Reborn Capital Empire

Chapter six hundred and thirty fourth Delong's six major disasters

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The meeting, which was specifically held to resolve DeLong's financial assets and liabilities, lasted about an hour and a half and ended.

"Mr. Guo, I heard that the people who participated in today's on-site meeting are all wealth management customers who owe more than 1 million yuan?" asked Secretary Chen, who invited Guo Shouyun to his office after the meeting.

"Yes! There are more than 1,000 client institutions in Delong Financial Management, and there are hundreds of thousands of investors large and small, and they are distributed all over the country. There is no way, and it is inappropriate to call everyone to the magic capital!"

Secretary Chen nodded and continued: "What are you going to do with the remaining small customers? Do you adopt the same strategy as you said at the meeting before?"

"Of course! As long as it is Delong, no, it should be said that it is a customer of the Oriental Group, and we all treat it equally!"

"Equal treatment is good! Only with equal treatment can the influence of Delong be minimized!"

Secretary Chen nodded in agreement.

"We Hanhua are a responsible company, and compensating customers for their losses is not only a corporate responsibility, but also our social responsibility!"

Looking at the admiration on the faces of Secretary Chen and Mayor Han, Guo Shouyun's purpose has been achieved. Being able to leave a good impression in the eyes of future bosses will benefit his Guo family's development in China without any harm!

"Mr. Guo, I didn't have time to ask when the meeting was short. Now that everyone sits down, there is plenty of time. Can Mr. Guo talk about how to deal with Delong Industrial's assets?" Mayor Han asked.

Secretary Chen's eyes also looked over. The Delong Group is a major taxpayer in the Magic Capital. As the direct leaders of the Magic Capital, they hope more than anyone else that Delong can continue to exist in the Magic Capital.

"How to deal with Delong's industrial assets is something we have been thinking about recently." Guo Shouyun said after organizing the language, "If you want to solve the problem, you must first find the root cause of the problem. According to our analysis, Delong, the owner of The reason why a giant enterprise with 120 billion assets and 300,000 workers will come to an end. There are six main reasons..."

"Mr. Guo, please wait a moment!" Mayor Han interrupted him temporarily, and took out a small notebook and a black hero pen from his pocket. Both the small book and the pen have fading around the edges, and it has obviously been used and turned over for a long time.

"The Delong Incident is the largest corporate bankruptcy event in my country's economic development so far. It is a typical case of China's 20 years of reform and opening up. If it can be summed up well, it will have a great impact on the improvement of our country's laws and regulations, as well as the corporate system. Good influence!"

Seeing his serious expression, Guo Shouyun nodded secretly. To be able to become one of the seven giants of China in the future, if nothing else, the seriousness and foresight of the work alone is worthy of recognition.

"Mayor Han's words reminded me that Delong's affairs should really be learned from experience and lessons!"

Secretary Chen also brought a notebook and a pen from the drawer of his desk.

Seeing them like this, Guo Shouyun also took a few points seriously. However, the reason for Delong's failure was the issues he had been discussing with Zhang Lei, Chen Yu, Brito and Stephen Bryan these days.

"The reason for Delong's failure, the first one, is 'expansion too fast'. There is a saying in China called 'Eat the bowl and look at the pot'. This is the case with Delong. After 2000, Delong has acquired hundreds of consecutive acquisitions. It is a domestic and foreign company, which has led to the tight cash flow and hematopoietic function of the company. In order to solve the problem of insufficient funds, financing rather than enterprise management ability has become the only indicator of Delong's assessment of rewards and punishments, which has led to poor internal management and poor financial business. Violation of the rules. Due to the occupation of the funds of the production enterprises in the self-rescue of financial institutions, coupled with the influence of media hype and the lock-up of money, the debt crisis occurred in the relevant financial institutions of Delong, and then spread to the industrial assets of Delong. And finally caused the collapse of the Delong Group now."

"The second rule is, 'I didn't resist too many temptations'. After China's reform and opening up, the large market of more than one billion people has filled every industry with opportunities. And in most cases, no good corporate management is needed. The level and product quality can win the market. Under such temptation, Delong is greedy for more and faster, and blindly expands, so that he loses his judgment on the macro environment. "

"Article 3, 'Strategic Idealization'. A company's strategic development plan is a collective effort. After numerous discussions and summaries, it is a clear and long-term strategy that can be recognized by the owners of the company. All decisions of the company, including mergers and acquisitions, should revolve around However, the development of Delong lacks strategic planning, and all mergers and acquisitions are decided by Tang Wanxin based on his own subjective thinking. This is most clearly reflected in the development process of Alloy.”

"...The predecessor of Alloy Shares was Shenyang Alloy Company, which is one of the largest nickel alloy production enterprises in China. It was listed on the Shenzhen Stock Exchange after the shareholding system reform in 1990. The company's assets were 130 million Huaxia coins and its annual turnover was 40 million Chinese coins. The main products are nickel alloy materials, electric vacuum alloy materials, spark plug electrode alloy materials, nickel-copper alloy materials, with an annual output of about 1,000 tons, and it is a regular material enterprise."

"...If you acquire such a company, the most appropriate development strategy should be to invest money to improve the company's aging equipment and outdated technology, and increase the company's net profit. Then consider expansion. Expansion is divided into horizontal and vertical. Horizontal expansion is Utilizing the technology and strength accumulated by Shenyang Alloy in the material industry, it has developed into the field of high-priced alloy materials such as copper alloy and special steel, and has become a world-class material company such as SGL and DSM through technology accumulation. Vertical expansion can Purchase upstream nickel mines to save material costs; acquire downstream production companies, such as heat treatment industrial products, or automation devices, etc., to open up the entire nickel alloy industry chain and increase corporate turnover and net profit."

"...But after Delong Group acquired Shen-Yang Alloy, it did not choose horizontal or vertical, but established Jingcheng Titanium Alloy Dynamic Film Complete Equipment Company to develop space shuttle project. From the perspective of the market at that time, space shuttle Just in time for the development period of Huaxia Theme Park, it is a profitable project, and it has indeed made a lot of money for Shenyang Alloy Company. But it has nothing to do with the main business of Shenyang Alloy before.”

"... Then Delong valued the power tool market again, and invested heavily in successive acquisitions of Magic City Xingtehao, Suzhou Taihu Power Tool Company, Magic City Meihao, Suzhou Black Cat Group, and Shaanxi Xingbao Electromechanical Company. It has become the largest manufacturer and exporter of electromechanical products in China, and has opened up the international market through cooperation with the three major garden machinery manufacturers in the United States. It has nothing to do with Shenyang Alloy's other two major businesses, space shuttles and nickel alloys, and the three parties cannot form a joint force."

"... Next, Delong's expansion of Shenyang Alloy seems to be more casual. Invest 60 million yuan to establish a cooperative enterprise with Shancheng Machine Tool Factory, acquire Jinling No. 2 Machine Tool Factory, and enter the machine tool industry. Acquire the world's three largest regional passenger aircraft manufacturers in Germany' Fairchild Dornier's company, entered the aircraft manufacturing industry. Acquired the flagship of the Soviet Union Pacific Fleet 'Minsk aircraft carrier' and entered the tourism industry!"

"...This pile of acquisitions is not only unrelated to Shenyang Alloy's initial alloy material industry, but also has almost nothing to do with each other. As the saying goes: a single wire can't make a thread, and a single tree can't make a forest. Shen~ These mergers and acquisitions of Yang Alloy are full of the subjective will of the managers and have not formed a joint force. As a result, the sales revenue of Shenyang Alloy has increased from 370 million in 1998 to 1.13 billion in 2003, but the net profit has not increased but decreased. , from 110 million in 1998 to less than 70 million Chinese coins in 2003. The return on total assets also fell from 13.7% in 1998 to less than 4% in 2003.”

"...Except for Shenyang Alloy, Delong's Western Regions Tunhe and Xianghuo Cabinet are all like this. In comparison, Tianshan Co., Ltd. is better, and its main business is cement and building materials. But the entire Delong Group has already collapsed! "

Having said that, Guo Shouyun paused for a while and took a breath.

"The fourth reason for Delong's failure~www.wuxiaspot.com~ did not grasp the investment rhythm. Delong did not do enough in the long-term, medium-term and short-term investment portfolios and the grasp of the investment rhythm. The proportion of long-term investment is too large and ignored. It affects the return cycle of industrial investment and affects the liquidity of funds. More people just see attractive investment opportunities and industrial integration opportunities, but ignore the potential risks brought by the company's rapid growth."

"The fifth reason for Delong's failure is that the macroscopic judgment is wrong. Since the establishment of Delong, the development has been very fast and very smooth, and the government, banks and other aspects have also been very supportive, especially the credit line given by the bank is also very large, this is a German Long has an illusion that as long as there are good industries and good projects, they will not be short of funds. But I didn’t expect that the shrinking of credit would have such a huge impact on the whole society, and directly caused the break of Delong’s capital chain.”

"The sixth reason for Delong's failure is to use poison to detoxify the antidote. In the financial industry, using the method of hyping up the company's stock price can certainly make money, and it is easy to make money, which will make the company ignore the importance of the industry. It is necessary to focus more attention 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 it encounters a crisis, it will be revealed.”

"...In 2001, the Xinjiang-Xinjiang Hops Company's debt crisis broke out, causing a run on Jinxin Trust, the flagship company of Delong Financial Assets, which was responsible for providing guarantees, resulting in a deficit of nearly 4 billion Chinese coins. In order to make up for this hole, To save Delong's capital chain that is about to break. The cash flow of Delong's industrial companies alone is obviously not enough, and the time is too long. In contrast, the financial market with fast money has become Delong's only choice. "