In late August, New Era Real Estate successfully raised 120 million yuan through a rights issue, instantly becoming a powerful company.
The current total share capital of the company is 10,000 shares, the stock price is HK$2.05, and the total market value is 796 million;
Lin Zuhui holds 10,000 shares, accounting for 34.8% of the shares, with a market value of 277 million.
But Lin Zuhui was worried. He had stocks but no cash, and his personal cash flow was only 13 million.
Moreover, he is still personally in debt of 50 million, of which 30 million is owed to Wang Qilin (10 million was borrowed for speculation on Wheelock and 20 million for New Era Real Estate), and 10 million was borrowed from the bank as a mortgage on "GOOD" magazine (for the first repayment).
shares), the party owes 10 million yuan (7 million borrowed for capital injection, 3 million borrowed for movie investment).
This is the consequence of the snake swallowing the whale. If something happens to New Era Real Estate, Lin Zuhui will be forced by debt to marry into the Wang family.
It is definitely not possible to have only 13 million in cash on hand, because Wanhui Publishing House needs to be listed through a reverse merger, and Lin Zuhui needs a sum of money to buy the shell.
The publisher does have money in its account, but it is actually a drop in the bucket, and the funds will have to wait until before the listing, and then be used to pay off debts; the film company cannot count on the box office. It will be released on September 15, and it is unknown how much it will be divided.
And the funds may also be needed to repay debts.
Soon, Lin Zuhui seemed to remember something and took out a piece of information from the drawer to study it.
After a while, he made another call.
"Manager Li, can you describe the price trend of USD/JPY in the past week to me?"
"Okay, thank you!"
After making the call, Lin Zuhui quickly filled in the trend of USD/JPY in recent days on paper, and then started studying it.
Soon, he found an opportunity!
At the end of February, he used 11 million Hong Kong dollars to short-sell USD/JPY with 50 times leverage. At that time, the average buying point was 261.5. After half a year of decline, it only fell by 24.5, and the current price is 237.
In other words, his market value is already HK$55 million, and he has made a huge profit of more than 40 million.
Of course, he will not withdraw this money, it will be the foundation for his career next year.
The reason why Lin Zuhui said he had an opportunity was because he clearly remembered that at the end of 1985, the exchange rate of US dollars/person was about 200 points.
Now, there are still a little more than 4 months before the end of 1985, and there has actually been a 37-point decline during this period.
If he uses part of his stock as collateral and allocates a sum of funds to continue short selling, he may be able to obtain a large amount of funds at the end of the year.
He calculated it on paper:
The highest point of USD/JPY in recent decades is 262 points. This is ironclad data and cannot be changed just because of tens of millions of funds.
Currently, USD/JPY points are 237 points. If the leverage is 10 times, if it suddenly rises to 260 points, he will be liquidated; but obviously, that is impossible. He remembers that there is no such huge fluctuation, and there is no such thing.
It is in line with the market rules of the appreciation of the yen.
Think about it, in four months, it rose from 237 points to 260 points, and then fell to 200 points; with this trend, even the American consortium would have difficulty achieving it.
Yes, I can mortgage up to 30 million shares of New Era Real Estate stock. If I use a loan rate of 70% (New Era Real Estate stock value preservation), I can get a loan of 42 million; I can raise another 8 million and use 50 million to short-sell with ten times leverage.
.
At the end of the year, with this amount of money alone, I may be able to obtain a net profit of 80 million yuan.
As for risk, zero risk!
(PS: At this time, the protagonist has not yet remembered that the "Plaza Accord" will be signed in late September, but he remembered it later and made additional investment.)
No fool and predator would raise the USD/JPY to 260 points for 50 million, and the cost would probably be 500 billion.
Even if Lin Zuhui loses 50 million in capital, it will not be fatal; he still owns 105 million shares of New Era Real Estate shares, accounting for 27% of the total share capital; Wang Qilin holds 13% of the shares, and the two together account for 40%. This is absolutely safe.
Moreover, bank mortgages will not sell the stocks to others. They only need to ensure that the stock price of New Era Real Estate does not fall and sell part of it.
Done!
Three days later, Lin Zuhui appeared in the foreign exchange department of HSBC Bank.
Li Hongming received him warmly. He was truly the God of Wealth. The original investment of 11 million has turned into more than 50 million. If this spreads, Xiangjiang will probably praise this young man to the sky.
Lin Zuhui first checked the market price of USD/JPY and found that it actually increased by 1.2 points and is currently 238.2 points; the three-day loan period actually allowed him to earn 1 point more.
After Lin Zuhui explained his purpose, Li Hongming was not as surprised as before. After all, the young man in front of him controlled a listed real estate company with a market value of nearly 800 million, and a publishing house with an annual profit of tens of millions.
A deposit of 50 million and a leverage of 10 times is only HK$500 million, so no one will deliberately attack you.
The next step is to go through the formalities. Lin Zuhui entrusted HSBC to buy a short order above 236 points.
Three days later, Lin Zuhui went to HSBC Bank to get the delivery order, which was actually at an average price of 238 points. This simply made Lin Zuhui invincible.
Of course, this rise does not rule out rising to more than 240 points. Lin Zuhui is not worried because his liquidation point is 261.5.
...
Friday, August 30th.
Lin Zuhui and Liang Zhenxun drove to the island's auction house. Today was the first official land auction in 1985, and New Era Real Estate naturally did not want to miss it.
In April this year, the Hong Kong government launched the "Golden Bell Land King" auction with the aim of boosting Hong Kong's real estate industry. However, the auction only involved one "Golden Bell Land King" auction, and the Hong Kong government did not offer the rest.
Crown land auction.
This time, it is called this year’s ‘first official land auction’ because a full 19 pieces of official land were put up for auction.
The overall quality of official land is definitely better than the land circulating in the market, and the area is larger, so powerful real estate developers will not miss it; as for some small real estate developers, naturally they rarely participate.
Of course, New Era Real Estate is still a small real estate company, but Lin Zuhui insisted on participating and specially prepared 70 million yuan of funds, which was the remaining 120 million yuan raised in late August.
In the car, Lin Zuhui warned: "The price of high-end residential land on this island is currently around 700 yuan per square foot. Today, any land of around 100,000 square feet is our goal. My strategy is to assume that there are 3 sites worth 70,000 yuan per square foot."
For land ranging from square feet to 120,000 square feet, I, a "silly young man," will bid for it. I will pretend to be a big spender, shout out a high price for the first piece of land, and throw it to him when the other person is not paying attention.
Pretend to be pity again. In this way, we have more room to maneuver in the two plots of land at the back. After all, although those real estate developers are rich, they may not be able to compete with a stupid young man like me. In the end, we have to
Got ripped off at auction!"
Liang Zhenxun nodded and said: "The boss is not a fool, but he increased the market value of New Era Real Estate more than 10 times in only half a year. Such people must be arrogant in the eyes of outsiders. They may even
I think you are angry, boss, so it is possible that you are afraid. I think this strategy is feasible!"
Although Lin Zuhui has just entered the real estate industry, he is also proud and wants to develop a medium-sized real estate to improve the company's morale and overall quality.
A land of 100,000 square feet, calculated based on a plot ratio of 3.5 times (maybe higher), would result in a floor area of 350,000 square feet. If the property is sold off-plan in the second half of next year, the price of residential property on the island will probably be around 900 yuan per square foot.
It can be sold for 320 million. According to the two-year construction period, the land fee is 70 million, the construction fee is 80 million, and the tax is 30 million. The annual profit of more than 30% is quite cost-effective.
The plot ratio can still be increased, the selling price may also increase, and a profit of 40% per year is possible!
Of course, even 20% of the annual profit can be made. Anyway, the real estate company only needs to pay a land purchase fee, and the rest of the funds will be provided through bank loans and off-plan property sales.
The important thing is that after developing such a property, New Era Real Estate is equivalent to stepping into a medium-sized real estate company. After all, with a floor area of 350,000 square feet, it can fully accommodate a community of six to seven hundred residential units.
Although New Era Real Estate only has RMB 60-70 million in liquidity, there is no need to worry about not being able to pay for land worth RMB 70-80 million. Banks are willing to lend money. After all, after raising RMB 120 million last time, New Era Real Estate's debt ratio has been reduced.