Chapter 638: Fairchild Dornier Aircraft Company

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In July 2003, Alloy Co., Ltd. announced that it would acquire its partner, Maorui Company, one of the three largest garden machinery manufacturers in the United States, but because of the lack of funds in the later stage of Delong, the project is currently in a state of stagnation. ”

In addition, under the auspices of Delong, Alloy Co., Ltd. also acquired the flagship of the Soviet Pacific Fleet's 'Minsk' aircraft carrier, and invested 500 million Chinese coins to set up the first aircraft carrier-based theme park on Shatoujiao Beach in Dapeng Bay, Pengcheng. However, when Delong integrated its tourism resources to establish Delong Tourism Group, the project was separated from Alloy Shares. ”

At present, Alloy shares have a total of 8.7 billion Chinese dollars, liabilities of 3.25 billion Chinese dollars, 2003 operating income of 2.23 billion Chinese dollars, net profit of 150 million Chinese dollars. Similar to Tunhe Group, Alloy shares also have the problems of poor management, excessive extraction of Tunhe Group's profits for financial investment, and illegal guarantees, resulting in untimely equipment updates of enterprises, low efficiency, bloated personnel structure, floating people, and rampant corruption. From Delong to the present, the main business income of alloy shares has expanded to 22.15 times in 6 years, but the net profit margin has decreased from 23.18% in 1997 to 6.29% in 2003. ”

After signaling Wu Xiaojing to rest, Guo Shouyun said: "Compared with Tunhe Company, the situation of alloy shares is more complicated. There are two key issues: first, what should be the main business of alloy shares? Second, how to deal with the rest of the business?

Everyone looked at each other, but no one spoke first.

"What? I'm embarrassed to say? Since that's the case, I'll order it!" After a pause, Guo Shouyun's gaze quickly swept through the crowd, "Wu Feng, tell me about it?"

"Me?"

Wu Feng was stunned. Although he is very confident in himself, there are so many big guys here. And each one is closer to the big boss than himself. No matter how you look at it, you shouldn't speak first.

"Scared?"

Looking at Guo Shouyun's smiling expression and the scrutinizing eyes of the people around him, Wu Feng took a deep breath, calmed all the distractions in his heart, and said in a deep voice: "Of course not." ”

"Let's talk about it!"

Wu Feng nodded, "My idea is to keep the nickel alloy business, the power tool business and the garden machinery production business, and then sell the rest of the business." In addition, in the management of the enterprise to practice frugality, the elimination of redundant personnel, increase investment in research and development, optimize production equipment. Secondly, for machining enterprises, the quality of workers is also very critical, we should set up reward and punishment conditions and training system to improve the technical ability of workers!"

There is no doubt that he carried some private goods in Guo Shouyun's question. Its purpose is self-evident, it is nothing more than to perform more in front of Guo Shouyun and strive for the opportunity to become the CEO of Alloy Co., Ltd.

In this regard, Guo Shouyun didn't say much. It's normal for young people to behave like it! It was the same when he was younger. Of course, now he just has a young appearance, but on the inside he is a middle-aged person's mentality.

After waving his hand to let Wu Feng sit down, "What do you think?"

"I think the nickel alloy business, the power tool business and the garden machinery production business can remain in the alloy shares. However, the Beijing Taihe Gold Company and Jinling Machine Tool Factory should be separated from the alloy shares and operated independently, and only sold the Fairchild Dornier Aircraft Company. Chen Yu said.

"Why?" Guo Shouyun said after nodding.

"Judging from the information provided by Delong, as well as our field trips. Beijing Taihe Gold Company has assets of 179 million yuan, net assets of 93 million yuan, main business income of 42 million yuan, and net profit of about 7 million yuan. Jinling Machine Tool Factory, with two branches in Jinling and Shancheng, has total assets of 478 million Chinese dollars, net assets of 298 million Chinese dollars, main business income of 89 million Chinese dollars, and net profit of 14.7 million Chinese dollars. Its CNC lathes, CNC milling machines, and machining centers have a certain market share in the domestic market, and gear hobbing machines, gear shaping machines, and gear shaving machines are also popular in the domestic market. ”

"If you exclude the liabilities caused by Delong's illegal occupation of corporate net profits, Taihe Jinhe Jinling Machine Tool Factory is a high-quality asset with stable returns and good development prospects. In addition, Delong's additional liabilities to the two companies are about 190 million Huaxia Yuan, and we will not get much income from selling the two companies when we are burdened with huge debts. Secondly, now that Huaxia is shrinking credit and curbing economic overheating, the macro environment has caused most companies to shrink, and the scale of expansion and mergers and acquisitions has decreased by two-thirds compared with last year, and if we sell at this time, our losses will be even greater. ”

"Therefore, I think that it is not possible to sell the two companies at this time, but to choose the right professional managers and invest a certain amount of money to let them develop independently. And the shares of the trusteeship of Oriental Trust, until the repayment of its own debts, to achieve better performance, the macro environment to improve, there is a more suitable price before the sale. ”

"As for Fairchild Dornier Aircraft, I think it should be sold immediately. After a pause, "Although Fairchild Dornier is one of the world's three major regional aircraft companies, it has invested too much in the 728 aircraft project and has no choice but to sell itself to save itself." Delong Group sees the potential for the development of the domestic regional airliner market, and with the support of the Shaanxi Provincial Government, it jointly bid with Changan Aircraft Company for the Fairchild DORNIER 728 aircraft R&D department and the project. ”

However, because of the 1,500 engineers of Fairchild Dornier, there were less than 200 left at the time of sale, and the R&D strength was seriously insufficient, resulting in the delay of the construction period of the 728 project; the high investment of the Fairchild Dornier 728 project caused the price of the model to be too high, and it was not competitive with the same type of aircraft in the international market; and the 728 aircraft had fewer seats and was not suitable for the Chinese market; and the Fairchild Dornier Company did not have all the intellectual property rights of the 728 aircraft, and had to buy excess property rights from suppliers before it could be produced, resulting in too high costs, the Shaanxi Provincial Government and Chang'an Aircraft Company both withdrew and abandoned the project。 ”

Guo Shouyun is not very optimistic about the future prospects of the Huaxia Airlines market. But he understands that regional airliners are small planes with fewer than 100 seats designed specifically for short trips between cities. It is precisely because of understanding him that he has doubts about the future market of regional airliners in China, after all, he has experienced the great development of high-speed rail ten years later.

Unless you are in a hurry, few people take a plane in China, especially for short-distance transportation between eastern cities. On top of that, high-speed rail will continue to increase in speed, which will further crowd out the market that was originally an airplane. So, he didn't have much enthusiasm for Fairchild Dornier Aircraft.

“… In addition, experts estimate that if we continue with the Fairchild Dornier project, we will need to invest another $400 million in the project. It's not worth investing such a high sum of money on a project with an uncertain future. Chen Yu finally said.

"If the Fairchild Dornier project is abolished, then all the 20 million euros that DeLong invested before will be wasted. Guo Shouyun said with a smile.

"Only when a strong man breaks his wrist can he struggle to survive. Compared with the subsequent 400 million, the loss of 20 million euros is large, but it has to be chosen. And now that Delong Industrial is losing serious assets, we don't have so much money to put on this uncertain future project. Chen Yu said.

Guo Shouyun nodded, and after a moment of silence, "What about you guys, what else do you have any opinions?"

Bo Ruituo raised his hand.

"I think the nickel alloy business should be separated from Alloy shares. ”

"Tell me why?" Guo Shouyun said.

"Judging from the data, the market for nickel alloys is not large, but the income is stable, and it can be regarded as a high-quality asset. However, compared with the broad market of power tools and garden machinery industry, putting the nickel alloy with little development prospect into it will cause division within the company for a long time, which is not conducive to the long-term development of the enterprise. ”

Do not suffer from few, but suffer from unevenness. If I eat 10 yuan a day, but you eat better and better, everyone is a company, why are you better than us? This kind of mentality for a long time will definitely cause problems.

"Although the market for nickel alloys is not large, we can make copper alloys and special steels and develop horizontally. Wu Feng said.

"Business development, especially mergers and acquisitions, should be designed to promote the overall progress of the enterprise. If the alloy shares expand to the field of materials, although they will make money, they will not be of much help to the main business of alloy shares, power tools and garden machinery, and will not play the effect of mergers and acquisitions. In addition, Alloy shares are now close to $400 million in debt, and in the case of insufficient revenue capacity, unless funds are invested from outside, it is simply unable to expand. Bo Ruituo said calmly.

After contemplating for a moment, Wu Feng glanced at Guo Shouyun and did not speak again.

"Are there any other opinions?" Guo Shouyun said again.

"I agree with Mr. Bo's suggestion to separate the nickel alloy business from Alloys, but I don't see the need to operate independently. The nickel alloy business doesn't have much room to grow, and even if it operates independently, its future won't change much unless we invest in expanding our product line. In this case, we should sell it directly, and we can't waste time on an asset that cannot be appreciated. Moreover, the Eastern Bloc has just been established, and there is nothing to be wasted on it. Inputs and outputs are completely disproportionate. ”

After Zhang Lei finished speaking, after a pause, "Also, since Alloy intends to strengthen its investment in power tools and garden machinery, the acquisition of Maorui Company should be completed." With the help of the other party's technical strength and channels, strengthen the technical capabilities and international market share of alloy shares. ”

Guo Shouyun nodded, "Who still has an opinion?"

After asking again, seeing that no one had spoken.

"Based on everyone's opinion, Alloy Co., Ltd. retains the two main businesses of power tools and garden machinery manufacturing, and sells the nickel alloy business. Jinling Machine Tool Factory and Taihe Gold Company operate independently, and the equity is managed by Oriental Trust, considering that Oriental Trust has just been established and is still in the integration stage, the management of the two companies is selected by the PE department of Hanhua Capital, and is formally appointed after discussion and approval by Zhang Lei and Chen Yu. ”

“… Sold the nickel alloy business of Alloy Co., Ltd., abandoned the 728 passenger aircraft project of Fairchild Dornier Aircraft Company of Germany and minimized the loss as much as possible, completed the acquisition of Maorui Company, and injected 2 billion Huaxia Yuan into Yunfan Investment as the working capital of Alloy Co., Ltd. ”

“… Alloy shares do not need to be delisted for the time being, as for its management, let the Tang brothers be responsible!"

"Tang Wanli, Tang Wanchuan, Tang Wanping?" Chen Yu said in surprise.

"When I bought Delong, I promised the Tang Brothers that they would leave a way out. ”

In fact, if it weren't for this, Guo Shouyun, who had no interest in power tools and garden machinery manufacturing, would have let Alloy operate independently and sell it after it recovers financially.

Hearing the big boss say this, everyone didn't say anything. However, his promise made Bo Ruituo and Wu Feng, who usually had little contact with him, have a surprised look on their faces.

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