Volume 8 Final Chapter Chapter 1187 Operation Codename "Justice, 555"
It's just a joke to let Ai Jia be the villain. How can the Nan family be the villain? Besides, the plan against Guangyu Electric Appliances is more complicated. Ai Jia only needs to do a few links in it. She is not qualified to be the leader of the villain.
Since 1987, Nan Yi saw the Huang brothers transporting parallel-goods goods at the Tianzi Wharf in Guangzhou and started to pay attention to the brothers. At that time, he felt that the brothers were not rule-abiding people. They could not even abide by the illegal rules of Yifa to pull orders, so it was unlikely that they would honestly abide by the national laws that were not conducive to business development.
[Ladan was a jargon for business at the time, so just understand it as smuggling. The real meaning cannot be explained, and if it is explained, you readers probably won’t see it.]
Speaking of starting a business, it was not easy for Jingxi Yiguo. Nan Yi only gave Liuzi the start-up capital and the supply channels summarized by contacting the sources of goods before Yaqing Company opened. It is called a channel, but it is actually a list. Liuzi can carry out public relations according to the names on the list.
At the beginning, the electrical appliances sold by Jingxi Yiguo were mainly domestically produced, supplemented by appliances confiscated by customs and brought back to China for transfer by some overseas Chinese or people going abroad who were permitted by policies. At that time, there were two overseas Chinese purchasing stations in Dongdan and Dashilan, and all the foreign electronic goods collected there fell into Liuzi's hands.
After the goods were marked up layer by layer, by the time they reached Liuzi, the cost price was almost as high as the selling price of others. In addition, the "paying taxes according to law" that Nan Yi regarded as a tight restriction, the profit of Jingxi Yiguo selling foreign goods at that time was very meager compared with its peers.
Jingxi Yiguo entered the era of small profits from the very beginning. In order to maintain profits, it would not offer discounts and promotions too frequently, and it would often have to go to manufacturers to cry and beg them to leave more profit margins.
It can be said that Jingxi Yiguo has taken the most difficult path of development. The speed of original capital accumulation is less than one thirtieth of that of its competitors. If it were not for Nan Yi's continuous support and the considerable profit from stocks that year that stabilized the morale of the six competitors, Jingxi Yiguo might have collapsed halfway.
In comparison, Guangyu Electric Appliances developed later than Jingxi Yiguo, and its starting capital was incomparable. The initial investment totaled 30,000 yuan, but the sources were quite complicated, including borrowing and loans. Although the funds were small, the utilization rate and the value generated were very high. With good speaking skills and a deposit, Guangyu Electric Appliances bought a batch of goods on credit from Yifa and sold them after a while. The amount of funds immediately exceeded 100,000 yuan.
After five or six transfers, the smart Huang brothers had already thought of removing the water that was easy to get out of the product so as to prevent the middlemen from making a profit from the price difference.
Obviously they did not succeed. After two or three attempts by water, they were suppressed by Yifa. The two brothers suffered a bit, but they could still continue to get goods from Yifa and did not delay the development of Guangyu Electric.
In the years when Japanese electrical appliances were selling well, relying on the huge profit margins, Guangyu Electric Appliances came up with many popular "innovations" in its operations, making huge profits day by day, and its scale continued to expand like a balloon, with branches opening one after another.
From scraping together 30,000 yuan to a fortune of over 100 million yuan, the price Huang Guomei paid was just spending half a year in a detention center for smuggling and tax evasion. The price can be said to be very light.
In 1993, the two Huang brothers, who had already become wealthy, separated. The elder brother Huang Guoliang left Guangyu Electric and plunged into real estate, establishing the Dahuang Group. The younger brother Huang Guomei, relying on Guangyu Electric, also launched diversified operations, including electrical appliance retail, real estate, and other miscellaneous businesses. He would do anything as long as he could make money. With this, he formed the Xiaohuang Group and parroted the business philosophy of "no boundaries for businessmen".
If we talk about the "big brother" of the domestic business world, only banks are the ones. No matter if the richest man, the second richest, the third richest, the fourth richest, the fifth richest, the sixth richest, the eighth richest, or even the hawkers, all the businessmen above them have to call banks "big brother".
If the bank pinches your neck, you will automatically have to add the word "small" before your surname and the word "cheap" before your name. The overbearing president will instantly turn into a pug , and the barking voice will be soft and charming, like mountain streams and the whisper of a beauty. It is a barking with outstanding level and style.
Making money is not bad. Nan Yi has been a lapdog and a bootlicker. Take the time when he was at Yaqing Company, for example. He practiced table tennis so hard just to wag his tail in front of Fan Guangfu in a pleasing way.
Even to this day, Nan Yi never forgets to practice his dog-licking skills. While being licked by others, he is always ready to lick others. When introducing himself, "I am Nan Yi" is always humble. Those domineering words with dragon and tiger connotations have nothing to do with Nan Yi. He does not have the body, eyes or courage of a tiger. He only has the wolf's heart of unity, cooperation and benefit sharing, and the dog's lungs that he will only eat food thrown to the ground by its master.
From a distance it looks like a dog, but when you get closer you realize it's Nan Yi. This statement is quite appropriate to satirize Nan Yi.
Hair comes from the heart. Nan Yi's hair is dense and soft, which fully exposes his cunning heart, but he is timid and soft-hearted. Huang Guomei is different. Her hairstyle always switches between a hard slicked back hair and a shiny one. She is just as cunning and bold, daring to be the first in the world. She regards the bank masters who are flattered by everyone as little silver, or even a silly silver, and plays with them in the palm of her hand.
By the second half of the 1990s, Japanese electrical appliances were still popular, but Guangyu Electric was a big company that attracted a lot of attention. The business with the highest profits could not be expanded indefinitely and could only be done covertly. Huang Gomei, who had already made billions, naturally could not afford such small amounts of money.
The profit margins of genuine domestic electrical appliances are meager. Even if he uses all means to lower the supply prices of electrical appliance manufacturers, the profits are still not that great. Moreover, the manufacturers dare not speak out against him. The fear of the world turning yellow has been around for a long time.
Ms. Dong, who works in the air conditioning business, hates him every time she mentions him. If possible, she really wants to eat Huang alive, even without soy sauce, and she will definitely eat him until not a bone is left in a meal.
Of course, this is in private. When we meet, we still have to smile, lower our shoes, and make ourselves three inches shorter. I am in front of Mr. Huang, and behind Mr. Huang. Good luck to you, Mr. Huang.
Because of this, Huang Guomei felt that this business was boring. Seeing that the Huang family was doing well in real estate, he also had the idea of getting into real estate.
Being in real estate , he naturally cannot do without banks. During his visits to banks, he fell in love with a girl named Bai Lu. She was very beautiful, with no makeup on her face. She only had four big characters "loan specialist" carved on her forehead.
After a few interactions, the man loved words and the woman loved money, and they fell in love with each other.
Huang Guomei married Bai Lu home in a sedan chair carried by eight people, and her family didn't need to prepare a dowry, all they had to do was frame the four big characters and take them with them.
After her wedding, Huang Guomei became obsessed with calligraphy, especially imported words, such as "bank director" and "bank president". If she occasionally got a calligraphy work, she would love it so much that she would take it with her to restaurants, nightclubs and golf courses.
There is a saying that goes, "Those who are close to you get loans, and those who are close to you get more loans." Although Huang Guomei started working in real estate during a period of tight monetary policy, it did not delay him from applying for a loan at all. After all, those who know how to do it will find it easy. Huang Guomei stared at the words "loan specialist" in his study for less than three seconds, and a good idea came to him.
A few days later, Huang Guomei came to the gate of the bank, silently chanting the spell "Malimalehoon, please close your eyes when it's dark". As soon as the spell was uttered, the eyesight of many people plummeted to the point where they were blind. Huang Guomei snorted domineeringly, walked into the bank with the gait of a dragon and a tiger, and applied for a mortgage loan for the property he had developed.
There is no doubt that it is a mortgage loan, the kind of mortgage loan with "30% down payment and five-year loan". The property developed by the left hand is sold to the right hand after obtaining the pre-sale certificate. The right hand goes to the bank to apply for a loan, and after the bank approves it, the loan is transferred to the left hand.
This is the process. Huang Guomei owed a considerable amount of interest and withdrew 300 million yuan from the bank.
The reason for doing this is that Huang Guomei is an expert in selling electrical appliances but a layman in real estate. The properties he developed have slow sales due to their large apartment designs, which seriously affects the return of funds for subsequent development. Seeing that the market conditions are getting better day by day, as a smart man, how could he just sit there and watch? So, the best strategy was implemented.
However, Huang Guomei had 300 million yuan in his hands, but he did not invest all of it in real estate. The cost of capital was too high. He was very dissatisfied with the speed of capital recovery in real estate and was unwilling to spend too much money. But at the same time, he was optimistic about this industry and knew it was profitable. It was impossible not to do it, but he just wanted to find a smarter way.
In terms of real estate, Huang Gomei diverted the cash flow generated by Guangyu Electric Appliances to the real estate field, but only used it for land auctions and did not invest the money in the actual construction process.
In the home appliance retail industry, there is a credit period between appliance retailers and appliance manufacturers, which can be as short as one quarter or as long as a year and a half. For Guangyu Electric Appliances, it is usually half a year or more. In order to generate more cash flow and retain more funds, Guangyu Electric Appliances' promotional activities are held one after another without stopping.
The withheld funds were used to purchase land. During the real estate development process, Huang Guomei asked builders to advance the real estate development funds, and the funds he actually had to invest were very small.
In the entire process from land acquisition, project contracting, sales of pre-sale properties to owner move-in, the actual funds required are only the part for land acquisition. The rest of the funds can be obtained through bank loans and advance payment by construction contractors.
The developer only needs to pay a part of the deposit to the contractor. After the building is topped out, the developer can recover the funds by selling the pre-sale properties and repay the bank loan and the remaining part of the project payment from the builder.
This is probably the process for a legitimate developer to develop a project. 99% of domestic developers do this. The only exceptions are a few large companies with Hong Kong backgrounds, including several subsidiaries of Creativity Real Estate. They have been developing in the mainland for more than 20 years and have never asked builders for advance payment. They have been begging for loans from banks - the bank president would bring gifts to the company and invite people to dinner. At the dinner table, he would complain about the heavy loan workload and beg his brothers to help him loan some money.
Once a bank goes public, it has to be responsible to investors. At the very least, it has to pretend to be responsible. Lending money to companies with good financial conditions (no worries about repayment) and excellent credit to earn interest is the safest way to make a profit.
Whether it is Tota Architecture, Chunshen Architecture or Nanchen Architecture, at first glance, their business models are relatively conservative. Not to mention dozens or hundreds of projects blooming simultaneously across the country, there are not even two projects going on at the same time. They finish one before moving on to the next.
If there are people working on two construction sites, it only means that one of the construction sites has a bug in the land development time.
They do not pursue development speed or brand. One project can be split into six or seven independent companies. Three companies are only well-known in the industry. Outside, in other cities, no one may have heard of their names. Even if they have heard of them, they are mostly known from the workers on the construction site.
The meal consists of three dishes and one soup; high temperature subsidies are closely linked, and high temperature and subsidies cannot be separated forever; commercial insurance and compensation must keep up, so that workers can be safe and their families can be protected; wages must be paid every month without delay or deduction.
These are what an unscrupulous capitalist should do, but the number of workers on the construction site who can enjoy them is not worth mentioning. What's worse, they turn into a cancer of evil and let the workers work for nothing all year round. Huang Guomei's Xiao Huang Group did this.
The Huang Group is not a serious developer. It has one project after another. In order to operate subsequent projects at low cost, Huang Guomei will delay the payment of the previous project for a long time, even if the funds have been recovered.
You have to know that debt can not only be transferred, but also disappear out of thin air.
Huang Guomei owed money to the builder, the builder owed money to the contractor, and the contractor owed the workers wages; the workers knelt down to the contractor because they could not get their wages, and the contractor felt guilty, so he sold his car to treat the builder to a big meal, said all the nice things he could, and begged him to pay the bill; the builder explained that he had no money and had put it all into the project; the contractor got anxious and wanted to kill the builder with a punch, or kidnap the builder's wife, and the builder had no choice but to sell his property and run away.
Whether they are dead or running away, the creditors will disappear anyway. Look, the debts disappear out of thin air.
Even if you don't die or run away, you can still delay as much as possible. As long as you delay long enough, you will win. Time is simply too magical. If you give it twenty years, it can turn something that can win a certificate into an immediate execution.
Huang Guomei not only advanced funds and owed debts, but also arranged installment payments for land fees and developed a variety of financing methods.
For example, when money supply is tight, developers can raise funds and exit through various means, such as borrowing money at high interest rates, taking advantage of information asymmetry to earn agency fees, attracting cross-industry investment, and raising funds from foreign investment banks.
Loan sharking refers to the situation where developers, after acquiring land, seek out private lenders to obtain bridge loans at high monthly interest rates to pay for land transfer fees or equity transfer fees. After obtaining the land use certificate, they apply for a loan from a bank to repay the previous bridge loan.
If the bank does not agree to the loan, the developer can continue to borrow from private lenders, borrowing new money to repay old debts, and the cycle continues.
Taking advantage of information asymmetry to earn agency fees means that developers often take advantage of information asymmetry to first pay a deposit for equity transfer or land auction, and then transfer the entire project to other developers, thereby earning a higher premium.
Attracting cross-industry investment means attracting companies from other industries to enter the real estate sector by selling equity in project companies.
Investing in foreign capital for financing means signing a financing agreement with a foreign investment bank and promising foreign capital a high rate of return in exchange for investment.
According to the current and past two years' real estate market regulations, land transfer fees must be paid, and only after paying the land transfer fees can a land use certificate be obtained.
However, Huang Guomei would ask his subordinates to delay the payment of land deposit and transfer fee as much as possible. Although they would eventually pay in full, this delay would allow him to have more time to mobilize the funds in his hands.
Huang Guomei's unreasonable demands sometimes put his subordinates in a difficult position. When someone complained, he would immediately scold them, "Pu, you mother, can't you even do this little thing?"
Under pressure from Huang Guomei, his subordinates could only use all possible means to delay various payments.
After the initial project financing is in place, it officially enters the development stage. At this time, the developer can alleviate his financial pressure by asking the construction contractor to advance funds to complete the project development.
In many real estate projects, developers only invest 20% to 40% of the funds, while general contractors, subcontractors, steel suppliers, cement suppliers, and the entire construction industry chain bear the remaining 60% to 80% of the development costs.
Although there are regulations now requiring developers to have more than 35% of their own funds, in fact, many developers simply cannot do so. Some developers even let builders advance funds from laying the foundation all the way to the pre-sale license stage.
In terms of real estate development, Huang Gomei adopted the above methods extensively. Huang's real estate companies owed a large amount of land and project fees, which meant that Huang Gomei did not actually invest much money in real estate projects. He mainly expanded his real estate business by letting builders advance funds.
Huang Guomei is using eggs to hatch chickens, and her behavior is so ugly, why are there still people willing to advance the money?
On the one hand, advance payment has become an unspoken rule in the real estate industry. Without the ability to advance payment, it is difficult for builders to get projects. On the other hand, Huang Guomei's "wealth" is at its peak and is gradually impacting the Hurun Wealth List. The builders are intimidated by his title as the quasi-richest man and think that a mere 3.5 to 600 million is a drop in the bucket for the richest man.
Huang Guomei came from a humble background and has traveled far and wide, meeting businessmen from all over the place. He has a very accurate grasp of the mentality of most businessmen. Although when he became the richest man on the Hurun Rich List, he joked to the media that this list was a pig-killing list, but in fact he cared very much about the title of richest man. This title could bring added value to his investment and allow him to continue to play the business without boundaries.
Some people held a similar mentality during the process of cooperating with him, thinking that Huang Guomei would not have any problems with funds, so they felt at ease and boldly cooperated with him. Little did they know that Huang Guomei had actually already made a plan, which was to take advantage of the narrow-mindedness of these people who only focused on external halos, and lure them back one after another.
…
After changing the tea leaves and making a new pot of tea, Nan Yi continued to introduce to Aija the content that was not in the materials she had read.
"In China, when a building is completed, the developer uses sales to raise funds to repay bank loans and pay construction contractors. If sales are not good or banks tighten mortgage lending, the developer's capital chain may be broken.
When this happens, some developers will take risks and use fake mortgages to defraud bank loans. The basic process is this: the developer asks relatives, friends or employees to buy the houses they have developed. The developer is responsible for paying a 20% down payment. The homebuyer does not have to pay any money, but only needs to borrow money from the bank in their name.
In this way, the bank will give the remaining 80% of the house price to the developer, and the house will nominally belong to the buyer, but when someone takes a fancy to the house, it will be sold as a second-hand house. "
Ai Jia interrupted, "Dad, with the method you mentioned, banks are tightening mortgages, so why can developers still get mortgages? Is there someone in the bank colluding with them?"
Nan Yi smiled and said, "Of course it is. You have been interning at Labor Bank since college. You should be very clear about how our bank does risk control. You should also be aware that there is a house cleaning team under the bank's security system."
Aija nodded, "It is my job to organize and coordinate the elimination of the two traitors."
"I know that your way of dealing with people is very creative." Nan Yi smiled knowingly, and felt a chill all over his body. He muttered to himself that his cheap daughter-in-law was not only cruel when she got angry, but also very smart.
Last year, there was a female employee at Labor Bank who was disloyal to her employer. Aija entrusted the female employee with an important task, making her responsible for business in an area with a high incidence of rape cases. She was often so busy that she had to walk at night. As expected, the female employee became a victim in less than a month.
"Dad, do you think I'm too cruel?" Aija asked tentatively.
"I don't think so. It's hard for people to keep a clear mind. They will forget that what they have earned exceeds the exchange value standard generally recognized by society. Even if we give more, we still can't get their loyalty. Instead, they get more by selling out our interests. To us, they are enemies. There is no need to be merciful to enemies, especially enemies from within."
Nan Yi waved his hand, "Okay, let's not dwell on this, let's continue. Huang Guomei used various legal or illegal means to make the Xiao Huang Group extremely expanded within ten years. Now the total real estate assets of the Xiao Huang Group are around 20 billion.
The Xiaohuang Group mainly consists of three major sectors: electrical appliance retail, real estate and investment. Before Guangyu Electric went public, the profitability of its basic business, electrical appliance retail, was not ideal, due to frequent promotions at any cost and more than 5 billion in annual salary expenses.
After going public, its profitability did not improve, and it simply used the funds raised from the listing to vigorously expand, causing its turnover to soar, which in turn drove up its stock price.”
"Dad, after Guangyu Electric went public, Huang Guomei has cashed out several times, with a total amount of nearly 10 billion Hong Kong dollars. The information does not mention where this money went."
"It is not mentioned in the documents because we have not obtained accurate and reliable data. We only know that most of the funds returned to the mainland through underground channels, flowing into the capital market, real estate market and used to acquire home appliance retail companies. They were acquired in the name of other hidden companies and then sold to Guangyu Electric Appliances after manipulation, making the difference between the two parties.
Huang Guomei has damaged the interests of shareholders, including our interests. This is the most important reason why I called you here. The secondary reason is that the boss of Jingxi Yiguo asked me for help. He and I used to be partners. Although our relationship is not so close now, I still want to help him, but I have to charge for my help. "
"Dad, my mission is to help Jingxi Yiguo and double our losses?"
"Not all of it. You only need to be responsible for part of the work. Tomorrow you will go meet the boss of Jingxi Yiguo and coordinate with him. Spend a few days to understand the situation of Jingxi Yiguo. We will meet in Xiangkeng on Monday of next week. The code name of this operation is 'Justice, 555'."
