Chapter 243 Leverage Operation and Land King Auction
After Zheng Yuhua left, Yang Wendong made a phone call and called Wang Fengzhi, who was in charge of the group’s finances.
"Yang Sheng." Wang Fengzhi greeted after coming in.
"Sit down." Yang Wendong pointed to the sofa in front of him.
"Thank you." Wang Fengzhi said and sat down.
After several years of getting along with each other, the senior executives of Changxing Group all know their boss well. He is very easy-going and has no airs. Not to mention that they are just cleaning cleaners, and Yang Wendong never puts on airs.
There is absolutely nothing wrong with using the word approachable to describe it.
Yang Wendong handed over a bottle of soda, and then asked: "Sister Wang, I would like to have a general understanding of the current situation of several businesses of the group.
No specific detailed figures are needed. This Wait until the end of the year, I may need a lot of funds recently.”
Even if I can finally find a bank loan to purchase a large number of second-hand freighters, the proportion of advance payment will not be low. This is the banking industry. Regular measures to control risks.
Wang Fengzhi asked: "Is it the land at No. 2 Queen's Road and the new ships in Japan? I have also prepared part of the funds for this."
"No, I want to buy more second-hand cargo ships. Yang Wendong said in denial.
As the group’s first financial sister, Wang Fengzhi must be informed of any big moves in advance.
Wang Fengzhi thought for a while and said: "Yang Sheng, at present, the media has made profits from several businesses under the group, but not much. The total profit in a year is only hundreds of thousands of Hong Kong dollars. We can only bear the profits and losses ourselves. , because they themselves also need investment.
The real estate is slightly profitable, but there is still important investment in the follow-up, especially since Yang Sheng is also preparing to bid for No. 2 Queen's Road, and funds will definitely be injected in the future.
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Changxing Shipping's profitability is very good. There are currently 8 cargo ships, and it has a profit of more than 4 million Hong Kong dollars a year. However, it has not been long and there is not a lot of funds on the account. This is because these ships are owned by you alone. It was purchased directly with full capital, so there is no pressure to repay the loan, and funds will also be needed to build a shipyard in the future.
The most profitable one is Changxing Industrial. I estimate that this year’s net profit will exceed HK$45 million. However, because you transferred a lot of funds to brother companies, plus the investment in Changxing Industrial Park, this year’s net profit will exceed HK$45 million. The funds on the account are estimated to be only HK$20 million more. ”
“What about the big debt? "Yang Wendong asked again.
Wang Fengzhi said: "The bigger liabilities are, first, the liabilities of Changxing Real Estate's acquisition of 7 buildings on Hong Kong Island and a large number of old buildings and land in Kwun Tong. The total amount exceeds HK$25 million. However, these are all mortgaged with properties, and the rent collected can cover the loan repayments.
The second is the investment in Changxing Industrial Park. We only invested HK$10 million in this land and subsequent infrastructure, and the other almost HK$30 million was also borrowed from HSBC and Standard Chartered.
There are also some other small liabilities, such as the land and warehouses that Changxing Industrial once purchased in Tsim Sha Tsui, or the properties acquired by Changxing Real Estate in other places, and the dock in Zuizuiwan. These add up to almost 20 million in liabilities. "
"So we have 70 to 80 million in debt. Yang Wendong nodded and said: "With the subsequent land acquisition at No. 2 Queen's Road, it will exceed 100 million." "
"Yes, we have to pay about 10 million for this piece of land ourselves, and we need to borrow money for the rest. "Wang Fengzhi added: "However, although our debts are large, they are normal and healthy.
For each loan, we have collateral of equal value. These collaterals are either valuable or can make normal profits on their own. Unless there is a serious economic crisis, there will be no risk.
The most important thing is that we have the most profitable Changxing Industrial Factory, with annual profits of tens of millions. Judging from this figure, even if banks are cautious about mortgages on factories, it is not a problem to refinance a certain amount of money. . ”
"Well" Yang Wendong thought for a while and asked: "I remember that Changxing Industrial's account had almost 30 million Hong Kong dollars last year, so now it is almost 50 million?"
"Yes, it's close. "Wang Fengzhi replied: "Keeping enough cash in the account, using loans for other businesses, and making millions of profits every month, this is the safest business method.
This is the safest way to do business. It doesn’t include some of the funds in your overseas account.”
Yang Wendong said with a smile: “There are some funds, but they are not very much. I also have other uses.”
Actually. When operating a factory in Hong Kong, it is completely possible to keep most of the profits in overseas tax avoidance accounts. However, Yang Wendong did not do this. Instead, he only kept a part overseas or in the United States to facilitate the acquisition of stocks of foreign companies, such as the previous Wal-Mart. invest.
The reason why most of the profits are kept in Hong Kong is mainly because it is only the early 1960s and the electronics industry has not yet exploded. Although there are some overseas projects that are suitable for investment, Yang Wendong does not know.
On the contrary, Hong Kong This is where he has focused on development in the past ten years. Keeping profits in the factory in Hong Kong will make the factory's finances look very good, so that more funds can be leveraged to invest in real estate and shipping. Or other businesses to obtain the highest benefits.
Wang Fengzhi said again: "That's no problem, Yang Sheng, how many more freighters do you need to buy?"
"Maybe 19, or even more. That's it." Yang Wendong added Some specific details were informed to Wang Fengzhi.
It was not decided before, so there was no need to inform the finance department. Now it is almost time, and the finance department also needs to make preparations as soon as possible.
After listening, Wang Fengzhi nodded and said: "I understand. Although the price of so many second-hand freighters is not as high as the five new Japanese ships, they will indeed occupy a lot of our funds."
In In Hong Kong, well-connected shipping kings only need to pay 10% to 20% of the ship price to purchase a new ship. The rest is a loan or a tail payment, and the loan will be repaid slowly after the ship is built in the future.
However, this is extremely risky. Generally, the payment is more than 30%, but for second-hand cargo ships, it is difficult.
Yang Wendong nodded and said: "So there are two methods now. One is to pay directly with Changxing Industrial's money, but this may consume more than half of the funds in the account.
Another way is to use Changxing Industrial as collateral for a loan, and use the profits of our factory, and ordinary banks will agree.”
In the past, although Changxing Industrial also participated in mortgages, the amount was not high. This time the scale is large.
Wang Fengzhi thought for a while and said: "Then I suggest you take a mortgage. Even if you borrow 30 million, it will only be the factory's profit for most of the year. What's more, after the Changxing Industrial Park is completed, next year's profit will only be higher. Our group still needs to keep enough funds in the account to be safer."
"Yeah, that's OK." Yang Wendong nodded and said. "You work with Changxing Industrial's financial department to prepare all kinds of information. It will be needed when you apply for a loan."
If you want to develop quickly, you must borrow money, otherwise even if Changxing Industrial's profits Extremely high, HK$30 to 50 million a year, which means you can only buy a piece of land in Central, a few new ships, a dozen or twenty old ships, or a large number of properties in Kwun Tong
But now, with a good loan, you can buy all these things within a year. Although the debt will exceed 100 million, the acquired properties or assets themselves are either appreciating in value or making continuous profits
Except for a few companies such as Apple, Laoganma, and Google, most other companies have developed in this way, especially those involving heavy asset industries.
"Okay." Wang Fengzhi agreed.
After deciding on the subsequent development plan of Changxing Shipping, Zheng Yuhua went to Japan again, intending to reach an agreement with Mitsubishi Shipyard in a short period of time. At the same time, he also sent four teams under his command to negotiate with those who intended to sell the ship. Seller negotiates.
Wang Fengzhi began to unite the finances of the two subsidiaries of Changxing Shipping and Changxing Industrial, prepared the information, and waited for the review of the bank team.
In the market, news has also spread that Changxing Shipping is about to purchase second-hand freighters on a large scale, which has attracted the attention of many people.
One week later:
Central, Conde Building:
This is the headquarters of Global Shipping.
After listening to the report from his subordinate Wang Xiaowei, Bao Yugang was a little incredulous: "Are you sure the news you heard is true? In addition to purchasing 5 new freighters, Changxing Shipping will also purchase almost 20 second-hand freighters? ”
"Yes, it should be true." Wang Xiaowei said with certainty: "Originally it was just a rumor, but Changxing Shipping suddenly released news that it would recruit a large number of captains, first mates, sailors, maintenance engineers, hull cleaning personnel, etc. < br>
Although the specific number is not clear, it is far more than the number of people required for 5 new ships, which also confirms that the rumors seem to be true. "
Bao Yugang saw that his men looked very confident. , and said: "If this is true, after his purchase is successful this time, then Yang Wendong will probably be the new shipping king of Hong Kong."
"It is not enough in terms of tonnage, but judging from the number of ships, it is It has reached the level of ship king." Wang Xiaowei added: "It's just strange why he wants to acquire so many old ships. We are all thinking about buying new ships;
Generally speaking, old ships are used. The boat is also due to lack of funds and can only be used. However, Yang Wendong should not be short of funds. He has a good relationship with HSBC and Standard Chartered. In addition, there are banks in Japan that can jointly lend, so there is no need to buy an old boat. "< br>
"Maybe it's because of time?" Bao Yugang said with some uncertainty: "Even if he has enough money, if he wants to buy a new ship, if there are too many, he will have to wait for a long, long time. For old ships, the price needs to be negotiated and he can buy them immediately. The deal will be done.”
“It’s possible, but what’s the rush?” Wang Xiaowei said strangely: “With so many old ships, the energy to operate them will be very high, and they will have to be scrapped in batches in the future. The existing business has been impacted. "
"Perhaps it is because of the demand of Changxing Industrial Park?" Bao Yugang seemed to have thought of the problem: "The main reason why Yang Wendong does shipping should also be for the export of his own products. Now that such a large production base has been built, maybe there is a demand for this? "
"This is quite reasonable." Wang Xiaowei agreed: "I am really envious. I have so much business. The risk of expansion will soon be very small."
"Yes, but there is no use in envy." Bao Yugang shook his head and said: "We have to buy two more ships while the shipping business is very good. New ship”
"Yeah" Wang Xiaowei nodded.
"More than 20 ships? One time?" Dong Haoyun was silent for a moment after hearing his son's report and description.
After a while, he said: "He is really a boy."
Dong Jiancheng said: "Yes, once he really acquires 20 old freighters, plus 5 A new ship, the size of the ship, in Chinese aviation Among shipping companies, it is enough to rank among the top five."
Dong Haoyun nodded and said: "Well, then you should also ask some international shipping agencies to see if there are any suitable second-hand freighters. I want them too. Add ships.”
"Daddy, you want to compete with Yang Wendong to buy boats?" Dong Jiancheng was a little puzzled and said, "It's not cost-effective."
"I don't want to compete with him for the boats he wants to buy." Dong Haoyun He shook his head and said: "I want to buy other ships, not cheap freighters like the last time in the United States;
There are so many second-hand freighters for sale in the world, and there are so many opportunities. How can I compete directly with Yang Wendong? I just want to expand the scale of Jinshan Shipping.”
“But our debt is quite heavy,” Dong Jiancheng reminded.
He is well aware of his father's character. He cares very much about his reputation and the size of his company, and has always tried to become the number one Chinese shipping king in Hong Kong.
Originally, this goal was almost achieved, but now the newly emerged Yang Wendong has invested so much resources in the shipping industry.
It may not be a threat now, but it will be hard to say in the future.
Dong Haoyun smiled and said: "Actually, I am also very optimistic about the shipping market in the future, and you are right, our debt is too high;
But although Yang Wendong He is young, but I have to admit that he has a strong vision. Now that he is investing heavily in shipping, it shows that he is also optimistic about it. This is also a kind of confidence for me."
"But." Dong Jiancheng couldn't refute for a while, and thought for a while and said: "Yang Wendong's basic base is not shipping, but industry, and he also has real estate. Dad, I think we also need to diversify, so as to reduce risks."
"Ships are the least risky." Dong Haoyun waved his hand and said: "The real estate cannot be moved, and you can't take it away if something happens;
As for the factory, you can't actually make much money at all, like Yang Wendong , just like him in Hong Kong, if you can also invent products such as sticky notes and trolley boxes, you can pick two of my ships and sell them to you to start a factory."
"Uh" Dong Jiancheng. I was speechless and had nothing to say.
Changxing Shipping’s big move also caused a big disturbance in the Hong Kong shipping industry. Yang Wendong didn’t know that his move also caused several Chinese Shipping kings also further increased leverage to purchase cargo ships.
On the morning of November 30, Yang Wendong came to the Peninsula Hotel.
Because today, the auction of No. 2 Queen's Road in Central is held here.
(End of this chapter)