The game of capitalization is a game where money comes in fast and goes out fast.
We've got a great deal to say about this, but we've got a great deal to say about the way we're going to be able to do this.
In January of this year, a court announcement restricting high consumption pushed Cai Xiaoru, the former chairman of Dahua Intelligence, off the stage. From the youngest billionaire in Zhongshan City to today's woes, a few years of light, Cai Xiaoru experienced a roller coaster life.
Born in 1979, Cai Xiaoru, 16-year-old junior high school graduation began to assist his parents to do business. 2003, at the age of only 24 years old, became the actual control of Dahua Intelligence.
In 2010, when the company went public, the 31-year-old Cai Xiaoru became the youngest billionaire in Zhongshan City with more than 2.6 billion yuan, and is the object of worship and pursuit of many young entrepreneurs.
After tasting the sweetness of the wealth explosion in the capital market, his ambition also began to expand, and from then on opened the road of expansion of the M&A is crazy, and even by the media crowned the "M&A maniac" title.
How crazy is his M&A expansion path? Look at the following data to know.
In 2013, Dahua Intelligence to 433 million yuan mergers and acquisitions of the new East Network. 2015, its one year to participate in at least six companies mergers and acquisitions or partial acquisitions, the total cost of more than 500 million yuan.
By the end of 2019, Dahua Intelligence had accumulated involvement in or control of 11 listed companies.
Frequent mergers and acquisitions have helped create one fresh story after another, and further pushed up the market value of Dahua Intelligence. The wealth of the book is constantly enlarged, and Cai Xiaoru's ambition is also more inflated, after a large number of mergers and acquisitions on the road of capital arbitrage.
His first goal is to cash in on the market value of Dahua Intelligence. In addition to the announcement of the public 4 times to reduce, 2 times to increase, a total of about 135 million yuan of cash, Cai Xiaoru in September 2016 and January 2017, respectively, with the "Zhuhai plant system" Zhuhai plant far signed a share transfer agreement, the cumulative transfer of Dahua Intelligence 18.56% of the shares, 3.633 billion yuan of cash.
Cai Xiaoru made a big profit, but let Dahua Intelligence backed by heavy debt and operational burdens.
At the end of 2017, Dahua Intelligence short-term borrowing grew dramatically to 2.354 billion yuan, accounting for nearly 30% of the company's total assets, long-term borrowing at the end of 2017 also soared to 723 million yuan, while current assets accounted for the ratio of current liabilities is only 0.79, far below the level of normal enterprises "2".
In 2018, Dahua Intelligence more huge loss of 1.742 billion yuan, the liquidity crisis highlighted, the stock price fell off a cliff.
At the moment of crisis, Cai Xiaoru is not thinking about how to save the company, but continue to move the transfer. He reached an agreement with the Fuzhou Golden Control, proposed to the remaining 258 million shares at a price of 2.245 billion yuan, all transferred to the Fuzhou Golden Control, attempting to completely cash away.
However, after more than a year of gaming, the agreement was terminated.
It was not until September 17, 2020 that things took a new turn. Dahua Intelligence raised 1.16 billion yuan through the issuance of 252 million shares to Fujian Tianzhi in a fixed number of shares, diluting Cai Xiaoru's shares, and the controlling shareholder became Fujian Tianzhi, and Fujian Tianzhi's major shareholder Chen Rongsheng became the actual controller.
Cai Xiaoru from the capital market huge amount of cash, and did not say goodbye to capital operation. Instead, outside of Dahua Intelligence, in the name of an individual to continue the capital game.
Starting with his stake in Yidoli in 2014, he has taken shares in listed companies such as Huafeng Microfiber and Panda National Travel.
In 2017, he also through the Shenzhen Huaxin Chuangli Technology Industry Development Co., Ltd. to more than 1.1 billion yuan of huge capital into the owner of the Golden Wright, and as expected to become the actual controller.
In addition, he also appeared in the IPO offline issue investor list of Aipeng Medical, Qingnong Commercial Bank, Hualin Securities, Qicai Chemistry, Lihua Corporation, Hengminda, Kanglong Chemistry, Bank of Qingdao, and New Dairy.
However, Cai Xiaoru's personal investments have been equally unsuccessful.
In 2018, Dahua Intelligence suffered a huge loss, and in June of that year, Cai Xiaoru lost control of Dahua Intelligence and resigned as chairman of the listed company.
In 2019, due to transfer disputes with cardholders, all the shares of Dahua Intelligence held by Cai Xiaoru were frozen by the court and pledged to creditors one after another; in August of the same year, the shares of Jin Lite held by him through Huaxin Chuangli were frozen by the Shenzhen Intermediate People's Court; in addition, the shares of Cai Xiaoru's holdings of Yidoli were also frozen in their entirety; and in December 2020, Cai Xiaoru sold all of the shares held in the The Panda National Tourism and so on.
By now, Cai Xiaoru's shareholdings have almost been pledged or frozen by the court.
The capital game, when the wind is blowing, the money comes fast, making rich and halo effect is strong, once dipped in the addiction, and addiction is far more than just Cai Xiaoru a person.
As the head of the "Sinotech system", born in 1978, Yan Jinggang, 17 years old, began to break into the Shanghai Bund, before and after the IT, translation agency, and ultimately chose to inherit the mantle of the fathers.
In 2004, Yan Jinggang was brought into the precast pile industry by his uncle, and established Shanghai Sinotech Pile Industry Development Co. With his flexible mind, ability to study and willingness to work hard, Yan Jinggang led the rapid development of Sinotech Pile Industry.
In 2008, Sinotech Pile caught up with the national 4 trillion yuan to stimulate domestic demand for infrastructure, and in 2010, it stepped on the wind of Shanghai World Expo, which greatly increased the demand for transportation, municipal and other infrastructure investment and construction, and in just five years, Sinotech Pile's total assets increased by 69 times, the total revenue increased by 89 times, and the net profit increased by 124 times.
Yan Jinggang himself was honored as one of the "Top Ten Innovative Elites in Yangtze River Delta in 2007". Under the fame and fortune, Yan Jinggang does not seem to be satisfied, watch the capital market wave after wave of wealth, Yan Jinggang suddenly found that the industry to money or too slow, so he began to plan in the A-share listing.
In the listing process, because of the occurrence of a number of safety accidents, Sinotech piling two IPO failed, Yan Jinggang can only "curve save the country", finally on December 12, 2013, through the shell Chenghai shares successfully landed on the A shares.
Yan Jinggang stepped into the A shares, like a changed person, crazy open the capital game. He followed the trend of acquiring a variety of hot industry enterprises, watching the stock price as if a roller coaster, ups and downs, no stimulation.
Sinotech piling industry just listed more than half a year, will be disclosed fixed plan, to raise 8.672 billion yuan, for the acquisition of Internet game company point interactive and film and television company Beijing Ruyi Xinxin film.
It is worth noting that the total assets of Sinotech Holdings is only 6.562 billion yuan, and the net assets is only 2.250 billion yuan, and the scale of acquisition is almost 4 times of its own net assets, and the scale of its capital action is shocking!
At that time, the game film and television companies are hot, a precast concrete piles for the main business of the company, to acquire and their own main business has nothing to do with the handicraft and film and television companies, more incredible.
Although this fixed price ultimately failed, but with the help of mergers and acquisitions of hot industries, ignited the market sentiment, let Sinotech Holdings in a year and a half time rose more than 4 times. 2014 August, Sinotech Holdings is a single-month increase of 110%.
After the failure of the acquisition of film and television companies, Yan Jinggang whirlwind began to plan the injection of military assets. in September 2015, he selected is Wuhan Lord Dragon, the intention of the total valuation of about 5 billion yuan.
The same big strokes, the same industry big hotspot, the same so that the unknown capital market feverish, however, only a week later, the acquisition of Wuhan Kingfisher will be declared acquisition of the bankruptcy, but this is not important, important is that the acquisition of military hotspot of big sums of money, "the story is richly full," can attract "leek", so that the share price soared.
Acquisition is always fruitless and end is not, so after two "setbacks", Yan Jinggang wife Liang Xiuhong began to debut. December 2015, Liang Xiuhong to 774 million yuan to acquire a 15% stake in Hongda Mining, become the actual controller of Hongda Mining.
The next two years, through the pledge of equity and high leverage, the couple began a variety of capital operations. 2016 Yan Jinggang to 2.416 billion yuan to buy back Sinotech Pile, and then acquired the game assets under the Hongda Mining.
Through a series of large mergers and acquisitions, Yan Jinggang couple leverage has been added to the limit, As of July 2016, the two directly and indirectly held the market value of listed companies market value of a total of 4.759 billion yuan, the pledge rate has reached more than 90%.
Despite the enormous financial pressure, Yan Jinggang and in May 2017 acquired 100% of the equity of Suzhou Zhengyue, the transfer price of 100 million yuan, the total price of the transfer and the assumption of debt totaled up to 2.681 billion yuan.
Paying 100 million yuan transfer fee, can indirectly control the listed company under the Suzhou positive joy YouFu shares, which is a great temptation to Yan Jinggang, after all, the debt is not in a hurry to pay, Yan Jinggang decided to "gamble".
After the completion of the transfer, Yan Jinggang finally realized his dream, became the hands of three listed companies in the "Sinotech system" in charge.
What he didn't expect was that the acquisition would be the last straw that broke the camel's back. Originally, the funds were not abundant, and the source of raising funds mainly relied on equity pledges, but the couple saw that the shares of the listed company had been pledged as much as possible, where to get the money to assume the huge debt of the newly acquired company?
The answer can be seen in the regulatory penalty notice published in 2020.
Screenshot of the announcement
According to the results of the investigation and the penalty notice, Yan Jinggang, after acquiring control of the shares of Yufu in 2017, there are a number of cases of misappropriation of funds and violations of guarantees on the shares of listed company Yufu, with the amount of violations amounting to 1.407 billion yuan.
This money line will be clear up, "money" cheap take Youf shares, and then through the listed company funds occupied and guarantees to obtain funds to repay the acquisition of the debt costs borne, a good "empty gloves white wolf", but did not escape the The first step is to make sure that you have a good understanding of what you are doing and how you are doing it.
Yan Jinggang as the actual controller, organization, planning, leadership and implementation of the company's inflated profits and violations of the guarantee and all the illegal matters involved, the Securities and Futures Commission not only fined, but also imposed a lifetime ban on the securities market.
Yan Jinggang also disappeared from the scene.
Chasing the wind mouth, play capital, not exclusively belong to the second generation of the rich, young entrepreneurs can afford to suffer, suffer tired, after a lot of tests and trials, but also some people can not resist the temptation to fall on this pass.
On October 18, 2017, just three and a half years after the establishment of the fun store, it went to the NASDAQ bell listed, became China's third in the NASDAQ listed Internet finance company, its founder Luo Min is also seen as a "grassroots rebound" role model.
When he was a kid, he was often teased by teachers and classmates because of his short stature and dirtiness. Since then, Luo Min has understood that "the only way to be successful is to gain respect and impress people".
In 2005, Luo Min, who graduated from Jiangxi Normal University, was carrying 2,000 yuan, and went to Peking University to prepare for graduate school, wanting to prove himself by getting into the country's best school. However, after listening to Robin Li's speech on entrepreneurship in a lecture, he changed his mind and decided to give up the exam to start his own business.
After nearly a decade, Luo Min tried all kinds of wind and experienced all kinds of failures. Until 2014, he finally stepped on the consumer installment of this big hot spot, and then blindfolded wildly, all the way to the song.
In March 2014, Fun installment (predecessor of Fun Store) was established, with campus loans as a breakthrough, by charging high interest, to provide installment consumer loans to young people, and then launched the unlimited use of micro-credit loans, harvested a large number of young people borrowing and consuming.
For example, an Apple phone 4999 yuan, no deposit, no credit card how to buy? Fun store can give you an installment consumer loan, two years of monthly repayment of 299 yuan on it. Because this model meets the needs of students to overspend, the business is growing rapidly.
In 2014, Qundian raised Series B and C financing; in April 2015, it received Series D financing; and in August of the same year, it raised about $200 million in Series E financing.
In 2015, the cooperation with Ant Gold Service made Qidian soar to the sky, and with the support of Alipay's huge traffic, it realized explosive growth; in the quarter after the cooperation between the two sides, Qidian's average new users, monthly live users, quarterly live users, transaction amount and transaction volume all realized growth of more than 200%.
By the time it went public on NASDAQ on October 18, 2017, Qidian was a half-year net profit of nearly 1 billion, with a profit margin of 53.11%, 26,089,000 monthly active users, 7,023,000 active borrowers, and a transaction amount of 38.2 billion yuan.
With the halo of Internet finance, less than two billion in revenue but nearly one billion in net profit, huge user traffic and low customer acquisition costs, so that Wall Street investors are heartbroken.
Fun store opening price of $ 34.35 / share, the issue of the day that jumped 43%, the market value easily exceeded $ 10 billion dollars.
At this point, Luo Min experienced the highest moment of glory in his life, but the company has long been in crisis.
"Campus loan" crazy expansion, the industry is often chaotic, a variety of temptation to loan, "naked loan", loan sharks in the country flooded, many students have paid a terrible price, and some are even forced to the end of the road.
The company has been recognized by the media as a "scourge of student loan sharks", and Luo Min himself has been criticized by the media, so much so that the company and Luo Min did not dare to accept any more media interviews.
This is not all, listed only two years, when stood at the side of Luo Min's other five shareholders, have cashed out to go away, backing one by one also left.
When the main business problems, Luo Min did not think about the solution, but resolutely chose a new wind mouth, once again "transformation entrepreneurship".
In January 2018, the fun store launched a large white car staging, just 80 days, quickly opened 175 self-owned stores across the country, the cost of expenditure is huge, the financing of $900 million, by the end of 2018, it burned $300 million.
Due to the lack of knowledge of the car sales industry, insufficient transformation of the positioning of the car user group, the high operating costs brought about by self-built stores, employee expenses and so on, as well as the late stage of the joint fraudulent loans of the collusion between employees and customers, etc., Dabai Automobile has experienced all the possible problems of the industry, all over the place.
In May 2019, the fun store fully contracted the business of the big white car, and stopped the new car sales business in the same month.
During this period, Qidian also launched the "interesting learning" to provide 1-to-1 online teaching for children; and then launched a high-end home management program "only spectrum home" and luxury e-commerce, but all of them failed miserably.
Time and again the transition, time and again failed. At the same time in the transformation failure, the capital market is gradually interested in fun store, fun store latest market value than the peak evaporated more than 90%, while Luo Min is still with fun store in the "wind mouth" on the road to carry out a variety of switching.
The same is true for Chen Ou of Jumeiyupin, which was listed on the New York Stock Exchange in 2014 after just four years of existence, with an opening price of $27.25 per share and a market value of $3.8 billion.
As the youngest bell ringer on the New York Stock Exchange in 220 years, Chen Ou, who was only 31 years old, experienced the ambition and splendor of being on the streets of Wall Street.
However, shortly after its IPO, its gross and net profit margins were in serious decline, and it was later hit with a class action lawsuit by US and Chinese law firms over a variety of parallel imports, fake products, and after-sales service issues.
After encountering the problem, Chen Ou also chose to "hide" and "transform".
In 2015, he threw $250 million to invest in the mother and baby e-commerce baby tree, and then he set up a film and television company, Jumei Film, and entered the market for *** enjoyable rechargeable treasures, and so on.
But this has not been able to change the situation of Jumei Youpin continued downward. After four years on the market, Jumei Youpin from the initial $ 27.25 / share, plummeted to privatization of $ 7 / share, and ultimately bleak farewell to the capital markets.
And Tang Jun, born in 1987. From 2009, the establishment of a consulting company, financial investment companies, environmental technology companies; in 2012 to follow the trend of the establishment of the group loan network, crazy and savage development of P2P business, and ultimately due to the collapse of the capital chain and bankruptcy and closure. Tang Jun was investigated on suspicion of illegally absorbing public deposits.
From the young tycoon Cai Xiaoru, to the head of the Sinotech system Yan Jinggang, and then to the Fun Shop Luo Min, Jumeiyuping Chen Ou, group loan network Tang Jun ...... they are just the tip of the iceberg, I do not know how many entrepreneurs and capital players, because of the impatience and greed and flash in the pan, disappeared.
The old generation in the industrial field of hard work and entrepreneurship, the new generation feels that the industry is too soil too slow, capital is the ability and trend, but do not know that the capital is also a double-edged sword, to help you, can also destroy you.
A young entrepreneur, because of blindly follow the trend, the impetuous pursuit of fast money and the rapid rise, and fast fall, as if a flash in the pan, become a hasty passer-by, leaving only a chicken feather.
Many people in some crazy operation only to find that the success of the people and the success of the road is largely similar.
In 1987, 43-year-old Ren Zhengfei forced by life, looking for friends to put together 21,000 yuan in Shenzhen registered Huawei Technologies Limited, the early stage of the founding of Huawei, Huawei by the agent of a Hong Kong company's programmable switchboard to get the first bucket of gold.
In the process of selling equipment, he saw the desire of China's telecommunications industry for program-controlled switches, so Huawei invested all the money into the development of its own technology, and from then on, bid farewell to the agency, and toward technological innovation and independent development.
In 33 years, Huawei has resisted the attraction of the real estate industry's profiteering era, resisted the temptation to get rich quickly in the capital market, and built Huawei into a company that can compete with the world's number one power.
Three decades as one day, never deviated from the main business, in the communications industry to achieve the ultimate, but also achieved the ultimate success. Today, Huawei still has not chosen to go public.
Similarly, Fuyao Glass founder and chairman Cao Dewang, at the beginning of the venture, starting from a shaped glass factory buyer, a do is six years, hard-working, never speculative.
In 1985, the company's main business shifted to automotive glass, and has never changed, but only the pursuit of quality, the development of technology, and finally became China's first and the world's second largest supplier of automotive glass.
Now the Mercedes-Benz cars on the street, more than 70% of the use of "Fuyao glass".
"Do not do real estate, do not do the Internet, do not do finance, do not do coal mining." This "four don't do" is widely spread, is the direction and guidelines that he has always insisted on running the business.
Similarly, the founder of Nongfushanquan, Zhong G睒睒, if not "2021 Hurun Global Rich List" list, put it in the spotlight, you may not have thought that a water seller will become the richest man in Asia.
Starting from Wahaha oral fluid as an agent and distributor, and then setting up his own Yangzhengtang company, Yangzhengtang turtle pills became a hit with its unique concept and publicity techniques. In a year's time, turtle pills were sold from Hainan to the whole country. Nongfushanquan rise, from zero to the first market, each time in the rain of bullets to stand out.
He does not write books, do not accept special interviews, even his own company listed on the bell he did not show up. When all the health care enterprises in the 90s are making a lot of money, glittering glittering but chose to withdraw. In the face of fierce competition in the pure water market, he put his feet on the ground and left Wahaha behind to become the ultimate king.
Ren Zhengfei, Cao Dewang, and Zhong furtively glittering is just a microcosm of successful entrepreneurs, from whom we see the necessary qualities of successful people: focus, down-to-earth.
Enduring loneliness, not forgetting the original intention, focusing on the main business, one step at a time, buried in the head to do industry, in the right road not resigned to, and ultimately to do bigger and stronger.
1. "The company went public at the age of 31, became a party of the rich, and now is restricted from consumption, what did he do wrong? Daily Economic News
2. "Sinotech system" Yan Jinggang defeat, the former leverage to pry back two listed companies, now the "base camp" is empty. Failure? Daxue Finance
4. "Nongfushanquan's chairman became Asia's richest man, and how did he make his 550 billion dollar fortune? People's New Vision
5. "The story of Ren Zhengfei and Huawei! Poor origin, 43-year-old entrepreneurship, and now for the country to win! Yang Yang Finance
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