Chapter 581: Recouping Large Funds
Chapter 581: Recouping Large Funds
Lu Jiaxin initially thought that it would take at least a month or two to sell the 400+ apartments, but she was surprised to find that they were all sold out in just over half a month, with the 150+ units in Greenwood Court being the first to go.
This experience gave Lu Jiaxin an even deeper understanding of the Hong Kong property speculation team's capabilities.
Chen Ming updated her on the sales figures: the luxury apartments at Regent Garden had fetched 3.2 billion yuan, with an initial payment of 30% and the remaining 70% borrowed from the bank. As there was still a plot of land left unsold, Xin Xin Property had repaid the bank 1.3 billion yuan, leaving an outstanding debt of 400 million. This meant that the Regent Garden project had recouped 1.9 billion yuan in funds. The high-end apartments and residences in Sham Shui Po and Causeway Bay had brought in a combined total of 2 billion yuan, with 880 million yuan used to repay bank loans, resulting in a recoupment of 1.12 billion yuan.
Lu Jiaxin calculated that this round of property sales had brought in a total of 3.02 billion yuan in funds.
Chen Ming nodded, "Yes, we've recouped 3.02 billion yuan. With the original 190 million yuan in our account, the company now has a total of 3.21 billion yuan."
As a property rental company, they only needed to keep a few hundred million yuan for operational purposes. Therefore, these funds would soon be transferred elsewhere.
Lu Jiaxin asked, "What were the costs, and how much profit did we make?"
Chen Ming smiled, "For the Greenwood Pavilion project, after deducting subsequent payments for taxes and other expenses, our net profit for the two blocks of luxury apartments is 1.02 billion yuan."
It must be said that the boss has a great eye for opportunities. In less than a year, such a substantial profit has been made. Although it rode on the wave of soaring property prices, luck is also a form of ability.
"What about the other two properties?"
Chen Ming was very familiar with the details of these projects, "The Sham Shui Po and Causeway Bay projects yielded a net profit of 810 million Hong Kong dollars."
The properties in Sham Shui Po and Causeway Bay were purchased two years ago, and their value has more than doubled since then. However, the longer the holding period, the higher the interest costs.
Hearing this, Lu Jiaxin couldn't help but recall a phrase she often heard in her previous life: "The rich get richer, and the poor get poorer." Take the Greenwood Pavilion project, for example. She had only paid a 30% down payment, with the rest borrowed from the bank. But in less than a year, the property values had increased by more than 65%, and this increment, minus the interest, was pure profit.
In Hong Kong, the liquidation of stocks had brought in 1.57 billion yuan, and the expiration of the Nikkei index had recouped 1.35 billion yuan, totaling 2.92 billion Hong Kong dollars. Meanwhile, Xiaori Duo and Xingcheng's Nikkei index positions had also been closed, bringing in a total of 3.16 billion yuan.
As Lu Jiaxin tallied the figures, she realized that financial investments indeed yielded quicker returns. For Xin Xin Property's three projects, one earned 810 million yuan in two years, a profit margin of 100%; another made 1.02 billion yuan in half a year, a 56% profit. But her bet on the Nikkei index had yielded over an eightfold return in just a year and a half.
Seeing the lack of joy on Lu Jiaxin's face, Chen Ming's heart skipped a beat, "Boss, is there something amiss?"
Lu Jiaxin snapped back to attention and smiled, "You've all done a fantastic job. This month, everyone worked overtime to sell the properties, so I'll double your bonuses."
Chen Ming appreciated Lu Jiaxin's style of management—rewarding hard work with commensurate compensation, instead of dangling empty promises like some bosses. Empty promises might temporarily satisfy, but they don't fill stomachs, which was why he had left his previous company. Lu Jiaxin, on the other hand, offered competitive salaries, year-end bonuses, and additional incentives for outstanding performance.
After leaving Xin Xin Property, Lu Jiaxin instructed Yan Yijun, "Let's go to Wansheng Real Estate."
"Okay."
Upon arriving, Yan Yijun sought guidance from Gu Wenfeng and, following his advice, familiarized himself with the Hong Kong routes. He had his unique memory techniques, which helped him master the city's layout swiftly.
Upon seeing Lu Jiaxin's stern expression, Wang Yadan's heart skipped a beat. Lu Jiaxin usually greeted her with a cheerful smile, so this change in demeanor was puzzling. Could her boss have been caught cheating, leading to this unexpected visit?
Shaking her head to dispel these wild thoughts, Wang Yadan approached cautiously and said, "Mr. Nie is currently discussing matters with Manager Zhu. Please wait here for a moment, Miss Lu."
"Call him and tell him I'm waiting outside," Lu Jiaxin instructed.
Upon hearing that Lu Jiaxin was waiting outside his office, Nie Zhan immediately concluded his conversation with Manager Zhu and personally went out to greet her, leaving the others waiting outside the office.
Noticing her somber expression, Nie Zhan asked, "With the booming real estate market these past two years, we've made substantial profits from Di Li Gen De Ge, and the Sham Shui Po and Causeway Bay projects should have brought in a significant sum as well. Why are you still unhappy?"
"Those three projects made a total of 1.83 billion yuan," Lu Jiaxin replied.
Nie Zhan's profit estimate was not far off, and he was curious about her lack of enthusiasm. "With such substantial earnings, why are you still unhappy? Are the higher-ups at Xin Xin Property being dishonest again?"
Lu Jiaxin shook her head. "No, it's just that I've realized my mindset hasn't been quite right lately. For over a year now, I've been heavily investing in the Nikkei index. Do you know how much I've made?"
"Several times the initial investment?" Nie Zhan guessed.
"Almost nine times, and that's with a conservative strategy," Lu Jiaxin said. "If I had been more aggressive, like during the stock market crash, I would have made even more. I had a terrifying thought—what if I had invested all my money into the Nikkei index?"
Her stern expression wasn't due to anger but rather a sense of apprehension. Even with her current wealth, she had found herself giving in to greed, and the power of human desire was truly frightening.
Nie Zhan, however, found her concerns amusing. "Desire is a natural part of human nature. As long as you're aware of it and can keep it in check, there's no problem. The financial industry can make people overnight successes or leave them bankrupt and destitute. We can invest in financial products, but only with a portion of our wealth, not our entire fortune."
He was aware that Lu Jiaxin had invested three to four hundred million yuan in financial products, which was only a fraction of her total wealth, so he hadn't objected.
"Now I understand why some people would gamble everything, even taking out high-interest loans to invest in financial products," Lu Jiaxin said. "It's like an addiction; you lose control at a certain point."
She felt that she had become addicted to profiting from the Nikkei index. Well, if it was an addiction, so be it. She would continue milking it for all it was worth, going long and then short, filling her pockets to the brim.
Nie Zhan felt that she was being quite rational, especially compared to those who became irredeemably entangled in the financial world. "Don't worry, I'll keep an eye on you to make sure you don't fall too deep."
Only then did a smile appear on Lu Jiaxin's face. "Let's go out for dinner tonight! I feel like having French cuisine. I wonder if Feng Qinglei has any dishes that I like?"
Nie Zhan thought this was an easy request. One phone call would be enough to find out. "Yes, they do. Then let's go there together at 6 o'clock."
However, Lu Jiaxin wanted more than just a lavish dinner. She also desired a vacation, having been busy since the latter half of last year. She needed some time to relax and unwind.
"It's been a while since we traveled together," Lu Jiaxin said. "Let's plan a week-long trip somewhere."
Nie Zhan readily agreed with a smile. "Once I've sorted out the company's matters, we'll go."
(End of Chapter)
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