Zhang Yida glanced at Lin Zhenyang and confirmed again.
Lin Zhenyang nodded heavily, "According to reliable information, Zhongjiang Trust has defaulted on a large number of trust plans, and Tomorrow System itself has fallen into a quagmire. In the past two years, Tomorrow System has been cooperating with the country to deleverage and divest a large number of financial assets.
This time it’s Zhongjiang Trust’s turn, and all parties are eyeing this trust license.”
Speaking of Tomorrow Department, the bosses Xiao Jianhua, Zhang Yida, and Lin Zhenyang are all alumni, having graduated from Capital University.
Tomorrow Group was originally founded from scratch by a group of college graduates from Peking University Aoki, and even the registered company name had the word "Kingda" on it.
After more than 20 years of development, the Tomorrow Department has controlled and participated in 44 financial companies, involving banks, insurance, trusts, securities, funds, leasing, futures, etc., covering all licenses in the financial industry, and the assets of financial institutions it controls and participates in
The scale is as high as 3 trillion.
In addition, it is said that there are 4,000 shell companies, and even the middle-level managers of the company do not know which companies are under their own group.
Under the complicated ownership structure, a private financial holding group has its hands in more than 40 financial structures. It is not easy to make some small moves to improve performance.
Therefore, this private financial holding company was dismembered. After the boss was taken away from Hong Kong two years ago, he never appeared in the public eye again.
Zhang Yida thought for a while and asked: "Do you think it is appropriate for us to obtain a trust license?"
Lin Zhenyang was puzzled, wasn't it that you were always thinking about a full financial license from the beginning?
Now that the license is here, are you backing out again?
"If you have something to say, just say it. Do you want it or don't you want it?"
Zhang Yida shook his head, "I can't ask for Ruixiang, it's a bit eye-catching. I believe this thing will be worth billions if it explodes."
Putting it into Ruixiang is a time bomb. It also affects our technological content. If we are valued as a financial stock, we will be dumbfounded."
Lin Zhenyang pondered, it seems to be really useless, especially for the current Ruixiang.
Big guys who like to engage in capital operations and industry should prefer this license. Funds can flow to real estate, infrastructure, securities, bond investment, loans, venture capital and other fields.
"Okay, let's not join in the fun."
Zhang Yida nodded and said: "We don't want it, Yimin Wealth can be taken over."
Lin Zhenyang smiled and said: "That fits the business very well, and it can also have the effect of one plus one being greater than two."
Wealth management and trusts are both targeted at high-net-worth customers, and even wealth management institutions help trusts sell products on an agency basis.
Thinking of the size of Yimin Wealth, Lin Zhenyang asked one more question: "Can Yimin Wealth be eaten?"
"Just borrow some money."
After figuring this out, Zhang Yida dialed Ding Siyao's phone number.
"Would you like a big gift package?"
Ding Siyao didn't understand and asked, "Mr. Zhang, what did you say?"
"Do you want a trust license? Yimin Fortune will take control of a domestic trust company."
Yimin Fortune has developed very well in Southeast Asia, and Ding Siyao has also stayed in Singapore for a long time.
At this moment, she was sitting in her office in Singapore, looking at the distant coastline. After hearing the news on the phone, she felt a little excited.
For a company like them, it is their dream to have a license, and the most suitable license is a trust.
"Is this true? Which trust company?"
"Zhongjiang Trust's foundation is not very clean. You should go back to China first to find out."
Ding Siyao is no stranger to this company and has even helped them sell products.
"Okay, I'll book a flight right away."
…
After Ding Siyao returned to China, under Zhang Yida's instructions, he began to communicate and dialogue with the regulatory agency that hosted Zhongjiang Trust.
After the initial communication was completed and the situation of Zhongjiang Trust was thoroughly understood, Ding Siyao came back to report the situation to Zhang Yida.
“The predecessor of Zhongjiang Trust is Gan Province International Trust and Investment Company, which was established in June 1981. It has a history of 38 years and was renamed Zhongjiang Trust in 2012.
In 2016, Zhongjiang Trust achieved revenue of 3.616 billion yuan and net profit of 1.925 billion yuan, ranking 6th among 68 trust companies.
After the China Banking Regulatory Commission issued the "Notice on Regulating Banking and Trust Businesses" in 2017, Zhongjiang Trust's performance bubble was burst and its performance began to decline sharply.
Last year’s operating income was only 350 million yuan, a 63% drop from 2017, less than one-tenth of that in 2016, and ranked 55th among 68 trust companies;
Last year, Zhongjiang Trust achieved a net profit of 47 million yuan, a year-on-year decrease of 72.8% in 2017, ranking 59th among 68 trust companies in terms of net profit."
Zhang Yida nodded, his performance has plummeted thousands of miles.
My ranking in the trust company also fell from the top to the bottom. It was really like riding a rocket.
Why is this happening? All I have to do is ask the boss of tomorrow’s department.
To put it bluntly, it means lending money to listed companies that do not meet risk control standards, and using the money from buying trusts to help listed companies that are related to the Tomorrow Department have blood transfusions and extend their lives.
As for the fact that the performance is like this and it is still profitable, this should be because the risks have not fully exploded yet.
So Zhang Yida asked: "How many overdue trust plans are there?"
"Currently, there are more than 20 products that have been exposed by the media, including the Golden Crane series, the Golden Horse series, the Silver Elephant series and the Golden Dragon series, with a total amount of more than 5 billion yuan involved."
Ding Siyao said with a calm face, "But it's actually much more than that. The regulatory agency also revealed that 35 trust plans defaulted, involving an amount of 7.9 billion yuan."
Zhang Yida tapped his fingers on the table, what a mess!
But that’s normal. The business isn’t bad and it’s not his turn to take over.
"What does a regulatory agency mean? How to deal with these defaulting projects?"
Ding Siyao said lightly, "They want us to come in and calm things down. It's best to pay the investors the money first."
Zhang Yida looked up at the ceiling and said: "Nearly 8 billion, all of which we paid for? The abacus is really good. Are there any conditions attached?"
Ding Siyao smiled and said: "I can't hide anything from you. We are responsible for continuing to deal with these defaulted projects. We will recover whatever we can, and the difference will be deducted from the purchase price."
"That's nonsense. I'm not Comrade Lei Feng."
After speaking, Zhang Yida took a sip of tea, moistened his throat, and then asked: "What price did they offer?"
"15 billion, 71.3005% equity."
Zhang Yida calculated in his mind and immediately calculated a valuation of just over 21 billion.
Such a terrible mess can actually be valued at more than 20 billion.
There's no way around it. There are only 68 trust licensees, and the scarier they are, the more valuable they are.
Currently, there are only 15 companies controlled by private companies, including Anping Insurance and HNA, which are mixed state-owned, private and foreign-owned companies.
"It's a bit high!"
Zhang Yida sighed, looked at Ding Siyao, and asked, "Is it possible to negotiate a lower price?"
Ding Siyao shook his head, "It's a bit difficult because it's not just us, there are other companies joining the fight."
Zhang Yida nodded lightly. He was not surprised at all when a company came to compete for him.
It would be a real surprise if no one came to snatch it.
For some companies, having a trust license is like buying a cash machine.
And compared with P2P, this cash machine is not easy to depreciate in value because it has a license, and it is not easy to be suddenly banned.
Even if something goes wrong, you can still sell it to the next buyer, get back your original investment, and even make a small profit.
"What is the current management scale of Zhongjiang Trust?" Zhang Yida asked again.
Ding Siyao replied: "It's about 150 billion. If the default problem is not solved as soon as possible, the scale of management will drop a lot."
Zhang Yida nodded slightly, with this default rate, who would dare to invest? Risk control is worse than P2P.
Even if Yimin Wealth quickly solves the payment problem, investor confidence will not be restored in a short period of time.
If Yimin Wealth intends to acquire Zhongjiang Trust, it will not be able to recover quickly within a year or two.
It must be run as a long-term business, sort out the old accounts first, and then develop it step by step.