industrial overlord

Chapter 656 A Busy Year

Huang Gang just mumbled something, and he still quite agrees with Hanhua's layout in his heart.Hanhua spins off several mature companies and goes public, and uses them to cultivate new companies after obtaining funds.Since the new company belongs to the group, but the whole group is not listed, this avoids the new business from being disturbed by the capital market.In addition, new businesses are often relatively small in scale, relatively fast in growth, and have a relatively high rate of return on capital. It is a pity to take such a business to the public market, which is equivalent to taking out and selling a hen that can lay golden eggs in the future .

As for listing eligibility, it is actually not a problem.Hanhua is already a super-scale company. Even if it takes out 5 branch companies to go public, each of them is larger than most listed companies, not to mention their performance.

Taking Hanhua Chemical Equipment Company as an example, it is now the well-deserved leader of the China Chemical Equipment Alliance. Several sets of 80-ton and 110 million ethylene projects newly built by the country are all undertaken by Hanhua Chemical Equipment Company as the general contractor. Split to other petrochemical equipment manufacturers.Prior to this, these subcontracting companies had already been listed. Is it a big deal for the general contractor to go public?

Among the five companies, the Hunbei Forging Machine Tool Factory was the latest to join the Hanhua Group, but since it entered the US market with a full-automatic car stamping production line, its development momentum has been unstoppable.In recent years, it has developed a series of new products such as railway heavy rail forging machine tools and thin plate cold rolling production lines, and has become the vanguard in the field of domestic forging equipment.It is reasonable for such a company to get a listing quota.

Of course, in order for the China Securities Regulatory Commission to issue listing approvals to five companies under the same group company at once, this requires the group company to have a very strong background.Huang Gang counted with his fingers, and found that in China, Hanhua Heavy Industry can have such a solid background. The Science and Technology Commission, the Ministry of Foreign Trade, and the Planning Commission all seem to buy Hanhua's account. These departments have to negotiate with the Securities Regulatory Commission. It may not be difficult for Hanhua to obtain 5 licenses.

After some more discussion, Huang Gang bid farewell to Lin Zhenhua and returned to Beijing for business.According to the agreement between the two parties, Lin Zhenhua will arrange suitable candidates to register an investment company to invest in the Kra Canal project.All the funds of the investment company come from the private sector, and the state will give the green light to this fundraising behavior.As for the contracting of the Kra Canal project and the future operation and management of the canal after its completion, the country will send officials to negotiate with Thailand in the name of the investment company. The general principle is to maximize the country’s interests in this project.

In exchange, the Planning Commission will coordinate with the China Securities Regulatory Commission to facilitate the listing of Hanhua's five subsidiaries.It is preliminarily decided that the issue of listing quotas for two companies will be resolved first, and then the quotas for the other three companies will be resolved in the next year or two.

The listing of the five companies in stages is also a step that Hanhua's decision-makers have already discussed.If five companies go public at the same time, the limited funds in the capital market will be diluted, which is not conducive to the increase of the issue price.By adopting the method of listing in batches, after the stock of the former company sells at a good price, shareholders will be full of expectations for the latter company, and the issue price can be set at a higher level.

Time flew by in the busyness, and in a blink of an eye, it was the early winter of 2002.

During this period, the negotiations between China and Thailand on the Kra Canal project were successfully completed.The Chinese government issued a statement stating that the Kra Canal issue involves the internal affairs of Southeast Asian countries. The Chinese government adheres to consistent principles and does not adopt any intervention policy in the construction of this project. However, if Chinese companies want to participate in the construction of the canal, the government will not interfere.The Chinese government also requires Thailand to protect the legitimate rights and interests of Chinese investors and not to do anything that harms the rights and interests of Chinese investors.

The Thai government also issued a statement on the negotiation, stating that the construction of the Kra Canal is an internal matter of Thailand and does not involve the interests of any third country.Thailand welcomes private enterprises from various countries including China and Singapore to invest in the Kra Canal project. The rights and interests of any company in the Kra Canal project will be calculated according to its investment ratio. Thailand will not discriminate against investors based on their nationality. .

On the second day after the two governments issued the above statement, the Kra Canal China Investment Company was officially listed in Xunyang. More than 100 CEOs of companies attended the listing ceremony, including Qi Zhongmou, An Yan, and Xiong Lijun. The "successful people" who are often mentioned by the media.

Deputy Minister of Commerce of Thailand Ji Lapon went to Xunyang to participate in the listing ceremony of the investment company. After the ceremony, he made a special trip to Hanhua Chemical Equipment Company for a visit.In the chemical equipment company, Jirapong and the general manager Fang Yanwu signed a large order worth more than 10 billion US dollars. Hanhua Chemical Equipment Company will provide a series of large-scale petrochemical equipment for Thailand's petrochemical processing trade zone along the canal.

Xunyang Port Machinery Company, whose president is Xie Youshan, invested 2 million yuan in the Kela Canal China Investment Company, and at the same time won 50% of the shore machinery orders for the Kela Canal, including several large gantry cranes, forklifts, forklifts, conveyor belts etc.According to the analysis of industry insiders, the profits from these orders alone may be more than 2 million yuan.

There are also some other Chinese companies that have also won some projects of one kind or another. When the news spread, companies from other countries were jealous.Whoever invests, who benefits, this is never a casual talk. Isn’t it a reasonable return for the Chinese to promise to invest 60 billion U.S. dollars in the Kra Canal and get a few orders?
The business circles in Japan and South Korea responded strongly to this matter. However, they regretted that they did not seize the opportunity in time in the past. They have always held this project in their hands and wanted to force the Thai government to give up more benefits.Unexpectedly, China actually took the lead and snatched the controlling stake in this project.

There was once a chance...

If you give me another chance...

Investors in Japan and South Korea repeated the classic lines of Master Xing in their hearts more than once.

Business people, of course, only pay attention to these project orders, investment returns, etc., but politicians also see some other things.

That is, when the first Chinese engineering team arrived at the Kra Canal construction site, the governments of China, Laos, Myanmar and Thailand issued a joint statement, announcing that the police of the four countries would adopt joint law enforcement to maintain the safety of navigation in the upper and middle reaches of the Mekong River.Western media exclaimed: China's armed forces have legally entered Southeast Asia, and the Mekong River has since become a Chinese inland river!
In addition, the Indochina Peninsula Railway Project, which has been under discussion, has also ushered in the spring. The railway departments of China, Laos, and Thailand said that they will build a railway linking southwest China to the Malay Peninsula of Thailand as soon as possible, which means that there will soon be a railway in southwest China. The land route leading directly to the Indian Ocean.

Since Lin Zhenhua made the statement known as the "Sing Tao ultimatum" in Singapore, Singapore's economy has directly entered a severe winter.With the listing of the Kra Canal China Investment Company, the construction of the Kra Canal has become a reality. Singaporean businessmen began to arrange the way out while cursing Lin Zhenhua and China.Among them, many entrepreneurs who once vociferously opposed the Kra Canal project also secretly visited Thailand, intending to relocate their enterprises in Singapore to the Kra Canal area.

The listing of subsidiaries of Hanhua Group has also started. With the efforts of Hanhua’s public relations, the China Securities Regulatory Commission approved two listing permits for Hanhua, allowing Hanhua Chemical Equipment Company and Hanhua Machine Tool Company to go public. At the same time, it also verbally promised Three more companies will be approved to go public within the next year.

The stocks of Hanhua Chemical Equipment Company and Machine Tool Company were snapped up as soon as they were listed on the stock exchange.Although the issue price has been nearly 50% higher than the face value, it has not affected the enthusiasm of shareholders to buy.The influence of Hanhua in China is deeply rooted in the hearts of the people. A long time ago, stock critics threatened that as long as Hanhua was listed, the stock would definitely skyrocket.Now, this long-awaited blue chip stock has finally come out, who still has time to wait and see.What is a 50% premium? Don’t you see that the price of junk stocks in the market is several times higher than the face value?
Taking the opportunity of this listing, the company has also fulfilled its promise to the old employees many years ago, and distributed a part of internal shares according to the length of service, level, and contribution of the employees.Those workers and cadres who had been employed as early as the Hanhua Machinery Factory became several 10 yuan households or even million yuan households overnight.Senior executives such as Xiang Zhe and Fang Yanwu even obtained shares worth hundreds of millions. These shares were allocated by Lin Zhenhua from his own equity, and they were not suspected of corruption or violations.

All aspects of related households naturally need to be managed.Hanhua has personnel who are responsible for public relations, and they will treat these related households differently according to the distance between them and Hanhua and the difference in power.It is naturally inappropriate to directly donate equity to government officials, but no one can blame them for giving them some opportunities to buy original shares at a fair price.As for how many times the price difference officials can earn by taking these original shares to the market, that is their own ability.

Similar to this kind of practice, in fact, not only in China, but also in every country in the world.When the President of the United States is short of money to spend, he will hold a buffet party or something in the White House, and then invite the bosses of various companies to eat.The sage said that there is no free cold meal in the world. It is reasonable for the bosses to pay for this meal, right?Although a hamburger sells for 10 US dollars, and a glass of ice water is worth 5, but one person is willing to fight and the other is willing to suffer, can you control it?
It is digging canals, and the company is going public, and it is necessary to always care about the company's technology research and development and market development. Lin Zhenhua is busy and happy.Until one day, his wife Yang Xin came back from a business trip in the United States and threw a stack of photos in front of Lin Zhenhua aggressively:

"Lin Zhenhua, look what this is!"

(End of this chapter)