Journey 1995:Non-Stop

Chapter 308 Feasibility Report

Chen Jian was also moved by Yan Hui's decision and decided to participate in the construction of the chemical laboratory.

Of course, Chen Jian himself had such a dream. Doctoral students in this era had already graduated with bachelor's degrees in the 90s. That is to say, seven years ago, Chen Jian could have easily chosen a company and earned two or three times the salary of an average person, but Chen Jian did not. Since he chose to pursue a doctoral degree, it was definitely not for the sake of making a little extra money.

The opportunity was equal for both Yan Hui and Chen Jian.

There's no rush now. Yan Hui needs to go back and find an idle factory building to rent. Moreover, this kind of thing must be applied for and reported to the government.

The chemical industry requires various qualifications, and failure to meet these qualifications can easily lead to serious pollution and various safety accidents.

The polyurethane that Yan Hui wants to produce is fine; it doesn't require extreme environments like high temperature and high pressure, and it's not a flammable or explosive substance, so the relevant approvals will be much easier.

After returning to Jinan, Yan Hui's first step was to find Zhou Ping, as he needed to assess his financial situation.

Business people certainly know roughly how much money they have, but they don't know the real-time cash flow of their various companies and factories.

He has about 40 yuan in cash, and he also has car loans and mortgages, but he's not in a hurry about those.

Regarding plywood, there's currently about 400,000 yuan in circulating funds, which is also Yan Hui's money. Given Yan Hui's current credit, theoretically, he could demand all payments and goods in advance, but doing so wouldn't be appropriate. Therefore, he still has a small amount of capital involved in plywood transactions. This portion of funds should be available by the end of November, and with the conclusion of this year's plywood business, it should generate an additional profit of approximately 300,000 yuan.

The steel formwork company currently has approximately 250 million yuan worth of steel formwork available for rent, with 40 yuan in deposits. Yan Hui had discussed with Zhou Ping that this money could be used to purchase more steel formwork, but a portion should always be kept on hand.

Besides that, there's the processing plant. Because the price of imported timber from Lao Guo's side is low, the processing plant's profits have finally started to increase. Now, it has about 40 yuan in working capital, plus about 30 yuan in cash on hand.

In summary, including the value of the processing plant, Yan Hui's total assets have reached 500 million yuan, including a deposit of 40 yuan and a loan of about 100 million yuan, with net assets of more than 300 million yuan.

Anyone who has done business knows that Yan Hui's asset allocation is very healthy, and his loan amount is very small. If Yan Hui hadn't ventured into the chemical industry, he wouldn't be so likely to go bankrupt now.

Compared to the Jianye era, Yan Hui's current processing plant and steel formwork leasing are both asset-heavy projects, the latter of which has no loans yet, and his plywood business has achieved a regional monopoly. Currently, Yan Hui can easily earn over 100 million yuan annually, and with a little effort next year, a net profit of 200 million yuan is within his expectations.

Most people would have already succeeded by this point. Reaching this stage at 24, the rest of the time would be about settling down and enjoying life. If Yan Hui hadn't experienced Jianye's crushing defeat, he'd probably be arrogant by now.

The money I can currently come up with for investing in the chemical plant is 40 yuan from my personal funds, 30 yuan from the processing plant, and 70 yuan from the plywood business at the end of the year, totaling 140 million yuan.

As a result, he was basically out of money. The processing plant's working capital couldn't be touched; this money needed to keep circulating. The steel formwork company was currently a stable source of profit, and it was impossible to withdraw investment there. As for the plywood, after the start of next year, it could be taken from the processing plant's profits for working capital purposes, so there was no need to worry about that.

In addition, Yan Hui needs to prepare about 20 yuan for year-end bonuses and departmental expenses. 120 million yuan is currently enough to get this industrial laboratory up and running.

After returning to Jinan, Yan Hui contacted several familiar business owners, reached out to the government of the High-tech Zone, and met with relevant leaders to discuss the matter.

"An environmentally friendly polyurethane laboratory?" Upon hearing this, the relevant leaders immediately took it seriously. "Mr. Yan, before you came here today, I heard entrepreneurs in our district mention you, and they all spoke highly of you. We warmly welcome your investment in our district, especially this laboratory you mentioned, which involves several PhDs. This is a major event for our district, and we are willing to provide as much support as possible. I wonder if Mr. Yan has a proposal here? Could you provide me with one? I'll go and report this to the leaders today."

The High-tech Zone entered a phase of rapid development after 2001, receiving substantial policy support and significant attention from leadership. Yan Hui hadn't expected that simply connecting with a deputy section chief in the Economic and Trade Commission would immediately garner such attention. Judging from this leader's tone, Yan Hui's matter would soon be reported to the district committee.

There are roughly four steps to building a chemical plant, and we are currently only at the first step: project initiation and planning.

This step, which might only take others a few months, will take Yan Hui at least two years.

Yan Hui and Chen Jian have been communicating for the past few days and have produced a "Project Feasibility Study Report". Although it is not detailed enough, it is sufficient as a preliminary introductory document.

This document briefly outlines the market prospects, technical solutions, and investment estimates for polyurethane, with a focus on the plan for constructing a laboratory, including the necessary permits and licenses.

If it's a formal factory construction project, the report needs to be more detailed, and it will also require contacting the Land and Resources Bureau and the Planning Bureau to obtain the land use certificate and construction land planning permit. Yan Hui doesn't need these documents yet, but there are two entities he can't bypass.

One is the Environmental Protection Bureau, and the other is the Safety Supervision and Administration Bureau, also known as the Safety Supervision Bureau.

Yan Hui contacted a leader from the Economic and Trade Commission, who was also an expert. He took Yan Hui's materials and started flipping through them.

As a leader, he had seen countless projects, most of which seemed unreliable at first glance. However, as the head of the Economic and Trade Commission, even unreliable projects had to be given a try; no place would refuse investment, especially in the real economy.

Every real economy industry can drive employment and tax revenue, and also nurture related industrial chains. This is the most stable driving force for local economy.

Today, after reviewing Yan Hui's project, the leader was particularly pleased: "I noticed you mentioned here that you have two PhDs from Beijing Institute of Technology, two postdoctoral fellows from Beijing Institute of Technology who returned from overseas, and about three master's students?"

"This is the plan, and we can guarantee at least 70% of the participants will come," Yan Hui said, not daring to make any definitive statements.

"That's quite remarkable! This is a big deal. I think your report is fine. Give me a call, and I'll definitely contact you this week." The leader accepted Yan Hui's materials.

(End of this chapter)