Although financing is convenient after the relocation of the headquarters, Li Shufu has always wanted to land in the capital market. Today we will talk about Geely's backdoor listing.
In 2002, Geely Automobile sold 50,000 vehicles and earned 3.058 billion yuan. Although the growth is strong, the profit is low, with a profit of only over 60 million yuan.
As a result of determining the business direction focusing on the development of economical cars, Geely has reached a design cooperation of more than 40 million US dollars with the Italian automobile project team, and also spent more than 30 million US dollars to purchase technology and various equipment from South Korea, and plans to jointly build "China-Korea 1".
Moreover, Geely's medium and long-term planning-"Horse", "Cheetah" and "Lion" have also been implemented, and the total investment of Geely Automobile Industry City in Taizhou, Zhejiang Province under construction alone is as high as 4.9/kloc-0.0 billion yuan.
It can be seen that Geely was under considerable financial pressure at that time, and listing financing became the choice that Geely had to face.
On March 24, 2003, Zhejiang Geely Holding Group Co., Ltd., which is mainly engaged in the development of automobile industry of Geely Group, was established. At the same time, the non-automobile industry was separated from the automobile industry, and Mingtai Group was established separately in 2004.
The picture shows Anhui Chai Quan Electric Power.
At first, Geely wanted to realize the indirect listing of A shares with the help of Anhui Chai Quan Power.
At this time, Chai Quan Power mainly deals in single-cylinder and multi-cylinder diesel engines, and also hopes to introduce an automobile enterprise with development potential to seek greater development.
On June 10, 2003, Chai Quan Electric Power announced that the controlling shareholder, Anhui Chai Quan Group, was in contact with Geely on the transfer of the company's shares.
If the integration is successful, Chai Quan can get an automobile factory for it, and Geely has its own engine base, which is undoubtedly a win-win choice.
However, this equity acquisition ended in failure, mainly because the local government hoped that the automobile enterprises in this province would reorganize all-diesel power.
What is the picture?
What we lose in hake we shall have in herring. Another Anhui native appeared and became the "Mr. Key" of Geely's listing.
This person is He Chuxue. After graduating from Anhui University of Finance and Business, he worked for China Resources in Hong Kong. 1997 began to emerge in the capital market after leaving China resources.
Before I met Li Shufu, he just had a shell resource in his hand-Guorun Holdings, and the bid was about 400 million to 500 million.
However, Li Shufu was able to get in touch with He thanks to their good friend Gui Shengyue.
Li Shufu told Gui Shengyue, who had worked in China Resources, about the development of Geely Automobile, saying that Geely had just started and was short of funds, and it did not have the conditions for IPO (initial public offering) listing for the time being.
Gui Shengyue suggested: "Since IPO listing is difficult, do you want to find a way to go to Hong Kong for backdoor listing?"
Although Li Shufu didn't have much hope for this, he didn't intend to miss this opportunity, so he entrusted this matter to Gui Shengyue and happened to meet him. Gui Shengyue introduced He Chuxue to Li Shufu.
Li Shufu, who is already short of money, is unlikely to pay such a large sum of money to buy a shell. Li Shufu wanted to think. This opportunity is good, but we need to try it in another way.
After the contact and communication between the two parties, we finally chose a plan to maximize the interests of both parties: through joint venture, Geely Automobile will be gradually put into this listed company, and Li Shufu will become the major shareholder.
In fact, there are risks in this. If the joint venture does not succeed, it will take a lot of energy and time. Might as well buy a shell resource. But the key is that both sides are people with long-term vision and choose to trust each other, so the cooperation can be successful.
In March 2004, Guorun Holdings announced that it was renamed as Guorun Holdings Limited (0 175. Hong Kong) to Geely Automobile Holdings Limited (0 175. HK)。
A year later, Geely Holding fully acquired PG(ProperGlory), the parent company of Guorun Holdings, and completed the acquisition of Geely Automobile (0 175. HK), successfully landed in the capital market, and Gui Shengyue, who made suggestions, became the president of this listed company.
Li Shufu said modestly that he didn't know much about capital operation. Fortunately, "there are so many people to help him operate."
The role of landing in the capital market for Geely is far more than "blood transfusion".
As a director in charge of the informatization of listed companies, Yin Daqing attaches importance to promoting the modernization of the whole group through the top-level design and management of listed companies themselves.
When Li Shufu first went to Hong Kong to open the board of directors of listed companies, the first thing he got was a code of conduct for directors, which clearly stated that he was not allowed to do anything, and if he did anything, he would be investigated. And you are not allowed to read all the lines. You need to read them yourself. It's kind of like taking an oath.
Li Shufu also brought back a Hong Kong newspaper with his own image on it and a headline beside it, which meant that Li Shufu never dared to make any noise again.
Write at the end:
Through the family's "turn around", process reengineering and landing in the capital market, Geely's enterprising temperament has been changed in one fell swoop, and at the same time, the construction of Geely's quality management system has been promoted, laying the foundation for its rapid development in the future. From another point of view, Geely's capital operation has grown rapidly, which has become one of Geely's "invisible" strengths, opening the "buy buy Buy" mode and realizing "fission".
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.