My 1999

After greeting everyone in turn, Xu Liang walked into the former Delong headquarters for the second time.

Compared with last time, it has become more modern after renovation.

Simple and fashionable, if I have to use two words to describe it, it would be "light luxury" which became very fashionable later.

Arriving at the conference room, Xu Liang of course refused to let him sit in the main seat in the middle.

On the left is Shen Nanpeng, and on the right is general assistant Li Jinling.

Then arrange them in order.

“I came here today mainly for two things.

First, in the first half of 2006, the total assets managed by the Magic City branch exceeded 36 billion Chinese dollars, ranking second only to New York, Tokyo, Beijing, Singapore, Xiangjiang and London among Hanhua's 17 offices around the world.

Second, the headquarters is negotiating the acquisition with SMIC, and you are responsible for the specific negotiations. "

Xu Liang turned his eyes.

"Old Liu, I'll leave this matter to you."

Liu Zhengxin quickly nodded in agreement.

Mergers, acquisitions and restructuring are the secondary business departments of Hanhua Securities, and he is also the business counterpart.

"Okay, I've finished my business. Does any of you have any questions?"

Everyone exchanged glances with each other.

Major issues in the branch have been communicated to the head office for a long time, and solutions have been worked out.

Troubling the big boss with trivial matters will only make the big boss think you are incompetent.

"Mr. Xu, the Modu office is developing very fast, and the company has also hired many new people. They all admire you, so please see if you can participate in our team building this month." Shen Nanpeng said with a smile.

Everyone's eyes lit up, this was indeed a good idea.

You can flatter the big boss without being looked down upon.

"When will your team be formed?"

"Just this Saturday."

Xu Liang nodded after thinking about it briefly. It would be a good thing to get closer to his employees.

And it won’t delay your schedule in terms of time.

"Okay, remember to remind me when the time comes."

Li Jinling nodded.

After announcing the adjournment of the meeting, Xu Liang walked around Hanhua and was about to leave, but was stopped by Shen Nanpeng.

"Mr. Xu, there is an investment I am not sure about, and I would like to ask for your advice."

"Is there anything else that your old Shen can't make up his mind about?"

Shen Nanpeng: "The main reason is that the amount of investment this time is too large, and the target company also has some hidden risks."

"Let's go to your office and talk."

"Please come this way."

When he came to Shen Nanpeng's office, the former, who knew his habits, immediately handed down the information.

"Prince's milk?"

"You know that too?"

"Don't forget that Master Kong is also involved in the dairy industry?"

Tianshan Dairy, a subsidiary of Master Kong, was developed based on the inheritance and integration of Delong Dairy.

With Master Kong's continuous investment and the channels of Kelong and Yihaodian, Tianshan Dairy has not only integrated more than half of the milk sources in Xinjiang Province, but also developed into the fifth largest milk company in the country.

Second only to Mengniu, Yili and Bright Dairy.

But in some segmented tracks, there are stronger companies.

For example, Sanlu is the leader in the milk powder industry, and Taizi Milk is the top player in the lactic acid bacteria milk industry.

"Do you want to invest in Prince's milk?"

Shen Nanpeng nodded, "In order to pursue listing, Taizi Nai is contacting major investment banks to complete the final round of fundraising, including us."

Before listed companies go public, they raise funds from large financial companies in order to have these large companies with powerful connections endorse their listing.

It not only reduces the difficulty of listing, but also increases the trust of investors.

After all, in a general sense, companies that top financial institutions are optimistic about are basically not too bad.

"What are you worried about?"

“Li Tuchun’s ambitions are too great.

Since 2002, Prince Milk Group has invested more than 3 billion yuan to build five major lactic acid bacteria milk production bases in Zhuzhou, South Lake, Miyun, Beijing, Huanggang, North Lake, Kunshan, Jiangsu Province, and Chengcheng, with an annual production capacity of 30 billion yuan.

In addition to production, Prince Milk Group has invested hundreds of millions of yuan in brand promotion every year since it won the CCTV bid for 88.88 million yuan in 1998.

At present, the liabilities of the entire Prince Milk Group have exceeded 2.7 billion Chinese dollars.

Although the revenue of Taizi Milk Group in 2005 has reached 2 billion Chinese dollars and exceeded 1.34 billion Chinese dollars in the first half of 2006, the debt level is still too high.

If Taizi Milk Group can maintain its current development speed, it will not be difficult to repay the loan given that they account for more than 70% of the lactic acid bacteria industry.

But Li Tuchun is a little eager for success. He wants to use this fund-raising and the money raised from the listing to develop Prince Milk Group from a single field of lactobacilli into a mainstream dairy company like Mengniu, Yili, and Tianshan.

The production bases he invested heavily in Zhuzhou, Miyun and other places were prepared to expand the product matrix.

Therefore, not only will Tai Zi Nai’s debt not be reduced, it may continue to expand.

But the high-debt approach to development is itself a gamble.

There is too much uncertainty.

But the brand and sales of Prince Milk are indeed a company with a bright future.

So now I am in a bit of a dilemma. "

"Give up, Prince's Milk is not suitable for investment.

I believe you have also seen Hanhua’s internal analysis report on U.S. subprime mortgages. Once something goes wrong, it will be a global crisis.

All financial institutions will be affected.

Similarly, all companies with high debt levels will face the problem of broken capital chains. "Xu Liang said directly.

Of course, this is just a superficial excuse.

The key is melamine.

The outbreak of the Sanlu incident directly destroyed China's dairy industry.

Whether it is milk powder, liquid milk, or lactic acid bacteria, all products containing milk have been severely affected.

Although Xu Liang has planned to intervene in this matter.

But he is not sure whether he can really avoid the outbreak of this incident.

Of course, as Shen Nanpeng said, Li Tuchun's ambition and gambling nature are also the reasons why he is not optimistic.

In his previous life, when he participated in the EMBA study of the Cheung Kong Graduate School of Business in order to expand his network, the business case of Prince Milk was often mentioned.

In 1996, starting with 300 yuan, after trying to sell calendars and open a hotel, the 36-year-old Nanhu native Li Tuchun established the Prince Milk Factory in Zhuzhou.

In 1997, Prince Milk gambled 88.88 million yuan on CCTV's "Advertising King" to make a name for itself in the national market.

From 300 yuan to 88.88 million in one year, it was still the 1990s.

Is it possible?

Of course, as long as you are the male protagonist of a certain business novel.

But reality is not fiction.

Li Tuchun didn't have that much money, and even the 200,000 yuan he used to start with was borrowed.

But with his ambition and gambling nature, he won the CCTV bid with 88.88 million yuan.

Xu Liang felt that his gambling nature was big enough.

But it was not enough in front of Li Tuchun.

He used 200,000 yuan to leverage 88.88 million yuan, with a leverage ratio of 444.4 times.

It was simply a madman's game.

But he did bet right.

Once the Taizi Milk advertisement was broadcast, it instantly became a well-known celebrity household product. Not only did he easily get nearly 1 billion orders, but the bank also gave him a low-interest loan to expand production.

Li Tuchun's career expanded rapidly like a balloon.

In just seven years, sales increased from a few million to 3 billion in 2007, accounting for 70% of the national lactic acid bacteria market.

Maybe it was too smooth, which magnified Li Tuchun's gambling nature.

In order to go public, Taizi Milk received $73 million from United Bank of America, Morgan Stanley and Goldman Sachs.

On the other hand, Li Tuchun also borrowed 500 million yuan of unsecured and unsecured low-interest loans from six consortiums led by Citibank under personal guarantee.

He made a bold statement: "Taizi Milk will surpass Bright Dairy within one year and Yili and Mengniu within three years."

In order to achieve his goal, he signed a bet agreement with the investment bank - within three years after the investment, Taizi Milk's performance growth must exceed 50%, otherwise it will lose its 61.6% stake.

What is an investment bank?

Investment banks are wolves that eat people without spitting out bones.

More than 99% of those who signed a bet agreement with an investment bank were eaten alive by them.

In Xu Liang's previous life, there were very few companies that had successfully bet.

Investment banks have seen too many companies, and playing with probability, almost no one is their opponent.

Li Tuchun is no exception.

Taizi Milk ran into two mountains, melamine and the subprime mortgage crisis.

Before he could recover from his dizziness, he ran into the collection of Citibank and other bank groups that suffered heavy losses in subprime loans.

Li Tuchun was struck out.

As for the Taizi Milk incident that happened later, that was another matter.

As a senior executive of Hanhua, Shen Nanpeng had of course read the group's internal analysis report on US subprime debt.

But there are many such reports on the market, and no one knows whether it will explode.

However, there are too many examples of the big boss's investment vision and foresight of crises.

Since he said so, Shen Nanpeng believed it half in his heart.

"It seems that I have to give up."

"Reluctant?"

Shen Nanpeng nodded, "I have been investigating this project recently."

"Unless you can buy it directly, I am not optimistic about the investment in Taizi Milk."