The father has saved hundreds of billions of family assets in 40 years, and his son is about to lose in 4 years

Big Cat True Detective Agency

2024-05-16 16:56Posted in Beijing Finance and Economics Creator

Author | Cat brother

Source | Big Cat Finance Pro

The father worked hard for 40 years to save hundreds of billions of family property, and his son was about to lose after 4 years of taking over, leaving hundreds of billions of debts.

Such a miraculous thing is right in front of you.

On May 16, ST Shimao was delisted, and the stock price was 0.43 yuan.

This company is an absolute big name in the real estate industry, ranking in the top ten for many years, the previous style has always been "stable as an old dog", come early, earn more, do not rush forward, the boss Xu Rongmao is recognized as the "godfather" of luxury houses, and 1/3 of the mansions in the north are their projects.

But since 2019, the company seems to have suddenly changed its sex, incarnated as a white knight and threw money around, and as a result, it owed hundreds of billions, and now it is delisted, and there is a high probability that it will go bankrupt.

Is this a story?

Xu Rongmao is a native of Quanzhou, Fujian Province, 74 years old this year, their family is a family of traditional Chinese medicine, he went to Hong Kong very early, but he has no skills, so he can only work. It stands to reason that with such conditions, it is more difficult to counterattack.

What did Xu Rongmao rely on? actually relied on stock speculation.

It is said that he later went to a securities company as a broker, and then felt that the stock market might rise, in 1981 he set up a financial company to engage in investment, worked for six or seven years, in October 1987, the Hong Kong stock market had a super stock crash, but the miraculous thing is that Xu Rongmao cleared his position before that, it is said that in recent years, he earned 500 million yuan by speculating in stocks.

This story is theoretically possible, from 1978 to 1987, the Hong Kong stock market rose 7 times in 9 years, but Xu Rongmao purely relied on his own financial management to earn commissions, and there were other nobles to help, why could he accurately escape the top? Why didn't you speculate on stocks later? It's not clear.

Even the figure of 500 million, he later denied it.

But he must have become a rich man, because he immediately returned to the mainland, first investing heavily in the textile industry, and then buying 6,000 acres of land in his hometown in Fujian Province to engage in real estate.

But it didn't take long for the environment to change, he immigrated directly to Australia with his wife and children, and after two years, he saw that the general environment was stable, and the pre-sale flowers in Hainan had gone crazy, and he felt that this was the hot land to make a lot of money, so he killed it again.

At this time, the land he bought in Fujian had appreciated by 50%, Xu Rongmao felt that he could definitely make a lot of money by engaging in real estate, and in 1993, he spent another 200 million yuan to buy 500 acres of land in Wuyishan.

But in 1994, real estate ushered in the first wave of regulation, credit was not given, the scale of investment was reduced, everyone felt that it was no good, Xu Rongmao engaged in a contrarian operation.

This year, the real estate industry came out with an important policy, that is, "housing reform", to put it bluntly, is the prelude to the reform of commercial housing in 1998.

At that time, the land price in Beijing was 2,000, and Xu Rongmao spent more than 4 billion yuan to build 100,000 square meters of Asian Games Garden, 200,000 square meters of Huaao Center, Yujing Garden, 60,000 square meters of Zizhu Garden and other real estate projects.

And he got the quality of the house up, so the project sold very well.

After 5 years of work, Beijing's real estate projects made a lot of money, but at this time, Xu Rongmao actually gave up Beijing and went to Shanghai.

His reason was also relatively simple, at that time, Shanghai was a big depression compared to Beijing.

In 1999, after moving the company to Shanghai, Xu Rongmao engaged in projects such as Shimao Plaza, Riverside Garden, Shenkeng Hotel, etc., and he got all the dividends of the real estate industry.

And Xu Rongmao is not the same as ordinary real estate developers, he has higher requirements for houses, and several high-end projects have become recognized as the "godfather of luxury houses" and "landmark builders" in the industry.

Of course, their family's wealth is also rising, and they have been in the top few positions on the rich list for many years, and they were once the richest man in Shanghai, but Xu Rongmao's overall style is low-key, and after being on the list, he also asked people to remove his name many times.

In 2017, the Forbidden City wanted to buy back a national treasure "Silk Road Landscape Map", but the money was not available, at this time Xu Rongmao spent 130 million to buy it and donate it to the Forbidden City, and in this year, Shimao became a 100 billion real estate company.

At this time, Xu Rongmao is almost 70 years old, and there is only one thing left to worry about, how can the second generation take over?

Xu Rongmao has a daughter and a son, and his daughter once helped Xu Rongmao manage the company very well, but within a few years, he stopped doing it inexplicably.

In fact, everyone knows that the Xu family is from Fujian, and their son must take over, so no matter how good her daughter's performance is, she has to give way.

Xu Rongmao must have high hopes for his son.

When he started working in real estate, his son Xu Shitan was only a teenager, and Xu Rongmao named the company Shimao, which was taken from his son's name and his own name.

Xu Rongmao worked hard to train his son, and as soon as he graduated from college, he first let go to the grassroots level, local sales, and make hundreds of calls every day, and after a year, Xu Rongmao directly handed over the most high-end real estate in Shanghai at that time - Shimao Riverside Garden to his son to practice, when Xu Shitan was just 23 years old.

This project must be successful, and in the next four years, Riverside Garden will be the top seller of real estate in Shanghai.

So, slowly he became the director and vice chairman of the group.

Why does Xu Rongmao work hard to train his son?

Because he is really patient, he has been carrying it hand in hand for almost 20 years.

If the product is not good, teach how to change the product; If sales are not good, poach people from Longhu and learn from others how to bring up sales; If there is too much inventory, how to remove it; When the market is good, how to scale up.......

Finally at the end of 2018, Xu Rongmao felt that his son was mature and it must be no problem to be alone, so he handed over the class.

This year's Shimao is also at the highest peak in history, with total sales and sales area being the highest in history, and the company's finances are also very stable, with sales of 86 billion yuan and an asset-liability ratio of 74%, which is at a level with large central enterprises such as Poly, and much lower than Vanke, Sunac and Country Garden.

However, friends who are more familiar with history know that if the prince is too long, he will generally have a mess, either he wants to take the position early, or he wants to show his ability early, so he always does something different from his father, and it is almost the same in the enterprise.

Xu Shitan was holding his breath.

Before the official succession, he was actually in charge of the company for seven or eight years, but many of Xu Rongmao's old courtiers seemed to have doubts, feeling that the style of the father and son was a lot different, and some people couldn't adapt to it and left.

And when Xu Shitan was in charge of the company, his sales performance was average for several years, and Xu Shitan made a name for himself by sales, but when sales were not good, his father didn't give him time, and dug Cai Xuemei from Longhu to clean up the stall.

I don't know what impact these things have, anyway, Xu Shitan has been waiting for a very long time, almost 20 years.

So after taking over, he said, I'm just waiting for an opportunity to get back what I lost.

Then there was a noticeable change in the style of the company.

In the past, Xu Rongmao was one to see two and slow to pass, and Xu Shitan's strategy was a "big plane".

What does it mean, the "big plane" he wants to drive, real estate is the main body, hotels and properties are the wings of the aircraft, and high-tech, medical care, pension, and finance are the tail wings.

The overall idea is to be higher, faster, stronger.

In 2019, he stunned the entire real estate industry.

In 80 days, he spent 20 billion yuan to buy more than 20 projects from Tahoe, Vantone, Kaicheng, Yuetai, Fusheng and other companies, doubling Shimao's land bank.

His goal is simple, that is, in 2020, to reach the sales target of 300 billion, which is 3.5 times the sales of his father at his peak.

What happened in the end?

In 2020, Shimao's sales will be 135.3 billion, the best performance in history, but less than half of Xu Shitan's target.

You're sure to have said it, and that's good.

Completely wrong.

More than the increase in sales, it is debt.

Since 2020, Shimao's sales have been declining, but the debt has blown up like a balloon.

In 2022, sales will be 63 billion and liabilities will be 540 billion, what does it mean?

Compared with the peak in 2020, the income has fallen by half; The debt has almost doubled from the 270 billion he took over.

It is too difficult to repay 540 billion debts with 63 billion revenues, so in July 2022, the company will be thundered.

In fact, before, the Xu family already knew that this matter was irreparable.

In February 2022, Xu Rongmao sold his mansion on Shouson Hill Road in Hong Kong, but he still sold it at a loss, which shows how urgent it is.

Then the foreign consortium asked Xu Shitan for debts, but he couldn't pay it back, and the domestic banks asked for debts, and they couldn't pay it back.

The stock prices of the two listed companies have long fallen, so let's send a good financial report to cheer up, but the independent directors said that they could not guarantee the authenticity, and the accounting firm issued a report that could not express an opinion, and they did not believe it.

Last month, CCB simply did not wait and directly filed for bankruptcy liquidation.

The delisting of ST Shimao is also something that has been scheduled for a long time.

Xu Rongmao's 40 years of work has earned assets mainly in Shimao Group, and it is estimated that he will basically not be able to keep it.

Why? By the end of last year, the group borrowed 264 billion yuan, of which about 199.4 billion yuan needed to be repaid this year, but only 21.4 billion yuan was on the account, which was too far behind.

Therefore, it makes sense to say that the rich second generation must not do business.

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