Chapter 1625 No loss is a big profit(1/3)
In the conference room, Li Dong proposed to raise 300 billion yuan, and the noisy conference room just now became quiet.
Seeing this, Li Dong continued: "We will not talk about the question of whether it can be successful if it is 300 billion yuan, even if it is a good idea or not.
Based on the previous financing interest rate, annual interest plus handling fees, it looks like about 17 billion yuan per year.
How to spend this money when raising 300 billion yuan?
In the south, there are already a lot of stores. This time, the targets are Gao Xin and Walmart, two hypermarkets in the coastal areas. How many are there in total?"
Chen Lang recalled after hearing this, and after a while, he said: "The coastal areas are currently mainly composed of Guangdong Province, southern Fujian, and Jiangsu and Zhejiang Province.
In Jiangsu and Zhejiang, because we are adjacent to Jiangbei, we are not weak in Jiangsu and Zhejiang and have an absolute advantage, even Hua Run is slightly weaker than us.
The other two have few hypermarkets.
Therefore, what we are talking about in the southern coast are mainly Guangdong Province and southern Fujian.
Of course, it also includes Hong Kong, Macao and Baodao.
In addition, the Shanghai Stock Exchange is currently a hundred and powerful, so we can skip it for the time being.
According to the statistics of the above places, Gao Xin and Walmart have a large number of hypermarkets in these places, with a total of nearly 100 stores."
It is just a place between the two provinces, plus Hong Kong, Macao and Taiwan, with hundreds of stores in the two hypermarkets!
It doesn't sound like there are many, but in fact, the total number of Walmart stores in China is only 300.
Even if Walmart and Gao Xin are evenly divided, Walmart has one-sixth of stores distributed in these two provinces alone.
This shows how much investment these companies have in the south.
A hypermarket is based on 10,000 square meters. Due to different labor costs and rents in different places, there are considerable differences in investment, but the average investment costs of Walmart and RT-Mart are more than 20 million yuan.
This is because the other party is a large company and many costs can be ignored.
Similar to inventory, the other party does not spend money on his own, otherwise the cost of opening a supermarket of more than 10,000 square meters will be half the cost.
This is not considered a self-operated property. In fact, the proportion of self-operated property in China with foreign capital is not high.
Again, this does not count logistics costs, and other expenses.
The simple store cost is that much.
After Chen Lang finished speaking, Li Dong narrowed his eyes and said, "100 stores, they are hypermarkets. We cannot open hypermarkets like them. In the early stage, we mainly run their business.
There are more than a dozen supermarkets near each hypermarket, which are about 1,000 square meters.
In terms of cost, it should be similar to theirs, and it may be slightly higher. After all, the stores are scattered, and some things are more investmentable.
In addition, investments in logistics, distribution centers, warehousing and other aspects should be enough to complete the encirclement and suppression.
Of course, encirclement and suppression of them is not the goal, our goal is to make it bigger by ourselves.
It’s not enough to just build a small supermarket. We have to prepare our own flagship stores and hypermarkets locally.
At least 100 hypermarkets are required to be built in coastal provinces.
In addition to our existing system, we can almost seize the market left by these two companies after retreating.
By this calculation, the final investment may exceed 15 billion.
And I said that I would also purchase a batch of self-operated properties. Commercial real estate is the main part of the money. In the coastal areas, I plan to purchase a self-operated property area of about 1 million square meters.
The prices of commercial real estate are not low. Even now, the average distribution will exceed 8,000, and it will definitely continue to rise in the later period.
With a budget of 10,000 yuan per square meter, that is 10 billion.
Together, the total investment in the southern coastal areas is about 30 billion yuan. That's about that, what do you think?"
The others looked at each other, and after a while, Sun Tao said: "Mr. Li, we have invested billions in these two provinces now. If we add to the 1000, the total investment is close to 20 billion!
Another 30 billion investment, which means that the total investment of these two provinces alone, plus Hong Kong, Macao and Taiwan has reached 50 billion.
50 billion...
If it were another retail company, it would be enough to complete the national layout.
We...we are just for the coastal market, this..."
Sun Tao had no idea what to say. He had thought about investing in the South. In fact, after acquiring Jiabao, Sun Tao felt that investing more than a few billion to ten billion would be considered a big deal.
Li Dong is so lucky that he only has an investment of about 30 billion yuan.
You know, even if the current Yuanfang supermarket and Guomei have a total investment of less than 100 billion yuan.
With so much investment in these places alone, when will the cost be recovered?
Li Dong smiled and said, "If you want to invest 30 billion yuan, just in the property industry, it may be difficult to recover 30 billion yuan in three years, but 20 billion yuan is still not difficult.
With our fixed assets, three years later, 30 billion is worth it.
So what we have to do is that the expanded store has low requirements, and at least make back the operating costs. As a well-known hypermarket, it is not difficult to make a cost, right?"
"this……"
As the largest store in China, Li Dong does not require profit, but only requires maintaining a balance of income and expenditure. If he doesn’t even have this confidence, it would be too cowardly.
Chen Lang nodded and said, "If it is just a simple operating cost, it will not be difficult.
But Mr. Li, don’t forget that the 30 billion investment is all the money from financing.
30 billion, and the annual interest rate is more than ten or twenty billion.
To be honest, we dare not guarantee whether we can earn back the interest in the current situation. After all, what you mean is that fighting a war of attrition with the other party will increase the cost again.
So if the other party really can last for three years, we may suffer some losses in three years.”
Li Dong said without hesitation: "If we invest so much, we can use a lot more money. In the end, we won't lose money.
This is the case with an investment of 30 billion, and an investment of 300 billion is actually the same.
I just said it was worth it or not, but that's what it means.
In the end, you shouldn't lose money, but that's enough.
If you don’t lose, that’s what you make, or you’ll make a big profit!”
Chen Lang nodded and said, "Indeed, there is little possibility of real losses.
But I still want to say the last point…”
Chen Lang paused for a moment and said slowly: "Three years later, Mr. Li, you have used all the financing money to invest in fixed assets. So why should we pay the money when it expires?
Should we continue to mortgage and continue to borrow?
Then we will fall into a cycle, and in the end, we may be really dragged down.
You said whether it is 30 billion yuan or 300 billion yuan, the possibility of real losses is very low.
If a large enterprise does not even have the confidence to lose money, it will not last long.
The key is that we have to consider long-term things.
Three years later, the money will expire, and the astronomical debts will expire. It is impossible for us to borrow money without spending it. By then, the money will be spent and the funds will not flow back.
It's definitely not back!
Whether it is the retail industry or commercial real estate, it is unlikely that all funds will be returned within three years.
At that time, there will be other debts in the distance, and the debts that may be due in one lump sum will be 300 to 400 billion yuan.
At this time, can the distance be withstood?
Also, even if you follow Mr. Li, 30 billion is enough. You said that you will raise 300 billion yuan. Obviously, there are other plans.
And are these plans able to quickly recover funds or are they also used for retail and property?
If so, then what I just said will become a fact. Three years later, hundreds of billions of dollars will be paid. Even if a trillion-dollar group is formed in the distance, hundreds of billions of dollars will be enough to defeat us in an instant!"
After Chen Lang finished speaking, Yuan Chengdao nodded and said, "Mr. Li does need to consider this point.
All the money is spent, so it is not so easy to return.
Therefore, even if you want to invest or even raise funds, I think you have to divert installments and you can't bear such a great pressure and burden at once.
We will proceed step by step in half a year so that we will not put huge pressure on us.
You said that you are not mainly profitable now, even if you maintain a balance of income and expenditure, the group will not have any surplus every year when investing.
Three years later, the group cannot afford so much money.
Once we can't afford so much money, even if our fixed assets exceed one trillion yuan, we may be hit by the impact of hundreds of billions of dollars in debt."
At this time, what everyone is actually talking about is not the current matter.
But what should I do in three years?
Li Dong is right. Borrowing money and investing now can impact some companies and increase their strength and competitiveness in the distance.
Including the issue of payment for goods, the share of the use can also be increased significantly from afar.
The key is, what about three years later?
Three years later, hundreds of billions of dollars will be paid, so what can I do if there are many fixed assets in the far-floor area?
To be continued...