I'm back in 1990

Chapter 877: Returning to Old Habits

"Mr. Huang!"

On the first day of school, Huang Xiaochuan took his two children to school. He had just arrived at his office when Gao Song came to report to him.

"What is it?"

"Nan Hui, the CEO, recently registered a real estate company, and it seems he intends to..." Gao Song said, watching his boss's reaction.

Huang Xiaochuan was preparing to brew tea when he heard this, and he stopped what he was doing.

After a moment, he nodded and said "Oh!" to indicate that he understood.

Gao Song then left the office. He had said everything he needed to say, and he would just follow orders from now on.

Huang Xiaochuan brewed tea as usual, starting his morning work with a cup of tea.

He was both surprised and found Nan Hui's behavior normal.

Surprisingly, Nan Hui couldn't contain herself after only a short time having some free time.

He thought it was normal, because he had long expected Nan Hui to do this.

She was a single woman with no children. She thought she could control the relationship and found a man who was more than ten years younger than her, but she ended up losing everything.

Now she has a large sum of money in her hands. Although she doesn't have to worry about wealth, given her personality, she definitely can't stay idle. After all, having something to do is better than staying at home and daydreaming.

Moreover, given her past experiences, it was destined that she could not live a normal retirement life like an ordinary retired aunt.

However, the real estate industry has only enjoyed its glory days of the last decade or so. In the near future, the real estate market will return to normal and will not be as frenzied as it is now or in the years to come.

The success of Guangda Real Estate was largely due to its massive financial investment. This investment did not refer to bank loans; Guangda Real Estate's debt ratio was only 17%, with most of its funds coming from money earned by Huang Xiaochuan overseas.

Moreover, Guangda Real Estate differs from other real estate companies in that it does not follow a high-turnover strategy. Instead, it relies on its own strength to steadily develop high-quality residential and high-end commercial complexes.

If Guangda Real Estate relies on its own funds and adopts a high-turnover model, then it is now the largest real estate developer in China, without exception.

In Huang Xiaochuan's view, that model is an extreme form of greed. Although it allows real estate companies to expand rapidly, the debt ratio is also alarmingly high. Once the real estate market shrinks, the consequences are predictable.

Therefore, although Guangda Real Estate is not the number one real estate company, it is the most powerful real estate company, a fact recognized within the industry.

Nan Hui wants to return to her old business and continue in real estate. However, given her current financial situation, she cannot imitate the model of most real estate companies. Instead, she can only adopt the model of most real estate companies, which is to use the main funds to bid for land. After acquiring the land, she immediately uses the land as collateral to obtain loans from banks, continue bidding for land, and continue to obtain loans. The construction of the buildings is contracted to construction companies, which advance the funds for construction. The sales of the properties are handled by outsourced sales teams. This forms a closed loop, using only a small amount of capital to leverage a huge business, but the risks are extremely high.

Huang Xiaochuan shook his head, mocking himself for worrying about others, and then put the matter out of his mind.

Nan Hui registered her new real estate company in Shanghai, and strongly recommends the TV series "1990, I'm Back"! (Click here for the full story.) The company is called "Jiangcheng Real Estate." With her current capabilities, she can't yet operate in Shanghai, as land there is extremely expensive, with astonishingly high auction prices.

Therefore, she chose a provincial capital city with rapid economic development, a city with development potential but less competition than first-tier cities.

She used the proceeds from the sale of her shares as seed capital to start her new company's first real estate project. It was a medium-sized residential plot in the new district of the provincial capital, which did not pose a significant financial burden for Nan Hui, who was just starting out.

Since this was Nan Hui's first project, she devoted herself entirely to it, personally handling everything from design schemes, planning approvals, construction design bidding, general contracting bidding, communication and consultation with the government, and the development of marketing plans.

This is all thanks to her past experience managing Guangda Real Estate, which gives her a wealth of practical operational experience. She is very clear about this, and therefore is very grateful to Huang Xiaochuan.

However, insufficient funds are a weakness of Jiangcheng Real Estate, preventing it from adopting a heavy asset, slow turnover model like Guangda Real Estate.

Therefore, based on her financial resources, Nan Hui, as Huang Xiaochuan predicted, chose the most common high-turnover model in the market: quickly acquiring land, quickly developing, and quickly selling. As soon as the piles were driven in, the sales office was built and the pre-sale stage began.

In fact, Nan Hui knew the drawbacks of this model, which she had learned from Huang Xiaochuan. However, she had no choice. Since she had made up her mind to return to her old ways, she could only grit her teeth and continue.

Moreover, Nan Hui believes this is the only way for her to start over, but she tells herself that she will strictly control the risk and not excessively increase the debt ratio.

Unfortunately, she was too naive. Once the snowball started rolling, it wasn't something she could stop at will.

Although Huang Xiaochuan didn't want to know what Nan Hui was doing, Gao Song would dutifully tell him about Nan Hui's activities from time to time.

"Mr. Huang! The land that Nan Huinan recently acquired in the Huju Hexi New District is in a good location, but the price of the land is very high, which has exhausted most of Jiangcheng Real Estate's working capital. Now that the project has started, she is contacting several banks to seek loans."

As Gao Song spoke, he placed a report in front of Huang Xiaochuan. "In addition, according to some sources..."

Huang Xiaochuan said unhappily, "Why are you stammering?"

Gao Song then said, "It seems she has also been in contact with some trusts and private equity funds, possibly to reserve funding sources for future projects."

Upon hearing this, Huang Xiaochuan picked up the report in front of him and began to read it.

He quickly finished reading the report, then closed it again: "Still can't sit still!" He gave an objective assessment.

"Mr. Huang, Guangda Real Estate also has a project in Huju. Would you like to contact General Manager Mai?" Gao Song didn't finish his sentence.

But Huang Xiaochuan already knew what he wanted to say, so he waved his hand and said, "Alright, the market is so big, everyone should do their own thing, let her be."

He then instructed Gao Song: "From now on, let Guangde handle matters concerning Nan Hui and her company as usual. There's no need for him to report to me specifically anymore. Unless something happens to her, then you can tell me."

"Understood, Mr. Huang!" Gao Song nodded in agreement and then left the office.