Chapter 929 Oil and Gold
Hynix's revenue is getting higher and higher. If the debt is low, he will have to pay more corporate income tax. He does not want to pay so much money to the South Korean government.
The total debt that Hynix needs to repay next year will not be as much as this year.
It is completely affordable with its own revenue.
And the best way to repay debt is to increase assets and repay debt through higher revenue, rather than paying back money directly.
However, Hynix's own financial situation is currently unable to support its continued expansion.
There is no better investment target.
"Oppa, the global flash memory market is now in full swing. After the Wuxi factory is put into production, the debt problem will basically be solved, so should we continue to expand the new factory?" Sun Mingzhen asked.
Xu Liang was very pleased to feel the woman's ambition.
He doesn’t hate ambition, he hates showing off.
"No, although Hynix's capital chain is a little safer, it has not completely escaped the crisis. More importantly, the company's operations cannot always walk a tightrope, otherwise it will be difficult to survive once it encounters a black swan."
Of course this is only one aspect.
More importantly, the construction cycle of a large chip factory is two years.
From now on, site selection, design, planning, and construction will begin. By the time the new factory is put into operation, it will be early 2008.
It happened to hit the subprime mortgage crisis head-on.
The global economy has not yet recovered from the subprime mortgage crisis, but it has hit the European debt crisis again.
In other words, for at least four years, the global economy has been at a low level.
This means that Hynix’s new factory will lose money before it can make money.
This has undoubtedly made Hynix’s financial situation worse, and has even directly wiped out all profits in the past one or two years.
He would never make such a mistake.
It was inconvenient to talk on the phone, so he didn't say much to Sun Mingzhen.
“If you want to expand Hynix’s revenue, buy the equity of Hanhua in the Wuxi factory. It’s not the time to build a new factory.”
At the beginning, Hynix had limited capital.
Hanhua also participated in the investment in the Wuxi factory.
Hynix spent US$2 billion plus technology, occupying 55% of the share; Hanhua occupied the remaining 45% with US$2 billion.
"I'll discuss it with Xiaoyang O'Neill."
She also contacted Jiang Xiaoyang about the investment in the Wuxi factory.
According to Xu Liang’s understanding, the two of them now talk on the phone regularly, and they chat much more diligently than he does.
The two chatted for a while, and Xu Liang hung up the phone.
Turn on the computer and log in to the backend of Hynix Investment Department with your own permissions.
You can clearly see the position, price and rise and fall of each investment.
Equity investment, Xu Liang glanced at it and didn’t look any further.
The key is futures.
If all the shares of investment in oil and iron ore are sold, the profit plus principal will be almost US$900 million. Plus Hynix's gross profit this year, it will be enough to repay this year's debt.
After thinking for a moment, he called Xia Changsheng.
"Mr. Xu?"
"Lao Xia, have you sold all Unocal's shares and convertible bonds?"
"All sold."
" What about profit?”
“Total revenue of $2.94 billion”
Xia Changsheng's words were full of joy.
Xu Liang can understand his mood.
Hongyan holds 12.4% of Unocal’s shares and US$1.7 billion in convertible debt.
Total revenue of US$2.94 billion means a return rate of over 90%.
However, this number needs to be taxed.
Investments lasting less than one year are subject to 35% capital gains tax.
After deducting part of Hongyan’s debt, the actual funds obtained were almost US$1.8 billion.
“Very good, we will use 20 million U.S. dollars to give bonuses to everyone.”
Although the entire investment was directed by Xu Liang, it was the company’s employees who made the investment.
Now that he has made money, he is not stingy with rewards.
"I thank Mr. Xu on their behalf."
"How much investment does the company have in oil and gold futures?" Xu Liang asked instead.
“2.1 billion US dollars, 2.7 times leverage, holding 120,000 positions of WTI crude oil, Brent crude oil and Dubai crude oil.
The average position price is 46.7 US dollars.
Now the price of oil per barrel has climbed to US$58.41, and our average floating profit (revenue, non-profit) is US$1.49 billion.
2.3 billion U.S. dollars, 2.4 times leverage, holding 140,000 gold contracts, with an average position price of 394.57 U.S. dollars per ounce.
The current international gold futures price has reached US$461.26 per ounce, and we have a floating profit of US$936 million (income, non-profit). ”
Xu Liangliang was stunned.
Because there are no opportunities like the Iraq War or the subprime mortgage crisis, Hongyan’s investment in oil futures is not highly leveraged and basically falls into the category of long-term investment. .
After the soybean war ended, some funds were transferred into oil and gold futures
However, as the Federal Reserve continues to raise interest rates, it is difficult to obtain low-interest funds.
Using leverage for the long term will result in very thin profits.
"Mr. Xu, do you want to close the position?"
"No. Please prepare the latest asset statement of Hongyan Fund for me. It must be detailed."
"I'll send it to your email right away."
"Yes."
Xu Liang hung up the phone, turned on the computer and waited for a while before receiving a notification tone from Hongmeng's mailbox.
When I opened it, I found a document.
A quick scan.
The assets listed in the document are not much different from the last year-end summary.
Revenue and expenditure.
In addition to daily administrative expenses. There are two main expenditures.
Injecting 8.7 billion Huaxia coins into Penguin helped Penguin acquire some of the assets of Hongmeng Entertainment.
Expensed 1.5 billion euros to acquire a 15% stake in Hermès.
The total combined expenditure is about US$2.9 billion.
In terms of profit, shorting Vivendi and Borlore Group earned 947 million euros.
Add in the $1.8 billion in revenue from being long Unocal.
A total of US$2.965 billion was received.
Income can basically cover expenses.
Excluding equity investments and private equity investments.
Hongyan currently holds a total of US$13.872 billion in cash and short-term bonds that can be used at any time.
But of this huge amount of funds, US$9.8 billion was purchased in the form of Chinese currency to purchase national bonds and corporate bonds.
This money was specially transferred when he acquired Delong.
The purpose is to share the excellent opportunity of the appreciation of the Chinese currency.
If Xu Liang wanted to withdraw this money, he would need approval from above. It would be impossible within a few months or even half a year.
So, the cash and short-term bonds he can use now are only about US$5 billion.
Although this amount of money is a huge sum, it is not enough for one-tenth of the daily trading volume of the relatively large oil and gold futures markets.
Hold the list of Hongyan equity assets.
Apple 14.9% [USD 890 million in debt]
Amazon 15.2% [USD 1.04 billion in liabilities]
Standard Chartered Bank 36.7% [USD 672 million in liabilities]
NetEase 17.5%
Sohu 18.3%
Penguin 69.2%
Alibaba 49.99%
Moutai 14.7%
Wuliangye 11.3%
BYD 19.5%
Google 10.3%
Luhua 25% [180 million acquisition]
Yangcheng P&G 20% [13.9 billion Hong Kong dollar acquisition]
Fuhua 7.1% equity [privatized with Hanhua Group]
< br>CYTS Holdings 12.6%
HKEX 48.7%
US$1.3 billion SMIC convertible bonds;
Hermès 15% [half the voting rights]
It can be said that every investment has great potential, but basically none of it can be harvested when.
Even NetEase and Sohu have only just shown their potential and are far from their peak.
But in order to raise money, he had to give up part of it.
Of course it's not giving up, it's just switching from Hongyan to Hanhua.
One hand to the other.
He can also share in the dividends from these investments in the future.
In addition to equity assets, there are also private equity investments.
On the shelves are Nanjing Second Machine Tool, Tianshan Group, Zhongyan Holdings, NVC Lighting, Nanfu Battery, Yuwang Company, NBA Warriors, and Marvel.
Then there are the items not for sale.
Torch Group, Denong Group, Foster Customer Metal Group, Manchester United Group and other enterprises.
As for Master Kong and Global Travel, they have been put into the family trust.
Assets that belong to him, not Hongyan.
The same is true for Hongmeng and Hanhua.
The assets on the shelves cannot be sold in a short period of time, and it is relatively difficult to realize them.
It can only be excluded from this plan.
Xu Liang took a pen and wrote and drew on the paper until late at night before going to bed to rest.
Early the next morning.
Xu Liang, who was woken up by his biological clock on time, practiced martial arts step by step.
After breakfast, I took Helen and Lu Hui to the Facebook office area.
As the company continued to grow, especially after annexing Twitter, the company moved to a new office area in Menlo Park for better office space.
It covers an area of 57,000 square meters, and the main body is a five-story, 69,000-square-meter office building.
If auxiliary buildings are included, the construction area of the entire park reaches 85,200 square meters.
The remaining space is planted with more than a hundred different shrubs, herbs and trees.
Coming in from the entrance, three huge camphor trees are particularly eye-catching.
“This place is very good.”
“The annual rent is 37 million US dollars, of course it is very good.” Helen said.
After parking the car, Helen, wearing a white short-sleeved women's shirt, a brown knee-length skirt and white high heels, opened the door first and walked out.
“Let’s go and show you the Facebook empire that I have worked hard to build for two and a half years.”
Looking at the proud-looking beauty, Xu Liang smiled and stepped out of the car.
Lu Hui also quickly followed.
The group entered the building.
Helen instantly regained the posture of a strong woman, with a smile on her pretty face and majesty in her eyes. She walked vigorously and resolutely, and her whole person was filled with a domineering attitude.
It is like a beautiful lioness patrolling her kingdom.
Xu Liang, who was following behind, saw this and couldn't help but sigh.
It is true that the environment shapes people.
Think back to when they first met.
Helen, with her wavy blond hair, beautiful eyes, and alluring charm in every gesture, is simply a seductress who will charm you to death.
But since she founded Facebook, her style has changed drastically.
Not only has her dressing style become serious and conservative, but her temperament is no longer the charming and sentimental one it once was.
But she is not the only one who has undergone this transformation.
Jiang Xiaoyang, Qiao Yuhui, Sun Mingzhen, Christina.
Before having her own business, she was either graceful, quirky or charming, but after taking charge of a party, she invariably transformed into a heroic, decisive and powerful woman.
Only when facing Xu Liang in private, will he show his charming side.
But this is exactly what he wants to see.
What he likes is to conquer strong women and enjoy the satisfaction of having them play around and flatter themselves under him.
(End of this chapter)