Chapter 1103 It’s 2007
After nearly four years of hard work by Xu Liang and Sun Mingzhen, Hynix has completely gotten rid of the predicament of being on the verge of bankruptcy in 2003.
Especially in the past two years, flash memory chips have been very profitable, and Hynix has also made a lot of money.
The completion of the Wuxi factory has made it the second largest flash memory manufacturer in the world after Samsung.
Just these two chip factories with an annual output of 1.2 million 12-inch wafers and 1.2 million 8-inch wafers can generate nearly 7 billion US dollars in revenue every year.
This directly doubled Hynix’s main business income.
Gross profit also increased significantly.
Coupled with the profits earned from the capital market, the debt that was once US$18 billion has been reduced to US$11 billion.
And the company still has nearly $4 billion in cash sitting in its investment accounts.
It can be said that Hynix's finances are already very healthy.
In comparison, Vivendi, Unocal, Taihua, and Seibu are far behind.
In the past two years, under the guidance of Xu Liang, Vivendi has made no less than tens of billions of dollars in the capital market.
There is also the golden chicken that lays eggs like "The Voice".
Revenue in 2006 increased by 18% compared with last year.
But not all the money earned was used to reduce debt.
A large part of it is invested in telecommunications.
Vivendi is now one of the largest 3G telecom operators in France, the Netherlands, and Luxembourg. In 2007, it also plans to explore the telecom markets in Central European and North African countries such as Switzerland, Monaco, and the Czech Republic.
Large investments have increased Vivendi’s assets and reduced its debt ratio.
However, Vivendi and Veolia have a combined debt of nearly 40 billion US dollars, and the debt ratio is still higher than 50%, and there are still great financial risks.
Due to the industry, Taihua's debt has now exceeded 70%.
Unocal is similar.
The original acquisition of Unocal Petroleum alone added $18 billion in debt.
Fortunately, as oil prices have soared in the past two years, Unocal has made huge profits, which is enough to support the company's healthy operations.
The most difficult thing is Seibu, which is insolvent.
Xu Liang's plan is to take advantage of the subprime mortgage crisis to reduce the debt ratios of the five companies to 40% or even around 30%.
Of course, reducing debt doesn’t mean paying it back directly.
Fund utilization is too low.
By acquiring or investing in more industries and using higher revenue to repay the money, not only can the corporate income tax be reduced, but the company's scale can also be expanded.
Kill two birds with one stone.
After hearing the staggering debt scale of these companies, Jiang Xiaoyang no longer cared about Xu Liang's distribution of the CDS debt held by Hongyan to them.
"How is the matter between SMIC and BOE going?" Xu Liang asked.
"According to your request, the shares of the two companies held by Hanhua were also sold to the 'Hanhua American Charitable Fund'."
The Hanhua American Charitable Foundation is a charitable organization located in Los Angeles.
The actual controller of this charity is Xu Meng, who has changed his nationality to the United States.
Hanhua donated nearly 70 billion US dollars in pre-tax profits from the United States this time to the Hanhua American Charitable Foundation. Xu Liang would not trust anyone except Xu Meng, his own sister, to have control of it.
Jiang Xiaoyang also disagreed.
“This year SMIC and BOE can invest freely.”
Jiang Xiaoyang also had a smile on his face.
Last year, BOE and SMIC obtained US$20 billion in loans from banks such as Standard Chartered and ICBC to build panel factories and chip factories with Hanhua providing guarantees.
Plus R&D investment and equipment depreciation.
In 2006, it lost nearly US$700 million.
This number will at least double in 2007.
The real big point is 2008. The large-scale construction of factories in 2006 will enter the equipment depreciation period. Coupled with the depression caused by the subprime mortgage crisis, the loss will probably be no less than 3 billion US dollars.
It's just losses. The two companies combined will be worth tens of billions of dollars in three years.
Coupled with Xu Liang's new factory construction plan, the total investment will be hundreds of billions of dollars in three years.
SMIC and BOE will definitely not be able to come up with such a huge sum of money, and financial institutions will not provide loans without guarantees.
So whoever holds equity in both companies will invest money.
As a major shareholder, the ‘Hanhua American Charitable Foundation’ must invest more.
It doesn't matter if other shareholders don't follow.
The ‘Hanhua American Charitable Foundation’ has enough money.
In this way, within the rules, the money Hanhua earns in the United States can be continuously sent back to the country without having to pay high capital gains tax.
When the time comes 10 years later, when the panel industry and the chip industry are about to come out of the doldrums with the outbreak of smartphones, the equity of the two companies will be bought back from the 'Hanhua American Charitable Foundation'.
Because of continued huge losses, the prices of SMIC and BOE will not be very high.
In this way, the two strategies of paying less taxes and reaping the fruits of victory are realized.
As for the ‘Hanhua American Charitable Foundation’ which suffered serious losses.
Ahem, there are always losses in investment.
Very normal.
From now on, the ‘Hanhua American Charitable Foundation’ will receive all the gross profits made by Hanhua from the United States, and at the same time play the role of a ‘nanny’.
Provide a steady stream of ammunition for the expansion of Xu's enterprises.
Of course, in order to avoid following the truth.
The investment projects of the ‘Hanhua American Charitable Foundation’ cannot all suffer losses, and the huge investment of tens of billions of dollars always requires some other channels to maintain and increase its value.
"The investment income from the United States accounts for 70% of Hanhua's total income this year. Without this huge amount of money, Hanhua will be short of a large chunk of income."
Jiang Xiaoyang said slowly.
Xu Liang glanced at her.
"When BOE and SMIC are well established in the future, they will be acquired by the Xu Family Hanhua Wealth Trust."
This trust is a legacy trust established by Xu Liang for Jiang Xiaoyang and their children.
“Acquisitions cost money.”
"The total market value of all Hongmeng's subsidiaries has exceeded 200 billion US dollars, and there are still more than 20 billion US dollars in cash on the account, as well as a series of unlisted companies such as Pangu Company and Kingsoft Software." Xu Liang reminded.
The meaning is obvious, I give you the most assets.
Stop being greedy.
Jiang Xiaoyang listened and understood what he meant.
He pursed his lips and said no more.
As Xu's assets become larger and larger, the relationship between the two has been alienated by capital and turned into partners.
love?
Long gone.
Otherwise, Jiang Xiaoyang would not let Xu Liang live and drink outside.
What is exclusive is love, what is let go is called bed partner.
"My dad asked us to go back for dinner tonight." Jiang Xiaoyang changed the subject.
"Okay, it just so happens that I haven't played chess with him for a long time."
The two chatted for a while, and then Jiang Xiaoyang left.
……
Because Jiang Xiaoyang was due to give birth in two months, which happened to be the New Year's Eve, she did not return to her hometown for the New Year this year.
The 2007 Spring Festival Gala was disappointing.
Although Lao Zhao's "Planning" is good, it is obviously inferior to the past "Selling Kidnappings" and "Xiao Cui Talks".
Pan Duanjiang's "Carry Love to the End" was refreshing to him.
Apart from these two, the other programs did not leave much of a deep impression on him.
Just after the New Year, Jiang Xiaoyang gave birth to his second son in the special care unit of Beijing Children's Hospital.
Father Xu Yongpei named this ‘grandson’ Xu Wenzhao.
Xu Liang peeled an apple and handed it over.
"Wen Zhao looks like you."
After taking the apple and taking a bite, Jiang Xiaoyang looked at his sleeping son next to him with a gentle and loving smile on his face.
"Yangyang looks like you, and Wen Zhao looks like you, so as a mother, I have no sense of existence at all."
"His mother is so beautiful. When this brat grows up, he has charmed many girls."
Xu Liang flattered him a little.
"Hmph, with you as a father as an example, they will definitely be playboys in the future."
"Haha, lust is a man's nature."
"Humph, I knew you would say that. ...I will definitely teach them well in the future and strive to make them become good men from beginning to end."
Xu Liang smiled and said nothing more.
Men's urge to reproduce is engraved in their bones.
Among ten men, not even half are innocent. Most people do not fall down the red flag at home, but flutter colorful flags outside.
After looking at the time, Xu Liang stood up straight.
"It's almost time. I have to go to Hongmeng for a meeting, so I'll leave first."
"Well, come back soon."
"Know."
After leaving home, Xu Liang came to the Future Science City, Hongmeng UFO headquarters.
After the first phase of Future Science City opened last year, it became a landmark in Beijing.
With Bing going public and its market value exceeding US$170 billion, this place has become a technological landmark in China.
It even has a certain popularity around the world.
Global Travel also took advantage of the situation and added this place to its tourist attractions.
When Xu Liang came over, he saw many blond and blue-eyed foreigners wandering in the square outside the Future Science City.
"Mr. Xu, happy New Year."
"Mr. Xu, Happy New Year."......
Seeing him come in, Hongmeng's employees quickly greeted him respectfully.
He smiled and nodded, and walked all the way to his office on the top floor.
Not long after he sat down, Xie Wen opened the door and walked in.
"Mr. Xu."
"Lao Xie is here? Come and sit down, I just made black tea."
Xie Wen came over with a smile and sat down on the sofa next to him.
"It seems I came at the right time."
"Haha, you must have come here because of the scent of my tea."
Smiling and pouring him a drink.
"Taste it."
Xie Wen picked it up, sniffed it gently and then took a sip.
"Dianhong?"
"Yeah."
"I thought you were Dahongpao again."
"Change your taste. I'm tired of drinking Dahongpao all the time."
Putting down the teacup, Xie Wen placed the documents he had brought over in front of Xu Liang.
“This is Hongmeng’s financial report and operating information last year; and this year’s development plan.”
Looking at the thick pile on the table in front of him, Xu Liang smiled.
"So many? No wonder I haven't handed them in until now."
"The company is getting bigger and bigger. There are so many things at home and abroad, and we have to review them in the middle, so it takes a lot of time."
Xu Liang nodded.
Why is it always said that very large companies have low efficiency and rigid management?
Because I have to be rigid.
There are dozens or hundreds of countries involved, and each country has different laws.
Even different parts of the same country have different laws.
The resulting management, taxation, personnel, etc. are all extremely complex issues.
It also wastes a lot of time.
Therefore, companies with less than 100 employees are the most efficient, and the CEO can directly manage every employee.
Once the company has more than one hundred people.
This will inevitably bring about various reports and various management processes.
Administrative expenses are increasing and efficiency is declining.
Hongmeng now has close to 40,000 employees scattered around the world.
You can imagine the complexity.
Xu Liang picked it up, flipped it over briefly, and then put it down.
He already knew the rough data and took the rest back to look at.
“The settlement with Hutchison Whampoa is over?”
"It's over."
Hongmeng, Hutchison Whampoa and Taihua made a three-party deal.
Hongmeng sold Internet Technology to Hutchison Whampoa, and Hutchison Whampoa sold Beijing Oriental Plaza to Taihua.
Each of the three parties has its own interests.
The sale of Internet Technology also directly increased the cash reserves of Hongmeng Corporation by US$5.2 billion.
Hongmeng Corporation’s cash reserves exceeded 20 billion for the first time, reaching a height of 20.7 billion US dollars.
Hongmeng Corporation now has no debt.
This huge amount of liquidity is invested in treasury bonds and monetary funds, and the annual interest income is as high as 1.5 billion US dollars.
Hongmeng now uses this interest to maintain the company's operations.
Mainly personnel salaries and R&D expenses.
When Bing, Yihaodian, Sina, Hongmeng Games, Universal Pictures, and DreamWorks Animation operate independently, all the expenses of Hongmeng headquarters will actually be less than 1.5 billion US dollars.
Therefore, this cash asset will continue to increase.
"How are the listing arrangements for Kingsoft Company going?"
"A prospectus has been submitted to the Shanghai Stock Exchange." After a pause, Xie Wen hesitated, "Mr. Xu, do I have to be listed in Shanghai?"
"The people below have any opinions?"
Xie Wen nodded.
"Everyone still feels that the domestic stock market trading system is not perfect, and they would rather list on Nasdaq and the Hong Kong Stock Exchange."
“It’s just path dependence.
Now the development of the Internet is in full swing, and the prospects of the Internet have been recognized by the capital market.
Whether it is Nasdaq or the Hong Kong Stock Exchange, every listed Internet company has created a high market value of dozens of times the price-earnings ratio.
This craze has affected the world, especially China.
However, China, especially mainland investment companies and ordinary people, are rarely able to share in the high returns brought by Internet listings due to institutional reasons.
This is a huge hidden force.
We need to unleash this power.
Jinshan is the best introduction. "Xu Liangdao.
When 360 was in the United States in the last generation, its market value was less than 10 billion U.S. dollars. After returning to A-shares, it increased more than seven times, and exceeded 440 billion Chinese dollars at its peak.
Although the A-shares in 2007 are different from the A-shares in 2018.
But the stock market is much hotter now than it was in 2018.
Big A created an unprecedented peak of 6,000 points.
It has never been achieved again.
"I will pass on your words."
Seeing that Xu Liang's attitude remained unchanged, Xie Wen didn't persuade him any more.
After so many years, the big boss has never missed it.
The listing of Kingsoft is different from the previous ones such as Yihaodian, Bing, Sina and Wangke.
Kingsoft has never raised external funds.
100% of the shares are directly held by Hongmeng headquarters.
Of course, Kingsoft’s business scale is far inferior to that of Yihaodian and Bing.
Until now.
Kingsoft has six mainstream businesses: WPS, Kingsoft Security Guard, Kingsoft PowerWord, Kingsoft Pinyin Input Method, Hongmeng Browser, and Kingsoft Software Manager.
In 2006, the total revenue was only 2.54 billion Chinese dollars, and the operating profit was 370 million Chinese dollars.
Based on a price-to-earnings ratio valuation of 30 times, Kingsoft’s market value is less than 10 billion Chinese dollars.
The plate is not big.
Therefore, Hanhua is fully responsible for the listing of Kingsoft Software this time.
"Mr. Xu, when will Hongmeng Games be scheduled to be launched?"
"Why, Wei Xiao and the others can't bear it anymore?"
"Seeing their brother companies going public one after another and their value doubling, they really can't help it. And SoftBank, JP Morgan, and Goldman Sachs also hope that their investments can be realized," Xie Wen said.
(End of chapter)