Chapter 552 Accounting
To successfully acquire ‘Hynix’, the most important thing is money.
Xu Liang’s personal money is mainly placed in Hongyan Fund.
There are five main sources.
First, the most lucrative oil speculation income is almost 16 billion US dollars.
Second, the income from selling the New Dream Real Estate project is approximately US$260 million.
Third, the sale of the Guangqumen Taihua City [R&F City] land plot in Beijing brought in 3.5 billion Chinese dollars, or approximately US$424 million.
Fourth, the income from selling Yahoo Japan shares.
Xu Liang holds 10% of Yahoo! Japan's shares, approximately 120 million shares, with an average closing price of US$35.84 per share.
This share alone earned Xu Liang a pre-tax profit of US$4.4 billion.
Fifth, it is the soybean position held by Hongyan.
In total, Hongyan purchased approximately US$9 billion in long soybean positions in the London and US futures markets.
The starting price is 2,500 Chinese yuan/ton. Now the international price of soybeans has exceeded 5,700 Chinese yuan/ton due to the increasing capital speculation.
If Hongyan and Hanhua hadn't been closing their positions, the price would have been higher.
The average closing price of the soybean contract held by Hongyan is 4890 Chinese yuan/ton.
In other words, Hongyan earned 2,390 yuan per ton of soybeans, a total of 8.404 billion U.S. dollars.
But whether it is Yahoo’s stock market profits or soybean futures profits, capital gains tax needs to be paid.
Yahoo did not pay much here. After all, Hongyan has held shares for more than 3 years. It is a long-term capital investment, only about 15%.
The investment in soybeans is less than one year old. According to U.S. tax law, it is short-term profit income.
According to the previous regulations of the United States, he had to pay at least a short-term capital gains tax of close to 40%.
But thanks to George W. Bush, he lowered the taxes that capitalists should pay after taking office.
Washington, who came to power with tax cuts, issued tax cuts one after another from 2001 to 2003. The total tax cuts reached US$1.35 trillion, which was one of the largest tax cuts in American history.
The maximum short-term capital gains tax rate has also been reduced to 35%.
Xu Liang earns too much, so he must pay taxes at the maximum amount.
However, Hongyan Fund is an overseas capital, and China has signed a bilateral tax cooperation agreement with the United States, so it can get certain exemptions.
So, combine these factors.
After deducting various taxes and fees, Japan Yahoo's US$4.3 billion will still have US$3.57 billion left.
From the soybean harvest, after deducting various taxes and fees, there is still US$5.46 billion left.
Added together the four profit directions, the funds held by Hongyan Fund totaled US$25.714 billion.
This is his private liquidity.
Of course, a lot of this money has been spent so far.
The Qiu family’s equity in Standard Chartered consumed US$1.8 billion in cash after buying another 5% of Standard Chartered’s equity from the secondary market.
Then there is the bulk of the expenditure - Taihua Real Estate Company.
Up to now, Taihua has a total of 29 commercial real estate projects.
There are eight in Beijing, namely Fengtai Taihua City, Guomao Taihua Plaza [China's No. 1 Mall], Xizhimen Taihua Plaza [Yindu Center], Chang'an Street Taihua Plaza [Guangyao Oriental Plaza] , Gongzhufen Taihua Plaza [Guohai Plaza], Jianwai Taihua Plaza [Jianwai SOHO], Xidan Taihua Plaza [Xidan Joy City] and Sanlitun Taihua Plaza [Sanlitun Taikoo Li].
The former Guangqumen Taihua City [R&F City] was sold to Fuhua Real Estate Company, a subsidiary of Hanhua.
Five magic cities, Xujiahui Taihua City [Xujiahui Center], Hongqiao Taihua Plaza [Aegean Shopping Park], Shanghai Taihua Global Center [Modu Global Financial Center], Taihua Times Center [ International Financial Center], Oriental Center [Golden Landmark Building].
Pengcheng and Yangcheng have three each.
Then 10 cities including Weicheng, Rongcheng, Shancheng, Chang'an, Quancheng, Sioux City and Wuchang have a Taihua City project.
The construction area of all projects is 12.47 million square meters, the average unit price is 3,014 yuan/square meter, and the total land transfer fee is 37.58 billion Chinese yuan.
Before oil speculation, he had invested US$2 billion and 16.5 billion Chinese dollars, leaving 21.08 billion Chinese dollars left. In addition, in addition to the land purchase money, the first phase of construction funds, 8 billion Chinese yuan, was also spent.
Follow-up construction funds will still need to spend about 30 billion Huaxia coins.
Of course Xu Liang will not take this money out of his own pocket.
But it is paid by land pledge loan.
It is then repaid through the company's profits.
So, for the entire Taihua Real Estate, he spent about 29.08 billion Chinese dollars, 3.5 billion US dollars.
In addition to these relatively large expenses, there are also expenses for Xu Liang’s acquisition of Sanwei Mining from Delong Group, the purchase of Boeing business jets, and expenses for several properties, plus the salary expenses of Hongyan Fund, etc. .
All of this together cost him less than $400 million.
Finally, some shares were acquired, such as Bandai 4.9% and Master Kong 4.9%. The two major shares cost him nearly 800 million US dollars.
After deducting all expenses, Xu Liang still has US$19.2 billion in liquidity.
With this amount of money, it is enough to acquire Hynix and complete its subsequent development.
However, he promised Jiang Weiguo that he would set up an 'Evergreen Fund' under Hanhua to invest mainly in high-tech industries with a total amount of US$10 billion.
“Now let’s see how much money Hanhua can make from soybeans this time.”
Xu Liang said.
Now his Hongyan Fund has completed the selling of soybeans, but Hanhua's Pacific No. 1 Fund is still selling because the amount of soybean spot held is too large.
It’s unclear how much money you will get in the end, but you can definitely get more than Hongyan.
When the Pacific No. 1 Fund Phase 1 is unblocked, Hanhua can get half of the profits.
Even if this amount of money is not 10 billion US dollars, it is at least 6 to 7 billion US dollars, or even more.
But the specific amount depends on how high the four major grain merchants and international hot money can raise the price of soybeans.
At least so far, soybean prices are still rising.
Dong dong….
There was a knock on the door.
“Come in.”
“Mr. Xu, I have sent the information to the President’s Office.” Lu Hui opened the door and came in.
Xu Liang nodded and saw that she had not left, so he asked: "Is there anything else?"
"Mr. Gates called half an hour ago and said that he was waiting for you in Seattle. I originally wanted to It was transferred to you, but Mr. Gates hung up quickly."
Xu Liang nodded slightly, "I understand, is there anything else?"
"Nothing."
Xu Liang waved his hand, and Lu Hui turned and left.
Soon another three days passed.
There is still no news from George W. Bush.
“Why don’t you call and ask?”
Jiang Xiaoyang said on the phone.
"Ask? No need to ask. If you agree, then agree. If you disagree, don't agree. There is nothing to ask."
"Your tone sounds very confident, right?" Jiang Xiaoyang smiled.
"Of course. Who made our Pacific No. 1 Fund so popular now." After a pause, "How many soybeans are left in the company's hands now?"
(End of this chapter )