September 4th, Monday, 9am.
Henglong Building 28th floor, Chairman's Office.
Chen Xi and Zhang Qingxue worked overtime and finally collected enough information.
When they pushed the door open and came in, they all held a thick stack of documents in their hands.
Su Wantang has brewed the tea and sat quietly aside.
Zhao Chen leaned on the back of the chair, waiting for them to speak.
Chen Xi put the file on the table, and the first sentence was:
"Zhao Zong, checked clearly."
She turned to the first page:
"The true situation of Haoyu Construction is more complicated than we imagined, but it is also more valuable than we imagined."
Zhao Chen nodded and motioned for her to continue.
Chen Xi said:
"Let's talk about net assets first. Haoyu Construction's current net assets are still over 1 billion. But the problem is - basically all assets are in a mortgage state."
She paused:
"Land mortgages, construction-in-progress mortgages, equity pledges... everything that can be pledged has been pledged.
Now we are in a serious liquidity crisis. Once Capital Chain breaks, banks withdraw loans, Suppliers sues, and Court seizes it, no one dares to say how much of these 1 billion assets will be left."
Zhang Qingxue pushed up his glasses and answered:
"In such a crisis, asset discounts are normal.
If there is no one to save it, those vampires will not miss this opportunity. Whether Haoyu can be sold at the final price to pay off the debt is a question."
Zhao Chen nodded:
"So now the market is waiting?"
Chen Xi said:
"Yes. They are all waiting to 'pick up the corpse'. Wait until it cannot survive bankruptcy and liquidation, and then purchase assets at a low price."
She glanced at Zhao Chen:
"Originally, we were also part of the corpse collection team."
Zhao Chen smiled and said nothing.
Chen Xi continued:
"But now, our goal has changed."
She turned to the second page:
"In this investigation, we discovered an unexpected surprise."
Zhao Chen looked at her.
Chen Xi said:
"Chen Wei."
She paused:
"This woman is much more powerful than we imagined."
Zhao Chen's brows moved slightly.
Chen Xi said:
"Haoyu Construction has actually been corrupted for a long time. Chen Jianye is more radical than Zhao Jianguo.
During those years, he acquired land and invested everywhere, setting the company on fire.
If Chen Wei hadn't been patching things up over the years, Haoyu wouldn't be able to survive today."
Zhang Qingxue added:
"We checked several projects she handled. There was a poorly completed building. After she took over it, she spent two years revitalizing it and finally made more than 80 million yuan.
There was also a project that was sealed by Court. She negotiated with the creditors for eight months and finally got it unsealed for less than half the price."
She pushed up her glasses:
"Not everyone has this ability."
Zhao Chen was silent for a few seconds.
Then he asked:
"How much is Haoyu's current wealth?"
Chen Xi Turn to the third page and start counting:
"There are currently seven projects under construction, which are the seven projects we have focused on before.
The total value of the goods is about..."
She raised her head:
"About 3 billion."
Zhao Chen's pupils shrank slightly.
"3 billion?"
"Yes." Chen Xi said, "This is estimated based on the current market price.
Of course, these projects all require funds for continuation and have various problems, but the foundation is there."
She continued to turn:
"In addition to the projects under construction, there is also a pile of land reserves. It is about 400 acres, and the location is pretty good. The estimated value of the goods..."
She paused:
"Twenty billion and up."
Zhao Chen leaned back in his chair, digesting these numbers.
5 billion worth of goods.
It's mortgaged, but the assets are still there.
As long as there is money to continue construction, it can be revitalized.
"Also." Chen Xi said, "Haoyu started out in construction. He owns a construction company and has very strong qualifications -
First-level housing construction, first-level municipal administration, and first-level decoration. This kind of qualification is difficult to find in the market."
Zhang Qingxue added:
"The construction company is currently debt-free and the team is.
In the future, whether it is to supplement the engineering capabilities of Henglong or to sell it separately, it will be a good choice."
Zhao Chen nodded.
He looked at Chen Xi:
"How much money will be needed to revitalize these assets?"
Chen Xi is already prepared:
"It is necessary to inject about 500 million yuan in the initial stage - start up the suspended projects first, pay off the key debts, and lift the seizure of Court."
She paused:
"We will see how the project returns later. If we are optimistic, another 200 million to 300 million yuan will be enough. If we are not optimistic..."
She looked at Zhao Chen:
"It may take another 500 to 600 million."
Zhao Chen calculated quickly in his mind.
5 + 3 = 8.
5 + 6 = 11.
8 to 1.1 billion is indeed not a big problem for the current Henglong.
"Where's the profit?" he asked.
Chen Xi said:
"We made a conservative estimate. After all land projects are completed, sold, and paid back, the net profit will be approximately..."
She quoted a number:
"About 1.5 billion. But the cycle is relatively long, and many land projects have not yet started development."
Meeting Room was quiet for a second.
1.5 billion.
The investment is 800 million to 1.1 billion, and the output is 1.5 billion.
The time will be extended to about 3 years. If the construction deadline is met, there will not be a big problem in withdrawing funds before the masks are released.
Annualized rate of return...
Zhao Chen didn't calculate it, but he knew it.
Chen Xi added:
"This is a conservative estimate. If the market is good and the traders are good, 2 billion is not impossible."
Zhao Chen was silent for a few seconds.
Then he asked:
"How much impact will the acquisition of Haoyu have on Henglong's balance sheet?"
Zhang Qingxue Open another document:
"Henglong's current balance sheet is like this - total liabilities are 7.5 billion, total assets are 17.3 billion, and the debt ratio is 43.35%."
She paused:
"After merging the 2 billion Off-Balance Sheet Liabilities, the debt ratio is 54.91%.
But Off-Balance Sheet Liabilities is not a real liability, but our own strict financial standards, which have been included in the assessment."
Zhao Chen nodded.
He knew these numbers well.
"What if Haoyu is acquired?" he asked.
Chen Xi took the call:
"The current liabilities of Haoyu are about 4.5 billion. If fully acquired, after these liabilities are consolidated, the total liabilities of Henglong will increase to 12 billion."
She paused:
"In terms of assets, Haoyu's assets are estimated to be around 5.5 billion based on market price.
But taking into account the purchase price and subsequent capital injection, the actual cost we paid will be lower."
Zhang Qingxue added:
"After the acquisition is completed, Henglong's debt ratio will probably rise to... about 52.6%."
Zhao Chen's brows moved slightly.
52.6%.
It is nearly 10 points higher than the current 43%.
But it is still lower than the industry average.
"Where's Off-Balance Sheet Liabilities from Haoyu?" he asked.
Zhang Qingxue said:
"Haoyu is pretty good in this regard. Although Chen Jianye is radical, he has not done anything that harms his own interests.
Off-Balance Sheet Liabilities There are only a few external guarantees, the total amount does not exceed 200 million."
She paused:
"After all, it is his own company, and he will not cheat himself. After including the Off-Balance Sheet Liabilities of the two companies, the debt ratio is 63.1%."
Zhao Chen nodded. Even if Off-Balance Sheet Liabilities is consolidated, Henglong's debt ratio is still the best in the industry.
He stood up and walked to the window.
The sunshine outside the window is very good, plating the whole city into a golden color.
He ran through the numbers quickly in his mind.
5.5 billion in assets.
4.5 billion in debt.
The debt ratio is close to 82%, and after including Off-Balance Sheet Liabilities, the debt ratio is 85%.
No wonder no white knight came to the rescue.
For Henglong, the profit is 1.5 billion in three years.
8 to 1.1 billion capital investment.
Post-merger debt ratio of 63%.
And that woman named Chen Wei.
The woman with red eyes in Tea House, but never gave up.
If Haoyu can really be revitalized...
If we could really keep Chen Wei...
This deal can indeed be done.
He turned around and looked at Chen Xi and Zhang Qingxue:
"What do you suggest?"
Chen Xi and Zhang Qingxue looked at each other.
Chen Xi said:
"If Chen Wei cooperates, this transaction can be done."
Zhang Qingxue added:
"In terms of legal risks, we can minimize risks through installment payments, personal guarantees, performance betting, etc."
Zhao Chen nodded.
He walked back to his seat and sat down:
"Then keep pushing forward. Chen Wei, ask her to prepare the detailed information. We will make the final decision."
He paused:
"Also, inform her that if Haoyu is really acquired, she will not be able to leave Henglong for at least three years.
Also, help me make an appointment with Shen Jue."
Chen Xi nodded:
"Okay."