Chapter 775: It’s a mess
At that time, Xingtehao was an electric giant with a total revenue of 239 million Chinese coins.
It is bigger than Shenyang Alloy.
As soon as the two finances were merged, Shenyang Alloy's financial statements took off directly.
However, a mere Xing Tehao obviously cannot satisfy Old Tang’s appetite.
I want more.
Delong, who started printing money, held high the banner of industry integration. After finding his favorite company, he first issued an industry integration and development report, and then issued a check.
Although simple and crude, it undoubtedly impresses the hearts of local officials more than those tycoons who only know how to throw money.
One by one, fat and thin beauties, no, companies, walked into the arms of Old Tang.
In 1999, Xingtehao acquired Suzhou Taihu, which produces power tools, vacuum cleaners, micro motors, hair dryers and other businesses, with zero investment on the condition of relocating all employees.
In the same year, it invested 32.1 million yuan to acquire Suzhou Black Cat Group, which produces high-pressure water guns.
In the same year, it invested 36.33 million to acquire Modu Meihao Company, which produces cleaning equipment.
In the same year, Jin Zhonghao Garden Machinery Co., Ltd. was established as a joint venture with CITIC Mechanical and Electrical. Shenyang Alloy invested 11.6 million yuan, accounting for 55% of the shares.
In the same year, we jointly invested 5 million with Weiyang Diesel Engine Factory and Xingtehao Xiangjiang to establish Shaanxi Xingbao Motor, which mainly produces 2~16 horsepower gasoline engines.
In the same year, Modu Tianhe Shape Memory Materials Co., Ltd. was established in cooperation with the Shape Memory Materials Research Center of Jinmen University.
In other words, in just one year, Delong used Shenyang Alloy as its platform to acquire three companies and establish three joint ventures.
This speed is so fast that people feel scared.
When Huaxia Liquor integrated the beer industry, the speed of mergers and acquisitions was not so fast.
And in the beer industry, everyone makes beer, and their experience is basically universal.
But the mechanical and electrical industry is different.
Power tools, diesel engines, micro motors, vacuum cleaners, machine tool accessories, high-pressure water guns, garden machinery, etc. The production process, market conditions and after-sales service of each product are basically different.
Five or six companies came in at once, and it took less than a year or two to achieve effective integration.
The past two years have been based on the leadership of sufficiently outstanding corporate managers and financial support.
Unfortunately, as Delong’s big BOSS, Old Tang has passed away.
Under the background that Delong's financial situation cannot support his huge ambitions.
He urgently needs the stock price of Shenyang Alloy to rise, so that he can buy low, sell high, secure loans and other financial operations to get money out of the market.
So, the more I look at these money-losing projects under Shenyang Alloy, the more unhappy I become.
Integration?
The whole six!
Sold directly and exchanged for a new one.
Therefore, in 2000, Modu Tianhe Shape Memory Materials Co., Ltd. was sold.
In 2002, Shenyang Alloy was sold and developed the nickel alloy materials business for half a century.
In the same year, Jin Zhonghao Garden Machinery Company was sold.
Also in 2002, it acquired Mauri Company, the third largest garden machinery manufacturer in the United States.
The acquisition of Maori is a rare wise move.
With the help of the other party's channels and technology, Alloy Co., Ltd. can actively develop its own garden machinery industry.
But Old Tang’s next step is very puzzling.
In 2002, with nearly 100 million people, we obtained 75% of the equity of Jinling Second Machine Tool Factory.
It cannot be said that the machine tool industry, power tools, garden machinery and other industries cannot be beaten with eight poles, but can still be beaten with five poles.
Xu Liang pooped several times.
You can almost guess the reason why Old Tang fell in love with the second machine tool.
Nothing else.
This is indeed a good company.
The CNC gear hobbing machine, gear shaping machine, gear shaving machine, chamfering machine and other products produced by Er Machine Tool have reached the contemporary international advanced level in terms of technical indicators and technical performance. The domestic market share of these products once reached 70% above.
Therefore it has strong competitiveness and profitability.
By the end of 2003, the total assets of No. 2 Machine Tools had reached 263 million yuan, the net assets were 130 million yuan, and it had realized a profit of 15.96 million yuan.
As long as the two machine tools are merged into the financial report of Alloy Shares, it will be a huge benefit, and the market value of Alloy Shares will definitely take off.
Probably he got a taste of the sweetness from the acquisition of Second Machine Tool.
Lao Tang completely gave up the corporate development strategy of ‘industry integration’ and began financial speculation.
Such a choice is in line with human nature.
Industry integration requires repeated investigations and consumes huge human, material, financial and time resources before it can be successful.
And there is a huge possibility of failure.
Why bother.
It’s so tiring.
Financial speculation is very fast, and the effect is remarkable.
Why integrate?
Under such strategic guidance.
Which company is losing money and selling it directly?
Then use Delong's reputation and industry influence to buy companies that are developing well.
Leeks don’t understand any fundamentals anyway.
As long as Delong's revenue and profits are rising, it is enough.
This also makes it easier for Delong to make money from the stock market and make up for the growing funding gap.
Why not.
So, Alloy shares quickly began the third wave of adjustments.
In February 2003, 55% of the equity of Xingbao Electromechanical was sold to Shaanxi Anlin Environmental Protection Equipment Company.
In June 2003, the Black Cat Group was sold to Modu Banpu Precision Equipment Company. So far, in addition to the Modu Meihao Company that produces cleaning equipment and Suzhou Taihu, the six companies acquired during the first wave of alloy shares' expansion and the original nickel alloy business have all been laid off.
Others' integration is to eliminate the unnecessary and retain the essential, and to be cautious; Delong's integration is simply to cut out the bones and remove the flesh.
However, during the third integration, probably no high-quality target similar to the ‘second machine tool’ was found.
So Alloy Shares took advantage of the benefits of acquiring Mao Rui and publicly announced in the media that it would invest US$180 million to purchase 180,000 square meters of industrial land in Suzhou Industrial Park to build a new factory.
After the project is completed, it will have an annual production capacity of 1.8 million units of various garden machinery and more than 10 million units of electric tool products.
It is expected to achieve annual sales revenue of 3 to 4 billion yuan and create US$400 million in foreign exchange annually.
Zi Liu.
Very pure Delong flavored cow dung, cough, cowhide.
It is the same as investing 10 billion in five years to build a agricultural supermarket, 2.5 billion to build Delong animal husbandry, 3.5 billion to build a tourism group, etc.
Satellites were released one by one, causing business people across the country to fall off their feet.
But although the leeks are a little stupid, they are not stupid either.
If you put a satellite, we might still believe it.
You launch satellites one after another, often investing billions or tens of billions.
Even if my family opened a bank, I wouldn’t dare to be so wealthy!
Therefore, the leeks tightened their wallets. The stock prices of Delong's old three shares and new three shares could not rise, and they were unable to continue to be the market leader. The financial crisis became more serious.
Had it not been for the large amount of money sold to Xu Liang in 2004, Delong would not have been able to survive in 2005.
From this series of developments, we can see that the development of Alloy Shares has been bumpy.
The main business changed several times, from nickel alloy materials to electric tools, and from electric tools to garden equipment.
Few or no large industrial groups have continuously changed their main businesses in such a short period of time.
If nothing else, just management chaos can kill it.
However, after nearly ten years of development in the hands of Delong, the alloy shares are not without any shining points.
“Do you have detailed information about Peng Shengyu?”
Xu Liang asked.
“Yes.”
Lu Hui quickly handed over the information she had prepared before.
Xu Liang took it and looked at it carefully.
“This guy is quite capable.”
Xu Liang praised.
The two CEOs of Alloy Co., Ltd., Pan Yaping and Sun Gang, managed the company in a complete mess and only lost money.
Lao Tang was forced to use financial speculation to build a company.
But after Peng Shengyu took over the responsibility of Alloy Shares, Alloy Shares became different.
Cooperating with the headquarters to actively sell non-performing assets, the main operating income of Alloy Co., Ltd. increased by 281 million, and the net profit rebounded significantly, reaching 71.13 million.
An increase of 32.09 million from the previous year, almost doubling.
The net profit of the entire Alloy Shares rebounded to 6.29%, inventory fell by 21.39%, and accounts receivable increased by 4.7%.
In 2003, Xingtehao, whose net profit had been declining year after year, gained a net profit of 23.91 million yuan, halting the downward trend.
Suzhou Taihu, which had been losing money, turned a profit and rose for two consecutive years in 2003 and 2004.
In 2004, it even achieved a net profit of 39.09 million Chinese coins.
Suzhou Meirui actively cooperated with American Meirui Company and achieved a net profit of 57.4 million yuan.
Jinling II Machine Tool also achieved a net profit of 16 million yuan.
In Peng Shengyu's hands, Alloy shares, which had been losing money continuously, turned losses into profits in all businesses.
If there is only one business like this, it can be said to be luck.
But all businesses began to grow, and some businesses that were originally losing money also experienced significant growth.
It’s about ability.
Unlike Delong veterans like Sun Gang and Pan Yaping, Peng Shengyu has a PhD in mechanical engineering from Zhejiang University. After graduation, he joined Xingtehao as the technical director. Later, with the acquisition of Delong, he became a subsidiary of Delong of high-rise.
As a non-Xinjiang province and a veteran of the Feida Garden Conference.
Although Peng Shengyu's promotion within Delong was not bumpy, it was because Pan Yaping and Sun Gang turned the alloy shares into seven branches and six of them lost money.
It was a complete mess, and when the elders were unwilling to take over, he, a man with a science background, was able to step in and take over the power of Alloy Shares.
Throughout 2004, under his leadership, Alloy Holdings achieved a total revenue of 1.45 billion Chinese dollars and a net profit of 156 million Chinese dollars.
Net profit margin exceeded 10%.
This is the highest net profit margin since the establishment of Alloy Co., Ltd.
Dong dong….
Xu Liang held the information in his hand and tapped his fingers on the table unconsciously, lost in thought.
Seeing him like this, Lu Hui also subconsciously relaxed her breathing.
After a long time.
"Lv Hui, the financial statements of Maorui Company are not merged with Alloy Shares?"
"Delong has spent US$162 million to acquire all the shares of Maorui Company through Xiangjiang Company, but the acquisition is currently pending. The above approval has not yet been incorporated into the financial report of Alloy Co., Ltd.," Lu Huidao.
"Do you have any information about Maorui Company?"
"Yes."
You flipped through the Delong due diligence information that Lu Hui handed him before. .
"This is it."
Xu Liang took it and looked at it.
(End of this chapter)