Chapter 412: Changxing Real Estate's Huge Profits and Future Investment Plans
Chapter 412: Changxing Real Estate's Huge Profits and Future Investment Plans
As a boss, once an investment project is decided, you will basically not participate in the subsequent specific negotiations. Even if the project involves tens of millions of dollars, you only need to pay attention to the progress regularly.
After meeting Lu Yunsheng again, the two sides verbally agreed to continue in-depth discussions, and Yang Wendong rushed back to Hong Kong with his family and some of his subordinates; Zou Wenhuai and several people from the headquarters office, plus professional real estate, legal, and business teams, stayed in Singapore to negotiate with Lu Capital.
After returning home, Su Yiyi asked, "How was Singapore?"
Yang Wendong smiled and replied: "Not bad, you can all go and have a look when you have a chance in the future."
"Okay, don't we go together?" Su Yiyi asked.
Yang Wendong shook his head and said, "In the future, our Yang family should try to avoid having everyone in the same place, on the same plane, or in the same car.
Although the probability of this happening is very low, it should still be avoided.”
This topic was discussed with Lu Yunsheng during a casual chat before, and Yang Wendong also learned that the four sons and their father of the Lu family were not allowed to ride on the same plane, and the same applied to car elevators.
Even several family members are not allowed to go to one place overseas together, just to avoid extreme situations. Of course, everything is fine within their own sphere of influence. It is impossible for a family not to live together. And the area around the family is where their family is permanently settled. Unless they encounter a heavy firepower attack, nothing will happen.
"Brother Dong, are you doing this for safety?" Su Yiyi also understood and said, "Yes, we should do this in the future. It will be better when our children grow up."
Yang Wendong nodded and said, "Yes, the children are still too young now. If they grow up a little, our family will be stable."
In fact, as far as each business is concerned, Yang Wendong is confident that his layout will not cause any problems in the future. With today's scale, even if the timing of the Hong Kong real estate crisis changes due to his influence, it will at most make him earn less money in terms of funds, which will not affect the foundation of the group at all.
Especially in the future, their own real estate will gradually shift to hoarding a large number of high-quality locations, properties, etc., and the specific development business will be handed over to the future four major families invested by themselves or other future real estate giants. In this way, the risk will be basically eliminated, because even if history changes, people like Li Jiacheng and Li Zhaoji will most likely still rise.
Apart from real estate, I cannot influence the future of shipping; as for Changxing Industrial's manufacturing industry, there will not be any problem, not to mention the future electronic era, I still have too many opportunities. In addition, I also have some financial investments of my own, and so on.
At present, the biggest risk is the safety of family members. When the net worth is high enough, this issue must be considered.
Su Yiyi also said: "I understand. We can only wait until they grow up."
"Yeah," Yang Wendong smiled.
It is indeed a very long time for a child to grow up. In modern society, it takes at least 22 years for a child to graduate from university. Then, they need to be trained for a while longer before they can take over part of the family business. And they may not be able to do it well.
Of course, modern enterprises do not necessarily need their own children to manage them, and letting children take over is not necessarily the best choice. But even if children do not take over, they must be able to look after professional managers. In this era, Chinese wealthy families still mainly choose children to take over, even if they will use professional managers in the future. Therefore, the education of wealthy families is a very important matter, even more important than the development of the enterprise itself.
Time quickly entered October, and the various subsidiaries of Changxing Group were also developing according to plan.
Wednesday, October 10:
Zheng Zhijie brought the previous quarter's report to his boss and said, "Mr. Yang, this is the data of all the properties we cashed out in the past three months. We have sold a total of 370 million square feet of properties with a total value of HK$1.12 million."
"These should be mainly financed by loans, right? How much have you paid back?" Yang Wendong asked with a smile.
Zheng Zhijie replied: "In total, we repaid HK$3700 million. Taking into account the interest of more than 6800 million that we paid before, our profit from these transactions is about HK$ million."
"The principal and interest are 5000 million?" Yang Wendong recalled, and then looked at it carefully.
Zheng Zhijie quickly explained: "Mr. Yang, when we bought these properties, it was basically 3% capital and 7% loan, and the interest was also relatively high;
However, as land prices rise, the proportion is low, and there are some secondary mortgages later, so the accounts are very complicated, but house prices have increased by an average of 3 times in the past few years. No matter how high the interest rate is, we have earned enough. "
"Hmm." Yang Wendong continued to look at the document in his hand. He could still make out some clues, at least he could understand the large numbers.
After a while, Yang Wendong put down the documents in his hand and said with a smile: "It seems that the profit is not bad. The direct profit in these three months is far more than Changxing Industry and even Changxing Shipping."
Zheng Zhijie said with a smile: "It's still incomparable. Our total return is actually just the total return over the past few years. We just cashed out part of it recently."
Yang Wendong asked again: "How much area is left that has not been cashed out?"
Zheng Zhijie replied: "There are still about 250 million square feet left, and I will sell all of them before December. However, because the locations of these parts are better than before, both the selling price and the profit are similar to before." "That means, before December, I can earn nearly 12 million Hong Kong dollars just by cashing out?" Yang Wendong asked.
"Yes, this is also the total performance of our real estate company in the past few years." Zheng Zhijie added: "But we also have to take into account the 200 million square feet of Central Building and shops that we are not planning to sell. According to today's housing prices, these properties are worth no less than 2 million, but these properties also have tens of millions of debts."
"Since we won't cash out, there's no need to assess the value. Just include it in the existing properties." Yang Wendong paused and said, "In addition, you have also prepared a lot of properties for our sister companies in the past few years, and the ownership has also been given to them."
"Yes." Zheng Zhijie replied.
Yang Wendong added: "This real estate is indeed profitable. Judging from the performance in the past few years, it is equivalent to our net profit of 4 million Hong Kong dollars in four years, plus 1.5 million square feet of various commercial buildings. This performance is not much different from Changxing Industrial itself."
Even in the 60s, when Hong Kong real estate was not yet crazy, the profits were much higher than those of ordinary manufacturing factories. Of course, this was also because Yang Wendong, as a time traveler, dared to rush into the real estate market with his eyes closed, and the capital investment was sufficient.
But in any case, the return rate of Hong Kong's real estate market in recent years has awakened many industrial tycoons. Therefore, after the late 60s, Chinese capital headed by Li Jiacheng began to engage in real estate on a large scale and gradually gave up factory industries. This is normal. In the mainland of the past, there was a period of time when the wealth of real estate developers was much higher than that of ordinary industrial tycoons.
Zheng Zhijie said: "This is all because of Mr. Yang's good guidance."
Yang Wendong said: "Then the headquarters here will go to your place for an audit. After all, it involves so much money and it is also a company procedure."
"I understand. I will prepare all the information here." Zheng Zhijie agreed.
The group headquarters conducts an audit every year, but it was relatively simple for Changxing Real Estate in the past because a large amount of money was invested in the property. The auditors only needed to check the transaction records and property certificates, and occasionally go to the site to verify, and then compare the statistics with the Hong Kong government. It is too difficult to falsify in this regard, and it is easy to be detected.
But now that it has all been converted into cash, it needs to be scrutinized in detail, as is the case with any company.
Yang Wendong added: "According to the plan, we will not be involved in Hong Kong real estate next year. All your businesses will be suspended. Then we will prepare to go to Singapore to investigate suitable investment locations."
"Investing in Singapore?" Zheng Zhijie asked after hearing this: "Is that investing in real estate development or buying a property?"
"Let's focus on property purchase first. There are too many local forces involved in development, so there's no need for us to get involved." Yang Wendong replied.
Real estate development is similar to building a community and then selling houses. It is easy to earn a large amount of local currency in a short period of time. However, if the currency is cashed out, it will affect the foreign exchange of the local government. Property investment is investing in shopping malls, office buildings, hotels, etc., and it needs to be self-owned and then operated or rented out. Such investment is liked by many countries.
In the past, the mainland treated Hong Kong capital and a few foreign investors the same way. They could build office buildings, but not residential buildings. Only a few people were allowed to participate in a few residential projects, such as Li Jiacheng. It was this guy who left a lot of mess behind.
As for external real estate investment, even real estate investment in Hong Kong, his main goal in the future will be to buy a property, collect rent steadily, and enjoy long-term benefits, rather than over-planning for short-term gains.
Zheng Zhijie nodded and said, "Okay, I understand. I will arrange for someone to go to Singapore this month to get a feel for the local real estate market."
"Okay, and Changxing Film Company will also invest heavily there. That's it." Yang Wendong also slowly told them about their plan to purchase cinemas in Southeast Asia.
After listening carefully, Zheng Zhijie said: “This is indeed a good investment, just like when we built cinemas in Hong Kong, the locations of the cinemas are basically good;
In the short term, the cinema chain can make money. In the long term, it can be demolished and a high-rise building can be built. Two floors can be used as cinemas, and the rest can be used as shopping malls, hotels or other purposes. All of these are very good.”
"Yes, I think so too." Yang Wendong said: "Investing in cinemas and supermarkets is the best way to stockpile land."
Any government with a bit of responsibility and brains will have a plan for land. They will not allow businessmen to buy a piece of land and then not develop it, especially if it is in a good location.
For capitalists, buying a large piece of land and then building high-rise buildings would put too much financial pressure on them, so buying land to build supermarkets or cinemas is the easiest way. These businesses themselves can make a lot of money, and the property only needs one or two floors, which can also meet the needs of people in the city. It can be said that they kill three birds with one stone.
"Should we invest in the supermarket?" Zheng Zhijie asked again: "Since the cinema chain is already purchased, I can directly use my funds to buy land in Singapore to build a supermarket."
"That's also a method." Yang Wendong nodded and said, "But don't consider it recently. Just go check it out first. The political forces of the United Kingdom, the United States, Malaysia, and Singapore are still mixing there. Let's talk about it after these are clarified."
Although he knew the future, he would not invest at this time. What if he interfered with the British's plan? He was afraid that his contribution to the factory in London would not only be wasted, but he might also be put on the blacklist, which would not be cost-effective. He also didn't know whether investing at this time would offend any party, so it was completely unnecessary.
The right time will only come when Singapore is officially established and political factors on all sides have stabilized.
"I understand. We do have to consider political factors as well." Zheng Zhijie replied.
PS: Please give me a monthly ticket
(End of this chapter)