Chapter 634: Delong's Six Causes of Disaster

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The meeting, which was held specifically to settle Delong's financial assets and debts, lasted about an hour and a half before it ended.

"Mr. Guo, I heard that the people who participated in today's on-site meeting are all financial customers who owe more than 1 million?" asked Secretary Chen, who invited Guo Shouyun to his office after the meeting.

There are more than 1,000 customer institutions in Delong Wealth Management, and hundreds of thousands of investors are large and small, and they are distributed all over the country. There's no way, and it's not appropriate to summon everyone to the Demon Capital!"

Secretary Chen nodded and continued: "What are you going to do with the rest of the small customers?

"Of course! As long as it is Delong, no, it should be said that it is a customer of the Eastern Bloc now, we will all treat them equally!"

"It's good to treat everyone equally! Only by treating everyone equally can Delong's influence be minimized!"

Secretary Chen nodded in agreement.

"We at GCA are a responsible enterprise, and compensating customers for their losses is not only our corporate responsibility, but also our social responsibility!"

Looking at the appreciation on the faces of Secretary Chen and Mayor Han, the purpose of Guo Shouyun's words was achieved. can leave a good impression in the eyes of the future boss, and it will be beneficial to his Guo family's development in Huaxia!

"Mr. Guo, when we had a meeting before, I was pressed for time, and I didn't have time to ask. Now that everyone is sitting down and there is plenty of time, can Mr. Guo talk about the treatment of Delong Industrial assets?" asked Mayor Han.

Secretary Chen's eyes also looked over. Delong Group is a big taxpayer in the magic capital, and as the direct leaders of the magic capital, they hope more than anyone else that Delong can continue to exist in the magic capital.

"What to do with Delong's industrial assets is something that we have been thinking about lately. Guo Shouyun organized the language and said, "If you want to solve the problem, you must first find the root of the problem." According to our analysis, Delong, a giant enterprise with assets of 120 billion yuan and 300,000 workers, has come to an end. There are six main reasons.... ”

"Mr. Guo, please wait a minute!" Mayor Han temporarily interrupted him, and took out a small notebook and a black hero pen from his pocket. Both the small notebook and the edge of the pen have faded, and it has obviously been used and flipped through for a long time.

"The Delong incident is the largest enterprise collapse incident in China's economic development to the present, and it is a typical case of China's reform and opening up in the past 20 years.

Seeing his serious expression, Guo Shouyun nodded secretly in his heart. To be able to become one of the seven giants of China in the future, not to mention anything else, this serious attitude and foresight in the work alone is very worthy of recognition.

"Mayor Han's words reminded me that Delong's matter should indeed be seriously summed up and lessons learned!"

Secretary Chen also brought a notebook and a pen from the drawer of his desk.

Seeing them like this, Guo Shouyun was also a little serious. However, Delong's failure is due to the problems he has been discussing with Zhang Lei, Chen Yu, Bo Ruituo and Stephen Bryan these days.

"The reason for Delong's failure, number one, is 'expansion too fast'. There is a saying in Huaxia called 'eating in the bowl and looking at the pot'. Since 2000, Delong has acquired hundreds of domestic and foreign companies, resulting in a tight cash flow and hematopoietic function. In order to solve the problem of insufficient funds, financing rather than corporate management ability has become the only indicator of Delong's evaluation of rewards and punishments, which has led to internal mismanagement and irregularities in financial business. In addition, due to the occupation of the funds of the production enterprises in the self-help of financial institutions, coupled with the impact of media speculation and the tightening of the bank, the debt crisis of Delong's related financial institutions occurred, which then spread to Delong's industrial assets, and finally caused the collapse of the current Delong Group. ”

"The second, 'not resisting too many temptations.'" After China's reform and opening up, the large market of more than one billion people has made every industry full of opportunities. And in the vast majority of cases, it does not need a good level of enterprise management and product quality to be able to win the market. Under such temptation, Delong was greedy for more and faster, and blindly expanded, so that he lost his judgment of the macro environment. ”

"The third is 'strategic idealization'. The strategic development plan of an enterprise is a long-term strategy that is clear and can be recognized by all business owners after countless discussions and summaries, and all decisions of the enterprise, including mergers and acquisitions, should be formulated around the corporate strategy. However, Delong's development lacks strategic planning, and all mergers and acquisitions are decided by Tang Wanxin based on his own subjective thoughts. This is most clearly reflected in the development process of alloy shares. ”

“… The predecessor of the alloy shares is Shen ~ Yang Alloy Company, is one of the largest nickel alloy production enterprises in China, in 1990 after the shareholding system reform in the Shenzhen Stock Exchange, the company's assets of 130 million Chinese dollars, annual turnover of 40 million Chinese dollars. The main products are nickel alloy materials, electric vacuum alloy materials, spark plug electrode alloy materials, nickel-copper alloy materials, with an annual output of about 1,000 tons, and it is a regular material enterprise. ”

“… If such a company is acquired, the most appropriate development strategy should be to invest money to improve the company's aging equipment and outdated technology to increase the company's net profit. Then think about expansion. Expansion is divided into horizontal and longitudinal. Horizontal expansion is to use the technology and strength accumulated by Shen~Yang Alloy in the material industry to develop into the field of high-value alloy materials such as copper alloy and special steel, and become a world-class material company such as SGL and DSM through technology accumulation. Vertical expansion can purchase upstream nickel ore to save material costs, and acquire downstream production enterprises, such as heat treatment industrial products, or automation devices, etc., to open up the entire nickel alloy industry chain and increase enterprise turnover and net profit. ”

“… However, after Delong Group acquired Shen ~ Yang Alloy, it did not choose horizontally or vertically, but established Beijing Titanium Alloy Dynamic Film Complete Equipment Company to develop space shuttle projects. Judging from the market at that time, the space shuttle was catching up with the development period of the Chinese theme park, which was a money-making project, and it did make a lot of money for Shen~Yang Alloy Company. But it has no connection with the main business of Shen ~ Yang Alloy before. ”

“… Subsequently, Delong valued the power tool market, and continuously invested heavily in the acquisition of Modu Xingtehao, Su ~ Zhou Taihu Power Tools Company, Modu Meihao, Su ~ Zhou Black Cat Group, Shaanxi Xingbao Electromechanical Company, becoming the largest mechanical and electrical products production and export enterprises in China, and through the cooperation with the three major garden machinery manufacturers in the United States, Mao Rui Company, to open up the international market. … It should be said that Delong's integration of Huaxia's electromechanical industry can be regarded as a success. But it has nothing to do with the other two major businesses of Shen ~ Yang Alloy, space shuttle and nickel alloy, and the three parties cannot form a joint force. ”

“… Next, Delong's expansion of Shen ~ Yang alloy appeared more casual. Invested 60 million yuan to establish a cooperative enterprise with Shancheng Machine Tool Factory, acquired Jinling Second Machine Tool Factory, and entered the machine tool industry. Acquired the German company 'Fairchild Dornier', the world's three largest regional airliner manufacturers, and entered the aircraft manufacturing industry. Acquired the flagship of the Soviet ~ United Pacific Fleet 'Minsk aircraft carrier' and entered the tourism industry!"

“… This pile acquisition not only has nothing to do with the alloy material industry at the beginning of Shen ~ Yang Alloy, but they also have almost nothing to do with each other. As the saying goes: a single filament does not form a thread, and a single tree cannot make a forest. These mergers and acquisitions of Shen ~ Yang Alloy are full of the subjective will of managers and do not form a joint force, and the result is that the sales revenue of Shen ~ Yang Alloy increased from 370 million in 98 to 1.13 billion in 03, but the net profit did not increase but decreased, from 110 million in 98 to less than 70 million Chinese dollars in 03. The return on total assets also slipped from 13.7% in '98 to less than 4% in '03. ”

“… In addition to Shen ~ Yang alloy, Delong's Xiyu Tunhe and Hunan fire cabinets are all like this, in comparison, Tianshan shares are better, and the main business is cement and building materials. But the entire Delong Group has been edifice about to fall!"

Speaking of this, Guo Shouyun paused and took a breath.

"The fourth reason for Delong's failure is that he did not grasp the rhythm of investment. DeLong has not done enough in terms of long-, medium- and short-term investment portfolios and the pace of investment. The proportion of long-term investment is too large, ignoring the return cycle of industrial investment, affecting the liquidity of funds, and more only seeing attractive investment opportunities and industrial integration opportunities, but ignoring the potential risks brought by the company's rapid growth. ”

"The fifth reason for Delong's failure is a mistake in macro judgment. Since the establishment of Delong, the development has been very fast, very smooth, the government, banks and other aspects are also very supportive, especially the bank to give a credit line is also very large, this Delong has an illusion, that is, as long as there is a good industry, good projects, they will not lack funds. But I didn't expect that the contraction of credit would have such a huge impact on the whole society, and directly caused the rupture of Delong's capital chain. ”

"The sixth reason for Delong's failure, the use of poison to resolve poison. In the financial industry, using the way of sitting in the bank to speculate and pull up the stock price of the company, although it can make money, it is also easy to make money, which will make the enterprise ignore the operation of the industry and focus more attention on the stock market, which is easier to make money. But the stock market, which has lost the support of industry, is destined to be just a castle in the air. When there is a crisis, it will be revealed. ”

“… In 01, the debt crisis of Xin~Xinjiang Hops Company broke out, which caused a run on Jinxin Trust, the flagship enterprise of Delong Financial Assets, which was responsible for providing guarantees, and generated a deficit of nearly 4 billion Chinese dollars. In order to make up for this hole and save the chain of funds that DeLong will break. The cash flow of Delong's industrial companies alone is obviously not enough, and it takes too long. In contrast, the financial market with fast money has become Delong's only choice. ”