Chapter 775 A Complete Mess

At that time, Xingtehao was an electric giant with a total revenue of 239 million Chinese yuan.

It was bigger than Shenyang Alloy.

Once the two companies merged their financial statements, Shenyang Alloy's financial statements took off directly.

However, Xingtehao alone obviously could not satisfy Lao Tang's appetite.

I want more.

Delong, which started the printing press, held high the banner of industry integration. After finding the company it liked, it first threw out an industry integration development report and then a check.

Although it was simple and crude, it was undoubtedly more impressive to local officials than those local tyrants who only knew how to spend money.

One by one, the beauties, no, companies, walked into Lao Tang's arms.

In 1999, Xingtehao acquired "Suzhou Taihu", which produces power tools, vacuum cleaners, micro motors, hair dryers and other businesses, with zero investment on the condition of relocating all employees.

In the same year, it invested 32.1 million to acquire Suzhou Black Cat Group, which produces high-pressure water guns.

In the same year, it invested 36.33 million to acquire the Magic City Meihao Company, which produces cleaning equipment.

In the same year, it established a joint venture with CITIC Electromechanical to form Shanxi Province Zhonghao Garden Machinery Company, and Shenyang Alloy invested 11.6 million, accounting for 55% of the shares.

In the same year, it invested 5 million with Weiyang Diesel Engine Factory and Xingtehao Xiangjiang to establish Shaanxi Province Xingbao Motor, which mainly produces 2~16 horsepower gasoline engines.

In the same year, it cooperated with the Shape Memory Materials Research Center of Jinmen University to establish Magic City Tianhe Shape Memory Materials Co., Ltd.

In other words, in just one year, Delong used Shenyang Alloy as a platform to acquire three companies and jointly established three companies.

This speed is so fast that it makes people feel hairy.

When Huaxia Wine Industry integrated the beer industry, the speed of mergers and acquisitions was not so fast.

Moreover, in the beer industry, everyone is making beer, and the experience is basically universal.

But the electromechanical industry is different.

Power tools, diesel engines, micro motors, vacuum cleaners, machine tool accessories, high-pressure water guns, garden machinery, etc., basically every product has different production processes, market conditions and after-sales.

Five or six companies came in at once, and it would take at least one or two years to effectively integrate them.

These one or two years are based on the leadership of excellent business managers and financial support.

Unfortunately, as the big boss of Delong, Old Tang was too proud.

In the context of Delong's financial situation, which could not support his huge ambitions.

He urgently needed the share price of Shenyang Alloy to rise, so that he could buy low and sell high, guarantee loans and other financial operations to make money from the market.

Therefore, the more he looked at these money-losing projects under Shenyang Alloy, the more unhappy he was.

Integration?

Six in total!

Just sell them and replace them with new ones.

Therefore, in 2000, Magic City Tianhe Shape Memory Materials Co., Ltd. was sold.

In 2002, Shenyang Alloy's nickel alloy materials business, which had been developed for half a century, was sold.

In the same year, Jin Province Zhonghao Garden Machinery Co., Ltd. was sold.

Also in 2002, the third largest garden machinery manufacturer in the United States, Maury, was acquired.

The acquisition of Maury was a rare wise move.

With the help of the other party's channels and technology, Alloy Shares can actively develop its own garden machinery industry.

But the next step of Lao Tang was very puzzling.

In 2002, with nearly 100 million yuan, he got 75% of the shares of Jinling Second Machine Tool Factory.

The machine tool industry is not completely unrelated to the power tools and garden machinery industries. There is still a close relationship between them.

Xu Liang looked it up several times.

He almost guessed why Lao Tang was interested in the Second Machine Tool.

No other reason.

This is indeed a good company.

The CNC gear hobbing machines, gear shaping machines, gear shaving machines, chamfering machines and other products produced by the Second Machine Tool have reached the contemporary international advanced level in terms of technical indicators and technical performance. The domestic market share of these products once reached more than 70%.

Therefore, it has strong competitiveness and profitability.

By the end of 2003, the total assets of the Second Machine Tool had reached 263 million yuan, the net assets were 130 million yuan, and the profit was 15.96 million yuan.

As long as the Second Machine Tool was merged into the financial report of Alloy Shares, it would be a huge benefit, and the market value of Alloy Shares would definitely take off.

Probably because they tasted the sweetness of the acquisition of the Second Machine Tool.

Old Tang completely abandoned the corporate development strategy of "industry integration" and started financial speculation.

Such a choice is in line with human nature.

Industry integration requires repeated research, huge human, material, financial and time resources, and only then can it succeed.

And there is a great possibility of failure.

Why bother.

It's very tiring.

Financial speculation is very fast and the effect is significant.

Why integrate?

Under the guidance of such a strategy.

If a company is losing money, just sell it directly?

Then use Delong's reputation and industry influence to buy those companies with good development.

Anyway, the leeks don't understand the fundamentals.

As long as Delong's revenue and profits are rising, it's enough.

This also makes it easier for Delong to raise money from the stock market and make up for the growing funding gap.

Why not do it?

Therefore, Alloy Shares soon began the third wave of adjustments.

In February 2003, 55% of Xingbao Electromechanical's equity was sold to Shaanxi Anlin Environmental Protection Equipment Company.

In June 2003, Black Cat Group was sold to Magic City Wanpu Precision Equipment Company.

So far, except for the Magic City Meihao Company that produces cleaning equipment and Suzhou Taihu, the six companies acquired by Alloy Shares during the first wave of expansion, as well as the original nickel alloy business, have all been laid off.

Others' integration is to remove the dross and retain the essence, and be cautious; Delong's integration is simply open and close, cutting bones and picking meat.

However, during the third integration, it probably didn't find a high-quality target like "Second Machine Tool".

So Alloy Shares took advantage of the acquisition of Mao Rui and publicly announced in the media that it would invest 180 million US dollars to purchase 180,000 square meters of industrial land in Suzhou Industrial Park to build a new factory.

After the completion of the project, it will form an annual production capacity of 1.8 million various garden machinery and more than 10 million electric tool products.

It is expected to achieve annual sales revenue of 3 to 4 billion yuan and create 400 million US dollars in foreign exchange each year.

Sizzle.

Very pure Delong-flavored cow dung, cough, cowhide.

It is the same as investing 10 billion in five years to build agricultural supermarkets, 2.5 billion to build Delong Animal Husbandry, 3.5 billion to build a tourism group, etc.

Satellites were released one after another, and the business community across the country was shocked.

But although the leeks were a little stupid, they were not stupid.

If you release a satellite, we may still believe it.

You release satellites one after another, with tens of billions or even tens of billions of investments.

Even if you run a bank at home, you dare not be so generous!

Therefore, the leeks held their wallets tightly, and the stock prices of Delong's old three shares and new three shares could not rise. When they could not continue to be the market maker, the financial crisis became more serious.

If it were not for the large amount of assets sold to Xu Liang in 2004 and a lot of money was recovered, Delong would not have been able to support it until 2005.

From this series of developments, it can be seen that the development of Alloy Shares has been bumpy.

The main business has changed several times, from nickel alloy materials to power tools, and from power tools to garden equipment.

There are almost no large industrial groups that have changed their main business continuously in such a short period of time.

Apart from other things, the management chaos alone can kill it.

But Alloy shares have been in the hands of Delong for nearly ten years, and it is not without any bright spots.

"Do you have detailed information about Peng Shengyu?"

Xu Liang asked.

"Yes."

Lv Hui quickly handed over the information she had prepared before.

Xu Liang took it and read it carefully.

"This guy is a capable person."

Xu Liang praised.

The two CEOs of Alloy shares, Pan Yaping and Sun Gang, managed the company in a mess, and they only lost money.

Forcing Lao Tang to use financial speculation to run the company.

But after Peng Shengyu took over the burden of Alloy shares, Alloy shares became different.

Cooperating with the headquarters to actively sell non-performing assets, Alloy shares' main operating income increased by 281 million, and net profit rebounded significantly to 71.13 million.

It increased by 32.09 million compared with the previous year, almost doubling.

The net profit of the entire Alloy shares rebounded to 6.29%, inventory decreased by 21.39%, and accounts receivable increased by 4.7%.

In 2003, Xingtehao, whose net profit had been declining year after year, obtained a net profit of 23.91 million, stopping the downward trend.

Suzhou Taihu, which had been losing money, turned losses into profits, and rose for two consecutive years in 2003 and 2004.

In 2004, it even obtained a net profit of 39.09 million Chinese yuan.

Suzhou Meirui actively connected with the American Maorui Company and achieved a net profit of 57.4 million yuan.

Jinling No. 2 Machine Tool also achieved a net profit of 16 million.

In Peng Shengyu's hands, Alloy Shares, which had been losing money, turned all its businesses into profits.

If only one business was like this, it could be said to be luck.

But all businesses began to grow, and the businesses that were originally losing money also saw a significant increase.

It was due to ability.

Unlike Sun Gang and Pan Yaping, who were old servants of Delong, Peng Shengyu is a doctor of mechanical engineering from Zhejiang University. After graduation, he joined Xingtehao as technical director. Later, with the acquisition of Delong, he became a senior executive of Delong.

As a veteran of the Non-Jiang Province and the Non-Dayuan Conference.

Although Peng Shengyu's promotion within Delong was not bumpy, it was also when Pan Yaping and Sun Gang turned Hejin Shares into a seven-branch company with six losing money.

It was a complete mess. When the elders were unwilling to take over, he, a science man, was appointed to take over the power of Hejin Shares.

In 2004, Hejin Shares achieved a total revenue of 1.45 billion Chinese yuan and a net profit of 156 million Chinese yuan under his leadership.

The net profit margin exceeded 10%.

This is the highest net profit margin since the establishment of Hejin Shares.

Dongdong...

Xu Liang took the information in his hand, tapped the table unconsciously, and fell into deep thought.

Seeing him like this, Lu Hui also subconsciously lightened his breath.

After a long time.

"Lu Hui, the financial statements of Mao Rui Company are not merged with Hejin Shares?"

"Delong has spent 162 million US dollars to acquire all the shares of Mao Rui Company through Xiangjiang Company, but this acquisition is currently awaiting approval from above, so it has not been merged into the financial statements of Hejin Shares." Lu Hui said.

"Do you have the information about Mao Rui Company?"

"Yes."

You flipped through the due diligence information about Delong that Lu Hui had handed to him earlier.

"Here it is."

Xu Liang took it and started reading it.