Rekindle 2003

Chapter 1007: No Money, But Life

In Chezi Town, Jiazhou, Western Sichuan, the construction site is bustling under the sunshine.

The roar of machines and the shouts of workers interweave together to form a vibrant construction symphony.

On the construction site, huge tower cranes soar into the sky, and construction vehicles shuttle back and forth, carrying sand, gravel and building materials.

The workers, wearing safety helmets and uniform work clothes, are busy at their respective posts, with expressions of concentration and determination on their faces.

Eye-catching red slogans are hung around the construction site, each of which is full of attention and expectations for this project.

"Quality comes first in a century-long project!"

"Unite and cooperate to create brilliance together!"

"Scientific development, green construction!"

"The most important thing for a country is science and technology!"

At the entrance to the construction site, a huge display board details the background and significance of the Xinguang Silicon Industry project:
"Xinguang Silicon Industry, a national strategic emerging industry demonstration project, shoulders the important task of promoting the independent research and development and industrialization of semiconductor materials in my country. This project was approved by the State Planning Commission in 2001 and aims to build a modern production line with an annual output of tons of polysilicon, filling the gap in the field of high-end electronic-grade polysilicon materials in China."

Next to the display board, an office building that has already taken shape stands tall. The four golden characters "Xinguang Silicon Industry" hung on it sparkle in the sun, symbolizing the bright prospects and unlimited potential of this project.

The entire construction site is full of vigor and vitality, and every corner can feel the importance and expectations for this major national project.

This is not only the No. 1 project in Xishu Province, but also the country’s largest polysilicon production capacity construction project at the beginning of the century - Xinguang Silicon Industry, which carries the hope and dream for the development of the country’s semiconductor industry.

In contrast to the enthusiasm at the construction site, the conference room in the office building that had been built in the factory was filled with smoke.

Zhang Huiguo, the former director of Emei Semiconductor Factory, sat in the main seat on the right, looking at the silent shareholders across the conference table, feeling extremely sad.

This meeting is a coordination meeting.

What to coordinate?
Coordinate funds.

The model of Xinguang Silicon Industry is that Eban Factory provides technology, and four listed companies, including Sichuan Energy Investment, a local state-owned enterprise in Western Sichuan, Jiazhou Electric Power, a central state-owned enterprise, Minjiang Hydropower, and strategic investor Jizhou Tianwei Baobian, make market-based investments.

In fact, before the meeting, Zhang Huiguo had already contacted various shareholders in advance, and all parties had clearly expressed their intention not to continue investing.

But the meeting still has to be held, after all, a voting opinion needs to be reached.

Jiazhou also wants to make a final effort. For Jiazhou, which only has a big Buddha, this is a once-in-a-lifetime development opportunity.

So, this is a coordination meeting, and Kashuu Nanpoman, Nanba Usagi, and Nanpo Buddha are personally present.

Although he knew what the result would be, Zhang Huiguo still stood up, took out a document and began to read.

"According to the instructions of the Central Committee, the Xinguang Silicon Industry Company you lead needs to expand its polysilicon production capacity to 5 tons within five years. At the same time, it must unswervingly overcome difficulties in the monocrystalline silicon preparation process..."

To be honest, Zhang Huiguo himself felt that this order was pure nonsense and full of big-step thinking from a certain period of the last century.

10 tons?

5? !

Their national pilot demonstration project is only 1000 tons, and is planned to be completed in 7 years.

Now 5 tons in 10 years?

The big joke of slipping the world.

When he received the document, his eyes almost popped out when he saw the numbers on it. He repeatedly confirmed the zeros on it and still didn't give up and called the department to confirm.

The last message we received was that this was a death order that had to be completed.

The original words of the department leader were, "I have issued a military order. If you can't get 5 tons within five years, you, Zhang Huiguo, and I will meet at the cemetery."

That’s what they said, but when it comes to money, the department leaders are silent.

The department leader said he didn't know either, and only said that this was an order directly issued by the central government, and emphasized the word "order".

He didn't want to have this meeting at all.

After the document was read, the atmosphere in the conference room became solemn and tense.

Zhang Huiguo glanced at every shareholder representative present, waiting for their responses.

After a moment's silence, the representative of the Jiazhou local government, Nanbofu Executive Vice President Jiang Shiyang, stood up with an earnest expression on his face.

"Everyone, Xinguang Silicon Industry is not only the No. 1 project in Xishu Province, but also a key project of the country."

Jiang Shiyang's voice was a little hoarse, and he said sincerely, "As a local government, we are well aware of the importance of this project to the country's semiconductor industry. I implore all representatives to consider the overall situation and support this project."

As soon as Jiang Shiyang finished speaking, Gu Yanfa, the representative of Sichuan Energy Investment, cleared his throat. His expression was serious and his tone was firm.

"Director, we understand your feelings. As a local state-owned enterprise in West Sichuan, Sichuan Energy Investment will naturally obey the organization's arrangements unconditionally.

But to be honest, it is really beyond our capabilities to invest in expanding the scale to 10 tons.

I suggest that Jiazhou apply to Sichuan Province, otherwise our Sichuan Investment Group can only provide 3 million yuan at best.”

Wei Zonghan, a representative of Jiazhou Power, continued, "Manager Jiang, we at Jiazhou Power are also facing a similar dilemma.

The State Grid Corporation of China has not given any specific instructions for this project. From a market-oriented perspective, Jiazhou Power does not have the ability to make such a large-scale investment.”

Although Jiazhou Electric Power is called Jiazhou, it has nothing to do with Jiazhou. It is affiliated to State Power Corporation.

Gu Guobin, a representative of Minjiang Hydropower, expressed a similar view. "The situation of our Minjiang Hydropower is similar. Although we are willing to support the country's strategic projects, without the clear policy and financial support of the State Power Corporation, we really cannot bear such investment pressure.

Executive, Lao Zhang, we are sorry, we can’t help you.”

Jiang Shiyang was so angry about the company's attitude that veins popped out of his neck and he sat there with a sullen face.

It’s so disrespectful!

Especially the latter two.

But unfortunately, these three are all state-owned enterprises, and even two of the power companies are central enterprises. The leadership team level of others is even higher than that of prefecture-level cities like theirs.

If I say I won’t pay attention to you, then I won’t pay attention to you.

Zhang Huiguo felt deeply moved when he heard this. The company's equity structure was purely a polyglot politics, which meant that all shareholders would not pay a penny more without receiving instructions from the competent authorities.

Because for them, the initial investment was just an obligation, investing on behalf of the country, and they do not participate in the actual management. How your company develops has nothing to do with them.

"After all, you are a state-owned enterprise, a listed company! If you don't contribute, how can this expansion continue?"

Zhang Huiguo's sorrowful sigh made Lu Sishan, the shareholder representative of Tianwei Baobian, sneer.
“Lao Zhang, so far, the 1000-ton project has cost more than 3.98 million yuan, and it will cost million yuan to complete the project and put it into production.

We have paid this money in full according to our respective shareholding ratios, and you are clear about this account.

Now let me ask you, how much does 10 tons of polysilicon cost? At least 400 billion!

Where can we go to get 400 billion for you? Just tell us! We will go there immediately without saying a word.

This equity ratio is just a strategic investment for us at Tianwei Baobian, and we are a state-owned enterprise in Jizhou, not Xishu!
If you can get other investments from outside, let me make it clear to you now that we, Tianwei Baobian, will unconditionally accept the dilution of our equity, and you can even kick us out!

But if you ask us for money now, we at Tianwei Baobian won’t give you a penny anyway.”

Zhang Huiguo remained silent. He knew that although what Lu Sishan said was straightforward, it was the truth.

He looked around the conference room and saw helplessness and rejection on everyone's face.

If this meeting continues, there will actually be no result.

The key issue is that these four listed state-owned enterprises did not receive instructions from the competent authorities, so it is meaningless to talk so much about it now.

Moreover, they cannot afford an investment of 400 billion, and are even less willing to do so.

Because this kind of project funds must be provided to them by the group company through internal loan channels, it is impossible to increase capital and give them to them free of charge.

Internal loans will have interest to a certain extent.

Even if one company contributes 100 billion, the corresponding annual interest will be several hundred million.

This is reflected in the actual financial expenses that the investing enterprise needs to pay in the current financial statements. In theory, the principal and interest should be recovered through the profits after the project is completed and put into production.

However, there are risks in whether the project will succeed or not.

Especially the current pilot demonstration project.

The pioneer is the first one to try something new.

Apart from this, there is no other domestic company, and Luoyang Zhongsi is still waiting and watching.

Such a large project is suddenly launched, and for the four state-owned enterprises, it is a project that has nothing to do with their main business. Which lunatic would be willing to participate?

The root of the problem lies in the composition of the equity structure.

The original idea was that the four investors would simply contribute capital, and the project would be complete once the funds were fully raised.

Everyone is well aware of this, so just pay it out, since it’s not their own money anyway.

Now it is really difficult to ask others to continue paying money.

Zhang Huiguo knew that someone would definitely pay for this sudden expansion, but he didn't know who it would be.

But he also understood the ideas of Jiazhou local people.

After all, this is a big project.

Especially since the expansion from 1000 tons to 10 tons is a 100-fold increase, the local government certainly hopes that this project will be located in Jiazhou.

Sichuan Investment Group is currently the largest state-owned enterprise platform company in western Sichuan.

However, Sichuan Investment has no access to this money at all, as Western Sichuan does not have the financial resources to support it.

Therefore, it is very likely that other provinces or even central enterprises will make direct investments.

So, it is unknown where this project will end up at that time.

Maybe Jiazhou still has 1000 tons, and the remaining 9.9 tons will go out and look for other places.

However, it was also true that the four shareholders could not come up with the money, and Zhang Huiguo really felt that the business could not continue.

He turned his gaze to the local representatives sitting at the head of the conference table.

……

(End of this chapter)