Chapter 796 Six Points of Judgment
“Let’s talk about Jianlibao’s external expansion.”
After Xu Liang nodded, “The original management plan for Jianlibao’s external expansion was to focus on the Japanese market, but later Changed again.
The Japanese market is a relatively mature market, the audiences of major brands are relatively stable, and brand loyalty is very high.
If we enter, we will need to spend a lot of money. Promotion.
And the possibility of losing money is as high as 80%.
So, rather than starting from scratch, it is safer to acquire local companies.
But mergers and acquisitions require more funds.
It will put a huge financial burden on Jianlibao.
Once there are problems in the operation of the merged and acquired companies, it will affect the development of the entire Jianlibao.
Therefore, after comprehensive consideration, we have suspended the development of Japan.
Instead, it turned its attention to Southeast Asia.
Although the size of the beverage market here is not as large as that of Japan, there are no dominant big brands and the competition is not strong.
The price of acquiring local companies is not high, making it easy to integrate.
From 2003 to now, we have acquired 5 beverage brands in Southeast Asia, and channel construction has also been very effective. Southeast Asia is now our profit source after China.
It creates a revenue of 3 billion Chinese dollars and a profit of nearly 500 million for the company every year.
The development speed is also very fast.
According to our estimates, revenue from Southeast Asia will exceed 10 billion Chinese dollars in the next five years.
Become our most important business support.
At that time, the company's revenue and profits will be higher, and the time will be truly ripe to enter the Japanese and Korean markets, or the European and American markets through mergers and acquisitions. ”
“The countryside surrounds the city,” the old man said.
“You hit the nail on the head with this strategy.
Start from the fringe where international giants don’t pay attention, and after growing strong, enter their market competition.”
"It is indeed a good idea to avoid the real and attack the weak, and strengthen yourself before the decisive battle."
"You are rewarded."
The old man smiled and said, "The Delong Group's mergers and acquisitions are different from your previous mergers and acquisitions, right?
Its financial burden is too heavy.
And its own operations also have big problems.
Across many industries, the brand reputation and audience are not high.”
“You are right, Delong’s debt of 57 billion Huaxia yuan is very shocking.
There are also big management problems, and the brand audience is not as wide as Jianlibao.
But Delong has a very good industrial foundation.
Xianghuo Torch is a leading manufacturer in the field of auto parts and heavy-duty vehicles.
Alloy Co., Ltd. is the largest manufacturer of power tools and garden machinery in the country. After acquiring Mauri from the United States, it not only made up for its technical shortcomings, but also gained access to foreign channels.
Tianshan Co., Ltd. is the third largest cement manufacturer in the country.
It can be said that in addition to Shancheng Industrial, Delong's industrial assets are very good.
As long as they manage well and strip away some of the debt that Delong has imposed on them, they can quickly turn losses into profits.
But Deron's biggest difficulty is his debt.
And this is the advantage of Hanhua and Hongyan.
We have sufficient funds to solve Delong's debt problem.
The old man nodded, "Although Delong's industrial assets are good, if you want to recover the 23 billion Chinese yuan in liabilities, I'm afraid it will take a long time.
If the same funds are invested in those companies that are already doing well, Can your company get higher returns?
In comparison, is the rate of return from investing in Delong lower? ”
Xu Liangzhong was surprised by the other party’s reaction. keen.
Strictly speaking, this is correct.
If he invests the 57 billion Chinese dollars invested in Delong into big A companies such as PetroChina and China Mobile, the return he will get in five or six years will definitely be greater than the investment in Delong.
But there is one thing.
China’s foreign investment requires approval.
Financial institutions around the world dream that China can allow them to establish several more QFII funds.
But it doesn’t work.
Compared with strict financial review.
Foreign industrial investment is more popular.
Not only is the review easy, but there are also preferential policies.
But there are not many companies in China that can withstand huge investments.
Delong is the most suitable one.
The acquisition of Delong, Hanhua and Hongyan transferred 90 billion Huaxia coins domestically in the name of debt repayment and subsequent operating capital investment.
When the exchange rate of the Chinese currency against the US dollar changes from the current 8.27 to 6.5, or even lower, this amount of money will rise to more than 100 billion Chinese currency as the Chinese currency appreciates.
Plus debt tax deduction.
So the real debt Delong brought to Hanhua and Hongyan was actually only about 23 billion Huaxia coins.
In comparison, Delong’s net worth is about 40 billion Chinese dollars.
This is the real reason why Xu Liang is willing to acquire Delong.
“Hanhua and Hongyan have invested enough in the stock market. From a risk perspective, we are still more willing to invest in some industries in a down-to-earth manner.
In addition, you also We know that the short-term capital gains tax in the United States is very high.
After merging Delong's debt, we can also reduce part of it through reasonable capital operations.
So the acquisition price is not. The outside world thinks so seriously.”
He concealed the appreciation of the Chinese currency.
After all, this hasn’t happened yet.
The old man raised his hand and nodded at him, and said with a smile: "I know that your acquisition of Delong is not just about industrial assets, but also emotional and tax considerations. However, among all Chinese enterprises, only You can do this.”
Except for Hanhua and Hongyan, no company can earn tens of billions of dollars in revenue from the United States a year.
Xu Liang smiled and didn't explain too much.
The old man glanced at him and said, "Let's continue the previous topic."
Xu Liang nodded and continued.
“The third reason for Delong’s bankruptcy is ‘strategic idealization’.
Delong has done a lot of exploration on the strategic model of industrial integration, and the results have proven to be fruitful. .
For example, after settling in Hunan Torch, through a series of industry mergers and acquisitions, its main business income increased from 124 million yuan to 11.39 billion yuan in six years.
Although the profit rate is not high, as a machining company without its own core technology, although the profit rate is a bit low, it is still successful.
More importantly, Delong can make more money by sitting in the stock market through the rapid expansion of the scale of Hunan Torch.
Combining the two, the money Delong earned through industrial integration will become very rich.
Moreover, it is easier to make money from the stock market than from the hard work of running an industry.
Therefore, after they successively proved this is an effective strategy in the operation of Tunhe Hehe Alloy Co., Ltd., they completely embarked on the strategic development path of industrial integration and stock market dominance.
But this strategy is too idealistic.
As mentioned before, without industrial support, finance becomes a castle in the air.
And investors and investment institutions are not fools either.
You may be able to deceive people once or twice, but paper cannot cover the fire.
Especially when macroeconomic policies change, it exacerbates Delong's dilemma. "
"So what you are saying is that industrial companies should focus on improving their management level and core business, and not focus on finance? "The old man asked.
Xu Liang nodded and said: "There are specialties in the art industry. Finance is a very specialized matter.
If a company that focuses on industry shifts its attention to finance, it will focus on one thing and miss the other, and end up with nothing. ”
“But many industrial companies in the world are involved in finance, and they are doing pretty well, such as GE. ”
"There is only one GE in the world.
And GE's financial business mainly focuses on household finance and corporate credit, so the risks are relatively small."
The old man smiled and nodded, then turned his eyes.
“There is not only one GE in the world, but also you.”
“Thank you. In fact, I am doing business as an investment.”
"Invest?"
"Yes. Analyze the industry form and the fundamentals of the company, and finally decide whether to enter.
There are many such companies in the West, especially the United States.
< br>KKR, Blackstone, 3G Capital, etc.”
The old man was convinced.
He also knows about these foreign private equity giants.
Made a continue gesture.
Xu Liang continued: "The fourth reason for Delong's bankruptcy - failure to grasp the investment rhythm.
Delong's long, medium and short-term investment portfolio and grasp of the investment rhythm Not enough.
The proportion of long-term investment is too large, ignoring the return cycle of industrial investment, affecting capital liquidity.
Most people only see attractive investment opportunities and industrial integration opportunities, but ignore the potential risks brought by the company's rapid growth.
Article 5: Error in macro judgment.
Since its establishment in Delong, the development has been very rapid and the process has been very smooth. The government, banks and other aspects are also very supportive.
In particular, the credit line granted by the bank was also very large, which gave Delong an illusion.
As long as there are good industries and good projects, they will not be short of funds.
But I didn't expect that the contraction of credit would have such a huge impact on the entire society, and directly caused the break of Delong's capital chain.
Article 6: Use poison to transform antidotes.
In the financial industry, it is certainly possible to make money by raising the stock price of a company through speculation, but it is also easy to make money.
The cost is that companies will neglect their industrial operations and focus more on the stock market, where it is easier to make money.
But the stock market without industrial support is destined to be just a castle in the air.
Once you encounter a crisis, your true colors will be revealed. "
After a pause, and after taking a look at the old man's expression, Xu Liang continued.
"What I said is relatively simple. If you want to understand more, I will give you a guide. Here is a piece of internal information from our company. "
"This relationship is good, I'm just waiting for your information? "
"Hmm. ”
After chatting for a few more words, the old man stood up.
“After taking you so long, it’s time for me to leave.
Get ready, I’ll be listening in a minute.”
“You walk slowly.”
Xu Liang quickly stood up to see him off.
After watching the old man disappear outside the door, Xu Liang breathed a sigh of relief and relaxed.
"Mr. Xu, I didn't expect that the first assistant is also interested in Delong Group?" Lu Hui said.
Xu Liang smiled faintly and didn't say much.
The first assistant was not interested in Delong, but to warn him by asking about the reasons for Delong's bankruptcy.
(End of this chapter)