I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 562: 429-430: Hillhouse Vehicles Launches IPO! (4000 words)
When the whole of China was eagerly watching Hillhouse's next move, Gao Huaijun took the initiative to go to the imperial capital to meet with the head of China Construction Investment. Now, in order to meet Gao Huaijun, Wang Xiaodong specifically turned down his opportunity to go to Papua New Guinea and Vanuatu for research.

China Construction Bank is the lead underwriter of Hillhouse Technology. When Hillhouse Technology was listed on the H-share market, it completed the task beautifully, and Gao Huaijun was also very satisfied with the various distribution and final processing.

Hillhouse is facing a difficult time now, so naturally it would seek stability.

And to some extent, looking for capital like Huajiantou is also a covert statement.

In Gao Huaijun's eyes, the listing of Hillhouse Vehicles is not just a statement, but also a solution to a difficult problem that Hillhouse urgently needs within the company.

For a long time in the past, although Hillhouse Technology's sales volume was slightly lower than Hillhouse Vehicles, its profits were much higher.

This makes the company assume more obligations to support its sister companies.

Hillhouse Chip, Hillhouse Artificial Intelligence, and Hillhouse Battery, these three companies, basically relied on Hillhouse Technology to get through the losses in the past few years.

Even now, the core business is Hillhouse Technology.

Moreover, as a cash cow, in order to better motivate these three companies to produce work, Gao Huaijun asked Hillhouse Technology to pay higher internal transaction amounts than the market price.

For some companies, insider trading is a method of shifting profits.

For example, a real estate company will use some very small and inconspicuous internal cooperative companies, such as gardening, construction, advertising, etc., to transfer corresponding profits.

However, for Hillhouse, this is to increase the R&D capabilities of several internal core companies.

So, now comes the problem.

The profits from Hillhouse Technology's products are barely enough to support its own development, or even more.

Then who will support Hillhouse Chip and other three companies?

It is basically unreliable to rely on Hillhouse Technology.

Now we can only rely on Hillhouse Capital, which can use internal transactions to transfer more profits to these three companies to help them get through this dangerous period.

Because Hillhouse is currently in a period of self-determination, this short-term behavior will not cause too many problems.

However, Hillhouse Vehicle’s profit margin is not as high as Hillhouse Technology’s.

Where does such a large sum of money, tens of billions of dollars, come from?
The key still depends on the listing of Hillhouse Vehicles!
Gao Huaijun and Wang Xiaodong met in a very ordinary cafe.

This cafe was booked by Huajiantou. After the security personnel took control of the situation as if they were facing a powerful enemy, Gao Huaijun walked into the cafe wearing a very ordinary pair of jeans and a denim jacket.

This was the first time Wang Xiaodong and Gao Huaijun met. For some reason, as the boss, he suddenly felt a little nervous and uncomfortable.

When facing Gao Huaijun, he felt a sense of unreality.

Although he is more than 20 years older than Gao Huaijun, Gao Huaijun is not only the richest man in China, but also the number one in China in many fields such as automobile manufacturing, electronic technology, chip research and development and manufacturing, artificial intelligence, battery research and development, etc.

If Hillhouse Capital had not had a very pleasant cooperation with China Construction Bank before, there would have been no need to consider China Construction Bank at all for the listing of this giant company Hillhouse Capital. A large number of investment banks and securities firms would have rushed to help Hillhouse Capital go public.

It is safe to say that Hillhouse Capital is a company with a valuation of over 100 billion US dollars!

In addition, Gao Huaijun is now also making efforts in areas that China is extremely concerned about, such as embodied robots and driverless taxis.

To put it bluntly, among these companies that were split up and listed, which one would not be a blue-chip stock?
He even ranks among the top in the list of the world's richest people.

The influence brought about by the conversion of money into power requires even a big shot like him in China's financial circle to pay 100% attention to it.

Wang Xiaodong didn’t know why Gao Huaijun suddenly took the initiative to meet him this time, but he knew that good things for Huajiantou were about to happen!
"Hillhouse has been engaged in electronic technology for many years, and it was with the help of China Construction Bank that it entered the H-share market. We are now raising overseas debt in the H-share market, which is going very smoothly, also thanks to the help of China Construction Bank."

Gao Huaijun smiled and said to Wang Xiaodong.

The H-share stock market has almost no regulation, if any.

And the liquidity is extremely poor.

As a large blue-chip stock, Hillhouse Technologies' daily turnover rate is less than 2%.

Such a turnover rate is considered high in the H-share market.

In this market, there are often some junk stocks that have not fought back for a whole day.

So when it comes to market value management, that’s it.

However, this market has one advantage, which is that it is connected to the external financial market.

Here, it is very friendly if you want to raise bonds.

That is, subsequent financing is very convenient.

Six months after the H-share listing, the company can conduct additional share financing, which is usually authorized by the board of directors by the general meeting of shareholders and does not require additional administrative approval.

Moreover, there are numerous financing methods available in the free port, including: issuing new shares, convertible bonds, warrants, high-interest bonds, leveraged financing, etc., all of which can be carried out through the capital market.

There is sufficient capital supply, a complete legal system, little human intervention in the market, and financing is very convenient.

Hillhouse Capital likes to issue bonds in the H-share market.

Due to the high growth potential of Hillhouse Technology, the interest rates of the bonds it issues are very low.

Basically, only about 5% is needed to issue development funds of several hundred million or even tens of billions of yuan.

However, due to the recent self-litigation of Hillhouse Technology, issuing bonds is not very cost-effective, and the interest rate is already close to 8%.

You should know that the bonds issued by some real estate companies, especially US dollar bonds, are at the level of 8%-10%.

Gao Huaijun was a little angry that companies like Hillhouse matched interest rate levels with those companies.

It was obvious that he was taking advantage of someone's misfortune, but he insisted on putting on a civilized attitude.

Wang Xiaodong didn't expect Gao Huaijun to be so polite, and hurriedly said, "Mr. Gao is really too polite. The core reason why Hillhouse Technology was able to go public so smoothly is the high quality of the company itself."

“I personally like Hillhouse Technology’s tri-fold smartphone very much.”

"I travel frequently and often need to review OA processes on my phone, but I am old and my eyesight is not very good, so I like to review on a tablet."

"But this tablet is not very convenient to use, which makes me feel very distressed."

"Now, with this tri-fold phone, it's more comfortable to read documents in the OA process."

Gao Huaijun smiled bitterly, "Boss Wang, Hillhouse Technology is facing a severe shortage of chips right now, so we can only supply the three-fold mobile phone..."

Wang Xiaodong knew that he was talking about something irrelevant, and hurriedly said, "Mr. Gao, I'm really sorry, sorry, I made a mistake in my statement."

"However, Hillhouse has always produced some incredible products, from the pioneering of smartphones to the recent tri-fold phones and electric cars. To be honest, when I saw these products, it was hard for me to imagine that they were the work of a single company."

“To be honest, especially when I saw the embodied robot, I always doubted that this was not a product of our time.”

At this point, Gao Huaijun became interested. After taking a sip of coffee, he did not rush to talk about business with Wang Xiaodong, but chatted with him on the side, "Boss Wang, why do you say that?"

"I am analyzing from the perspective of the financial circle, which may not be very accurate."

"Nowadays, society's requirements for high-quality domestic service workers are getting higher and higher."

"And most of the current domestic service workers are older women from rural areas."

"Not to mention the quality of service, every time a guest comes to my house, they always gossip about the family affairs. It's really the worst."

"If this kind of embodied robot really enters the domestic service market, it will definitely be a huge blue ocean market." "Not only in our country, but also in other countries, it will be first-class and good products."

"After all, not everyone is used to outsiders living in their home."

"So if this robot company can go public, even if it doesn't meet the listing standards of China's A-shares, it will have no problem going public on Nasdaq. It will be easy to have a market value of tens of billions of US dollars."

Wang Xiaodong looked at Gao Huaijun and said jokingly, "The fact that we can develop such a product shows that Hillhouse now has its own system and routines in terms of innovation, which proves that Hillhouse has surpassed the entire era."

"I estimate that it will take other companies several years to catch up with us if they want to reach the same level as our company."

"Hillhouse is very popular in the financial circle now!"

"It is a blessing for China that there is such a company."

He sighed aside.

He was actually also explaining China's attitude indirectly.

Hillhouse’s support is truly real, without any false elements in it.

What he said made Gao Huaijun's eyes light up.

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He just thought of this embodied robot project casually and didn't think too much about it.

But the market value of over 10 billion US dollars is a bit exaggerated.

In 2018, the average annual revenue of 5156 A-share listed companies was only 135 billion yuan, and the median was 17.8 billion yuan.

Not to mention profits.

The average median company only has annual profits of tens of millions.

That’s too much.

If converted into market value, based on a PE ratio of 20, this would mean a market value of several billion yuan.

This is still the median company!
The market value standard for delisting of China A shares is 5 million Chinese yuan.

This is the worst kind of junk stock among junk stocks.

And now, Wang Xiaodong actually said that his casual company, which he had only run for less than a year, was worth hundreds of billions of US dollars, which was really beyond his expectation.

You know, a company with a value of over 10 billion US dollars is considered a giant in China!

This is my little brother’s Hillhouse Capital BU!

terror!
This is really too terrifying!

You should know that for the same company, Hillhouse Capital has more than just Hillhouse Capital.

There are also Hillhouse chips, Hillhouse artificial intelligence, and Hillhouse batteries.

These companies are more powerful in terms of size.

What if they go public?
Will it be even more terrifying?!

Gao Huaijun then felt a chill on his back again.

He couldn't help but feel nervous.

Why?

On the one hand, the expectations of the financial circle for his company's products are too high.

Such high expectations will cause his company to be overvalued to an extremely exaggerated level.

This premium seems to be a good thing, but it is actually a bad thing.

Profit and loss come from the same source.

When the other party has too high expectations of you, the actual return they ask for will be quite astonishing.

When your results fail to meet other parties' expectations, you will fall harder than anyone else.

On the other hand.

This evaluation transcends this era.

This is what the head and leader of China Construction Investment said!
People who work in finance are so well-informed.

If you are not well-informed, how can you reap the benefits of retail investors in the stock market?

This means that this is what the people above have hoped for and expected of Hillhouse.

Frankly speaking, in the process of pursuing the most powerful products, Hillhouse Capital intentionally or unintentionally ignored the time framework of "historical process".

It can be said that this electric fan manufacturer called Hillhouse now has a very large influence and can affect the historical trend of the entire era.

To put it bluntly, these are products and works that should have appeared a few years later in this era.

Now, thanks to Gao Huaijun's golden finger, he was forcibly brought back to this era.

This not only made Hillhouse earn a fortune, but also enabled China to take several steps forward in related fields!
In the fields of artificial intelligence, chip research and development, etc., if we are one step ahead, we will be ahead step by step.

Now you're acting like a cheater.

How could playing like this not attract the attention of people from all walks of life in this era?

This also makes Hillhouse Capital stand out from the crowd, just like a candle in the darkness.

How can this be an ordinary technology company?
This is already deeply tied to China's national destiny!

Gao Huaijun only focuses on the development of a company, so his international vision is naturally not as good as Wang Xiaodong's in finance.

Especially the subtle changes in mentality mentioned above. Without long-term exposure, it is naturally impossible to grasp the subtleties.

For a company like Hillhouse, I naturally love and fear it!

There are more than three super giant companies with a market value of more than 100 billion yuan, and more than two super giant companies with a market value of nearly 1 trillion yuan.

Who wouldn’t want to pay attention to this kind of industry influence?
"Hillhouse Capital is a local Chinese company. This position will never change," Gao Huaijun said directly and forcefully.

Wang Xiaodong nodded happily.

Some words will naturally spread from his mouth to specific areas.

These words cannot be expressed openly, but they are very important.

Naturally, Gao Huaijun needs to explain it clearly.

Loyalty is not absolute, it is absolutely disloyal.

Especially for a company like Hillhouse Capital, if it cannot withstand the pressure of self-destruction and goes in the opposite direction, no one will be able to take over.

"Then let's talk about the listing of Hillhouse Vehicles!" Gao Huaijun said lightly.

(End of this chapter)