King of Capital

Chapter 104 Financial Bomb
"Ma'am, please fill out the entry card."

In the cabin of a flight to Silicon Valley, the flight attendant handed out entry cards in a gentle voice.

Song Anli filled out the form under the dim reading light, then tilted her head to look at Xie Jingxing, who was lying beside her with a tired look and sleeping. She couldn't help but pout and covered him with a blanket.

Mr. Xie, who has many identities and titles and is comparable to a slash youth, has been very busy these days, especially yesterday, or to be more specific, last night.

After finishing all the big and small tasks in Shanghai, I flew to Spring City yesterday. In the morning, I interviewed an assistant to the chief marketing officer as an independent director of the "Bu Du" brand, and was fully responsible for the specific implementation of the brand marketing plan.

Then in the afternoon, he attended the project launching ceremony of Chuncheng Warehousing and Logistics Distribution Center as the deputy general manager of Yunhe Logistics, a subsidiary of Yunshan. In the evening, he teamed up with people from local municipal investment companies and banks to make a thrilling "financial bomb".

Song Anli gently spread out her small notebook, which recorded the bomb-making process in words that only she could understand.

——Yunhe Logistics Chuncheng Branch acquired a piece of warehousing land of nearly 350 acres in the Guandu area of ​​Chuncheng. The total price including taxes and fees is about 30 million yuan, but Yunhe Logistics does not need so much land.

The investment institutions (municipal investment companies) established by the Chuncheng local government have been experiencing sluggish land sales this year, and there are still tens of thousands of acres of land waiting to be sold in the second half of the year to boost performance. In addition, the warehousing and logistics center is an asset-heavy business, and its investment return cycle is longer than that of social logistics warehousing that serves the C-end of JD.com, SF Express, etc., and it cannot significantly boost the local economy.

If the land is sold to real estate companies to build houses, the local financial statements will increase that year. However, if the land is sold to Yunhe to build warehouses, it will take ten years to see results. Ten years is too long and no one is willing to do a losing business that will benefit future generations.

Xie Jingxing stood in Chuncheng and looked far away at the transportation railway that would be opened into Vietnam in ten years. He felt that he was willing to do this loss-making business, so he bargained and reluctantly took over the 350 acres of land, promised to provide a certain number of jobs to the local area, build supporting high-end cold chain warehousing and other conditions.

The leaders of Chuncheng City Urban Investment Group immediately gave a thumbs up and praised Xiao Xie for his awareness, and for helping others to improve the performance. In return, they said that if a giant like Yunshan Group came to invest locally, they could raise any difficulties, and some supporting policies should be given.

Then the "financial bomb" came. Yunshan Group raised the valuation of the existing assets of the land of Yunhe Logistics Chuncheng Branch + the expected warehousing and logistics center in the future, and transferred 49% of the company's equity to Xiyou Capital for million yuan.

Yunshan Group then mortgaged 51% of the shares of Yunhe Logistics Chuncheng Branch to Xiyou Capital for 49 million yuan. Xiyou Capital packaged 10% of the shares of Yunhe Logistics Chuncheng Branch and the dividend rights for the next 51 years, plus the interest income from the mortgage loan of 1.2% of the shares of Yunhe Logistics Chuncheng Branch held by Yunshan Group, and transferred the whole to Chuncheng Urban Investment to issue million yuan of bonds.

Overall, Yunhe Logistics Chuncheng Branch paid several million yuan in deposit for the land purchase, and received a total cash flow of 90 million yuan and a 350-acre piece of land. The subsequent land purchase funds can be borrowed from the bank, and the 90 million yuan in cash will all be used for the construction of the warehousing center.

Grapefruit Capital received 30 million in cash, and Chuncheng City Urban Investment successfully added a land sale performance, directly driving nearly 300 million yuan in GDP.

Song Anli stared at the simplified logic chain on the notebook, and her expression gradually became solemn as she disassembled the "financial bomb" that flew into the sky with her left foot on her right foot.

It seems that Yunshan Group only spent a few million to build a top-notch warehousing center from scratch, and according to this set of rules, it can easily build a huge warehousing system across the country, but the problem is how to pay back the money in the end?
The accumulated interest on loans at each node in this financing chain is as high as 35%. The conventional heavy asset operation model of a storage center cannot even repay the principal, let alone the interest.

The final result of compounding interest is that if there is a slight external risk squeeze, the whole bomb will explode instantly, and no one from Yunshan Group to Xiyou Capital and even Chuncheng City Investment Institutions will be spared.

After the group meeting ended last night, Song Anli wanted to ask Xie Jingxing about this question, but a beautiful female analyst from Chuncheng City Investment Group got there before her and helped the drunk Xie Jingxing back to the hotel room.

The beautiful analyst was really beautiful, with glowing white skin and gold-rimmed glasses on her face. She had the aura of a cool, abstinent queen, which made her feel a little ashamed of herself.

Another beautiful vice president from a local bank in Chuncheng helped to cooperate, took her hand and said, "The people of Chuncheng have always been hospitable. Don't worry, leave Mr. Xie to us." Assistant Song, why don't you go to the outdoor hot springs and take a bath? I'll give you a spa. The skills I learned from Thailand are absolutely authentic.

Song Anli was dragged to soak in the hot spring for two hours without knowing what was going on. When she returned to the hotel and saw Li Yan standing at the door of Xie Jingxing's room like a door god, she no longer had any problems.

Today, Xie Jingxing switched back to being the chairman of Grapefruit Capital (USA). He was panting heavily and looked like an overworked person. He fell asleep as soon as he got on the plane and didn't give her any chance to ask questions.

Song Anli became so angry as she thought about it that she rolled her eyes and glared at Li Yan who was sitting next to her. Li Yan shrugged indifferently.

"Are you two okay?" Xie Jingxing's voice suddenly rang out during their silent conversation.

Song Anli retracted her gaze: "It's time to fill in the immigration card."

"What time did you arrange to meet Yuan Zheng?" Xie Jingxing filled out the form quickly and familiarly.

Song Anli raised her wrist and checked the time: "Seven hours later, tomorrow morning at 10 o'clock local time in San Jose."

"We have to buy a business jet as soon as possible." Xie Jingxing asked the flight attendant for a glass of ice water to refresh himself.

The total mileage he has flown domestically and internationally since the beginning of this year is at least 30,000 kilometers, which is more advanced than the peripheral ones that support the "national airborne". He really can't afford such global airborne operations all the time.

Purchasing a business jet before the end of the year can also help Taihe's revenue this year. Apart from other things, the subsequent modification of the aircraft's interior must first be customized with a large-sized mattress. He stretched his body to relieve the back pain and suddenly thought of something: "I added someone on WeChat last night, remember to delete her after a few days."

"Huh?" Song Anli looked confused.

Xie Jingxing explained: "She wants to switch to Xiyou. If you want to partner with her, you can also send her an interview invitation."

"..."

Song Anli was speechless. The partner assistant that was promised to be assigned to her had not yet arrived, so the boss personally interviewed one on the bed. What a good boss who worked tirelessly and cared about his subordinates.

She was a little overwhelmed by herself right now, but what happened last night... She opened her notebook and wrote the word "Delete" in big letters.

Seeing this, Xie Jingxing said, "Go back and buy her a gift."

"Uh, how much is the budget?" Song Anli managed to keep her expression straight. If she was asked to pay Park Zi today, would she have to help pimp tomorrow?

Xie Jingxing thought for a moment: "Two hundred thousand."

I slept last night, but I also talked a lot with the beautiful analyst about the situation of local municipal investment companies in China. After all, municipal investment companies are still in the mid-term stage of land finance, and even many of Evergrande’s outrageous operations were not as outrageous as they would be a few years later.

The operating methods of the Yunhe Logistics Chuncheng Branch project have not been seen to work in all parts of the country. It is impossible for local municipal investment companies to put this kind of wild way of playing on the table and say that we can soar to the sky with one foot on the other. Interested financial players should come quickly.

Therefore, this project of the Chuncheng branch has a strong experimental significance. Xie Jingxing tried to figure out which links in the entire complex operation process can only be understood but not explained, which links have bottom lines that cannot be crossed, and which links can be played a little bigger.

Under normal circumstances, the beautiful analyst would not have talked to him about these things. When they were frank in bed, the boundaries of the topics they could talk about were naturally expanded a lot, which was equivalent to hiring a business consulting expert.

The daily service fee for a McKinsey partner-level project is over $10,000. In comparison, giving a gift with a budget of $200,000 is almost the same. Too much is as bad as too little.

"She will be responsible for connecting with our project later." Xie Jingxing added.

Song Anli thought for a while, adjusted her attitude and responded seriously, "Okay." Deleting private contact information is a matter in bed, and they are still good partners outside of bed. It's not a business gift from Park Zi.

Xie Jingxing nodded slightly with satisfaction: "Although local municipal investment companies are also financial institutions, their style of operation is more like that of traditional banks. We will have many opportunities to interact with each other in the future, and we need to maintain a good relationship."

"Mr. Xie, isn't the financing interest rate for this project a bit too high?" Song Anli took the opportunity to ask the key point that she had been holding back for a day.

Xie Jing Xing pondered and replied: "The financing of this project allowed Xiyou Bai to get 30 million in cash. If I can use this 30 million in cash to earn the entire loan principal, then the interest rate will not be too high."

The Yunshan project is completely in line with Boss Xu's idea of ​​​​playing the game. Based on this approach, Boss Xu piled up trillions of paper assets and debts with hundreds of times leverage, until the company's own blood-making ability could not even cover the loan interest, and then the whole company collapsed.

Xie Jingxing felt that he was inferior to this. Yunshan's debt of one or two hundred billion was enough to create a private leader in the logistics and transportation industry. He was confident that he could pay back the money in the future.

On the other hand, cash flow means more to him than anything else. Let alone 35% interest, if someone can come up with 100 billion in cash, he would dare to lend it at % interest.

"Zoom, we invested 30 million in it. How high do you think the rate of return is? Of course, that's without considering the failure of the project," he asked, giving an example.

Song Anli frowned and thought, if you don't consider the failure of the project itself, then look at the prospects of the entire industry. 'Zoom' is a company that focuses on Internet remote video conferencing business. The market size of the entire large enterprise software service industry has long exceeded 100 billion US dollars. If it is subdivided into the field of video conferencing, it is not an exaggeration to say that it is a market of 10 billion US dollars.

She tentatively gave an answer: "It depends on the valuation and financing ratio. I think it can achieve a 15-fold return rate?"

"I think it's a hundred times." Xie Jingxing laughed and said softly.

One hundred times of thirty million is thirty billion. There are many projects like Zoom with a hundred-fold return rate. He has enough room to maneuver and use finance to fill the gap in industry.

Moreover, even the 30 million cash invested in Zoom was free, oh no, it was obtained by spending a little bit of cheap interest.

Killing two birds with one stone is perfect. Next, financing operations like the Spring City Warehousing Center should be gradually accelerated and carried out more frequently. It is too wasteful for ordinary people to keep their money in the bank. He will borrow it first...

(End of this chapter)