Chapter 333 Playing Into Xie Jianlin’s Arms!

It's hard to imagine that Xie Jianlin lost his composure in a rare moment!

If his subordinates who were familiar with Xie Jianlin saw this look, they would definitely be shocked.

Because Mr. Xie’s reaction is unprecedented!

You must know that in Xie Jianlin's life, especially in the past ten years or so, he has encountered all kinds of storms, good and bad.

It is no exaggeration to say that to achieve such a high position, there are very few events that can cause great fluctuations in his heart.

But what he heard this time completely exceeded his understanding of business and subverted all his previous perceptions!

It was obviously worth 28 billion shares, but 7 billion was directly cut off?

What kind of magical operation is this?

Is this something that humans can do?

Xie Jianlin, who has been in business all his life and has come into contact with countless businessmen of all kinds, has never heard of anything like this in his life!

At the same time, Xie Jianlin never expected that this small company in his eyes could suddenly make such a big noise!

how so?

Isn’t this company just established a few months ago? !

Isn't this development speed too amazing? !

To be precise, the capital strength behind this company is too amazing, right? !

Far beyond his expectations!

This is a forced investment of funds and assets!

Originally, he had drawn up a list, and he felt that the capital behind Shiwang Group was probably on this list.

Especially some people's work style is very low-key, which is quite suitable.

But now it seems that it is not!

Because most of the candidates on his list are either in the real estate industry or are mainly related to the real industry.

There is no one who can come up with such a large amount of Internet assets!

It’s not that they don’t have that ability, but that none of the people on this list are involved in the Internet, and their main business is not on the Internet!

And it’s impossible to be so generous, giving away billions of profits at every turn!

Who is it...who made a big move into the real industry and took out two very high-quality property rights...

There are still such an astonishing number of shares of Internet giants now? !

This strength is so powerful that not even Xie Jianlin dares to underestimate it anymore!

The key is that the other party's behavior, treating billions of dollars as nothing, is incredible!

"Are you kidding your dad?" Xie Jianlin came back to his senses and said seriously with a straight face: "This kind of joke is not funny."

"Dad, why am I joking with you!" Seeing his father's rare gaffe, Xie Qing felt a little excited for no reason, and responded:

"It's true! It's absolutely true! That's what they said!"

"Huh? Did they really transfer 28 billion worth of shares to their investment company at a price of 21 billion?" Xie Jianlin couldn't help but ask: "Are you sure you heard the number correctly?"

"You definitely heard it right, I confirmed it again and again!" Xie Qing nodded and said firmly.

Xie Qing can completely understand his old father's reaction.

Anyone who hears this incredible thing will not believe it!

"This..." Xie Jianlin was a little dumbfounded.

Now that the words have been spoken to this extent, he will naturally no longer doubt the authenticity of this matter.

But why would the other party do this? ?

You must know that stocks are real assets!

As long as you resell it on the stock exchange market, you will get the banknotes!

Especially a high-quality stock like this, and it still has 2%,

If you really want to sell, you only need to find those shareholders who are interested in increasing their shares, and if you facilitate a large transaction, there is a high probability that the price will be much higher!

Not to say too much, it is not difficult to sell for 30 billion!

Not to mention that Mei Tuan's momentum is still very good, its position as the number one in the market is becoming more and more stable, and there is still plenty of room for growth in the future!

"What on earth are they thinking..." Xie Jianlin murmured: "If it were me and the company really needed funds, it would be better to just sell the stock!"

"Frequent selling in the secondary market may cause the stock to fall temporarily, but in the end the funds obtained will be at least 27 billion!"

"I still don't know how to operate. I sold out a lot of goods in a short period of time, which caused the stock price to fluctuate downward."

"But if the operation is good, there are more batches, and the time is longer, it will definitely be stable to get 28 billion! Even more is possible!"

"Then, wouldn't it be more comfortable to transfer the acquired funds to the Real King Group? Maybe we can get 30 billion without us participating in the investment!"

"It would be better now, just give us all this huge benefit???"

"What are you planning?"

"I can't understand either..." Xie Qing curled his lips and muttered in a low voice: "That's why I just asked you if there is any illegitimate child outside..."

"What nonsense!" Xie Jianlin's mouth twitched. This girl is really generous. At this time, she still has the heart to joke!

"Hehe." Xie Qing smiled and said:

"What should we do now? What the other party said is very clear. If we follow the investment, this asset will be transferred to the company at 21 billion. Otherwise, according to their wishes, it may be transferred to the company at the original price, and then our shares will be transferred to the company. It has to be diluted..."

"Follow! You must follow!" Hearing this, Xie Jianlin made the decision without thinking.

It stands to reason that a 9 billion investment must go through rounds of inspections, analyses, evaluations, and discussions before a final investment feasibility report can be obtained.

This process is definitely very long.

But what kind of investigation is needed for such a good thing in front of us?

What reason is there to refuse?

Although I don’t understand the other party’s intentions, and I can’t figure out why the other party would do something that would harm their own interests, for the Xie Group, this is not an issue they should consider!

As long as it is confirmed that the other party's shares are genuine and the price is indeed transferred to the company at 21 billion, then for the Xie Group, this is a sure-profit deal!

And the profits are amazing!

It’s not an exaggeration to call it huge profits!

The visible profits of billions and nearly tens of billions are a huge temptation even for the Xie Group!

You know, this year 2020, as of December now, the Xie Group's full-year net profit is only 13.88 billion!

That is a net profit created by hundreds of billions of assets!

And if you invest 9 billion now, you can earn more than half of this year's net profit. Who can refuse this kind of thing?

"Okay." Xie Qing smiled knowingly when he heard his old father make such a firm decision.

It seemed that her father was more decisive than she thought, which saved her a lot of drool. Originally, she was thinking about how to persuade him.

Now it seems that there is no need at all, and her previous worries are purely unnecessary.

"But..." Xie Jianlin paused and said, "9 billion in cash is difficult to come up with in a short while. Do they have specific requirements in this regard?"

"No! I specifically asked about this!" Xie Qing was a little complacent. It seemed that he had considered it quite comprehensively, and replied:

"The other party said that it can be done in the form of assets or assets + cash!"

"Oh..." Xie Jianlin responded, feeling slightly relieved.

I'm just afraid that it all requires cash, which is also a big trouble for the Xie Group, and it may not be possible to get it immediately.

For real estate developers, the more cash they have, the more money they have, but they have to deal with subsequent debts.

If there is a sudden cash flow problem and an account cannot be paid, it will cause a series of chain reactions, and in serious cases, it may even collapse instantly.

Take Xie Jianlin's Xie Group, for example, it faced a severe debt crisis!

The kind that almost collapsed!

In the past few years, the total value of the real estate assets owned by the Xie Group reached 570 billion. Is it surprising? !

But what is even more astonishing is that the debts of Xie Group are as high as more than 420 billion!

In other words, the net asset value of Xie Group is less than 150 billion!

What's even more terrible is that many of the real estate assets of the Xie Group have been mortgaged in order to obtain loans from banks and other financial institutions!

With such a high debt ratio and various mortgage loans, if there is a problem in one link and the cash flow is disrupted and repayment fails, it is likely to have a domino effect!

The entire Xie Group will collapse in an instant!

Fortunately, in the end, Xie Jianlin decisively cut off his arms to survive, frantically sold batches of assets to external parties, and spent a lot of money to repay debts, lowering the debt ratio to about 50%. Only then did Xie's Group's situation stabilize!

Otherwise, whether there is still the Xie Group now, and whether the Xie Group still has the surname Xie is still a question!

Although the debt ratio has been reduced, it has only reduced high risks to medium risks.

For real estate developers, it is impossible to fundamentally solve the debt problem, and no real estate developer has the strength to pay it all off. If it can reduce the debt ratio to less than 80%, it is considered very good.

The Xie Group directly reduced the price to about 50%. This is basically a leader in the real estate industry and a symbol of strength. It is also a sign of Xie Jianlin's amazing courage. He can sell assets at low prices without blinking an eye!

At present, the Xie Group's interest-bearing liabilities are more than 180 billion.

Among them, short-term borrowings amounted to 630 million, non-current liabilities due within one year were nearly 70 billion, and long-term borrowings exceeded 90 billion.

At present, the Xie Group has approximately 50 billion in monetary funds flowing on its hands.

Therefore, it is foreseeable that if there is a large-scale centralized payment of bonds and a little carelessness, Xie's Group will fall into the dilemma of default.

Therefore, 9 billion funds are not so easy to move!

But if you can use assets to follow the investment, that would be easy to say...

The Xie Group doesn't have much else. The company's assets are really countless. There are nearly 400 Qianda Plazas alone, spread across the country.

Hundreds of billions of hard assets, that's not something that comes out of nowhere.

Although many of the assets have been mortgaged, after struggling to survive in the past few years, a lot of the holes in this area have been filled. The funds required to repay the loan in advance are not very large, and it is better than a one-time loan. It would be much less to take out 9 billion in cash.

More importantly, transferring assets out is in line with Xie Jianlin's strategic direction!

This is the strategic plan to adjust from ‘asset-heavy’ to ‘asset-light’!

Originally, the Xie Group's real estate projects, such as Qianda Plaza, were all handled by the Xie Group itself at the beginning of the project, including site selection, negotiation, design, land acquisition, construction, and subsequent investment and operation. It's up to them.

This was the previous core ‘asset-heavy’ model of the Xie Group, with all property rights and so on being in its own hands.

I won’t go into details about the advantages of the asset-heavy model, but there is an obvious disadvantage.

That is, the project has a long construction period and huge initial capital requirements.

This leads to the fact that if the Xie Group wants to expand its scale, it will have to constantly borrow money from banks and use the bank's money to support the rapid development of the group.

For Xie Group, continuing to repeat this model means that the debt ratio will become higher and higher, and risks will continue to accumulate.

This is the fundamental reason for the high debt levels in previous years.

In the past, the success of this model depended entirely on banks or policies.

In the past, banks were a bit lax in their review of this aspect, and since this aspect is a big profit point for them, they are naturally happy to facilitate the conclusion of the transaction.

It's a good thing for both parties.

But right now, under the policy of "no housing speculation", bank lending has been tightened!

Not only are loans no longer as good as before, but the cost of loans has also increased significantly!

The increase in loan costs will undoubtedly greatly increase risks.

Therefore, transformation has become an urgent matter for Xie Jianlin.

Not just him, all real estate developers are looking for new opportunities!

Subsequently,

The concept of "asset-light" emerged spontaneously!

The so-called asset-light is actually easy to understand. It means that Qianda Plaza, which was originally built with funds independently invested by the Xie Group, is handed over to others for investment.

In other words, let others provide funds!

There are so many wealthy capitals across the country, and there are countless people who can invest in a Qianda Plaza.

Only one capital is needed to invest in one company, and the Xie Group's market will be quite huge!

Those who have capital may have spare money, but they have no experience or connections in this area, and they know nothing about operating commercial real estate!

In this case, the advantage of Xie Group comes out, which is to use its experience and massive resources accumulated in the commercial real estate field over the past two decades to help others select sites, design, acquire land, and start construction.

After completion, he will be responsible for subsequent shopping mall operations, investment promotion, management, etc.

In short, it is like a contractor, letting others pay and the Xie Group will take care of everything!

And it also provides investors with "Qianda Plaza", the most well-known IP in the field of domestic commercial real estate!

Don’t underestimate this IP. Qianda Plaza in many domestic cities is synonymous with prosperity and can naturally bring traffic to shopping malls.

Not only does it bring customer flow, but it also has unique advantages in terms of brand entry!

The horror of Qianda Plaza can be seen from the fact that the average occupancy rate of shops in Qianda Plaza is over 98%, and there are basically very few vacant shops.

This asset-light model ultimately divides interests based on rent sharing.

The Xie Group can get 3, and the investors can get 7.

For investors, using this amount of money to become a hands-off shopkeeper is completely within the acceptable range.

The biggest benefit of being asset-light for Xie's Group is that the group's debt pressure will be greatly reduced.

Even after the complete transformation is completed, Xie Group will be able to transform from a real estate developer to a service-type company!

No more debt at all!

There is a steady stream of net income every year!

This model is very similar to consulting services, which relies on experience and resources to make money.

The cost is very low!

The risk is close to 0!

Based on this model, Xie's Group has fully developed in this direction.

Not only Qianda Plaza, but also "Qianda Cultural Tourism City", "Qianda Cinema", etc., almost all industries are already moving closer to the light asset model!

"This investment is almost tailor-made for our Xie Group..." After recovering his thoughts, Xie Jianlin couldn't help but murmured.

At present, the new investments of Xie Group are operating according to the "asset-light" model.

But the Xie Group still has a lot of old assets!

Xie Jianlin has always had the idea of ​​​​selling them, but he had already sold those slightly worse assets at par or cheap when dealing with the debt crisis a few years ago!

What is left now are some high-quality assets. If the price is low, he does not want to sell them, but if the price is high, others cannot accept them!

"Dad, what do you mean?" Xie Qing didn't understand what Xie Jianlin said out of nowhere.

"It's nothing. I can't explain it to you for a while. I'll explain it to you in detail later." Xie Jianlin pursed his lips and said:

"Without further ado, now go and reply to the other party, we are willing to invest!"

"The specific details...."

"We will have an interview after I arrive in Sansha City!"

"Oh...ah?" Xie Qing responded first, then said in surprise at the end: "Dad, you want to come in person?"

"Yeah!" Xie Jianlin said solemnly:

"This project must be followed up in the name of Xie's Group!"