Chapter 1040 Prince's Milk
After greeting everyone in turn, Xu Liang walked into the former Delong headquarters for the second time.
Compared to last time, this place has become more modern after renovation.
Simple and fashionable, if I have to use two words to describe it, it would be 'light luxury' which became very fashionable later.
When he arrived at the conference room, Xu Liang, of course, refused to let him sit on the main seat in the middle.
On the left is Shen Nanpeng, and on the right is general assistant Li Jinling.
Then arrange them in order.
"I came here today mainly for two things.
First, in the first half of 2006, the total assets managed by the Modou Branch exceeded 36 billion Huaxia coins. In Hanhua Among the 17 offices in the world, it is second only to New York, Tokyo, Beijing, Singapore, Hong Kong and London.
Second, the headquarters is negotiating with SMIC for acquisition, and you are responsible for the specific negotiations.”
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Xu Liang turned his eyes.
"Old Liu, I'll leave this matter to you."
Liu Zhengxin nodded quickly and agreed.
Mergers, acquisitions and restructuring are the secondary business departments of Hanhua Securities, and he is also the business counterpart.
“Okay, I’ve finished my story, do any of you have any questions?”
Everyone exchanged glances with each other.
Major matters of the branch have been communicated with the head office long ago and a solution has been found.
Troubling the big boss with trivial matters will only make the big boss think you are incompetent.
"Mr. Xu, the Modu office is developing very fast, and the company has also hired many new people. They all admire you, so please see if you can participate in our team building this month." Shen Nanpeng smiled. road.
Everyone’s eyes lit up, this was indeed a good idea.
You can flatter the big boss without being looked down upon.
"When will your team building be held?"
"On Saturday this week."
After thinking about it briefly, Xu Liang nodded and joined his employees. It’s also a good thing to have some feelings.
And the time will not delay your schedule.
"Okay, remember to remind me when the time comes."
Li Jinling nodded.
After announcing that the meeting was over, Xu Liang walked around Hanhua and was about to leave when he was stopped by Shen Nanpeng.
"Mr. Xu, there is an investment that I am undecided about, and I would like to ask for your advice."
"Is there anything else that your old Shen is undecided about?"
Shen Nanpeng: "The main reason is that the amount of investment this time is too large, and the target company also has some hidden risks."
"Let's go to your office and talk."
"Your side Please.”
When he came to Shen Nanpeng’s office, the former, who understood his habits, handed over the information immediately.
"Prince's milk?"
“You also know?”
“Don’t forget that Master Kong is also involved in the dairy industry?”
Tingshan Dairy, a subsidiary of Master Kong, developed on the basis of the inheritance and integration of Delong Dairy.
With Master Kong’s continuous investment, coupled with the channels of Kelong and Yihaodian, Tianshan Dairy has not only integrated more than half of the milk sources in Xinjiang Province, but also developed into the fifth largest milk company in the country.
Second only to Mengniu, Yili and Bright Dairy.
But in some segmented tracks, there are stronger companies.
For example, Sanlu is the leader in the milk powder industry, and Taizi Milk is the top player in the lactobacillus milk industry.
“Do you want to invest in Taizi Nai?”
Shen Nanpeng nodded, “In order to pursue listing, Taizi Nai is contacting major investment banks to complete the final round of fundraising, including ours . ”
Listed companies raise funds from large financial companies before going public in order to have these large companies with powerful connections endorse their listing.
It not only reduces the difficulty of listing, but also increases the trust of investors.
After all, in a general sense, the companies that top financial institutions are optimistic about are basically not too bad.
“What are you worried about?”
“Li Tuchun’s ambition is too great.
Since 2002, Prince Milk Group has invested more than 3 billion yuan , five major lactic acid bacteria milk production bases have been built in Zhuzhou in Nanhu, Miyun in Beijing, Huanggang in Beihu, Kunshan in Suzhou, and Rongcheng, with an annual production capacity of 30 billion yuan.
In addition to production, since winning the CCTV bid for 88.88 million yuan in 1998, Prince Milk Group has invested hundreds of millions of yuan in brand promotion every year.
Currently, the debt of the entire Prince Milk Group has exceeded 2.7 billion Chinese dollars.
Although Prince Milk Group's revenue in 2005 has reached 2 billion Chinese dollars and exceeded 1.34 billion Chinese dollars in the first half of 2006, the debt level is still too high.
If Taizi Milk Group can maintain its current development speed, it will not be difficult to repay the loan given that they account for more than 70% of the lactic acid bacteria industry.
But Li Tuchun is a little eager for success. He wants to use this fund-raising and the money raised from the listing to develop the Prince Milk Group from a single field of lactic acid bacteria to a mainstream dairy company like Mengniu, Yili, and Tianshan.
The production bases he invested heavily in Zhuzhou, Miyun and other places were prepared to expand the product matrix.
So, not only will Taizi Nai’s debt not be reduced, it may continue to expand. But the high-debt approach to development is itself a gamble.
There is too much uncertainty.
But the brand and sales volume of Taizi Milk are indeed a company with a bright future.
So now I am in a bit of a dilemma. "
"Give it up, Prince's milk is not suitable for investment.
I believe you have also seen Hanhua’s internal analysis report on U.S. subprime mortgages. Once something goes wrong, it will be a global crisis.
All financial institutions will be affected.
Similarly, all companies with high debt levels will face the problem of broken capital chains. "Xu Liang said directly.
Of course, this is just a superficial excuse.
The key is melamine.
The outbreak of the Sanlu incident directly destroyed China's dairy industry.
Whether it is milk powder, liquid milk, or lactic acid bacteria, all products containing milk have been severely affected.
Although Xu Liang has already planned to intervene in this matter.
But he was not sure whether he could really avoid this incident from happening.
Of course, as Shen Nanpeng said, Li Tuchun's own ambition and gambling nature are also the reasons why he is not optimistic about it.
When he participated in the EMBA study at Cheung Kong Graduate School of Business in his previous life in order to expand his network, the business case of Prince Milk was often mentioned.
In 1996, Li Tuchun, a 36-year-old Nanhu native who started with 300 yuan and tried selling calendars and opening a hotel, established the Prince Milk Factory in Zhuzhou.
In 1997, Taizi Nai made a huge bet on CCTV’s “Advertising Standard King” for a sky-high price of 88.88 million yuan, thereby gaining fame in the national market.
From 300 yuan to 88.88 million yuan in one year, it was still the 1990s.
Is it possible?
Of course, as long as you are the male protagonist of some commercial novel.
But reality is not fiction.
Li Tuchun didn't have that much money at all. He even borrowed the 200,000 yuan to get started.
But with his ambition and gambling spirit, 88.88 million won the CCTV bid in one fell swoop.
Xu Liang felt that his gambling habit was big enough.
But it was not enough in front of Li Tuchun.
My 200,000 yuan leveraged 88.88 million yuan, with a leverage factor of 444.4 times.
It’s a madman’s game.
But he did make the right bet.
As soon as the advertisement for Prince Milk was aired, he instantly became a well-known star household product. Not only did he easily receive orders worth nearly 1 billion, the bank also provided him with low-interest loans to expand production.
Li Tuchun's career expanded rapidly like a balloon.
In just seven years, sales increased from several million to 3 billion in 2007, accounting for 70% of the national lactic acid bacteria market.
Maybe it was too smooth, which amplified the gambling nature in Li Tuchun's heart.
In order to go public, Tai Zi Nai received US$73 million from Actis, Morgan Stanley, and Goldman Sachs.
On the other hand, Li Tuchun also used a personal guarantee to borrow 500 million yuan in unsecured and unsecured low-interest loans from six consortiums led by Citibank.
He made a bold statement: "Prince Milk will be super bright within one year, and surpass Yili and Mengniu in three years."
In order to achieve his goal, he signed a betting agreement with an investment bank - — Within three years after investment, Taizi Nai’s performance must grow by more than 50%, otherwise it will lose its 61.6% stake.
What is investment banking?
Investment banks are wolves that eat people without spitting out their bones.
More than 99% of those who signed betting agreements with investment banks were eaten alive by them.
In his last life, Xu Liang heard that there were very few companies that succeeded in betting.
Investment banks have seen too many companies. When playing with probability, almost no one is their opponent.
Li Tuchun is no exception.
Taizi Nai hit the two big mountains of melamine and the subprime mortgage crisis.
Before he could recover from his dizziness, he ran into debt collection by Citigroup and other banks that had suffered heavy losses in subprime mortgages.
Li Tuchun struck out.
As for the prince's milk incident that happened later, that is another matter.
As a senior executive of Hanhua, Shen Nanpeng has of course read the group’s internal analysis report on U.S. subprime debt.
However, there are many such reports on the market, and no one knows whether they will break out.
However, there are already too many examples of big bosses’ investment vision and foresight of crises.
Now that he said so, Shen Nanpeng half believed it in his heart.
“It seems I have to give up.”
“Reluctant?”
Shen Nanpeng nodded, "I have been investigating this project recently."
"Unless you can buy it directly, I am not optimistic about the investment in Prince Milk."
< br>(End of this chapter)