CHAPTER 531: CHAPTER 302: ONE SET OF RULES TO YOUR FACE, ANOTHER BEHIND YOUR BACK

Chen Cheng’s straightforward words, however, were seen by Guo Feng as the innate profit-seeking nature of a businessman.

He looked at the young man before him with admiration, "Mr. Jin’s judgment is as good as ever; choosing you was the right decision."

Guo Feng personally poured a cup of tea for Chen Cheng, who accepted it, "Director Guo is overpraising me, Mr. Jin has been too kind, and I hardly deserve such honor."

Guo Feng waved his hand and also took a seat on the sofa, "Xiao Chen, there’s no need for such modesty. I know very well what kind of person Lao Jin is. Since he has sent you, it means you must have something special. Young man, work hard, I have high hopes for you."

"Thank you for the encouragement, Director Guo, I will certainly do my best."

After the pleasantries, Guo Feng’s smile faded, and he took on a serious expression, "Xiao Chen, let’s cut to the chase. You know about the Deng Xiong situation, the external public opinion pressure is quite significant now, and it’s being given a lot of attention at both the provincial and city levels. Frankly speaking, I’m under a lot of pressure at this critical moment."

Chen Cheng nodded, showing understanding.

"I understand the difficulties you are facing, Director Guo. Deng Xiong’s situation has indeed brought a lot of uncertainty, and it has also affected the image of the city’s investment bonds. However, I believe that crisis is an opportunity."

He paused for a moment, observing Guo Feng’s reaction.

Seeing he wasn’t offended, he continued:

"This collaboration is an excellent opportunity. It can provide Banna with substantial financial support, and it can also send a strong message to the market: Banna Travel Investment still has a strong financing capacity and development prospects. We have the confidence and ability to overcome the current difficulties."

"Utmost caution." Guo Feng also picked up his thermos cup and took a sip, "If we say, instead of bond financing..."

He looked intently at Chen Cheng, "Xiao Chen, how much funding can you secure for us at Banna Travel Investment?"

With that question, Chen Cheng understood Guo Feng’s intention.

To be honest, this amount of money was insignificant to Chen Cheng.

But Guo Feng wasn’t Cao Yue; even if Chen Cheng gave it, he might not get much in return.

Chen Cheng smiled slightly, not directly answering but also not avoiding the question. Instead, he continued along Guo Feng’s line of thought:

"Director Guo, you are right, caution is necessary. Bond financing is indeed a common method used by city investment platforms, but at this juncture, it certainly carries some risk."

"So, I have preliminarily considered two possibilities."

Guo Feng gestured with his hand for Chen Cheng to continue.

"Option one, we still follow the debt financing route, the amount can be adjusted according to the needs of Banna Travel Investment. Of course, we will also give the most reasonable advice based on market conditions and risk assessment."

He pointed to Tong Jialu beside him, "It just so happens that Manager Tong from Jing Securities is here with me, so this process will be very quick."

Tong Jialu hurriedly handed over her business card, "Director Guo."

After taking a glance Guo Feng asked, "What about option two?"

"Equity investment."

Chen Cheng gave the answer, "Banna Travel Investment can bring out the project in Mengla County for this cooperation and split the equity according to the contribution ratio."

"Of course, it requires a detailed assessment of the project, so the funding period will be longer."

Guo Feng tapped his fingers gently on the table, deep in thought.

Debt financing was fast and convenient, but carried higher risk during this sensitive period.

Equity investment, although having a longer cycle, was more secure and could better avoid risk.

Moreover, if the project performed well, the future returns could be much more substantial.

"Equity investment... How many capable companies can you bring to me?" Guo Feng inquired further.

Chen Cheng didn’t answer directly but instead countered, "Director Guo, how much do you think this project is worth?"

Guo Feng laughed, the youngster really was a skilled negotiator. He didn’t quote a price directly, instead bouncing the question back to him.

After pondering for a moment, he said, "The initial investment for the Mengla project is 730 million. I project that the profits will increase year by year."

Chen Cheng unhurriedly asked, "Director Guo, how much is this ’year by year’?"

He smiled, "As you know, I’m just here to make connections. I need to have exact figures to discuss with the investors."

Understanding, Guo Feng got up and fetched a notebook from his desk, "This is our revenue forecast estimated by a third party and an accounting firm, have a look."

Chen Cheng took the notebook, "Mengla Tourism Integrated Development Project Revenue Forecast Report" came into view.

The report was detailed, with complete data and charts, evidently well prepared.

The front part was a set of generic descriptions and market analyses, but what Chen Cheng was truly interested in was the profit forecast section.

"The project will be fully operational in 2028, with phase two operating in 2030."

"The annual reception of tourists is predicted to increase year by year, with an average growth rate of 15%."

"The average spending per visitor is expected to rise year by year, with an average increase rate of 5%."

"The hotel occupancy rate is steady at over 60%."

Chen Cheng scrolled the mouse, and more detailed charts appeared before his eyes.

Based on what the report stated, after the Mengla project was completed in 2028, the expected number of tourists received would be 800,000, with an average spending of 1,200 yuan per visitor, making the total revenue 960 million yuan.

According to this calculation, it seemed that after 4 years of construction, the costs would be recovered in the first year, and all subsequent years would be pure profit.

For such a business, Chen Cheng naturally had a big question in his mind.

However, he didn’t make it known and instead looked up to Guo Feng, "Director Guo, this report is very detailed and the data quite persuasive. Still, I’m more concerned about what the predictions are based on. Has a sensitivity analysis been conducted?"

Guo Feng was prepared. He explained, "The predictions in this report are based on our in-depth research and analysis of market conditions, and are also referenced against operating data from similar projects."