Chapter 100: State-owned Capital’s Calculations

"Zhizhong, you should visit Guangjia Aerospace more often recently to learn about their needs and when the next round of financing will start. We must increase our investment ratio in the next round of financing."

When Duan Zhizhong was notified that the senior leader wanted to talk to him, he was a little confused.

The person who just spoke to him was Wang Kuang, the general manager of Anhui Provincial State-owned Investment Corporation. He was just an investment manager of the emerging industry development fund under the provincial state-owned investment corporation.

The status and position between the two differ by more than one level. Let alone him, their leaders rarely have the opportunity to report directly to the general manager of the Provincial State-owned Investment Corporation.

Duan Zhizhong made special preparations when he received the notice. He guessed that it was related to Guangjia Aerospace because it was the most outstanding project he had done last year.

In addition, the recent movement made by Light Armor Aerospace in the photovoltaic field is huge. From Lujiazui to Wall Street, and then to London's financial street, the entire global capital market is shaken by Light Armor Aerospace's technological breakthroughs.

Duan Zhizhong nodded: "The Emerging Industry Development Fund invested 5 million RMB in Guangjia Aerospace during the first round of financing, and the state-owned capital of Hefei invested a total of 25 billion.

Shenzhen Guotou invested 50 billion yuan, which is twice as much as us. The rest came from institutions like Shenhai Guotou and Bocom Capital.

At present, the paid-in capital of the Emerging Industry Development Fund is only 15 billion yuan. It will be difficult to increase the proportion in the next round. They want to raise 50 billion US dollars in the next round.

Our family is not enough.

During this period, we have been running once a month, and we will increase this frequency in the future. We have established a good relationship with their marketing director.

It is already November, and next month is December. We will organize an external audit agency to conduct this year's annual financial audit. During the audit process, we will also further understand the various situations of Guangjia Aerospace. "

Duan Zhizhong told about what he had learned and the work he was doing related to light armor aerospace.

"As for when the next round of financing will start, there is no news yet."

Wang Kuang was actually quite helpless. He himself didn't know that his company had invested in Guangjia Aerospace. He only found out about it when the provincial leaders asked him about it.

The underlying meaning of the provincial leaders is why Guangjia Aerospace was not brought to Hefei, and why this round of new solar cell factory construction was not carried out in Hefei, even though Hefei is clearly the second largest investor in Guangjia Aerospace.

Wang Kuang was stumped by the question. After returning, he immediately looked for Duan Zhizhong to learn more about the situation. Then he thought about carefully formulating the next special work plan and reporting the special work plan to the provincial leaders.

While waiting for Duan Zhizhong to arrive, Wang Kuang combined the information found by his secretary and gained a general understanding of Light Armor Aerospace.

In Wang Kuang's view, this is an enterprise that can burst out extraordinary energy and leverage trillions of capital. No wonder the province is so concerned about it.

“Once a month is too little frequency, and even at the level of department head it is not enough.

I don't expect you to be able to contact Chen Yuanguang, but you can at least contact their vice president, right?

You have to improve the level of communication instead of making a routine trip every month to Shenhai to listen to a work report, or even not a work report, but just a casual chat.

Such communication and such customer relationship management are meaningless and worthless. It is a waste of opportunity and also a waste of your time.

My idea is to improve the level of communication and gain a deeper understanding of the pain points in their development process.”

Wang Kuang was dissatisfied with Duan Zhizhong's work. He was hounded by the provincial government and had no answers to any of the questions. He finally found a place to vent his resentment.

Duan Zhizhong could only listen and take notes while listening. He couldn't show any displeasure, and could only nod repeatedly to indicate that what the leader said was right.

I felt depressed inside, because BYD only gained fame from this project without any practical benefits.

Their performance-based salary is based on profits. For a company like Guangjia Aerospace that does not pay dividends and is not listed, its efficiency is zero. The company invested 500 million yuan, but there was no profit. Duan Zhizhong's bonus for this project was almost zero.

The reason why these state-owned assets invested in Guangjia Aerospace at that time was that there had been no good projects in recent years, and the way for Chinese companies to go public on NASDAQ and then cash out was blocked. Now with the end of the virus epidemic, everyone's investment enthusiasm in the mainstream biopharmaceutical industry has dropped sharply.

As for Guangjia Aerospace, which was backed by Chen Yuanguang, everyone felt that it was a promising and rare good project. Even if it suffered a loss, when reporting to the higher-ups, they could say that it was an investment in the transformation of Chinese enterprises and in advanced technology, which was related to the country's call, so even if it suffered a complete loss, their responsibility would be reduced by half.

The result is indeed good, and there is no loss at all. In recent days, various financial news have frequently reported on the breakthrough of light armor aerospace technology, promoting this as national glory and a typical case of China's industrial transformation.

Duan Zhizhong was naturally very concerned. According to the information he received, the annual profit from patent licensing was at least 100 billion RMB.

Therefore, he specifically called the contact person of Guangjia Aerospace and got more specific data from him. It is expected that the profit from patent licensing will reach 200 billion RMB next year. Then he asked about the dividend situation. No dividend, all invested in research and development. Moreover, they are not listed yet, only financing but not listing. With an annual interest income of 200 billion RMB, the valuation must be at least 4000 billion RMB. In addition to the monopoly nature, it is a pure unicorn.

Duan Zhizhong thought, if they said no dividends, they really wouldn't. Now he had no passion, no matter how well Guangjia Aerospace did, he wouldn't get any performance bonus.

“First of all, we need to serve enterprises with a problem-solving attitude. For example, as R&D-based enterprises, they must have a big talent gap.

Then, students from USTC also need places to intern. We can act as an intermediary to take the lead in organizing USTC students to intern at Guangjia Aerospace, and organize Guangjia Aerospace to hold a special job fair in Hefei.

This is something that is beneficial to both parties.

There is a lot we can do, and we must fully leverage Hefei's advantages.

What I just mentioned are educational advantages, as well as industrial advantages and cluster advantages. If your level is not high enough, come to me and I will help you coordinate.

Another thing we need to figure out is why Guangjia Aerospace’s R&D center is in Pengcheng instead of Hefei. If it is because of insufficient investment, then we can definitely increase investment.

If the money in your fund is not enough, the provincial state-owned investment company can inject more capital into you, or you can borrow from shareholders or increase capital and expand shares.

Or several funds in Hefei can jointly invest, Hefei is not short of money.

If this is just a project, and Guangjia Aerospace is still in Shenhai and Pengcheng, but not in Hefei, then this investment would be a failure.

From the perspective of the province's development, this project has no economic benefits for the time being. Second, it has not played a publicity role, as few people know that Hefei has invested in Guangjia Aerospace. Third, it has not played a role in driving the industry.

Zhizhong, go back and come up with a plan for me on how to attract Guangjia Aerospace to Hefei."

Duan Zhizhong had only one thought in his mind: "Me?"

He nodded on the surface: "Okay, leader."

The situation is similar for several other local state-owned investment companies, all of which hope to deepen cooperation with Guangjia Aerospace.

Many people who can afford the money and chips are eagerly waiting to negotiate terms for the next round of financing.

“Mr. Lin, is your company willing to participate in this round of fundraising by JinkoSolar?

We plan to raise 100 billion yuan to build an integrated production base for perovskite batteries and HJT components in Shanxi Province. The weighted return on net assets of convertible bonds raised in this round is estimated to exceed 7%, which is much safer than investing in banks.

If your company is willing, we can sell you up to 20% of our shares." Qian Jing, vice president of capital operations at JinkoSolar, is a strong woman with a similar temperament to Lin Jia.

In recent years, many A-share companies have used the funds raised from their IPOs to purchase bank structured deposits. The annualized rate of return on such deposits is pitifully low, only about 1 to 2 points.

The reason why Hua Hong's IPO was criticized so much is that they raised 212 billion yuan through their IPO and used 210 billion yuan to purchase structured deposits, which disappointed a group of investors who had high expectations for the development of China's semiconductor industry.

The leading companies are not engaging in research and development or expanding production. Isn't this telling everyone that the semiconductor industry is hopeless?

As the secretary of the board of directors of a listed company, Lin Jia is very clear about these things. He also knows that convertible bonds with a yield of 7 percentage points are very stable and are considered a big deal in the bond market.

"I think it's okay, but I have something I want to ask. Should we buy it in the name of Guangjia Aerospace or in the name of Guangjia Technology?" Lin Jia said.

Qian Jing thought to herself, the reason we gave up such a high share was to win over Chen Yuanguang, not to any specific company.

The actual controller of these two companies is Chen Yuanguang, and it seems that it doesn’t matter who participates in this round of investment: "It’s all right, but Guangjia Aerospace is best.

Because we are issuing convertible bonds, we need to obtain approval from the China Securities Regulatory Commission before raising funds from specific targets. Guangjia Aerospace has a greater relevance and the probability of approval is also greater.

Of course, there shouldn’t be any problem with Light Armor Technology, as you are a favorite in the eyes of the regulators, but the process may be a little slower.”

The market value of Guangjia Technology is nearly 500 billion RMB, which is twice that of JinkoSolar. From the perspective of market value, the capital market's recognition of Guangjia Technology is much higher.

　There have been too few updates recently. I feel ashamed. I should update more often.

　　
　
(End of this chapter)