In the bustling real estate world, Evergrande has attracted widespread attention with its unique business model. A piece of land and an investment of ten yuan seem to indicate that Evergrande is about to start its journey of wealth. However, as the story unfolds, the truth behind this business game gradually emerges.
Evergrande bought the land at a cost of 10 yuan, but in the key link of building a house, they chose to sit on the sidelines. Not only did they not invest a penny, but they mortgaged the land to the bank and easily obtained a loan of ten yuan. Such an operation allowed Evergrande to skillfully transfer the financial pressure to the bank, while it sat back and enjoyed the results.
After obtaining a bank loan, Evergrande further unleashed its capital magic. They introduced a pre-sale system to get people to pay for their future houses, and successfully raised 20 yuan. At this time, if Heng** had chosen to operate steadily, pay off the bank arrears and build a house, they could have made a steady profit of five yuan.
However, Evergrande is not satisfied with this. They took the thirty dollars they had received from the bank and the pre-sale and embarked on a more daring investment. They kept buying new plots of land, repeating the previous operations, and the money snowballed bigger and bigger. In the end, Evergrande had a huge pool of 90 yuan.
However, these funds were not used to build the house. On the contrary, Evergrande has invested its funds in other cities, and even set foot in many fields such as automobiles, mineral water, football, film and television. These seemingly diversified investments are actually part of Evergrande's capital game.
As the Evergrande empire expanded, problems began to emerge. The pressure on foremen to advance money to build houses is increasing, banks are starting to collect debts, and pre-sold houses are struggling to sell. Evergrande's capital chain began to be tight, and the problem of unfinished buildings gradually surfaced.
In the face of the crisis, Evergrande tried to solve the problem by concentrating superior forces. They halted the construction of part of the site, hoping that the bank would continue to lend money. However, this strategy did not work. As news spread, debt collectors sprung up, the pre-sale market fell into a slump, and banks tightened their loans. The Evergrande empire is in trouble.
At this time, a high-ranking man appeared. He saw the crisis of the Evergrande empire, but also saw the business opportunities in it. He offered to help Evergrande deal with the problem of unfinished buildings, and successfully guided small companies to take over the construction of unfinished buildings in rural areas. Although this move has alleviated some of the pressure on Evergrande, the problem of unfinished buildings in the city is still severe.
Hotspot Engine Project Masters struck again in an attempt to replicate previous successes. This time, however, it failed. The reason is that Evergrande used the city's quasi-real estate for financing at the beginning, resulting in complex interest disputes that are difficult to resolve.
The crisis of the Evergrande empire has caused widespread concern. People are beginning to question Evergrande's business model and capital operation. Some people think that Evergrande is too risky and greedy, which has led to today's predicament. There are also those who believe that Evergrande's failure is the inevitable result of the laws of the market.
However, no matter what the outside world says, the Evergrande empire has fallen into a deep predicament. Their capital chain is broken, the problem of unfinished buildings is difficult to solve, and their reputation has been seriously damaged. Faced with such a situation, Evergrande seems to be unable to get out of the predicament.
However, the story doesn't end there. Has the Evergrande empire gone bankrupt? Can their problem of unfinished buildings be solved? These questions remain unanswered. But what is certain is that the rise and fall of the Evergrande empire has become a profound lesson for us to be cautious in the business world and not to overlook long-term risks for the sake of short-term gains.