Chapter 179 Jianlibao Case Analysis
Seeing Xu Liang come in, the staff passing by quickly bowed and greeted him.
"Mr. Xu."
"Where is your Mr. Qiao?"
"Mr. Qiao is in the office."
After Xu Liang nodded, he walked to Qiao Yuhui's office and knocked on the door.
“Come in.”
Push the door and go in.
Qiao Yuhui, who was wearing a white lace round-neck women's shirt and her naturally curly hair tied back, was looking at the documents in her hands intently. When she heard the sound of the door opening, she looked up.
A gleam of joy appeared in her beautiful eyes.
"Why are you here?"
"Passing by, come up and take a look."
"Forget it, I don't know you yet? Tell me, what's the matter?"
< br>"Help me find some reliable traders."
Qiao Yuhui's expression instantly became serious.
"What do you want to do?"
"The main business of Hongyan Fund is PE and private equity funds. It takes too long for PE to come up with typical cases. But private equity should be able to do it much faster."
The two have known each other for almost a year, and Qiao Yuhui quickly guessed what he meant.
“You want to invest in US stocks?”
“That’s right.”
"What do you want to do?"
"The opportunity is not very good at the moment. I will tell you when I have chosen a target.
By the way, collect information on the top 100 US stocks Give it to me, it doesn’t need to be too detailed, just about right,” Xu Liang said.
Qiao Yuhui nodded, "When do you want a trader?"
"It doesn't have to be too early, just get it for me in June."
If he wants to use 9.11 to make money, he definitely can’t wait until 9.11 starts before entering the market. Then tell people clearly that you have questions.
So, you can only do it a few months in advance, and you have to find a decent reason.
But how to find this reason, Xu Liang has no clue yet.
So he didn’t want to discuss this issue with Qiao Yu at this time, because he couldn’t convince the other party at all.
"How is your investigation going with Jianlibao?"
"Based on the information we investigated, it is estimated that Jianlibao's current total assets should be around 3.5 billion yuan, bank liabilities are around 1.8 billion yuan, arrears of supplier loans, advertising expenses and employee wages are around 800 million yuan, and the book value is around 700 million yuan."< br>
“Seven hundred million?”
Xu Liang frowned, this was much more than he expected.
“Actually, the value of Jianlibao is far more than 700 million, but domestic negotiations, especially at the government level, only look at the book value and do not include goodwill.
In fact, Jianlibao As the number one brand in the Chinese beverage industry, it has a high reputation across the country and has remained standing for more than ten years
One of the reasons for the decline in revenue in recent years is that it did not keep up with the popular trends in the beverage market, focused on developing new brands, and tended to be conservative in operations.
The other one, I guess it was Li Jingwei’s intention. "
" Deliberately? "
Qiao Yuhui nodded, "In fact, it is easy to understand. If you want to acquire through MBO, it must be easier the lower the value of the company. On the other hand, no one would be foolish to sell a rapidly developing and well-run enterprise.
It's a pity that he was too eager for success. In just three years from 1998 to 2001, the annual revenue shrank from 5 billion Chinese coins to the current 3.1 billion Chinese coins.
It also spent nearly 800 million Chinese dollars to build the Jianlibao Building, spent 10 million U.S. dollars to promote the company in the U.S. market, and even sought to list Xiangjiang without government consent.
These actions made him look like a defector who had lost all the connections he had accumulated over more than ten years.
So if he wants to acquire Jianlibao through MBO, it is doomed to be impossible. ”
“Isn’t this our opportunity? "Xu Liang smiled.
"Indeed. ”
"If we take over, how do you plan to turn it around?"
"You are wrong. In fact, Jianlibao has been making profits, but the profits are not as much as before. He has not lost money." Qiao Yuhui smiled.
"That's right. It should be called reversing the decline."
"Jianlibao's brand has always been very good. Although its promotion in the United States failed, it was successful, which is in line with China's growing patriotism. , so in a strict sense, we are making money.
So, we only need to stabilize the overall development of the company, lay off redundant employees, and reduce unnecessary expenses, so that Jianlibao can stabilize its position.
Second, new packaging and promotion plans.
The design of Jianlibao is still a design from the 1980s, which is too old. Even Coca-Cola does not always stick to one kind of packaging.
In addition, Jianlibao only has 500ml of this product, which is too single.
We should design 250 ml, 800 ml, or even 1 liter; a series of products with different packaging including plastic packaging and Dura aluminum to meet people's multiple choices.
As for the promotion plan, you can learn from Coca-Cola, be fashionable and avant-garde, and target the young market. ”
Xu Liang nodded slightly after hearing this.
“Aren’t you going to develop new products?”
“First stabilize the Jianlibao brand before talking about other things. You can’t bite off more than you can chew.” A satisfied smile appeared on Xu Liang’s face.
“Now I am finally relieved to let you join the acquisition of Jianlibao.”
"What? You didn't trust me before?"
"A little bit. After all, you haven't worked in the beverage industry."
"Although I haven't done it, it's not like I can't learn. "
"Haha, I know you are good. Let's go, it's noon, let's go have dinner, and come back to read your investigation report after dinner."
Took Qiao Yuhui out of the office.
After lunch, the two returned to Hongyan.
Convene all personnel from the company’s PE department to hold an analysis meeting on Jianlibao.
As Hongyan’s first PE project, both Xu Liang and Qiao Yuhui attach great importance to it.
There are not many people in the Hongyan PE department. Counting department directors, analysts, and researchers, there are currently seven people.
Department Director Liao Yan, Qiao Yuhui’s senior fellow from Jingcheng Securities.
Turn on the central projector. As the head of the PE department, Liao Yan presided over today's analysis meeting.
“According to our investigation, Jianlibao Group is a beverage-based enterprise, with its business including canning, plastics, packaging, printing, clothing, sporting goods and pharmaceuticals. It is a diversified large-scale enterprise group .
Since 1995, it has been listed in China's top 500 companies.
Beverage is its core business and has strong competitiveness in three aspects.
First, Jianlibao Beverage Factory is currently the largest beverage production base in China, and its main production equipment has reached the advanced technology level in the 1990s
Second, Sanshui Jianlibao Fute Container Co., Ltd. is currently the largest can manufacturer in China.
Third, Jianlibao Plastic Products Co., Ltd. is characterized by the production of PET beverage bottles, and its output ranks second in the country.
Strong production capacity ensures Jianlibao's strong competitiveness.
In addition, the flagship product of Jianlibao Beverage - carbonated beverage, is my country's first electrolyte sports drink and an emerging health drink in recent years, which can supplement the minerals and trace elements needed by the human body.
Prevent and correct acidemia and promote body metabolism.
After seventeen years of development, it is currently the number one carbonated beverage brand in China, with national influence. ”
“In terms of product structure, in addition to carbonated drinks, Jianlibao Group also produces drinking water (Tianlang brand), functional drinks (Chaodeneng), fruity sodas (popular fruit pops), and tea drinks. and products such as juice drinks.
At present, the sales of Jianlibao fruit and vegetable beverages are not good and production has basically been discontinued. "
Xu Liang interrupted: "Director Liao, besides Jianlibao carbonated drinks, what other brands are still produced by Jianlibao? "
"There are also Tianlang brand drinking water and Chaode energy drink, and the others have been discontinued. ”
"How are the sales of the remaining two products?" Xu Liang asked.
"It only has a certain sales volume in Guangdong Province, and has not formed a national influence."
"I understand, you can continue." Xu Liang said.
Liao Yan nodded and continued.
“Jianlibao’s current industrial structure is divided into seven parts.
They are, beverage industry, packaging industry, pharmaceutical industry, sporting goods, fast food, beer and real estate.
The real industry influence of Jianlibao is in the beverage industry and packaging industry, while the rest of the impact is relatively small.
If we acquire Jianlibao, it is recommended to divest all industries except the beverage and packaging industries in exchange for working capital and strengthen the main business. ”
Xu Liang didn’t expect that Jianlibao, a beverage brand, would have such a complicated business layout.
But it’s normal to think about it. His New Dream and Hongmeng will also cross the border. Industry management.
It's just that he's fairly sane, unlike Jianlibao, who spans so many unrelated industries.
“The current management structure of Jianlibao is the shareholders’ meeting - the board of directors - 13 first-level functional departments including Jianlibao Development Department and Marketing Department - 74 second-level functional departments.
In our view, Jianlibao has overlapping functional departments, overstaffing, and low efficiency.
If the acquisition is successful, streamlining the functional departments can reduce costs and increase efficiency. ”
After seeing that Xu Liang had nothing to say, Liao Yan continued.
"Jianlibao has currently established a relatively complete marketing and production system across the country.
Currently there are six filling plants in Beijing, Shanghai, Zhangzhou, Beihai, Zhenjiang and Chang'an.
Already A sales team of 500 people has been established, covering Northeast, Northwest, East and South China, and a nationwide sales network. "
"Jianlibao's core enterprise and main business
First, Jianlibao beverage. Factory.
It is a domestic joint venture, with Sanshui Government holding 60%, Nan'ao Group holding 20%, and China Guangdong Investment and Bank of China each holding 10%.
Its modern factory building covers an area of more than 200,000 square meters. Its main production equipment is imported from the United States, Sweden and other countries, and it has reached the world's advanced level in filling, bottling and flexible packaging.
After several technological transformations and equipment introduction, it has now formed an annual production capacity of more than 1.2 million tons of carbonated beverages.
Its main products are carbonated beverages - electrolyte sports drinks, Lexen Cola, fruity sodas and Tianlang mineral water. "
"Second, Jianlibao Natural Beverage Company.
Jianlibao Group is a joint venture with Xiangjiang Huiyuan Investment Company.
The factory covers an area of 40,000 square meters and introduces production equipment with the level of the 1990s from the United States, the Netherlands, and Germany, including: 500 cans/min type 206 three-piece can drinks, 350 cans/min type 200, automatic Each has one production line with an annual output of 50,000 tons.
The main products are natural mango juice, guava juice, pineapple juice and other juice drinks. ”
(End of this chapter)