Chapter 24: Trade-offs

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The next day, April 22, Chen Shu arrived at the company and began to read the reports sent by various branches, and it was already half past nine after reading it. According to Chen Shu's idea to go to the city, Guo Huaiyi and Tong Guochang and Wei Liang have met, although no agreement has been reached, but the other party is not opposed to cooperating with Rongwei Dingsheng.

It was not too late to arrive in the city, and on the way, Chen Shu began to call Tong Guochang, and at the same time said hello to Wei Liang to come out together, and soon the three of them met together. Originally, Chen Shu was still hesitant to eat, but Tong Guochang unexpectedly ordered a steak today, so naturally there was no need to pick a place, and there were only one or two with a good environment.

In fact, this is better, mainly because the environment is quieter, and it is also suitable for talking about things during meals, so as not to be impressed by the surrounding environment.

"Didn't you call us before your business trip, I contacted the above at that time, large-scale steel companies like yours basically have the support of banks, I am very surprised that you actually set up a company, there are too few factories like you. ”

"You can casually check those listed steel companies, almost all of them have debt ratios of more than 50%, and only you private enterprises are still working hard to fight and rely on your own skills to fight the world. Sometimes I am also reflecting on why private enterprises can grow step by step with limited resources and weak market share, while the market of those who eat imperial grain is shrinking step by step?"

"Now private enterprises are frantically expanding the market, competing with those large enterprises as much as possible to compete for living space, relying on the profits they create to enhance their strength, and even holding together to enhance their strength. Look at some steel companies, in addition to asking us for money, they are asking us for money. ”

"Once they can't pay their salaries, bank loans have become their best way out, and they have spent their energy on how to borrow money from banks, rather than on how to create benefits for enterprises. At every turn, the survival and life of workers are talked about, and the workers' pension life is on the lips. ”

"There is a limit to the amount of money we are allowed to lend in a year, coupled with national policy regulation and control, whether it is a tightening policy or an easing policy, there is also a limit, but in the eyes of these people, it is the difference between lending 100 billion and 800 billion. ”

"If you can't get the money back, you want to convert debt into equity, what do you say we want that equity for? In the end, if we dispose of these non-performing assets at a low price, it is tantamount to finally trapping us, but you still have to take out a loan, and the pressure from above is too great. Companies like yours with very good business performance can't get loans, and they take all the amount, which is the so-called fairness. ”

Tong Guochang complained like this, Wei Liang and Chen Shu didn't intervene, Wei Liang knew very well what was going on, although they were a little less constrained than Tong Guochang, but there were often such problems.

And Chen Shu on the side also has a deep understanding of this kind of thing, otherwise there would not be a thing urging Chen Shu to repay the loan in advance, not because this large steel company does not consider early repayment at all, and can only use this part of Chen Shu's loan to shrink the proportion of lending.

"Where there is fairness and unfairness, now that things are like this, it would be nice to be able to fight for your own living space. I called you when I went abroad, and this time my brothers cooperated to build this steel mill, and the scale is definitely one of the largest enterprises in our Tangshan. ”

"And the level of equipment and equipment in the country is also one of the most advanced, now I am transforming Rongwei Steel, the original intermediate frequency furnace is dismantled, replaced with a larger capacity of electric arc furnace, so that not only can you use scrap steel to make steel, in the future after the new plant is put into operation, you can also use molten iron to make steel. ”

"In this way, the capacity of the steel mill can be maximized. As soon as you have given me enough money, I will start building a third furnace, so that I don't have too many nights. Of course, part of the funds will be used for the construction of the off-line rolling mill, lengthening the company's industrial chain and expanding the living space. ”

"If we can't get a loan, I'm afraid we can only raise funds to roll on the rolling line, and then make money and then go to the third furnace, which virtually delays the time cycle by more than a year. ”

"People like us have been chasing business opportunities and grasping business opportunities, and at the same time, we are constantly paying attention to the national industrial policy, and if we are not careful, we may enter the footsteps of elimination. It is very difficult to get to this point, and I don't want the fruits of my hard work to fly like this. ”

"Our steel industry policy in Tangshan is to dismantle all blast furnaces below 300m3 by 2010, so the Great Wall and Bohai steel groups were established. In my opinion, it's just a look, it's a way to get no money. Now that various companies have begun to make money again, it is estimated that they will give up joining the group to rebuild their own blast furnaces, and the so-called group is just a helpless move. ”

"The new blast furnaces are all big for small, drilling is the country's loopholes, it seems that the small blast furnace has been demolished, in fact, the production capacity is growing rapidly, but this is only the current situation, and there will soon be a harsh winter in the steel industry, which is the real key. ”

"I, Chen Shu, is fighting this steel winter, which is also the reason why I am in a hurry to go online, when I can hold on without stopping production, there is no reason to shut down me and dismantle me, and those companies that have stopped production may be difficult to continue to gain a foothold!" Chen Shu very firmly analyzed the possible situation in the future.

"What do you mean is that after the steel industry is booming, it is possible to usher in the cold winter of the steel industry, and there may be many yards shut down, and the country may take the opportunity to eliminate it, isn't that what it means?" Tong Guochang and Wei Liang both stopped the knives and forks in their hands.

"There are bull and bear markets in the stock market, and steel naturally has midsummer and cold winter, and the current hot situation is completely caused by national policies. On the one hand, the country's large-scale infrastructure construction and housing construction to stimulate domestic demand, on the other hand, the country eliminated backward production capacity, and then there is the lax supervision of new production capacity. ”

"The three conditions have fueled the madness of the steel industry now, and it will be earned naturally, but it is not that it will be okay to earn it, and the cold winter is the real test time, I am afraid that it will also be the time when the country will vigorously rectify the steel industry. Chen Shu said seriously.

This time, the two of them no longer listened, but put the knives and forks in their hands on the plate, looked at Chen Shu seriously, and only they knew what they were thinking about in their minds.

"Are you saying that the whole industry will enter a cold winter?" Wei Liang asked, because their company has lent a lot of money in the steel industry, although most of them are mortgages, but an industry is in a recession, how can the money released be so easy to recover.

"Yes! According to the current development trend, I originally thought it would take at least three to five years, but now that the news released by the policy is released, it is estimated that the results will be seen in about four years. Without national policies, market competition can force a large part of the factory to stop, and the price of excess steel may also create a low price record. ”

"The tragic result is not only that domestic prices, but even international prices will plummet because of China, and the ability of the Chinese people can still be believed at this time. Chen Shu said.

"You can't be alarmist, right?" asked Tong Guochang.

"No! This is entirely based on the policy information released by our country, and there are already signs of this, so I have my current speculation. If you can't make any more money in the next two years, I'm afraid that there will be only a dead end in the next crisis. As a result of this inference, Chen Shu was also very helpless.

The stakes are very clear, and it's really hard to say how the two people decide. If Chen Shu blew the sky, or came up to boast about the profit prospects, maybe the two of them really made a decision, but Chen Shu didn't lie to them, and said his thoughts, and what the result would be can only be decided by the two of them.

If the decision is right, such a large amount of loan will usher in a very rich return, maybe the position can be further level, once the consequences of failure are self-evident, I am afraid it will be quite miserable.

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