Those Years When I Was Forced to Top the Forbes List

Chapter 323 Moving at breakneck speed!

After returning from Mayor Huang's office, Chen Xuebing fell into deep thought.

Two days later, in the morning, in the chairman's office.

"Shenzhen is not as good as Shanghai."

Kan Zhidong crossed his legs and pointed in the direction of the sun—which was in the southeast, towards Shenzhen.

"Look at the kind of people who go to Shenzhen to start businesses! They're all peasants, or as the locals say, 'scoundrels'! Back when I was supporting new projects in Shenzhen, it was incredibly difficult to find them! Those people have absolutely no financial background!"

Lu Xiaochun touched the gold-edged button on his sleeve, a hint of Shanghai superiority playing on his lips: "I also think that Shanghai is better for doing finance. If we want to go international from Shenzhen, Hong Kong's policies will have to be more open."

"Huh? I never said Shanghai was the best!" Kan Zhidong stared, his tone shifting:

"The Shanghai and Shenzhen stock exchanges have been competing for years! At first, they were competing to see who could rise faster, then they were competing to see who could fall faster, and who could make it easier to buy at the bottom! They both have a petty mentality!"

"For finance, the best place is still Beijing! Shenzhen's primary market and Shanghai's secondary market can't compare to Beijing's regulatory market."

"Speaking of talent, Tsinghua University, Peking University, Central University of Finance and Economics, Renmin University! Many top talents don't go abroad after graduation; their first choice is to stay in Beijing!"

"Speaking of resources, the China Securities Regulatory Commission, various ministries, state-owned enterprises, and head offices—which one isn't in Beijing? Just run around the Financial Street, and all your problems will be solved!"

"I, Old Kan, now have your backing, this cash cow, and I still have some influence. If you trust me, let me go to Beijing, and I'll pave a bright future for you!"

Kan Zhidong has made a name for himself in Shenzhen and Shanghai, but he has a special fondness for Beijing.

Upon hearing this, Cai Zhijian, Bi Yaxiong, and Yu Chunyin all nodded slightly.

Chen Xuebing's fingers were also gently tapping the sofa.

Seeing this, Lu Xiaochun volunteered, "Chairman, if the headquarters isn't in Shanghai, then let's open a business department in Shanghai! If you let me go back, I'll make a name for myself for you!"

This time, Chen Xuebing directly refused: "You can't leave for now. You're in charge of the Chongqing bond issue. Deal with this first, or none of us will be able to leave."

Lu Xiaochun clasped his hands together, slightly tapping his knuckles. After a long while, he nodded in agreement, acknowledging that this matter was also very important.

“Give me a year, and I will do my best to reduce this debt to over 10 billion.”

Bi Yaxiong suddenly said, "I went to investigate Chunying Special Steel. This year, the demand from downstream machinery manufacturing and automobile industries is gradually increasing, and the company has a full order book. Moreover, there will soon be a policy to jointly control production in the industry. Some steel mills will be under maintenance, which will lead to a reduction in resource supply. There are not many special steel mills in the country, and Chunying Special Steel's equipment is relatively new. I think it is a good opportunity, even better than that cement plant. If conditions permit, we can negotiate a debt-to-equity swap and inject another round of funds. In the next few years, we might be able to ride the wave of the market."

Cai Zhijian pushed up his glasses, pondered for a moment, and said, "The owner of that steel mill is actually under a lot of pressure. She has taken out another loan and is already insolvent. She is afraid that she will not be able to turn things around, so she is forcibly pushing production. If we are willing to take over, we may be able to get the controlling stake as well."

Chen Xuebing has a deep understanding of the steel market. The price of rebar produced by special steel will indeed rise sharply, from more than 3,000 yuan to the peak of 6,000 yuan in 2008. However, the cost has also increased, so it can only be said that the supply side will indeed become tight.

During the 2008 financial crisis, it will be pushed down by 3,000 again, and then rebound when the 4 trillion yuan stimulus package is introduced at the end of the year.

Such continuous and significant fluctuations, coupled with the fact that rebar is a major commodity, presented him with a good investment opportunity following the stock market boom.

Yu Chunyin frowned.

"That steel mill is too small, isn't it? Three 35-ton electric arc furnaces, which are considered small to medium-sized production lines, with an annual output of only over 700,000 tons. Compared to those large furnaces with an output of over 100 tons, its output is much lower, so it has no competitive advantage. The real estate industry also rarely uses special steel, so sales are a problem."

Hearing this, Chen Xuebing raised his eyes with interest: "What's going on? You all went to see this steel plant? You're all interested?"

Kan Zhidong grinned, a hint of nostalgia in his eyes: "Who in our generation doesn't have a passion for steel? Back then, the Great Leap Forward's steel production was a massive undertaking, with steel furnaces several stories high, wow, it was such a bustling scene."

“When I was little, your grandfather was recruited to work in a steel plant! Back then, working in a steel plant was a secure job. The company gave out meat, and the workers had a lot of confidence! Your grandfather was an intellectual, and he escaped a disaster because of this job. When I was a child, I liked to go to the production line to watch the furnace area!” Yu Chunyin said with a smile.

Chen Xuebing had seen steel mills before, so he understood what was going on. The old steel mill had magnificent equipment, and the process of smelting iron into steel looked like fireworks.

In that era, it was probably the ultimate toy for men.

However, Bi Yaxiong shook his head and laughed at Chunyin's argument about scale: "Small scale allows for expanded production capacity, and small production lines are the trend of the times. The world is shifting towards short-process steelmaking, and high-end special steel may require smaller-tonnage refining furnaces. Production capacity needs to be increased by adding more equipment. This steel plant has a large vacant area, which perfectly meets the requirements of industrial upgrading. Moreover, consumer demand is rising, and real estate companies' requirements should also change. We can leverage the special steel production capacity to conduct targeted research and development on high-strength earthquake-resistant steel for super high-rise buildings and low-carbon environmentally friendly building materials. Isn't the chairman thinking of building a 'smart city' based on technology? This is the future of real estate technology—lighter, more durable, and corrosion-resistant. Such a concept will definitely have a market in Shanghai!"

Upon hearing this, Chen Xuebing's eyes suddenly sharpened, as if he had been struck by something.

He took out a cigarette, lit it, and fell into deep thought amidst the swirling smoke.

Seeing that he didn't answer, Yu Chunyin assumed he didn't want to do it, and then offered another suggestion: "Shanghai. From here to Shanghai? The transportation cost is too high, isn't it?"

“Steel has a long shelf life, and we can rely on the Yangtze River transport,” Bi Yaxiong explained. “Moreover, we can take this opportunity to build a sales network along the Yangtze River and acquire other steel mills. The total production capacity of the 31 key special steel enterprises in the country is only 50 million tons, which is far from enough compared with developed countries. We are a large country in terms of population and territory. Once high-strength steel is introduced into construction and real estate, the market space will expand several times over! Look at our Jiangbei store, isn't it using high-strength steel?”

Seeing that Chen Xuebing remained noncommittal, Yu Chunyin wondered if the newly arrived President Bi was being too eager and had displeased his nephew, but he didn't want to directly embarrass him.

Just as he was carefully considering his words, Chen Xuebing suddenly raised his hand, his gaze sweeping across Cai Zhijian and Bi Yaxiong like lightning:
"They need to start the production line now, how much more money do they need?"

The office quieted down, and everyone sensed that the chairman's attitude seemed somewhat...urgent.

"The iron ore deal is settled, but the main issue is electrolytic copper... we're still negotiating with the suppliers," Cai Zhijian replied.

"How much would it cost to acquire them completely?"

They all looked at each other.

Are they really going to acquire it?

A full acquisition?
“Chairman, that’s not what I meant.” Bi Yaxiong hurriedly explained, “We don’t need to acquire this company completely. What I mean is that since we have 2.2 million yuan of debt in it, which we can’t recover in the short term, we might as well convert it into equity, try our luck with the returns, and then invest an additional tens of millions to get their supply chain running smoothly.”

“Yes, Chairman, they originally had 5.6 million yuan in debt, and their assets were valued at less than 7 million yuan. Now they have obtained a loan of 1.5 million yuan through policy. Excluding the company's cash flow, they are already insolvent. If this money is not managed well and is squandered by the management, the factory will have no choice but to apply for bankruptcy liquidation.”

Cai Zhijian also offered his advice.

Chen Xuebing smiled dismissively: "Such enterprise assessments are inherently unfair. How much money would it really take to build a special steel plant with an annual output of 70 tons? New equipment and a new plant area would cost at least 1.5 times the price, right? We still have a heavily discounted debt in the company. If we pay in full, we won't lose money."

As he spoke, he patted Bi Yaxiong's arm and said, "You chose the right direction as soon as you arrived. Smart cities require security first. You've found a foothold, and I have to support you in this. We must acquire all the equity so that we can operate independently, set our own prices, and have an advantage in future development."

At this point, he seemed somewhat excited, stood up, and began to speak with great enthusiasm:
"I think we should acquire Chunying Special Steel, expand our production capacity, and use this high-strength, earthquake-resistant steel commercial and residential building as a foundation to enter the real estate market and establish our brand! We should also use our own cement! Since the material transportation costs are relatively high and we need to consider geographical limitations, let's set up in Sichuan! Land prices in Sichuan are cheap, there are many vacant plots, and it's also a source of labor export, so let's start in Sichuan to practice! Expand our team! We need to act quickly and on a large scale! We need to produce our first batch of real estate products by the end of 2007! The second batch should be produced in the first half of 2008!"

Bi Yaxiong was shocked.

"One batch of products per year? How large is the batch size?"

Chen Xuebing held up two fingers.

"Twenty projects."

Everyone present felt a chill run down their spines.

Bi Yaxiong swallowed hard.

"Chairman, the construction cycle for ordinary real estate projects is usually a year and a half. How tall do you plan to build?"

He'd heard the chairman was quite knowledgeable in architecture, and his previous plans were considered professional, but now, even he had his doubts. Chen Xuebing walked to the window with his hands behind his back, feeling somewhat caught in a dilemma.

How could he not understand the real estate construction cycle?

But time had already come, what could he do?
Previously, due to insufficient strength, he had always thought that what happened in May 08 might really be that God didn't give him a chance, and that his rebirth came too late.

Even if they have some money now, it would be difficult to justify suddenly starting large-scale construction in earthquake-stricken areas.

He thought to himself, "I'll just pretend I'm deaf and dumb."

However, in his previous life he had been to the earthquake zone, and it happened shortly after the earthquake.

Some old buildings collapsed from the sixth floor to the basement, becoming piles of rubble below ground, leaving no trace of their collapse.

Squares across the country are plastered with missing person notices, which sadden those who hear them and bring tears to their eyes.

The People's Liberation Army and firefighters raced against time, traversing difficult and narrow paths to advance. Facing a vast battlefield with no reinforcements, they worked for many days without rest, and some even died from exhaustion on the battlefield.

When he was actually there, even though he reminded himself that he was a tough guy, he still couldn't look directly at the bed sheets and curtains that looked like human figures hanging on the street, or even the bags that were sealed with zippers, and the people sitting next to them with blank, lifeless eyes.

In his previous life, he came out of the earthquake zone and spent a long time calming down.

Can't think.

Thinking about these things, I simply couldn't control my emotions.

Bi Yaxiong's mention of earthquake-resistant steel now gives him a reason, and also serves as a reminder: you still have a chance.

This deeply affected him.

Chen Xuebing rubbed his eyes for a long time, his hands covering them. In the darkness enveloped by his hands, he seemed to see those eyes yearning for light and those outstretched hands reaching out with all their might.

He could no longer suppress it.

"Ahem." He cleared his throat, regaining a bit of composure, and said, "Twenty years ago, Shenzhen could build one floor every three days. Now we have pre-ordered parts. If we mobilize all the pre-ordered parts manufacturers in Sichuan, we can shorten the maintenance cycle. What's wrong with that?"

His voice inevitably carried a hint of reproach, which silenced Bi Yaxiong.

After a long while, he turned around and sighed, pulled a map out of the table, and took the opportunity to blow his nose while looking at the map, thus restoring the strange look from his eyes.

After looking at it for a while, he placed the map on the coffee table in front of Bi Yaxiong.

"Starting from Chengdu! Mianyang, Deyang, Ziyang, Ya'an, Meishan, Aba!"

"We don't aim for the fastest speed, but for both speed and stability. We want to expand as quickly as possible, establish ten project teams, with an eight-month project cycle and 24-hour shifts. We want to complete 20 projects within 16 months! If we can achieve this, we'll be gods in the real estate industry!"

"Can we manage ten project teams?"

"Show me the spirit of Gezhouba Dam!"

Everyone gasped.

I didn't dare to respond.

The chairman might have gone mad.

Bi Yaxiong, the person involved, could only smile wryly: "Chairman, you're as immovable as a mountain, yet as fiery as fire. You didn't even tell me beforehand. I should have at least brought a few extra people with me when I left the office."

Chen Xuebing frowned and retorted, "Your Gezhouba Group has talent all over the country, yet you can't even manage ten project managers?"

There are plenty of construction management talents in China, but he needs people who can withstand great pressure. To achieve his goals, he probably couldn't even manage as a project manager himself. He needs ten exceptional individuals, and only those who have faced the unreasonable Yangtze River currents like the Gezhouba Dam and have the awareness that "not a minute late is acceptable" could possibly accomplish this.

"It's not that we don't have enough people. Aren't you going to build a BOE factory and base stations? I've already contacted the management team these past few days! But with you suddenly asking for so many projects, it'll take time to hire more people, won't it?"

Chen Xuebing was very satisfied upon hearing this. He tapped the table and offered a deal that would drive anyone to their death: "If you meet my requirements, every project manager will receive a one million yuan bonus! Everyone in the project team will receive a hefty bonus!"

Bi Yaxiong's brows relaxed.

One million, based on the salary standards of project managers in state-owned enterprises, is enough for them to work for ten years or so.

At this price, they could directly poach talent from state-owned enterprises.

"That doesn't need to be that high, a year-end bonus of 300,000 will be enough! I can find the person quickly! You, on your side, when will you arrange the land auction?"

“The land auction is too slow. We’ll start organizing a negotiation team tomorrow and set off within three days to negotiate with local governments to buy land. Mr. Cai, could you please help us with this?”

Cai Zhijian's throat was also a little dry. He cleared his throat before saying, "Buying land is easy, but how big of land should we buy? Where will the money come from?"

"Let's acquire the land with a scale of 1500 households per project. When negotiating the terms, we can offer some preferential conditions, such as free repairs for schools and government buildings. We'll try to get a deposit first and then start the early construction phase. If that's not possible, we can do the surveying and design first, and sell pre-sales while building. We'll quickly recover funds by offering prices 3%-5% lower than the surrounding properties. I'll figure out the start-up capital. With our financial capabilities, we can't possibly recover funds before construction is completed."

After saying this, Chen Xuebing paced back and forth, his hands behind his back:

"From the very first day of this campaign, I've been making it clear to everyone! Our Gu'an Construction Group will never hoard land waiting for prices to rise, we will never have any unfinished projects, we will start construction the moment we acquire land, and we will use top-notch construction standards! For the next year and a half, we can forgo making a profit! As long as we demonstrate our strength and build up our team, after the Olympics, when we acquire land in all the major cities across the country, the local governments will look at us with respect! At that time, we will make a fortune!"

The orders came in a blur.

Everyone was a little confused.

Too intense, too fast.

But looking back at the group's development process, which step wasn't fast?

They've made so much money, yet they've hardly kept any in their accounts, but their wealth keeps growing.

Perhaps only by doing this could the expansion speed be so exaggerated; it's just that when quantified in terms of building construction, it is indeed a bit frightening.

Bi Yaxiong, however, gleaned something from the last part of the statement.

Nowadays, there are indeed many real estate companies that hoard land and wait for prices to rise, leaving projects unfinished for a long time. If so many projects could be completed within a year, wouldn't that be more effective than advertising on CCTV?

Governments eager to change the face of their cities might proactively approach Gu'an; at the very least, Gu'an's name would have a special symbol on the application file when actively soliciting bids.

But the premise is that these houses don't have any problems.

"Chairman, for a project with 1500 households, if the plot ratio is 2.5, that is, a community of 130,000 to 140,000 square meters, and it's located in one of the few cities centered around Chengdu, then there's no need to rush. We can establish a command center in Chengdu to manage and construct it as a comprehensive community with a larger scale. There's no need to limit it to 10 project departments. Let's take it slow in the first step and lay a solid foundation for the command center. A year and a half is more than enough."

Bi Yaxiong began slowly and deliberately, instilling hope in Chen Xuebing's heart.

"Oh?" He smiled broadly. "If that's the case, then I've exaggerated a bit. 25 people, can you handle that?"

(End of this chapter)