The next day, Shan City Henglong Group Main Meeting Room.
The warm atmosphere of the annual meeting has not completely dissipated, but the air in Meeting Room has changed.
There was no Red Lantern, no ribbons, just dense numbers on the whiteboard and solemn expressions on everyone's faces.
Zhao Chen was sitting in the middle, with the minutes of yesterday's meeting spread out in front of him.
Su Wantang is sitting on his left, and Chen Xi is on his right.
Lined up on both sides of Long Table are Chen Wei, Song Zhongping, Chen Qiming, Liu Mingyu, Zhang Qingxue, as well as the heads of several core departments.
"Everyone had a great time at the annual meeting yesterday."
Zhao Chen spoke, the voice was not loud, but very clear,
"Starting from today, take it easy. This year's goal, as I said last night, is to reduce the debt ratio to below 20%."
He glanced at Chen Qiming: "Director Chen, let's settle the account first."
Chen Qiming stood up and walked to the whiteboard. He was much calmer than half a year ago, and his hand when picking up the pen was very steady.
"As of December 31, the data of Henglong Consolidated Statements are as follows - total assets are 22.85 billion, total liabilities are 11.2 billion, and the asset-liability ratio is 49%."
He wrote these numbers on the whiteboard.
"The composition of the 11.2 billion liability is - Henglong Headquarters 7.2 billion, Haoyu Construction 4 billion.
On the asset side, Henglong Headquarters is about 17.45 billion and Haoyu Construction is 5.4 billion."
Chen Qiming turned around and looked at the people in Meeting Room:
"To reduce the debt ratio to less than 20%, the total debt needs to be reduced from 11.2 billion to less than 4.57 billion.
In other words, debt needs to be reduced by 6.63 billion this year."
Meeting Room was quiet for a moment.
6.63 billion.
This number is higher than most people here expected.
Zhao Chen leaned back on the chair and looked at the numbers on the whiteboard, his expression unchanged.
"Dismantle it separately." He said, "Haoyu Construction, over there, Chen Wei, explain your part clearly first."
Chen Wei stood up and walked to the whiteboard.
She was wearing a dark gray suit, her hair was tied tightly, and she looked much tougher than three months ago.
"Haoyu Construction's current debt is 4 billion. My goal is to reduce it to less than 1 billion by the end of the year. A decrease of 3 billion."
She picked up the pen and wrote a few lines on the whiteboard:
Haoyu Construction's path to reducing debt by 3 billion:
1. Six projects under construction were completed and delivered → about 4 billion in funds returned → 2.5 billion in debt repayment
2. Development of remaining land reserves → withdraw funds of approximately 1.5 billion → repay debts of 500 million
3. A total of 5.5 billion will be withdrawn, 3 billion will be repaid, and 2.5 billion will be retained as Working Capital and development funds.
Zhao Chen looked at the numbers on the whiteboard and asked:
"With six projects under construction, when will they be completed?"
Chen Wei said, "According to the plan, three will be completed before June, two before September, and the last one before November. I have signed all the time points."
Zhao Chen nodded, but did not let go:
"From 4 billion to 1 billion, a drop of 75%. This intensity is much greater than last year.
Last year Haoyu dropped by 500 million, and this year it will drop by 3 billion."
He looked at Chen Wei and said in a slower voice, "Mr. Chen, are you confident?"
Chen Wei was silent for two seconds. Then she looked at Zhao Chen and said in a steady voice:
"Zhao Zong, if it cannot be completed, I will voluntarily give up the share award."
Meeting Room was quiet for a moment.
Chen Qiming pushed up his glasses, and Liu Mingyu's fingers paused on the table.
Song Zhongping glanced at Chen Wei, with a hint of surprise in his expression--
This woman who has only been with Henglong for four months dares to issue a military order.
Zhao Chen looked at her without saying anything. He saw something in Chen Wei's eyes - not impulse, but determination.
This woman survived Haoyu Construction's most difficult time. She had no retreat and no need for retreat.
"There is no need to issue a military order." Zhao Chen said,
"But I remember what you said today. For Haoyu, you can do it freely. If you need support, please come to me at any time."
Chen Wei nodded and sat down.
Zhao Chen turned to Song Zhongping and Chen Qiming:
"Haoyu is 3 billion, and the remaining 3.63 billion must be reduced by Henglong Headquarters.
The debt of 7.2 billion has been reduced to less than 3.57 billion. You two, please talk about the plan."
Song Zhongping stood up and walked to the whiteboard.
He has been operating at Henglong for more than ten years. He has worked his way up from the grassroots level and knows the details of every project very well.
His plan is very pragmatic, with no fancy rhetoric, only numbers and time nodes.
"Henglong Headquarters reduces debt mainly from two aspects." He wrote two lines on the whiteboard:
Henglong Headquarters debt reduction path:
1. Selling houses at a discount and clearing inventory → about 2 billion in funds will be withdrawn.
2. Continue to promote asset sales → withdraw funds of approximately 2.5 billion.
Song Zhongping turned around and began to elaborate:
"Let's talk about inventory first. Henglong Headquarters currently has about 1.5 billion existing housing inventory.
Most of these houses were acquired on land before 2016. The cost is low, but the units are relatively large and the sales are slow.
If you are willing to give up 10% to 15% of the profit this year, these houses will be sold quickly."
He paused and added, "1.5 billion in inventory, sold at a 10% discount, can bring back about 1.35 billion."
But if there is a 15% discount, 1.275 billion will be withdrawn.
I tend to give a 10% discount, which can increase the volume without losing too much."
Zhao Chen thought for a while, "How long do you expect the inventory removal cycle to be?"
Song Zhongping said, "If the price is reduced enough, more than 80% of the items will be sold out within three months.
The market demand is still there, but the price has not reached the customer's Target Price."
Zhao Chen nodded:
"Yes. But as for the discount, you need to go back and calculate the accounts again - it's not about whether there is a loss or not, but about the cash flow.
As long as funds can be withdrawn quickly, the discount can be further enlarged. Our goal is to reduce liabilities, not to maintain profits."
Song Zhongping was stunned for a moment, then nodded. "I understand. Then I'll go back and calculate it again."
Zhao Chen looked at Chen Qiming: "What's going on over there at the asset sale?"
Chen Qiming stood up and took over what Song Zhongping said.
He opened his laptop and projected onto the screen a list of assets.
"In the second half of last year, we sorted out a batch of non-Core Assets and prepared them for sale.
Including the final stages of three commercial projects, two pieces of idle land, and an office building project that has been suspended for two years.
As well as some equity interests in external investments. The total valuation is about 3 billion."
He switched to the next page, which was a transaction progress chart:
"At the end of last year, we negotiated with several interested parties, but we couldn't agree on a price.
The other party lowered the price so hard that we were stuck, so we never closed the deal.
If you are willing to loosen up on prices this year, these assets will soon find a taker."
Zhao Chen asked, "How much is it loose?"
Chen Qiming thought for a while, "Last year our bottom line was that the valuation would not fall by more than 10%.
If it is relaxed to 15% to 20%, most assets can be sold within half a year. The sales target of 2.5 billion is not a big problem."
Zhao Chen was silent for a few seconds, and then said, "A 20% drop is acceptable.
But there is one thing - the buyer must be clean and the funds must be clean. You cannot sell for the sake of selling and bring risks."
Zhang Qingxue added next to it:
"Legal Department will follow up on the compliance review of asset sales. I will sign every transaction."
Zhao Chen nodded and looked at Song Zhongping and Chen Qiming:
"Inventory removal and asset sales walk on two legs.
80% of the inventory will be cleared within three months, and the asset sales will be completed for 2.5 billion within half a year. Are there any problems?"
Song Zhongping and Chen Qiming looked at each other. Song Zhongping spoke first:
"In stock, I'll go back and recalculate the discount plan. I'll give you a detailed execution plan within three days."
Chen Qiming followed:
"As for asset sales, I'll make a priority list.
Which ones will be sold first, which ones can wait, and which ones must be reduced in price, are divided into three categories. The plan will be made within three days."
Zhao Chen nodded. "Okay. In three days, I will see the specific implementation plan.
It's not a direction, it's a number - what project, when to sell, how much to sell for, how much money to collect, how much debt to pay off.
Every item must be clear."
He looked at Chen Wei again:
"Haoyu, it's the same over there. Within three days, make a form and send it to me with the delivery nodes, payment expectations, and debt repayment plans for the six projects under construction."
Chen Wei nodded. "Understood."