Rebirth of the Wild Age

Beijing, Siheyuan.

Wang Dongsheng followed behind Shen Si, and from the moment he stepped on the threshold, he was looking at the courtyard curiously.

There are many mysteries in the business world of the capital, and Song Weiyang's courtyard house is one of them. It is said that he would live here for half a month every year, cut off all contact with the outside world, and ponder over business development plans. This story comes from the "China Business" magazine. It is estimated that it is a copycat from Bill Gates, because there are also magazines in the United States claiming that Bill Gates will retreat in a certain villa for several days a year.

It's a pity that apart from the comfortable environment in this courtyard, Wang Dongsheng really didn't see anything unusual about it.

"President Wang, please sit down!" Shen Si smiled.

Wang Dongsheng thought he was going to enter the house, but Shen Si only took him under the grape arbor.

There are some tea sets on the stone table, and there is a small charcoal stove beside it. Song Weiyang came out with the clay pot in his hands, and said to Wang Dongsheng with a smile, "I forgot where I put this pot of tea. I've been looking for it for a long time."

Wang Dongsheng stood up and shook hands, "Mr. Song is too polite."

"Sit!" Song Weiyang bent down and picked up the kettle, and started making tea on his own.

Wang Dongsheng watched the whole process quietly, not in a hurry, anyway, Song Weiyang had already become a shareholder. Wang Dongsheng does not reject new shareholders, and even his best skill is to turn creditors into shareholders.

In 1992, Wang Dongsheng was transferred to Factory 774 as the factory director. At that time, Factory 774 had become the state-owned enterprise with the most serious losses in Beijing.

A year later, Wang Dongsheng began to reform the joint-stock system of the 774 factory. The workers were tricked by him into taking out their life savings to raise a total of 6.5 million yuan, and all the arrears of wages were converted into shares. Jingcheng Dongfang Electronics Co., Ltd. was born, and turned losses into profits in the year of restructuring.

In 2001, due to the cold winter of the global panel market, BOE fell into huge losses, and could not even pay the wages of workers. However, BOE, which owes a lot of debt, plans to spend hundreds of millions of dollars to acquire the panel business of South Korea's Hyundai Electronics under Wang Dongsheng's decision.

BOE moved here and there, but it could only come up with 150 million US dollars, and Samsung also made obstacles in an attempt to sabotage the deal.

But Wang Dongsheng was stunned by Hyundai Electronics' eagerness to get rid of the burden. Not only did he crazily lower the price, but he also asked Hyundai Electronics to get through the relationship with the Bank of Korea, and the Bank of Korea provided a loan of 210 million US dollars for the acquisition. This is still insufficient funds, so Wang Dongsheng took advantage of the situation to coerce the Beijing government, and the Beijing government lent 30 million U.S. dollars to cover the bottom line.

Hyundai Electronics is purely unlucky. Not only was it sold the panel business at a low price, but it also had to help the buyer borrow money from the bank. As a result, as soon as the contract was signed, the panel price rebounded, and it became profitable in the second month. The panel business sold by Hyundai Electronics made a profit of 60 million US dollars within a year and a half.

However, BOE, which picked up cheap products for nothing, is still in a state of loss, and owes a lot of bad debts in mainland China, Hong Kong, Taiwan and South Korea.

Now that the global panel market has ushered in another cold winter, BOE is being frantically pursued by all parties.

what can we do about it?

There are creditors!

The Beijing government, which lent 30 million U.S. dollars to BOE, bit the bullet and gave BOE a guarantee. Many banks lent another 740 million U.S. dollars to BOE, and the Beijing government once again provided BOE with a loan of 2.8 billion yuan. BOE is a bad debtor. The Beijing government made two batches of loans, most of which were turned into stocks during the share reform, and later cashed out to make the Beijing government make a lot of money.

What is a creditor? Creditors are potential shareholders.

When a magazine reported on BOE this year, the title was - "I've been busy with money all my life".

From the moment Wang Dongsheng took over the 774 factory, he was constantly borrowing money from everywhere, and turned the creditor into a shareholder when he couldn't repay the debt.

Perhaps it was heartbroken by the lack of funds. In another time and space, even though BOE became rich later, it still held the cash in its hands fiercely. It would rather borrow money, partner with others, and issue new shares than resolutely guarantee itself huge cash reserves. So there was a nonsense rule that BOE built factories everywhere, and local governments had to contribute more than 60% of the capital. However, due to the precedent of the Beijing government cashing out stocks to make a lot of money, local governments rushed to this kind of cooperation.

The funniest thing is that a city in the grassland province offered to invite BOE to build a factory, but failed to provide 12 billion yuan in project start-up funds. The mayor was also very bachelor, and said directly: "We have no money, but we have coal!" The local government even wanted to exchange a coal mine for an OLED production line from BOE.

Song Weiyang pushed the teacup in front of Wang Dongsheng: "Please enjoy the tea."

"Good tea!"

Wang Dongsheng took a sip, and then asked: "Since Mr. Song wants to enter the panel market, why didn't he join the 'Julong Project', but chose to acquire BOE, a traitorous company?"

"Haha, let's be a traitor together with you." Song Weiyang laughed.

BOE siphoned money from cities a and b in China, all of which were from mainland stock investors and Hong Kong city investment institutions. They kept looking for bank loans and the government to borrow money, and used the money to acquire overseas companies, and these acquired companies showed a loss across the board this year.

As a result, some media and stockholders directly called BOE a traitorous enterprise, and said that Wang Dongsheng was a traitor boss who gave away the hard-earned money of the Chinese people to foreign capitalists.

As for the "Julong Project", it was initiated by four color TV companies, Tcl, Skyworth, Konka, and Changhong. Because they were stuck by foreign companies, they abandoned their previous suspicions and formed an alliance. They wanted to build a joint venture with an overseas panel company to build a production line, and planned to form a joint venture "Julong Company". Julong chant.

In fact, China has long been planning to enter the panel field, and local governments have supported several companies within their jurisdictions. However, due to the troubles of foreign giants, these companies are struggling to develop. Only BOE took advantage of Hyundai Electronics’ eagerness to get rid of the burden and broke through Samsung’s obstruction in one fell swoop. It not only won the panel business of Hyundai Electronics, but also obtained many panel patents.

The "Julong Project" was also suppressed by international giants. Foreign companies either refused to transfer technology, or the transfer fee was ridiculously high. The Julong Alliance has been negotiating with countless foreign businessmen for a whole year, and finally turned its attention back to China to seek technical support from BOE. In May next year, BOE will acquire 40% of the shares of Julong.

Song Weiyang said: "I said on the phone that I am only optimistic about BOE's panel patents, which is the only one in the country. The Julong project seems to be a big deal, but even if the cooperation with foreign capital is successful, it is just following in the footsteps of domestic panel companies. , If someone gets stuck with a patent, you can’t survive, you can’t die.”

Wang Dongsheng said: "BOE's debts have already exceeded BOE's assets, which is the so-called insolvency. Mr. Song is not afraid that his investment will be in vain?"

"I'm not short of money, so if I'm in vain, it's just a mistake." Song Weiyang said.

Wang Dongsheng suddenly smiled and said, "Mr. Song, you have just passed 20% of the shares now, why don't you invest a few hundred million more to get the shares to 25%."

Song Weiyang asked: "BOE is short of money?"

Wang Dongsheng said in a very bachelor way: "BOE has never been short of money. Now the company owes tens of billions of huge debts. Anyway, there are too many lice. I plan to invest several billion more to build a six-generation production line."

Song Weiyang asked: "BOE's fifth-generation line has invested nearly 10 billion yuan. How many billions of dollars can build a sixth-generation line?"

Wang Dongsheng said: "A few billion is enough, and someone will help pay for it."

"Have you found a partner?" Song Weiyang asked.

"As long as you are willing to look for it, a partner will emerge sooner or later." Wang Dongsheng said.

Song Weiyang sighed sincerely: "You are awesome!"

Wang Dongsheng said: "It is now a cold winter in the global panel market, and the price of panels has dropped by more than half. Many foreign panel manufacturers are reducing production or stopping production. We will build production lines at this time, and we will definitely be able to buy equipment at low prices, and take the opportunity to seize market share!"

Song Weiyang said with a smile: "The premise is that BOE can survive the cold winter."

Wang Dongsheng said: "Even if BOE can't support it, the creditors have to let BOE support it! At worst, there will be a few more shareholders at that time."

The bosses who grew up in the barbaric era, whether they are private enterprises or state-owned enterprises, are really crazy!

Wang Dongsheng also said: "BOE has been included in the list of the fifth batch of share-holding reform enterprises, and it will be announced next month at the latest. Once the share-holding reform is completed, BOE will no longer be a state-owned enterprise, and Mr. Song can invest with confidence."

Song Weiyang smiled and said, "Okay, I'll invest another 1 billion."

"Mr. Song is really bold!" Wang Dongsheng praised.

Wang Dongsheng wasn't afraid that Song Weiyang's shareholding would take over the magpie's nest, because BOE, from top to bottom, followed him as the old factory director. Unless Song Weiyang had bad intentions from the beginning and wanted to buy and sell BOE, Song Weiyang would not be able to control the company no matter what.

The result of Song Weiyang's forced control of BOE is that BOE as a whole fell into chaos, and then went bankrupt step by step!

What's more, although Wang Dongsheng does not personally hold many shares, the management team he leads and veteran workers jointly hold close to 30% of the shares. During the share reform period, MBO is carried out, and then the shares are transferred, and their team's shareholding will approach 40%. However, the B shares purchased by Song Weiyang are not within the scope of transfer shares, and Song Weiyang's shareholding will instead fall.

In fact, Wang Dongsheng tricked Song Weiyang into investing hundreds of millions more, and said that he wanted to build a sixth-generation panel production line.

BOE, in another time and space, got even worse after the shareholding reform. The stock name was prefixed with "st", facing the risk of being forced to delist. When BOE was most desperate, it even sold all of its Korean factories and some of its panel patents, so as not to fall down in the cold winter of the market.

Although he knew he was taken as a winner, Song Weiyang didn't expose it, and cheerfully promised to spend 1 billion.

After discussing the matter of additional investment, Wang Dongsheng was in a very happy mood, and began to chat with Song Weiyang there. With a proud tone, he said with emotion: "The thing I have done the most in my life is being forced to pay my debts! I remember that about 10 years ago, BOE couldn't even pay my salary, and the creditors blocked me. No. I had no choice but to send people everywhere to recover the payment. Among them, Xiao Chen (the future chairman of BOE) and Xiao Wu went to Panasonic to ask for money, but they were deliberately made things difficult by the chief financial officer of the Panasonic China branch, saying that a drink of 200,000 yuan would not be enough. No money for drinking. Xiao Chen and Xiao Wu each drank more than 20 cups in one breath in order to get the money back to pay wages. Xiao Chen rode home drunk, hit a van, and was beaten into a coma. Wu lost his wedding photo on the way, and he couldn’t get a certificate at the Civil Affairs Bureau, so he had to take another wedding photo while smelling of alcohol. That’s how BOE came all the way, it’s not easy!”

"Hehe, it's not easy." Song Weiyang laughed.

Wang Dongsheng added: "But all difficulties have been overcome, what is the little difficulty we are facing now? Since 1999, my ambition is to make BOE the Chinese people's own three-star!"

"Drink tea," Song Weiyang refills the kettle, "I don't care when your six-generation production line will be built. But if it becomes too difficult one day, don't sell patents, I can continue to invest more .”

"Hehe," Wang Dongsheng smiled awkwardly, knowing that the little Jiujiu in his heart had been seen through, he raised his glass and said, "Mr. Song, replace wine with tea, thank you!"

Song Weiyang asked: "Are you interested in joining the Jinniu Club? Your hometown Guo Guangchang is a member."

"Guo Guangchang, that kid is in the same market as me," Wang Dongsheng said, "Although I have never joined this kind of entrepreneurial club, since Mr. Song has kindly invited you, I certainly cannot refuse your kindness."

"Then I will welcome Mr. Wang on behalf of other members," Song Weiyang raised his teacup, "It's done!"