Chapter 840 To Be Close to Capital

Before he came, Li Mu did not expect that Zhao Xianliang would be able to impart so much experience to himself.

Taobao has been highly recognized by the government for its potential in stimulating domestic demand and promoting economic development, and has also received many macro favorable policies, including "computers entering the city", as well as corporate tax relief, vehicle import and purchase tax. Facilitation conditions such as reductions and exemptions and land acquisition, but these are all support given by the Economic and Trade Commission on behalf of the state, and Li Mu has never asked the local government for milk.

The macro benefits naturally require the state to formulate at least the position, but for things like land, you still need to communicate with the local government. After all, the local government is the parent official of the enterprise.

Li Mu recalled some anecdotes he had seen in his previous life. A few listed companies that had been losing money for successive years published their financial reports, but unexpectedly achieved profits that year. The reason for the profit was that the company sold a certain piece of land or some high-priced real estate in Yanjing. Although the news makes people feel a little dumbfounded, but it is really enlightening when you think about it.

In later generations, a slightly larger property in Yanjing can easily cost tens of millions. If it is a school district housing, it is not a problem to buy a small apartment for 10 to 20 million yuan. Then the question is, how many companies can achieve annual profits of more than 10 million yuan. of? Except for a very small number of companies that make money like printing money, quite a few companies seem to be very large in scale, but after maintaining the entire operation as usual, it is already very remarkable to be able to make little or no profit. In this case, The company sold a set of real estate with a profit of tens of millions, which is naturally particularly prominent in the financial report.

Although Li Mu also penetrated into the real estate field through Wanying, all of this has nothing to do with his own office. While Yanjing Zhongguancun has not developed beyond the Fifth Ring Road, he quickly asked the municipal government to ask for two pieces of land within the Fifth Ring Road, not only It can solve the problem of the office space once and for all, and it can also add a strong sum to the fixed assets of the enterprise. You must know that the Yanjing land price will be tied up in the future. If you speak now, the Yanjing Municipal Government may be able to give a little more, etc. If the price is high and then speak again, I am afraid that the Yanjing Municipal Government will also hurt itself.

After making up his mind, Li Mu admired Zhao Xianliang a little more in his heart. The person who has come here is the person who has come here, and his experience in many fields is much deeper than his own.

At this time, Zhao Xianliang saw that Li Mu mainly listened to what he was saying, that he rarely spoke, and hardly expressed any personal opinions, so he couldn't help but ask him: "By the way, what do you think of the future development of coal and steel? "

Li Mu said humbly: "I don't know much about these two industries, and coal is still somewhat influenced by some parents. I know that the price of coal has started to rise since last year, and I don't know much about other industries. As for steel, I don't know anything about it. "

Zhao Xianliang said with a smile: "You don't need to understand very well, you just need to analyze the prospects of these two industries according to your existing knowledge."

Li Mu thought about it and said, "Then I think it should be relatively optimistic on the whole. After all, the overall domestic economic situation has been developing very well in recent years. In addition, the infrastructure is blooming everywhere, and the demand for steel must be increasing. If the level of national regulation is not considered, the overall situation should be getting better and better."

Zhao Xianliang nodded: "It's true that everyone is optimistic about the overall trend of the industry, but the policy level is somewhat unclear. The macro-control of these two industries is very complicated, and once it is regulated, it will be very powerful."

After speaking, Zhao Xianliang added: "In contrast, the steel industry is more complicated than the coal industry. Our domestic coal reserves and mining volume are also large, and almost all of them are self-sufficient; but steel is different. Our country is a There are few iron ore, the grade is low, and the overall dependence on imports, in addition to the state's regulation, but also subject to the iron ore supplier, the overall is very passive."

Li Mu suddenly remembered the very well-known iron ore negotiation incident in his previous life. Huaxia lost the negotiation with the iron ore giants for six consecutive years, and the entire Huaxia steel industry paid at least 700 billion yuan in cost.

Although Li Mu didn't know the specific situation, he generally remembered that the main reason was the lack of voice in the Huaxia Iron and Steel industry in front of the Big Three.

Thinking of this, Li Mu asked curiously, "Uncle Zhao, if you want to control the price of iron ore, what kind of strength do you need?"

Zhao Xianliang smiled and said: "Becoming the Big Three, or controlling the Big Three, there is no other way."

Li Mu couldn't help but ask, "The Big Three you said are so powerful?"

Zhao Xianliang nodded: "The three giants refer to Australia's BHP Billiton, Brazil's Vale and the British Rio Tinto Group. Among them, BHP Billiton was established by the merger of bhp and billiton last year. These three companies not only control a large amount of iron ore production capacity, but also The most important thing is that they have long held the pricing power in the international trade of iron ore, and as long as the pricing power is in their hands and is not weakened, there is nothing we can do."

Li Mu asked him, "Is it possible to acquire the Big Three?"

Zhao Xianliang said with a smile: "Theoretically yes, but it is extremely difficult in practice. Not to mention that these three companies have huge net profit margins, the most important thing is that the scale of capital they can leverage behind them can reach the scale of trillions of dollars. It is not something that any individual or company can shake or interfere with. Behind these three giant companies, capital from all over the world is involved, and Wall Street is the first to bear the brunt. Companies like Goldman Sachs with strong control capabilities are especially terrible; in addition, there are powerful The Japanese chaebol, Australia, Brazil and the government are among them, and the game of interests behind them has long since jumped out of the scope that companies can control.”

After speaking, Zhao Xianliang introduced: "Actually, many iron and steel companies in China have had the idea of ​​intervening in iron ore prices, and some companies have even tried to invest in iron ore companies, but it is useless. The most basic investment is the shareholding, which can interfere with the operation of the company at most, but there is no right to speak about the price of iron ore."

Li Muyu nodded to himself, and said jokingly: "Then, if you want to control iron ore, you have to control Wall Street first..."

Zhao Xianliang said with a smile: "There is another way, that is, a worldwide economic crisis. The most feared thing for real companies is the economic crisis."

Li Mu asked subconsciously, "How do you say it?"

Zhao Xianliang took out a box of cigars from the drawer, handed one to Li Mu, lit one of them himself, and then smiled: "You think, how much does it cost to maintain a coal mine? Government costs, loans before production begins. Cost, hardware cost, equipment depreciation and labor cost... These are all in front of you. As a rough assumption, if your coal mine produces one million tons per year and the annual hard cost is 400 million, then the coal price is When the price is more than 400 yuan per ton, you make money; the coal price of 400 yuan is the operating critical point of your coal mine. What if the coal price breaks through the critical point and plummets to less than 400 yuan? What do you think, what I just said Of those costs, which one can be less?"

After that, Zhao Xianliang paused and replied: "The fact is that the cost of any link is indispensable! Not only can the cost not be reduced, but also in the case of loss, you still have to keep working and cannot stop production, because once production is stopped, your The workers will run away, the bank will seize your coal mine because you are worried that you won't be able to pay the bandwidth, and your other creditors will come to collect the debt, and then there will be chaos, and it will not take long for your coal mine to die, so even if you lose money, you can only If you can bite the bullet and continue to lose money while looking forward to the recovery of the industry, at this time, everyone is fighting for the foundation, and the coal mines that cannot survive will close down one by one."

Li Mu said thoughtfully: "A coal mine has such a huge cost pressure, and the cost of a giant ore mining company like the Big Three will be even higher..."

"That's right." Zhao Xianliang said: "If the iron ore market falls below the critical point of the Big Three, their loss space will be very large. Don't look at its casual profit of more than one billion US dollars a year. If The market really broke through, and it is possible to lose seven or eight billion US dollars a year."

When Zhao Xianliang said this, he turned the conversation and shrugged: "But it doesn't make much sense, even if the iron ore market really breaks down at a certain point in time, it doesn't matter to them, their foundation is too high. It's thick, it's worth the loss..."

Hearing this, Li Mu basically gave up the obscenity in his brain completely. He originally wondered if he had a chance to reverse the huge loss that Huaxia would suffer from iron ore in the future, but now it seems that this idea is simply too unreasonable. Realistically, even the countries with the world's largest steel production and iron ore import volume were unable to control these three giants. Instead, they were smashed by these three giants. What is my little shrimp?

Zhao Xianliang said to Li Mu jokingly at this time: "If your business can grow rapidly and gain a firm foothold in the US capital market, with your development speed, you may be able to gain a pivotal position in Wall Street in the future. By that time, Maybe one day you really have the ability to influence the steel industry on another level.”

Li Mu couldn't help laughing: "This goal is really too big."

Zhao Xianliang said with a smile: "Just chatting, nothing is impossible. You can create so many miracles in more than a year. I believe that if you go to the overseas capital market, you can still feel like a duck to water."

Speaking, Zhao Xianliang reminded: "However, there is one thing I want to remind you."

Li Mu hurriedly said, "You say it."

Zhao Xianliang said meaningfully: "To have more contact with capital, not only to contact capital, but also to understand the entire capital market, and to cooperate more with capital. In a word, get close to capital! Treat capital as a lover!"

Although he doesn't understand the Internet, Zhao Xianliang also sees that Li Mu is very cautious about financing. Muye Technology has been closed for two rounds of financing, and Taobao simply has not been funded in one round. In his opinion, although Li Mu can make more money in this way equity in hand, but that's not a really healthy model.

At this time, Zhao Xianliang took a cigar and continued: "The truly healthy model must be to cooperate with a capital that will help you for a long time in the future, sacrifice a part of the equity in exchange for a large amount of cash, and at the same time cooperate with capital To realize the bundling of interests, for example, if you accept the capital of Wall Street, then if you want to go public in the United States in the future, the capital will definitely use all its strength and mobilize all channels and relationships to help you promote it. When you are familiar with the capital circle, With enough funds and resources in hand, you will become capital when you change your body!"