Chapter 969 Trade Negotiation
Whether it is for political, military or economic considerations, the upcoming war between Annan and Lancang seems to be beneficial and harmless to Haihan. From Haihan's standpoint, he should indeed encourage his allies to start this war. Just a war. The best way to express one's stance is to meet the procurement needs of the Annan people and sell them a sufficient amount of arms. As for the delivery time mentioned by Baikes, this is actually not a big problem in the eyes of others. What the Annan people need now is Haihan's clear attitude, rather than immediately delivering all the contents of the order to them. To put it bluntly, even if Haihan now has sufficient arms that can be delivered immediately, the Annan people may not be able to come up with enough money to pay. Most of them will have to make mortgage installments like they did during the two years of the civil war.
On March 7, Haihan Ordnance and Annan’s representative Zheng Zao signed a written contract at Victory Fort regarding this year’s arms transaction orders. According to the agreement, Haihan will sell to Annan within the year 5,000 matchlocks, 1,000 flintlock muskets, 120 artillery pieces of various calibers, and ammunition equivalent to the consumption of Annan’s army in the past three years. In addition, there are a large number of various weapon spare parts, individual soldier equipment and other military supplies. Although there is no naval-related content in this arms order yet, its amount has exceeded the total amount of arms purchased by Annan from Haihan in the previous two years.
As the representative of Haihan Ordnance Industry, Bai Kesi attended the signing ceremony with a smile almost the whole time, because the benefits this order will bring to Haihan Ordnance Industry will indeed make people feel happy. Although Annan will not pay the price in one lump sum, but will pay in batches according to Haihan's delivery progress, this does not matter to the seller. Although Annan people have become accustomed to credit, they will not default on the debt. Sooner or later, Will find the money to pay. And if Annan can achieve an overwhelming victory in the national war with Lancang, he will surely be able to draw a lot of oil and water from Lancang after the war.
Zheng Zha's expression didn't look like he felt any pain because he had spent a large amount of money. Instead, he felt relieved after completing the task. But think about it, when Zheng Zha came here, he probably didn't expect to get the Haihan people to agree to sell all the contents of the order. Now he signed the agreement without much trouble, which is a surprise for Annan. Happy. As for the fact that the Ministry of War has not prepared enough military expenditures for this, Zheng Zha is not worried. As long as the war goes smoothly enough and the Lancang Kingdom cedes territory and pays compensation after the war, this hole can naturally be filled.
Both parties made their own plans and signed the agreement. As for the cost of purchasing these arms, there is no need to count them on site. Annan will transfer the money directly through the Annan office of Haihan Bank. This can be regarded as the trade convenience brought by Haihan Financial System after entering the Annan market. For business-to-business transactions like this, both parties rarely use cash for settlement anymore. They basically transfer funds directly through Haihan Bank in Sanya and Shenglong Prefecture, which is far more convenient and reliable than before.
In addition to arms procurement, Zheng Zha also had other businesses of interest during his trip. For example, last time I heard Schneider promote the idea of turning the place into a leisure and tourism paradise in the South China Sea on Ambona Island, he became obsessed with it after he returned. Although the idea proposed by the Haihan people seems a bit mysterious, and the investment must be huge, and participating in it will face considerable business risks, Zheng Zha believes that participating in this project will help enhance Annan’s international influence. After all, this place will be in the future The customer groups we receive are mainly dignitaries and dignitaries from various countries. Being able to enter this circle and be a half-master has many benefits that can be imagined.
After Zheng Zha finished talking about the arms list, he went to visit Schneider and inquire about the details of the projects related to Ambona Island. After Schneider learned of his intention, he gave his own advice: "If you are investing in Annan's name, I suggest you fund the construction of a high-end hotel on the island by yourself. If you are investing in your own name, you might as well just invest directly." It is better to leave the money to us and not directly participate in specific business projects.”
Zheng Zha was confused and said: "I can understand running a hotel, but why don't you personally contribute money?"
Schneider explained: "There are so many people who want to participate in the project on Ampurna Island. Currently, there are at least twenty or thirty companies like Xiao Wangye who are interested. However, everyone wants to invest their money in the most profitable project. In terms of projects, few people are willing to invest money in infrastructure projects that have no direct return, such as building docks and roads. We plan to make some changes in the operating model of Ambon Island and only target individual investors. To absorb funds, we do not open specific business projects, but integrate these funds for operation to improve the efficiency of fund utilization. Of course, we will also promise a certain rate of return and payback period for the invested funds, and will not allow investment. As for the specific operation method, I will briefly explain it to you..."
Of course Zheng Zha didn't understand what financing and debt financing were. After listening to Schneider talk for a long time, he still didn't fully understand how the Haihan people operated. But one thing he heard very clearly is that the funds invested are equivalent to lending to Haihan to operate the project. Not only will the principal be repaid, but interest will also be paid, and dividends will be distributed for a certain number of years based on the proportion of capital invested. In this process, investors do not participate in the operation, are not involved in decision-making, and do not assume responsibility. In other words, after paying out the money, they do not need to do anything. They only need to wait to get money from Haihan year by year in the next few years. , it does sound like a pretty good investment plan.
Being able to obtain stable income without taking additional risks seemed like a good thing falling from the sky. While Zheng Zha was excited, he did not forget to ask: "Then why Haihan didn't use this method in its past investment projects?" This way? ”
Schneider sighed: "It's easier said than done. The personnel, systems, and management models required for this kind of operation cannot be prepared overnight. We at Haihan have always focused on business reputation. If all aspects are not properly handled, It won’t be introduced to customers. If something goes wrong, wouldn’t it ruin our own brand?”
Zheng Zha praised: "Sure enough, you have thought carefully. I can rest assured that I will leave the money to you."
With Schneider's deception skills, it was not difficult to persuade Zheng Zhu to obediently pay. Although the circumstances he mentioned were fabricated in the plot, the method of operation was not false. The Haihan Ministry of Commerce is preparing to try new financing operations in the development and operation of Ambona Island. The main purpose of doing so is to gradually put an end to the past situation where investors were too involved in the operation.
In the past, Haihan's investment projects were mostly divided into two types: one was agricultural and forestry projects based on plantations, and the other was operating institutions based on commercial banks or business alliances. In the former, the investor generally contributes money for development, and Haihan is responsible for technical support and sales during the production period. The cooperation method is relatively simple. The latter involves complicated issues such as shareholding ratio and shareholder rights. There are often differences of opinion on the business direction and interest distribution. There are even shareholders with a larger shareholding ratio that criticize Haihan's business strategy and try to interfere with the business direction. situation occurs. Although Haihan was eventually able to quell most of the disputes with his own influence, the emergence of this situation stems from the system itself of these institutions. Differences of opinions cannot be fundamentally eliminated. Changes can only be made from the most basic Starting from the local level means changing the structure and nature of operating capital.
From shareholder capital contribution to debt financing, changes in funding sources will also bring about changes in operating methods and organizational structures. This new financing method eliminates the need for investors to participate in operations, and seems to make it easier for investors. , but without the identity of shareholders, investors naturally cannot make irresponsible remarks on the business methods. The Ministry of Commerce also wants to use this new operating method to slowly change some historical problems that were forced to form due to the external environment in the past.
In the past, in order to attract businessmen from other countries to enter Haihan's trade network and become Haihan's distributors and allies, Haihan would organize shareholder-type operating organizations to develop projects. However, with Haihan's reputation and influence today, In fact, there is no need to rely too much on external forces. The high-quality investment projects Haihan has been launching have attracted more and more investors, such as the Ambona Island project launched this time. Although many people within Haihan believe that the investment and risk of this project are too high. , but there are still a lot of investors who are very interested in it, and Zheng Zha came relatively late.
The Ministry of Commerce plans to complete the first phase of bond financing of 5 million yuan for construction funds and use this money to develop and construct Ambona Island. Judging from the number of large investors who have expressed interest in investing, at least half of the financing amount can be guaranteed. This financing model can also effectively ensure the independence of Ambona Island in future operations and avoid some disharmonious notes in the island's business projects due to the entry of funds from multiple parties.
As for Schneider's previous mention of funding the construction of a high-end hotel in the name of Annanguo, he only mentioned it casually and did not think Zheng Zha would be really interested in it. After all, this kind of project takes a lot of effort to run, but it may not necessarily make much money. How can it be as easy as handing it over to Haihan to take care of the business directly? Of course, political needs need to be considered, but if compared with the economic benefits that individuals can obtain, it seems that they can be put at the back. In fact, before Schneider finished explaining, Zheng Zha was already thinking about how to organize more funds from domestic sources and invest them in the Ambona Island project in his own private name.
Of course, the investment projects prepared by the Ministry of Commerce for this grand event extend far beyond Ambona Island. Hong Kong Island at the Pearl River Estuary, Kaohsiung Port in Tainan, and Dinghai Port in Zhoushan in Zhejiang are also projects that are subject to investment and financing this time. Although Annan investors may not be interested in these relatively distant places, other investors may not think so. For example, Portuguese representative Thomas has shown great interest in this.
Thomas has been Portugal's representative in Sanya since Portugal established diplomatic relations with Haihan after the Annan Civil War. In the past few years, he not only witnessed the rapid changes here, but also gradually became familiar with the rhythm and methods of Haihan's external expansion and development and construction of overseas colonies.
Different from Portugal's overseas colonial management methods, Haihan invested hugely in each colony. Not only did he carry out complete infrastructure, but he also developed some business projects in each colony that could generate long-term profits based on local conditions. Portugal can often only choose some resource-producing areas for predatory development, or build supply ports and fortresses in strategically important areas, using them purely for military purposes. There are only a few regions in the Far East that have been operating for a long time like Macau.
Of course, there are many reasons for this situation. In addition to Portugal's own national strength being insufficient to support the colonists in large-scale construction in the Far East, the fierce external competition they faced is also one of the reasons. Neither the Spaniards nor the Dutch are vegetarians. The two countries have never stopped squeezing the Portuguese-controlled areas in the Far East. If the Portuguese had not had good vision and hugged Haihan's thigh in time, they would be here today. The situation in the Far East is probably much worse than the current actual situation.
Thomas has seen a lot and knows that Portugal cannot learn Haihan’s business model. They cannot copy Haihan’s business operation model, nor do they have strong armed support, especially since Haihan’s race and culture are different. We can rely on a huge market like the Ming Dynasty to obtain labor and resources and export high-value goods. This is a goal that Western colonists can never achieve. The Portuguese have been operating in Macau for decades, but the returns they have received are far less than what the Haihan people have achieved from operating in Sanya for only a few years. The superiority of their methods is also evident.
It was only after Thomas recognized this situation that he firmly chose to cooperate with Haihan. Whether it was the Governor of Goa or the Macau Council, the reports he submitted always urged him to reach various cooperation agreements with Haihan. . Facts have also proved that Thomas's proposition is effective. The Portuguese's trade in the Far East has shown an obvious upward trend year by year in recent years. In the past, goods that needed to be purchased secretly through smuggling trade can now be purchased openly. Come in - of course, these supplies basically have to be obtained from Haihan. Although Haihan will take away a lot of money because of this, the situation is still much better than before. What's more, the arms provided by Haihan in recent years have also allowed the Portuguese to make a lot of money.
Yesterday’s chapter should be Chapter 968, please note
(End of chapter)