Volume 7 I've Been Here Chapter 0972 Crisis Awareness
Sandeep spread his hands, "OK, the exotic fruit plantation. The exotic fruit is a fruit tree that BOSS participated in researching. It can grow 108 different kinds of fruits. It has almost no sales value, but it has a certain technical display value.
In addition, there is a jasmine rice farm. Since the output of the farm has always been consumed internally and cannot generate economic value, it is only registered under the name of Wangmu Fruit Industry, and the operating costs are borne by the medical team and the staff committee.
Currently, the Workers' Committee owes Wangmu Fruit Industry a total of 2.547 million US dollars. Eugene, please get the money back as soon as possible. In the middle of the month, the accounting team will audit the accounts of the agricultural team. "
The salaries of employees of Nan Group's companies are calculated by the company's financial personnel, and then the forms are sent to the accounting team for audit. If there are no problems with the forms, the accounting team will send the forms to Nan Guo Bank for a second audit. Once passed, Nan Guo Bank will notify the company's financial personnel to go to the bank for reconciliation, and then transfer the salaries to the employees' accounts on payday.
This is the process for salary payment. The welfare part is more complicated. Not only does the employee committee have to participate in the audit, but it also involves the issue of subsidies.
After all, the development conditions of each subsidiary are different. Some have considerable profits, while others are still in a loss-making state. The funds for the welfare payments of loss-making enterprises are temporarily provided to the enterprises by Nanshi Holdings in the name of borrowing.
This is done to protect the interests of employees. Nan's will be relatively cautious in allocating funds to high-risk subsidiaries. If it can borrow funds from outside, it will try its best to use them. Once a subsidiary fails to develop and enters bankruptcy liquidation, the employees' salaries are the top priority and there is no need to worry. However, Nan's excessively high benefits are difficult to deal with.
Therefore, welfare benefits were separated from the enterprise and funded directly by Nanshi Investment Holdings, with part of it paid to employees along with their salaries and part of it going into the pension fund and Dabing Fund of the employee committee.
Nan's adopted a system of separation of money and accounts. The money is in Nan Guo Bank and the accounts are in the accounting team. The accounting team has a capital structure bonus. The healthier Nan's capital structure is, the higher the bonus the team members will get.
One of the standards for a healthy capital structure is the interest generated by the funds. Simply put, within a reasonable range, if the accounting team can keep the money in Nan's account longer, the accounting team members can get more rewards.
Therefore, Nanshi Investment Holdings needed to pay the welfare funds (the part that went to the Workers' Committee) and it became a bit difficult to give up the money. The attitude of the accounting team was to delay it for a day. Dai Zhengping was of course not happy. The sooner the money arrived in the Workers' Committee's account, the more benefits the committee members would get. If the accounting team dared to delay, he would call Sandeep directly.
In this way, the accounting team and the workers' committee became at odds, and Sandeep was happy to do anything that could embarrass the workers' committee, including keeping an eye on Shennong Nanliang to collect debts.
After seeing Eugene nod, Sandeep continued.
“Wangmu Fruit Industry also has the brand ‘Seven Camels’, and has pistachio growing areas in Tashkent, Uzbekistan, Kerman, Yadzd, South Khorasan, Iran, and Morek in the north of Hama Province, Syria;
There are abalone purchasing companies in the Amazon jungle area of Brazil and Guyana, pine nut purchasing companies in the Baljinar area of Pakistan and the Lesser Khingan Mountains of China, walnut purchasing companies in Hebei Province and Hangzhou City of China, and hazelnut purchasing companies in Turkey and Northeast China.
There are macadamia nut growing areas in Hawaii, and pecan nut purchasing companies in Georgia, New Mexico, and Baja California, Mexico...
In addition, Wangmu Fruit also has a sales network of Happiness Stores in major cities around the world, as well as a cold chain network under the stores;
Wangmu Fruit Industry also established a joint venture with a cooperative in Lazio, Italy to operate the Hawk kiwifruit brand, Shanying Company.
Wangmu Fruit Industry is the first profitable subsidiary of Shennong Nanliang. Since its establishment, it has contributed a total profit of US$1.6592 billion to Nanliang. Due to its small assets, its internal valuation is low, only US$4.5 billion, with working capital of US$329 million and no debt.
Luban Forestry’s assets include: Huaguo Youxian Zhu Youxiao Wood Industry, Shiquan Wood Industry, and Areca Nut Company, and own forest areas in the United States, Canada, Australia, India, Myanmar, the Philippines, Laos, Madagascar and other countries.
After more than ten years of hoarding, Luban Forestry owns 350,000 cubic meters of precious woods such as golden nanmu, rosewood, big red rosewood, and huanghuali, as well as a large amount of felled and unfelled furniture wood. The current market value has exceeded US$9 billion.
Since Luban Forestry employs a large number of lumberjacks, security personnel, and transportation vehicles, as well as many hidden expenses, its internal valuation was greatly discounted to only US$7.5 billion, with US$5.42 million in working capital, a book loss of US$650 million, and liabilities of US$340 million. Its creditors include Southland Bank, Snow Mountain Trust, and Miss Rachel Nan personally.
Boss, I suggest selling some of the stockpiled timber to balance the accounts first."
Nan Yi nodded and thought to himself: "Now it seems that Luban Wood's operation has fallen into the inferior. The precious wood is just hoarded and has no potential for sustainable development. Furniture wood can be developed sustainably, but the profit it can create is limited. Compared with the investment of 650 million US dollars, it is not enough."
"Eugene, let Brookhan contact the precious timber merchants in China and Southeast Asia. It's time to start shipping in small quantities."
"OK."
"Nuwa Animal Husbandry's assets include: Clifton Hill Station, Anxi Cattle Farm, Montana Fox Ranch, three large ranches, medium-sized ranches in Argentina, Uruguay, Arkansas, Kansas, etc., Danish pig farms, Jeju Island Korean beef ranch in South Korea, Groningen dairy farm in the Netherlands, Utrecht automated chicken farm in the Netherlands...
There are too many. In addition to large and medium-sized farms, there are more than 300 small farms across all continents, covering everything, from two-legged chickens, ducks and geese to millipedes with more than a thousand legs, flying in the sky and running on the ground, there is nothing that Nuwa Animal Husbandry does not raise.
Boss, Nuwa Animal Husbandry is under too much pressure. The profits from profitable breeding projects such as cattle, pigs, sheep, chickens, ducks and geese are swallowed up by loss-making breeding projects, resulting in very ugly accounts. If the loss-making projects are cut off, Nuwa Animal Husbandry's profits will be very considerable. "
Nan Yi nodded again, "Let's put this issue aside for now and discuss it at the next meeting. You continue first."
"Since the main assets of Nuwa Animal Husbandry are livestock, it is meaningless to conduct valuation before the moment of sale, so the accounting team did not value it. Nuwa Animal Husbandry has 1.92 billion US dollars in liquid funds. Nanshi Investment has invested a total of 3.4 billion US dollars in it and recovered 450 million US dollars. Excluding currency depreciation, the book loss is 1.03 billion US dollars."
The number was quite large, but Nan Yi was not panicked. This loss was only at the financial level. Nuwa Animal Husbandry had a lot of fixed assets, so even if the fur was not counted, it would not be a real loss. If all the fur was cleared out, Nuwa Animal Husbandry would still have a profit of several billion US dollars.
Besides, Shennong Nanliang’s biggest profit-making machine is the agricultural finance under Shennong Wealth. With spot goods in hand, it can reap considerable profits from the futures market every year.
As long as they cannot achieve global monopoly and hold the power to adjust prices at will, it is simply unrealistic to make huge profits from farming and breeding. The only businesses that can make huge profits are those that are "unrelated businesses" that extend from farming and breeding.
For example, large-scale farmers and breeders in some countries get rich by relying on government subsidies, and some get rich by manipulating the market. Shennong Nanliang currently mainly relies on financial means to make profits.
“Jiang Shang’s fishery assets include: Xijing Company, French Oyster Company, Australian Oyster Company, Japanese Oyster Company, Frogman Farm and other farms, South China Sea Fleet, Tuna Fleet, King Crab Fleet, Salmon Fleet, Antarctic Krill Fleet and other fleets, 21 ocean-going fishing vessels and 157 offshore fishing vessels;
JS Cold Chain owns 8 large fixed-wing aircraft, 12 medium-sized aircraft, 7 small aircraft, 22 helicopters, 6 large cold storages, 15 medium-sized cold storages, and 130 small cold storages.
Carassius Breeding Company owns four large-scale fish fry cultivation bases, 41 small-scale ones, three fish feed production factories, nine small fixed-wing agricultural aircrafts and 12 helicopters.
Please cheer for Mr. Fang, the president of Jiangshang Fishery. Jiangshang Fishery started with less than 20 million Hong Kong dollars. During the development process, Nanshi Investment never allocated funds to it, but only several loans totaling 700 million US dollars. Now Jiangshang Fishery's internal valuation is 7.2 billion US dollars, with 2.1 billion US dollars in liquid funds and no debt. "
The development of Jiangshang Fishery is indeed very smooth. It entered the golden period of fishery development at the right time. It stood at the forefront, rode the wind and waves, and rolled step by step like a snowball to its current scale.
Nan Yi clapped along with everyone else, thinking that it was time to increase Fang Kong's shares again.
[Well, here's a tip. Don't think of the price of tens of millions or even hundreds of millions of dollars when you see the word "airplane". In fact, there are cheap airplanes. Agricultural airplanes are only tens of thousands of dollars, and helicopters are about a few hundred thousand dollars. Not all helicopters are Apaches, which can easily cost more than 200 million dollars.
If the money that Nan Youqiong, Nan Wuwei and the other four used to buy private planes was used to buy mid-range helicopters, they could have formed a Ranger Army with thousands of helicopters.
"Lu Yu Tea has two major companies: Lu Yu Tea Company and Shepherd Coffee Company. Lu Yu Tea has a Pu'er tea plantation in Nannuo Mountain, China, which occupies about 35% of the market for high-quality Pu'er tea. It also has a black tea plantation in Assam, India, and a Ceylon black tea plantation in Sri Lanka.
Lu Yu Tea Industry not only engages in bulk trade of tea, but also operates a brand of gold foil tea.
Since its establishment, Shepherd Coffee has acquired Blue Mountain Coffee Plantation in Jamaica, merged three coffee chain brands, namely Japan's Laurento, Germany's Chebo, and Canada's Third Cup, and established its own brand SoulCoffee. Currently, SoulCoffee has 5 stores in Seoul, South Korea, and its development momentum is good.
Shepherd Coffee is involved in bulk coffee trade in Jamaica, Indonesia, Brazil and other places, and has gained a certain voice in the coffee industry.
Shepherd Coffee's main profits currently come from bulk trade and coffee futures. The four coffee brands can only provide limited profits, especially Soul Coffee, which is still in the investment stage, and all profits are used for expansion.
Lu Yu Tea's internal valuation is US$740 million, with US$185 million in liquidity and no debt.
As China's economy develops, the demand for mid- to high-end tea has increased. We suggest increasing investment in tea plantations in China and trying to build a high-end tea brand."
The work of the accounting team is not just about accounting. It also has to perform functions such as strategic planning, financial strategy, comprehensive risk management, and investment and M&A value management. The accounting team will be involved in all of Nan's external M&A projects.
"Baoguo Rice Hub Company has three major industrial groups: Baoguo Rice Hub (planting), Baoguo Aquatic Products, and Baoguo Agricultural Machinery. Baoguo Rice Hub has planting areas in Gunma Prefecture, Chiba Prefecture, Kanagawa, and Hokkaido. It has cooperative demonstration fields in Huaguo Yumi Prefecture and the suburbs of Jingcheng, and has cooperated with the Kenzhi Group in mountain products.
Baoguo Fisheries' business is divided into two major parts: the eel farm in Aichi Prefecture and the stall rental business in seafood markets such as Tsukiji, Misaki Port, and Kawasaki Sakura.
Baoguo Agricultural Machinery includes its Osaka headquarters and SEMI in Italy, and is engaged in the production of large and small agricultural machinery and autogyro. Due to the acquisition of SEMI, its financial deficit is very serious.
Thanks to the existence of agricultural cooperatives in Japan, not only has the value of the 8,700 acres of farmland owned by Baoguo Mihu increased significantly, but rice, vegetables, watermelons, apples, and sterilized eggs can also generate huge profits every year.
The company is valued at $3.2 billion, with $390 million in liquidity. Since its inception, it has contributed a total profit of $900 million to the consortium, with $550 million in debt, including $300 million from PY Securities and $250 million from the Tokyo branch of Nangoku Bank. All of the debt comes from the acquisition of Saimai.
Sandeep pressed the remote control again. "Shennong Wealth has Agricultural Capital, Agricultural Finance, and Agricultural Investment Holdings. Agricultural Capital mainly invests in upstream enterprises of agricultural-related means of production and is currently in the investment stage; Agricultural Finance is responsible for Shennong Nanliang's investment and speculation in the financial field; Agricultural Investment Holdings is responsible for investing in catering companies.
Shennong Wealth has only a small amount of fixed assets such as buildings, vehicles, office supplies, etc., which are of relatively low value and there is no need for valuation. It has US$6.2 billion in liquid funds and no debt.
Shennong Nanliang has a total valuation of US$42.84 billion, total liquidity of US$12.59042 billion, and total liabilities of US$890 million.
Overall, Shennong Nanliang's development is relatively healthy. The amount of working capital minus liabilities and plus the profits submitted is only US$2.7 billion less than the amount invested by Nan's Control Investment. That is, US$2.7 billion was exchanged for a valuation of US$42.84 billion, an increase of 15.86 times.
I hope that Shennong Nanliang will be able to generate more profit than it invests in the next ten years.”
Sandeep took a new stack of slides and loaded them into the projector, clapped his hands, and said, "OK, the Shennong Nanliang section is over. Next, I will start to introduce the status of enterprises in the energy and mineral fields.
Nan’s companies in the energy and minerals sector include Scarlett Mining Group, Scarlett Oil Group, Taylor United Gold Group, and Adler Future.
Scarlett Mining Group owns the Guinea Iron Mine and the Guinea Boke Aluminum Mine. These two mines cooperate with local military forces and only account for 35% of the profits.
Since military coups are common in Guinea, our partners may move at any time, and we will have to look for new partners at that time. It is unknown how much profit we can get. Therefore, these two mines are not included in the assets.
Scarlett Mining Group also owns the Voyages Bay Nickel Mine in Canada, the Panda Koala Arctic Fox Diamond Mine, the Atacama Salt Lake in northern Chile, the Uyuni Salt Lake in Bolivia, the Umbre Muerto Salt Lake in Argentina, and the Li Ranch in Australia.
Escondida Copper Mine in Chile and Las Bambas Copper Mine in Peru;
The three aluminum mines, namely, Juruti Aluminum Mine in Brazil, Kendawangan Aluminum Mine in Indonesia, and Baphlimali Aluminum Mine in India, are not controlled by Scarlett Mining Group, which only holds 25%, 20%, and 15% of the shares respectively.
Scarlett Mining Group has cooperated with local forces in Indonesia's Aceh Province to jointly develop gold, silver and coal mines, and owns several medium-sized coal mines in Sumatra and West Java.
It owns the 30-year mining rights for the No. 107 pit of the Hongji Anthracite Mine in Vietnam, and two proven, unexploited coking coal mines within the ranch of Nuwa Ranch in Montana.
Scarlett Mining Group owns several small gold and diamond mines in politically stable countries in Africa, and also owns several gold and diamond mines in several politically unstable countries. Like the two mines in Guinea, they may be seized or abandoned at any time.
In the past two years, several major powers have been taking increasingly larger actions in Africa, including supporting rebels and providing diplomatic assistance. It will soon become an arena for proxy battles and weapons testing grounds among major powers. Perhaps one day, there will be no place for the South to stand.
At present, we at Nanshi are in a wait-and-see state. We will not expand our investment in African minerals until the situation becomes clear.
The next major target of Scarlett Mining Group is iron ore in Australia and Brazil. BHP Billiton, Rio Tinto and Vale are all companies we are trying to acquire shares in, and our main competitor will be Mitsui & Co.
"Nansheng, our Nan Group's development policy has always been to avoid competition with the old financial groups as much as possible. Should we change our policy starting with Mitsui & Co.?" said Kuang Jinsheng, leader of the Petroleum & Minerals Group.
Nan Yi smiled and said, "Since 1977, I have always had a very strong sense of urgency, urging myself to hurry up, to make the first pot of gold quickly, and to expand my business quickly. Somehow, I can feel that the best career development period for me is the next 20 years or so.
In fact, my feeling is not wrong. Our Nan Group has encountered a very good golden fifteen years. If it were not for this opportunity, our Nan Group would not have developed to the point where it is today.
A five-star hotel would not regard a small hotel in Yau Ma Tei as a competitor , nor would it think that one day the small hotel would grow into a five-star hotel and become its strong competitor. Naturally, it would not lower itself to deal with a small hotel.
Yesterday, our Nan Group was just an insignificant little character. No consortium would pay attention to us. If we keep a low profile, we will naturally have room to grow and develop.
Today, our Nan Group has shown its fangs and has grown into an emerging consortium that can threaten the old consortiums. We have to thank Scarlett. If it weren't for her identity as a member of a wealthy Jewish family, perhaps our Nan Group would have been strangled by the old consortium ten years ago.
If it weren’t for Scarlett, our Nan Group wouldn’t have had the opportunity to invest in so many promising companies in the United States, nor would it have been so easy to make friends with American financial groups.
Maybe we have fallen apart, and I am sitting in some prison in the United States, or the situation is slightly better, I have been fined to bankruptcy, returned to China in disgrace, and started over by reselling clothes. "
"Adam, you won't be beaten to death. The Morgan family admires your talent very much, and you will become a senior executive of the Morgan Consortium." Scarlett said in a teasing tone.
"Ahaha, I like freedom. I would rather be a small boss than work for others." Nan Yi replied to Scarlett with a smile, and continued: "Nan Group has developed to this stage. Even if we continue to behave very gently, other financial groups will not think that we are harmless.
As I said before, we are sailing against the current. If we don't move forward, we will move backward. We, the Nan family, cannot stay in hiding forever. In a few years, after we have eaten up all the food we have already occupied, we will naturally start to envy what is in other people's bowls.
My name is Adam, but I am not God’s illegitimate son. The world will not arrange the plot according to our progress. Before we take the initiative to fight out, others will definitely throw grenades in through the window, so…”
Nan Yi's gentle gaze suddenly became sharp, and he slowly swept across the faces of everyone in the conference room from left to right. "Each of us should put aside our comfort and be more vigilant in our hearts. Whether it is work or private life, we must be careful, make fewer mistakes, and reveal fewer flaws that others can take advantage of."
"Nansheng, do you want to increase the security level of the Intelligence and Planning Committee personnel?" Liang Huiwen asked.
"Not only the security level of personnel should be raised, but also the confidentiality level of information and data should be raised. The computers should also be upgraded and replaced with computers without interfaces, which cannot be copied or disassembled as soon as possible."
Liang Huiwen nodded, "I will urge Merlion and Silverthroat to assemble an iterative computer."
Nan Yi nodded and said to Sandeep, "Go on."
"Scarlett Mining Group has always been violently mining minerals with unstable ownership and conservatively mining minerals with stable ownership. Last year, the minerals mined were worth $1.7 billion, and $1.2 billion was realized. Only a small amount of the mined gold was sold, and most of it was included in the reserve after refining.
Since its establishment, Scarlett Mining Group has contributed $7 billion in profits to Nanshi, as well as gold reserves worth $3.2 billion, and the group has $3.5 billion in liquidity and no debt in its accounts.
"Wait a minute." Nan Yi interrupted Sandep and said to the intercom beside him: "Scarlett, where is the 20 tons of gold you seized that year?"
"Adam, you shouldn't have noticed that the gold is in the manor."
"OK, go ahead."
In the basement of Scarlett's manor, there is a vault where the Nan family's belongings are stored, as well as small vaults belonging to Nan Yi, Scarlett, and Nan Youqiong. Nan Yi never visits the other two's small vaults, so he doesn't know what's in them. Judging from Scarlett's tone, the gold should be in Nan Youqiong's small vault.
“Scarlett Petroleum owns 65% of Husky Energy after three cuts; three drilling rigs in the Gulf of Mexico; two oil fields in Dubai that were won through bidding; one field in the Zakum oil field area in the United Arab Emirates; and one field in the Raudhatain oil field area in Kuwait, which is a joint venture with the Kuwaiti government.
Scarlett Oil has been producing 280,000 barrels per day since the start of this year, and is expected to generate revenues of between $1.8 billion and $1.9 billion this year.”
Elaud von Mackensen, deputy head of the Oil & Minerals Group and president of Scarlett Oil, said: "There won't be so much this year. Oil prices are likely to fall below $17 in the next few months. $1.7 billion is a reasonable forecast revenue figure.
In addition, Dubai and Sharjah will have a number of oil fields up for bidding this year. With our financial strength and good relations in Dubai, it will be no problem for us to bid for two relatively high-quality oil fields, and our daily output will continue to increase next year."
Nan Yi said: "Ailaoduo, pay attention to Qatar. Hamad may follow his father's old path."
Although Hamad's palace coup has not yet happened, whether it is because his father Khalifa came to power illegitimately, or because Khalifa is too cautious about Hamad and does not give him the power that Crown Prince should have, or because Hamad has publicly expressed his dissatisfaction with Khalifa for tying Qatar's economic lifeline to oil.
All these signs have given the outside world room to speculate about a coup. Nan Yi's statement is nothing new. The outside world has already had similar speculations, and they are still very popular.
Elaudot von Mackensen nodded and said, "If Hamad really takes the step of a coup, Qatar will definitely vigorously develop its natural gas industry and absorb external funds.
Judging from Qatar’s colonial history and its adherence to the principle of nationalization of natural resources after independence, it is unlikely that Qatar will sell its natural gas mines and oil fields to other countries.”
"The external funds absorbed need to be repaid. The only ones interested in investing in Qatar's natural gas business are energy giants and consortiums from Japan and South Korea, which are extremely dependent on energy imports.
Whether it is energy giants or Japanese and Korean consortiums, what they want is not the interest generated by investment, but natural gas. Therefore, it doesn’t matter if Qatar does not sell natural gas mines, as long as it can get a long-term agreement for natural gas.
I believe that the price of natural gas still has a lot of room to rise. With the agreement in hand, we may not even need to go to Qatar to pump natural gas. We can reap great rewards just by selling our shares.
Ailaoduo, it is simply unrealistic for the Nan family to gain a say in the oil sector. Our goal is to make money, the more the better, the faster the better. There is no need to consider long-term layout.
Scarlett Petroleum needs to change its positioning. We should continue to eat crude oil as long as we have it, but we should also expand our layout in the petrochemical field. I mean investing in emerging petrochemical companies and holding a certain share, rather than developing the petrochemical industry ourselves."
Elaudot von Mackensen thought for a moment and asked tentatively, "China?"
"Well, industry cannot do without plastics, and plastics cannot do without petrochemicals. China's industry is developing rapidly, and there is a huge demand for plastics. We can invest moderately in petrochemicals and heavily in plastics companies."
"Boss, isn't this putting the cart before the horse?"
"In theory, yes, but not in essence. Ailaoduo, you pay too little attention to China. Talk more with other people in the Intelligence Committee who are familiar with China, and you will understand the complexity of cooperating with large state-owned enterprises in China."
"OK."
