Chapter 490: Even the Third Generation of the Rich Has a Hard Time

Wansheng Real Estate acquired land worth more than 8 billion in one go, and its investment department continued to follow up on two old buildings and three pieces of land.

Real estate companies require a minimum down payment of 20% to buy land, and you can get a bank loan for the rest. According to Wansheng Real Estate’s financial report (listed company, financially transparent), this clearly exceeds their capital flow.

Father Hu was very puzzled and called Hu Zhifeng over to ask: "Part of the funds withdrawn by Wansheng Real Estate before the stock market crash was used to repay bank debts, with a capital flow of over one billion in the account. How did they spend so much money to buy land? "

Hu Zhifeng didn’t know either, and said: “I talked about this with Nie Zhan two weeks ago when we were playing golf. He said that there were not enough funds in the account, otherwise we could take the opportunity to hoard more land.”

But now that Wansheng Real Estate is making such a big move, it looks like it has no money. It's just that he has known Nie Zhan for more than ten years, so it is impossible to lie to him, and there is no need.

When Hu's father saw him, he didn't even know it, so he said, "Next month, I will bid for the land in Tsim Sha Tsui. You can invite him to have a meal and test his tone to see if he also wants to bid."

He also wanted to hoard more land, but the stock market crash caused the company's stock price to drop a lot, and he was also planning to buy back some of his shares. In addition, the company had already set its sights on the land in Tsim Sha Tsui, and the company still had to keep some working capital. It was impossible to hoard a large amount of land like Nie Zhan. And that is too risky. If the real estate fluctuates greatly, the monthly interest will be a big problem.

"good."

When Hu Zhifeng returned to his office, he called Nie Zhan and made an appointment to play golf on the weekend.

Nie Zhan said with a smile: "Do you have time tonight? I heard that Fulinmen has released some new dishes. Feng Qinglei went to try them and said they tasted very good. Can we go and eat them together tonight?"

Hu Zhifeng exclaimed and asked, "Are you going to eat tonight? You don't have to accompany Miss Lu tonight?"

Since Nie Zhan started dating, it has become difficult to date him. It was also because his wife had a good relationship with Lu Jiaxin and they all made appointments to get together, so they met more often.

Nie Zhan was a little surprised that he didn't know that Jia Xin was not in Hong Kong City. It seemed that Zong Shimeng had not contacted Jia Xin these days. He explained: "Jia Xin has something to do and has returned to the mainland. It will take some time before she comes back."

Only then did Hu Zhifeng understand why he had time to come out: "My Dabao fell down half a month ago and broke his foot; last week Xiaobao had a cold and fever. Both children are fine, but my sister-in-law is tired and sick again."

Nie Zhan said: "Jiaxin may have left in a hurry and forgot to tell my sister-in-law."

Hu Zhifeng laughed: "Maybe your sister-in-law forgot to tell me because she was busy. A-Zhan, would you like to call Tao Yong and Fu Ye?"

"Tao Yong is probably not in the mood right now, so he won't call anymore. Fu Ye has a fiancée, so let's not disturb him, lest his fiancée come over again and not be able to eat well," Nie Zhan said.

Lu Jiaxin didn't complain to him about what happened last time, and Nie Zhan, a grown man, wouldn't care about it. Unexpectedly, one time when they made an appointment to play tennis together, the woman came over and the two of them had a fight.

When the two of them were having dinner in the evening, Hu Zhifeng smiled and said that he had made such big moves recently: "Azhan, you still have the courage to take so much land in one go. I also want to hoard more land, but my dad said that would be too much." Risk declined.”

There was some depression in his words. He believed in Nie Zhan's judgment that the property market in Hong Kong City would continue to be hot, and he should take advantage of this opportunity to acquire more land, but his father refused because the company did not have that much cash flow. In fact, it's not that the company doesn't have so much cash flow, but that he doesn't want the company's debt ratio to be too high. For example, Nie Zhan Company's highest debt ratio reached 68%, and after paying off part of it, it still has 45%. However, their company's debt ratio has remained around 35%.

Because of Nie Zhan's boldness and aggressiveness, Wansheng Real Estate's market value more than tripled in two years, while their real estate company only increased by 40% in more than two years. If you continue, the distance will become wider.

Nie Zhan said: "My grandfather is also conservative. He opposed the two rights issues raised by the company the year before last and the year before last. He thought it was too aggressive. Fortunately, when I was asked to come back to take over the company, I proposed to transfer all the shares to my name. Come on. Otherwise, I will be constrained."

The shares are in his hands, so it's useless for the old man to object. The company will still follow the development policy he set. However, seeing that Wansheng Real Estate was developing so well and that he was also involved in hotels, jewelry and clothing, the old man completely let it go. In September this year, he stopped asking about the rights issue to raise funds.

Hu Zhifeng said with a smile: "Let's not talk about it. Ah Zhan, the government will auction the land in Tsim Sha Tsui next month. Do you want to participate in the bidding?"

Nie Zhan nodded and said: "Xinxin Real Estate will participate in the bidding, Wansheng Real Estate will not participate."

It’s not that I don’t want to participate, it’s that I have no money, and I don’t have the willpower to participate. Fortunately, Jiaxin has ample funds, so Xinxin Real Estate should be able to acquire this land.

Hu Zhifeng was stunned: "What did you say? Xinxin Real Estate participated in the bidding? Xinxin Real Estate is mainly in the rental business, and they do not have the ability to develop real estate."

Nie Zhan said with a smile: "Xinxin Real Estate won the land and then cooperated with Wansheng Real Estate to develop it."

Hu Zhifeng thought about what Nie Zhan said before, and he suddenly understood: "Miss Lu told Shimeng before that she made 79 million in the stock market, is it more than this amount?"

Lu Jiaxin's net worth is in several companies, and her cash flow is one or two billion, which is not bad. With such a big deal now, it is only possible to make a lot of money in the stock market like Su Heyuan.

Naturally, Nie Zhan would not undermine Jiaxin: "She earned this amount by buying stocks, but she used the stocks of several companies and Wansheng Real Estate as mortgage loans, and used the money to short-sell the Hang Seng Index."

Hu Zhifeng is also a person who has seen the world, but he was still shocked when he heard the news: "Shorting the Hang Seng Index? That, that's a huge profit."

"Yes, it's more than four times."

Hu Zhifeng's mentality is a little unstable. More than four times, even if the mortgage loan is 400 or 500 million, it's still a profit of 2 billion. With such a large cash flow, it's no wonder that a large amount of land can be purchased.

Fortunately, he is also a third-generation rich man, and he has experienced many ups and downs. Hu Zhifeng quickly calmed down and said with a smile: "Ah Zhan, you didn't tell me about such a big thing?"

Nie Zhan said helplessly: "I strongly opposed her doing this, but she insisted on buying it without listening to me. There is nothing I can do."

"You don't agree?"

Nie Zhan said that he didn't buy a penny: "I have prepared the money. When she goes bankrupt and loses all her money, I will redeem the shares of Wansheng Real Estate."

Hu Zhifeng reacted: "So, He Yuan bought it with Lu Jiaxin?"

Nie Zhan didn't hide it from him and said: "Su Heyuan thinks Jiaxin is lucky in wealth, so he buys everything with her. Last time, he also bought foreign exchange with her. But Jiaxin bought it according to my advice that time. This time she wants to gamble by herself. Fortunately, she promised not to be so impulsive in the future."