Rekindle 2003

Chapter 149 Speed!speed!Still speed!

"I personally have no grievances with Xiao Sun, and I still feel that if we grasp the rhythm well, Instant Speed ​​can become a very good company.

Sun Hongbing can also become a great entrepreneur.

So in 2001, I reminded him to control risks.

But Xiao Sun didn't listen, and now he has to pay the price for the miracle created by blind expansion..."

The TV screen was cut to another group of journalists, and Feng Lun of Wan Tong was also being interviewed.

"Shunchi and Wanke are not the same at all. This kind of dark horse is actually a black sheep that destroys the rules of competition in the industry..."

Just today, Changshan, the largest local real estate developer, launched a letter to the industry.

The proposal believes that Shun Chi disrupted the land order in Changshan, resulting in chaos and affecting Changshan's economic development, and proposed that the entire industry should jointly strangle Shun Chi.

Then, the reporter's interviews with major real estate companies were also exposed one by one.

The leaders of various enterprises have expressed their concerns about Shinchi under the leadership of Sun Hongbing, and they all believe that the rough management of Shunchi is not conducive to the normal and orderly development of the entire industry.

A pile of data about Blink's acquisition of land at high prices across the country was shown on TV.

Master Wang looked sad, "I did the calculations for Xiaosun, and Instant Chi used the bidding strategy of high land prices to conquer cities and land. As of June this year, Instant Chi's pre-paid land price has exceeded 6 billion yuan.

According to the rules, in the first quarter of next year, he will need to pay another 80 billion in advance.

From the perspective of capital flow, unless there is a strong consortium...

Banks are not even possible, he did not pay enough for the land, and the development loan cannot be issued.

It can only be backed by the consortium, otherwise it is impossible for him to deliver the land price on time.

Therefore, under the premise of excluding the backing of the consortium, Xiao Sun can only go to the local game to pay the deadline.

This will undoubtedly cause great damage to the market rules and local credibility of the entire industry. "

"This station believes that due to the national real estate market, especially the real estate market in major eastern coastal cities has been heating up since the beginning of this year, housing prices have continued to rise, causing a large number of ordinary residents to be unable to afford houses.

It directly affects the improvement of housing conditions of urban households, and also affects financial security and social stability.

The rapid rise of housing prices has become a common accusation, and the overheating of real estate has directly driven the prices of production materials to rise sharply, and the macro economy is facing a new overall overheating.

There is no doubt that Instant Real Estate, known as the 'sky-high price maker', is one of the important promoters of this round of excessive housing price rise..."

The voice from the TV made Sun Hongbing clenched his fists in anger.

This is a blatant display of strangulation.

At this time, Master Wang, after forbearance for a few days, tried to see him poorly, and called him out to attack.

The filming of several plots started at the same time, and the tempo was manipulated to win the bid at the same time, leaving him with no time to react.

But it's not impossible to crack.

What is the capital flow supported by?
Sun Hongbing knew very well, and the sales funds were withdrawn.

The problem now is that relying on the funds collected from the sales of the Jinmen real estate project is not enough to support the land payment that needs to be handed over.

He had intended to take a risky gamble.

Bet on the local government's attitude when collecting land payments.

Part of the payment was delayed for another year. Although there were complaints from the local government, the payment was collected in the end, so it was easy to explain.

As for the account period, at worst, I will pay some interest on my own.

However, Master Wang's speech in the interview directly hit his fatal spot, exposing all this to the public's view.

Now, which place dares to give him the 'account period'?
It is already benevolent enough not to rush to death.

At this moment, Qin Tianchuan opened his eyes, asked someone to turn off the TV, and then said slowly, "Xiao Sun, it's really unwise for you to touch Master Porcelain."

Sun Hongbing could only smile wryly when he heard the words, "I thought that I was in agreement with him in terms of non-market forces."

At this moment, if he didn't understand that it was Zhi Liu who stabbed him, he would be an idiot.

But he has nothing to say, who made him talk cheap after drinking.

Qin Tianchuan chuckled, "Unless he gets a divorce."

Hearing this, Sun Hongbing wanted to laugh, but after glancing at Qingyun next to him, he couldn't laugh anymore.

Before he came, he had done enough homework. He knew Qing Yun's identity, and also knew that the reason why Qin Tianchuan appeared in Huating was because he was taking his precious son-in-law to play the "Traveling Thousand Miles" nurturing game.

If he had married Zhiliu's niece...

Sun Hongbing shook his head, his face returned to normal, and he said sincerely,

"Mr. Qin, I need your help, about 30 billion yuan, and you can hold as much as you want.

Give me a year and I can get past this. "

Qin Tianchuan was a little surprised when he heard the words, "One year?"

Although he is not involved in the real estate industry, the second and third children of his family have businesses in this area.

He is very clear that it generally takes at least one year of development cycle from land acquisition to planning and design to opening for sale, and it will take about half a year after the sale is completed.

Faced with Qin Tianchuan's question, Sun Hongbing seemed to have regained his previous self-confidence,

"Mr. Qin, actually... real estate is not a high-end industry."

He suddenly laughed, and pointed to Qing Yun beside him,

"If your son-in-law wants to be in this industry, he will definitely become the leader of this industry."

Nodding to Qing Yun, who was putting on a humble expression, Sun Hongbing sighed,
"Actually, this industry is just a math game.

Qin Dong, Xiaoqing, its essence is very simple, it is a formula. "

After looking for the waiter to take the pen and paper, Sun Hongbing began to make gestures, "The net cash flow of a real estate depends on the three modules of 'land purchase', 'construction cycle' and 'project sales'.

The net cash flow of a real estate company depends on the sum of the net cash flows of each real estate in hand.

In other words, the speed at which the net cash flows of various real estate projects are aggregated together is a decisive factor in the annual profit of a real estate company within a specified period.

In fact, the profitability of a real estate company is equivalent to the speed of the three modules of 'land purchase', 'construction cycle' and 'project sales'. "

Seeing that Sun Hongbing led the conversation just now, Qing Yun also asked out the doubts in his heart,

"That is to say, Mr. Sun, do you think that the variable speed in the formula is the decisive factor in determining the profit of this industry?"

Sun Hongbing smiled and nodded, "Yes, I know, many people say it is the utilization rate of leverage.

But leverage is the same in the entire industry, and there are only so many channels to obtain loans.

Speed ​​is the only answer in this industry. "

At this time, Sun Hongbing was actually quite grateful for Qing Yun's question.

Sun Hongbing himself was considered a big boss, he knew very well how precious the big boss's time was, and Qing Yun's question bought him time.

He knew in his heart how much Qin Tianchuan valued this son-in-law, so he simply explained his doubts in detail, and by the way, explained his business philosophy to Qin Tianchuan in detail.

"The most important strategic point of Instantaneous is to strictly control cash flow and maximize the efficiency of the use of limited funds."

He pointed to the three major sections he listed, "When it comes to purchasing land, I never negotiate with local governments to obtain land, and all my land is obtained through auctions.

And I only take raw land, and these lands are all on the edge of the city or in the planned new center.

The raw land is often not favored by local developers who focus on short-term benefits, the competition is relatively low, and there is potential for future appreciation, and basically there is no legacy of demolition.

This ensures that the land I get does not need to go through the land consolidation stage, which saves me half a year of time.

Because it is a raw land, I also have the confidence to play games with the local people later. If I don't develop it for a long time, they will be anxious. "

After receiving the smoke from Qin Tianchuan, Sun Hongbing smiled inwardly.

In this small game, he won the bet.

Qin Tianchuan really treated this son-in-law very well.

"The second is the speed of the construction cycle. In this, I shortened the opening cycle that usually takes 1-2 years to 6 months."

Speaking of this, he smiled lightly, "In September last year, Shinchi took pictures of a 9-square-meter plot in Tanggu District, Jinmen City. It only took me two months from entering the site for construction to opening for sale."

Hearing this, Qin Tianchuan was stunned, and asked in surprise, "Xiao Sun, how did you do it?
According to the pre-sale method, the funds invested in development and construction must reach more than 25% of the total investment in project construction to obtain a pre-sale certificate. "

He didn't even count the time for obtaining the construction project planning permit and construction permit. Sun Hongbing's operation of obtaining the pre-sale permit in the past two months is too frighteningly extreme.

Sun Hongbing said slowly, "Director Qin, the gross profit margin of general construction companies is approved to be 8%-20% according to the building code, but in fact it is basically around 8%.

I promise to give them 20%, but require them to enter the market with full capital.The money is paid by them, and the capital cost is theirs, so they are the ones who care most about the initial construction period. "

Qing Yun laughed out of surprise upon hearing this.

He suddenly remembered the youth idol drama called "Struggle" a few years later.

That's how Mi Lai, the air-tight padded jacket, helped Lu Tao, letting her father, a builder, bring money into the venue.

Sun Hongbing smiled, "Of course, the project in Jinmen is accidental.

This plot itself has a certain nature of tasks, so under the right time, place and people, I did it for two months.

However, the projects of Instantaneous in various places all take 6 months as the latest opening period.

The time for planning and construction is shortened, which greatly increases the profitability of Instant Chi.

Especially in the so-called third-tier cities, such as Jingzhou and Yuci, I only need to invest tens of millions to buy land.

The money will be collected after 4-6 months. Generally, I will recover all the costs on the day of the opening, and the rest will be profits, and the liquidation will be completed within 3 months. "

Speaking of this, he 'explained' to Qing Yun more patiently,

"Shun Chi's business model lies in 'shortening the cycle from cash to cash'.

Cash flow reflects a developer's actual combat capabilities. In order to comply with the national strategy of Instant Chi, my budget has been adjusted from half a year to months, and now it is shortened to weeks.

In terms of fund management, I even took the day as the unit.

The start time of each project, payment collection, and cash dispatch are all in days, and there should be no excuse for delay at any time point.

All business development is carried out around cash flow, and the whole company allocates funds uniformly.

This is internal control, and externally, I decide whether to choose a piece of land, one is to consider the low price, and the other is to look at the pros and cons of the payment method.

After taking the land plot, I will try my best to negotiate with the local government to reduce the down payment ratio and prolong the settlement period. If there is room for flexibility in this respect, I would rather increase the purchase price of the land.

This is not prodigal, but my long-term optimism for the entire real estate industry, using immediate benefits in exchange for time.

Because no matter how I bought it, I always bought it at a cheap time during the subsequent rapid rise in land prices.

At the same time, because of my presence, the place will be very welcome, because I also indirectly raised the starting price of the next piece of land around. "

After that, he smiled, "Of course, I also admit that it's because my stall is too big and I'm too short of money."

Then he winked at Qingyun, pointed to the formula, "But I believe you will understand."

Qing Yun nodded, not knowing whether to laugh or cry, "Mr. Sun, you are really doing math problems, constantly seeking the limit."

Sun Hongbing is also a top student. At the age of 15, he was admitted to Wuhan University majoring in water conservancy (Wuhan Institute of Water Conservancy and Electric Power). At the age of 21, when many people have not yet graduated from university, he obtained a master's degree in engineering from Huaqing University.

The reason why he didn't continue reading was simply because he was dissatisfied with the voting results of a certain century project and thought that academia was too useless.

"Yes, it is to constantly seek the limit, and the formula is here.

The essence of real estate is speed, the speed of cash flow, a number game about speed, constantly challenging the safety boundary.

It's just that I didn't grasp this balance well, so today's dilemma has arisen. "

Sun Hongbing answered very frankly, and did not hide the reasons why he was in trouble.

When Qing Yun heard the words, she understood in her heart.

If only in terms of strategy itself, Sun Hongbing is undoubtedly a genius.

He saw through the soaring characteristics of the real estate industry at a glance, and then achieved the greatest success with the fastest speed and the most scientific and compact strategy.

In 2001, the annual sales of Instant Chi was only 8 million, and the annual sales of Wanke, the industry overlord, were 45 billion.

In 2003, the annual sales of Instant Chi was 45 billion, while Wanke, the industry leader, was 63 billion.

In 2004, the annual sales of Instant Chi reached 100 billion, which was the sum of Wanke and Futura.

But Master Wang at that time was not panicking at all.

In this year, the instant crisis broke out in an all-round way.

Because, this is the end of failure that a discerning person can see at a glance, without any technical content.

The brilliance of Instantaneous in 2004 was just dying, because as early as July 2003, Instantaneous' cash flow equation had no positive solution.

With the superimposed calculation of negative numbers and rapid turnover, the fund pool will soon be exhausted.

Instantly's industry first is a tragic climb to the top.

Qing Yun picked up a pen and began to calculate on paper.

It's not complicated. Under the few parameters given by Sun Hongbing, the required funds will come out soon.

"29.6 billion."

Sun Hongbing nodded, "It's not too bad, I think it needs about 30 billion, and I can pass this test."

Qin Tianchuan understood, that is to say, Sun Hongbing believes that at this moment, Shunchi will terminate all land acquisition plans. With the support of sufficient funds, he is sure to complete the development and sales of all the real estate in his hand within one year. .

Instantly, it will naturally come back to life.

Qin Tianchuan shook his head, "But it doesn't make sense for me to do this.

In this way, once you pay back my money after one year, you will only have a few hundred million in cash left in your hands.

Of course, compared to 2000, when you had less than 1 million cash in hand, the growth is very fast.

But the core competitiveness of real estate companies is land, not cash.

Only cash is equivalent to liquidating the company and starting over.

Not to mention your delayed development time and hundreds of millions of cash, according to the land price trend you just calculated, you can't even afford land in first-tier cities. "

Sun Hongbing shrugged his shoulders, "So I suggest that you increase your capital and invest in the shares. As long as Mr. Qin keeps your funds in it, I will have the money to continue to acquire the land after one year."

Qing Yun smiled, "Mr. Sun, you are not being kind. In fact, if Hopu's funds are not withdrawn, you don't need to stop taking land at all."

He tapped the paper on the table, "Once my dad's funds come in, there are still 9 months left between now and the payment deadline at the end of the first quarter of next year.

You only need to continue to acquire land for development in third-tier cities. According to your speed, you can roll two rounds, which is enough to pay for the land.

I have calculated that it is completely enough, 30 billion, enough to keep you from being affected by this crisis. "

At this time, Sun Hongbing regretted writing out the formula.

I am most annoyed by this kind of student who does not use scratch paper to do mental calculations.

He sighed, and argued for himself, "But Director Qin doesn't suffer a loss, it's the equity, and he can enjoy the profits made by Shun Chi in proportion."

Before Qin Tianchuan could express his opinion, Qing Yun said softly, "But, Mr. Sun, how do you explain the company 'Rongchuang' that was just established some time ago?

This company, which is under your actual control after the equity penetration, has exactly the same business scope as Instant Chi, and...

Exactly the same subsidiary structure.

Wherever Shinchi has projects, Rongchuang also has project companies and property management companies.

Mr. Sun, your actions are a bit intriguing. "

Sun Hongbing was dumbfounded when he heard this.

This is the spare tire company he established. It is very secretive, even most of the subordinates in his company don't know about it, but Qin Tianchuan Weng, who is far away in Jincheng, knows about it.

There are traitors!
There must be traitors!

Thinking of this, Sun Hongbing suddenly trembled in his heart. The two husbands and sons-in-law must have taken a fancy to my fat meat a long time ago!

"Director Qin, President Xiaoqing, listen to my explanation, this is a misunderstanding! A huge misunderstanding!"

Hearing that Sun Hongbing began to call himself 'President Xiao Qing', Qing Yun secretly laughed.

I'm afraid this is the first person in the business world to call himself that.

I really want to take a photo together.

"I established Rongchuang entirely because I am planning to go public now.

The sponsor believed that I had been imprisoned, which constituted a substantial obstacle to the listing, and asked me to withdraw from the management of Instant Chi, and the shareholding ratio should also be reduced.

Therefore, I have to leave a way out for myself, after all, there are risks in proxy holding. "

Qin Tianchuan nodded, expressing his understanding.

Sometimes, that's the way the listing process is fucked up.

Requiring the founders of a company to step down from company management in order to go public is an idiotic idea.

Well, that's what the guidelines require.

People who have served prison records are not allowed to serve as the management of listed companies.

(End of this chapter)