Reborn with Consumption System-Chapter 581 - 259: Finalizing the Contract and New Inspiration

On the 2nd and 3rd, over two consecutive days, Han Lie completed the preparatory work for the Ming Capital project with extreme efficiency. Tang Xintian made a significant contribution; goodness, she worked 38 out of 48 hours. With her help, along with Lü Shuli and the assistant, Han Lie’s workload was greatly reduced.

All contracts with trusts, securities firms, and banks were signed, and Old Pan used his Pan’s Asset Management to provide a financial backstop.

On the 4th, Han Lie went to Ming Gu Real Estate for the second time to sign the formal project proposal, then immediately sent the relevant materials to Old Xing.

When Han Lie saw Old Xing at the SAIC headquarters, Old Xing thumped his chest and promised, "I’ve handled all the necessary groundwork and ensured transparency. Rest assured, Mr. Han, we’ll have the meeting this afternoon and sign the contract on Monday. The money will definitely arrive in 5 to 8 business days!"

The most critical aspect of projects like this is the funding party. If the money isn’t in place, everything else is meaningless.

Old Xing’s attitude was very positive. Naturally, while Han Lie was with him, he showered Old Xing with praise. After leaving, Han Lie went straight to Old Dou’s office.

"So, what’s the situation? Is Old Xing confident?"

"Don’t worry!" Old Dou was all smiles, equally optimistic. "It’s a great opportunity; who wouldn’t be happy to make some money? Besides, 2.5 billion isn’t that much..."

Such arrogance! But SAIC indeed had the clout to be boastful; no wonder both of them were so confident.

Han Lie was actually worried about something else, something he couldn’t discuss directly with Old Xing but had no reservations mentioning to Old Dou. "Making money isn’t necessarily good for everyone, is it? I’m worried someone might compete with Old Xing for the chairmanship of the financial holding company and try to sabotage my project..."

Old Dou started, his eyes widening. "Damn! Who told you that?"

Han Lie shrugged. "I guessed."

Old Dou was impressed. "You’re a monster... Some people are indeed unhappy, but don’t worry. Old Xing can handle a mere 2.5 billion on his own. I wouldn’t let your project be delayed just so I can watch the drama unfold."

"That’s good to hear." Han Lie relaxed, but then another thought struck him. "Hey, how much money do you think Old Xing could scrape together for similar projects in the first half of this year?"

"I’m not sure about the exact amount, but 10 billion should be no problem, right?" Dou Mingde estimated, then chuckled. "The group has been doing very well these past two years. As of the end of last year, our debt was just over 200 billion yuan, and our cash flow is very strong. If you have any other projects needing funds, just go to Old Xing."

Han Lie was secretly astonished. Large state-owned enterprises these days are practically money faucets... Despite the large debt figures, it’s not a big deal; they’re actually very healthy.

During the future pandemic, SAIC’s debt will exceed 600 billion yuan, forcing them to issue corporate bonds. That will be the truly difficult period. Right now, SAIC is even more formidable than I imagined.

"Alright, I understand. Keep an eye on things for me; I need to get back to work."

"Go on, then."

Dou Mingde walked Han Lie to the door, then suddenly winked. "By the way, Old Xing is planning a celebration after the contract is officially signed on Monday. Any preferences on where to go?"

Don’t try that stunt with me; you guys wouldn’t understand my principles! Han Lie, uninterested, waved his hand. "Anywhere is fine. The simpler, the better."

I just sent away some riff-raff on the 2nd, spent time with Sister Ting on the 3rd, and today I have to appease the practically desperate Wang Tianqing. Tomorrow will probably be busy too, and I still need to make time every day to reply to important people’s messages... How boring. It’s really lost its appeal...

In his previous life, Han Lie couldn’t have dreamed he’d ever grow tired of goddess-level beauties. Men, it seems, really should focus on their careers.

「The 4th was also a Friday, the last trading day after the New Year holiday.」

After a busy day, Han Lie returned and briefly glanced at the stock market. The Shanghai Composite Index had regained 20 points, while the Shenzhen Component Index had fallen slightly by 32 points. Over 30 stocks hit their daily limit, but only a fifth of all stocks in both markets closed higher. A typical mid-downturn continuation. Han Lie glanced at it and dismissed it, having no intention of jumping into the market.

On Saturday and Sunday, most companies were closed, but the Ming Capital project team was still working at full capacity. During this time, something came up for Brother Ham: Xi Luting had finally finished the outline for her new book and sent it to him for feedback. Brother Ham replied, "I’m in the middle of exams. Wait a couple of days."

On Monday, SAIC, through its subsidiaries, signed the project funding agreement. With that, the Ming Capital project was, in theory, officially concluded. It was "in theory" because the asset valuation and auditing were not yet complete.

Based on available data, Ming Gu Real Estate’s total net assets were approximately 5 billion yuan, which wasn’t enough to cover the risks associated with the Ming Capital project. Why couldn’t 5 billion in assets cover a 2.5 billion loan? This highlighted the difference between the theoretical value of assets and their actual sale value.

Therefore, even if Ming Gu Real Estate mortgaged all its existing assets, it would be impossible to secure a 2.5 billion yuan loan from any bank. They couldn’t even get 1 billion. This was because Ming Gu Real Estate’s debt-to-asset ratio had long surpassed the cautionary threshold.

The Ming Capital project could be established because it wasn’t secured by existing assets. Instead, it was based on the "future properties" yet to be constructed, employing a novel and astute approach.

The procedure was very strict. SAIC would transfer 2.5 billion yuan to a special account opened at SPD Bank. Ming Gu Real Estate could only withdraw funds as stipulated in the contract, and each withdrawal required the consent of the project’s lead investor.

Of this amount, 780 million yuan would be used to repay previous bank loans, and 985 million yuan to cover land acquisition costs. From the remaining 735 million yuan, a portion would be allocated for assessment, accounting, and legal fees, leaving slightly less than 700 million yuan to commence construction.