Chapter 851 Stripping
Before Rowling and the others came back, Li Daqi and Qin Zhengguo arrived first.
Song Yuanchao stood up and took them to the study, where they sat down and started talking about business.
In the past six months, because Song Yuanchao has been away from the country, Shenghua's work has been handled by Li Daqi, Qin Zhengguo and Xu Hui in Hong Kong.
Although Song Yuanchao had been in contact with them by phone, some things could not be done by phone alone, so before Song Yuanchao came back this time, he made an appointment with Li Daqi and Qin Zhengguo to meet in Shanghai.
Drinking tea and listening to Li Daqi and Qin Zhengguo's reports on the company, Song Yuanchao wrote down a few key points in his notebook from time to time, and then asked about some situations.
More than an hour later, the basic report was completed. Song Yuanchao asked if there was anything else to say. At this time, Qin Zhengguo couldn't help but ask, "Yuanchao, are you really going to end Shenghua Clothing? Are you going to reconsider it?"
Before returning, Song Yuanchao called Qin Zhengguo and told him that he was going to sell Shenghua Clothing's business, including a series of industries such as the Shenghua Garment Factory in Pengcheng.
After Qin Zhengguo received Song Yuanchao's call, he started to arrange this work. He has completed the asset audit and other preliminary preparations in recent days and is just waiting for Song Yuanchao to come back to make the official decision.
Although Qin Zhengguo followed Song Yuanchao's order to the letter, he still had some objections to Song Yuanchao's decision. After all, Shenghua Clothing was the original industry of Shenghua. From its establishment to now, Shenghua Clothing has made great contributions to the establishment of Shenghua. Without Shenghua Clothing, there would be no Shenghua Group today.
Especially at the beginning, Shenghua Clothing provided a large amount of cash flow for Shenghua Group and was also a very important profit source within Shenghua Group. In addition, Shenghua Group went public in the name of Shenghua Clothing in the past few years and obtained a large amount of funds. Qin Zhengguo, Li Daqi and others also became billionaires with assets of hundreds of millions by virtue of the listing of Shenghua Clothing.
Now Song Yuanchao suddenly decided to close Shenghua Clothing and sell its assets. Qin Zhengguo is still emotionally reluctant to let go.
"From the perspective of the textile industry, although the export profit is much less than before, the overall export volume is still rising. As the main company of Shenghua's listing, is it too hasty to sell Shenghua Clothing under the current circumstances? Why not wait a little longer?"
"Daqi, what do you think? You used to be the general manager of Shenghua Clothing, and you are more familiar with this area. What do you think?" Song Yuanchao did not answer Qin Zhengguo's question, but asked Li Daqi instead.
Li Daqi frowned and thought, "Yuan Chao, did you hear some rumors outside this time? That's why you made this decision?"
Song Yuanchao smiled and shook his head, saying, "Let's not talk about the slightest disturbance for now. Let me ask you, since the reform and opening up, how many textile companies, including clothing companies, are there in the country? Or, to put it in a small way, how many ?"
For a moment, Li Daqi frowned, and even Qin Zhengguo seemed to be thinking about something.
Song Yuanchao tapped the lighter on the armrest and stood up, saying, "I understand your concerns, and judging from the current situation, the textile industry or clothing products will still have a certain degree of competitiveness in the future. But there is one issue that must be clearly seen. From the early 1980s to now, a full ten years, that is, the development speed of similar domestic enterprises and industry competition."
"Just now, Zhengguo also mentioned the current decline in profits of Shenghua Clothing. Although the decline is not too obvious, and due to the continuous increase in export volume, the overall corporate profit remains in a good situation."
"But the problems facing this industry are real. To be frank, from my point of view, the textile and clothing industries are already sunset industries. More and more companies and private capital are entering this industry , and the competition is becoming more and more fierce. If this situation continues, the export volume will continue to increase in the future, but the profit will be reduced."
"Do you remember that Liu sold the electrical appliance factory to Shenghua last year?" Song Yuanchao asked. Seeing the two nod, Song Yuanchao asked again: "Why did Liu sell the electrical appliance factory to Shenghua? Isn't it because of the continuous decline in export profits? Liu himself said that when he occupied the North American market with electric fans, the initial profit could reach a very high proportion, but now because of fierce competition, the profit can only be maintained at about 3%. The good days of exporting electrical appliances are gone forever."
"In fact, the principle is the same. The same is true for textiles. Initially, Daqi established the Tengfei Factory in Shanghai, and Zhengguo exported products in Hong Kong under the name of Shenghua. How much profit could it have achieved in those years? How much profit is it now? If the state tax refund is not included in the profit calculation, how much is the real profit? This is a very simple arithmetic problem. I think you can easily calculate it, right?"
Li Daqi and Qin Zhengguo looked at each other and nodded silently.
Song Yuanchao continued, "Shenghua acquired Liu's electrical appliance factory in order to switch production based on telecommunications and computer products. At the same time, we also have advantages in the domestic market that Liu does not have. We can survive comfortably just by relying on the domestic electrical appliance market without relying on exports. This focus is different from Liu's production of fans for export. As for the textile industry, Shenghua Clothing currently does not have the ability to switch production and change. Given this, its final result has long been predetermined."
"Right now, the textile industry has not yet reached the point of a sharp decline. From a business perspective, it is the best time to sell and solve the problem. If that day really comes, when this industry is so numerous that the entire market is ruined, who can we sell this industry to? Who will take over?"
The two were speechless. Song Yuanchao made it clear that the industry was not in a bad state yet, but there were signs of it. So now was the most appropriate time to sell the industry, and it was also the time to sell it for strengthening.
Song Yuanchao sold this industry to split and reorganize Shenghua Clothing, even if the Shenghua brand will still be retained in his hands after the sale, this is a prerequisite. And from the current market situation, there are many people who are interested in acquiring Shenghua Clothing Industry. As long as Shenghua does not ask for too much, there will be no problem in splitting this part of the industry and selling it at a good price.
Although the current business world has the means of business operations, the complex capital operations like those in later generations have not yet been perfected. However, there is no problem with the initial operations.
As the controlling shareholder of Shenghua Group, Shenghua Capital has professionals engaged in this field. As long as Song Yuanchao points out the direction, there will naturally be professionals to handle the matter.
After thinking it through, Qin Zhengguo dispelled his worries and told Song Yuanchao that he would deal with the matter as soon as possible. If everything went well, it would not take long to sell these assets at a good price.
"Will the company's focus in the future be on paging stations and the telecommunications market?" Li Daqi asked. Qin Zhengguo interrupted and said, "And the computer and real estate industries, right?"
"This is just part of it." Song Yuanchao nodded: "Let's not talk about real estate for now. You should have some understanding of Hong Kong's real estate. Just operate according to Hong Kong's model. As for other industries, they can be classified as high-tech industries, whether it is paging stations, telecommunications industry or computer products. They all belong to this category."
"But there is an important problem with the high-tech industry, which is that it is updated very quickly. You know Microsoft, right? Bill Gates, who founded Microsoft, said something that I think makes a lot of sense."
"What?"
"He said that the company is always only eighteen months away from bankruptcy." Song Yuanchao said seriously, "Although this statement is a bit exaggerated, it is also true. This is how the high-tech industry is. Due to the continuous advancement of technology, product updates are very fast, and market judgment and corporate decision-making are also quite different from traditional companies. Once a wrong step is taken, it will bring irreparable consequences to the company."
"A few years ago, Wang Laboratories was the world's leading word processor manufacturer. Its founder, Wang An, rose rapidly with word processors, and then took the lead in logarithmic computers, small business computers and other office automation products, becoming the richest Chinese."
"But what about now? This time I went to the United States to learn about Wang Laboratories. After the personal computer, IBM's PC, appeared, Apple computers were hot-selling, and Microsoft's operating software continued to dominate the market, Wang Laboratories did not respond to the changing times, and due to internal friction, it made a series of mistakes in its decisions."
"Wang An Computer is now in a life-or-death situation. If it cannot make changes, it will be completely eliminated. High technology has made Wang An successful, but also led to its failure. The rise and fall of Wang An Computer is a lesson for us. If we do not advance, we will retreat. This is how the market works."
"The situation of Wang An Computer is so dire? Yuan Chao, are you sure?" Li Daqi couldn't help asking. Due to work requirements, Shenghua Telecom used some of Wang An Computer's products in some office facilities. In addition, as the richest Chinese man, Wang An had a great international reputation.
A few years ago, domestic newspapers published a special report on Wang An. Li Daqi had read this report and was deeply impressed.
"Aren't you planning to visit the United States after the Chinese New Year? Are you planning to be my neighbor in the United States? How about this, after the Shenghua Clothing issue is resolved, you can go and take a look, and ask around and you'll know. Sometimes seeing is believing, and you'll understand once you go there in person."
