A century-old wealthy family that rose from Shanghai

Chapter 106 Equity Redemption
When a land owner in the western section of Yuyuan Road wanted to sell two acres of land to Chen Guangliang at the price of 2700 yuan per acre, Wang Zuoyi was rejected by Chen Guangliang - the reason was that he was not considering small plots of land for the time being.

Wang Zuoyi was very smart and immediately realized one thing - he was a little too proud of himself.

In other words, Chen Guangliang had no intention of purchasing more land on Yuyuan Road. In the past, Chen Guangliang would not have been bothered by small plots of land and would have basically taken them all.

Now he quoted the price himself, but refused to buy it. This fully proves one thing - Chen Guangliang falsely quoted the price and deliberately let Wang Xiancheng and Wang Juncheng help him drive up the land price on Yuyuan Road.

"Great"

Wang Zuoyi smiled bitterly, because he now had only one choice - to help Chen Guangliang drive up the land price on Yuyuan Road.

If he cannot convince Wang Xiancheng and Wang Juncheng to offer a higher price, then he will have no business and will not get any commission.

He hurriedly found Wang Xiancheng and Wang Juncheng and said, "Boss Wang, Mr. Chen really values ​​the land on Yuyuan Road. Shortly after you proposed the price, they raised it again. The price for the west section has reached 2700 yuan, and the price for the middle section has reached 4300 yuan."

The Wang brothers took a deep breath. They didn't expect that this young real estate developer valued the land here so much.

Wang Xiancheng couldn't help but pull out a simple map and then asked, "Why does he value the land here so much?"

Wang Zuoyi then repeated Chen Guangliang's words: "The city government won't affect the further expansion of the concession, and Yuyuan Road has already been incorporated into the concession, yet the price is still so low, so the potential is huge. On the other hand, if the concession can't expand, then the land value within the concession will naturally increase rapidly!"

Wang Xiancheng and Wang Juncheng were both surprised because they understood Chen Guangliang's intention.

They had actually investigated Yuyuan Road, and while they did have some understanding, it wasn't necessarily in-depth. Furthermore, they knew that several new lanes had recently been built on Yuyuan Road, and many real estate developers were beginning to set their sights there.

After a brief thought, Wang Xiancheng asked again, "Do you think Chen Guangliang will continue to raise the price if we raise it again?"

Wang Zuoyi immediately said, "I think he'll lose, because his bid this time is just a slap in the face, and it's not much."

Wang Xiancheng then asked, "How much land on Yuyuan Road does Chen Guangliang own?"

Wang Zuoyi lied and said, "About thirty acres!"

Next, the Wang brothers discussed it and finally decided to raise the price of the western section to 2900 yuan per mu and the middle section to 4600 yuan per mu.

"At this price, if they don't sell it, just pretend we never mentioned it!"

In the end, I decided to be cautious. After all, Chen Guangliang already has so much land in his hands. If the price is too high, wouldn’t it be a bargain for others?

"it is good"

This time, Wang Zuoyi was determined to persuade the owners to sell their properties to the Wang brothers as soon as possible, otherwise no one would buy them even if he wanted to.

It is June and the Shanghai Stock Exchange has officially entered summer.

Summer is a nightmare for coachmen because they wear straw sandals or even go barefoot, so the high temperature on the road can easily burn their feet.

Rickshaw pullers are engaged in physical labor and sweat all the time. Not only do they suffer, but they are also despised and abused by customers!
Chen Guangliang also experienced that kind of life for a while, so he has a deep understanding of it.

But so what?
Today, the Yangtze River Car Company has more than 1300 rickshaw pullers. Based on a family base of 2.6, this means more than 3000 people are involved. How can Chen Guangliang take care of such a large number of people? Even giving everyone a pair of straw sandals is impossible!

Fortunately, the more than 700 shareholders who have invested in the company are now making very good profits!
"Brother Chen, there's good news!"

Li Chao paid a surprise visit during the day on a weekday with a smile on his face.

Chen Guangliang thought it was the traffic department that had a license, and said happily, "What good news?"

Then he made a cup of tea for Li Chao.

"Thank you," Li Chao said. "Section Chief Smith is interested in selling us the licenses he acquired in July and August last year. The price is of course the 7 yuan per license you agreed on."

There are 24 large license plates for Project D and 60 large license plates for Project E, for a total of 84 license plates.

Chen Guangliang immediately did some mental calculations and found that redeeming 84% of the equity through 50 licenses would cost 21000 yuan.

This means that the cost of this project is 500 yuan per car (including license plate), and the payback rate is just over 50%.

Fortunately, he did not raise the price at the beginning. If it was based on the price of the last cooperation (50 cars) - that is, 350 yuan per license plate, to redeem 50% of the shares of Transportation Science, it would be equivalent to 700 yuan per car (including license plate), and the return rate would be only 40%.

The reason for this is that the "price difference" is basically eaten up by Chen Guangliang personally!

"It's really a good thing. These two projects are pretty good, with a return rate of over 50%."

Li Chao pondered for a moment and said, "If you have the money, it's best to buy this portion of the shares yourself. First, the annual return on these two batches is over 50%, which is much higher than the fifty licenses redeemed by the Transportation Department later. Second, if we raise more shares on a large scale, the accounts will be too complicated, and distributing dividends every month will be troublesome."

He knew Chen Guangliang had the cash flow, given his real estate and land speculation, so he suggested this. At this point, Chen Guangliang was also starting to think—the Changjiang Motors was unlikely to expand further, given that licenses were already too expensive, and with only a year and a half left until the 1930s (when competition would be fierce), if he still wanted this rate of return, he would undoubtedly increase his stake now.

"That's feasible! I will immediately raise funds to redeem the equity of these two projects of the Transportation Department!"

Li Chao nodded and said, "Okay, there's no need to rush. You can raise the money slowly. I think Smith is in a hurry to use the money, so he wants to cash out part of it first. After all, this part of the dividend is almost paid back."

"Um"

Li Chao added, "By the way, I've been promoted to deputy chief of the Transportation Department. I'm afraid I won't be here as often in the future!"

At this moment, he had an excited expression on his face.

If he were an ordinary employee, he would definitely prefer to work at the Changjiang Motors. But now that Section Chief Smith values ​​him and has promoted him to deputy, the situation is completely different.

Chen Guangliang was also delighted and said, "Congratulations. Don't worry, He Xiangdong and Zhou Xinggao can handle it on their own. This won't be a problem. You can just focus on the traffic department!"

Li Chao's promotion is a "good thing" for him. If he changes to a "three-wheeled rickshaw" later, he will also have some say, although it will be limited.

"Thank you. It's because of the cooperation with Changjiang Motors that I'm truly valued by Section Chief Smith."

"That's not necessarily true. You know English and you're young, so that's definitely an advantage!"

Although Li Chao was not a senior member of the Traffic Department, his fluent English and serious work attitude were the reasons why Smith valued him; and the cooperation with Changjiang Motors was just a cause.

After seeing Li Chao off, Chen Guangliang began to think in his office.

The project to redeem the equity of Transportation Science and Technology has an annual return rate of about 50%, and the investment will be recovered in less than two years; but for Chen Guangliang, this rate of return is still considered low.

You know, his land speculation can increase his profits by 100% a year.

Therefore, he was reluctant to use the liquid funds on hand (the first profits from the two real estate projects and the dividends from the car dealership) for the 21000 yuan.

But if I go to the bank for a loan, it is estimated that the two cooperating banks are unlikely to agree to use it as a 'cash machine'. It's not that they cannot provide a loan, but it will take time. For example, the Commercial Savings Bank must pay off some debts before considering it; as for Jincheng Bank, they probably only want to provide loans for real estate.

However, Chen Guangliang quickly decided to use the "working capital" for the second time (the 1.5 yuan he invested in Tongchang Automobile Manufacturing Plant for the first time)!
After all, after winning this project, his dividend next month will reach 9000 yuan, and the cost is just more than two months' dividend.

Before get off work.

He Xiangdong walked in with an account book and reported, "Boss, this month's dividend plan is out. Your personal dividend is 7360 yuan, including the profits from the wholesale department."

At the beginning of last month (May), Chen Guangliang only received more than 5 oceans. A month later, Chen Guangliang could already receive 4500 oceans. The growth was too fast.

This is because all the shares of the 5 rickshaws (Da Zhaohui) in operation in May belong to Chen Guangliang.

And by next month (July), Chen Guangliang will first increase the dividend of the D\E project by 7%, which seems to be around HK$50; and the batch of cars (1200 cars) that were originally defrauded from Wang's car dealership have been repaid and dividends can be distributed; finally, of course, commodity wholesale will also increase.

Therefore, Chen Guangliang expects to receive a dividend of 9000 yuan next month.

"Well, as usual, dividends will start from the 3rd. Oh, and the Transportation Department's equity in the two DE projects is going to be sold to me personally."

Inform He Xiangdong about this matter. After all, it involves changes in equity, and He Xiangdong, the powerful deputy general manager, has the right to know in advance.

He Xiangdong was delighted upon hearing this and said, "This is good news. I think it's no longer appropriate to 'raise shares' in the future. After all, license plates are already expensive on the market, and the company has no new project plans. Therefore, the owners of the Transportation Department's shares can pocket all of it. After all, this is more cost-effective."

He also didn't want to add any more 'cumbersome procedures' for dividend distribution, which could easily lead to minor problems.

Chen Guangliang listened to his subordinates' suggestions and immediately said, "Okay, it's only a few tens of thousands of dollars anyway."

He Xiangdong observed their expressions and immediately made a suggestion: "If the boss needs funds urgently in the short term, you can let the drivers deposit their funds with you and give them an annual interest of 1%. Everyone will agree."

Although some banks will open accounts with even a single dollar, in reality, laborers rarely choose to use banks and have no habit of saving money there. However, it is not convenient to store the cash on hand, as the place they live is crowded and full of people.

Therefore, the little savings of the poor are basically kept in the hands of relatives and friends who have money at home, or in the hands of their bosses. (For example, Xiangzi kept his money with his employer)

Chen Guangliang was tempted, but quickly said, "It's too much trouble. Besides, these more than a thousand coolies can only scrape together a few silver coins. Forget it!"

Although he had done this before and launched a fundraising campaign in Fangua Nong, the situation was different now and he was not willing to do so.

The main thing is that he has money now!

"Ok"

(End of this chapter)