Journey 1995:Non-Stop

Chapter 440 Journey at a Haste (The End)

Yan Hui has been extremely busy lately. He has a lot to do and hardly any rest time. Working 15 or 16 hours a day is the norm for him.

It is said that the First Emperor of Qin reviewed memorials for more than ten hours a day, slept only 4 hours a day, and worked year-round. Although Yan Hui did not reach that level, he also basically had no time for himself.

In August, Heng Hui Company's construction work was basically completed. The canteen, dormitory building, and east workshop were all finished at the same time. Except for the dormitory building, which still needed further decoration, the other buildings were put into use. Construction vehicles had gradually left the compound.

The temporary canteens that had served everyone for several years were demolished and replaced by a brand-new large canteen, which is also two stories high. There are four private rooms on the second floor, one of which is for Yan Hui's personal use and is not open to the public on weekdays.

The doghouse next to the temporary canteen was also moved to the next canteen, and Lingling now had her own new home. Nine-year-old Lingling became increasingly composed, usually indifferent to everyone, only becoming enthusiastic when she saw Yan Hui.

Yan Hui spends a lot of time at the company, and occasionally Lingling will come to Yan Hui's office to wander around. She will lie down next to Yan Hui for a while, and then go out for a walk. No one in the whole compound dares to stop her.

After several months of preparation, the basic structure of the group's headquarters has gradually taken shape. From now on, employees can say to others that they are employees of Heng Hui Group.

The group currently integrates five subsidiaries: chemical, steel trading, ceramic tiles, mining, and calcium oxide. The plywood business is not included; it is a small company independently operated by Yan Hui.

In addition, Yan Hui ultimately decided to set up his own concrete water-reducing agent production line, producing the most common naphthalene-based water-reducing agent, located directly in the east workshop. He has already purchased some equipment and is preparing to begin research and development. Naphthalene-based water-reducing agents pose no significant technical challenge for Heng Hui Group at present; the total investment in research and development, including equipment, can be completed with 1000 million yuan.

Heng Hui Chemical's yard can accommodate about four workshops. Yan Hui is already planning to build a third workshop, and the planning and approval process has begun.

The biggest advantage of group-based operation is that it gives everyone a sense of belonging and makes it easier to manage in a unified manner.

Heng Hui Chemical is currently the core industry of Heng Hui Group, with a valuation already exceeding 100 million yuan. Recently, there has been good news: of the two new polyurethane products that they had been working on, one has been successfully developed and has undergone several production runs, while the other has achieved 80% of the target value. In other words, although it did not reach the previously expected high-temperature resistance, it is already classified as a high-temperature resistant material.

Therefore, Yan Hui contacted Chen Jian to discuss new patent applications. Yan Hui will continue to invest in the research and development of these two materials, striving to achieve the perfect effect he desires as soon as possible. He expects the patent application to be successful in 2011, at which time the products will be launched on the market, and he hopes to create a truly flagship product.

The third workshop, which is currently under review and construction, is specifically for the production of the new polyurethane materials.

To Yan Hui's surprise, less than two weeks after he submitted his patent application, relevant leaders came to his door.

High-tech venture capital.

This is a wholly-owned company established by the High-tech Zone Management Committee, so its corporate structure is self-evident.

Besides the leaders from Gaoxin Venture Capital, the district leaders, including the district's second-in-command, also came to see Yan Hui.

Before this, Yan Hui had often been in contact with these leaders, but he never expected that they would take the initiative to come to him, not for a visit or study tour.

The district head was a leader Yan Hui knew very well, and the two had communicated by phone before he came.

The purpose of this visit is that the district hopes to support Heng Hui Group's listing on the stock exchange and has proactively offered to invest and participate in the company.

Given Heng Hui Group's current development trajectory, Yan Hui would certainly be unwilling to let ordinary people invest, but Gaoxin Venture Capital is hard to refuse, at least Yan Hui has no way to refuse them yet.

This kind of thing has both advantages and disadvantages, but overall it has more advantages. You should know that there are only a handful of companies that can get venture capital firms to actively seek them out.

“We’ve conducted detailed market research and studied relevant national policies. According to our estimates, by next year at the latest, all adhesives used in passenger cars will be completely replaced with environmentally friendly polyurethane. At that time, an incremental market will emerge, and Heng Hui Chemical will inevitably face resistance in this process. You know, after these years of development, the number of domestic polyurethane manufacturers has also increased. We hope to gradually expand our polyurethane production capacity, jointly expand new markets, and build up the market. In addition, we are willing to fully support our subsequent IPO preparation.” The company leader handed Yan Hui some materials.

These materials are the district's analysis of Heng Hui Group, as well as an analysis of relevant policies.

This analytical material is quite valuable to Yan Hui because it offers a different perspective. This report, produced from the government's standpoint, is something Yan Hui couldn't normally buy even with money.

He glanced at it quickly: "I need to communicate with the heads of various departments in the group about this matter."

“Of course, we have been cooperating for many years, and we feel that it has not been easy for Heng Hui Group to get to this point. If it takes another step, the district is willing to provide support,” the district head said with a smile.

"This document." Because there were many people present, Yan Hui couldn't examine it closely. He was too familiar with Heng Hui Group, so he read through it very quickly. Soon, Yan Hui reached the last part of the analysis document.

Valuation.

The district values ​​Heng Hui Group at 3 million.

Yan Hui stared at this number for a long time.

3 million, that's not his ideal valuation.

In Yan Hui's mind, Heng Hui Chemical alone is valued at around 3 million yuan, and the other companies combined are valued at around 1.5 million yuan, for a total valuation of around 4.5 million yuan.

"That number is impossible." Yan Hui didn't give anyone face; at this moment, he had to show his stance.

Cooperation is possible, but such concessions are not acceptable.

"What is your approximate valuation of the group, Mr. Yan?" the company leader asked.

"I think Heng Hui Chemical is valued at 3 million, and the group is valued at over 4.5 million. This is a relatively conservative estimate," Yan Hui said frankly.

“We can discuss the price of 3 million, but 4.5 million…” The company leader shook his head slightly. “The district cannot approve of this valuation.”

"Well," Yan Hui breathed a sigh of relief. He didn't act impulsively and asked, "How much of a share does the district plan to take? Can this be discussed?"

“We don’t want to disrupt Heng Hui Group’s operations. Considering the future dilution of shares, we also hope to retain some say. Currently, we hope to obtain 25% of the shares.” “15%, that’s the limit, there’s no room for negotiation.” Yan Hui stated firmly.

Before these people arrived, Yan Hui had received several well-intentioned phone calls from leaders, so he knew what was going on. He had carefully calculated the proportions involved.

Yan Hui owns 80% of Heng Hui Chemical. If 15% of the total shares are diluted, Yan Hui's shareholding will decrease from 80% to 68%, exceeding 66.7%, and he will still have absolute control.

"Our bottom line is 20%. Before coming here, we also considered Mr. Yan's concerns. Mr. Yan needs absolute control. In fact, apart from Heng Hui Chemical, Mr. Yan holds more than 90% of almost all other companies, except for Heng Hui Chemical, which he holds 80%. In order to satisfy both of us, we are willing to spend money to purchase this 5% stake from the other three shareholders. I think the three parties should be willing." The company leader spoke very calmly.

"If Heng Hui Chemical's valuation reaches 3 million, and you take in a 20% stake to dilute it, then the total value of our original equity will be 240 million. Each 1% equity stake is about 2.4 million. If you want to acquire an additional 5% equity stake, you need to purchase 6.25% of the original equity stake. On average, each person will give up about 2%, which means each person can get about 500 million. Is that what you mean?" Yan Hui asked.

"Mr. Yan's math skills are excellent." The company leader nodded. "Although we can't value Heng Hui Chemical at 3 million, if each of them were to give up 2% of their shares, they would definitely receive over four million. In that case, they would all receive a large sum of cash, while Mr. Yan would still maintain absolute control. Actually, our main investment is in you personally. If you don't have absolute control, we believe this deal won't work. Although equity and voting rights are not tied, we still believe that your absolute control would benefit Heng Hui Group."

“If you can reach an agreement with the three shareholders, this percentage is acceptable. I think the three of them will agree, after all, it’s rare to have such an opportunity to get so much money.” Yan Hui nodded.

"Mr. Yan is very straightforward." The company leader was very pleased, not expecting Mr. Yan to be so sensible.

“It’s not that I’m quick to agree, it’s that I understand your company structure. Since you’ve stated your bottom line is 20%, that’s a concession from 25%. This percentage should be your firm rule, which I understand. And I also think your decision that I should have absolute control is acceptable. However, my agreement to this percentage doesn’t mean I agree to this deal. The percentage is fixed, but the price must be flexible. If we can’t reach an agreement on the valuation, then everything we’ve discussed before is just castles in the air.” Yan Hui was not going to easily concede on the valuation issue.

"We also need to have a meeting to discuss this. Mr. Yan, could you provide us with relevant supporting documents for the company's valuation soon? Even if the valuation is 3 million, we still need to invest 6000 million, which is no small amount. Any slight change will require a meeting to discuss it. This is not something we can decide here."

"Okay, I'll give you a report as soon as possible." Yan Hui felt his heart racing.

In any case, this is a field I'm unfamiliar with.

He had never imagined that the company would encounter such a situation at this stage. But now that they had come this far, they had to move forward. With this shareholder's backing, Yan Hui could also do some things more freely.

"President Yan was very agreeable." The district head was also very pleased, feeling that today's brief communication was very effective.

“This has always been my style of doing things. However, let me make this clear: my group is not entirely located in the High-tech Zone. Part of the factory at the calcium oxide plant has also been built. I hope that the center of my business is in our High-tech Zone, not over there.” Yan Hui also stated his position.

If we really have to deal with something he doesn't want to face, we can just start moving! Who's afraid of who!
"Mr. Yan, you're overthinking it. In recent years, we've provided Yan Hui Chemical with the fullest range of policies, including tax reductions and exemptions. You could say we've offered the best we can. Mr. Yan should know that," the district leader said with a smile.

Upon hearing the word "tax" mentioned by the leader, Yan Hui knew what it meant and nodded: "I look forward to growing together."

"If the investment is completed, we will send an executive vice president over. We hope that President Yan will prepare an office for us then," the company leader said with a smile.

"These are minor issues. We can even assign a secretary to this vice president to come along." Yan Hui locked in the maximum number of people allowed. This seemed polite, but in reality, it indicated that a maximum of two people were permitted, and one of them would be an assistant without any authority.

"no problem."

The entire communication process was brief and direct; in this setting, talking nonsense or repeating the same thing would be a complete loss of class.

This investment will significantly increase Heng Hui Group's influence and provide strong backing for the company's future development. If the cooperation is successful, the situation of being targeted for simply buying a mine will never happen again.

After seeing the group off, Yan Hui did not rush to convene a meeting.

When it comes to matters of great importance concerning the company's fate and future, no one can offer Yan Hui any real advice. Yan Hui holds meetings to discuss countless issues, but this is one that he must decide.

In fact, some things were already decided the moment you all sat down here today.

After everyone left, Yan Hui sat in his office and began to reflect on the past years.

He is 30 years old and can be said to have achieved worldly success. From starting from scratch to having a fortune of hundreds of millions today, he has walked a path that many people cannot walk in a lifetime in just 15 years.

He has done everything he could for his family and friends.

Some people have passed away, some have betrayed, and some are still here.

The past 15 years have flown by in the blink of an eye, as if nothing had happened, but the remarkable achievements are there to prove many things.

Despite braving wind and rain, Yan Hui still cannot see through the clouds before him. He keeps breaking through, and he flies high enough, but he sees even thicker clouds.

Yan Hui prefers to view this day as a summary of a major stage in his career.

Yan Hui lit a cigarette and quietly watched it burn. He didn't smoke it, but simply watched the tobacco slowly burn in the air.

A cigarette that hasn't been smoked burns very slowly, and most people simply don't have the patience to stare at it. But Yan Hui seemed to have plenty of time; he just watched it quietly.

Even as the cigarette burned down to almost half its original size, Yan Hui's hand remained steady and firm, without the slightest tremor.

However, the structure of tobacco means that it cannot maintain its structural state for long after burning; the ash eventually breaks off at this point.

They fell into despair.

(End of book)

(End of this chapter)