Chapter 760 Shunchi

This price is undoubtedly much higher than the 1.25 billion yuan that Road King Group paid to acquire Sunchi in history.

But Sunchi in early 2005 is fundamentally different from Sunchi in 2006.

During this period, Sunchi's Phoenix City project in Suzhou, which covers an area of ​​more than 1 square kilometer, was reclaimed by the authorities because of failure to pay the land fee in time.

In Shijiazhuang, two projects were transferred out as a whole.

Jinling Company and East China Company were sold one after another.

Layoffs, land sales, recovery by the authorities, and debt accumulation, etc., caused Sunchi's asset value to fall a lot in 2005.

A very simple example.

In early 2005, JP Morgan negotiated with Sunchi and proposed a bet agreement.

Morgan purchased 20% of Sunchi's equity for 750 million Chinese yuan, but if Sunchi's net profit in 2006 was lower than a certain value, Morgan would get 40% of Sunchi's equity.

However, Sun Hongbin was not stupid and did not sign.

But the value of Sunchi can also be seen.

"Since we have agreed, let's sign the contract."

Sha Zhigang nodded, "Mr. Xu, Sun Hongbin wants a full cash transaction, and Fuhua can't afford so much money at present.

In addition, Shunchi owes 4.6 billion Chinese yuan in land fees and bank loan balances.

If we want to keep the land in Shunchi's hands, plus the 3.5 billion acquisition money, we have to come up with at least 5 billion Chinese yuan in cash.

The pressure is too great."

Xu Liang nodded.

Fuhua Real Estate's main business income in 2004 was 3.75 billion Chinese yuan.

Net profit was 736 million Chinese yuan.

Total assets were 89.3 billion Chinese yuan, and total liabilities were 35.692 billion Chinese yuan.

Debt ratio was 38.3%.

However, due to the strategy of restricting real estate from above, the market value fell from a peak of 70 billion Hong Kong dollars to 64.7 billion now.

With Fuhua's current ability, it is indeed impossible to take out 5 billion Chinese yuan in cash at once.

The market is not good now, and corporate bonds are not easy to deal with.

If you take out a loan, the interest rate will not be low.

Of course, as the big boss behind Fuhua, Hanhua must have money.

But Hanhua holds 79% of Fuhua's shares. If it invests money, the shares will definitely change.

Although Xu Liang does not reject increasing shares, as a listed company, too much concentration of shares is not a good thing.

Xu Liang thought for a while, "How about this, Fuhua will do a targeted financing, and Hongyan will provide the 5 billion Chinese yuan."

"Thank you, Mr. Xu."

Through this financing, Hongyan will hold 7.2% of Fuhua's shares.

Hanhua's shares in Fuhua Real Estate will drop to 73.36%.

"Do you have the latest balance sheet of Suncity?"

"Yes."

Sha Zhigang quickly took out a document and handed it over.

Xu Liang took it and flipped through it.

Suncity is indeed worthy of challenging Vanke. After seven years of extreme capital operation, Suncity created sales of 9.2 billion Chinese yuan in 2004, but the profit was much lower than that of the same industry, only 1.47 billion Chinese yuan.

It sounds like a lot, but Shunchi spent 8 billion in 2004 and acquired 12.78 million square meters of land reserves, with more than 4 million in the Yangtze River Delta alone.

This speed is even crazier than Fuhua Real Estate.

"Sun Hongbin is indeed a powerful figure." Xu Liang thought.

When large real estate companies across the country focused their attention on the core urban areas, he asked Shunchi to focus on the edge of the city and the planned new center.

These "raw lands" are not favored by local developers who focus on short-term benefits, the competition is not fierce, and there is great potential for appreciation in the future.

The local government is eager to sell, including the three links and one equality.

There are basically no legacy issues of demolition, which is conducive to rapid construction and delivery.

The land area is generally large, suitable for the construction of large-scale low-end and medium-sized residential buildings.

In fact, Fuhua Real Estate's main investment direction is also in the new city center.

Xu Liang is not for differentiated competition, but he is very clear that the new urban areas with convenient transportation, convenient living, good greening and sanitation in the future will have more real estate development potential than the crowded and dirty old urban areas.

"What a pity."

Xu Liang put down the information.

Sun Hongbin is a powerful person. He was deceived by Liu, but he can start all over again.

After stepping on so many traps including those of Boss Jia and Boss Wang, he was able to make Sunac the top 4 in the national real estate industry. His ability is really beyond doubt.

It's a pity that this guy is a tyrant who can be replaced by others.

Xu Liang also has no confidence in using him for his own use.

"How do you plan to integrate Shunchi?"

Sha Zhigang was obviously prepared for this question.

"Shunchi's assets are mainly divided into three parts.

First, real estate agency.

Second, residential real estate development.

Third, property.

In terms of real estate agency, Shunchi has 800 branches across the country, especially in its base camp Tianjin, which has 300 branches and is the leader of Tianjin's real estate agency industry.

My idea is that Fuhua will take over Shunchi's agency business and use it as a basis to develop our own real estate agency market."

Xu Liang nodded.

Many people buy houses through agents, so a well-developed real estate agency company has a huge bonus for real estate sales.

“In terms of residential real estate, Sunac has a total of 35 projects, of which Suzhou Phoenix City and Tianjin Sun City are the largest.

Phoenix City has a total development land area of ​​90 hectares and a construction area of ​​1.56 million square meters.

Sun City has a total development land area of ​​1,500 acres and a construction area of ​​2.15 million square meters.

These two projects are the diamonds in Sunco’s crown. We plan to complete the development of these two super projects in eight to ten years. "

After Xu Liang nodded, "If you include Sunchi, Fuhua has 117 real estate development projects, right?"

"Yes. 117, with a total development area of ​​35.29 million square meters, ranking first in the country."

Looking at Sha Zhigang's proud expression, Xu Liang smiled and said: "It is indeed an achievement worth being proud of, but we are different from Sunco in that we do not play extreme capital operations.

Also, the quality of Fuhua’s real estate projects comes first, and I don’t want customers to point their fingers at us in the future. "

"clear."

“In terms of property, Sunchi has a total of 49 projects with a total management area of ​​7.48 million square meters. Although Fuhua also provides property services, Sunchi’s projects are too efficient and of average quality.

Wall cracks occurred in the Jinmen Sun City project, and decoration materials were also reported to have been secretly replaced.

If we took over, the cost of repairs would be very high. "Sha Zhigang said.

After Xu Liang thought for a moment, he said, "Let's take it over first and see if we can't make money."

"OK."

“Also, the real estate market this year is not very good, and many real estate companies are experiencing operating difficulties, so those that need to be merged and acquired must be resolute.

We should take advantage of the market downturn to reserve a large amount of land.

Fuhua's land bank will exceed 50 million square meters this year. "Xu Liang said.

Sha Zhigang was shocked, "Mr. Xu, is it too much? I'm afraid it will be difficult for the company to get so much cash, and the bank will not give us preferential loans."

"Don't worry, I will take care of the funding."

Xu Liang now wants to convert a large amount of U.S. dollar assets in his hands into Chinese currency assets. Compared with other industries, the real estate industry is the most suitable industry with large investments, simple investment methods and broad prospects.

Sha Zhigang, relieved, couldn't help but ask: "Mr. Xu, do you think this domestic real estate downturn will pass soon?"

"China's urbanization rate is now less than 40%, so despite the strong determination from above to regulate real estate, it won't last long."

Xu Liang knows the future of China’s real estate industry better than anyone else.

After 19 years, when supply exceeds demand, China's real estate industry will truly enter a trough.

In view of the big boss's brilliant investment resume, Sha Zhigang trusts his judgment.

"Okay, that's all I have to say, you go back to work."

After seeing Sha Zhigang off, Xu Liang looked at the time.

After putting on his coat, he left the company.

Walking through the streets and alleys, we soon arrived at Heqiao Lijing Community.

After knocking on the door of Room 902 in Building 3, Liu Qianxi appeared in front of her wearing a white long-sleeved thin sweater, loose purple floral trousers, long hair shawl, bright eyes and white teeth, and a smile like a flower.

Seeing him, the little girl had a surprised smile on her face.

"Brother Xu."

With one step, the whole person rushed forward.

Xu Liang hugged her delicate body, smelled the fragrance of her bun, felt the softness on her chest, and a small flame suddenly burned in his heart.

He walked in with the girl in his arms, closed the door, held up her pretty face, lowered his head, opened his teeth, and kissed her fiercely.

Liu Qianqian responded fiercely, as if she wanted to rub her body into her lover's arms.

"Sissi?"

The crisp sound, like thunder, suddenly woke up Liu Qianqian who was intoxicated in her lover's tenderness.

He hurriedly pushed Xu Liang away and pulled down the rolled sweater to cover his graceful body.

Xu Liang said in surprise: "Do you have any guests here?"

Before Liu Qianqian could reply, a beautiful girl wearing a loose red thin sweater, a ponytail, and black tight-fitting trousers walked over from the living room.

Seeing the two of them, a trace of surprise appeared on their innocent and pretty faces.

"you……?"

Liu Qianqian said quickly: "Let me introduce you. This is Xu Liang. ...This is my good friend Shu Chang."

Xu Liang suddenly realized that he remembered that Liu Qianqian had mentioned to him before that he had a good best friend named Shu Chang.

He was no stranger to this person either.

After all, characters such as the Heavenly Child Mother and Silly Girl are both classic.

"Hello."

Xu Liang smiled and extended his right hand towards the other party.

After reacting, Shu Chang subconsciously held Xu Liang's right hand.

"Are you Sissi's boyfriend?"

Judging from Liu Qianqian's state, it was clear that the two had been intimate before, so it was not difficult to guess Xu Liang's identity.

"Um."

After letting go of his hand, Shu Chang rushed towards Liu Qianqian and attacked her armpits with the 'Nine Yin White Bone Claws'.

"Okay, Liu Qianqian. If you don't tell me that you have a boyfriend, you are no longer a good best friend!"

"Hehe, haha, who told you not to ask."

With that said, Liu Qianqian quickly counterattacked.

For a moment, the whole room was filled with laughter like silver bells.

The two beautiful beauties were playing around in a unique style, and Xu Liang stood aside with a smile without disturbing them.