Chapter 165 [Capital Expansion under Financial Leverage]

As for the expansion of theater chains of Yixing Media, the cinemas will be opened wherever the commercial plazas under Huayang Real Estate are located, and these cinemas are directly wholly-owned by the theater companies of Yixing Media, including developed urban areas.

Other second- and third-tier local cities cooperate with small bosses.

However, in order to expand rapidly and achieve the goal set by Fang Hong, the only way is to acquire the existing cinema companies through capital operation, and then upgrade the 3D theaters. The scale of 1000 3D screens.

On the sofa in the office rest area, Huayu's assistant brought Fang Hong a glass of water again, and the latter sat motionless on the sofa and said: "The expansion of commercial real estate under your Huayang Group is a bit slow, and you have to speed up the progress. Leverage, high leverage."

The future trend of the real estate market continuing to run wildly in the next ten years is like this, and no one can change it.

If it wasn't for the purpose of laying out the entire entertainment industry chain system and vying for the right to speak in public opinion, Fang Hong really didn't think about deeply participating in the real estate market.

But even so, Fang Hong will not let Qunxing Capital directly get involved in commercial real estate.

Qunxing’s money is mainly invested in high-tech and high-end physical manufacturing, especially in high-tech fields. Rocket recycling, new energy, chips, etc. are all part of Fanghong’s entire territory, and they will be spent in the future. There are many places for money.

So even if Fang Hong thought about it, he really didn't have so much liquidity locked up in the real estate market. If he had to make a choice, of course he would give up the real estate market without hesitation.

Qunxing Capital can let Huayang Group do it. The main business of Huayang Group is to engage in commercial real estate. It is no problem to increase leverage now, and the debt ratio of domestic residents is almost negligible. People are overdrawn.

Then simply let Huayang Group enter the market, which can be regarded as Fang Hong's return to Hua Yongming's original gamble, and at the same time, it will help advance the all-entertainment strategy under Qunxing.

As long as Huayang Group can quickly complete deleveraging in this time window during the wave of destocking and skyrocketing property market in 2016 and 2017, it can avoid subsequent crises.

At that time, the major real estate companies will explode one after another, and Huayang Real Estate, which has lowered its debts in advance, will be able to calm down and not be affected by the crisis.

When Hua Yu heard Fang Hong's request for Huayang Group's commercial real estate to speed up expansion, he thought for a moment and said in a deep voice: "If you want to speed up the expansion, you can only take the path of high debt and high turnover."

The so-called high debt and high turnover means that higher interest is given to borrow money in the financial leasing market, and the land is sold as soon as the money is in hand, and the land is sold and mortgaged to the bank to obtain new cash flow and part of the funds at the same time The building was quickly started and the pre-sale was launched for this land. The house was sold before it was built, and a sum of working capital was withdrawn from the buyers.

Then continue to shoot land, take it down and continue to mortgage it to the bank, allocate part of the funds to build buildings and start pre-sales.

so cycle...

Fang Hong said with a smile: "High debt and high turnover are indeed very fast, but not fast enough."

Hua Yu couldn't help but said, "How fast can it be?"

Fang Hong said calmly: "Qian Rong, Qian Rong's Qian Rong should have more liquidity."

Hua Yu asked curiously, "How?"

Hearing this, Fang Hong pondered for a moment, saw the water glass on the table, and immediately picked up the glass to drink clean.

There is also a good-looking woman sitting in the sofa area, who is Huayu's assistant. She is in charge of taking notes. It can be said that she is one of the few people who knows almost all the business secrets of Qunxing Capital, and she is with Huayu all the year round. He is his capable subordinate.

After Huayu became the CEO of Qunxing Capital, she also followed.

Fang Hong had already seen that the relationship between Hua Yu and his female assistant was unusual, so he didn't see through it.

"Just use this cup to simulate the scene..." Fang Hong held the cup in his hand and played with it, and said methodically: "Now I want to go to the wholesale market to purchase a batch of such cups. 10 yuan, but I only have 10 yuan in my hand, which is only enough to buy 1 cup. If I buy 1 cup, sell it, return the funds, buy it, and then sell it, it is too slow.”

Speaking of which, Fang Hong's eyes fell on the female assistant and said: "Suppose you are the buyer, and the retail price of the cup is 12 yuan, and you buy it. At this time, I will tell you, this cup will be sold to you, but put it on the shelf." I stay here for a week, and after a week, if you come to get the cup, I will return you 1 yuan. When you see the cup, I can get 1 yuan for a week. At that time, the cup will still be yours. This is a good deal, so you agreed .”

Fang Hong looked at the two and said with a smile: "At this time, I already have 12 yuan of liquidity in my hand, and the cup is still in my hand. I will find you, Brother Hua, and sell this cup to you for 12 yuan. , but the cup stays with me for a week. After a week, if you take the cup away, I will return you 1 yuan, so the cup is still in my hand, but this cup has been sold twice as the underlying asset. There is also a liquidity of 24 yuan."

"Then repeat this routine to find the next buyer, the next buyer... until the fifth day, I have sold this cup 1,000 times, and I have accumulated a liquidity of 12,000 yuan. On the sixth day, I took 10,000 yuan of the money to the wholesale market and bought 1,000 cups in one go.”

"On the seventh day, you all come to ask me for a cup and 1 yuan. I will give you the cup and 1 yuan one by one. The remaining 1,000 yuan is profit. I used to earn 10 yuan a week at most, but now I earn only 10 yuan a week. Earned 1,000 yuan, and the efficiency has increased by a hundred times."

"This is the fatal magic power brought by capital expansion under financial leverage. It is enough to make people rush forward and win. Everyone is happy. If the car overturns, it can pull a group of people into the water. It is not a loss. The thing to pay attention to is cash flow. As long as there is no problem with cash flow, No one asks you for a cup in the middle, theoretically it can go on indefinitely.”

"One more thing to add is that Qunxing Capital is going to make a project. Before we sell the project, we need to penetrate the underlying assets of the project. We have to figure out how many hands the project has passed. If the cup is stolen or broken, it is bad. Assets are lost."

After speaking, Fang Hong put down the cup in his hand.

Sitting on the side, Huayu stared at the cup and said in a deep voice: "You mean, this cup is used as the underlying asset, that is to say, to price the underlying assets of Huayang Group. Using this method to increase leverage in the front-end financing stage can Quickly leverage the liquidity of hundreds of billions or even hundreds of billions..."

When Hua Yu heard the number he read out, he couldn't help but jump wildly in his heart for a while. It's too big, it's not so big!

At this moment, the female assistant seemed to want to say something, but held back.

Fang Hong saw that she was hesitant to speak, and immediately said: "I have something to say, but it doesn't matter."

The female assistant nodded and expressed the doubts in her heart: "I am more worried that this may put us in huge legal risks. Assuming that when the time comes, people who buy 'cups' will unite together, as long as the number Enough to sue us for illegally absorbing public deposits, commonly known as illegal fundraising, which is a criminal case.”

Once the criminal case of non-smoking fraud is confirmed, the main personnel involved will go in and step on the sewing machine.

The female assistant went on to say: "Assuming that I am the buyer, the basis for me to sue you is that when you know that your company has no actual ability to perform, you still pretend that the company is in good condition and portray yourself as a very powerful company. It looks like it is for the purpose of defrauding everyone for the payment."

Hua Yu immediately looked at his immediate boss, Fang Hong was very calm at this time, and smiled with his legs crossed: "You are right, most people will fall here and report to the sewing machine team, of course I have considered this issue, Naturally, it is to prevent and isolate risks."

Hearing this, Hua Yu couldn't help asking, "Is there a solution?"

Fang Hong nodded and said: "So you must pay taxes during the period, and pay taxes in full. You must not ask for a dead end to evade taxes. In addition, you need to make a loan from a commercial bank, so that you will have the bank's credit documents, including the company's credit reference report, which also includes the approval statement for the loan review."

After a short pause, Fang Hong continued: "Because you have paid taxes, you can go to the national tax to get a tax certificate, right? Why do you need this series of data materials? Of course it is to prove that the company is a large taxpayer and its business is in good condition. How can you say that you fabricated your business situation? Where is the evidence? Be careful, I will sue you for defamation, the company’s reputation has been greatly damaged by you, and you have to pay for it.”

The female assistant was speechless.

Fang Hong looked at the female assistant and said: "If one day, the company is dragged to court by a series of lawsuits, and the other party can't sue the company for non-smuggling fraud, what issue will it end up with? Should know?"

The female assistant was stunned: "I know, this is a civil dispute..."

Hearing this, Fang Hong snapped his fingers immediately: "That's right, it's a civil dispute, so let the lawyers go to the lawsuit to argue with them, it doesn't matter how long, anyway, the company should do whatever it wants, Are we still short of the lawyer's fee?"

...

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