Underground resources are finite, so the reason they form conglomerates is to pool their resources and make diversified investments to maintain their wealth.
This is similar to the situation with Tamsik.
Whether satellite projects can be profitable depends on international developments.
This is no ordinary commodity; sometimes it requires government intervention.
Xing Baohua brought people from the desert country for a reason: firstly, these people are wealthy, and secondly, it's a matter of face that all countries have to give them.
The projects in which they have invested are given due respect by major world powers.
If you don't give them face, they might band together to carry out oil field maintenance and production cuts. Who will be the most upset? It's the countries that import oil.
When oil prices rise, global oil prices will rise as well.
Next, Xing Baohua used the example of motorcycle satellite communication chips to explain profitability, saying how much each chip costs and how much the cost would be reduced if his rice factory produced them.
His products are used in cars, ships, and airplanes. Not even considering communications, just the positioning aspect alone has a market share of 30 to 50 billion yuan every year.
In addition, there's communication and broadband.
He also brought out the miniature satellite mobile base station that he had been tinkering with at the base and showed everyone how to use it.
Buy a package deal and get equipment free, or buy equipment and get a package deal free. They've essentially copied the old "no-package" gimmick from the past, making these investors feel like even underground oil wouldn't be as lucrative as a package deal!
In commercial mapping, not only can companies use it, but it can also be used to take aerial photos for people in other special industries.
The fee is charged per square kilometer, and Xing Baohua even introduced a VIP membership system.
Premium memberships, basic memberships, and packages within packages. A multi-faceted pricing structure.
Currently, commercial satellite operations are all based in the United States, one in maritime affairs and the other in motorcycles. Their only project is positioning and communication.
Putting aside the price, just look at the ship positioning services in the maritime industry—they make a fortune from that.
Xing Baohua's words sounded wonderful, focusing on how much profit he made and even the pricing for the motorcycles, but he didn't mention customer usage rates.
These things are all about proportions; if you want to make money, you have to lower the fees. Otherwise, you'll end up like a motorcycle taxi, not even having ten thousand customers, losing money hand over fist.
This is a classic case of seeing the thief making money but not seeing the thief getting beaten.
Negative things can't be talked about at all, they can't even be mentioned. You have to tell them about the good things.
If you don't paint a good picture, how can you attract investment?
After Xing Baohua finished speaking one morning, the people of the Desert Kingdom held a meeting during lunch break to discuss their plans.
Each person received a written report of Xing Baohua's speech. The team he brought included many economists and various experts; they were required to break down and analyze Xing Baohua's projects in detail.
Not only desert countries, but also the Tan Mas team and investment promotion team are analyzing it.
As for Xing Baohua's team, when they gathered together for a meeting, Huahong Group agreed to provide 50% of the funding, which amounted to 50 billion US dollars!
Although the projects Xing Baohua is currently leading look promising, such a large investment at once will strain the entire group.
Unless the parent company is taken out of the market and listed, raising funds through the market.
Xing Baohua reassured the shareholders that the money wouldn't be released all at once, but in stages.
This guy even grabbed the group of young masters and said, "You are all running your own families. Don't you know how to bridge the gap? And while the investment looks huge, it's not like you can all come up with that much money all at once. As long as you raise the start-up capital, get the project up and running first."
For large projects like this, the investment isn't all at once; it's done in phases. If any shareholder fails to pay according to regulations, then unfortunately, other shareholders will have to contribute or new shareholders will be brought in.
All of these things need to be written into the contract.
The last item is to take the satellite company public. Regardless of whether the satellite company makes money in the future, at least the shareholders will make money once it goes public.
With market value, the original shares held by shareholders become valuable. They can sell a portion to recoup their investment, and the rest can be earned through dividends. Even if they lose money, it doesn't matter.
They were more adept at these techniques than anyone else.
The young masters and shareholders of Huahong, let Xing Baohua show us the profits from Far East. If the profits are high, they can take some out and reinvest it in the company to expand their capital so they can follow Xing Baohua in the satellite project.
The dividends have indeed been low in recent years. Despite the group growing larger and larger, the actual amount of money received is not much.
It wouldn't make sense to ask my family for money to invest in a new project!
This led to the suggestion to see the Far East earnings report.
The Far East project was privately funded by Xing Baohua, not invested in the company's name. Although the company's resources and channels were used, who can blame him when he is the chairman?
The Far East's profits cannot be disclosed, nor can the financial statements be shown to the other party, otherwise the truth will be exposed.
Private equity and public offering investment are two different concepts. Private equity investors cannot clearly explain to investors what they are investing in.
The financial statements are presented to listed companies. Besides, these statements are created to appease investors.
And private equity? Let me tell you, what's the point of private equity making money? If you really want to know, you have to do one first, and it has to be the kind that loses money, so you'll give up on it.
It's the kind of thing that gets more and more frustrating the more you look at it; I'll just wait for the final result. Maybe I'll even make a profit?
“The situation in the Far East is not good, and we’ve lost a lot of money recently. Don’t send that money yet. I’ll give you back the principal and interest later. I’ll give you whatever I promised. I, Xing Baohua, have never kept my word before.” Xing Baohua’s words left these young shareholders speechless.
"So, how much more do you think we should invest?" Huo Shao asked.
"Huahong Group will take half, I'll figure out a way. As for the rest, I'll give you an opening: you can invest under your family's name and become small shareholders. How much you invest is up to you. Also, I'll be conducting part of the Series A financing, and you can take the opportunity to get out then!" Xing Baohua meant that these shareholders were supporting him.
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