February 13, 9:30 am.
Henglong Group The top floor is large Meeting Room, and the oval Long Table is full of people.
The air was so thick that it could squeeze out water, and the first executive meeting of the new year (last time it was an enlarged meeting, this time it was limited to core executives) ushered in tensions earlier than expected.
Zhao Chen is sitting in the main seat, with a calm face, and occasionally flicks a signature pen on his fingertips.
The one on the left is Legal Director Zhang Qingxue, and the one on the right is Su Wantang.
Chen Xi spread out three devices in front of the side and rear - recording, shorthand, and real-time information monitoring.
Everything is as usual, but it's like a taut bowstring.
Lin Wanqing was sitting in Finance Director's seat. Different from the past, in addition to the regular documents, there was also a stack of Bank Letters and meeting minutes in front of her with colored labels, which were as thick as a brick.
She raised her chin slightly, looked straight ahead, and even had a very faint, almost calm arc at the corner of her mouth.
The first half of the meeting was spent in a somewhat boring report.
Li Mao, the general manager of the Capital Management Center, a middle-aged man in his early fifties with thinning hair, first arrived and cautiously began to report on the debt arrangements due in the first quarter.
"... In preliminary communication with several major cooperative banks, there is a certain pressure to renew loans, mainly due to the other party's understanding of our company's strategic shift..."
Li Mao's wording is careful and vague.
"It's not 'certain pressure', Mr. Li."
Lin Wanqing suddenly spoke, his voice clear and calm, interrupting Li Mao first, and instantly attracted everyone's attention.
"It is a substantial and systemic risk."
Meeting Room suddenly became quiet.
Li Mao opened his mouth, looked at Lin Wanqing with some confusion, and then glanced at Zhao Chen who was in charge.
Lin Wanqing didn't give him a chance. She stood up and picked up the first document from the pile of "bricks" in front of her with a steady and powerful movement.
"Since Mr. Li mentioned it, I will take this opportunity to report an urgent and serious situation to Chairman Zhao, Director Zhang and all my colleagues."
She didn't even use the words "ask for instructions" or "request", but instead used "report" first.
"Based on thirty-seven rounds of formal and informal communications between the Finance Department and Capital Center with nineteen major cooperative financial institutions in the past two weeks,"
She spoke at a steady pace, but her words were like nails, "The loan renewal environment our company is facing has deteriorated sharply to the red alert level."
"Wow--" A suppressed commotion sounded from below.
Lin Wanqing seemed to have heard nothing, picked up a summary table, and read out the cold data:
"This month and next month, the total amount of various short-term debts that need to be renewed when due is 1.873 billion RMB. As of now, there are zero companies that have made it clear that they can renew the loans according to the original conditions.
Fifteen companies requested an increase in interest rates or additional mortgages. Three companies made it clear that they needed to conduct comprehensive due diligence again and suspend approval.
There is another company that has hinted that it will no longer cooperate after the expiration date."
She put down the summary sheet, picked up a few faxes or email printouts with bank headers, and showed them to everyone.
"This is the preliminary feedback from the Bank A Credit Review Department,"
She read, "'In view of the recent major adjustments to Henglong Group's business strategy, obvious intention to shrink, stagnant new investment, and doubts about future revenue growth and cash flow generation capabilities,
Our bank is concerned about your company's Continuous Operation ability, and there is significant uncertainty in the renewal of the original credit.'"
"This is a private email from the president of Bank B branch,"
She changed a copy and said, "'Mr. Lin, we have been friends for many years, I am the first to say this. The head office keeps a close eye on the risk control, and your current approach has already given a yellow light in our internal system.
You can negotiate for loan renewal, but the interest rate cannot remain the same and the conditions will be more stringent. You must be mentally prepared.'"
She showed five different forms of "evidence" in succession. Every time she read a paragraph, the temperature in Meeting Room seemed to drop by one degree.
These doubts from external financial institutions are more lethal than any internal debate.
Finally, she put down all the papers, put her hands on the edge of the table, leaned forward slightly, looked at Zhao Chen, and her voice suddenly rose, with a suppressed resentment and questioning:
"Chairman Zhao! This is the first consequence of our strict implementation of Board of Directors's strategy of 'shrinking the balance sheet and reducing leverage'!
Banks are not fools. When they see that we have stopped acquiring land, sold assets, and cut down projects, their first reaction is not "This company is healthier."
It's, 'Is there a big problem with this company? Is it out of money? Is it going to die?!'"
She slammed the table, and the sound was particularly harsh in the silence Meeting Room.
"Now, they have doubts about our Continuous Operation's ability!"
She almost gritted her teeth and spat out the last two words,
"What does this mean? This means the beginning of a credit collapse! This means that all subsequent financing channels may be closed!
This means that Suppliers will run, Cooperator will wait and see, and the stock price will plummet!"
Her chest rose and fell slightly, obviously emotional, but her eyes were extremely sharp and clear, firmly locked on Zhao Chen.
"I, Lin Wanqing, have been managing money at Henglong for thirteen years! I have dealt with these banks for thirteen years! I can't say that I have outstanding achievements, but at least, in the past, when the company's rapid development required blood transfusions, I never caused any problems to Capital Chain!