My Age of Investment

"In 2000, Conscience Company was split into two, and the department that sells assembled computers continued to be called Conscience Company. The split Huaxia Digital was devoted to the field of IT services, started a second venture, and was listed on the main board of the Hong Kong Stock Exchange the following year.

Today, Huaxia Digital's business has involved IT planning consulting, IT infrastructure system integration, solution design and implementation, application software design and development, IT system operation and maintenance outsourcing and other sectors.

Especially in the field of manufacturing ERP, Huaxia Digital surpassed UFIDA and Kingdee with a user share of 24.5% last year, ranking first in the market, serving more than 2,000 companies.

In addition, due to the strong shareholder relationship, IT services in many industries such as government, finance, telecommunications, and public utilities are also provided by China Digital.

The English name of Huaxia Digital is DigitalChina, which translates to "Digital China". "

In the conference room on the 36th floor of the China Merchants Building in Beijing, Li Yaqian, who was wearing a well-tailored white lady's professional suit, stood in front of the projection screen and introduced the relevant information of Huaxia Digital in a slow and unhurried manner.

Xia Jingxing, who was sitting under the stage, smiled slightly, "Digitalize China, the slogan is quite loud, but I didn't see any research and development products with independent intellectual property rights, and I took the products of foreigners and laid them all over China. Digitize China.

It's not that he is blindly criticizing Huaxia Digital, but that the development idea of ​​the other party is in the same line as that of a conscientious company, adhering to the spirit of making it better than buying it, and will always be at the low end of the industry chain.

The times are advancing and the industry is upgrading. If Huaxia Digital continues to do this, it will basically be useless.

In his previous life, he had a revenue of nearly 100 billion yuan, but his net profit was as thin as paper, only 500 to 600 million yuan a year. This reflected only one problem - poor technology.

Sitting next to Xia Jingxing, Li Yaozu put down the documents in his hand, looked up at Li Yaqian, who was dressed brightly on the stage, and asked in standard Hong Kong-style Mandarin: "Miss Li, I noticed that China Digital has called A big slogan was put out, to transform into IT services in an all-round way, to be China's IBM?"

Li Yaqian chuckled, "Yes, Conscience Company says it will be China's IBM, generally referring to the PC business; and Huaxia Digital also says it will be China's IBM, generally referring to IT services."

"The mother and subsidiary companies are also talents, all kinds of IBM brands."

Xia Jingxing leaned on the chair, put his hands behind his head, and said calmly: "The reason why IBM sold the personal PC business back then was to get rid of the burden, and the second was to focus on high-end servers, management software, system solutions and other businesses. Maintain its high-end brand image.

Conscience Company bought a business that people thought had no technical content and no prospects, and it wished to make a noise all over the world, as if it had picked up such a bargain. "

Lin Bing on the side answered, "There is still hope for a conscientious company to achieve the market share that IBM once created in the personal PC field, but it is hellishly difficult for China Digital to reach IBM's size in the IT service field."

"Dreams are still necessary, what if they come true?"

Xia Jingxing said with a smile, he remembered that China Digital really learned a lot from IBM.

IBM is the first company in the world to propose the concept of "Smart Earth".

What does Smart Earth mean?

A global system of countless systems—6 billion people, tens of thousands of applications, 1 trillion devices, and 100 trillion daily interactions between them.

In essence, it is the Internet of Everything.

Later, IBM found that this was a bit difficult, so it invested in the construction of the first smart city in the United States in Dubuque, Iowa, together with the Aoguanhai government, intending to complete this big undertaking little by little.

China Digital looked at it, good guy, quite tall, and this matter has something to do, so it followed IBM and put forward a similar slogan in China: build a smart city.

Smart city is the technological crystallization of countless cutting-edge technologies such as the Internet of Things, artificial intelligence, and cloud computing. Can an outsourcing + IT agency distribution company do well?

Xia Jingxing was deeply suspicious of this.

The business direction of smart city is very good, but if you don't have strong technology, don't take this job.

"Jing Xing, you bought China Digital just to make that smart city?"

Since he didn't ask clearly at home last time, Chen Hong decided to ask again.

Xia Jingxing nodded lightly, and introduced: "Smart city is just one of the businesses that Fuxing Industrial Group intends to set up in the future, and other business scenarios such as smart transportation, smart policing, and digital government can be expanded.

Although Huaxia Digital's technology is not very good, it has been doing outsourcing business and agency business for so many years, and has accumulated a lot of government, enterprise and industry customer resources.

Fuxing Industrial Group has a wide layout in the hardware field, but the software field has always been a shortcoming of ours.

Under the innovative business group, there is a revival Internet of Things company, and the research and development of Internet of Things related technologies has been very slow.

No matter how poor Huaxia Digital's technology is, it is almost one of the best software system manufacturers in China. The acquisition and the absorption of some senior engineers can strengthen the research and development strength of Fuxing Internet of Things. "

Xia Jingxing spread his hands towards Chen Hong, "There is no way to do this. We can only collect junk and pick some talents from it. I can't possibly buy IBM's software and system solution department, right? That will be done once and for all."

Chen Hong grinned loudly, "You can try it, maybe the Americans will let the acquisition go without a hitch."

Xia Jingxing ignored Chen Hong's ridicule, and continued on his own: "Right now, each business sector of Fuxing Industrial Group operates independently, and there is no cross-departmental structured process. Each department has its own process, but the processes between departments depend on Manual connection, the operation process is severely fragmented, unable to maximize the full strength of the group.

We need a complete, convenient and efficient system solution to connect various business departments, so that the command will be more convenient and the combat effectiveness can be doubled. "

Lin Bing nodded, and then said: "Since ten years ago, Huawei has spent 4 billion yuan and hired IBM twice to provide management consulting for the company.

The content of the first consultation was eight management reforms including IPD (Integrated Product Development), ISC (Integrated Supply Chain), IT system reorganization, and financial unification.

The content of the second consultation is the highest decision-making and power organization of the enterprise, financial supervision and so on.

Mr. Ren said that the 40 billion spent is worthwhile and has solved 9 of the 10 corporate problems diagnosed by Huawei.

When I visited Huawei a few days ago, I also talked with their executives. Huawei is too big, with a full 84,000 employees. Let alone doing business, how to manage various departments and how to optimize the organization is a problem. big problem.

Take our revival mobile phone as an example. We urgently need an integrated system that connects front-end sales channels, back-end supply chains, and middle- and Taiwan-based mobile phone companies.

Only by digitizing all business processes can supply chain management be done well, thereby creating greater economic benefits for the company.

In addition to our consumer electronics business group that is in urgent need of management technology changes, the most urgent need is the smart home appliance business group. Their staff size is the largest among the six major business groups. There are tens of thousands of employees, and there is a high probability that it will reach 100,000 or 200,000 in the future.

Although more than 80% of employees are production workers on the assembly line, the connection between R\u0026D, production, sales and other departments still requires a digital system. "

Xia Jingxing nodded slightly, smiled and said, "I agree with most of what you said, but I don't agree with the fact that the number of employees in the home appliance business group has increased to 100,000 or 200,000.

In the company's application plan for the Internet of Things technology, the Industrial Internet of Things is also one of the directions, and one of the application scenarios is intelligent fully automated equipment and industrial robots.

In the future, simple production operations will replace human labor with smart devices and robots, eliminating the need for so many workers, reducing production costs, increasing industrial added value, and upgrading to advanced manufacturing. "

Lin Bing smiled and nodded: "Yes, I almost forgot, but the Internet of Things technology is still under development, and it won't be available for a while, but the demand for a digital management system already exists."

Chen Hong is also a shareholder of Fuxing Industrial Group. He is more concerned about the company's development and asked: "Cloud computing, artificial intelligence, Internet of Things, smart cities, industrial robots, internal system integration of enterprises...

After hearing you talk about so many high-end technologies and applications, I only have one question, is China Digital's basic technology qualified? "

Xia Jingxing said with a smile: "That's definitely not enough. My initial plan is to absorb some of the R\u0026D engineers of Huaxia Digital to form a software business group, lay a foundation first, and at the same time vigorously introduce talents from the outside world to strengthen R\u0026D capabilities.

Rome was not built in a day, and development needs to be done step by step.

After divesting the R\u0026D department, isn't China Digital also selling servers and operation and maintenance services?

Get qualified operation and maintenance engineers to train and learn to see if they can do cloud computing operation and maintenance.

If we want to engage in cloud computing, it is not enough to have top R\u0026D personnel, and basic work also needs people to do it.

After completing these divestiture steps, the remaining IT distribution business and outsourcing business can continue to retain the brand and the status of a listed company, maintain industry customer resources, government and enterprise resources, and transform in the future to help us sell cloud computing services, artificial intelligence services, and systems. High-end technology products such as integrated services and smart cities. "

While talking, Xia Jingxing himself laughed, because this is the business direction of Huaxia Digital in the future, and he returned to his old business.

This company has chanted the slogan of comprehensive transformation to IT services for more than ten years, but in the end it is still helping Microsoft Cloud, Ari Cloud, AWS, Penguin Cloud and other domestic and foreign cloud service providers to sell products. It is nicknamed: multi-cloud service The management platform provides customers with diversified choices.

Xia Jingxing remembered that the other party seemed to have become the general distributor of Ahri Cloud nationwide and a diamond-level partner...

It sounds high-end and high-end, but in essence, it is still doing IT distribution work, but the goods distributed are a little higher-end.

"It doesn't matter what it sells, isn't it a sales company? Without its own technology, what future can it have?"

Chen Hong shook his head as he spoke, "I have already found out that the major shareholder of China Digital is Conscience Company, which is mainly selling shares this time.

Conscience currently holds a 47.43% stake in China Digital, and they plan to sell 29.6% of the stake to SAIF Investment, Hony Capital and IDG.

Another shareholder of China Digital, GA General Atlantic Investment Group, sold 13.34% of its shares to Guo Wei, President of China Digital, and SAIF Investment Fund.

In this transaction, SAIF and other three funds and Guo Wei bid at HK$3.5 per share, a 2.78% discount to the company’s price of HK$3.6 per share before the suspension, involving a total of HK$1.318 billion.

Since the major shareholder of Conscience Company is Huaxia Academy of Sciences, this transaction needs to be reviewed by the State-owned Assets Supervision and Administration Commission.

I have already found someone to pass a message to the relevant leaders of the SASAC and the China president of the General Atlantic Investment Group. Both companies welcome Fuxing Industrial Group and Vision Capital to participate in this transaction. "

Xia Jingxing nodded and said, "1.3 billion Hong Kong dollars won 42.94% of the equity. The price is not high. On the contrary, it is a bit underestimated the true value of China Digital."

Chen Hong scratched his head, "I don't know if it's underestimated or not. Anyway, the trend of revenue and net profit has slowed down in recent quarters."

Xia Jingxing immediately heard the implication, what does it mean?

Don't think about it, it is estimated that after the acquisition is completed, the suppressed revenue and profit growth will completely explode.

This is also the usual operation of MBO state-owned enterprises. If it is not stable, as soon as the MBO is completed, the stock price will plummet, and the professional manager will no longer be a successor, so how can he repay the bank loan.

"I heard that Guo Wei raised hundreds of millions of acquisition funds this time. First, three old friends, IDG, Hony Capital, and SAIF Investment, will advance the funds. After the shares are in hand, they will raise the stock price. I can repay the bridge loans of the three companies.”

Speaking of this, Chen Hong said with a chuckle: "It's still easy for these guys to make money! Buy and sell without money!"

Xia Jingxing didn't bother to comment too much. The eating habits these years are already considered good-looking, because there are restrictions on the management rules of listed companies and stock prices. In the early years, many companies that were MBOed were unlisted companies, and asset evaluations all depended on their heads. , there are many unspeakable things in it.

"Once we openly acquire Huaxia Digital, there is a high probability that the management of the conscientious company will not agree?" Xia Jingxing glanced at Chen Hong.

"It's not a high probability, it's definitely not!"

Chen Hong sneered, "If you act at this time, it is equivalent to destroying other people's good deeds. It is not an exaggeration to describe it as discord."

Xia Jingxing laughed and said, "Can you bypass them and talk directly to the person at the top?"

"The Transatlantic Investment Group is a foreign investment group. It recognizes money but not people. It doesn't have so many troubles. As long as the money is given, it should not be a big problem."

Chen Hong stared at Xia Jingxing, "The real difficulty is the conscience company. They hold more than 40 points of equity and are the largest shareholder. Moreover, Guo Wei is Mu Zhixin's apprentice. Both the master and the apprentice wear a pair of trousers. .

If the management of Huaxia Digital and Conscience Company both strongly oppose our acquisition, then the Chinese Academy of Sciences will definitely have some scruples. "

Xia Jingxing nodded, and asked again: "Is it possible to persuade the Chinese Academy of Sciences to agree to the transaction through other directions, such as throwing out a cloud computing project?

Google published cloud computing papers two years ago, and Amazon launched AWS with many problems last year, which is still blank in China.

If we come up with cloud computing, it can be regarded as catching up with the world's leading technology. "

Chen Hong thought for a moment, then replied: "You can try it, but it may not be very effective.

Although this is a major technology project that benefits the country and the people, one code counts for one code, and cloud computing has not really been verified by the market, has it? "

Xia Jingxing nodded lightly, his thoughts drifted far away.

After cloud computing is developed, it is necessary to consider launching it into the market, because only profitable products are good products, and only after making money can we continue to promote technological upgrades and enhance product market competitiveness.

Therefore, to do cloud computing, two types of enterprises have the most advantages.

The first category is e-commerce platforms such as Amazon and Ali, whose businesses are forced to upgrade their technology. They are the companies that are most eager to develop cloud computing servers to process hundreds of millions of orders. At the same time, there are a large number of small and medium-sized enterprises resources on the platform.

Another type of enterprise is represented by Microsoft, which has corporate and government resources accumulated in the software ecosystem and Office software, making business development relatively easier.

This is also an important reason why Microsoft Cloud has come from behind.

The domestic holding group has no corporate resources, and Fuxing Industry has no ToB business.

After much deliberation, Xia Jingxing felt that in order to truly provide competitive cloud computing services in China, he could only purchase enterprise-level software and system service providers.

China is still relatively backward in the field of software, and there are few companies that are truly competitive.

China Digital is not their only acquisition option. Kingdee, UFIDA, and Inspur are all well-developed B-end software and system service providers.

It's just that Huaxia Digital is the first to have a suitable acquisition opportunity, and the price is relatively cheap. Spinning off the remaining business can also make a fortune through PE investment.

As for giving Mu Zhixin and a few venture capital firms some eye drops, that's just incidental.

Of course, from the perspective of the other party, they will definitely feel that they are deliberately targeting them, and will do everything possible to obstruct the joint acquisition formed by Fuxing Industrial Group and Envision Capital.

"Mr. Xia, do you think this can be done? Will the resistance and price be relatively small if we buy Huaxia Digital in the name of Hanergy?"

After listening for a long time, Li Yaqian couldn't help but interject.

Before Xia Jingxing could speak, Chen Hong shook his head first, and said: "The label on us is too obvious, and we are an investment bank. In the eyes of the Chinese Academy of Sciences, industrial capital is undoubtedly more attractive.

In our hands, most of them are worried that we will dismantle China Digital and sell it, resulting in the loss of a potential IT service company in China. "

Xia Jingxing nodded lightly. Chen Hong's words were not unreasonable. Affected by Fuxing Mobile, Fuxing Industrial Group will undoubtedly gain more face. It is not feasible to entrust other organizations to take over the acquisition. good feeling.

"There's no need to discuss it any further. Let's quote directly to the Chinese Academy of Sciences and the Pan-Atlantic Investment Group. Let's participate in this acquisition case with dignity.

Chen Hongyun glanced at Xia Jingxing, who had a serious expression and didn't look like he was joking.

He thinks about it too, the other party has too much grievances with his conscience, reconciliation is impossible, one must fall down, and this matter can be completely over.