After failing to negotiate a raise, Xu Pidai decided to start his own business. In 1996, he traveled alone to Sheep City and founded Hengda Real Estate.
He first took a daring loan of 5 million yuan from the bank. He then acquired a residential plot of land on an installment basis and began selling houses using the presale system.
At the time, Xu Pidai focused on small-sized apartments, which were rare on the market. His prices were also lower than surrounding developments, so his properties sold out almost instantly upon release. As a result, Xu Jiayin successfully earned his first pot of gold.
Afterward, Xu Pidai rapidly developed over a dozen projects in Sheep City. In less than four years, Hengda became the top player in the city's real estate market.
After a few years of company growth, Xu Pidai prepared for an IPO. In 2007, to push for the listing, he frantically acquired projects in the market, causing the company's debt ratio to surge within a single year.
