Chapter 152: Revisiting the United States
IPO is the lifelong dream of many Chinese entrepreneurs, after all, they can bring their own companies to a small height, affirm their past efforts and efforts with enough to surpass 99.99% of their peers, and cash out all the achievements of their struggles in the financial market.
The survival rate of entrepreneurship is less than 1 in 10, and among the 10% of those who are lucky enough to survive, there are still very few who can make a profit and build a long-lasting business. Many companies that survive the bloody road disappear in the long river of history after 3 to 5 years, and if they want to meet various harsh conditions like a single-plank bridge to catch the IPO train, it is a chance to choose the person who is treated as the one in ten thousand.
Therefore, in the circle of entrepreneurs, the bosses of listed companies have the right to speak in their peers, and they seem to have drunk foreign ink in an instant and become an invincible regular army.
Looking at the list of large and small wealth, the richest people in the front have owned a number of listed companies, and capitalizing wealth has become an irresistible trend in modern business society.
When Han Hao decided to bring Volvo and Land Rover on the IPO track, there was already another IPO journey waiting for him.
Standing at the scene of the NASDAQ bell ringing, Han Hao smiled and applauded as Musk and Tesla executives excitedly rang the bell for the listing, which marked the successful completion of Tesla's IPO and became the first listed automobile company in the United States in 60 years.
Han Hao, who has gone through many bell ringing ceremonies, is no longer as excited as he was back then, and the only difference for him today may be that a set of numbers have been added to his personal wealth account.
As Zhonghua Group officially announced the investment and construction of a factory in California, and reached a five-year strategic cooperation agreement with Tesla, the two sides promised to cooperate in the field of new energy vehicles, resulting in Tesla's IPO being oversubscribed. The price of a share originally scheduled for $17 was raised to $20, and the subscription premium was as high as 15%, making Musk and other company executives laugh from ear to ear.
The successful IPO allowed Tesla to raise $250 million from the stock market, which will be used for mass production of Tesla's new Model Sedan and the first batch of owners will be driving the world's top pure electric sedan in 12 months.
In addition to being sought after by strategic investors in the primary market, Tesla is also favored by many institutions and shareholders in the public secondary market, as evidenced by the 11% rise at the opening. With the passage of time, this number continues to rise, which means that the market's acceptance of new energy vehicles is much better than expected.
As of the end of the day, it rose 43%, with a total market value of $7.6 billion!
This is Tesla's first-day performance on the first day of the market, which promises to bring American consumers an all-electric sedan that ordinary families can afford, but not a single production car has ever seen on the road.
Musk drew a big pie, but the American people did not hesitate to eat it, which may be a clear proof of the degree of development of the American financial market.
With Tesla's successful listing, Han Hao has also gained nearly $900 million in new wealth, which is enough to cover his previous large investment, and more importantly, it has given Zhonghua Group a strong ally in the United States.
"After the construction of the U.S. plant is completed, we will carefully consider the possibility of building a new gigafactory in China, because the new world's largest automotive market is full of imagination. ”
When Musk, who had a successful start-up, answered reporters' questions at the bell ringing scene, he slyly released another big piece of good news.
As for Han Hao, the car tycoon from China, he can't escape the reporters. In the business-oriented United States, a self-made super-rich man like him has won the recognition and respect he deserves after his fortune has been repeatedly exaggerated by the media.
"Will the Chunghwa Group compete directly with Tesla in the future? It is said that you have received huge subsidies from the Chinese government to grow into today's situation? Many American consumers have reservations about the quality of Chinese cars, what do you think of this issue?"
Compared with Chinese reporters, American reporters are directly firing on all the topics they ask, and they do not give face to the richest man in South Korea.
The actions of well-known business leaders are actually an important part of corporate PR. In other words, a well-known entrepreneur like Han Shoufu, being watched by many media all the time ensures that Zhonghua Group has a huge exposure, and its own publicity focus is better than many advertisements.
"We are strategic partners with Tesla, and we pay attention to win-win development. The automotive market is full of competition, and whether the relationship between the two parties is friends or rivals, it is believed that the only outcome is to get more benefits for consumers. ”
For the time being, Chunghwa Group and Tesla are not direct rivals, just like the difference in product positioning between Volkswagen and Mercedes-Benz BMW, which are both Germans. China's new energy vehicles take the mass route, while Tesla focuses on the luxury car segment.
Han Hao's answer reflected the old way, and he did not answer directly, but also gave various possibilities.
"As for the so-called large subsidies from the Chinese government, it is completely unfounded. Our company has always operated in accordance with business rules, relying on independent innovation and international operation to develop to today's situation.
Zhonghua Group is a joint-stock enterprise with clear property rights and the largest private listed enterprise in China, and the company's operation is transparent, which is fully illustrated by the financial reports released over the years.
I suggest you ask fellow journalists in China, or take a trip to China to find out what the Chinese government subsidies are all about.
You must know that when the joint venture automobile enterprises were hot in China, our Zhonghua Group was running around and begging for a birth permit. If I really want to say it, foreign capital has really enjoyed long-term supra-national treatment in China. ”
The business environment of the Zhonghua Group has only improved in recent years, after all, compared with the sons of state-owned assets, the status of private enterprises is still lagging behind under the same treatment. Even if it is a 4 trillion bailout, Zhonghua Group can only be said to have received reasonable treatment from private head enterprises, but it is still much worse than the credit of state-owned enterprises regardless of cost.
As for foreign investment, which is the largest target for attracting investment, it is basically welcomed everywhere in China, and they enjoy far more political and business resources than private enterprises.
Compared with state-owned and foreign-funded enterprises, private enterprises can only rely on themselves in the Chinese market, and they are also the groups with the highest degree of marketization. For example, most of the loans obtained by Zhonghua Group from banks are guaranteed by Han Hao with personal shares or the company's fixed assets, and there is no unconventional operation beyond the market-oriented rules, which is also the basis for him to have enough confidence to face the accusations.
"I think that the fact that the new car of the Chunghwa Group can get a high score under the strictest crash standards in the United States should be able to dispel many people's concerns. In addition, I have to emphasize that whether Chinese cars are good or not? The fiercely competitive market in the United States will give a fair evaluation. ”
The SUV Zhonghua "Tang" took the initiative to apply for the US IIHS test in the form of an imported car, and the crash results greatly surprised the Americans, and all the results were evaluated with close to full scores, and the safety of the vehicle reached the international first-class standard.
In order to break into the American market, the facelifted "Tang" was developed with the IIHS collision standard early on. To say that in the face of exams, Chinese have never been afraid of anyone. The scientific research experience accumulated for more than 1,000 years is the test-taking aura of the Chinese who "only read high".
Compared with the European characteristics of European boutique cars caused by narrow streets, the vast Chinese have resonance with Americans in their pursuit of large and comprehensive standards for cars. Therefore, the European car market suffered a waterloo, but it gave Chinese cars a new opportunity.
Another major task for Han Hao to go to the United States this time is to recruit American distributors and build Zhonghua Group's own distribution network.
Although there is little public opinion about the arrival of Chinese cars in the United States, the American Automobile Dealers Association (NADA) has welcomed the new Chinese players. The entry of Chung Wah Group indicates that the Automobile Dealers Association will usher in new members and growth points, and in this way, more jobs will be added. According to NADA, if Chunghwa Group can reach its sales target of 300,000 vehicles in the United States, it will bring at least 2,000 jobs to the distribution chain.
Sales and after-sales of new brand 4S stores, as well as regular positions such as vehicle freight and parts distribution, will usher in a new wave of employment prospects.
The most important thing is that the rapid growth of Zhonghua Group in recent years has impressed NADA, and last year's sales of vehicles exceeded 4 million units, ranking sixth among global car companies, and it is a well-deserved car company star.
Regardless of how Chinese cars will perform in the U.S. market in the future, at least the first wave of huge investment will be indispensable for the Chunghwa Group.
Similar to Toyota's often saying "grow with dealers", Zhonghua Group also gave preferential treatment to recruit dealers in the United States this time. As long as the sales target of 300,000 vehicles is achieved, dealers will be able to share in the huge profits and maintain the room for long-term survival.
NADA's established dealers, who first bet on Japanese sedans and then on the success of Korean cars, have a natural interest in new players. In particular, the strength of Chinese automobiles in the U.S. market far exceeds that of their Japanese and Korean counterparts who went to the United States to fight.
"We're interested in hybrid and all-electric new technologies because it's a big gap in the U.S. automotive market. If Chinese cars can establish a reputation, then we should both get very good returns in the future. ”
NADA's rotating chairman, Parker, was not polite, and he hoped that Chinese players would come up with new weapons to enter the U.S. market.
In business, investing is definitely risky. If Chinese cars can cut into the blank space in the market, they have a good chance of success in the future, and the dealers who join can also greatly reduce the risk.
"Hybrid products will be our main trump card, and your proposal will be of great benefit to our marketing strategy, and I am confident that we will be able to cooperate happily in the future." ”
Capital's sense of smell is very sensitive, and at one time it was borderless. In the face of the huge benefits that can be obtained by acting as an agent for Chinese automobiles in the future, the risks assumed now can be assessed within a certain safety range. Therefore, the American distributors were going to test the waters and were very happy to accept new players from China.
The scope of international transnational operations sometimes involves more than just business itself, and when the business in the United States is smoothly launched, there is also extremely bad news coming, which may be a blow to the Zhonghua Group.
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