Xu An had thought his second grandfather would talk about the development of the hot springs at the end, but after listening to him talk about the aquaculture plan for the mudflats over the next three years, his grandfather stopped talking. He didn't know if his grandfather had forgotten or if it wasn't part of the plan.
"Second Grandfather, your three-year plan doesn't seem to mention the development of the hot spring. Is it because the plan hasn't been finalized yet, or something else?" After hesitating for a couple of seconds, Xu An decided to ask directly.
"The hot spring!" Second Grandfather stroked his elegant goatee and said leisurely, "We'll have to see how the mudflat aquaculture harvest goes next year before we can make any plans for the hot spring."
"Can't this be developed like mudflats, with a special loan applied for first?" Xu An asked, puzzled.
"We can't apply," the second grandfather shook his head and said, "The loan amount that our village is currently applying for is already close to the limit. The risk is too great. We can't apply for a large loan before it generates actual benefits."
"Moreover, I asked relevant companies and institutions, and the development cost of an offshore hot spring is more than three times that of a land-based hot spring. If this hot spring were on land, the development cost would be at most 20 million; but since this hot spring is at sea, the development cost would have to rise to 50 to 60 million!"
Upon hearing this number, everyone in the room gasped in unison. Fifty or sixty million! How many years would it take to raise that much money?
"How about we give up the right to use the hot spring and let someone with the ability develop it, and we just want a share of the profits?" Uncle Guosheng's mind worked quickly, and he immediately gave a suggestion.
“That’s something we can consider, but we need to look carefully and find a suitable developer, lest they turn their backs on us and kick us out.” Clearly, Second Grandfather had considered Uncle Guosheng’s suggestion, and Uncle Guosheng immediately chimed in after he finished speaking.
“I don’t think that’s appropriate. The hot spring source is right on our mudflats. What if the developer isn’t on our side and later dumps all the sewage and other waste into our mudflats? Wouldn’t that be like inviting a wolf into the house?” Uncle Dongliang was still upset about the poisoning incident last time and immediately jumped out to refute it.
"There's a contract, we can agree on that beforehand."
"Contracts aren't a panacea."
“.”
As the two groups of people in the courtyard were arguing and bickering because of Uncle Guosheng's suggestion, Xu An's phone suddenly vibrated.
Xu An glanced at the crowd arguing animatedly, then silently took a few steps back, took out his phone to check the message. It was an email from Hannan Financing Guarantee Company.
[Based on relevant qualifications and business performance assessments, the maximum loan amount can be 24 million yuan, secured by company real estate and tax payments.]
Twenty-four million is four million more than the amount we discussed over the phone. However, my desired amount is between ten million and fifteen million. Going straight to twenty-four million seems to put too much pressure on me. The leverage is too high!
"The total development cost is fifty to sixty million. If it is divided into four or five phases, can we start construction earlier?"
"Even if the development is divided into six phases, the first phase will cost eight to ten million yuan. Where will that money come from? Of the more than five million yuan we've spent on leasing and developing this mudflat, half came from loans, and the other half was scraped together by every single household."
The initial development cost is between eight and ten million.
After Xu An's ears picked up the words, his gaze instinctively fell on the prominent traditional Chinese characters for 'twenty-four million' in the email.
Acquisition of all greenhouses + factory leasing and development + establishment of a cold chain transportation fleet + construction of the Hezibao factory + simultaneous expansion of Xu's Braised Food in 21 prefecture-level cities + expansion of Xu's Catering = between 10-15 million.
If we leverage it to the maximum and secure this 24 million loan, the remaining funds seem to be just enough for the first phase of development costs for the offshore hot spring!
Moreover, I am a native of Xujia Village, and I have invested my own funds in the tidal flats. There is absolutely no need for anyone to worry that I will destroy the tidal flat aquaculture plan in order to develop the hot spring.
As for revenue, Beitun Town is a very good example. Beitun Town has developed rapidly thanks to its golden beach coastline, and its total revenue in September broke the record high, reaching 86 million!
Before the development of tourism resources, Beitun Town's highest monthly total income was no more than 20 million yuan.
This data shows that as long as the hot spring is properly developed, even if it doesn't make a fortune, the initial investment will definitely be recouped.
After all, this is a hot spring by the sea! This is something even rarer, more exotic, and more novel than the Gold Coast!
"Second Grandfather, how about we all consider transferring the right to use the hot spring to me, so I can develop it?" Xu An put away his phone, his expression serious and earnest, and asked in a clear and articulate voice.
(End of this chapter)
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