industrial overlord

Chapter 654 Listing
In today's China, it is very rare for a company as large and unlisted as Hanhua. This has to be said to be the result of the misunderstanding of the word "listed" by the whole people, and it is a manifestation of the abnormal development of the stock market.

According to the theory of enterprise management, the stock market is a place to allocate production resources, which include capital and management.Listing of enterprises is to solve the problem of insufficient production capital of enterprises. While attracting public funds, enterprises also need to accept public supervision and transfer part of control rights and profits to shareholders.

For a company, whether to choose to go public depends on whether the company itself lacks funds, whether it cannot obtain funds from other channels, and whether it is willing to transfer this part of control and profits.If the company itself has relatively abundant funds, and the original owner of the company hopes to maintain his control over the company and is unwilling to let others share the profits of the company, then there is no need to choose to go public at all.

In fact, in Western countries, there are many large companies that have always chosen not to go public.For example, Koch Corporation in the United States is said to be the largest non-listed company in the world, with an annual output value of up to 500 billion US dollars. The business has a history of nearly a hundred years.

When Koch expands its business, it has always used its own family's funds instead of financing from the capital market.As a result, although the scale of financing has been affected to some extent, all the profits of the company no longer need to be distributed with other investors, and the final accumulation will be more.

In China, for a long time, listed companies have almost no obligation to pay dividends to shareholders, and the decision-making and supervision mechanism of the general meeting of shareholders is useless, which allows listed companies to sit back and enjoy the funds raised from the market without having to pay dividends. pay any price.In such an atmosphere, the listing of enterprises becomes a simple act of misappropriating money. Enterprises do not need to consider whether to go public at all. Whether to go public or not depends only on whether they can obtain the qualifications for listing.

Lin Zhenhua is a person with a technical background, and he is quite rigorous in his work.In his mind, if a company wants to go public, it must strictly follow the rules of listed companies. One of the most important ones is that the profits of the company should be distributed as dividends so that shareholders can enjoy the benefits of investment.It is impossible for Lin Zhenhua to do the practice of intercepting shareholders' dividends by cleverly setting up a name like other companies.

But in this way, the development of enterprises will be affected.Over the years, Hanhua has been putting most of its profits back into production, so that the company continues to grow and develop.As a non-listed company, there is nothing wrong with doing this. After all, Lin Zhenhua himself is the largest shareholder of the company, and the Jiangnan Provincial Economic Commission, which holds shares on behalf of the state, also supports such an approach.The two largest shareholders have agreed, and others have nothing to say.

If Hanhua goes public, the situation will be different, and it will be unfair to the majority of small and medium shareholders to keep all the profits for expanded reproduction.Using the once-popular principal-agent theory to explain, minority shareholders entrust decision-making power to controlling shareholders, and controlling shareholders will refuse to pay dividends out of the motivation to maximize their own control rights, because this can keep more money in the company. Use it yourself, and this is an act of the agent harming the interests of the principal.

Of course, Lin Zhenhua doesn't understand these theoretical statements, and even Xiang Zhe, who has an MBA background, knows little about them.However, they have a common understanding, that is, Hanhua is not yet ready for listing and financing, and if they "circle money" like other companies, it will conflict with their values.

In this way, Hanhua Group has achieved an annual output value of 200 billion U.S. dollars, which is second to none in China, but it is still a non-listed company. This matter has always been used by brick professors in various universities as a teaching negative case.According to the analysis of experts, there are two possible reasons why Hanhua did not go public. One is that the leadership of Hanhua has a sense of small farmers and does not understand the operation of the capital market; listed.Regarding the latter statement, from time to time, reporters went to the China Securities Regulatory Commission for verification, which made the China Securities Regulatory Commission also bear a lot of pressure.

Now, from Lin Zhenhua's mouth, finally spit out the word "listed", which surprised Huang Gang.

"Why, Mr. Lin, your group has such great determination to invest in the Kra Canal. You don't hesitate to change your original intention and plan to raise funds from the stock market?" Huang Gang asked.

Lin Zhenhua shook his head and said with a smile: "That's wrong. Although we value the Kra Canal project, it's just a public welfare project. How can we take out the entire company's wealth. We really need to raise funds recently. But it's not for the canal project. Director Huang, you are so talented, why don't you guess what project we are optimistic about?"

Huang Gang counted with his fingers, electronics, automobiles, gas turbines, large machine tools...all of these are things that Hanhua is doing, but none of them are worthy of Hanhua's big move to raise funds.Based on his understanding of Hanhua, if there is not a funding gap of more than 100 billion, Hanhua would not need to go to the stock market to raise funds. Hanhua has a lot of cash flow, and all banks are always ready with money in their pockets. Loan to Hanhua.So, what would be the project worthy of Lin Zhenhua's investment of more than 100 billion yuan?

"Currently the biggest investment hotspot in China is the construction of high-speed railways. Isn't Hanhua trying to make a difference in this market?" Huang Gang guessed.

Huang Gang also made a guess based on the future investment priorities of the State Planning Commission, but he also knew that this guess was a bit unreliable.Compared with any enterprise, the construction of high-speed rail is a bottomless pit. If 100 billion yuan is thrown down, only a small part can be repaired. From the map of China, I am afraid that it is not even a centimeter long. .This kind of infrastructure construction can only be led by the state, and it is naturally impossible for Hanhua to participate.

As for the equipment related to the construction of high-speed rail, it is Hanhua's strong point, but the investment required in this area is relatively small, and it will not hurt Hanhua.

Sure enough, upon hearing Huang Gang's speculation, Lin Zhenhua smiled again, and said, "Of course we will not miss the high-speed rail project. In fact, we have already contacted the Ministry of Railways and its affiliated enterprises, and they intend to ask us to provide Special machine tools for rail automatic quenching, heavy rail correction, etc. We may also undertake some of the core accessories on high-speed trains. However, these are small projects for Hanhua, and the initial investment we need is also It’s just single digits.”

"Single digits..." Huang Gang curled his lips. He knew that the single digits mentioned by Lin Zhenhua were followed by "[-] million".He, the deputy director of the State Planning Commission, dare not speak in such a loud tone.

"Then I can't guess." Huang Gang gave up his efforts and said, "I'm thinking, if you want to go public for financing, you need at least a three-digit amount of capital, right? Can't imagine."

Unknowingly, Huang Gang also learned Lin Zhenhua's counting method, which is to treat the numbers after "[-] million" as decimals. I have to say that this counting method is quite domineering.

"Haha, there are still things that the talented Huanggang can't imagine, which makes me feel very fulfilled." Lin Zhenhua said happily.He called Huang Gang to a map pasted on a wall in the office, pointed to one of the locations, and said to Huang Gang, "Look, the recent investment hotspot of our group is here."

What is pasted on the wall is neither a map of the world nor a map of China, but a map of a certain area.Huang Gang is also a man with a global mind. He recognized it after just looking at the names of the surrounding oceans and countries. This is a map of southern South America.In the middle of the map, a large color block is drawn, and around this color block, there are many smudges that are obviously left by repeated fingers touching. That is to say, Lin Zhenhua and his team have been They are all staring at this map and discussing this color block.

"This is..." Huang Gang desperately recalled his geography knowledge.

"Bolivia, Santa Cruz Province." Lin Zhenhua reminded.

"Santa Cruz Province?" Huang Gang understood, "This is the Mutong Iron Mine. Why, Mr. Lin, are you planning to invest in the Mutong Iron Mine?"

"That's right, the investment in the first phase of the Mutong iron ore mining rights is no less than 20 billion U.S. dollars, and the investment in the railway built for the export of iron ore is estimated to be more than 10 billion U.S. dollars." Lin Zhenhua said confidently Said.

"This is at least 30 billion U.S. dollars, or 250 billion yuan, which is indeed a big deal." Huang Gang took a breath, but he was still a little puzzled: "Boss Lin, you are engaged in equipment manufacturing, why did you suddenly change your career?" Going into the mining industry? Although I have always known that you have some mining rights in Africa, it is only a side business after all. If you really invest 250 billion yuan to develop the Mutong Iron Mine, then your main business will not change. Has it become a mining industry?"

Lin Zhenhua smiled and said: "It doesn't matter, we will not give up on the equipment manufacturing industry, but now other domestic companies are also rising, and the pressure of market competition is increasing. It is also possible for us to open up another business direction. "

Huang Gang nodded and said: "Of course, for a group as big as Hanhua, mixed operations are inevitable. However, I still have some doubts about your decision. First, the profit of iron ore is not very large. With so much money to develop an iron mine, how can you recover the investment? Second, even if you really want to develop iron mines, you don’t have to choose the Mutong Iron Mine, right? As far as I know, this is a super weak point. "

(End of this chapter)