My 1999

Chapter 1091 Real Estate + Retail

The next day.

"Mr. Xu, this is the price fluctuation of Seibu corporate bonds after the Seibu Group was acquired."

Xu Liang took it.

Before he was acquired, Seibu corporate bonds with a face value of 10,000 yen had lost 80% of their price.

After the news of the acquisition came out, a very obvious upward curve can be seen.

The price has nearly doubled compared to before.

"Has Ruihui made a move?"

"Not yet, it seems that the current price has not reached their psychological expectations."

Xu Liang put down the information and pondered for a while.

"Let Lao Xia pay more attention to Seibu's corporate bonds and add it to the 'Zhurong Plan'."

"Yes."

The so-called 'Zhurong Plan' is a plan to buy corporate bonds at the bottom after Lehman collapsed and the financial crisis broke out completely.

Similarly, there is the 'Gonggong Plan', which is the current plan to acquire CDS bonds based on US subprime bonds.

"Is Lu Jue online?"

"Yes."

"Turn it on."

Li Jinling quickly turned on the screen in the middle of the wall opposite the office.

Not long after, the image of Lu Jue, CEO of Taihua Group, appeared inside.

"Mr. Xu."

"Old Lu, have you read the information sent to you?"

"I have. At present, the Strategy Department and the Design Department have organized a working group to go to Japan."

"Half of the reason why I acquired Seibu Group is for Taihua."

"Mr. Xu's care for Taihua, including me, all the senior executives and employees of Taihua are deeply grateful."

"There is no need to say nice words, the key is to do things well. Especially for the pilot reform of Nagasaki Seibu Department Store, you must be cautious and careful. It is better to go slowly, but you must fight the first battle for me."

"Don't worry, we will be cautious."

Xu Liang nodded slightly.

"Be careful, but don't worry too much. Department stores are outdated, and shopping malls will be the mainstream in the future. You can use the layout of domestic shopping malls as a template and design it in combination with the actual situation in Japan."

"Yes."

"I will also give you a guarantee. If you do well this time, the 42 direct-operated stores of Sogo Seibu Department Store around the world, with a business area of ​​more than 3 million square meters, will all be handed over to Taihua."

Lu Jue was excited.

After getting the news from Xu Liang, he also studied Sogo Seibu Department Store. As a veteran department store in Japan, although its operating model has lagged behind the times.

But they are basically located in the core areas of Japanese cities, especially Seibu Department Store, which is generally huge in size.

Redesign it, make a good revision, and re-recruit investors to make it a high-quality shopping mall.

In particular, Sogo Seibu Department Store is not only in Japan, but also involves the entire Greater China region including Taiwan and Malaysia overseas.

It fits Taihua's business very well.

Looking at his happy look, Xu Liang smiled and continued: "But, Taihua wants to separate the hotel business."

Lu Jue's smile froze.

Everyone likes good things, but if you take out what you have eaten, it will not be so happy.

"Taihua's future core business is very clear, there are only two: real estate and retail.

Commercial real estate is a platform, and clothing, children's playgrounds, small department stores and supermarkets are commodities on the platform. The two complement each other and form a matrix that can rely on each other.

Hotels outside of real estate and retail must be divested."

Lu Jue hurriedly said: "Mr. Xu, I agree with your strategy and agree to divest the hotel business. But can Muji and Yoshinoya under the Seibu Group be sold to Taihua?

They are in line with the 'real estate and retail' strategy you set for Taihua."

"No. Muji and Yoshinoya have gone astray, and the cost of correcting it is too high. I plan to sell them after holding them for a few years. I don't want to hold them forever."

"Going astray? But they are developing very well in China.

Yoshinoya once became one of the three major fast food restaurants in the ocean, along with KFC and McDonald's. One of the meals. "

"That's the problem.

MUJI and Yoshinoya are positioned as affordable in Japan.

But in China, they have become light luxury.

Especially Yoshinoya, a bowl of pre-prepared beef rice costs thirty or forty Chinese yuan.

With so much money, you can eat three meat dishes in a Chinese fast food restaurant.

The price-performance ratio is too poor.

If there is no competition from similar companies in China, it will be fine, but now Chinese fast food chain brands such as "Zhen Gongfu" and "Xiangcunji" are developing rapidly.

They will continue to squeeze Yoshinoya's market.

Now, Yoshinoya can still make money with overseas filters, but over time, diners will vote with their feet.

The same is true for MUJI.

So I am not optimistic about their long-term. "

Xu Liang's strategy for acquiring these two companies is very clear, which is to hold them for five or six years and then sell them.

"Mr. Xu, we can adjust their pricing after we acquire them."

"The cost is too high. Instead of going through all this trouble, it's better to set up a new brand. But I hope you can take care of the current business."

MUJI is okay, it's basically directly operated.

But Yoshinoya is an agent in China.

If you want to do it yourself, you will be involved in the issue of breach of contract compensation.

In addition, Yoshinoya has entered China since the 1990s and has formed a deep-rooted brand recognition.

Re-adjusting the product positioning will involve a series of changes in brand building, procurement channels, etc.

This is a difficult job.

If you don't do it right, you'll end up with something completely different. It's better to start from scratch, with a blank piece of paper to draw on.

Xu Liang: "Moreover, the businesses of Muji and Taihua Boutique Department Store overlap. Instead of pursuing Muji, it is better to do a good job in Taihua Boutique Department Store."

"Yes, I understand."

“How many offline stores are there in Taihua Boutique Department Store now?”

"There are currently 514."

"Stop the expansion of offline stores and focus on the development of online business. At the same time, expand the online product series. Don't you envy MUJI? You should study MUJI's product philosophy.

Acquisition is not necessary. "

After hearing what he said, Lu Jue didn't bother anymore.

"Lao Lu, now Taihua's business is very clear, and it is divided into three major sectors.

First, commercial shopping malls, and additional retail segments.

Second, real estate agencies serve as windows for additional residential real estate, including residential communities and apartment sectors.

The third is properties such as office buildings and conference centers.

As a purely rental property, it is difficult to generate a derivative industrial chain, so except for key first- and second-tier cities, there is no need to develop too many office buildings. "

"clear."

“What is the market value of Kelong Supermarket and Fuhua Real Estate now?”

"Kelong Supermarket has HK$107.7 billion and Fuhua Real Estate has HK$112.8 billion."

"Kelong's market value is low."

After integrating China Resources Vanguard and Nongong Commercial, Kelong Supermarket's revenue has exceeded 100 billion Hong Kong dollars, and the net profit of the main industry is close to 12 billion Hong Kong dollars. According to the popular 10 times price-earnings ratio valuation in the retail industry, it should also be around 120 billion Hong Kong dollars.

Lu Jue: "Maybe it has something to do with our current attrition rate being too high."

Supermarket operations are allowed to have losses, most of which are around 8%. The best company is RT-Mart, which can compress to 3% or even lower.

Less wear and tear means higher profits.

This is also the reason why RT-Mart can catch up from behind.

It is a pity that RT-Mart defeated all domestic opponents but lost to the Times.

It was finally acquired by Alibaba.

“Is Kelong’s consumption high?”

"It's currently at 9.4%."

"What's the reason?"

“There are two main reasons. First, the supply chains of Agricultural Industry and Commerce and China Resources Vanguard have not yet been integrated;

Second, Kelong Supermarket is expanding too fast. Our main focus is on store expansion. Although we have been doing internal management, there are too many new people and the training cannot keep up. ” ˆ ˆ “Now that you know the reason, let’s solve it. I don’t ask too much. If you reduce the loss by two percentage points within a year, you tell Ma Jialiang that if he can’t do it, he can retire directly. "

"yes."

"How much commercial office space does the company currently have for rent?"

"It's 3.7524 million square meters, with a occupancy rate of over 70%, and a price of about 140 yuan/square meter/month. The annual revenue is around 4.8 billion Chinese dollars.

However, the company has several commercial complexes completed this year.

By then, Taihua's total office rental area will exceed 4.2 million square meters, and its revenue will exceed 7 billion Chinese dollars. "

Xu Liang nodded, "Get ready to spin off the group's office building business and set up a subsidiary to go public."

"Mr. Xu, when?"

"Start preparations now and strive to be listed in both Hong Kong and Singapore during the Lunar New Year."

"Are you too anxious?"

"Any later, the opportunity to go public will be missed."

In April or May next year, signs of the subprime mortgage crisis will appear, and global capital will become cautious in investing in real estate.

"I see."

"Put out 25% of the shares to raise funds, and the money raised will be left in the account, waiting for my instructions.

Also, starting next year, Fuhua Real Estate will postpone land acquisition and focus on digesting existing projects and reducing the company's debt ratio. "

Lu Jue is also a veteran in the real estate industry, and he came back to his senses instantly.

His expression became serious.

"Mr. Xu, do you think real estate will enter a new round of adjustment period?"

Real estate has cycles, something the entire industry knows.

"good."

"Then should we also slow down the pace of land acquisition by Taihua?"

"No. Taihua is different from Fuhua. There are many places suitable for building houses.

However, there are basically a number of plots of land suitable for building commercial complexes or shopping malls. If someone else takes it, and we want to buy it back, we may not have a chance.

Therefore, when faced with some commercial land parcels with excellent location advantages, you should take them anyway. "

"OK."

“This integration of Sogo Seibu Department Store is also an opportunity for Taihua, and the company’s clothing, retail, and children’s playground businesses can also take the opportunity to develop.

But remember to adopt the principle of adoption and all business must be localized.

We cannot make the same mistakes that the Japanese made in the Chinese market again. "

"Don't worry, I will definitely focus on the restructuring of Sogo Seibu Department Store. But after the reform, the shopping mall will still be named after 'Seibu' or after Taihua?"

"Seibu, after all, it is an old brand that has been developed for more than half a century. Its goodwill in Japan is far beyond that of Taihua."

"Now we have three shopping mall brands, Taihua, Seibu and Kelong." Lu Jue said with a smile.

Xu Liang smiled, "Brands are dead, people are alive, and adapting measures to local conditions is the long-term solution.

Another thing is that many Sogo and Seibu department stores were built too old and their pipelines and equipment are seriously aging.

There are also many design flaws that are difficult to fix.

If necessary, it can be torn down and rebuilt. "

“Understand, if we rebuild, we can acquire the surrounding land and expand the entire project?”

"Of course. I only give you a development strategy. How to implement it is your business.

But if you want to expand, you have to look at the location.

Some cities that lack development potential should not go to war. "

"OK."

The two chatted for a long time, and finally cut off the video when it was almost noon.

After lunch, I was just about to play with my children for a while in the afternoon when Li Jinling came again.

"Mr. Xu, Li Jiacheng invites you to dinner."

"Li Jiacheng?"

"Maybe it's about Internet technology?"

Xu Liang nodded, "You make an appointment with the other party, and we'll go there tonight."

"yes."

Jingle bell bell…

The cell phone rang.

He looked at the caller ID and pressed the answer button.

"Wife."

Jiang Xiaoyang snorted coldly, "Now you are sweet."

"Haha, this is not sweet talk, this is love from the heart."

"It would be strange to believe you. ... I called this time because I mainly want to discuss something with you."

"you say."

"I received a big M\u0026A order here."

"If I can get you to call me, it seems like the list is indeed quite big." Xu Liang said with a smile.

"This order is about Denong. Sinochem Group hopes to fully acquire Denong at a price of 27 billion Chinese yuan."

"Denon?"

Xu Liang was a little surprised.

"Yes, your Liu Qiangxi is doing a great job. Now Denong is not only one of the largest potash fertilizer companies in the country, but also the largest distributor of agricultural inputs, the largest pesticide manufacturer, and the largest seed producer and distributor in the country.

Although it is not yet on the market, it is developing very quickly.

It has brought a lot of pressure to Sinochem.

They hope to acquire Denong and consolidate their position in the national agricultural input field. "

Of course Xu Liang is aware of Liu Qiangxi's abilities.

Since acquiring Red Sun, he has not stopped making acquisitions.

Relying on the proceeds from the sale of Tunhe Agriculture, Tunhe Animal Husbandry, Tunhe Sugar and other companies, coupled with Xu Liang's investment.

With capital of tens of billions of Chinese dollars, Denong has initiated 13 mergers and acquisitions, large and small.

If it were an ordinary person, after so many mergers and acquisitions, the company would probably be in a mess.

Liu Qiangxi relied on his superhuman energy and superb management skills to keep this rapidly expanding agricultural giant moving forward steadily.

In one fell swoop, the Denong agricultural supplies chain has developed into an agricultural supplies retail giant dominating the three major regions of East China, North China and South China.

Unexpectedly, even the word "Sinochem" with the prefix Guo is now feeling the pressure.

"The price of 22 billion Huaxia coins is low, and I am not short of money. If there are no assets that I am interested in, Denong will not sell it."

Although Denong has developed rapidly under the leadership of Liu Qiangxi, for him, Denong is only a second-tier enterprise in his layout, not core companies such as Hanhua, Hongmeng, Kanghua, Taihua, and Facebook.

He doesn't mind selling as long as the price is right.

"Do you really want to sell?"

"It depends on what price the other party offers."

"If you really plan to sell, you'd better send me a copy of Denon's balance sheet."

"Wait a minute. When September is over, I will send you Denon's balance sheet for the third quarter."

Liu Qiangxi sent him the balance sheet on a quarterly basis.

This is also the norm for most companies to compile financial data.

Jiang Xiaoyang agreed.

After the two chatted for a few more words, Xu Liang hung up the phone.

He has always been the one to focus on other people's assets. Occasionally, when others try to get his idea, it is mostly through financing, and there are almost no large-scale mergers and acquisitions.

Now a Zhonghua suddenly jumped out, which surprised him.

Press the phone on the table.

"Sister Li, prepare a copy of Sinochem's information for me as soon as possible."

"Is it China Sinochem Group?"

"Um."

"OK."