Coquettish Rebirth

On August 8, the annual National Real Estate Forum was held in Boao, South China Sea as scheduled. In the atmosphere of "the rain is about to come and the building is full of wind", the third confrontation between Sun Hongbing and Wang Shi took place.However, this time it seems that Wang Shi hit up Sun Hongbing.The first guest speaker on the first day of the conference was Wang Shi.When talking about the impact of macro-control, he directly pointed at Sunco: "The dark horse hyped by the media will be very uncomfortable under the macro-control. Ask him, if he says it’s not uncomfortable, that’s bragging.” Then, he gave a lot of warnings: don’t go after too much scale, don’t tighten the capital chain, and don’t leave room for it, otherwise the market will be affected if there is any disturbance, and you will work overtime every day It’s useless; last year’s sales were only more than 7 billion yuan, and this year it reached 20 billion yuan, which is impossible; financing is getting more and more difficult, domestic money can’t be raised, and foreign financing is even more difficult.In an interview with reporters, Wang Shi simply named and commented: "If you grasp the rhythm, Sunco can become a very good company, but now it has to pay the price for the miracle created by blind expansion. Sunco and Vanke are not in the same breath at all. This kind of dark horse is actually a black sheep that destroys the competition rules of the industry." When it came to the dialogue session of the conference, the organizer intentionally invited 100 people including Wang Shi and Sun Hongbin to the stage to face more than 5 real estate developers and developers from all over the country. Dozens of media, an expected collision really happened.The dialogue host asked Sun Hongbing: "Mr. Sun, tell me first, what is the most uncomfortable thing for you in macro-control?" Sun Hongbing replied: "In fact, the most uncomfortable thing is money. There is no good way to deal with this, or the old way. [Wan] ][书][吧] .nsb cooperative development, sell houses quickly. This year, we have been adjusting our goals... According to the last round of conservative estimates, this year’s sales revenue can reach 600 billion yuan.” The voice did not end , Wang Shi on the side immediately blurted out: "Speaking nonsense with your eyes open is bragging!" The audience was stunned for a moment, and then applause and laughter burst out.

Faced with Wang Shi's questioning, Sun Hongbing was no longer as frivolous and aggressive as before.However, he still insisted that "the risk of Sunco is almost zero."At his discretion.The development prospect of China's real estate market will still be "bullish housing prices. Both supply and demand are booming". Therefore, even if there are financial difficulties, they are short-term and immediate.Sunco's "funding channels are quite extensive."In the following period of time.Sun Hongbing devoted all his energy to finding funds.Sunco may obtain funds from four sources: first, self-owned funds and partner funds.On the one hand, the potential has already been tapped to the extreme; on the other hand, the sales return, affected by the macro-control, the sales of real estate projects in various places are becoming more and more difficult day by day.It is almost impossible to meet the original assessment indicators, and the funding problem is becoming more and more serious; the third is the bank, its door is getting tighter and tighter, and it will not be loosened indefinitely; the fourth is trust, overseas funds and listing, and there is no hope in the first three sources. Under such circumstances, it has become the only place where one can pin one's hopes.The reason why Sun Hongbing still has confidence in the Boao Forum is that before he went to the meeting on July 4, he had just received representatives from HSBC, PricewaterhouseCoopers, Smith Law Firm, and Simmons. The Sunco listing intermediary group composed of well-known intermediaries such as Sunco.These people inspected the headquarters of Sunco and the real estate developed by it, and called on the relevant government departments of Tianjing City. They seemed to be full of confidence in Sunco's listing on the Hong Kong Stock Exchange.However, after they went back, there was no more news.It is said that the reason for the stranded listing was that "Sunco developed rapidly in 7 and had 28 projects in hand, but the profits of that year could not be reflected".After Hong Kong's listing was hopeless, Sun Hongbing immediately negotiated private placement with American investment bank Morgan.Morgan proposed an agreement with the nature of "gambling". The general content is: Morgan bought 2004% of the shares of Sunco at a price of 35 million yuan. The % stake will be doubled to 7.5%.The negotiation with the investment bank lasted for nearly a year, and Sun Hongbing almost pinned all his hopes on this negotiation.However, by October 20, Sun Hongbing finally believed that Morgan's request was too harsh, and the negotiation failed.

When the listing and private placement were not smooth, in fact, his room for maneuvering was already very narrow.During this period, the sales of real estate projects in various places still did not improve, and various crises caused by the cut-off of funds began to erupt everywhere.In the capital, Sunco’s post-territorial project has not obtained the land certificate because it has not paid the land transfer fee; in Tianjing, the second phase of Sun City has not obtained the land certificate because it is out of the planning red line, and other parts of the project have been suspended for half a year; In Suzhou, Phoenix City, which covers an area of ​​more than 1 square kilometer, two pieces of land were identified as idle land by the government and taken back; in Shijiazhuang, two projects were transferred out as a whole; Sunco's Nanjin Company and Huadong Company were successively sold. At the end of 2005, Sunco carried out a large-scale personnel adjustment and laid off 20% of its staff. At the beginning of 2006, Sun Hongbing admitted that Sunco currently has real estate business in 16 cities across the country, and it has entered too many cities. It would be more appropriate to shrink it to 10 cities. Next, Sunco may cooperate with outside companies in some real estate projects. Some items may be sold.According to some media reports, Sunco's arrears of land fees plus bank loan balances are estimated to be as high as 46 billion yuan.

Before and after these incidents, Shunco's fast house building model also revealed sequelae.The real estate industry has always had the principle of "a long-term plan, rushing to work is a disaster". Sunco rushes to catch up with the project, which will inevitably leave flaws in quality and credit.According to "China Sankei Shimbun", since the end of 2004, the owners of Tianjing Suncity have complained frequently to various departments, claiming that the Suncity houses they bought for several 10 yuan or even nearly one million yuan turned out to be "low-quality housing." ", the builder Sunco Company unilaterally changed the plan, infringing on the rights and interests of the majority of owners.The owner complained: "Sun City is simply 'paper', with a lot of cracks in the wall, and the decoration materials were secretly replaced by the 'Road Guerrilla Decoration Team'! I bought the house for the Sunco brand. I didn't expect Sunco is even more deceitful. Almost the entire decoration is fake."

In addition, Zheng Aimin, a financial author, also mentioned a case in the book "Interpretation of Sunco": Sunco started a project near a large scenic spot in a certain city. The hard indicators are already like a high-hanging arrow, making it impatient, so a press conference was held in a hurry, and advertisements were bombarded overwhelmingly.In order to increase the attractiveness of the project, the advertising copywriters arbitrarily included the government's future planning for the scenic spot in the real estate plan.This of course aroused dissatisfaction from government departments, and as a result, newspaper advertisements were ordered to be revised.All billboard advertisements were required to be removed and redone.When a crisis of a large company breaks out.First of all, it is manifested as mistakes in details, and then internal and external difficulties, frequent troubles.Since the autumn of 2004, the unlucky Sun Hongbin has fallen into such a quagmire.

Entrepreneurs' success must be remembered and praised.There is only one possibility.That is: the business he built is still doing wonders.Entrepreneurs always need some visible and quantifiable material and data to prove their value.These substances and data must also maintain a certain growth rate every year.Even, the growth rate should be faster than its peers, otherwise.He can hardly be considered successful.It is also this characteristic that constitutes the "unfortunate fate" of entrepreneurs: unless they exit the stage, they can never be defined by success.The extremely intelligent and courageous Sun Hongbin fell into this "unfortunate fate". In March 2006, Sun Hongbin confessed to his confidant: he has already put all the savings from his family into the company one after another, one of the credit cards has only two digits left, the rigid gap of funds is 3 million to 5 million yuan, and the debt is more than 6 million yuan. billion.As far as the base Tianjing market is concerned, all the houses available for sale have been sold out, but the remaining projects in hand have not been able to start for a long time, and some even have no money for demolition.In fact, Sunco has reached the point where it has run out of ammunition and food.

Sun Hongbin soon signed an equity transfer agreement with Hong Kong Road King Infrastructure Company.According to relevant clauses, Sunco China is divided into three parts, Sunco a, Sunco b and the Phoenix Land.The Road King Infrastructure Consortium respectively obtained the call option for 55% of the shares of Sunco A, with an exercise price of not more than 5 million yuan, and the validity period is 6 months; the call option for 55% of the shares of Sunco B, with an exercise price of not more than 4 1 million yuan, valid for 3.8 year; the call option for the Phoenix land plot, the exercise price is not more than 9 million yuan, valid for 12.8 months.Sun Hongbin sold 55% of the equity at a price of 3 billion yuan, and basically lost control of Sunco. This is a very low price and harsh payment terms.However, 9.05 years ago, Sunco sold for [-] million yuan just for the Daxing land in Beijing.

At the end of 2004, he also had the confidence to settle the accounts and said: "Sunco owns tens of millions of square meters of land at a suitable price. If it is resold at the market price, the land price alone will make a net profit of 50 billion yuan." "Chinese Entrepreneur" in In the comments, "the signal revealed by the transfer agreement is too obvious: what Sunco wants is life-saving money. Although it is small and expensive, it must be needed."Road King Infrastructure is a Hong Kong company that invests, operates and manages toll roads. It only entered the mainland real estate industry in early 2005 and is basically unknown in the industry. In the first half of 2006, the company's net profit was HK$2.48 million.At the formal signing ceremony of the agreement, Sun Hongbin said to Shan Weibao, the chairman of the board of directors of Road King Infrastructure, who was full of smiles: "You bought a bargain."

In October 2006, shortly after Sunco's equity transfer, Vanke Group held a semi-annual high-level meeting by the West Lake where the sweet-scented osmanthus was first blooming. In his speech, Wang Shi repeatedly reminded his subordinates to remain rational and alert to crises.He said: "I should not criticize Sunco by name. From now on, I will not criticize other companies by name." Perhaps, in his opinion, a story about a dark horse has come to an end.

After Sun Hongbin handed over the management rights of Sunco, he concentrated on the business operation of a company called Sunac.On Sunac’s website, it declares that “formally established in 2003, its main business is real estate development, operation and management. It holds several high-quality land in Tianjing, Yuqing and other places, and its annual development capacity is about 10 billion yuan.”Sun Hongbin deliberately avoided meeting with the media, and his name could not be found on the Sunac website or in the beautifully produced brochures.This entrepreneur, who experienced strange bad luck in his thirties, fell into a painful hibernation again when "forty is not confused".However, he was just knocked down, not out, and he may have an even more amazing tomorrow.