Chapter 298 Earn It First One Hundred Million Dollars (Seeking Monthly Pass)

Chapter 298 Earn It First One Hundred Million Dollars (Seeking Monthly Pass)

Technology shares are intangible assets, and the proportion of shares generally can be negotiated, and there is no limit on how much.

Mu Yang had estimated it earlier, and replied: "With the technological advancement of our aluminum alloy automotive panels, it is not an exaggeration to be able to guarantee the world's leading position for five to ten years.

Therefore, no matter how much the two parties invest, whether to expand or reduce the scale, our technology investment accounts for 30% of the total shares. "

After hearing this, Assam was startled and shook his head: "Mr. Mu, this is impossible!

30% is too high a ratio for us to accept. "

"This ratio is not high at all. Instead, I say it is cheap. Even if it is the price, the annual technology licensing fee of 250 million US dollars is not too much."

Assam refused: "Mr. Mu, I don't deny that your technology is very advanced, but it all depends on how much money the two parties can make from the cooperation.

To generate a profit of 250 million U.S. dollars, according to your calculation, at least 130,000 tons of aluminum alloy automotive plates must be sold, which is too much. Our Hydro Aluminum Company sold 180,000 tons last year, and we still can’t make so much money. It’s expensive. Didn't Fang let us work for nothing, so what's the point of cooperation! "

"If we cooperate and can't sell 500,000 tons of aluminum alloy automotive sheets a year, it means that your sales channels are really not good, and this cooperation is really meaningless;

But if it can sell 500,000 tons, it will generate a profit of 1 billion US dollars per year. "Mu Yang said that even he was a little embarrassed. 30% of the technology share is indeed too high. He coughed, blushing, took a sip of tea and continued, "Since it's a cooperation, we don't ask for it. If you have too many shares, 60% of the total share capital is enough. As much as the total investment needs, everyone pays more and less. "

The ratio of 6:4 was discussed by the strategy department of Xinghai Group and Mu Yang. Both parties must make money, otherwise they cannot cooperate for a long time.

If Hydro Aluminum holds less than 30% of the shares, it would be better not to cooperate.

Asem retorted: "Mr. Mu, we can hold 40% of the shares, but it is impossible for technology to hold 30% of the shares. The maximum is 15%. Otherwise, our investment cost is too high, which is no different from cooperation or not."

The two sides bargained, there were many disputes, and they discussed for a long time.

Mu Yang also knew that this technology accounted for 30% of the shares, which was a bit too much. Everyone made concessions, and finally the 20% that could be negotiated was in line with his expectations.

The two parties plan to invest 600,000 tons of aluminum alloy automotive plates as a benchmark. Excluding the equipment, if it is a new factory, it is estimated that it will need 400 million US dollars. The construction cost will be borne by Hydro Aluminum.

This construction cost is much higher than the investment cost of Xinghai Group. After all, foreign optical infrastructure costs are much higher.

The cost of 30 production line equipment is 1.2 billion US dollars, that is to say, except that technology accounts for 20% of the shares, the total investment is 1.6 billion US dollars, and Xinghai Group still needs to account for 40%, that is, it has to bear 800 million US dollars.

Calculated, the Hydro Aluminum Company has to supply Xinghai Group with 400 million US dollars, which is also a total investment of 800 million US dollars.

Talking about the initial cooperation, the time passed very quickly.

The two sides had lunch, and after a lunch break, they continued to negotiate some details in the afternoon.

For example, in terms of market division, Xinghai Group can no longer enter the European and American markets to sell aluminum alloy automotive panels. There is no dispute about this.

Assam said: "Mr. Mu, we can withdraw from the Huaguo market."

"Mr. Asem, I think you made a mistake. This is not equal. Our products have great advantages, excellent performance and quality, and lower production costs. It will be a matter of time before we seize the domestic market and the Southeast Asian market. "

Mu Yang smiled and said, "Even if Novelis and Alcoa currently occupy the market, we will quickly seize it. There is a saying in Huaguo that Feng Shui takes turns."

"Uh, what you said has some truth, but at least in a short period of time, you can't do it. It's different from us quitting voluntarily." Assem shook his head and retorted, "Also, even if you sell cheaply and the quality is good, I Not all your domestic auto companies are willing to purchase your company's aluminum alloy automotive panels. For example, your state-owned Yiqi Group is still purchasing from our company and Alcoa.

Your state-owned enterprise doesn't purchase from Novelis, it's just some reason of government Z, for example, it is Ah San's enterprise.

As for why not purchase from your Xinghai Group, I think you can guess the reason. "

When Mu Yang heard the words, he secretly cursed: Damn it!

Sure enough, it is not a matter of price at all to sell aluminum alloy automotive panels at a low price to state-owned enterprises.

Assem went on to say: "Actually, even if we withdraw from the Huaguo market, your state-owned Yiqi Group will not consider purchasing from your company unless it cannot buy aluminum alloy automotive plates.

It's not as good as our partner company produces better products, and Yiqi Group in your country still purchases a lot from our partner company, and Xinghai Group also earns this profit. "

When Mu Yang heard this, he couldn't help admiring that Jiang was really old and spicy.

But that's not bad, just earn a little less.

As for the Southeast Asian market, Xinghai Group does not want to give up.

Only after Xinghai Group is restricted in Southeast Asia, can the partner enter the restricted market.

For example, the island country is also very hostile to Chinese companies, and completely prohibits Z government companies from purchasing products from Huawei companies.

Xinghai Group and Hydro Aluminum also talked about many details.

For example, in order to conceal the Xinghai Group's holding, an offshore company will be used to invest in the cooperative company, so as not to let the outside world know that the Xinghai Group is a partner, at least not let the outside world know that the Xinghai Group is the major shareholder.

Maybe the government of Z can find out that the major shareholder is a company of the Xinghai Group, but it's fine if the general public doesn't know.

On the surface, Xinghai Group's sale of 30 production lines to Hydro Aluminum for US$1.2 billion is just a superficial partnership.

The work of factory operation and sales is mainly handled by Hydro Aluminum Company, and Xinghai Group assists in technology.

The equipment is still maintained by engineers dispatched by Xinghai Group. Mu Yang will not disclose the core process and does not allow Hydro Aluminum Company personnel to disassemble the equipment.

At the same time, Xinghai Group arranges domestic personnel to enter the financial department, sales department and technical department of the cooperative company for supervision, and these personnel who go abroad will be rotated regularly.

Mu Yang suggested: "It will take about three months for me to manufacture the production line and debug it, and it will also take time for the equipment to be shipped by sea. Within these few months, you can sell the old equipment."

"We'll think about it."

Acem smiled back.

The old equipment must be sold, but it has to wait until the new equipment is installed and can be mass-produced normally, so as to reduce the risk of one's own side.

The business negotiation lasted for three days, and finally the two parties signed the contract.

The cooperation time starts from August 5th, and starts from January 1st, 2012. The profits generated by the aluminum alloy automotive plates sold by Hydro Aluminum will belong to the partner.

During the past few months, Xinghai Group continued to sell overseas, and the money it earned was also its own, and the two parties were still in competition.

However, after New Year’s Day in 2012, they will not be able to enter the new European and American markets. The cooperation with European and American car companies such as Porsche can still continue, but the profits generated will be distributed to Hydro Aluminum Company for 40%, and there is no need to ship products from Huaguo to the past. , but from European and American origins.

This cooperation is a win-win situation for both parties.

If the two sides do not cooperate, Xinghai Group's annual overseas profit of two to three billion dollars in the aluminum alloy automotive plate project will be very good.

After the cooperation, if we can sell 600,000 tons per year, the annual profit will rise to 700 million US dollars, and we will also get 400 million US dollars in equipment costs. After deducting the equipment production costs, we will actually earn nearly 100 million US dollars. No money was invested.

Hydro Aluminum will invest US$800 million. Since they have an old factory, the actual investment will be about US$650 million. It will take one and a half years to achieve profitability. It will take about three years to maintain the same level of profitability as they would have achieved without cooperation.

If the sales far exceed 600,000 tons, the payback speed will be faster, and you will earn more in the future.

No matter what, Xinghai Group earns a lot of money, which is the power of top technology.