Chapter 624 Planning
Peng Xucheng's plan marks the beginning of Dongfeng Corps' transformation from a group "supported by PMC business and assisted by other businesses" to a real solution provider, but in order to achieve this goal, Chen Chen still needs to plan a lot of things.
Abandon unnecessary cumbersome industries, optimize the current company's layout, absorb talents, and establish a sound organizational structure
Each task is a big challenge for Dongfeng Group.
It can even be said that the difficulty of these challenges is no less than fighting a real war.
So, after determining the general direction, Chen Chen immediately organized a meeting of the core layer of Dongfeng Group and the peripheral core partners, and the meeting had only one thing to discuss, that is, how to turn the pieces into a whole.
The process of the meeting was quite boring. After more than ten hours for three consecutive days, everyone was exhausted, but fortunately, after the high-intensity meeting, the "current situation" of Dongfeng Group was finally completely sorted out.
And the final result also surprised Chen Chen.
He thought he had paid enough attention to the company's business, and compared to those mercenaries who only knew how to fight, he was already a "business-oriented" leader.
But after really getting deeply involved in this field, he found that his understanding of this group was indeed far from what he expected.
First of all, what exceeded his expectations the most was that the Dongfeng Corps' ability to make money could not be said to be "strong", and it had even reached a terrifying level.
He always thought that this group was almost supported by the Corps' mission commissions, and most of the other business sectors were consuming or making a little money.
But in fact, the three mainstream businesses alone can bring the group more than US$600 million in revenue each year.
The first part is the import and export business of protective equipment in cooperation with Poly, including bulletproof vests, anti-terrorism and riot control equipment, police reconnaissance equipment, police and civilian vehicles, etc. The products mainly flow to Indonesia, Southeast Asia and Africa, with a total export value of over 100 million. Bulletproof vests alone sell millions of sets a year.
Of course, under the premise of small profits but quick turnover, the profit of bulletproof vests is not high, and it only makes more than 20 million a year.
What is really outrageous is the various anti-terrorism and anti-riot equipment and vehicles shipped to Indonesia.
Back then, it cost more than a million yuan to transport a mine-proof anti-ambush vehicle worth more than 100,000 yuan to Pubei, but now, a Mengshi shipped from the north to Indonesia can make more than twice the profit.
What is even more exaggerated is that due to the previous agreement, Dongfeng Group almost monopolized the police equipment market in Indonesia, and the huge profits are self-evident.
In addition to this part of foreign trade business, Dongfeng Group's mining business in Pubei is also quite profitable.
Huishai Gold Mine is one part, and the subsequent jade mines around Myitkyina are another part.
Most of the inheritance left by the mine owners who were liquidated in the Kachin War was divided up among peripheral partners including He Bangxiong, but some fell into the hands of Dongfeng Group.
Since 2012, the jade market in the north has suddenly heated up, and the speed at which this thing makes money has gradually begun to catch up with the printing press.
Without using all production capacity and being able to survive by hoarding goods, the two jade mines in Myitkyina can still make tens of millions of profits every year. If the subsequent jade prices continue to develop according to Chen Chen's vague memory of his previous life, this business alone can probably support Dongfeng Group and cover all operating costs.
As for the gold mine, the annual output is relatively stable, and the income is maintained at around 20 to 30 million.
Added together, the first two major businesses can already make Dongfeng Corps 400 million US dollars a year.
Where does the last 200 million come from?
Very simple, logistics.
Dongfeng Corps, which has controlled the entire Pubei logistics business in advance, has supreme pricing power. With its first-mover advantage, even if it does not rely on tricks and only uses commercial means, Dongfeng Group has established absolute hegemony on the Myitkyina-Tachileik line.
Not to mention, after gradually taking back the power of Wa State, Dongfeng Group has further strengthened its control over the Pagan Railway and Mandalay Highway, and the real Golden Triangle has been completely formed.
In this triangle with a perimeter of more than 1,600 kilometers on three sides, the total length of the logistics routes controlled by the Dongfeng Corps has reached an astonishing 40,000 kilometers. The dense freight network covers the entire Pubei area. Basically, every piece of goods passing through this area will be shared by the Dongfeng Corps.
What is "drawing a piece of land to be the king"?
The means of opening a mountain to collect money are too low-level. This is the real drawing a piece of land to be the king.
Even behind the scenes, some people began to call the logistics costs of Dongfeng Group "Dongfeng tax".
Of course, under Peng Xucheng's management, the pricing of logistics costs is generally reasonable, otherwise, those cargo owners would not just say a few words behind the back.
This business can bring at least 200 million in revenue each year, and the business volume is growing at a terrifying speed.
Since the year of its establishment, it has basically been growing at a rate of about 30% every year.
What is this concept?
If it doubles in three years and triples in four years, if the profit is 200 million this year, it is very likely to soar to 300 million next year.
Seeing this data, it was hard for Chen Chen not to sigh.
The logistics industry is really profitable, especially the monopoly of logistics, which is even more profitable
But after looking at the profitable projects, the subsequent projects that cost money gave Chen Chen a blow.
As he knew before, even under the premise of making such money, Dongfeng Group does not have much liquidity on its books, only a mere US$400 million.
You know, the Dongfeng Corps' previous mission commissions were huge every time.
After comprehensive calculation, even without considering the forward income, the commission paid on the spot has reached more than 1 billion US dollars.
Where does all that money go in the end?
The first big part is the purchase, maintenance, and depreciation of equipment, as well as personnel salaries, bonuses, and pensions, as well as shareholder dividends for core members.
Expenditure in this area is absolutely inevitable. It is the foundation of the existence of the entire Dongfeng Group.
Just imagine one day, if someone discovers that Dongfeng Corps’ tanks can’t run and people can’t hit, then who will use Dongfeng Group’s logistics?
This is a very simple reason. Chen Chen has no doubts about this expenditure.
As for the second big piece, although Chen Chen had doubts, he finally accepted it.
Because this amount of money is mainly spent on the development of the "fiefdom" of the Dongfeng Corps in northern Syria.
Large infrastructure, infrastructure, industrial facilities, equipment and equipment.
Just a set of oil well equipment, even if it adopts the financial leasing model, is sky-high.
On this part alone, Peng Xucheng spent 600 million US dollars in three months. This speed of burning money can be said to be a bit shocking anywhere.
And in the foreseeable future, this rate of money burning will continue, and it will not decrease for at least three to five years.
Considering the current earning power of the Dongfeng Corps, these two items alone are enough to bring down the entire group in a short period of time.
But this is not the end, because in addition to these two pieces, excluding Peshawar's one-time investment, there is still a third annual expenditure of more than 200 million U.S. dollars, which is the so-called "social entertainment" expenses.
Peng Xucheng's vast network of contacts is not for nothing, and people will not rush to cooperate with you just because they see the name of Dongfeng Corps. Most of the relationships are made with money.
Several key countries in Africa spend tens of millions each year, with Indonesia monopolizing 5,500 a year, and Southeast Asian countries dividing the remaining tens of millions.
This is all based on Peng Xucheng's restraint and eliminating most of the unnecessary connections.
If it is fully rolled out, this part of the expenditure may even be completely equal to the Dongfeng Corps' annual profit.
Generally speaking, Dongfeng Group has passed the early stage of barbaric growth, but it still faces considerable difficulties if it wants to continue to develop.
After the whole meeting, Chen Chen had one feeling:
If you don't become a homeowner, you don't know that firewood, rice, oil and salt are expensive.
A simple calculation shows that the Dongfeng Corps' financial gap in the following year will be at least more than 600 million US dollars. If it cannot be replenished in time, it will only think of ways to slow down the project progress and use time to exchange space.
This is something Chen Chen absolutely doesn't want to see.
So the follow-up planning became "how to obtain sufficient cash flow."
Foreign trade, projects, tasks, products.
There was no need to talk about boring discussions one after another, but fortunately, everyone finally came up with a relatively stable plan.
To put it bluntly, it is still the same as financing and borrowing.
The profits that were distributed to a group of people from He Bangxiong in the early stage were taken back by Chen Chen in the name of "dividends".
No matter how unethical this approach seems, the problem is, they are still enjoying it.
After all, everyone can see how much potential Dongfeng Group has at this stage.
And if you miss this best opportunity to board the ship, when it really becomes a giant in the future, you will never want to get a piece of the pie.
After everything was over, Chen Chen finally relaxed completely.
After the last day's meeting, he finally had time to sit down and chat with the old guys.
In the villa in Myitkyina, He Bangxiong and He Bupa were sitting across from Chen Chen. He Bangxiong was as warm and casual as ever, and He Bupa was as polite and courteous as ever. But compared to the past, he and Chen Chen were indeed more connected now. Somewhat close.
"To be honest, I couldn't even imagine such a day before."
He Bangxiong said with emotion:
"You said before, I was considered a high-ranking person."
"A brigade commander has thousands of people under his command. He can't seem to spend all the money he earns in a year. It's like going to someone else's casino to make millions for fun. I always feel that he can do that. It’s the end.”
"But now it looks like, what the hell is that?"
"Forget it, it's all a cliche, there's no need to say more."
"Brother Chen, there are no outsiders here today, let's just say it from the bottom of our hearts, can you give me an accurate answer?"
"What's the right word?"
Chen Chen asked doubtfully.
He Bangxiong paused for a moment, and then asked:
"What's your last name from now on in Pubei?"
Chen Chen couldn't help but feel a little funny. He Bangxiong just said "the past days were nothing", but in essence, he still had the warlord mentality in his mind.
After all, it is not easy to change his concept. I am afraid it is not that easy to let him understand what "shadow XX" is.
So, Chen Chen replied:
"No matter what Pu Bei's surname is, it cannot be surnamed Chen."
"Then I understand!"
He Bangxiong was smiling all over his face, while Chen Chen was inexplicably weird.
Good guy, I just said this, what do you understand? !
He frowned and looked at He Bangxiong. There was no need for him to ask questions, and the latter continued talking on his own.
"If the surname cannot be Chen, then there must be a surname."
"But, in this world, besides Chen, I don't know what other surname you can have."
"So what you actually mean is that it's not important what your last name is, but what's behind it is important."
"That's what Min Aung Hlaing does - bah, I don't mean that, I mean, it's probably similar to his methods, right?"
"Not even close."
Chen Chen immediately shook his head.
He Bangxiong's guess cannot be said to be wrong, but it is indeed not very correct.
Min Aung Hlaing and the puppet regime are actually products of the old era.
What the Dongfeng Corps wants to establish here is a real new order.
After thinking for a moment, Chen Chen found that there was really no way to explain this problem to He Bangxiong, so he could only say vaguely:
"We will not control Pubei, but we will retain the ability to control Pubei."
"Understood!"
He Bangxiong nodded again. This time, even He Bupa could not stand looking at him.
He looked at He Bangxiong mockingly and said:
"You understand it every day. What do you understand?"
"This kind of problem is not something we can consider. You can just follow it honestly."
"Compared with this, what I am most concerned about is the problems in Lao Myanmar."
"Sir Chen, if we do this, the Burmese side won't fight back, right?"
"Then they have to be able to pounce."
Chen Chen shook his head slightly and replied:
“The reckoning doesn’t end here, it starts here.”
"There is a sentence that is difficult to hear, but now I have to say it to you."
"If it weren't for me, you would also be the ones to be liquidated."
"I pulled you through this level."
"But next, stop looking for trouble and find a 'test' for yourself to pass. Do you understand?"
"rest assured!"
"Absolutely not!"
The two of them clapped their chests and promised.
The example of the Wa State is right in front of us, and judging from Chen Chen's intentions, Bao Xiaomei's matter can only be regarded as a small fight.
If you are still ignorant, you will really "not cherish the fruits of struggle."
They are not fools, and it is impossible for them to do such stupid things.
After giving the warning and getting their promise, Chen Chen relaxed a little.
Some words do not need to be said thoroughly, as long as the information is conveyed in place, it is enough.
Now, there is only one last thing left to deal with in the entire Pubei affairs.
Peng Deren.
As long as he is dealt with, everything in the future will be completely stable.