Chapter 637 Mining Area
The several coal mines under Huashen Coal Industry Company are located some ten kilometers away from the town, while the farthest ones are some twenty to thirty kilometers away.
When the convoy passed through the town, Fan Wumian took a special look and found that although the streets were clean, everything looked simple and shabby.
These days, first- and second-tier cities are developing rapidly, but small places have not yet enjoyed many benefits in terms of infrastructure. The gravel road leading to the mining area is bumpy and full of dents from being crushed by large trucks.
Before taking pictures of this company, Fan Wumian specifically read the detailed information and learned that the coal mined by the company was mainly sold to other places through the docks, so transportation was quite convenient.
A few kilometers away from the small town, he did see a river with towering "coal mountains" on both sides of the river.
The water looks a bit dirty, probably because the rainwater has brought coal ash into the river. We are now busy developing the economy and have not taken care of many aspects.
Going further, you can see many large and small coal mining companies. During the New Year period, there are still convoys transporting coal speeding through the road.
Fan Wumian specifically reminded:
"When you see a big truck, give way. These trucks are so overloaded that you may not be able to stop even if you want to."
"They are still working on the New Year's Day. Could it be that they are taking advantage of the holiday to secretly mine coal?"
"Now a ton of coal is worth more than 300 yuan, while the average wage per capita in Yanjing is only 3000 yuan. As long as 10 tons are dug out, it is equivalent to earning a month's salary. No wonder there are countless illegal coal mines everywhere. They do not need to pay taxes or mining transfer fees. After deducting costs, all they get is profit."
Thinking about it this way, it is no wonder that countless coal bosses in the "black gold era" dared to treat money as paper and play around in the entertainment industry.
Sometimes, just to make a beloved young girl happy, they would buy a script and start filming. Some people even know nothing about the situation in the film and television industry. If they can't sell the film after filming, they can only throw the film into the warehouse to collect dust, but this does not stop them from pouring in.
Pu Jiajing went home for the New Year. The bodyguard Qian Ge, who was driving, asked Fan Wumian:
"For example, the coal company that Mr. Fan bought has an annual output of about 200 million tons. At this price, wouldn't they be able to dig out 6 million yuan a year?"
Fan Wumian laughed dumbly and shook his head and said:
"It's not that profitable. The company has more than 400 employees, all of whom need to be supported. In addition, there are transportation, taxes and other expenses. It would be good if the net profit margin can be maintained at around 15%."
"The total mining rights are 20 years, and there are more than 16 years left. If an accident occurs in the mine, there is a risk of being shut down for rectification if there are any aspects that are not done properly."
"I spent more than 7 million yuan to acquire this company. Based on an average annual net profit of 9000 million yuan, I can earn a total of about 16 billion yuan in 14 years, which is equivalent to a few percentage points of net profit each year. This business is very boring. If I wasn't betting that coal prices would rise, I wouldn't bother to do this resource-intensive, low-end business."
The bodyguard Qian Ge was confused after hearing this and asked in confusion:
"How does Mr. Fan know that the rise in coal prices is related to the recent financial crisis? That's not right. If the economy is in recession, shouldn't the market demand for coal fall?"
Since he was free anyway, Fan Wumian explained casually:
"Look at how many coal mines there are along the way. Many of them do not have complete formalities and safety accidents often occur. I heard that they will soon be closed down and rectified."
"Once those small coal mines are shut down, there will definitely be a coal shortage in the market in the short term, and prices will naturally soar in a short period of time."
"All I need to do is seize an opportunity and sell the company at a high price, cashing in the income for several years in the future at one time. Only in this way can the profit rate brought by the investment reach a number that satisfies me."
The bodyguard, Brother Qian, had strong limbs but no business sense. He seemed to understand what was said and replied:
"We should be careful. Mr. Fan has bought this coal company, so many people will be watching it. If something goes wrong, it will probably cause a big stir."
"Yes."
Fan Wumian raised the corners of his mouth and added:
"That's why I want to use this place as a location to shoot a movie for two or three months. The money earned from the movie can be used as wages to support the workers who are out of business at home. As long as they don't start working, there will be no safety hazards, right?" "I heard that a document to strictly investigate illegal coal mines is about to be issued. If I'm lucky, maybe I can find a new buyer for this company right after I finish shooting the movie here."
"I don't have high requirements. As long as I can make 300 or 400 million, I will be very satisfied."
The coal cycle generally lasts 4 to 6 years. The bottom of the last cycle was in 2002, so it is almost time for the top of this cycle.
For this speculation, Fan Wumian just made a casual plan and felt that the results would be seen in about a year.
In recent years, with the rapid economic development, coal bosses have begun to step onto the stage. Stories like spending 500 million in investment to make a female star accompany him for seven days and seven nights, spending 1200 million on a relationship with a female star and breaking up at dawn, and using sacks of cash to buy houses everywhere are still talked about many years later.
The loan that Huashen Coal Company owed to the bank has now been renewed by the bank, and there is no rush to pay it back. The actual funds he used to buy the company were only more than 7000 million yuan.
Even among the 7000 million RMB, most of it came from loans from Bank of China (Hong Kong).
This means that if the company is sold, the net profit can reach 10 to million RMB, and Fan Wumian's actual return on investment has the opportunity to reach around times.
The theoretical profit margin is no less than investing in Penguin, Amazon and other Internet projects in the same period of time. This is also the fundamental reason why he is willing to spend time and energy on it.
Ordinary people often only see the surface.
For example, a real estate businessman invests 100 million yuan and eventually makes another million yuan from selling houses, but it seems that the net profit margin is only %.
However, the actual investment amount of this real estate businessman was probably only RMB 3000 million, which caused the net profit margin to soar to about 333%.
The actual investment ratio of many real estate companies is less than 30%. They only use the money of customers and banks to arbitrage frantically in the market. This has led to many real estate businessmen accumulating wealth at a rapid speed and completing the original accumulation of capital quickly through legal means.
When it comes to borrowing money from the bank to make money for oneself, Fan Wumian himself is obviously one of the best. Not only does he have assets to pledge to the bank, he can also always find the most profitable investment projects. Of course, his net worth can soar.
Arrived at the mining area.
There was nothing to see in the coal mine. After walking for a while, the soles of my shoes were covered with mud and coal.
The reason why "Hua Shen Coal Mine" is called this name is because there is a Hua Shen Temple with an unknown history nearby, and the ravine not far away is full of mountain peach blossoms and forsythia.
Although it is messy, it looks good overall. The annual output can reach about 200 million tons, which means that all kinds of basic equipment are available.
Fan Wumian just took a quick look around and then asked which warehouse the dinosaur fossil was kept in.
The previous security captain was a relative of his, and Fan Wumian was worried about him, fearing that the company might embezzle the goods. So the newly hired security captain came from a regular security company, and he enthusiastically took him on a tour of the warehouse.
When we arrived at the warehouse, we saw that the ground in the corner was covered with stones and fossils, which could almost be pieced together to form a complete dinosaur skeleton.
Fan Wumian was shocked by its size and asked in surprise, "Does anyone know what kind of dragon this is?"
A young security guard raised his hand and said:
"My former boss asked someone about it! He said it looked like an 'unusual Huabei dragon'. We thought we had dug up the dragon king because its neck was so long. Many miners were so scared that they wanted to resign, fearing that something might happen here!"
"Many people in the village have never been to school and are very superstitious about these things. Later, the boss had no choice but to find a Taoist priest to perform a ritual, and everyone finally felt relieved."
"I dug up a nest of dragon eggs before. They looked like just lumps of stone. They were not worth much. Someone only sold them for 200 yuan." (End of this chapter)