Chapter 065 [Im interested in your interest, but youre interested in my principal?
Hua Yongming started talking about business. Fang Hong was surprised to hear what he said and said with a smile: "... Taking my personal profitability of 300 million per year as the base value, I pledged the beneficial rights for the next 33 years.
Pay an annual interest rate of 36% to purchase 10 billion in liquidity for me to control?”
It has to be said that Huayang Group has taken a big gamble this time. If Fang Hong succeeds, everyone will be happy. If it fails, Huayang Group will definitely be severely damaged, and it may not be able to recover in five to ten years.
Because if Fang Hong fails, it means that the expectations for his future beneficiary rights will be greatly reduced, locking him in for thirty-three years. If he does not earn that much money every year, he will actually earn less than 300 million per year, just 30 million.
, then even if you lock it in for a lifetime, you still won’t be able to pay back the money.
This is also the biggest potential risk Huayang Group has to bear, so it’s no wonder it charges such a high interest rate.
Hua Yu explained to Fang Hong, and he nodded and said: "Yes, this is what my father meant. As long as you nod your head to approve the plan, my father at Huayang Group will immediately go all out to buy you this 100
Hundreds of millions."
Fang Hong smiled calmly and said: "At my current age, the old man can play so aggressively and with such courage, which is comparable to stud. If a young man like me is timid, will I still have the spirit of a young man? I will follow."
There is no reason not to follow.
As long as you can control liquidity in your hands, you will make money!
The essence of finance is to borrow money. Once you borrow the money, you win half of it first. Once you borrow the money, you are short-handed, and then the money makes money.
Although the capital cost brought by the annual interest rate of 36% is indeed very high, and he would definitely not take it under normal circumstances, Fang Hong is 200% sure that he will earn several times as much if he dares to take it, even if he can double his income in a year.
The profit rate is 10 billion yuan, minus the capital cost, and the net income is 6.4 billion yuan.
If we don’t borrow this money, we will indeed not have to pay the capital cost of 3.6 billion, but the net income of 6.4 billion will also be gone.
Fang Hong was 100% sure of making a profit. Even if Hua Yongming offered 50% annual interest, as long as he was willing to borrow money, he would still receive it. The more he borrowed, the more he would earn. There was no reason not to accept it.
In short, the more the merrier.
What's more, Fang Hong actually didn't plan to borrow for five years at all. In fact, he borrowed for nine months, with an annual interest rate of 36% and a monthly interest rate of 3%. The capital cost for nine months was 27%, which is 2.7 billion.
After a while, Fang Hong suddenly said: "But I also have a plan. Let me see if I can consider it?"
Hua Yu glanced at him in surprise and said, "Please tell me."
Fang Hong smiled methodically: "My plan is, if my profit more than doubles in the next year, how about converting the funds from Huayang Group with interest into the equity of Qunxing Capital?"
As soon as these words came out, Hua Yu was stunned on the spot, and he called him a good guy in his heart.
My Hua family is only interested in your Fang Hong’s interest, but you, Fang Hong, are also interested in my Hua family’s principal?
Fang Hong indeed borrowed the money and didn't want to pay it back, so he directly performed a debt-for-equity swap operation.
Hua Yu, who was stunned for a while, reacted and said: "I can't make the decision on this matter, but I want to know, if the debt is swapped for equity, how much equity in Qunxing can I get for 13.6 billion?"
Fang Hongyan said succinctly and comprehensively: "The ratio of share conversion is 5%."
Hua Yu looked at the other party in astonishment: "What? With 13.6 billion yuan including principal and interest, you can only get 5% of the equity by converting shares?"
While saying this, Hua Yu called Fang Hong in his heart, are you crazy?
Fang Hong didn't know what the other party was thinking. He said calmly with a smile: "Brother Hua, this is still a friendship price. When Qunxing's performance comes out in a year, the valuation will not be the current 20 billion, but
300 billion, 13.6 billion converted into shares for 5%, but the valuation is based on 272 billion. If it had been anyone else, if the expectation had been fulfilled one year later, the 13.6 billion would not have been able to get 5%."
At this time, Hua Yu was speechless when he heard these words. According to what he meant, Huayang Group had taken advantage of him.
Hua Yu couldn't help but said: "Brother Fang, the valuation of Qunxing is not 300 billion just because you said it will be worth 300 billion in one year. The market has the final say."
Hearing this, Fang Hong shrugged indifferently and said: "Whatever, I don't care how the market values it, it won't affect the true value of Qunxing."
Hua Yu really couldn't understand why?
This is 300 billion, not 30 million. How can Qunxing Capital be worth 300 billion a year later?
Fang Hong added: "When the market gives Qunxing a valuation of RMB 300 billion, it also means that the price of RMB 13.6 billion cannot buy 5% of the equity. This will test the vision of decision makers in discovering value."
After saying that, Fang Hong paused, looked at Hua Yu and said with a smile: "Just like Qun Xing when he met Mr. Hua half a month ago, 1 billion can get 5% of the equity, but now half a month later
, you can’t even get 1% of the same 1 billion.”
Hua Yu did not retort verbally, which was indeed the case, because Fang Hong only took half a month to prove his value, which reflected that the company he led, Qunxing Capital, was even more valuable.
Hua Yu also knew the meaning conveyed by Fang Hong's words, which was to be one step ahead of others, to discover value first in the market, and then to get richer returns by taking action first.
When everyone discovers value, the best time window for intervention has been missed. At this time, it is more appropriate to realize the expected value rather than discover the value.
At the end, Hua Yu looked at Fang Hong and said with a teasing smile: "Brother Fang, you are very good at deceiving, especially the confidence and calmness you show. It's hard to control, at least I can't.
allow."
"Hahaha..." Fang Hong laughed loudly and said immediately: "There's no rush, I'm just giving you an expectation in advance. I still have a year to give Huayang full consideration. It won't be too late to make a decision then.
.Also, my previous commitment remains unchanged. If you get 10 billion yuan of liquidity for me within the year, you will get 1% of Qunxing’s equity."
In this regard, Hua Yu was naturally unambiguous and would not refuse.
A 1% stake in Qunxing Capital is worth 200 million based on the current valuation, and Hua Yu knows that it will definitely be worth more in the future.
The two chatted for a while, and then Fang Hong left the company.
Once we get this 10 billion yuan of liquidity, we will immediately use the core assets of Big A, and then carry out circular pledges of stocks, and use this 10 billion yuan to frontload 11.6 billion yuan of liquidity, just like before
One idea for the 1 billion pledge operation.
For the next 2009, Fang Hong has already calculated the expected return for Qunxing Capital. About 37.9 billion is considered to be the target, excluding the capital cost of 2.7 billion generated by Huayang Group, and excluding the 8% generated by the circular pledge of stocks.
The annual interest cost is estimated to be approximately 1 billion per year.
That is to say, the total capital cost is 3.7 billion, 37.9 billion minus 3.7 billion, and the expected net profit is 34.2 billion. This basically means that Fang Hong started from raising 1 billion from Huayang Group, leaving everyone with nothing.
the result of.
Use other people's money to make money for yourself, and finally generate an expectation of 34.2 billion.
…
That night, Hua Yu made a detailed report to his father Hua Yongming, and also explained Fang Hong's proposed plan in detail.
"Haha..." Hua Yongming couldn't help but laugh after hearing his son's report: "This young man's huge appetite is really shocking!"
Hua Yu also lamented: "He is too confident. The subtle thing of confidence is sometimes... It even gave me an idea for a moment. If Huayang does not want 5% of Qunxing's equity in a year, it will choose 13.6 billion
of cash would be a huge decision mistake."
Standing in Hua Yu's field of vision, he saw Fang Hong as an extreme radical, even arrogant, but he had to admit that he had the capital to be arrogant, and time gradually proved that he was correct.
This time he predicted that the superiors would launch a plan to bring home appliances to the countryside to boost domestic demand and promote sales. Hua Yu also believed that it would not take long for him to be proven right or wrong.
Once or twice, it can be said that it was luck, and we happened to meet him!
But if he can accurately predict in advance every time, this kind of person is equivalent to dancing on the pulse of the times, and his value is immeasurable.
Hua Yongming played with the ring on his thumb and said with a smile: "He's right, there's no rush. He said we'll look at it in a year, so I'll look at it for half a year. Now I'll get him 10 billion, and then I'll talk about it."
Let’s see how fancy he can play.”
…
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