Chapter 835 Hongyan 2005 (Part 1)
“Which company can do a good job in online marketing will be able to succeed in the Internet era.
Conversely, which company ignores the benefits brought by the Internet If it is a revolutionary change, then it will also be doomed to fail.
So the underlying logic of the Business 3.0 era is 'value-added services and differentiation'.
Then the Internet strategy is not to be pursued by Internet companies. Advertising, opening an online store on Amazon and Yihaodian, is it over?
No.
This is just the foundation of foundations.
The core is the ‘value-added services and differentiation’ we mentioned before.
Why do you say that?
Very simple.
With the massive surplus of products and supply exceeding demand, people's consumption awareness began to upgrade.
Products produced by traditional production methods can no longer meet people's growing needs.
The factory still adheres to the extensive production method and is bound to be eliminated.
So if you want to achieve success in the Internet era, you must be focused and focused.
Continuously refine the industry and consumer groups.
In layman's terms, it means becoming more and more professional, starting to be customized, tailor-made for consumers, and taking the route of personalization and differentiation. Products no longer follow a uniform one-size-fits-all model and highlight features.
Changes in these two directions have prompted market differentiation.
It marks the end of the era of market unification, and it also marks that it will be difficult to have unified standards for future products, because different consumer groups like completely different products.
So product diversification has become the biggest feature of the Internet era.
In this era, whoever has a keen insight into segmented groups will control the future.
Put it in the company Master Kong.
Now we only have six or seven products in one category at most, and more than a dozen different categories of products.
But with the diversification of consumer needs and the improvement of personalization, we need to develop dozens or even hundreds of different types of products.
Before, it took us a year, or even several years, to develop a new product.
But in the Internet era, we may need months or even weeks to develop a new product.
The Internet is an amplifier of individual needs and the beginning of a new era.
We at Master Kong must stay ahead of consumers and make institutional and strategic changes in advance to adapt to and seize this era.
Only in this way can we gradually surpass those giants who are still immersed in brand premiums and enjoy the benefits.
……”
This meeting of Master Kong’s future analysis and strategic development planning lasted all morning.
In the afternoon, senior executives from major business units and Master Kong Corporation gathered together for a meeting.
This meeting lasted for three days in total.
Tingyi’s development strategy for the next five years was determined within three days.
To sum up, there are two points.
First, develop all Internet sales channels.
Second, segment consumer groups and differentiate products.
Xu Liang only attended the first day of the meeting, and did not go on the second and third days.
His current identity is the chairman of the board of directors of Master Kong. The position of CEO has been given to Qiao Yuhui, who is the real operator of Master Kong.
He has no intention of overstepping his authority, nor does he have the energy.
……
No. 33 Barker Road, the global headquarters of Red Rock Fund.
"Mr. Xu, is it too early to sell all the equity and debt of Unocal Petroleum?" Xia Changsheng asked.
Xu Liang understood what he meant.
After CNOOC joined Unocal’s bid, the latter’s agreed price soared.
It rose directly from US$24.5 billion to US$26.4 billion.
Moreover, the media has been reporting that Chevron intends to increase its offer to US$27 billion.
Quiting at this time seems a bit inappropriate.
“The main reason why Unocal’s acquisition quotation continues to increase is the background of rising oil prices, but oil prices cannot keep rising.” Xu Liangdao.
Rising oil prices will be a major trend in the next six to seven years.
But in the past six or seven years, oil prices have not been an upward curve, but a wavy line that combines rises and falls and spirals upward.
When will it rise and when will it fall?
Aside from landmark events such as the Iraq War and the subprime mortgage crisis, Xu Liang is not aware of other opportunities.
In this case, we should stop when it is good and not make the last dollar.
“Do you think oil prices will fall in a short period of time?”
Xu Liang shook his head, “I don’t know, but I know a very simple truth.
Once the pigs have been fattened enough, it's time to harvest. ”
Xia Changsheng’s face changed slightly.
As the chief operating officer of Hongyan Fund, sitting in a high position, his eyes are not limited to China or Asia, but follow Xu Liang’s time and again Financial Action, paying attention to the global financial landscape, especially the trends on Wall Street.
Over the years, he has gradually understood
More than 70% of the world's economic fluctuations are related to Americans. Wall Street related
They rely on the pricing power of global energy and currency to continuously harvest wealth.
“I will arrange the transaction immediately.”
After Xu Liang nodded, “Has the Federal Reserve raised the federal funds rate?”
“It has been raised three times in a row this year, totaling Raised by 150 basis points, the federal funds rate has now increased from 1.05% to 2.55%. "The cost of financing has increased," Xu Liang sighed.
In order to curb the overheating of real estate, the United States began to consciously raise the federal funds rate.
As soon as it rises, the cost for major U.S. banks to obtain hot money increases.
Banks also need to make money.
So he will lend out the money borrowed from the Federal Reserve at a higher interest rate, which in disguise increases financing costs.
"Mr. Xu, based on the information we have collected, the Federal Reserve has entered a new round of interest rate hike cycles, and the federal funds rate will rise further. So, should some of our debts be repaid in advance?"
“You mean the shares of Apple, Amazon, and Standard Chartered?”
Xia Changsheng nodded.
When it originally invested in these companies, Hongyan did not have enough liquidity, so leverage was used.
Apple and Amazon were three times, and Standard Chartered loaned US$672 million.
The three companies combined added $2.6 billion in liabilities to Hongyan.
In the low interest rate environment of the Federal Reserve, the interest rates of these three commercial loans are around 3% to 4%.
If the Fed funds rates go up, then they will certainly go up as well.
If the Federal Reserve rises to 4%, Hongyan’s commercial loan interest rate will exceed 7%.
Too high.
"There is no need to worry for now, the Fed's interest rate hike needs a process.
In addition, as a large loan borrower, we can negotiate a relatively favorable interest rate with the bank."
Xu Liang himself is not inclined to Pay back the money.
Only with sufficient liquidity can we cope with the more volatile market environment.
“Understood.”
"How much of the 'credit default swap' position does the company hold now?"
"7.3 billion U.S. dollars."
Xu Liang nodded.
Although it is quite a lot, it is still far from meeting his requirements.
But he also knew that this kind of thing should be done slowly.
Insurance companies are not fools. If you hold a $10 billion bond, even if it is all rated AAA, they will hesitate, investigate, or even reject you.
So, diversifying your investment and buying one by one is the best choice.
But it takes time.
Fortunately, he still has enough time to operate.
After chatting for a while, Xia Changsheng left.
Xu Liang looked at the latest Hongyan Fund balance sheet on the table, feeling filled with a strong sense of satisfaction.
In April last year, after the soybean crisis ended.
Red Rock Fund has total assets of approximately US$55 billion, including approximately US$16 billion in equity assets, approximately US$15 billion in fixed assets, and US$24.742 billion in liquidity.
Total liabilities are approximately US$10.15 billion.
It has five wholly-owned subsidiaries under its name.
Jiulongyu Tourism Company, Taihua Real Estate Group, Sanwei Mining Company, Hengyuan Trust and Harvest Agriculture.
The largest investor is Taihua Real Estate Group, with an investment of US$5.6 billion, liabilities of US$6 billion, and total assets of about US$14 billion.
More than a year has passed now.
Hongyan’s assets have undergone tremendous changes.
Seven important expenditures were incurred in 2004.
1. Acquired 20% of Procter & Gamble’s shares for 13.9 billion Hong Kong dollars
2. Acquired 48.7% of the shares of the Hong Kong Stock Exchange for 6.7 billion Hong Kong dollars
3. Acquired Hynix’s CPU business for 1 billion U.S. dollars, and later purchased it for 13 The price of US$100 million was exchanged for convertible bonds of SMIC.
4. Alibaba raised US$50 million
5. It spent US$1 billion on the acquisition of Aihui Music and Bandai shares.
6. Pay US$2.5 billion to acquire Universal Studios from Hongmeng.
7. The acquisition of 10.3% of Google’s shares cost US$1.7 billion.
Four major expenditures have been incurred in 2005.
The acquisition of Delong Industrial assets increased the debt of 23 billion Chinese dollars.
Acquisition of 34% stake in Brazilian company Amaggi for US$2.5 billion.
The investment in BYAT cost US$250 million.
Inject US$2 billion into Taihua Group.
As for the 75 billion Huaxia coins transferred to China, it has only changed from US dollar assets to Huaxia currency assets.
It is not considered an expense.
In terms of income.
In 2005, U.S. subprime debt income was US$5.49 billion.
This is a real cash benefit.
Equity appreciation and valuation growth due to company development are not calculated.
Calculate it this way.
As of May 10, 2005, Hongyan Fund has been in the market for more than a year.
Revenues were $5.49 billion, expenses were $13.66 billion, and debt increased by $2.6 billion.
Coupled with some of Xu Liang's personal expenditures, such as support for the development funds of companies such as Heytea and Hutaoli.
Although it is not much, there are four to five billion Chinese coins in total.
After calculation, Hongyan Fund’s total liabilities are now US$12.58 billion. This liability includes more than a dozen companies that hold more than 50% of the shares, including Global Travel, Denong Group, and Sanwei Fertilizer.
The one with the highest debt is still Taihua Group.
After five consecutive years, with direct investment of US$8.6 billion, liabilities of about US$7.1 billion, and cash flow of about US$760 million, Taihua's total assets (calculating brand and goodwill) are nearly US$20 billion.
Excluding US$5.49 billion in revenue, Hongyan’s net expenditure over the past year was US$8.17 billion.
At the same time, Hongyan’s cash flow was reduced to US$16.572 billion.
In terms of total assets.
Among Huaxia Assets, Taihua has the largest assets.
Followed by Denong, Sanwei Fertilizer and Harvest Agriculture. After acquiring the Brazilian company Amaggi, the entire Hongyan Agriculture sector is worth nearly US$9 billion.
The second is Universal Travel. After joining Universal Studios, its assets are approximately US$5 billion.
(End of this chapter)