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Chapter 152 Shareholding Restructuring

Updated: 2012-09-05

Chen Huai did not talk to Chen Dan. Xiao Li said that he met Kou Xuan in Emperor International where he was doing a "princess". He could feel that Kou Xuan was a girl with strong self-esteem. Perhaps because of her a little bit too strong, she could see the shadow of "Chen Huai" before. If she really wanted to lend a helping hand to force her, she would ask her to twist her and slide down to the other side...

Next, at the Party and Government Meeting in mid-April, Chen Huai made an internal notice to the town government of the town’s government on the equity reform plan of Meixi Iron and Steel Plant’s steel plant and this year’s steel plant development plan.

In addition to the steel mill representatives of Wang Kangsheng, Qian Wenhui, Xu Xiting, Zhao Dong and others, there were only thirteen members of the Party Committee who attended the meeting.

At the meeting, Chen Huai made it clear that the steel mill’s target this year is 400 million output value and 40 million profits.

"To achieve this goal, the steel mill's steel production this year will reach 150,000 tons. The steel mill has begun to prepare for the preliminary technology and is also in contact with equipment manufacturers. But if we want to achieve this year," Chen Huai also asked someone to prepare a writing board at the government meeting to facilitate him to intuitively draw some data and trend charts. He stood in front of the writing board and pointed to the data listed. "The steel mill will raise 30 million yuan of development funds for equipment transformation and expand power supply before the middle of the year. Currently, relying on the accumulation of profits and depreciation funds of the steel mill, it can be about half of them before the middle of the year, and there is still a funding gap of 15 million yuan..."

"Because the steel mills have a high debt ratio now, it is unlikely to add additional loans to banks in the short term; the feasible method is to raise funds. There are many ways to raise funds: borrow money to pay interest, collect deposits from workers, etc. Many companies also raise funds through these methods, some are doing well and some are doing poorly. I think we need to change it. I plan to take advantage of the opportunity of equity reform to raise equity funds," said Chen Huai, "The reason is very simple. Just like the joint venture to establish Ziluo Home Textile Company, the audited net assets of Meixi Steel Plant are currently 50 million. This is a collective property belonging to Meixi Town. All equity fundraising funds are used to calculate the shares. According to relevant regulations, plus assets to handle the funds. In addition to holding shares in Meixi Town, the restructured joint-stock company can have up to 200 shareholders. This time, I plan to expand equity in three aspects and raise funds: First, keep the interests of the steel mill management and the steel mill together, so that the management can have the motivation to develop the enterprise, rather than just mind to pry the bottom of the enterprise. This time, I plan to raise equity funds from the steel mill management to raise no more than 10%; Second, investment promotion is the top priority in the current work, and I plan to introduce foreign capital to hold no more than 10%; Third, the steel mill belongs to the collective property of Meixi Town, and safeguarding the rights and interests of the steel mill is the obligation and responsibility that everyone here must fulfill. This time, I plan to raise funds from the town government staff to raise no more than 5%..."

The only one in the town government is Guo Quan, who assisted Chen Huai in charge of the asset office, and knew the operation of Meixi Steel Plant. Although He Qingshe, Li Feng, Huang Xinliang and others knew that Meixi Steel Plant was rising and revitalizing under the rectification of Shen Huai, they did not know enough.

The annual output value is 400 million, the profit is 40 million, plus the national and local taxes that should be paid, and the total profit and tax will exceed 60 million - this number is what He Qingshe, Li Feng, Huang Xinliang and others dare not think about it before.

Although they didn't dare to imagine this data before, Chen Huai proposed it as a target, and they didn't think it wasn't too exaggerated.

The steel mill has made more than 2 million profits for five consecutive months. Even if they do nothing, their profits will exceed 20 million this year. It is not a miracle that cannot be created before the middle of the year to complete equity financing, equipment transformation, power expansion, further increase production capacity, and achieve the goal of annual output value of 400 million and profit of 40 million.

Maybe this is a miracle, but in their opinion, Chen Huai has a pair of hands to create miracles. Otherwise, why is there such a big difference between Meixi Iron and Steel Plant in the hands of Du Jian and Chen Huai?

Of course, the equity reform plan proposed by Chen Huai must solve a series of problems such as management holdings and introducing foreign shareholders at one time, which is equivalent to allowing Meixi Iron and Steel Plant to make a complete change in its management structure. The steps are quite large, and He Qingshe, Li Feng and others should not have supported it, but Chen Huai also expanded the investment target to the town government, so they had to consider what benefits this would bring to them.

He Qingshe, Huang Xinliang, Li Feng and others are more concerned about the development of the domestic steel industry.

It is obvious that domestic steel has been in short supply for a long time. In 1993, the proportion of steel imported from overseas was close to 20%, which consumed a lot of foreign exchange.

The reason why Meixi Iron and Steel Plant has been struggling in the past is that the market is not bad. After all, some people are too greedy and their management and technical level cannot keep up. Judging from the profit levels of domestic first-class steel companies such as Baosteel, Meixi Iron and Steel Plant can achieve an output value of 400 million yuan, and the profit of 40 million yuan is not an exaggeration.

Even if the net assets of the steel mill increase to 80 million after the equity reform, the profit of 40 million means a 50% asset appreciation rate. That is to say, if you invest 20,000 yuan in the steel mill, you can increase your value by 30,000 yuan in a year; if the situation does not change or even better next year, you can increase your value by more than 45,000 yuan.

It has more than doubled in two years, and the investment opportunities for making money are placed in front of everyone. The temptation is quite great. For He Qingshe, it doesn’t matter if he borrows 100,000 yuan from relatives and friends and invests 200,000 yuan to the steel mill, even if he is not a good person, he is the mayor.

"This is the equity reform plan that the Assets Office has made this month. We don't vote anymore. If we agree, we will sign our own name..." Chen Huai handed a stack of plans to He Qingshe first.

He Qingshe took the plan and it took Chen Huai nearly two hours to explain the plan. He didn't have to open it and take a closer look. He looked at Guo Quan and thought to himself: You guy, Tiexin and Chen Huai have left. This matter has been going on for a month, and there is no wind at all.

He Qingshe thought he should be angry, but he really couldn't get angry. He knew that Chen Huai or Guo Quan would breathe out with him in advance, so he would be more likely to try hard to convince Chen Huai to give up this plan.

It’s okay to say Ziluo Family Sha. After all, the scale is small, and the town has only taken out four million assets, mainly land and factory investment. Meixi Steel Factory is a key enterprise that the municipal government is focusing on. Equity reform must be approved by the city. Another thing is that letting management hold shares is equivalent to letting management become the boss of the factory and the capitalist. This will spread. How many gossip and scolding will it cause in society these days?

Think about it again, the reason why Meixi Town and Meixi Steel Factory have undergone earth-shaking changes in the past six months is inseparable from Chen Huai's fierce courage to move forward.

There are always factors in the occurrence of miracles. Without the drastic rectification of steel plants in Shen Huai, how could the steel plants take off so quickly and so high in half a year?

He Qingshe thought that even if he did not have the foresight and ability of Chen Huai, he should have the courage to follow and support. Thinking of this, He Qingshe took out a pen from his pocket, signed the name behind several proposals, and handed it to Li Feng, who was sitting on Shen Huai's left.

Li Feng also knew that after signing the letter, he would have to write down any principled issues, and everyone here would have to recite the responsibility together. After hesitating for a while, hesitating, he would still sign the letter.

Looking at the Party Committee members, Wang Kangsheng, Qian Wenhui, Xu Xiting and others signing the plan one by one, Chen Huai told He Qingshe: "The equity reform is mainly Qian Wenhui and Guo Quan. If it goes well, the expansion of the steel mill can be completed before August. After that, the Jianggang Wharf project will be launched. Leave us with preliminary work, it will take less than four months. Zhao Dong will be responsible for this project on the steel mill. Is it up to you to keep an eye on the town?"

Hetang Town finally could not refuse the conditions for Chen Huai. After discussion within Hetang Town, it agreed to allocate the two villages of Lishe and Caijiaqiao to Meixi Town so that Meixi Town can have river bank resources and facilitate the steel plant to build a river port wharf in Lishe Village. The condition is that Meixi Steel Plant will build a high-grade highway on the new border of the two towns so that the two towns can plan industrial parks at the same time on both sides of the road.

Whether it is the administrative area adjustment of the two towns, the Jianggang wharf project, or the planned large-scale industrial park, it is not enough for the two towns to trade privately.

These things need to be discussed and approved by the district standing committee meeting and submitted to the municipal government for approval. A series of procedures can be completed without being so simple. In addition, the design institute is asked to complete the survey, design and dock project review work, and the four-month preparation time is really tight.

Chen Huai and Yuan Hongjun communicated with each other, and the administrative area was mainly adjusted by Hetang Town, and applied to the district. Yuan Hongjun will go to the district to find Yang Yuquan today, Pan Shihua will report on this matter, and first test the meaning of the district.

Of course, if you really want to enter the operation period, either Chen Huai or He Qingshe must have someone watching this matter. Chen Huai doesn’t want to have no free time and wants He Qingshe to catch this matter.

He Qingshe nodded and took over the matter. He thought to himself: Chen Huai's pace is really big. If the steel plant equipment renovation and power expansion are needed, 30 million will be invested in. If Jianggang Wharf starts construction this year, add a two-kilometer highway and get 30 million out, it is probably not enough.

But fortunately, the reconstruction and widening projects of Meixi Iron and Steel Plant as the main body, the reconstruction and widening of Meixi Bridge and Xiamei Highway must be mainly based on the town government.

He Qingshe thought, at the speed of Chen Huai, once the steel mill equity reform was over, he would promote the reconstruction of Meixi Bridge, but how to fill the gap of 20 to 30 million yuan in the road and bridge project?

Everyone signed the letter, and the plan was handed back to Chen Huai. He looked at it for a moment and said, "The plan will be submitted in the past two days, but I hope everyone will not talk too much about this matter..."

He Qingshe understood Chen Huai's concerns. After all, the steps taken by this restructuring were too big, and naturally contained great policy risks. Once it attracted widespread attention and controversy from the society, even Tan Qiping might not be able to withstand the pressure.

If you don’t want this revision to be still in the womb, the best way is to focus on doing things to avoid unnecessary controversy.

Chen Huai threw the plan for everyone to form a resolution to Guo Quan and announced the end of the meeting.

The reform materials need to be further prepared, and the management's shareholding ratio this time must reach 10%. But Jiang Kangsheng, Qian Wenhui, Xu Xiting and others have millions of funds to hold equity? This also requires negotiations with Yexin Bank and requires Yexin Bank to agree to provide equity mortgage loans.

Only after all these work are prepared will Chen Huai report to the district and municipal departments at the right time to complete the reform matters quickly and neatly, which will avoid causing major controversy.

After the meeting, Chen Huai asked Zhao Dong to the office and asked him: "Xu Xiting and Wang Kangsheng are only willing to hold 5% of the shares; I hope you will take over the extra share of the two of them. Is there any pressure?"

"If there are too many lice, you are not afraid of biting. Others are million-dollar 'rich' men. I can also say that it is just a negative 'negative'," Zhao Dong pulled up a chair and sat down in front of Shen Huai. "Do you really not plan to hold shares?"

"I have told you this. In China, there is no good thing about being an official and becoming rich. Only by not taking advantage of the benefits can I handle the righteous and push forward the reform. If I have too much selfishness, my confidence will not be strong enough." Chen Huai said.

"Depending on Mayor He and Secretary Li and others' meaning, I will probably invest money in," said Zhao Dong.

"Their sharpness is not as fierce as I show, so they will not be hated. In another way, Lao He and Lao Li are both over forty years old. Now they are promoting the younger cadres. If they go up, they will stop working as deputy positions in districts and counties. They will invest money in steel mills. At this time, they will support the development of steel mills. When the steel mills develop in the future, they will use this equity as pension, and they are not afraid of others making any comments. Even if someone is entangled, at worst, they will be inappropriate, and there is no regret for this," Chen Huai said self-deprecatingly, "I can't do it, I'm a big addiction to the officials."

"..." Zhao Dong smiled.
Chapter completed!
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