Those Years When I Was Forced to Top the Forbes List

Chapter 349: Swan Lake Mentioned Again (6K5)

Long March Capital is celebrating the New Year again!

Holiday bonus, fifty-five million!
This dividend distribution coincided with New Year's Day, taking care of everyone in the group: five million for the holding group, twenty million for Changzheng, twenty million for Qidian, and ten million for Gu'an Construction.

As for why the profits from the Long March were spent by everyone?

Because the Long March was Chen Xuebing's.

He owns 100% of Changzheng's shares. Lu Yiwen, as the second largest shareholder of each company, has already reclaimed the 1% share he symbolically held. Since Ms. Chunyan holds the shares, Kan Zhidong only has 2% of the dividend rights during his tenure.

The group company also belongs to Chen Xuebing, with the same shareholding distribution of 99%+1%. Gu'an Holding Group and Changzheng Capital are his private territories, his backyard.

This profit, after returning to the parent company, enters the group and is then distributed in the name of the group's board of directors. It is an incentive from the parent company to its wholly-owned subsidiary.

In fact, Wu Zisheng, Xu Jin, and Liu Zengcheng also have 0.5% incentive options in Changzheng Capital, and the ten earliest traders each have 0.1% incentive options. However, these options have a two-year exercise period. They were issued in May, and we have to wait until after May 2008 to obtain the right to receive dividends by purchasing shares of Changzheng Capital at a low price.

Although these people could only watch the dividends being distributed, they didn't complain. This was because Kan Zhidong had spent more than two months bringing back the 40 billion yuan 3G fund. Without that money, their income this time would have been reduced by more than half.

Moreover, Changzheng Capital currently only has about 70 people, and the 2000 million yuan bonus is much more generous than the other two companies. The senior executives each receive one million yuan, and even the doorman Yin Xin received a 10 yuan bonus.

The same was true at the head office. A total of about 30 people shared five million. Cai Zhijian was rewarded with one million, Ren Ying was rewarded with five hundred thousand, and the rest were extremely generous.

As for Gu'an Construction, the number of formal employees is now close to nine hundred. Although the number of people has increased, most of them are new and did not expect to receive a holiday bonus, and it is quite high.

The real estate industry is rich because the bosses are rich, the senior management are rich, and the sales staff are rich. However, if we look at the construction units, the salary of a senior technician is only a few thousand yuan. Some low-level site managers can earn more than three thousand yuan this time and are already thinking of working with Gu An for the rest of their lives.

In comparison, the singularity appears to be in a much more precarious situation.

I had just received the money the day before New Year's Day when Lu Weibing called to say it wasn't enough.

The answer is that there are a lot of people.

The company headquarters, offices, IC design division, Kunlun business unit, network software company, 3G Magic Cube, factory, and overseas department have a total of more than 3200 employees and more than 40 secondary departments.

Half of the employees are top graduates from key universities, and most of the department heads are graduates from top ten universities or returned overseas students from prestigious universities.

Working in a big city like Shenzhen, how are we going to divide this little bit of money?
Lu Weibing complained incessantly, while Chen Xuebing, who was playing golf with several Chongqing real estate suppliers in the Northern New Area of ​​Chongqing, felt both gratified and helpless on the phone.

"Twenty million wasn't enough, so how did Spreadtrum solve the problem? I heard from General Manager Wu that they did a great job with the New Year's Day bonuses!"

"Spreadtrum has its own chairman; are you suggesting we distribute bonuses ourselves?"

"Nonsense! You're already a joint-stock company, why would you wait for the head office to give you money? Let me tell you, after the shareholding reform, you'll be raising funds soon. After that, Qidian will be like an orphan without financial support. The head office can only lend you money through Changzheng Capital. They can't just give it to you for free. I'll inject a final sum of money into you in March. I'm still considering the exact amount."

Upon hearing this, Lu Weibing immediately perked up.

"That's great, Chairman! You know we've already put all our working capital into supplying suppliers for trial production! Opening a 3G Cube store will also require an investment of 35 million."

"Thirty-five million for a store? Only a few cities? Why spend so much? Save some money, bro."

"We bought the stores, so there's no rent pressure going forward. Mr. Cai also said they'd appreciate in value. We spent over 1200 million yuan just to buy the two stores in Shanghai."

"Okay, I got it. Go ahead and buy it."

Upon hearing that he had bought two shops in Shanghai, Chen Xuebing felt that he had already recouped his 3500 million yuan investment.

"Furthermore, PwC gave us a comprehensive valuation based on the discounted cash flow method and the DCF method, with different business segments such as mobile phones, systems, and chips, based on revenue over the next 5-7 years. The preliminary opinion has been released in the last two days, which believes that our enterprise value is 66.2 billion yuan. They think this is a valuation that is generally accepted by VCs and PEs, and suggest that we set the value at 10 yuan per share and split 6.2 million shares."

"Only 66.2 billion? Why is the valuation so low? How am I supposed to raise funds with such a low valuation?"

Upon hearing this, Chen Xuebing's group fell silent.

A valuation of over 60 billion is an astonishing figure.

Chen Xuebing frowned and did a rough calculation, concluding that Spreadtrum's chip revenue alone would exceed this amount over the next five years.

"They believe that Spreadtrum's revenue sharing is too uncertain, and is worth at most 20 billion. Our company's value lies mainly in the system's control over the mobile phone and software camp, as well as the patent layout for future mobile phone technologies. The time barrier of system technology research and development alone gave us a weighted value of 16.9 billion. However, they also gave us a time curve and a discount rate. They believe that if we do not make significant progress within two years, the valuation will be halved. On the contrary, if our technological barriers are further strengthened and recognized by the entire industry in the world, the company's overall valuation can be increased by five to ten times. If we can achieve a market share of more than 10% in the European and American markets, it can even be higher than this valuation."

Upon hearing this, Chen Xuebing's expression softened slightly.

Big organizations tend to speak in roundabout ways.

To put it bluntly, if Kunlun Systems successfully becomes a world-class player within two years, PwC sees a potential market value of over 600 billion.

With less than $100 billion, PwC's vision is still too narrow.

However, given that Singularity is based in China, their valuation should be relatively conservative.

"Send their report to my email address, I'll take a look."

"Okay, I'll give it to you in a bit."

"The initial valuation for the shareholding system reform has been completed. How much longer will it take for the business registration change to be processed?"

"The valuation is not yet complete. The assisting law firm is still working on legal opinions regarding the defects in the title. We have recently increased our R&D investment, and the intellectual property rights related to the system and smartphones are constantly increasing. The lawyers are discussing the deadline for the conclusion with us. In theory, the asset audit and valuation step should take two to three months, but we are already speeding up. After that, we need to discuss the restructuring plan, including the share conversion ratio, the founders' agreement, the employee resettlement plan, and the disposal of undistributed profits. Then we need to amend the company's articles of association, determine the reserved share pool, etc. Only after the founding meeting of the joint-stock company can the formal change be completed."

"The procedures are too complicated."

"Shareholding system reform usually takes 6-8 months. Our company has no legal disputes and the equity is very clear, so it has been done very quickly. Once this step is completed, the company will be on the right track. All equity, personnel, financial and administrative procedures are benchmarked against listed companies. In the future, it will be much easier for us to go public. As long as we meet the annual and profit standards, the review process should be relatively easy."

Lu Weibing was relatively optimistic, but Chen Xuebing shook his head and smiled:

"Go public. Once it goes public, its assets will be enough for them to re-examine slowly. But it's good for the company to get its management on track as soon as possible, so that other subsidiaries can learn from it. Send me the list of board members that the group has applied for, and I'll come over to meet with them when I have time. That's all."

After hanging up the phone, Chen Xuebing gripped his cue and gazed into the distance. With a bang, he unleashed a high-trajectory, strong spin.

300 yards.

"it is good!"

"Mr. Chen, you have great ball skills!"

The crowd clapped enthusiastically.

Chen Xuebing smiled slightly: "President Yan, you're seven bars short of me. You need to find a way to supply me with the 320 yuan worth of 425 cement."

"Oh dear!" Although General Manager Yan hesitated briefly, he quickly became cheerful: "General Manager Chen, I've been making money with you since Fund No. 1, what's there to say? I'll help you source the goods from Sichuan! Lao Liang, Lao Liu, and Lao Wang also came in through Fund No. 2. As for building materials, even if we don't make money, we'll still support you!"

Others also expressed their opinions.

"Mr. Chen, I'll supply you with the waterproof membrane from Oriental Yuhong at the price I offer as a distributor. Just let me make a small profit on labor costs!"

"Mr. Chen, you should know that the Dongpeng tiles we represent are indeed not cheap! But if you want wear-resistant tiles, there's no need to buy Dongpeng! I'll find you a few other brands that offer affordable prices and good quality! Leave the transfer to me!"

"Our drywall is lightweight, so transportation costs are low! Whenever you need it, I can ship it to you by rail and road!"

"Thank you very much. However, for our bidding after the holiday, I would appreciate it if you could come over and help me negotiate a lower price."

A real estate project with a construction area of ​​millions of square meters cannot be handled by just a few suppliers. Almost every project requires one or two suppliers for different types of building materials, especially core basic materials such as sand, gravel, cement, and gypsum board, which are used in large quantities and need to be sourced from various sources.

"No problem! We understand!" said Mr. Wang, the general manager of AAA Building Materials, patting his chest.

Chen Xuebing smiled contentedly.

The sword of Long March Capital truly becomes sharper with each honing.

2007.

Chen Xuebing wasn't home, but a new calendar had been put up in the house—his fourth calendar since his rebirth.

New Year's Day was busy, but not too busy.

On New Year's Day, he took Cai Zhijian and the Changzheng team to Hefei to prepare for the signing ceremony with BOE. Although Hefei was the investor and the organizer of the ceremony, Changzheng Capital was the operating institution for this cooperation.

There is still a negotiation with Hefei.

Although the two leaders are old comrades-in-arms and trust each other, it doesn't mean they don't need to do any work. This time, the investment ratio of the Long March is low, and in order to obtain the representation rights and profit-sharing rights of Hefei, they had another few days of heated debate with the Hefei State-owned Assets Supervision and Administration Commission.

Of course, that was a matter between Cai Zhijian and the State-owned Assets Supervision and Administration Commission; he personally received a warm welcome from the Hefei government.

On the evening of January 2nd, while the State-owned Assets Supervision and Administration Commission's office was lit up all night, he had dinner with Mayor Wu in the government reception hall, chatting warmly. They even sang karaoke that night, with his arm around Mayor Wu's shoulder, singing "Twenty Years Later, We'll Meet Again," promising to meet again in 2027, no matter where they are, to come and see the development of Hefei together.

Later that night, Cheng Danting, who was in Hefei, came to the hotel to keep her company.

Ms. Cheng was still working in Hefei on New Year's Day. She was very lonely, but also very enthusiastic. Chen Xuebing took three showers.

The next day, Minister He of the United Front Work Department accompanied Chen Xuebing to the Hefei New Station Experimental Zone to see the site of the new factory.

This is the site selection for the 4.5 generation line, and a large area of ​​land has been reserved next to it for the 6th generation line, which will share a substation.

The empty land wasn't much to see, but the construction of the 4.5 project was nearing completion, with truckloads of green vehicles being brought into the factory area to begin landscaping.

A vibrant scene of life, where everything flourishes.

After watching it, I took a special detour to visit Swan Lake.

This time, instead of heading towards the Economic Development Zone, we took a stroll around Swan Lake.

The last time he passed through this area, Mayor Wu mentioned that he would give him the land to "expand the urban area". Later, when the 4.5 generation line was cut, Mayor Wu took him to see the newly dug Swan Lake and said that this was the land.

At that time, Chen Xuebing was somewhat tempted by the beautiful artificial lake.

This time, he not only saw Swan Lake, but also the entire surrounding area.

Part of the government building in the administrative district has already been completed.

There is also a newly completed sports center.

"Hefei No. 8 High School, Olympic Sports Center, Hefei Grand Theatre, and Cultural Expo Park—the spatial structure of 'one core, two axes' and the cultural and educational plan will be gradually completed! Swan Lake is the core! What we lack is commerce!"

With the old issue brought up again and Chen Xuebing having money in his pocket, he was really ready to take action.

"I remember Mayor Wu promised me a commercial plot of land at a 60% discount back then, which was 270,000 square meters, right? Is that still valid?" Minister He smiled knowingly: "Then you'd better hurry. After Hefei invests in BOE's sixth-generation line, the next step is to develop a new government district. President Chen, you know that Hefei moves very quickly."

Chen Xuebing's expression darkened: "Minister He, the speed of Hefei's actions is not thanks to me. The investment of 800 million yuan has yielded 3 billion yuan in profit, and then another 2 billion yuan has been used to build a 17 billion yuan factory. The whole process only cost you 1 billion yuan."

BOE's investment from last year will begin to materialize at the end of March, with a return of nearly four times.

Eight hundred million became three billion.

Hefei contributed exactly 3 billion yuan to BOE's 6th generation line investment.

Of course, Chen Xuebing also receives 30% of the profits from Hefei, but it's not even the end of March yet, so BOE still has room for growth.

In its previous life, Hefei used nearly 9 billion yuan from the government and local banks to invest in a 6th generation production line. In this life, 1 billion yuan was enough to set up two factories, one large and one small.

Although Hefei doesn't know what happened in his past life, the accounts are easy to calculate.

Without him, there would be no 4.5-generation production line, BOE would have no one to promote it, and it would not be able to appreciate in value quickly. The Beijing banking syndicate would not be able to mobilize funds, and the Beijing State-owned Assets Supervision and Administration Commission, as the major shareholder, would not actively participate in this investment that landed in Hefei.

Without him, Hefei's finances would not have had the resources to develop this new administrative district for the next two or three years.

even
“Shenzhen approached me once, but I didn’t agree. They even gave my local businesses a cold shoulder. I had to withstand the pressure to get BOE to continue investing,” Chen Xuebing said earnestly.

“We know, the leaders in the city and the province all know.” Minister He put on a sincere smile.

Hefei has its own intelligence system. They are still shareholders of BOE. How could they not know that Shenzhen was secretly contacting BOE?

"Mr. Chen, you are our good friend. Don't worry, we will definitely reserve this land for you if you want to develop it. And it's not just 27 yuan per square meter; we have already leveled a huge plot of land of 50 square meters! We all want to see what this 50-square-meter mega-plaza you mentioned looks like!"

This is actually a mutually beneficial choice. After all, Hefei Swan Lake is still a wasteland. Although the government affairs new district has a high development plan, it is not easy to find such a powerful developer in the short term.

They know how rich Chen Xuebing is. Not to mention anything else, just from this investment in BOE, he has billions in cash.

The commercial complex he mentioned back then still resonates with the city government, and everyone hopes to realize this beautiful landscape.

Chen Xuebing also felt a surge of passion within him.

500,000 square meters of land.

He's been acquiring land everywhere lately, each plot covering tens or hundreds of thousands of square meters, with very tight planning. Suddenly, such a large area comes along for him to paint, and with such beautiful scenery, it's almost poetic.

"Great! If it's 60% off, I'll sign the contract for this land three months from now!"

"Hehe." Minister He chuckled, "If President Chen is interested, why wait three months? The contract can be signed immediately. It's okay to postpone the money matter."

".Um?"

The following day was the first day back to work after the New Year holiday.

The stock market, which everyone was eagerly anticipating, opened with a green candle.

But amid a chorus of "up, up, up," it surged to a new high, reaching 2740 points before 10 a.m., a 1.5% increase.

The stock market was abuzz with cheers, but some dissenting voices also emerged abruptly.

"The Long March is over!"

"Changzheng has significantly reduced its holdings in Dashang and has fallen off the list of shareholders!"

"Aerospace Electronics has a large number of sell orders placed through its dedicated Southwest trading seat, and Changzheng Capital has reduced its holdings from the fourth largest shareholder to the eighth largest!"

"It is said that billions of yuan were profited from arbitrage before the Long March Festival, and all employees received massive welfare benefits! The minimum was tens of thousands of yuan! Employees were carrying sacks to receive their bonuses!"

There was a lot of cursing.

More than a dozen stocks held by Changzheng were exposed, and all of them experienced significant declines.

Chen Xuebing received the message, but only instructed that the fundraising should proceed as planned, and that consumer stocks and non-ferrous metals should be bought up, while real estate stocks should be sold off as needed, without paying any attention to anything else.

Changzheng Capital is a big company that attracts a lot of attention and criticism, but it also has more important things to do.

BOE and Beijing State-owned Assets Supervision and Administration Commission arrived today.

Before the arrival, negotiations between Changzheng and Hefei had concluded, resulting in a new internal resolution: Changzheng would continue to hold Hefei's shares on its behalf in this investment, but its profit rights would be significantly reduced to only 5%, with an additional 2% annual investment management fee.

This was Cai Zhijian's "reluctant concession," Hefei's "negotiation victory," and also Chen Xuebing's tacit instruction.

BOE's investment is unlikely to be exited within the next three to five years.

After months of careful consideration, he decided to operate BOE long-term, so he kept postponing this investment until January when the agreement was finally signed.

He wanted to control BOE's board seats to a certain extent, but he didn't have much spare money to invest, so he had to tie Hefei's funds to his cause.

By January next year, the stock market will have already begun to decline, which will not be the best time to exit.

However, under his management, BOE will certainly not be like its predecessor, which collapsed after the bull market ended. It has the opportunity to create its own slow and steady bull market, and may not need to depend on the overall market.

The current price of BOE Technology Group Co., Ltd. (the main part) is neither high nor low, with a share price of 8.9 yuan, 28.6 billion shares, and a total market value of 255 billion yuan. Moreover, the increase in the past month is too high, rising by 1.4 yuan from 7.5 yuan. They issued additional shares at 90% of the average price of 8.2 yuan in the past month, which is 7.38 yuan.

This price corresponds to a market value of 211 billion. If BOE surpasses Samsung in screen R&D in the next ten years, it has the opportunity to achieve a 10-20 fold increase.

Hefei has already won by spending this little money to bring two panel factories to the city. Now, he wants Hefei to accompany him in this high-stakes gamble.

At this time, Hefei was also trying to find ways to bind him to the war effort.

In the mayor's office, several people waited for BJ and his entourage to arrive. Chen Xuebing frowned as he flipped through the "Planning of Shushan Plots 03, 04, and 05," and couldn't help but light a cigarette, exhaling a cloud of worry.

"That's too expensive. A 60% discount, and it's still 666,000 yuan per mu? Does that mean you originally planned to sell it for over 1 million yuan per mu? There's not a single person in this area."

He felt like he'd been dragged into a Double 11 shopping spree.

First, they drastically raise prices, then they offer a massive discount.

Intuitively, it seems like there's a small discount to be made, but not much.

"How could there not be? Our government staff have all moved in. Besides, this is a perfectly regular diamond-shaped plot of land, and we've planned residential areas all around it. All the money you pay for the land will be invested in the roads, public facilities, and green spaces of the entire Shushan District. You won't need any extra investment. Once your commercial complex is built, we'll immediately start attracting residential businesses and launch a talent recruitment program. This will definitely make your commercial area profitable and attract businesses! Moreover, in terms of taxation, we'll give you the best policy: three years of tax exemption and two years of 50% tax reduction!"

After Mayor Wu finished speaking, Vice Mayor Jiang, who was standing next to him, also chimed in:
"66.6 yuan per mu, that's just over four figures per square meter, and that's an auspicious number."

Chen Xuebing clicked his tongue.

They even used the word "lucky".

Is this the kind of terminology appropriate for business negotiations?
The policy of halving taxes twice in three years, specifically reducing income tax, is a classic supporting policy, nothing surprising.

However, this is commercial land.

In the development of commercial land, the property rights are always held by the project company and are not transferred. Therefore, there is no land value-added tax involved. When the land is transferred, it can be done by transferring company equity rather than transferring real estate property rights. The tax calculation method is the general taxpayer tax rate, and the comprehensive value-added tax rate is only about 10%, which is much lower than the 30%-60% land value-added tax.

Developing commercial land is very tax-efficient.

"Mayor, I understand that a land price of over a thousand per square meter has symbolic significance. However, isn't the policy of halving the price every three years a bit too common? Could the land use term be extended by ten years?"

For residential properties, renewing the land use right is relatively cheap. According to the policies of later generations, it would only cost one or two thousand yuan per house, and it would be automatically renewed. Moreover, the 70-year property rights would be used for houses built in the early days of the People's Republic of China, and the land in those houses would have been re-expropriated by the government long ago, so this problem would basically not be encountered.

Renewing commercial land leases is more expensive. You have to renew proactively, and the renewal fee can reach up to 30% of the land transfer fee. Moreover, the lease term is only 40 years, so the probability of encountering this problem again in the future is quite high.

At least he will live to see that day.

"Extend the payment period for the land transfer fee for me as well. I will pay 50% within six months and the full amount within one year."

Anyway, we'll take whatever we can get; even if it's just capital tied up, it's still money.

Mayor Wu pondered for a moment, then nodded.

"can."

In principle, the transfer fee for commercial land should be paid within 60 days. However, this contract was signed in advance. The purpose of turning the letter of intent into a contract was to confirm future cooperation. As for payment, the due deadline must be given.

"Then let's sign it," Chen Xuebing said readily.

500,000 square meters, that's exactly 500 million yuan.

Although Hefei's land prices may not catch up with Chengdu's in the future, they will still be among the top ten. With the rise of two semiconductor factories and accelerated development, there is still a good chance that it will surpass its previous level of development.

My own shopping mall, my own office building, my own hotel
If we develop a mixed-use development model using this land, and do it well, then every place we go will be a VIP destination.

Over the next decade or so, he was able to experience the same kind of commanding presence that Wang Jianlin, the CEO of Wanda Group, had gone through.

Around noon, the group arrived in a hurry.

As soon as Wang Dongsheng and Deputy Director Zeng of the Beijing State-owned Assets Supervision and Administration Commission arrived, they exchanged a few polite words and then began to haggle over the price.

"Mayor Wu, isn't 7.38 yuan a bit low, Mr. Chen's price?"

"Seven yuan and sixty cents, let's all have some meat! It's auspicious!"

Wang Dongsheng rattled off a price, immediately asking for a 24 cent increase.

Upon hearing the word "Geely," Chen Xuebing suddenly sneered.

"Alright, alright, you're all lucky, right? When you acquire my shares, I'll give you a really auspicious price."

Wang Dongsheng and Director Zeng looked completely bewildered.

Vice Mayor Jiang smiled helplessly.

Mayor Wu laughed heartily.

(End of this chapter)