Chapter 728 Control the supply chain

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Dongshan Group, Zhao Jinshan held the last quarter's financial report with a smile on his face.

This year's thermal coal price is not lower than 800 yuan. Even a money printing machine is not as fast as our mine. We will make a lot of money this year! Zhao Jinshan continued; Now that the coal market is good, we have to increase investment.”

I don't think so. Li Weidong shook his head, and continued; The market for coal should be good next year, but this cycle of coal is coming to an end. We have to shrink our business to prepare for the cold winter of the coal industry.

Zhao Jinshan was slightly taken aback, thought for a few seconds, and then nodded: Listen to you, your judgment on the market has always been the most accurate. If you say shrinking the coal business, then we will shrink it!

Coal prices are always cyclical, with a cycle of about four to six years. The last time coal prices fell was in 2008, when the price was at its peak, the price of coal once exceeded four digits, and the fluctuations were calculated in minutes. However, prosperity has turned into decline. The outbreak of the subprime mortgage crisis has led to a global economic recession, and coal prices have also begun to fall.

With the introduction of the four trillion economic stimulus plan by the country, large-scale investment in infrastructure construction, the production of steel, cement, and various building materials used in infrastructure construction is inseparable from coal, so coal prices have risen again. As the United States emerged from the subprime mortgage crisis and the international economic situation recovered, domestic coal prices reached a peak again in 2011.

After the peak, is the beginning of the next cycle. In 2012, the price of coal has begun to fall, but because the production capacity has reached the peak, the profit of coal companies is not bad due to the large number of sales.

By 2013, China's economic growth rate began to slow down, the demand for coal decreased, and the country began to import coal on a large scale. This year, China's coal imports reached 350 million tons, compared with only 50 million tons five years ago.

The increase in imported coal has caused coal prices to fall rapidly, and coal prices have also dropped from the peak of thousands of yuan per ton to more than one hundred yuan per ton.

As a result, the profits of coal companies have been greatly reduced. Large coal companies have basically cut their profits in half for three consecutive years. Smaller coal enterprises simply lost money. Those local tyrants who got rich with coal in those days have all become local turtles.

The coal market did not start to improve until 2016, and then began to soar all the way. In 2021, it once reached 2,000 yuan per ton. At that time, you will feel that coal at 800 yuan per ton was really cheap.

In the face of the coming coal recession cycle, it is obviously a deadly act to continue to increase investment.

Dongshan Group's coal mining business will also shrink. Li Weidong even thought about buying bottoms at low prices when the coal industry fell to the bottom in 2015.

Li Weidong continued; The coal business will shrink, but the real estate business can expand, such as some new first-tier cities, and second-tier cities. We can invest on a large scale, such as the provincial capital cities in the southwest, and several along the Yangtze River. An important town, the future economic development is promising, and if you go there to do real estate, you should have a relatively rich return!

I am quite optimistic about that kind of large-scale commercial complex. It is a one-stop shop for eating, drinking and playing. You can make a lot of money by collecting rent. Many real estate companies are doing it. Shall we give it a try? Zhao Jinshan asked asked.

You only see thieves eating meat, but you don't see thieves being beaten! Large-scale commercial complexes make money, but the management level must keep up. Without high-level management, they will go bankrupt soon, and large investments will also We lost everything. We don’t have management talents in this area.” Li Weidong said helplessly.

A large-scale commercial complex is indeed a money printing machine if it is done well, but if it is not done well, it will become a bottomless pit. There are commercial complexes that have closed down in every city. Some have never been popular since they opened, and some were very popular a few years before they opened, and then they pulled their hips.

In addition to location, facilities, and other hardware factors, the most important thing is operational capabilities. Those commercial complexes that operate well must have the support of a strong operating team behind them.

Commercial operations are not Dongshan Group's strong point. Hong Kong-owned real estate companies have decades of experience in this area, and state-owned real estate companies also have a good reputation. It is difficult for Dongshan Group to compete with them.

However, Zhao Jinshan was a bit stubborn. He said, There are no talents. We can hire a high salary, or find a mature operation team. You see how beautiful those big commercial complexes in Beijing are, they are crowded with people every day. That is Really make money, if we don’t do it, it’s really a pity.”

That's fine. If you want to do it, let's try. But the competition in the first-tier cities is too fierce, and the market in the third-tier cities is not big enough, so let's focus on the second-tier cities!

Li Weidong pondered for a few seconds, and then said; In addition, I have a suggestion. If it is a large-scale commercial complex, it should mainly introduce catering and experience businesses, and even invest in a few brands of this type. There are still fewer retail businesses. good.

Aren't you optimistic about the retail industry? But those commercial complexes are all supported by big retail brands. Zhao Jinshan said.

People's consumption patterns are changing. You should have read the news about Double Eleven of a certain treasure. Although it has only been in operation for two years, it has grown very rapidly. The Internet will change the entire retail industry. The traditional offline model, It will be gradually replaced by the online model. But experiential consumption cannot be replaced by the Internet for the time being.”

Li Weidong paused, and then continued; As for those top brands, they must give priority to well-known commercial complexes to settle in. How could it be our turn? Rolex can't be stupid to come to us to sell watches, right? We have just entered this field, Thank goodness for attracting a brand like KFC!

Although Zhao Jinshan felt a little unhappy at being insulted by Li Weidong's words, he had to admit that what Li Weidong said was right.

With the development of the Internet, consumption patterns have changed, and commercial complexes have changed from the so-called integration of eating, drinking, playing, and shopping to integration of eating, drinking, playing, and shopping, and shopping has gradually disappeared. The retail industry has shifted from offline to online. Not to mention clothes, shoes and socks, even daily necessities such as toilet paper are purchased online.

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When there are no blockbuster movies in theaters, many commercial complexes simply become big canteens. Ordinary families come here with their families just for the next restaurant, so-and-so waits in line for hot pot, but brand stores are empty.

Li Weidong continued to introduce; If it is really difficult to attract investment, we will invest in a few franchise stores by ourselves, such as hot pot, barbecue, milk tea, and fast food. The franchise stores are all standardized recipes, and even the cook is saved. Food safety can be guaranteed, a few waiters can be recruited, and the business can be opened after training.”

Hearing what you said, it's really easy to open a hot pot restaurant. Anyway, they serve raw meat and lettuce, and let the customers boil them themselves. If they are not cooked well or they are too old, the guests have to recognize it themselves, saving the cook. If it doesn’t taste good, you have to be blamed.”

Zhao Jinshan laughed, and then said: Or else I should start a hotpot brand! Isn't there Donglaishun and Xilaishun in Beijing? Everywhere in the country!

If you want to engage in a hot pot chain, you should consider Sichuan-flavored hot pot! Li Weidong said.

Why? The taste of Beijing-style hot pot is no worse than that of Sichuan-style hot pot! And not everyone can eat spicy food. Zhao Jinshan said.

Li Weidong replied: Think about it, what if the guests have diarrhea after eating the hot pot? If it is a Sichuan-style hot pot, it can be said that eating too spicy stimulates the stomach, but if it is a Beijing-style hot pot, the guests will most likely have to think about the ingredients. Is it fresh, and the hot pot restaurant will not be able to blame it!

It makes sense! You can imagine this, you are really a natural material for doing business! Zhao Jinshan nodded suddenly.

One more thing, I plan to sell all the shops on Hong Kong Island. Li Weidong continued.

Sell it all? Why? Your shops can earn a lot of money every year just by collecting rent, and the rate of return is several times higher than that of bank financing! Zhao Jinshan asked in a low voice with a mysterious look on his face. : Is there going to be another financial crisis? The property market on Hong Kong Island is going to fall?

You think too much. There is no financial crisis. In the short term, Hong Kong Island's property market is still bullish. In the medium and long term, the rate of return on rent for shops will exceed that of bank wealth management products. I want to sell the shops because I am simply short of money. Li Weidong replied.

You, Li Weidong, will be short of money? Hehehe, don't you usually read all kinds of rich list? When is your name, Li Weidong, not ranked in the top? If you are short of money, I will starve to death three times! Zhao Jinshan happily Said.

I want to make a long-term investment, so I need to withdraw part of the funds. Li Weidong continued to answer.

I bought those shops on Hong Kong Island for you back then, but the prices have skyrocketed over the years, especially those shops in Causeway Bay, a small place of tens of square meters, now worth hundreds of millions of Hong Kong dollars! If you sell them all If so, it is estimated to sell for billions of Hong Kong dollars! What kind of big project are you planning to do? Zhao Jinshan asked.

Li Weidong didn't hide anything, he said, I plan to make chips. This is a long-term investment project. It would be good to see results within ten years. The investment in the chip industry is very huge, let alone billions of Hong Kong dollars. When tens of billions of dollars are poured in, it's only audible!

A few years ago, I invested in a sensor factory, and now I can make sensors for general household appliances. Now Jaguar Land Rover has built a factory in China, and in the future, it will jointly develop electric vehicles with BYD, which will require a large number of automotive chips. So I cooperated with BYD and planned to build a company that produces chips for cars.

...

The past few years have been the golden age of the coal industry. Mining coal is like printing money. Especially after the state rectified and shut down a large number of small coal mines, medium and large coal mines have become large-scale money printing machines.

Now coal prices are about to usher in a cyclical adjustment, and this money printing machine is about to be shut down, but fortunately, real estate has begun to rise rapidly. Dongshan Group has already had a plan in this regard, and the real estate business can still bring Li Weidong a lot of capital income. .

In the next seven or eight years, real estate will continue to be hot. At this time, there is no need to consider any risk issues. It is right to expand without thinking. The faster the expansion, the greater the income, and the restraint will reduce the income.

Li Weidong needs funds, mainly for the chip industry.

If you want to get involved in the chip industry, you must have a lot of funds. The demand for funds in this industry is too great. For the chip industry, hundreds of millions of dollars is just a big deal.

The US$55 billion chip bill in the future in the United States sounds like a lot, but it is only a drop in the bucket when it is invested in the entire chip industry. As far as the chip industry is concerned, let alone tens of billions of dollars, even if tens of billions of dollars are invested, it may not be possible to create a complete chip industry chain.

As for automotive chips, if it is not to ensure the safety of the supply chain, it is not cost-effective to develop this industry exclusively. It is much cheaper to buy finished products directly than to start from scratch.

The market size of automotive chips is still very large. A traditional household fuel car needs about 500 to 600 chips, luxury fuel cars can use 800 chips, and ordinary new energy vehicles can use more than 1,000 chips. , while high-end energy vehicles, such as those with intelligent driving functions, require more than 1,500 chips.

In terms of quantity alone, the demand for automotive chips is second only to household appliances.

However, the profit of automotive chips is not large, which belongs to the type of small profits but quick turnover. Because the volume of the car is relatively large, there is no requirement for the size of the chip used in the car.

Cars are still different from mobile phones. In order to pursue thinner and lighter electronic products, mobile phones and other electronic products use chips with smaller volume and faster computing speed. A mobile phone can weigh dozens of grams, and even a millimeter thinner can be considered selling point.

The speed of one chip used in the car is not enough, so use two chips. Two chips are not enough for Simei. Anyway, a car weighs two tons, so it doesn't matter if you use a few kilograms more chips. The larger the chip, the bigger the chip, there is room to install it.

It is also for this reason that most of the chips used in cars are low-end chips, and only some intelligent systems, such as autonomous driving and AI services, will use high-end chips.

Low-end chip technology has a low threshold and is easy to manufacture. In the chip supply system, it belongs to the category of large volume and full control, and the profit is naturally low. Moreover, the car market has been divided up, and it is difficult for latecomers to enter this field.

To give a simple example, TSMC began mass production of 7nm chips in 2018, while the previous 10nm, 14nm, 22nm, and even 90nm production lines will continue to operate, and the low-end production lines will be converted to the production of automotive chips.

TSMC has accumulated many years of technology and experience in these low-end production lines, which can control costs, and the products also have relatively good performance and yield, so they will naturally be more competitive in the market.

The same is true for other established chip companies. Although they have completed technological upgrades and can produce more advanced chips, they are still mature in old technologies.

However, companies that are new to this field are inferior to established companies in terms of technology, experience, management, and cost control, and their products are not competitive enough. In addition, they are new brands that are not recognized by the market, and it will be much more difficult to survive. .

This is also a common feature of the manufacturing industry. The manufacturing industry that has been upgraded from the low-end step by step has more advantages than the half-way monks.

It's like playing a game. Player A trains his account from scratch, collects dungeons to get a good equipment, and slowly upgrades from bronze to diamond. Player B directly buys a diamond account equipped with good equipment. You let two people pk , the high probability is that Player A will win.

From a market perspective, it is true that making automotive chips is not as good as buying them. Even if you spend a lot of money to produce automotive chips, you may not necessarily gain a competitive advantage. Of course, Li Weidong understands this.

However, from the perspective of supply chain security, it is necessary to realize the independent production of automotive chips.

Not to mention that there will be a shortage of automotive chips in the future, which will lead to a sharp drop in global auto production. The rapid development of new energy vehicles in China requires an independent supply chain of automotive chips.

If it is just new energy vehicles replacing traditional fuel vehicles, it may not matter whether there is an independent automotive chip supply chain.

But cars have already begun to develop towards intelligence. In the future, when the Internet and new energy vehicles are more and more closely connected, and when automatic driving gradually becomes popular, a certain country will definitely be unable to sit still and wave sanctions against China's auto industry. , nor is it unfounded.

...

In the past few years, the state has been implementing the plan of sending home appliances to the countryside. In 2010, the policy of sending home appliances to the countryside stimulated a consumption of 300 billion yuan in the home appliance industry, and by 2011, this figure exceeded 400 billion yuan.

This has also allowed major home appliance companies to make a lot of money, such as Haier, whose sales in 2010 exceeded 50 billion. Other companies such as Gree, Hisense, and Midea also made a lot of money.

Puppy Electric is also a beneficiary of the policy. Although Puppy Electric does not produce large appliances, the sales of various kitchen appliances are still quite good. No one can afford a microwave oven!

However, after entering 2012, the subsidies for home appliances going to the countryside began to decrease, which is also bad news for home appliance companies.

However, in the next few years, the entire home appliance industry will not be affected, but will see a sharp increase in sales, which is also due to the rapid development of the real estate market.

At that time, buying a house was still mainly for those who just needed it. Since the house was bought to live in, it must be equipped with various home appliances, such as TVs, refrigerators, washing machines, air conditioners, etc., especially air conditioners. One needs to be installed in each room, and several air conditioners need to be purchased for a flat, so the sales volume will increase. Gree's financial report in those years is also particularly impressive.

The consumer market has always been growing, so for the home appliance industry, the biggest hidden danger comes from cost.

In the Puppy Group, Wang Jiuyang was holding the financial statements and complaining to Li Weidong about the rising costs.

In the past two years, our labor costs have increased a lot. Wage growth is one aspect. The most important thing is the expenditure on social security and medical insurance. According to this year's social security base, our factory will increase the cost by more than one billion yuan a year. Wang Jiuyang said.

Li Weidong sighed helplessly: Paying social insurance to workers is the obligation of the enterprise. In the past, the laws and regulations were not perfect, and the policy implementation was not strict. Now it is only implemented according to the regulations.

Of course I understand, but the social security base will definitely increase. This year it will be more than a billion, and it may be several billion in three to five years. This is too much of a burden for us. Especially on the factory side, our generations The factory employs more than 200,000 workers, all of whom pay social security and medical insurance, which is really a huge burden.

Wang Jiuyang went on to say: What's worse is that we pay workers social insurance, which increases their own burden, and workers have rebellious emotions. Because this social insurance also has to deduct part of the workers' wages, the result is that the workers get more money than the workers. It turns out that there are fewer, but many workers are unwilling.

Some workers simply said, I don’t want social security, you just send me the money for social security. In that case, the workers will get more money, and we can save costs, but it violates the policy. It’s really a dilemma!

There is no dilemma, national policies and regulations must be implemented! Li Weidong continued: The workers recruited in our factory are basically from the countryside. Farmers have not enjoyed pensions, so naturally they cannot appreciate the benefits of social security. They value it more. Immediate benefits.

Moreover, the social security has to be paid for a sufficient number of years before they can receive it. Many migrant workers are only part-time workers, and their mobility is relatively high.

These problems cannot be solved by us. The state needs to step up its policy propaganda. It is difficult to change a person's concept. With such a large population, it will take one or two generations of efforts to establish a complete social security system.

As long as our company does its own thing well, the problem of increasing social security costs really needs to be resolved as soon as possible. Nowadays, the reason why our products have a price advantage is that the low labor cost is a big factor. If the labor cost rises, we will lose the price advantage and our competitiveness will also weaken.

As Li Weidong said, he fell into deep thought.

Although China established a social security system in the 1990s, for a long time after that, only regular employees of state-owned enterprises and employees of foreign companies could enjoy social security, and many private enterprises did not pay social security to workers.

In particular, some labor-intensive enterprises rely on low labor costs to grab orders, and the turnover of workers is high, so they will not pay social security for workers.

It was not until 2008, when the Ministry of Personnel and the Ministry of Labor and Social Security merged into the Ministry of Human Resources and Social Security, that the country began to strictly implement the social security payment policy. In 2010, the Social Insurance Law was passed, which legally guaranteed the legitimate rights and interests of citizens to participate in and enjoy social insurance, and China's social insurance payment has gradually entered the right track.

Although there are legal guarantees, there are still many private enterprises and self-employed businesses who do not pay social security to their employees, but in general, social security is developing in the direction of standardization.

The standardization of social security payment naturally increases the cost of enterprises, and labor-intensive enterprises are the most affected. It was at this time that foreign-funded companies such as Nike and Adidas took the lead in transferring orders to countries with lower labor costs such as Vietnam and Bangladesh.

The production factories of household appliances and electronic products also require a large amount of labor. The standardization of social security requires the Puppy Group to pay more than one billion yuan a year to pay social security and medical insurance for employees. And with the increase of the base in the future, this figure It will also increase exponentially.

Li Weidong is not a black-hearted capitalist, and paying social security to workers is a matter of course. However, the home appliance industry is relatively introverted and the competition is fierce. Chinese home appliance companies basically rely on low prices to compete with international brands. The increase in the cost of production will reduce the competitiveness of enterprises, which is what Li Weidong cares most about.

National policies must be implemented, and social insurance must continue to be paid. Li Weidong can only find ways to reduce costs in other ways.

After a little thought, Li Weidong said: I have three ideas, which can reduce costs to a certain extent. The first way is to transfer part of production capacity to Southeast Asia, such as Vietnam, Cambodia and Indonesia, where labor costs will be lower than those in China. Some.

Wang Jiuyang immediately answered: We have also done research in this area. The labor cost in Southeast Asian countries is relatively low, but the infrastructure is not perfect, the discipline and work efficiency of the labor force are not as good as ours, and there is also a lack of supply chain. If the investment risk is added, the current cost is not lower than that in China.”

Yes, Southeast Asia has potential for development, but it is not worth investing in right now. Li Weidong continued: Then let me talk about the second method, which is to engage in automated production and replace manpower with machines.

We have also done research on this aspect. I also sent people to Europe to visit Siemens' robotic assembly line. The efficiency is quite high. A production line can be worth hundreds of workers, but the investment is also high. The price of that production line But it is very expensive, more expensive than directly employing people. Wang Jiuyang replied.

German labor is inherently expensive, so it is more cost-effective for them to replace human labor with robots. Our national conditions are different from those of Germany. Our labor costs are not so high, so we cannot copy the German way. Li Weidong sighed and continued:

The Germans are eager to use robots in the entire production line to achieve fully automated production, but we can use robots in partial production links to replace only part of the manpower. In this way, labor costs can be reduced and excessive capital investment can be avoided.

Seeing that Li Weidong wanted new instructions, Wang Jiuyang subconsciously took out his pen and notepad.

Li Weidong went on to say: There should be many domestic and foreign companies engaged in industrial robots. Foreign technologies must be relatively mature, but I am more inclined to give some opportunities to domestic companies. We can invest money and entrust domestic companies. Specialize in the research and development of industrial robots for us, and negotiate the distribution of patent rights, maybe we can take the opportunity to make money!

Are you still planning to sell the robot to other home appliance companies? Wang Jiuyang asked with a smile.

The replacement of manpower by machines is the trend of industrial upgrading. If we use robots to reduce costs, other home appliance companies will of course have to follow suit, otherwise they will have no price advantage. And it is related to the production of products, which is our core The business must be in your own hands, and you can't be stuck by others!

Li Weidong continued: This is a gradual process. It may take us more than ten years to complete this goal. You don't have to worry. I think that if half of the workers can be replaced with machines within ten years, it will be enough. It's a very satisfying result.

Okay, I'll send someone to do some research, and then make a more specific proposal for you. Wang Jiuyang replied.

The third way is to make a fuss about the supply chain. Technology is advancing, and the application of new materials, new technologies, and new processes should reduce the cost of components. Our upstream supply chain will reduce prices a little bit every step of the way. , When we come here, we can save a lot of money. Li Weidong said.

Chairman, I'm afraid this is not easy. In the past two years, the prices of various industrial raw materials have been rising, resulting in an increase in the prices of components, but the selling price of our products has not increased, especially in the international market. If you want to compete with Japanese and Korean brands, you don't dare to lower the price easily! Wang Jiuyang said pessimistically.

This is to blame the United States. When the subprime mortgage crisis came, the quantitative easing they engaged in released so much currency, which would inevitably lead to inflation. In order to stabilize the exchange rate, other countries could only release currency along with the United States. The global Inflation is inevitable.

Li Weidong continued calmly: Since it is global inflation, other countries will also be affected by rising raw material prices. From this point of view, everyone is on the same starting line, and at this time the competition The most important thing is whose supply chain is more resilient!

Wang Jiuyang nodded half-understood, but the blankness in his eyes seemed to ask: What are you going to say?

Li Weidong had no choice but to explain: We need to scale and diversify the upstream supply chain. A large-scale supply chain can help reduce costs, and a diversified supply chain can stimulate competition. Simply put, it is to make the supply chain more flexible. Gotta involute!

Involution? What do you mean? Wang Jiuyang asked subconsciously.

This is a concept proposed by German philosophers. It means that when a type of model develops to a certain extent, there is no way to stabilize it, and there is no way to transform into a new form. It can only continue to become more complicated internally. You can understand it as In order to compete, peers put in more efforts, which leads to a decrease in the ratio of income to expenditure. Li Weidong explained.

This 'involution' is to make the upstream supply chain compete with each other, lower the price and improve the quality in the competition? Wang Jiuyang asked.

After all, he graduated from a first-class university in the 1980s, with top IQ and comprehension skills, and he understood the meaning of involution after a little thought.

Li Weidong nodded, and continued; The scale of our country's entire home appliance industry is still very large, not only for the domestic market, but also for export, as well as OEM for foreign brands, which is enough to support an upstream supplying the world. supply chain.

However, the level of these upstream supply chains is uneven. Some companies can produce very high-quality products that fully comply with the high-standard certifications of the United States and the European Union, while some products are of very poor quality and can only be sold to Indians.

This is caused by two factors. One is the market factor. There is still a market for cheap and low-quality products. Many small workshops and factories specialize in producing cheap products. Although the quality of the products is worrying, people will buy them as long as they are cheap enough.

The second is the hardware factor. Many factories hope to upgrade their scale and technology, but lack funds, especially for some small and medium-sized enterprises with potential, it is more difficult to get loans. If you inject funds into them and let them complete the upgrade smoothly, they can become quite competitive in the supply chain.

I understand that if a batch of such small and medium-sized enterprises are supported to complete industrial upgrading, then the entire upstream supply chain will also be improved to a higher level, which will generate more competition and realize the involution you mentioned!

Wang Jiuyang pondered for a moment, and then asked: Chairman, do you want to provide financial and technical support for these potential small and medium-sized enterprises? Let them carry out industrial upgrading, so as to drive the upgrading of the entire home appliance supply chain. But it will cost a lot funds?

Li Weidong smiled slightly, and continued, We are at best a leader in small home appliances, kitchen appliances and beauty appliances. How can we upgrade the entire home appliance supply chain? Even if we really want to, we are powerless! The industrial upgrading of the entire home appliance supply chain , We can’t do it without tens of billions of funds, and we can’t spend so much money.”

Wang Jiuyang glared at Li Weidong because he didn't know, and said in his heart: I don't have any money, so I'm sorry for Kang's impassioned supply chain upgrade!

Li Weidong continued: Although we don't have that much money, banks have plenty of money. Tens of billions of funds are just a drop in the bucket for the domestic banking system. Isn't it difficult for those small and medium-sized enterprises to get loans, but large groups like us Loans are easy.

You mean, we set up an investment company, get loans from the bank, and then invest in those small and medium-sized enterprises with potential? Wang Jiuyang asked.

We are in business, not investment. What's more, as long as the investment is the shareholder, the shareholder has to bear the business risk. It's just a venture capital investment. If the amount is not too big, you will lose money. It's not worth the risk.

Li Weidong smiled faintly, and continued: So I plan to set up a financial company, get loans from banks, and then lend money to those small and medium-sized enterprises with potential in the form of loans. We are only lenders, not investors. .Because if you invest, it is not easy to do asset-backed securities.

I figured it out, I paid a principal of 1 billion, went to the bank to make a mortgage loan, and after lending the money, I used it to make asset-backed securities, using it as collateral, and then borrowed from the bank, and the 1 billion funds rolled out There is no problem with 30 billion, which is enough to upgrade the supply chain.

Earn an interest difference? Wang Jiuyang said instinctively.

How much is the interest difference? Li Weidong curled his lips in disdain.

You said it was 30 billion... Wang Jiuyang muttered.

The interest difference of 30 billion seems to be quite a lot. Li Weidong also followed Digu, and then said loudly: Don't just focus on the interest, but take a long-term view. We are here to upgrade the entire supply chain. , It is for the development of the country. It’s just that this kind of operation has to be allowed by the country, and I will go to the National Development and Reform Commission to ask for policy support in a few days.”

The financial method mentioned by Li Weidong, rolling 30 billion with a principal of 1 billion, is only a conservative operation. In the future, a certain gold will use the same method, and the registered capital of 3 billion will be rolled out from the bank for more than 300 billion, which is more than a hundred times.

With a difference of a hundred times, the financial risks behind it can be imagined, so Li Weidong had to ask the state for a policy.

And Wang Jiuyang also thought of another question, and he said: If it is a loan, there is also the risk that the other party will not pay the money. These days, it is the uncle who owes the money, and the one who wants the debt is not as good as his grandson! You have to have a mortgage. .”

You don't have to worry about this. What we want to support is our own upstream supply chain. They supply to us. This is the best mortgage. If you dare to owe the debt, at worst we don't pay for the goods. Li Weidong said calmly replied.

I seem to be confused by you. We lend money to upstream suppliers. They use our money to make products, sell them to us for money, and then use the money to pay us back. I always feel that something is wrong. Something is wrong! Is it our busy work, or the supplier's busy work? Wang Jiuyang said.

It's not in vain, everyone gets what they need. Li Weidong said with a treacherous smile; The key here is actually the time when the payment is settled. We are the buyer, but at the same time we are the creditor of the seller. It means that the loan repayment period and payment settlement time are in our hands!

Since we have the initiative at the capital level, we can extend the loan period and payment settlement time through refinancing, and grasp the capital chain of upstream supply chain companies. At that time, we have the ability to break the capital chain of upstream companies at any time. If it's just one or two companies, it's no big deal, but what if the whole supply chain is like this?

Hearing this, Wang Jiuyang gasped, with a shocked expression on his face, and said in a trembling voice: That means we will control the upstream supply chain of the entire industry!

At this moment, Wang Jiuyang finally realized that what Li Weidong really wanted was not the benefits brought by introversion, but the supply chain of the entire home appliance industry!