Set sail1992

Chapter 727 We will not go public

"Of course," Feng Guoqing nodded affirmatively in response to everyone's doubtful, puzzled, or annoyed gazes: "In fact, when our President Zhang made this request, like all the leaders, I also couldn't understand: How wonderful, look at how much the market value of Qingqi motorcycles in our province has increased since they were listed? Isn’t this a good thing? If so, why don’t you agree to let Huateng Industrial Group go public?”

The leaders of Langya city and even the province who participated in this negotiation immediately nodded their heads in agreement: they thought so too, and even many leaders regarded the outstanding performance of Qingqi motorcycles in the stock market as their own credit, their own governance ability and Demonstration of level—then the question arises, how does Zhang Qihang answer this question?
Facing the puzzled eyes of the leaders, Feng Guoqing went on to say: "Facing our questions, Mr. Zhang explained to us at that time that the purpose of listing any company is to go to the stock market to raise funds for its own development, but The question is, given the financial situation of our Huateng Industrial Group, is it necessary to raise funds in the stock market?"

"Uh……"

Hearing Feng Guoqing's words, not only the leaders of the province, but even the leaders of Langya City were stunned: It seems... what you said makes sense...

Everyone knows that in the past 1995, Huateng Industrial Group finally provided a total of 18.3 billion RMB in dividends, of which Langya City received 55% of the total dividends, which is 10.065 billion RMB, more than 10 The dividend of [-] million yuan has plunged the entire Langya City into a carnival and boiling—of course, this is also the most fundamental reason why the province is so anxious to "take down" Huateng Industrial Group: Huateng Industrial Group is really Too rich.

According to the rules established at the beginning of Huateng Industrial Group's establishment, the total annual dividends shall not exceed 50% of the net profit of the year. One can imagine how abundant cash flow Huateng Industrial Group has in its hands!
It was also at this time that everyone realized why Zhang Qihang was unwilling to let Huateng Industrial Group go public: Under such circumstances, whoever talks to Huateng Industrial Group about "going public and raising development funds in the stock market" is not a big joke what?How much money can you raise by going to the stock market to raise funds? !

"Well, the situation of Huateng Industrial Group... really can't be confused with other units," Li Jiujiang laughed at himself, shook his head and said: "Apart from not being short of money, did Comrade Zhang Qihang say anything else? Reason for not wanting?"

"Yes," Feng Guoqing nodded and said, "The second reason is that Mr. Zhang said that Huateng Industrial Group pursues a prudent business strategy, and he does not approve of high-debt development..."

"Isn't it?" Feng Guoqing hadn't finished speaking when a negotiator from the province interrupted him and said, "Comrade Feng Guoqing, there is no necessary connection between the listing of this company and the high debt of the company, right?"

As soon as these words came out, many comrades nodded in agreement, but only Feng Guoqing shook his head: "Our Mr. Zhang said that the two seem to have nothing to do with each other, but in fact, the stocks of companies with more than 10 listings around the world are taken out. Come over and analyze it, and you will find that the debt ratios of these companies are almost all over 50%. Some of the companies we are familiar with, including McDonnell Douglas, Boeing, Airbus, General Motors, General Electric...these well-known companies, their asset-liability ratios Even more than 60%, individual companies such as McDonnell Douglas, their asset-liability ratio even exceeds 100%!"

The example revealed by Feng Guoqing caused an uproar in the crowd, and everyone couldn't help discussing it...

"what?!"

"A debt-to-asset ratio of 100%? Doesn't that mean that the company has no assets?"

"That's better than being insolvent..."

"That's right, but the asset-liability ratio exceeds 100%, and it's still the famous McDonnell Douglas, which is really embarrassing... In the 80s, how much effort did we put in to cooperate with La McDonnell? I But I remember very clearly that at that time, McDonnell had a soaring nostril, but who would have thought that in just 10 years, McDonnell would soon be insolvent..."

…………

It’s no wonder everyone is so excited. It’s because Chinese people are too impressed with McDonnell Douglas aircraft. Our country spent so much effort back and forth in order to be able to cooperate with McDonnell Douglas. It’s been ten years and ten years. Hexi, in just 10 years, McDonnell is already insolvent?

Feng Guoqing went on to say: "Our President Zhang said that on the surface, the asset-liability ratio has no direct relationship with whether the company is listed, but after the company is listed, it is necessary to regularly announce the factors of the company's profitability to the public. Investors have to make some short-sighted actions in order to produce a good-looking financial statement.

For example, if a company does not make any money and its financial reports are ugly, how can it maintain its stock price and convince the market that they did a good job last year?In desperation, companies may choose to sell some of their own assets and technology, or simply choose to lay off employees, in this way to make their financial reports look better.

But the problem with this approach is that although the company's financial statements look good in a short period of time, it is very likely that the company's future development potential is overdrawn. The reason why McDonnell Douglas is in today's situation is largely due to this factor. big reason.

Of course, even if the asset-liability ratio of McDonnell Douglas has exceeded 100%, it does not mean that McDonnell Douglas Aircraft will go bankrupt immediately. In fact, let alone the asset-liability ratio of 100%, even if the asset-liability ratio reaches 150%. If it can continue to operate, there is also a chance to survive or even turn a profit, not to mention that the technology of McDonnell Douglas is also very valuable.

For example, the current Chrysler Motors, before Mr. Lee Iacocca took office, their asset-liability ratio has exceeded 160%, and they may go bankrupt at any time, but after Mr. Lee Iacocca became the CEO of Chrysler, After just two years, Chrysler quickly turned around...

But this kind of thing is an example after all. When we cited this example, Mr. Zhang said that Chrysler was lucky to meet Lee Iacocca when he was most difficult, but who can guarantee that he will need him most in the future? Can you meet a business wizard like Mr. Lee Iacocca when you are in the world? "

"..."

Hearing what Feng Guoqing said, no one said anything.

To be honest, Huaxia has been engaged in stocks and the stock market for only a few years, not to mention people like Li Jiujiang who only know a little about stocks, even the leaders of relevant management departments have only a half-knowledge about these things, so for Zhang Qihang's assets The practice of linking the debt ratio to the listing, no one knows whether this guy is talking nonsense or something is happening.

But it doesn’t matter if you don’t know. In the system, a very important principle is “not afraid to consider the worst possibility.” In other words, that is: what if this thing is true?
If this is true, after Huateng Industrial Group goes public, the asset-liability ratio will rise steadily. What should we do then?
This kind of thing, if no one predicts and raises this possibility in advance, it’s fine, even if everyone knows it, it can be regarded as not knowing, but if someone raises it and expresses its opposition clearly, if anyone still insists on it at this time , then if something happens in the future, the board will be hit on the ass of the comrade who "sticks to his opinions and opinions"-this kind of situation is naturally what everyone tries to avoid, who wants to be counted as the last Account?
In the silence, Gao Feng spoke: "Comrade Feng Guoqing, besides this, did Comrade Zhang Qihang say anything else?"

When the people in the room heard this, their ears pricked up.

"Yes," Feng Guoqing nodded slowly under the gaze of everyone: "The third reason is actually somewhat similar to the second reason, and it is because of the capital market's short-sighted view of 'only looking at your quarterly or annual financial report'." When you decide to invest in some projects that may not be profitable in the short term, or may even be unprofitable in the long term but may play a huge role in supporting other projects, the capital market does not recognize it..."

Now, before Feng Guoqing finished speaking, everyone knew what Feng Guoqing was talking about.

Speaking of others, you may not understand, but when it comes to "projects that cannot see profitability in the short term, or even projects that may not be profitable in the long term but may play a huge role in supporting other projects", everyone is too familiar with it!
For example, the widening of roads in urban areas and the hardening of rural roads, both of which are projects that "do not see profits in the short term, or may even be unprofitable in the long term, but may play a huge role in supporting other projects":

Don't you spend a lot of money to widen the roads in the city?

It seems to be okay in the short term, and it is not a problem to delay it for a year or so, but it will definitely not work in the long run, and it will inevitably delay the development of a city. Tucao "Is this the virtue of the roads in your urban area?" Maybe people won't invest in it;

The same is true for rural roads. Now the rural roads in many places are dirt roads. It doesn’t seem to have much impact if they are not hardened. It doesn’t even matter if you don’t start this project for three or two years. But after a long time, it will definitely affect the rural economy in your area. development, there is no doubt about it...

Therefore, for the managers of a city and a province, there are many projects that "do not see profitability in the short term, or may even be unprofitable in the long term but may play a huge role in supporting other projects" must be Those who pay can't stop paying just because they can't see profits in the short term, but from Feng Guoqing's words, it seems that the same is true for a company?

(End of this chapter)