Chapter 218 Leverage, Super Doubling

Xie Jingxing kept his promise and took Zhou Fenglan to the North Shooting Range in the CP District to play with guns the next day.

Since it was built by a national light weapons research institute, it has a relatively complete range of firearms and bullet models and is one of the most versatile in the country, and there are also many corresponding requirements.

You have to register and apply in advance, and outsiders also need a letter of introduction.

Xie Jingxing had none of these. Just when he was thinking about entering the shooting range by face recognition, a guy with a flat head popped out from a corner and called the shooting range receptionist to the corner to whisper for a while.

Then they enjoyed the newly established VIP channel service. They did not have to queue up and could shoot at any target they wanted. If they got tired of playing, they could enjoy tea and snacks in the lounge.

At noon, the unit canteen provided a small lunch service, during which the vice chairman enthusiastically introduced the history of the country's light weapons development and commemorated the martyrs. It was indeed a fulfilling red education experience trip.

After lunch, Xie Jingxing sent Zhou Fenglan to visit the museum next door. He went back to the shooting range and called a mysterious little flat-headed man to compete in shooting.

The gunshots rang out evenly and orderly. A woman with short hair and plump red lips walked closer, clasped her arms, squeezed her chest, and watched quietly.

"What a pity. I'm only one shot away. I'll take a break and shoot again."

Xie Jingxing took off his noise-cancelling headphones, listened to the total number of targets on the intercom, and turned to look at his sister-in-law: "Mr. Yu, long time no see, how are you doing recently?"

"Thanks to you, it's not bad." Yu Nian was very frugal with his words.

Xie Jingxing turned off the safety of the rifle in his hand, removed the magazine, and handed it to her: "How many shots?"

Yu Nian glanced at the empty magazine in his hand, which showed how worried he was about her.

However, thanks to this good brother-in-law, many projects of Didi, Kuaishou and ByteDance are developing well. It can be predicted that the investment she pushed China Merchants Capital in them will make a lot of money.

"The valuation of Dianping's acquisition of Ele.me increased a few days ago, and Grapefruit Capital, as an early investor, had a return rate of more than ten times. Of course, this is just the beginning, and there is still room for further growth."

Arriving at the public rest area, Xie Jingxing thoughtfully helped to pull out the chair: "This part of the business growth is expected to mainly come from community group buying, fresh food supply chain and various business ecosystems. Based on this, Yunhe Logistics and Xinda E have carried out in-depth strategic cooperation."

"Agricultural production, fresh food logistics, storage and transportation, and terminal sales scenarios. Do you want to integrate the agricultural industry chain?"

Yu Nian sat down slowly, raised his hand to cover his mouth and yawned.

After receiving harassment from Xie Jingxing on WeChat early last night, she immediately notified her subordinates to work overtime to sort out Xiyou and Taihe’s recent investment layout in the local life sector.

The more I read, the more confused I became, and I couldn't sleep all night. Finally, I came to the conclusion that Yunhe Logistics needs to introduce leading state-owned enterprises to invest in it, not limited to the financial field, and the more state-owned giants that are closely related to its business, the better!

This is her sensitivity as a result of working in an institutional unit, followed by her judgment as an investor.

The merged "New Da'e" is a downstream industry in the entire agricultural industry chain. Catering takeout, catering group purchase, or ToB food supply chain can essentially be classified as terminal sales forms of agricultural commodities.

Yunshan Group is an upstream industry that integrates various business forms on the agricultural commodity production side, while Yunhe Logistics is in the middle and completely dismantles midstream industries such as traditional distributors and regional agents.

Yunshan Group + Yunhe Logistics + Xinda'e can be compared to a dumbbell, with big ends and a thin middle, and none of the three are indispensable.

The vision of the rural teacher who always shouted that there would be no difficult business in the world and used the Internet to subvert the traditional business model and create an ecological closed loop was far from being achieved. However, it was unknowingly revealed by Xie Jingxing.

The ecological closed-loop framework that integrates agriculture and the Internet has been initially formed. All it needs to do in the future is to continuously absorb nutrients and grow flesh and blood. Sooner or later, it will grow into a giant.

The Yunshan Group is strong and cannot be easily moved, while the New DAE is too weak at the moment and can be easily crushed by just a piece of policy paper, so the adults look down on it.

Therefore, only Yunhe Logistics is left, which actively absorbs state-owned capital and becomes a part of the ecological closed loop, rather than an independent kingdom of so-called "Xie capital" that is impenetrable and cannot be penetrated by water or needles.

Sorting out the key points properly, although Yu Nian was a little tired, his body and mind were clear. Thinking about it, he couldn't help but cross his legs and picked up the mug to taste the mellow coffee. He just said lazily that you always have to have an attitude when asking others to do things for you.

"Can you help me arrange a meeting with your group leader?"

Since the sister-in-law didn't believe the nonsense about limited financing shares, Xie Jingxing went straight to the point.

Yu Nian raised his eyebrows: "China Merchants Capital is a wholly-owned direct investment subsidiary of the group. How big a leader do you think is considered a leader?"

"Leader, China Merchants Capital is also working under your leadership?" Xie Jingxing's eyes lit up.

Yu Nian was choked and speechless. The history of China Merchants Group can be traced back to the time of Li Hongzhang in the late Qing Dynasty. It is now a vice-ministerial unit with a huge asset of nearly one trillion yuan, the largest of which is China Merchants Bank.

The other asset businesses are similar and there is no obvious difference in status. How could she lead a department of the same level?

Moreover, the capital structure of China Merchants Group is complex, as it is a joint venture between the group and the private enterprise 'GLP'.

This private enterprise was originally the Asian branch of the American "logistics real estate" giant Ambu. During the financial crisis in 2008, its parent company Ambu sold part of its shares to Chinese local capital. Since then, it has fully entered the domestic market, and has completely separated from its parent company and listed independently on the Singapore Stock Exchange.

Prologis' business model is very simple. It buys land in China to build logistics warehouses, and then rents them to third-party companies for rent and management fees.

It is very complicated. In the past three years, they have acquired hundreds of logistics and warehousing land in China, with a market share of over 60%. Almost all logistics companies and international traditional industrial companies that ordinary people can name have rented their warehouses to some extent.

The largest domestic "logistics real estate" company has a market share of only 6%, ranking second. The rest of the companies combined cannot catch up with Prologis.

There are many reasons, but they can be summarized in one point: logistics real estate is a real asset-intensive business, and no one in China can understand their financial leverage operation model.

So they did the same thing as Yunhe Logistics, first establishing China Merchants Capital in a joint venture with China Merchants Group and sharing some of the financial leverage investment business.

At the beginning of this year, several state-owned giants including China Life Insurance, China Post Life Insurance and Bank of China International were introduced to invest in the company, demonstrating our sincere desire to serve the people.

“China Merchants Capital had a share in the investment in SF Express last year,” Yu Nian reminded with a hint of meaning.

Xie Jing Xing propped his chin up in thought: "I remember that they wanted to give me some investment shares. It seems that you do have a say, huh?"

"Don't even think about it. They were so scared at the time that they believed everything they heard and wanted to show kindness and make friends with all the people with real or fake backgrounds. Now try to see if they will pay attention to you."

Yu Nian complained with disdain: "Why do you think I took the initiative to ask you out at that time? Fortunately, you are not stupid enough to accept their benefits and join SF Express."

"With a market size of 1000 billion US dollars and a market share of more than 60%, do you have an intuitive idea of ​​what kind of market this is?"

She leaned forward and advised earnestly: "Just focus on your closed loop of agriculture and Internet ecology, which is profitable enough. Logistics and real estate are too expensive. I don't think Chairman Xie Cheng will support you."

"That's right. When I just returned to China last year, I suggested that he expand the scale of logistics, but he didn't agree. He even used this matter to criticize me yesterday." Xie Jingxing shrugged.

Yunhe Logistics was initially positioned as a supporting enterprise of Yunshan Group. It built and operated its own warehousing and transportation, so it did not need to rent warehouses from third parties and did not have the energy to go deep into upstream industries to build a national warehousing network with heavy assets.

Strictly speaking, when Prologis saw his layout of warehouse centers in Yunnan, it would be a big deal for them to call him "big brother". With a scale of hundreds of billions of dollars, they are only working towards the goal of monopolizing rent collection, while he not only wants to collect rent, but also directly deliver goods to tenants.

In his heart, Old Xie was indeed dissatisfied and felt that he had gone too far, but it must be admitted that he had used the entire agricultural industry chain ecological closed loop to force the intention of building his own storage center back to a reasonable range before he raised it high and then gently put it down with a slight knock.

"If you only see this as a link in the existing layout, why do you want to meet with our leader?" Yu Nian unconsciously admitted that she was not old enough.

Xie Jing Xing looked away and looked out the French window: "We are going to introduce state-owned giants anyway, so we just go with the flow."

"What's your business?" Yu Nian frowned.

After all, she is a member of the investment decision-making committee of Grapefruit Capital, and has the right to know that it helped Yunhe Logistics and Yunnan local urban investment to use 50 times leverage to build a warehousing center business.

It's reasonable to build a system, but if they really want to enter the logistics real estate field and compete with Prologis, then she has the obligation to persuade or even stop them for both public and private reasons.

“Ask your leaders whether they are willing to support Yunhe Logistics in entering the logistics real estate industry.”

Xie Jingxing said frankly: "If you don't vote, I will find someone else."

"Disgrace yourself."

Yu Nian gave his evaluation without hesitation. Another reason that cannot be ignored is the government's public relations resources, as domestic companies focusing on logistics real estate are currently unable to make good use of capital leverage operations.

Logistics and warehousing land requires geographical location and transportation facilities, and such land can make more money by selling it to real estate companies. Therefore, all cities across the country are very stingy in approving special land use for the former.

Taking Shanghai as an example, more than 20 pieces of logistics and warehousing land are concentrated in a few districts, and only three pieces of warehousing land were approved throughout last year.

Traditional logistics companies, logistics real estate companies, and even Internet giants such as JD.com and Alibaba that want to operate their own logistics have joined in to grab the market.

Alibaba, an economic pillar of Hangzhou, actually spent several years building Cainiao Network's first self-operated warehousing center in Tianjin, which shows how complicated the competition is.

In short, Xie Jingxing wanted to be the biological son of China Merchants Group and let Prologis become his godson. In the future, when bidding for land and other government public relations resources, China Merchants Group would have to feed him the first bite.

The key point is that even if Prologis is the adopted son of the joint venture, SF Express is still waiting eagerly. Why should you be the biological son just because you want to be the biological son?

"I said, I'm just asking, the important thing is participation." Xie Jingxing was very calm.

Yu Nian was unmoved: "Let's put aside the issue of land acquisition, how do we solve the funding problem?"

"Leverage, super double!" Xie Jingxing spoke out the ultimate killer move without hesitation.

He has been doing a lot of accounting recently and feels that he has no money. In fact, he has hardly used leverage in the past six months. After hedging and balancing all the assets under his name, the leverage ratio is less than 30 times.

After all, he is a reborn capitalist. If he tells others about this leverage ratio, his reborn friends in other dimensions will laugh at him.

Yu Nian knocked on the table and said seriously: "The domestic 'REITs' tool is not perfect."

"What I want is that 'REITs' are not sound! Under the domestic restrictions, Yunhe Logistics and Prologis are not familiar with 'REITs', which is fair and just." Xie Jingxing smiled brightly.

"..."

Yu Nian was stunned and speechless. He held his forehead with his hand and two words flashed through his mind - madman.

Xie Jingxing continued to speak: "And sooner or later, the country will completely liberalize 'REITs'."

"What do you think will be released and when?" Yu Nian fell into a vicious circle of rebuttal.

"In five or eight years, when local land finance can no longer afford public infrastructure spending, REITs will be completely ripped open."

Xie Jingxing became more and more excited as he spoke: "I hope to use my own abilities to accelerate the process of promoting the integration of domestic and international finance."

"Ha, the great rejuvenation dream?" Yu Nian laughed angrily.

"That's right. When I said this during my internship at Juntai last year, many people accused me of being pretentious and hypocritical. But the facts have proved that so far this year, domestic cross-border mergers and acquisitions have increased by 30% compared with the same period last year, and the top three countries and regions where the main targets are located are the United States, Canada, and Australia."

Xie Jingxing added proudly: "I admit that the main factor is that the Belt and Road Initiative has limited capital outflows, but many companies have acquired energy, mining and telecommunications companies in Europe and the United States that they would never dare to think of. They have followed the path I opened up and imitated the M&A equity structure template I created."

"I did that right?"

He finally restrained his expression and asked back word by word.

Yu Nian's momentum stagnated, and even though she fell into the inertia of rebuttal, she was unable to make any response.

Based on Sony's entry into Hollywood in the late 1980s, Xie Jingxing built a complete set of experience in the struggle of foreign investors to enter the United States, which goes beyond mergers and acquisitions.

From international politics to humanities and public opinion, the actual M&A plan is the least noticeable part. Asian companies that want to enter Europe and the United States in the future will be the beneficiaries who learn something from it.

He won various economic awards last year, and the most frequently mentioned comment was: Xie Jingxing promoted the process of international financial globalization.

He wrote the graduation thesis for all the interns the company recruited this year.

Yu Nian relaxed his body unconsciously. The warm sunlight outside shone onto the man through the bright floor-to-ceiling windows. The light was so bright that he couldn't see his face clearly.

"The next one will be 'REITs'." Xie Jingxing stated with a slightly raised tone.

REITs, the full name of which is real estate investment trusts, securitize real estate and trade it in the secondary market.

This approach is very mature in Europe and the United States. Companies issue bonds in the secondary market to buy entire residential apartments for rent, and the rent and net profit from management and operation are distributed to investors holding the bonds.

Under the domestic context of "housing for living, not for speculation", REITs funds are now only allowed to invest in certain areas in a restrained manner to prevent real estate speculation groups from treating more than one billion people as tenants.

Highway toll stations are typical examples. The state provides the land and capital to build roads, and the latter makes money by collecting rent in disguised form.

In local cities, the sanitation workers who get up at four in the morning on the streets and the street lights that stay bright all night are not blown by the wind, but are supported by public infrastructure paid for by local finances.

But local fiscal funds also have a source, and the land economy will eventually come to an end.

In a few years, when local cities run out of money, REITs will naturally be opened up on a large scale to enter related fields. Xie Jingxing really just went with the flow and did not overstep the mark in the slightest.

"Do you know Prologis' operating model in China? They don't just rely on REITs." Yu Nian compromised helplessly.

(End of this chapter)