Chapter 103 Sources of Funds
December 17, 2019.
After staying in Dongzhi for three days, Fang Xinwu drove to Heihe Town in the west with his two younger brothers.
When vehicles pass through Ruiniang Town, they must cross a highway bridge. However, the highway bridge has been occupied by construction vehicles at this time. They can only follow the guidance of the internal security and go two kilometers south and cross a temporary floating bridge.
Fang Xinwu saw outside the car window that a large construction site was under construction not far from the north side of Ruiniang Bridge.
He stopped the car and found that a dam was being built, and the river channel on the south side of the bridge, near a mountain area, was also under construction.
These two construction sites are the Ruiniang Town Hydropower Station and the energy storage reservoir project. For the Shan Plateau in Hongsawadi, their hydropower potential is huge.
The abundant hydropower in the area is mainly caused by the local topography and climate.
The Shan Plateau and the middle and lower reaches of the Irrawaddy River, the Irrawaddy River estuary delta plain , and the Salween River estuary delta plain form a clear terrain difference. Only with the terrain difference can there be the potential for hydropower generation.
Hongsavadi has a typical tropical monsoon climate with abundant rainfall every year.
The combination of the two creates huge hydropower potential in the Shan Plateau.
The hydropower station and energy storage reservoir in Ruiniang Town is one of the projects invested by Eastern Hydropower Company, a subsidiary of Qingye Group.
This hydropower station is not large in scale, with a designed installed capacity of 200 megawatts, while the installed capacity of the energy storage reservoir is 80 megawatts, which is a general medium-sized hydropower station.
Eastern Hydropower Company is not aiming too high, although the hydropower potential of Hongsawadi is enough to meet the needs of a power station of the same level as the Three Gorges Dam. The problem is that the investment is too large, the construction period is too long, and there are too many uncertainties.
After all, Aoba Electric Co., Ltd. currently needs to import 72% of its core components from China, and there is still a long way to go to localize the components.
If a large-scale hydropower station is built directly, the companies that can manufacture large turbines will definitely benefit. Aoba Electric Co., Ltd. will not be able to supply hydroelectric generators of this level in the short term.
Therefore, among the dozens of hydropower stations currently being invested and constructed, 13 are medium-sized hydropower stations and 27 are small hydropower stations.
Aoba Electric can take advantage of the construction of these hydropower stations to import spare parts for assembly while trying to develop domestically produced equipment.
As for power grid equipment, Hongsavadi does not have the foundation to develop a power supply network, so the principle of local power supply is adopted to reduce the construction cost of large-scale long-distance power grid laying.
For example, the Taunggyi area currently relies on several other old small hydropower stations, the Ruiniang Town Hydropower Station under construction, and the Taunggyi Thermal Power Plant that is being prepared, which are the main power supply sources here in the future.
Fang Xinwu observed that the hydropower station dam in Ruiniang Town was very tall and secretly guessed its investment cost. He was very curious about the capital chain of Qingye Group.
After all, the Qingye Group is now building large-scale projects all over Hongsavadi, and the scale of its investment does seem to be very large.
But in fact, many people are not clear about the internal operating model of Aoba Group.
If we view the behavior of Aoba Group as that of an ordinary business company, we would undoubtedly be seeing the whole picture through a tube.
The Ruiniang Town Hydropower Station and energy storage reservoir, which are currently under construction, have a total investment of only about US$11 million.
This cost is difficult to achieve even in China, a country known for its cost-effectiveness in infrastructure. The unit cost of a medium-sized hydropower station in China is approximately 6 to 7 million Chinese yuan per megawatt.
Aoba Group can achieve this cost because, on the one hand, its labor costs are extremely low and construction land is almost free; on the other hand, the engineering and building materials are all directly produced, and except for some parts of the power generation equipment, there are no other costs.
As for the capital chain problem, this is actually a misconception among many people.
Hongsavadi has no money, but the warlords, landlords and big families in Hongsavadi are not poor.
After taking over their assets, Qingye Group not only obtained a large amount of gold, silver and jewelry, but also a large amount of cash and secret deposits. The cash was not in Myanmar currency, which was like waste paper, but in US dollars, euros, Swiss francs, Chinese yuan and the like.
The cash converted into US dollars is about 32.3 billion, and the deposits in various secret accounts abroad are also 27.7 billion US dollars.
Ordinary people in Hongsavadi are indeed poor, but the warlords and big families are extremely rich.
After all, over the years, China has exported two to three million tons of rice, a large amount of precious wood, jade, and rubies every year. There is also the black money from the flour in the Golden Triangle. In recent years, there is also the toll from the oil and gas pipeline, and various mineral resources sold at low prices.
If these guys didn't have money, Li Qingye would suspect that the Hongsawadi branch had embezzled money.
In other words, just by squeezing out the oil from these scumbags, Aoba Group earned US$60 billion in cash flow, a large amount of gold, silver, jewelry and fixed assets.
If we don't spend these US dollars in cash now, will we keep them for the New Year?
Anyway, recently the Qingye Group and its various subsidiaries in the Hongsawadi branch have been investing heavily in construction and purchasing machines and production lines from abroad.
Compared with the blood-sucking investment projects in other regions, the actual cost of a 100 million yuan investment may be less than 10 million yuan.
The Aoba Group has an all-pervasive soldier and surveillance system, and the Spider Web managers have basically no intention of enriching themselves. After all, there is no need for that.
Therefore, the investment projects of Qingye Group, with the same investment amount, have an industrial scale several times larger than that of foreign countries.
This is vividly reflected in the Ruiniang Town Hydropower Station .
Fang Xinwu felt that there was a problem with Qingye Group's capital chain, but in fact there was no problem.
What's more, the tax revenue from Hongsawadi is actually part of the income of the Aoba Group.
This is the scary thing about giant companies. Their internal economic cycle is enough to maintain the smooth operation of the entire industrial system and continue to increase their own assets.
Now we import production lines, machines and products from outside only to accelerate the improvement of the internal industrial chain.
From the perspective of giant enterprises, as long as a region has truly become a giant enterprise, there will basically be no economic development problems in this region.
The giant enterprises referred to here are those that are at least close to their complete form.
Rather than the current trust-level giants or conglomerate-level giants, these giants are not perfect enough and have too many redundant vested interests within them.
Only when an enterprise is large enough, has a complete industrial chain, owns a fully controllable region, and has only a few vested interests within it, can it be qualified to call itself a giant enterprise.
Many people think that Samsung Group is a giant enterprise.
In fact, the Samsung Group is nothing more than a puppet of the Wall Street financial group. How can a company that does not even have the right to make decisions be qualified to be called a giant company?
The current Aoba Group and the Zhiren Company behind it can only be considered a quasi-giant enterprise.
Fang Xinwu did not stay in Ruiniang Town, but quickly went to Heihe Town.
Along the highway, apart from dense vegetation, there are construction vehicles passing by from time to time.
The development of Hongsawadi, supported by huge funds and a strong system, seemed to give Fang Xinwu a feeling that the world was being changed.
He didn't know whether this change was good or bad, but at least it was not much worse than the previous warlord separatism and people's miserable lives.
It's already at a low point, and any other direction except rotting in the trough is progress.
