Sun Hongbin and Sunco

2017-07-13 Financial education

In August 2000, Tianjin hosted the largest land tender in history. Sunco beat many state-owned real estate companies that participated in the bidding, and won two of the 3 brothers in one fell swoop at a price of 172 million yuan. . Sunco couldn’t get enough money at the time, but after all, the kid who had fucked the market in his 20s, with his three-inch tongue, lobbied around and paid the money on time.

In the next two years, Sunco continued to attack the city in Tianjin, insisting on fast running with the agent and real estate development. Between 2000 and 2003, 60 chain stores were opened, covering the whole of Tianjin. market. Especially in the real estate development, Sun Hongbin’s performance is extremely embarrassing, he took the land to be fierce and refused to retreat. Although the cost of land acquisition is higher each time, Sunco’s projects are still prosperous by promoting hype, especially in advertising. Whenever a property is launched, it must be a full-page bombing. Most of the words are “covering Tianjin with blue” or “Tianjin, see me.” Although the way of yelling is a bit savage and rude, but the market reaction is good, the public can still accept the high price of Sunco.

After Sunco won the Tianjin market, Sun Hongbin has already set his sights on a bigger world: all China. In 2002, Sun Hongbin joined the Midtown Housing Network initiated by Vanke Wangshi, a loose organization formed in 1999 by mainstream national developers. Its purpose is to “form a collective procurement, information sharing, financing”. Reciprocal interest platform.” In fact, these functions have not been realized, it eventually became the “Huashan” of the real estate giants, who has the right to speak here, it seems that he has more status in the rivers and lakes. Sun Hongbin joined the network, the purpose is very clear, the sword refers to Vanke, the largest real estate agent at that time, he has to compete with Wang Shiyi.

Sun Hongbin’s first round of Wang Shi’s is the forum led by Zhongcheng Fangwang in 2001. It was proposed that Vanke would join the family to go to the country to buy land. Sun Hongbin, who sits in the corner, said coldly, “Why should I use Vanke as the mainstay? An entrepreneur next to him told him that the Midtown Housing Network was initiated by Vanke. Sun Hongbin immediately slammed back: “Then it will be drafted by Sunco.”

This statement made the entrepreneurs at the time stunned. At that time, Vanke and Wang Shi had been in full swing. Whether it was scale, popularity or the appeal of the corporate world at the time, Sunco and Vanke, Sun Hongbin and Wang Shi were all incomprehensible. It seems that Sun Hongbin is born with a kind of unruly and courage that ordinary people can’t match.

In July 2003, it was another forum for the Midtown Housing Network. At the meeting, Sun Hongbin threatened to surpass Vanke in one fell swoop and set the business rating of Sunco at 4 billion yuan. The words were all silent. The attention of all people was concentrated on Wang Shi, and I wanted to see Wang Shi. How to deal with this naked challenge. Of course, Wang Shi did not show weakness. He immediately retorted: “You can’t surpass Vanke so quickly. Is it necessary to pay attention to controlling risks?”

This open declaration of war was immediately amplified by the media. The major mainstream media rushed to report that Sunco and Sun Hongbin’s every move was the concern of all walks of life. Sun Hongbin, who earned enough attention, immediately announced that Sunco will go to the country’s major strategy. . However, Sun Hongbin is not completely impulsive, he has a strong insight, as Liu Chuanzhi commented that year, Sun Hongbin has seen another round of real estate business opportunities coming. After 2002, the prices of the first and second lines began to blow out. Sun Hongbin judged that with the improvement of the macro economy, the Chinese real estate market will have a long period of rising, which is related to the local economy of Hong Kong, Japan and South Korea. The situation during the takeoff period is very similar.

The nation’s crazy buying of land without cost has become Sun Hongbin’s top priority. The first battle was chosen in Beijing. On December 8, 2003, Beijing first auctioned the bulk of the state-owned land, No.1, North District, Huangcun Satellite City, Daxing District. At that time, there were 10 famous big names such as China Resources, Residence and R&F. Sunco is also among them, not obvious at the beginning. However, Sunco finally won the land with a price of more than 205 million yuan higher than the starting price, which made the industry people unbelievable. At the same time as the Beijing auction, more than a dozen research teams at Sunco have been looking for prey in the country like hungry cheetahs.

From September 2003 to August 2004, developers all over the country have experienced the Shunchi storm again and again. Every time a city is seen, it is regarded as a strange and terrible spoiler, and also gets a “high price maker”. The nickname. In the country, a total of more than 10 pieces of land were purchased, and the construction area was nearly 10 million square meters. In just one year, Sunco changed from a local company to a national company, and the employees from several hundred The number of people has increased to nearly 10,000. In 2003, Sunco’s sales realized Sun Hongbin’s prediction, reaching 4.5 billion yuan, and Vanke at that time was 6.3 billion yuan. From the outside world, the young Sunco may really be able to surpass the industry’s big brother Vanke in the next year or two.

Of course, the crazy expansion moment tests the cash flow of Sunco, and Sunco has been playing the “extreme movement” of cash flow. There are three secrets to maintaining a highly tight cash flow. First, he is very skilled at taking the land. Most of the land that Sunco takes is on the edge of the city or a new center in planning. The characteristics of these land are not. Developers who are concerned about short-term benefits are optimistic, competition is relatively small, but there is potential for appreciation in the future. The local government sells urgently and can start and deliver quickly. It is suitable for building large-scale middle and low-end residential properties. Secondly, in the positioning and design of the project. It has strong realism. Because it is only a residential project, and it is mainly in the middle and low-end, it faces a large customer base and is easy to realize. The last is to improve the efficiency of capital. By greatly shortening the construction and delivery time, Sunco is building. Speed ​​has been creating a “national record” and shortening the budget from half a year to once a month, which will speed up the flow and use of cash.

3 Understand the general trend of the industry, but ignore the risk of policy adjustment, a policy turn finally let Sunco’s capital chain break. While Sunco is madly “eaten” everywhere, the national real estate market has shown overheating. The rising housing prices have affected financial security and social stability, and the public grievances have gradually become boiling. The housing prices that have risen too fast have become the targets of thousands of people. Finally, between March and May 2004, the state introduced a series of strict control measures, including: control of currency circulation and loan scale; strict land management, resolutely stop the chaotic land; carefully clean up and rectify construction and Newly built projects; resource-saving activities across the country. The introduction of this series of policies directly led to a decline in purchasing power, the property market volume shrank rapidly, and the cold winter of real estate suddenly fell.

This has seriously affected the Shunchi rushing on the road of expansion.

On August 7, 2004, Hainan Boao held the annual National Real Estate Forum as scheduled. Wang Shi was the first guest speaker on the first day of the conference. When talking about macroeconomic regulation and control, he went straight to Shunchi and predicted the capital chain of Sunco. Coming soon, criticizing Sunco is the black sheep of the real estate industry. At this time, Sun Hongbin, the performance is no longer as frivolous as a year ago, he admitted that the most uncomfortable thing for Sunco is money, but still insists that “the risk of Sunco is almost zero.” In the following period of time, Sun Hongbin’s entire energy was invested in the search for funds, but at this time the bank’s door has become more and more tight, and loosened indefinitely, sales repayments are also increasingly short due to the decline in performance, and only one trust is left. Road, and want to seek opportunities to list in Hong Kong, it is said that the reason for the final listing was that “Shunchi developed rapidly in 2004, there are 35 projects in hand, and the profit of nitrogen can not be reflected in the current year.”

After the listing of Hong Kong is hopeless, Sunco turned its attention to foreign investment bank Morgan and wanted to negotiate private placements. However, due to the harsh conditions set by Morgan, the negotiations were aborted.

Sunco’s project immediately stopped production and stopped production. Some projects were taken back by the local government. Sunco’s rapid building model also exposed the aftermath, and many owners complained about quality and credit problems.

In July 2006, Sunco had already done its best, and Sun Hongbin had already dealt with various issues. On September 5, Sun Hongbin and Hong Kong Road King Infrastructure signed an equity transfer agreement.

After Sun Hongbin handed over the management rights of Sunco, he focused on an economic business company called Sunac Group.