A few days later, the three giants of the New Century got together and made an important decision - to target the whole country!
The market in the Jiangsu, Zhejiang and Lu regions has been developed quite well, and the pace cannot stagnate.
In fact, the plan to expand nationwide will be implemented next year. However, before that, we need to plan ahead and do a lot of preparatory work.
The first task, and needless to say the most important, is funding.
New Century currently has more than 200 directly-operated stores, each of which has strong money-making capabilities. Coupled with the supply channels of hundreds of franchise stores, the monthly profits are quite astonishing.
However, to expand nationwide, more than just a few hundred million is needed.
In 2004, there were a total of 333 prefecture-level administrative units in the country, including 283 prefecture-level cities and 17 regions. The number of county-level administrative units reached 2,852. Except for the Jiangsu, Zhejiang and Luzhou regions, which have basically completed the market plan, there are still more than 200 prefecture-level administrative units in other provinces and autonomous regions.
Even if a few direct-operated stores are opened in each city, the number of new direct-operated stores will exceed 1,000.
Each directly-operated store requires an investment of more than one million, which amounts to more than ten billion. You can imagine how huge this investment is.
As for investment in direct-operated stores in county-level cities, we have to wait until the old hens in these prefecture-level cities lay eggs before continuing to invest.
There are several sources for such a huge funding demand.
The first is financing, that is, raising funds by increasing capital and expanding shares and absorbing direct investment.
There have always been many venture capital companies interested in New Century, and big investors often asked if it had any financing plans. However, they were all declined because Su Zelin did not intend to dilute his shares, and Yang Fen had the same opinion.
It was obvious that New Century was in a rocket-like growth period, and Brother Yang felt that it would be a loss to distribute the shares at this time.
The second is listing.
In June of this year, Penguin was listed on the Hong Kong Stock Market with an opening price of HK$4.37, a total share capital of 16.8 billion shares and a total market value of HK$7.2 billion.
In fact, Penguin was not that great in 2004. It was just beginning to gain fame. The reason why its market value is so impressive is mainly because the public can see its huge potential.
The situation of New Century is similar to that of Penguin. Both are companies that are growing rapidly and have terrifying potential. The sky is the limit for them. If they were to go public, their market value would not necessarily be lower than that of the companies in 2004. It is not impossible that it would even be higher, because in this era, companies that are engaged in industry and have good operations are still more favored by investors, and their stock prices are not that inflated.
However, Su Zelin had no plans to go public. From the very beginning, he decided to make New Century a company like the blue and green giants of later generations. He would not raise funds or go public, but would concentrate on business and refuse to play numbers games.
The last remaining way is the old way - loan.
When New Century was short of funds before, it always turned to banks for loans, and the banks were very supportive.
Given the company's current situation, it is no problem to borrow 2 billion yuan. We can just talk to the bank directly.
However, this time Su Zelin planned to borrow a little more.
For this purpose, he, Brother Xiao Yang, and Kang Baohong had a meal with the bosses of several banks in Zheng Province, Zheng City, and Lin'an.
Today, New Century is already one of the provincial gold medal enterprises and key supported enterprises. If there are important matters, you can directly contact the senior leaders.
Although there are many companies in Zhejiang Province whose market capitalization and valuation are as large as or even higher than that of New Century, the top leaders attach great importance to this company.
Why
Because it runs fast.
With the same market value, one is crawling forward like a snail, while the other is sprinting like a rabbit. Can their upper limits be the same? Therefore, their treatment is also different.
Brother Yang first explained New Century's plan to expand into the national market. The provincial governors and bank bosses were not surprised to hear this. Anyone with a discerning eye could see how ambitious this company was. It was running at the speed of a 100-meter sprint, and it was only a matter of time before it could break into Jiangsu, Zhejiang and Lu.
But they like such ambitious people. The top leaders naturally hope that Zhejiang Province will produce more national giant enterprises without greatly increasing tax revenue, so that banks can get more business.
As usual, little brother Yang started crying about being poor, because the crying child gets the milk.
For example, to expand nationwide, the company will need to significantly expand its staff. To open a few direct-operated stores in each city will require a base of more than one billion yuan. Advertising and marketing must also keep up. After all, New Century was founded only four years ago, and we cannot come up with so much money at once. We need strong support from our leaders and banks.
There is a certain frequency to crying poor. If you cry all day long, your boss will be annoyed and your baby will not produce much milk. Therefore, it is more reasonable to cry once a year.
Then the provincial governor spoke up, saying that the company had great ambitions in the new century and was striving to become the pride of Zhejiang Province, and that it must be supported. The bosses of other banks also spoke up, saying that they could provide loans and that the interest rates could be negotiated as preferentially as possible.
Then when they asked how much they wanted to borrow, everyone was dumbfounded.
Four billion!
This is really a huge request!
Although New Century’s market valuation is very high, it has not yet exceeded 10 billion yuan at best.
You asked for a loan of 4 billion right away, which is obviously too much.
A bank boss said in embarrassment, "Boss Yang, based on the plan you just proposed to expand nationwide, opening a few direct-sale stores in each city, plus recruiting employees and marketing, a maximum of 2 billion yuan in funds would be enough. Isn't 4 billion a bit too much?"
Another bank boss echoed, "It's not that we don't trust New Century's credibility and repayment ability, but based on your company's market valuation, the loan ratio is too high. We can't make an exception for you!"
"Yes, if it's just the above, 2.5 billion would be enough at most," Yang Fen paused here, then slowly said: "But we also plan to build a headquarters ourselves!"
"Headquarters?"
The governor and the bank bosses were stunned.
"Yes, because we need to significantly expand our staff, the current headquarters office building in Dingsheng Building is definitely not enough!"
"We don't plan to rent another office building. After all, New Century is one of the well-known chain enterprises in the digital field in Jiangsu, Zhejiang and Luzhou, and it will soon expand nationwide. How can it not even have its own headquarters!"
"So, we plan to build not only a headquarters in Lin'an, but also a super headquarters. We need to take at least 200 acres of land and turn it into the best company park in Zhejiang Province and even in the country, including office areas, staff dormitories, living areas, and even commercial and leisure areas within the park."
"First, it solves office problems; second, it serves as a brand image project; third, it can attract the best talents in the country to invest!"
"Our target is the land parcels listed for auction in Binjiang Hi-Tech Industrial Development Zone. According to the current price of about 4 million per mu in the zone, it would cost about 800 million to acquire a piece of land of about 200 mu. With the formalities and various construction costs, a budget of about 1.5 billion is still conservative."
Everyone then suddenly realized.
It turns out that New Century has other big projects to do with the 4 billion yuan loan.
At this time, Su Zelin also spoke up: "No matter how New Century develops in the future, this piece of land and our headquarters are here. It is valuable in itself, and judging from the current domestic real estate trend, it will only rise and not rise. Leaders do not need to worry about the extra loan of 1.5 billion yuan being too risky."
"Also, by doing this, we are demonstrating New Century's determination to settle down in Lin'an forever. We have taken root in Zhejiang Province and Lin'an. The leaders have always been very caring and provided a lot of help in New Century's growth. If possible, we also hope to stay here forever!"
The last paragraph is very artistically written. On the surface it is a thank you to everyone, but it actually has a deeper meaning.
The thing that the top leaders are most worried about is that after New Century succeeds, it will run away and go to super first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, which have better economic prospects than Lin'an.
So the gangster can use this incident as a bargaining chip. Of course, you cannot threaten the big boss directly, but just give him a little hint and give him some room for his imagination.
From Su Zelin's tone, Zheng Sheng could tell that New Century was determined to make this headquarters and there was no room for negotiation.
If it fails to get the additional loan from the bank for the headquarters, he might leak the news and the wealthy Shenghai might beckon him.
Come on, come on, you come to settle down in our Shenghai at Xinshiji, just borrow 4 billion yuan. We at Shenghai don’t have much but plenty of money.
If that time really came to pass, he would have avoided breaking his thigh.
Of course, New Century is not an ungrateful person. With the same conditions, or even worse than Shenghai’s, as long as you can meet its requirements, it will successfully settle in Lin’an.
With a super headquarters worth more than 2 billion in Lin'an, it is a foregone conclusion that it will be settled in this province. Where else can it go
The top leaders are very optimistic about New Century and are cultivating it as their godson outside of state-owned enterprises, because it would be absolutely unacceptable for it to sever its father-son relationship with Zhejiang Province because of this incident.
The situation in the main market is even more tense. Not to mention running away to Shenghai from Xinshiji, it is not possible to go to any other city in the province. You have to stay in Lin'an.
He didn't dare to doubt Su Zelin's words at all. Everyone here knew that this newly graduated college student was the real boss of New Century.
Although the shareholder list of New Century is not public, it certainly cannot be hidden from their eyes and ears, and this major shareholder has to show up every time the bank applies for a loan.
This person is better at speaking and doing things than President Yang Fen. He can really do what he says.
So Zhengshi said without hesitation: "I think what Mr. Su said is right. If the headquarters building of New Century is really built, it will be very valuable. Putting it in the bank can reduce risks. Moreover, the rapid increase in the valuation of New Century is obvious to all. Its valuation was only more than 1 billion two years ago, but now it has increased several times. In another year, it may increase several times again. Will 4 billion be enough by then?"
Zheng Sheng also nodded and said, "New Century is going to charge into the whole country, and image projects are indeed very important. They will be of great benefit to our province's economic development and the absorption of outstanding talents. I think this additional loan is worth it!"
Several bank bosses looked at each other.
If part of the 4 billion yuan loaned by New Century is used to build the headquarters, that would be a different matter.
What's more, it is not a lifeless and declining enterprise, but a vibrant enterprise with a rising sun and unlimited growth prospects.
Therefore, this business is still worth a gamble.
If he did not agree, New Century would turn to Shenghai for a loan and he would lose a big business.
After discussion, several bank bosses finally decided that they were willing to jointly assume the 4 billion loan of New Century, but 1.5 billion of it could only be used to purchase and build land for the headquarters park, and no money had to be spent unless it was needed.
For example, if you really take over a piece of land, the bank will transfer the money to you, but if you don’t take it, you won’t get it.
The bank will allocate the required amount based on the first phase of the project assessment, and the same will be applied to the second phase.
In short, the bank must ensure that the 1.5 billion is actually spent on the construction of the headquarters, becomes New Century's fixed assets and is mortgaged to the bank as a guarantee.
Su Zelin agreed, as he had already anticipated this condition proposed by the bank.
Just mortgage it, it doesn’t matter. The key is that the bank is willing to pay to help you build the headquarters.
The land alone will appreciate in value far exceeding the bank interest in the future. It is equivalent to getting a rent-free and even profitable headquarters from the bank. It is such a good deal. What else can you be dissatisfied with
Of course, the senior leaders also helped to negotiate for a very favorable bank interest rate.
After dinner, they returned to the rental house. Qin Shiqing took off his suit jacket for him and asked, "How was the discussion about the loan with the boss tonight?"
As a market analyst, she must have known that Xinshiji was going to enter the national market. Qin Shiqing had also calculated the funds. It was impossible to do so with the company's current cash reserves, so they could only borrow from the bank.
When he got off work tonight, Su Zelin did not hide the truth from her and told her frankly that he was going to ask his senior boss and the bank for a loan, so Qin Shiqing was also very concerned about the outcome.
Su Zelin smiled and said, "Haha, I've already agreed to approve it!"
"How much?"
Qin Shiqing asked.
"Not much, just four billion."
There was a slight smell of oppression in the gangster's tone.
Mr. Wang in the future owes the bank 600 billion, so my 4 billion is nothing.
Qin Shiqing took a breath of cold air.
Although she knew that with New Century's current size, the loans would definitely start at hundreds of millions, this number still scared her a little.
"Four billion is not a lot? You say it as if it were four hundred dollars!"
The girl was terrified.
She knew that her boyfriend might be the largest shareholder of New Century. Even if he was not the largest, his share must be high.
Su Zelin poured a cup of tea. He and his leader had drunk a lot of wine during the meal and were a little thirsty.
After a cup of tea, he said leisurely, "This is relative. It's not much for our grand plan, not to mention the part of building our own headquarters. Wife, let me tell you this, in ten or eight years, the value of the land we have acquired for our headquarters alone will probably be more than 4 billion, so don't worry about this problem!"
Qin Shiqing could only smile bitterly.
How is it possible to not worry at all
This is 4 billion, a huge amount of money that many people dare not even think about.
Being the little woman behind an ambitious man is really Alexander!
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