Old friend, just arranging a meeting." Putting away his phone, Liu Qi picked up his wine glass, and everyone at the table raised their glasses in unison, ready to follow his lead.

This was a moment in Liu Qi's life when a mere flick of his sleeve could cause a great stir, making headlines and stirring up a storm. But now, he felt a little strange. Chen Xuran had actually taken the initiative to call and invite him to meet. You see, their park projects were currently competitors, and he had used some tricks, thinking he had thoroughly offended this beautiful female host who had gone from being a career woman to a successful one. He never expected that she would take the initiative to come to him.

Talking business... what kind of business is it exactly?
Liu Qi was also interested in seeing it.

He raised his glass, and a wave of compliments poured in from the table for the successful and powerful.

On Monday afternoon, Zhang Chen took a day off from school and went with Chen Xuran to the terrace of a private teahouse that was considered quite prestigious in Rongcheng at the time.

There was only one spot on the terrace, and once they booked it, no one else came.

Sitting at the table with Chen Xuran, who was dressed in a smart suit and high heels, exuding an elegant demeanor, Zhang Chen pouted and said, "I don't like Liu Qi, especially because he's always up to no good. Why do you think he can help us out of our predicament instead of kicking us when we're down?"

“If he knows that you can’t get a loan, we obviously won’t have room for a premium. That’s our weakness, so we can’t let him know. And we absolutely can’t let him know that we’re in dire financial straits, otherwise he’ll definitely stand by and watch, waiting for us to go bankrupt so he can reap the benefits!” Zhang Chen said. “But the good thing about him is that he doesn’t know about this. That’s an information gap that we can take advantage of.”

Seeing the bewildered look in Chen Xuran's eyes, Zhang Chen said, "Godmother, let me give you an example. During Roosevelt's election, there was a rumored mix-up. Whether it's true or not is unclear, but it's not important. You can refer to the underlying logic. It's said that three million copies of Roosevelt's photos had already been printed, but the campaign manager was shocked to discover that the photos they were using hadn't been authorized by the photographer. Worse still, according to copyright law at the time, they could only pay the photographer up to one dollar per photo. This meant the campaign team would have to pay the photographer $3 million a month for the use of the photos—that's $3 million in 1912, roughly equivalent to $50 million today. It sounds far-fetched, but it's not important. The main thing is how to solve it. The campaign team tried to find an alternative: reprinting three million pamphlets? The cost would be equally staggering, and it would take time. The campaign manager would need to negotiate with the photographer for a lower price. If you were in that situation, what would you do?"

Chen Xuran opened her mouth, then shook her head. "I can't think of anything."

She felt this predicament was unsolvable, and she couldn't fathom how the campaign manager of Roosevelt's team in the story was able to resolve the crisis.

Zhang Chen said, "This supervisor sent a telegram to the photographer, saying: 'Three million photos of Roosevelt will be used in the speech; this is a golden opportunity for you to make a name for yourself. Inquire about the fee. Reply immediately.'"

The photographer, unaware that 300 million photos had already been printed, quickly and happily replied with a telegram: 'Thank you for the opportunity, no less than $250.'

“So,” Zhang Chen said, “Roosevelt’s team did $300 million worth of work with $250.”

"Ha!" Chen Xuran's eyes lit up immediately. "You can do that? Wow, that's so clever!"

"So how can we take advantage of this information gap?" Although Chen Xuran didn't understand these things, she was still quick to grasp the point and understood the principle contained in the story.

"Whether this story is true or false is not important, but the content it reflects can be learned from. First, it conceals the fact that the book has already been printed, transforming 'copyright compensation' into 'advertising cooperation.' Second, it capitalizes on the photographer's desire for fame, rather than simply haggling. Third, it raises a business case issue called the Hamilton case, which is an example of two real estate investors negotiating over a property in Hamilton. There is a key word here: 'alternative solution.'"

After a pause, Zhang Chen said, "In all negotiations, you should first think about what to do if the negotiations end in failure. That's what alternative solutions are. Whoever knows their own alternative solutions and can analyze the other party's alternative solutions will be able to win the final victory in the negotiations."

"This is the essence of knowing yourself and your enemy, and you will never be defeated."

Chen Xuran blinked her big eyes: "Today, you're going to use this against Liu Qi?"

"Let me try."

(End of this chapter)