My 1999

Hongyan Magic City Headquarters at No. 9 Bund.

In the video conference room, several 21-inch LCD screens are hung high.

Lu Jue, CEO of Taihua Group, Sha Zhigang, senior vice president of Taihua Group, who is in charge of Fuhua Residential Real Estate; Xia Changsheng, COO of Hongyan, Zheng Yunfei of the Strategic Consulting Department, and Hu Wentai of the Global Investment Research Department of Hanhua Group.

They are basically senior executives of Xu's company and members of Xu Liang's consulting team.

"I have sent you all the information. What do you think?"

"Mr. Xu, I don't recommend taking over the Hangzhou 'Olympic Sports Expo City' project for three main reasons.

First, the current market environment in China does not have the foundation for operating large-scale sports facilities."

Large-scale sports venues need a developed sports industry to support them. China does not have it now, not even before Xu Liang was reborn.

It's even worse.

Sea cucumbers and abalone can't save the cowards of the Chinese football team.

"Second, Taihua Group has no experience and ability to operate large sports venues.

Third, the investment is too large.

Currently, Taihua's net debt has exceeded 30 billion US dollars, and the debt ratio has exceeded 60%, so we are not suitable for investing in projects that cannot make profits for a long time."

Taihua's current operating model is very simple.

In the name of the company, issue a corporate bond under the guarantee of Hongyan.

Hongyan's credit rating is 3A, and only if it provides a guarantee can it ensure that Taihua's bonds are not junk bonds.

Only then can it raise funds from the capital market at a lower interest rate.

These bonds are sold throughout Asia and some European markets through the platform of Hanhua Securities.

After raising the money, Taihua used the money to acquire land in Huaxia.

After acquiring the land, let the cooperative construction company advance funds for development.

Taihua used this land to borrow from Standard Chartered Bank, Bank of China, Huaxia Bank and other banks where Hongyan and Hanhua have shares.

With a real collateral such as land, the interest rate given by the bank will not be too high, and the mortgage rate can also reach 70%.

Taihua uses the money to acquire land again.

Repeat the above process.

As for the money of the construction company, it is basically paid with the revenue of Taihua Commercial Real Estate. If it is not enough, it will be paid with loans.

If the loan is not enough to continue to acquire land, then another corporate bond will be issued.

This is the operating logic of Taihua Commercial Real Estate.

If it is Fuhua, it will be different.

After the cooperative construction company advances the funds to complete the pile foundation project, it will directly sell the floor plan and easily make the money back.

As for other businesses under Taihua, you can make money and spend it yourself, and just have reasonable debt.

Therefore, Lu Jue has no interest in the "Olympic Sports Expo City".

Failure to collect money in time after completion means that Taihua's cash flow will decline. If it wants to maintain expansion, it can only continue to borrow money, which undoubtedly increases Taihua's debt burden.

Xu Liang cannot deny it.

"Old Lu has finished talking, what about you?"

"Mr. Xu, do you plan to invest in the "Olympic Sports Expo City" project yourself or give it to Taihua?" Zheng Yunfei asked.

As the director of Hongyan's strategic investment department, he knows very well that Xu Liang has been increasing Hongyan's debt during this period to restore the balance of Hongyan's financial structure.

"Is there any difference?"

"If you plan to invest in 'Hongyan' as the main body, then I agree.

Hangzhou obviously knows that sports projects are not profitable, so they have given you a lenient position and can expand the project land of 'Olympic Sports Expo City'.

With the current development speed and trend of Hangzhou, real estate is definitely profitable.

As for sports real estate, although it is not profitable now, it may not be the case in 20 or 30 years.

After economic development, sports culture will also develop accordingly. This is a proven law in the West and Japan and South Korea."

Zheng Yunfei's idea is very good, but the facts 20 years later have proved that the laws of the West and Japan and South Korea are not applicable in China.

"If Taihua is the main body of investment, then I oppose it.

This will reduce Taihua's cash flow and slow down its development speed."

Xu Liang did not express his opinion.

"Who else has an opinion?"

"Mr. Xu, why are we so obsessed with 'Olympic Sports Expo City'?

There are large tracts of land around that need to be developed. Isn't it enough to just exchange a piece of 200 hectares of land for residential and commercial real estate development?" Sha Zhigang said directly.

"You have a good idea, but is it worth exchanging a BOE 7th generation line with an investment of 30 billion Chinese Yuan for something that can be done with money?" Xu Liang said.

The difference between developing a large piece of land and developing ten pieces of land is that the latter takes more time and administrative costs.

It is not worth paying too much.

Only projects like Shuanghui and Xugong that cannot be obtained under ordinary conditions are worth exchanging for BOE's production line.

Hu Wentai, who has not spoken, said.

"Mr. Xu, if you are hesitant about the 'Olympic Sports Expo City' project, you can consider Zhejiang Agricultural Materials Group."

"Zhejiang Agricultural Materials Group?"

"Zhejiang Agricultural Materials Group was established in 1952 as the Zhejiang Supply and Marketing Cooperative, and was changed to a joint-stock cooperative in 1999.

It currently owns 14 holding subsidiaries, including the pesticide production company 'Jinniu Shares';

a subsidiary in the petrochemical field 'Tomorrow Holdings Group';

an automobile retail company 'Jinchang Automobile'; an agricultural materials distribution company 'Huidoli'; and a plastics industry and trade company 'Xinguang Plastics'.

The main business covers agricultural materials and automobiles, and it also operates urban-rural integrated trade and comprehensive services for medicines.

In the two quarters of 2006, sales exceeded 8 billion Chinese dollars and net profit was 372 million Chinese dollars.

It is one of the top 100 enterprises in Zhejiang Province.

Its 'Huiduoli' agricultural supplies chain store is the fourth largest agricultural supplies chain company in China, second only to China Agricultural Materials, Denong and Sinochem, with more than 2,300 stores in the five provinces of Zhejiang, Jiangsu, Anhui, Jiangxi and Fujian. Agricultural supplies distribution store.

It is the largest agricultural supplies retailer in Zhejiang Province.

In the two quarters of 2006, sales exceeded 4.5 billion Chinese dollars, main business profits were 574 million Chinese dollars, and total profits were 142 million Chinese dollars.

If it can be integrated with Denong, the latter's agricultural supply chain stores will exceed 5,000 without large-scale mergers and acquisitions, and including named stores, the number will exceed 8,000.

It surpassed China Agricultural Materials and became the largest agricultural materials retail enterprise in the country.

Although Jinniu is far inferior to Red Sun, it is also one of the largest pesticide companies in Zhejiang Province. It has a production capacity of 15,000 tons of pesticides including pyrethroids, 1,200 tons of imidacloprid, 7,000 tons of chlorpyrifos, and 1,800 tons of fungicides such as chlorpyrifos.

In the two quarters of 2006, sales exceeded 1.77 billion Chinese dollars, main business profits exceeded 447 million Chinese dollars, and total profits were 210 million Chinese dollars.

Although Jinniu's R\u0026D strength in the field of pesticides is not as good as that of Red Sun, it is also a mainstream pesticide company in China that develops 'pyridine'.

If Jinniu can be acquired and Denong's pesticide resources are integrated, it will soon form the largest domestic pesticide giant with annual revenue exceeding 10 billion Chinese dollars. "

Hearing this, Xu Liang was moved.

The profits of agricultural supply chain stores are actually very low, even lower than supermarkets, with an average of about 10%.

But the profit from pesticides is much higher, almost 20 to 30%.

If Denong's pesticide sales exceed 10 billion, the main business profit will at least exceed 2 billion Chinese dollars.

In addition, the revenue of chemical fertilizers also exceeds 10 billion, and the profits are not low.

Denon has really grown up.

Thinking of this, Xu Liangliang made a decision in his mind.

"Does anyone have any other opinions?"

Everyone was not a fool. They could all see that the big boss was already moved, so they didn't waste any words.

"Since I don't have any objection, I'll drive here first."

After saying 'goodbye', everyone logged off.

"Sister Li, write down Lao Hu's idea just now and send it to Liu Qiangxi, and ask him to negotiate with Zhejiang Province. After the negotiation, BOE's last seventh-generation line will be kept in Hangzhou."

Li Jinling nodded.

"Mr. Xu, Guangling sent us an invitation letter and specifically stated that they are willing to exchange Asia Star buses for BOE's seventh-generation line."

"Yaxing Bus? Guangling has taken it back?"

Yaxing Bus is a mainstream bus manufacturer in China. Around 2000, Yaxing has been the domestic bus sales leader for seven consecutive years. The long-distance buses on the market are Yaxing and Huanghai.

When a company makes money, more demons and monsters will surround it.

Among them, a relative of a big boss opened an auto parts factory, took orders from Yaxing, and then subcontracted them to other domestic parts manufacturers.

One main theme: I don’t produce parts, I’m just a parts transporter.

Made a lot of money without doing anything.

But happy.

But the company's production costs have increased, and in order to make money, the price of the vehicle must also rise.

In the past, when there were not many passenger car manufacturers, that was all. There were not many choices, so you had to sell even if you didn’t want to buy.

But my lord, times have changed.

Not to mention the foreign manufacturers that are swarming into the country, competitors such as ZTO, Yutong, and King Long have also emerged in the country.

As expected, Yaxing's sales plummeted.

In 2003, it suffered a huge loss of 148 million yuan, and sales dropped from nearly 10,000 vehicles at its peak to more than 4,600 vehicles.

As soon as Guangling saw that the company was about to lose its reputation, they naturally decided not to work.

In order to change this situation, restructuring has become the only option.

Gu Chujun's Green Cole came into Guangling's sight, and the two sides hit it off immediately.

At the end of 2003, Lao Gu acquired 60.67% of Asia Star Bus shares at a high price of 400 million yuan and became the controlling shareholder.

In the past year, the famous "Lang-Gu Controversy" broke out in the history of Chinese business.

Lang is Lang Xianping's son, Gu is the former Chinese white goods giant "Kelong Electric", and the big boss of the down-and-out wealthy "Meiling Refrigerator".

Including Yaxing Bus and Xiangyang Bearing, they together form the famous Greencool series in the Chinese business community.

Like Tang Wanxin of Delong, Lao Gu was also an entrepreneurial young man with ideals in the beginning.