Yixing Media's theater chain expansion includes cinemas opening wherever commercial plazas owned by Huayang Real Estate are opened, and these cinemas are directly wholly-owned investments by Yixing Media's theater chain companies, including in developed urban areas.
Other second- and third-tier local cities cooperate with small bosses.
But if you want to expand quickly and achieve the goals that Fang Hong expected, you can only use capital operations to acquire existing theater companies, and then upgrade the 3D cinemas. Only in this way can resource integration be completed by the end of the year before the release of "Avatar". The scale of 1,000 3D screens.
On the sofa in the office rest area, Hua Yu's assistant brought a glass of water to Fang Hong. The latter sat motionless on the sofa and said: "The expansion of commercial real estate under your Huayang Group is a bit slow. We need to speed up the progress. Leverage, high leverage.”
The future trend of the property market that will continue to run wildly in the next ten years is like this, and no one can change it.
If it were not for the purpose of laying out the entire entertainment industry chain system and competing for the right to speak in public opinion, Fang Hong would not really want to deeply participate in the property market.
But even so, Fang Hong will not let Stars Capital directly get involved in commercial real estate.
The main investment direction of Qunxing's money is high technology and high-end physical manufacturing. Especially high-tech fields are money-burning. Rocket recycling, new energy, chips, etc. are all part of Fang Hong's entire territory, and they will be smashed in the future. There are more places for money.
Therefore, even if Fang Hong thought about it, there really wasn't that much liquidity locked up in the property market. If he had to make a choice, of course he would give up the property market without hesitation.
If Qunxing Capital doesn't do it, we can let Huayang Group do it. Huayang Group's main business is commercial real estate. Now it's no problem to increase leverage. Moreover, the debt ratio of domestic residents is almost negligible. If we don't join, others will be People overdraw.
Then simply letting Huayang Group enter the market would be considered as Fang Hong's return for Hua Yongming's original gamble, and at the same time, it would support the advancement of Qunxing's all-entertainment strategy.
As long as Huayang Group can quickly complete deleveraging in this time window during the wave of destocking and skyrocketing real estate market conditions in 2016 and 2017, it can avoid subsequent crises.
When the time comes, major real estate companies will be in trouble. Huayang Real Estate, which has reduced its debts in advance, will be able to calm down and not be affected by the crisis.
Hua Yu heard that Fang Hong asked Huayang Group's commercial real estate to speed up its expansion. He thought for a moment and said in a deep voice: "If we want to speed up our expansion, we can only take the path of high debt and high turnover."
The so-called high debt and high turnover means borrowing money from the financial leasing market at a higher interest rate. As soon as the money is obtained, the land will be purchased immediately. Once the land is acquired, it will be resold and mortgaged to obtain new cash flow from the bank, and at the same time, part of the funds will be allocated. The construction of a building on this land was quickly started and pre-sale was launched. The house was sold before it was completed, and another amount of working capital was withdrawn from the buyers.
Then continue to photograph the land, mortgage it to the bank, use part of the funds to build the building and start pre-sales.
Such a cycle...
Fang Hong said with a smile: "High debt and high turnover are indeed very fast, but they are not fast enough."
Hua Yu couldn't help but said: "How much faster can it be?"
Fang Hong said calmly: "Qianrong, Qianrong, Qianrong, please give me more liquidity."
Hua Yu asked curiously: "How to say?"
After hearing this, Fang Hong pondered for a moment, saw the water glass on the table, and immediately picked up the glass and drank it clean.
There is also a good-looking woman sitting in the sofa area, who is Hua Yu's assistant. She is responsible for taking notes next to her. It can be said that she is one of the few people who knows almost all the business secrets of Qunxing Capital and stays with Hua Yu all year round. He is his right-hand subordinate.
After Hua Yu became CEO of Qunxing Capital, she also followed him.
Fang Hong had already noticed that Hua Yu had an unusual relationship with his female assistant, but he didn't say anything about it.
"Let's use this cup to simulate the scene..." Fang Hong took 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. The purchase price of each cup 10 yuan, but I only have 10 yuan in hand, which is only enough to buy 1 cup. It would be too slow to buy 1 cup, sell it, recycle the funds, restock it, and then sell it."
At this point, Fang Hong's eyes fell on the female assistant and said: "Suppose you are a buyer and the retail price of the cup is 12 yuan. You bought it. At this time, I tell you that this cup is sold to you, but the price of the cup is 12 yuan. I'll keep it here for a week, and after one week you come to get the cup, I'll give you 1 yuan back. If you put the cup here with me, you'll get 1 yuan for a week. Then the cup will still be yours. It's a good deal, so you agreed. .”
Fang Hong looked at the two of them and smiled: "At this time, I already have 12 yuan more liquidity in my hand. The cup is still in my hand. I will find you, Brother Hua, and sell you the cup for 12 yuan." , but the cup stays with me for a week. After one week, if you take the cup away, I will give you 1 yuan back, so the cup is still in my hand, but this cup has been sold twice as the underlying asset. There is also 24 yuan of liquidity.”
"Then I repeated this routine to find the next buyer, and the next buyer... Until the fifth day, I had sold this cup 1,000 times, and I had accumulated 12,000 yuan in liquidity. On the sixth day, I took 10,000 yuan of it to the wholesale market and purchased 1,000 cups at once."
"On the seventh day, you all come to ask me for cups and 1 yuan. I give you cups and 1 yuan one by one. The remaining 1,000 yuan is profit. Originally, I could only earn 10 yuan a week, but now I only earn 10 yuan a week. I made 1,000 yuan and my efficiency increased a hundred times.”
"This is the fatal magic brought about by the expansion of capital under financial leverage. It is enough to make people continue to work hard. Everyone is happy when they win. If the car overturns, it can drag a group of people into the water without losing money. What we need to pay attention to is cash flow. As long as there is no problem with cash flow, If no one asks you for a cup along the way, the cycle can theoretically continue indefinitely.”
"Another point to add is that our Qunxing Capital is going to do a project. Before we take action, we need to penetrate the underlying assets of the project and find out how many hands the project has passed. If the cup is stolen or broken, it will be considered a non-performing product." The assets are lost."
After speaking, Fang Hong put down the cup in his hand.
Hua Yu, who was sitting aside, stared at the cup and said in a deep voice: "You mean, this cup is used as the underlying asset, which means that the underlying assets of Huayang Group are priced. By using this method to increase leverage in the front-end financing stage, you can Quickly leverage hundreds of billions or even hundreds of billions of liquidity..."
When Hua Yu heard the number he read out, he couldn't help but his heart beat wildly for a while. The game was too big, the game was not ordinary!
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: "If you have something to say, it doesn't matter."
The female assistant nodded and expressed her doubts: "What I am more worried about is that this is likely to put us into huge legal risks. Assuming that the people who buy the 'cups' unite together, as long as the number of people If there are enough, we can be prosecuted for illegally absorbing public deposits, which is commonly known as illegal fund-raising. This is a criminal case."
Once a criminal case of non-smoking fraud is confirmed, the main personnel involved will have to go in and step on the sewing machine.
The female assistant further said: "Assuming that I am the buyer, the basis for my lawsuit is that when you know that your company has no actual ability to perform, you still fabricate that the company is in good operating condition and portray yourself as a very powerful company. It looks like it’s just for the purpose of defrauding everyone of their payment.”
Hua Yu immediately looked at his immediate boss. Fang Hong was very calm at this time. He crossed his legs and smiled: "You are right. Most people will fall here and report to the sewing machine team. Of course I have considered this issue." , Naturally, we need to take precautions and isolate risks.”
Hearing this, Hua Yu couldn't help but ask: "Is there a solution?"
Fang Hong nodded and said: "So you must pay taxes during the period, pay taxes in full, and never evade taxes. In addition, you must get a loan from a commercial bank, so that you will have the bank's credit documents, including the company's credit report." Reports, also include loan review approval statements.”
After a pause, Fang Hong continued: "Because you have paid taxes, you can go to the national tax to get a tax certificate, right? What do you need this series of data materials for? Of course, it is to prove that the company is a large taxpayer and is in good operating condition. Where is the evidence that you said you fabricated your business conditions? Be careful, I will sue you for defamation. The company's reputation will be greatly damaged because of you, and you will have to pay compensation."
The female assistant was speechless.
Fang Hong looked at the female assistant and said: "If one day, the company is dragged to the court by a series of lawsuits, and the other party cannot sue the company for non-smoking and fraud charges, what problems will arise in the end? What do you think? You should know, right?"
The female assistant was stunned and said: "I know, this is a civil dispute..."
Hearing this, Fang Hong suddenly snapped his fingers: "You're right, it's a civil dispute. Then let the lawyer team go and argue with them about the lawsuit. It doesn't matter how long it takes. Anyway, the company will do whatever it is that it should do. Are we still short of legal fees?"
…
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