Chapter 100 100 Insider Trading
I believe that the first batch of people who do business on the eve of reform and opening up will have this feeling -- a sound legal system has the advantage of a sound legal system, and an imperfect legal system has the advantage of an unsound legal system. A series of means, such as insider trading, kickbacks, and bribery, are almost incompetent under the existing domestic system, but if they are in a more developed Western society, they will face very disgusting legal processing costs. For example, in order to open up overseas markets or win orders, there is hardly a large multinational corporation that has not used the means prohibited by law, especially the super large multinational corporations such as defense contractors and energy companies.
Bribery and kickbacks are repeated in arms purchases, and in countries with relatively corrupt powers, such as Saudi Arabia and India, large amounts of money are used to pay bribes in almost every arms deal.
In fact, at a time when the UK is already too busy to take care of itself because of internal investigations, Al? The Yamaha arms agreement essentially fell into the hands of China. And because of its own low cost, the contract itself is quite oily for the Celestial Empire. Taking Leopard A as an example, Shenghua and China Aviation Technology quoted a price of 24 million US dollars to Saudi Arabia, although Saudi Arabia did not raise objections, but in fact this price is outrageous. The cost price calculated by Xifei itself is only about 40 million yuan, which is 5 million US dollars at the new exchange rate, and Qi Yiming is bold enough to directly shout the price nearly five times.
Of course, the first factor in the low cost of Chinese-made weapons is the low cost of labor, and in the era when the general wage is about 100 yuan, it is not only conducive to labor-intensive industries, but also has a certain impact on the aviation industry. In addition, because most of the technical skills and even some parts that cannot be produced by physical enterprises are provided by the Red Alert base, the cost has been greatly reduced. The R&D cost of technology in the early stage is basically zero, so there is no problem of return on investment.
Qi Yiming had no intention of disrupting the order of the international military products market, so he simply shouted prices according to the horizontal comparison of other countries' products, so it was reasonable to shout four or five times the price of fighters, tanks, and missiles.
Xifei and Chengfei are still produced in factories, such as the Thorn-2 Red Patriot missile, which comes from the Red Alert base at all, if you don't count the mineral resources of Mongolia and the Soviet Union that were stolen across the border, there is basically no cost, a set of 1. 0.5 billion dollars of air defense systems, basically all profits.
Qi Yiming believes that the performance of these Chinese-made weapons is no worse than that of foreign countries, and the service will be more thoughtful because of his intervention, and there is no need to shout low prices as much as possible in order to compete for the market as in the future. Of course, even in the future, such as the $3.5 billion 12 sets of Hongqi-9 air defense systems, the profits are actually quite high. China's competitive advantage is mainly in the national system and human resources.
In other words, the profit margin of Leopard A is close to 5 times, but Leopard B has decreased a little. Because the Leopard B uses more advanced technology for manufacturing, the difficulty of production has increased, and the cost has also increased significantly, up to 80 million yuan, which is also estimated to be the main factor for the air force to finally give up the west flight and find Qi Yiming to produce for free. Even so, Leopard B has nearly twice the profit, and killing people is not ordinary ferocity.
The situation of Xiaolong is somewhat similar, but because the unit price itself is relatively low, the profit margin is also limited. The ex-factory price of an FC-1 is about 3 million US dollars, except for the small size of the aircraft itself, most of the technology used is relatively mature, that is, the composite materials on the WS-13A and the fuselage are more valuable.
If foreign companies are told about the profits of China's military enterprises, they will probably be envious to death, and even jealous to the point of using the anti-dumping law to find fault.
The two groups of people who were in embarrassment sat together, and Zhou Yutong took out a piece of paper and handed it to Prince Bandar, "Your Royal Highness, I've seen it burned." ”
Bandar took the piece of paper and looked at it: "200 Thunder Dragons are purchased, with a total contract value of 2 billion US dollars, and 20% of the cash." ”
Bandar's eyes jumped, and he immediately put the piece of paper on the candle on the table and burned it, and his heart was also extremely excited. Twenty percent of the kickbacks are $400 million, although they are not short of money to spend, but such a large amount of kickbacks is really difficult to calm down. The British have proposed a similar solution, and the proportions are about the same. In fact, in the later generations Al? After the Yamaha fraud case was revealed, the police said that about £6 billion of the £43 billion total agreement was related to bribery. This figure is not necessarily for kickbacks and bribes, but the horror of it still leaves people in the know staggering.
It can be said that the reason why Saudi Arabia does not consider other products is that it is absolutely inseparable from the huge amount of bribes that it favors the British wind and typhoon.
Just the amount of this bribe is a sky-high arms order. Of course, Qi Yiming wanted to eat this piece, but he knew that without the money delivered to Saudi stakeholders, it would be difficult to say about the follow-up orders.
Zhou Yutong is actually not calm in his heart, such a large amount of kickbacks is definitely a great crime in Western countries. In fact, if it is exposed in China in later generations, it will even be enough to be shot. Of course, it is unlikely that such a thing will be exposed in China.
"Because of the huge batch, the unit price of 8 million is actually a discounted weapon system price, but you can mark it as a flyaway price, and the additional 20% is used for maintenance, repair, weapons, training, and infrastructure costs, what do you think of this condition?"
Bandar is not very old, but he is quite greedy, he calculated, plus the two billion contracts, the total value is only 57. 400 million US dollars, which is still a certain gap from the 7.8 billion he brought, he couldn't help asking: "Can other contracts be compared with this model?" ”
Zhou Yutong was immediately shocked, but his face was not shown. The British's bribe rate in another timeline is only 13%, and if all contracts are compared to the sale of Thunder, then the Celestial Empire's bribe ratio has reached a staggering 20%. From a purely commercial point of view, such a contract is not a very efficient contract for the seller, and of course this kind of thing cannot be measured from a purely commercial point of view.
"The boss set a condition of 200 planes, I originally thought it was impossible, but I didn't expect that the Saudis would completely ignore the actual needs, and this Prince Bandar was completely thinking about personal gains and losses." Zhou Yutong touched a handful of beads of sweat that didn't exist on his head, and said secretly in his heart. At the same time, he also admired Qi Yiming for accurately grasping the minds of the Saudis.
He thought for a moment and said, "It may be difficult to follow this model in every contract, but we will try to figure it out." Well, you can also refer to another model, because the large number of fighter jets may lead to a lack of flight personnel and support personnel on your side, and we have agreed to export labor services to Saudi Arabia in terms of combat readiness. In general, a team of more than 1,000 people costs more than $100 million a year. In fact, we have already paid our workers, we can set up a confidential account called us actually for you, and this money can be transferred to you after several transfers, what do you think? ”
Bandar calculates that these people will stay in Saudi Arabia for at least two or three years, so that they will have an income of two or three or three or four billion, and they are very satisfied and nod their heads.
Zhou Yutong immediately said: "To realize the labor model, we hope that you can agree to buy 60 CJ-6, 30 K-8, 30 L-15 trainer aircraft, these training aircraft are quite helpful for the Saudi side to improve the level of pilot training, the total value of the contract is 3." 500 million US dollars, this is still quite preferential, and it is impossible to buy so many training aircraft abroad without 800 million US dollars. So we also hope that you can increase the number of FBC-1B fighters to 100 units, and of course the more the merrier. ”
The more Bandar and the others listened, the more they began to calculate, and immediately asked: "Please give me a detailed data for reference." ”
Zhou Yutong smiled slightly, then took out a piece of paper from the folder and handed it to Bandar. Their conditions were written on it: 100 FBC-1B fighters, 200 Thunder fighters, 1,200 PL-9 combat bombs, 600 PL-12 medium-range bombs, 600 PL-11 medium-range bombs, 200 C-705 anti-ship missiles, 250 kg and 500 kg Thunder series guided bombs, and 20 sets of electronic warfare systems; 60 CJ-6 primary education aircraft, 30 K-8 intermediate education aircraft, 30 L-15 higher education aircraft, 8 sets of Thorn-2 air defense systems; Two additional C919 aircraft for VIPs – with a total contract value of $6.8 billion. Of that amount, $800 million is a thank you.
I have to say that such a contract for Saudi Arabia, with a very strong sense of arbitrariness, the Chinese side not only expanded the contract of 72 Leopard B fighters at the beginning to the current contract with so many other miscellaneous items, but also many things may not be used by the Saudis, such as the two C919 passenger planes, which were completely stuffed into by Qi Yiming in order to make up the number, and secretly planned to let the Saudis advertise their civil aircraft.
Bandar and his team are satisfied with the $800 million, and most of the money will go to him and his father, Prince Sultan, and then the military and government officials involved will also receive a portion of it. Of course, because of the need for proper money laundering, the amount of money they end up with cannot be so much.
Bandar and the others discussed for a while, Zhou Yutong sat indifferently on the side, and after a while, Bandar spoke again: "We are very satisfied with the contract, well, can you give me a list of your other Chinese military products?" We are ready to purchase more points. ”
Zhou Yutong almost collapsed when he heard this, he knew that Bandar had a total of 7.8 billion US dollars in his hands, but he and his boss Qi Yiming didn't plan to pry it out from the beginning, because no matter what, it is very important for Chinese-made weapons to maintain the reputation of high quality and low price, and too much price increase in black hearts will affect the future purchases of other countries. But I didn't expect Bandar, a loser, to take it seriously, and he actually wanted to spend the rest of the money in his hand.
For the obvious reason for this, there must be more kickbacks.