Li Twist plans to go public, which is not expected by Wang Haoan, but he still has to talk to Li Twist, now that it is fully listed, it is not cost-effective, and Li Twist does not need so much money.

In fact, Li Twist has always had no money, and the reason why there are several dividends is that Li Twist has to support the distribution in order to repay Wang Haoan's loans.

Li Twist Sports' annual revenue is only more than a billion yuan, which is still with the help of Wang Haoan, almost monopolizing the domestic high-end sports goods market, and the net profit is only about 100 million.

And now that the business of sports goods stores has been launched, the net profit is actually negative, which makes Yangcheng, Beijing and other local political axes a little dissatisfied, and the tax is low.

Fortunately, the Li Twist movement is still expanding, and there are more and more people working in the company, and the social benefits are still very high.

However, due to the economic environment, the mainland cannot support the faster development of Li Xuan. Many people have broken shoes, and they choose to repair them, glue them, or find a shoe repair shop to sew a circle of threads.

As a result, the sales growth of Li Twist's sneakers is not as good as expected, and the three bags in Europe and the United States are far less good than the service in the mainland.

When Chinese people buy clothes, especially students buy clothes, parents will always buy one that is one size bigger, so that they can wear it when they grow taller. The clothes of Li Twist Sports are relatively strong, and many people will not throw them away for several years after buying them.

This is also one of the reasons why Li Twist decided to go to the North American market for development, Li Twist didn't say it, and Wang Haoan could guess it.

"Mr. Li, are you planning to let Li Twist Sports Company go public as a whole?"

"What does Mr. Wang mean by this?"

"I don't think the Li Twist movement needs so much money now, so there is no need to go public as a whole, just split the company and go public partially. ”

"I remember that Li Twist Sports has Yangcheng Company, which focuses on sportswear, Beijing Company, which focuses on sports shoes, Xiangjiang Company, which focuses on fashionable casual wear, and now there is Modu Company, which focuses on children's sports. Originally, there was also a sports technology research and development center, but now it has been sold to me. ”

"If Li Twist Sports wants to develop, it is a good choice to go public to raise funds, I can understand, but there is no need for the overall listing, right?"

"Just go public in one of the three companies in Yangcheng, Beijing or Xiangjiang. Raising a billion funds, it's not a big problem, I can help find a company to help you inquire, or you can find a suitable private placement target. ”

Of course, Wang Haoan also understands that the reason why Li Huan chose to list in Xiangjiang is not only because the mainland financial market is not as good as Xiangjiang, but also because the review of listing in the mainland is stricter, while Xiangjiang is much simpler.

In the previous life, the reason why many large companies went to the United States to go public was also because the conditions there were more lenient, which was more suitable for some companies with potential, but the current revenue and profits were not high.

This also means that many companies that are still losing money can also be listed, which is unthinkable in the mainland stock market at this time. If you don't make money, how can you share dividends with investors?

Since the return of Hong Kong, more and more mainland companies have listed in Hong Kong. At the beginning, Li Jingwei also wanted to let Jianjian Bao go to Xiangjiang to be listed, so that he could be directly rewarded with some shares as the chairman.

It's a pity that this idea failed, but fortunately, Li Jingwei is still the chairman of Jianbao and has taken another path.

Li Xuan looked at Wang Haoan with some puzzlement: "Are you saying that a branch company can raise 1 billion Hong Kong dollars if it goes public? ”

"Mr. Li, I'm afraid you have some misunderstanding about the listing. At present, the overall value of Li Twist Company has been assessed as more than 3 billion RMB, but this value is definitely low, if you don't believe it, you can contact Adi and other companies, double the price, and see if they will agree?"

"Li Twist's biggest asset is not those factories, not even brands, but stores in all cities across the country, and this sales network is the greatest value. ”

"Of course, it is precisely because of the rapid establishment of a sales network that the profit margin of Li Twist Sports has not been high, but the sales volume has taken a big step forward every year, right?"

"A branch, in your opinion, may only be worth one billion, but it is impossible to become a subsidiary and split out, issue 30% of the shares, and raise one billion. But I am sure that I will be able to raise 1 billion yuan by issuing 40 percent of the shares!"

"At that time, the market value of a subsidiary can more than triple. As the stock price grows, the market capitalization will also reach new highs. ”

"And if Li Twist Company still needs funds at that time, it can let the second subsidiary go public, and the funds raised will definitely be much higher than this time. In the same way, the third and fourth times. ”

"Of course, there is another way of operating, that is, only one subsidiary is listed, and the second time there is insufficient funds, and we issue additional shares in the name of this subsidiary to raise funds, but in this way, our control over this subsidiary will also decrease. However, it is possible to use AB shares to buy Class B shares, only the right to dividends, but no voting rights, or the voting rights are extremely low. ”

Li Xuan pondered for a while: "Mr. Wang, what should be done to split up?

"Now Li Twist Sports has become a group company, and those branches have become subsidiaries, wholly-owned subsidiaries of Li Twist Group. After such a listing, although most of the assets of Li Twist Group are not listed, the value will be greatly increased in the evaluation of banks and other institutions. ”

"We probably don't need to issue too many shares in the future, just take out bank loans. The company is thriving, and loans are much more cost-effective than IPOs. ”

Judging from the development history of those large companies, no one is willing to raise funds if they can borrow, unless the loan amount is insufficient.

Many companies may only have an asset of 100 million, but after listing, they can quickly grow to 300 million, 500 million, at that time, if the funds are insufficient, but the profitability is guaranteed, everyone will choose a mortgage instead of issuing additional shares again, because this is the best choice to ensure the interests of shareholders.

Li Twist Company has a lot of debts, but in fact, the debt ratio is not high. But it is not easy to borrow a few hundred million yuan, and banks will be more cautious.

Li Twist made the final decision: "Mr. Wang, your company has a lot of professionals in this area, can you lend me two, or recommend me two that can help the company split and go public?"

"I think you're right, the company's overall listing is not cost-effective, and splitting out the subsidiary to go public is in the best interest of the company and can also meet the company's capital needs. ”

"It's good that I'm coming to you, if you decide for yourself, I'm afraid the company will suffer. ”