Scene after scene of farce and ugliness that defy common sense cannot hide the profound reality that the 'TOP Empire' is falling.

"Born in despair, grown in half-belief, and ended in madness",

This is a well-known quote from the investment world, and it could not be more apt to apply to TOP after its anniversary in 2002.

What Song Ruhua didn't expect was that a big pie he drew on a whim led to the collapse of the entire TOP empire.

In August 2002, when Song Ruhua and TOP were still immersed in the excitement brought by the '10th anniversary celebration', a storm called "media turmoil" within TOP quietly came.

A series of naked questioning reports, the spearhead pointed directly at the national recruitment of "5,000 software engineers" carefully designed by TOP for the "10th anniversary";

Unfortunately, an unexpected lawsuit broke out at this time.

The first is the foundation on which the TOP system depends for its survival - bank credit.

Nine years ago, the shell company's external guarantee was completely thunderous.

Song Ruhua was caught off guard by what happened 9 years ago.

The bank, for Song Ruhua, is a money bag.

In the name of 'building software parks, investment for the market', enclosing land, so that land resources can be converted into land capital, and then this land capital is re-evaluated and then taken to the bank to 'cash out', so that chickens and eggs, as long as TOP energy continues to get cheap "high-tech" land from the government, this is a perfect closed loop.

And for the bank, one is that there is a local relationship, and the other is that the value of those land is indeed there, land mortgage, which is the most popular way to borrow in the bank.

There's a real joke:

In the process of applying for a loan from the bank, a bank president asked with a smile: "It is rare to see TOP products in the market, where does the sales revenue in your statement come from?" ”

The person in charge of handling the matter said half-jokingly and half-seriously: "We have a subsidiary that specializes in smuggling!" ”

The head of the bank laughed and stopped digging into it.

Everyone tacitly accompanied Song Ruhua to play 'cash'.

Therefore, Song Ruhua never expected that the bank would stab him at a critical moment.

Even, Song Ruhua didn't know as much about that guarantee as the media at that time.

Because, when acquiring a shell company, the local government promised that the past would be resolved, and even if something happened, the local government would bear that it had nothing to do with the new company.

'Confucian businessman' Song Ruhua naively thought that the local government would come forward, just as he might not have imagined that the recruitment of 5,000 software engineers in the whole of China, with a population of 1.3 billion, would attract a three-dimensional bombardment of many televisions, newspapers, and the Internet.

As a result, both TOP and he were silent about it.

Promises, naturally, are verbal.

It is not the same thing as a written contract.

What did the predecessor promise, what does it matter to the present?

What you say before you retire must have someone willing to listen to it after you retire.

Everybody talks about the weather, but there's nothing anyone can do about it.

Since late July 2002, all the heat and irritability in the city of Jincheng seem to be converging towards the TOP, and the stock prices of the three listed companies in the TOP have fallen in response to the staggered sound of the celebration.

In the overwhelming media coverage, doubts drowned out the sound of 'praise'.

One of the most eye-catching and daring reports is called "TOP Bubble", which was jointly written by Yang Ruifa, a reporter of "21st Century Business Herald", and Mao Yining, an "economist", in August 2002.

Of course, these two people are not good people who pursue justice, and the latter even sang behind bars because of the blackmail Oak International since then.

The original intention of writing this report was also to blackmail the TOP, but I didn't expect Song Ruhua to be too iron-headed and not take them seriously at all.

The two reporters were furious and directly let the report appear in the newspaper.

The article is based on the title "The Mystery of 5000 Talents? "The software park has become a foot-washing city? "Why is the magic subsidiary no longer in the limelight? "Where are the core products of TOP? "4 paragraphs comprehensively torture the TOP.

These four questions expose the tip of the iceberg of the bubble of the TOP empire.

The first question, 5000 software engineers.

According to TOP's "plan", in the next three years, TOP will build 30 software parks across the country, with 40,000 employees and 100,000 people.

What is the size of 5,000 software engineers?

At that time, software companies with more than 1,000 employees were already large companies of considerable scale.

TOP's claim to be a 10,000-person software company is really amazing, exciting, and terrifying.

"21st Century Business Herald" cited the research results of the listed company research group of Huating National Accounting Institute and directly slapped him in the face.

The research results point out that the management of software talent has always been a difficult point for global software companies.

Generally speaking, there is an unwritten rule in the software industry, no matter how good the market prospect is and how mature the internal management is, the number of software engineers recruited by a software company in a year cannot exceed 20% of the company's original engineers.

One example is Microsoft, which has 50,000 employees worldwide, but has only hired a few thousand employees, less than 15% of its original workforce, after doing well in the past year.

Professor Yuan Meng, chief engineer of Zhongke Hongqi and known as the "father of Huaguo Linux", believes that domestic companies simply do not have the ability to manage and control 5,000 software engineers.

At present, there are only 1,640 technicians in the whole TOP group, and 5,000 software engineers are recruited at one time.

According to the simple business logic, no matter how you expand, the two key questions to face in the end are 'what can you do after expansion' and 'how to survive after expansion'?

Not to mention, from the cost side, according to the annual salary of 100,000 yuan for domestic software engineers in 2002, the annual expenditure of the TOP Group on salary alone is 500 million, and the social security and housing provident fund are about 700 million.

If you add in office equipment, travel expenses, etc., it will be an astronomical amount.

From the perspective of revenue, according to Microsoft's estimation of local enterprises in China, according to the current management status of the domestic software industry, under the premise of assuming that the sales department can achieve 100% smooth sales, a qualified domestic software engineer must complete at least 20,000 yuan of business per month for the company to maintain normal operation.

According to this indicator, if a team of 5,000 software engineers should create at least 100 million yuan of output value for the company every month, then the annual output value is 1.2 billion yuan.

In addition, coupled with the huge investment in the construction of 27 software parks across the country announced by TOP Group, industry insiders expect that TOP Software needs to complete at least 10 billion yuan of output value a year to break even.

But last year, Huaguo's annual software output value was only more than 30 billion.

In the eyes of industry insiders, this is completely inexplicable.

Of course, this is the IT people who are those in the industry who wear plaid shirts and jeans.

IT and venture capital are inherently linked, and venture capital and crazy capital are also inherently equated.

Therefore, the estimates of IT people are usually blown to the sky, but in fact they are not so much.

However, the rigid cost of salary is indeed not covered by the cash flow of TOP.

The last question, 'Where is TOP's core product?' directly left TOP speechless and unable to deal with it.

Because they can't answer either.

Could it be that TOP does not produce products, only concepts?

The rain is coming, and the banks that were previously "favored" to TOP, with this report, their confidence has also begun to waver.

After the emperor's new clothes were revealed, the banks could no longer pretend to be stupid as before.

After all, they are all engaged in the economy, and if they pretend not to see it, it will be difficult to explain it in the future.

The reporter's four questions actually don't involve the real core issues of the TOP at all.

5,000 people were recruited, and if it was not suitable, it would be laid off.

What industrial park becomes a foot-washing city and the profitability of subsidiaries are all small problems, and there is no need to be afraid of problems in development.

There are more listed companies whose main business is not prominent.

However, 27 industrial parks are overwhelmingly built across the country, and the funds required are tens of billions, how can the TOP with an annual profit of less than 100 million bear such a funding gap?

This is the core essence of the problem.

It's about a company's going concern.

The economists who couldn't continue to eat the corpse had no choice but to stand up, and it would be too anti-intellectual to talk about anything else at this time.

As a result, Song Ruhua's operation was exposed to the sun.

At the time of the construction of the industrial park, TOP began the construction of the real estate.

Song Ruhua just wanted to force the palace through this pile of unfinished buildings, and when the time came, a part of the land would be converted into residential land for sale to make a profit.

So, here's the problem.

Is TOP a software company or a real estate company?

In fact, this problem is not a problem, if Song Ruhua succeeds in the transformation, with the tone of the people's 'consequentialism of right and wrong', Song Ruhua will be praised as a legend of judging the situation.

However, this exposure point makes this problem, which is not a problem, a problem.

Where did the earth come from? Where do the loans come from? Who gave it?

The most innocent thing in this is the place, they want to sell the land and sell the real estate company directly, so why bother to go like this?

Now in this situation, for the locality, it is yellow mud falling into the crotch of the pants, and it is not but.

Blindness increased Song Ruhua's courage and prevented him from seeing danger, but his sense of smell was undoubtedly sensitive.

Just a week before that unexpected lawsuit, he said at the enlarged meeting of the board of directors of TOP Financial Group,

"Capital and product management are different, product management does something wrong is just a loss of a list, the impact on the entire TOP business is partial and limited, and once there is a problem in the capital market, it is 'a small difference, a thousand miles wrong'."

He was not wrong in predicting that TOP will grow and collapse because of capital.

Thinking of this past, Dai Lihui felt a little ironic.

When he came back to his senses, he said to Song Ruhua, "Old Song, don't continue to do it, it's very risky." ”

Just now, Song Ruhua proposed to start the troika of education, health care, and health care products to fill the big hole in the TOP at this time.

Facing Dai Lihui's admonition, Song Ruhua smiled bitterly, "Dude, can I stop?" ”

Li Zhi and others are also helpless, for them, there is only one way in front of them now, while there is still money on the books, the bank's loan has not yet reached the repayment period, and they will immediately transform and fight their way out of the encirclement.

When Dai Lihui heard this, he also shook his head and smiled bitterly, so he could only gamble his life.

There's no way, no gambling, you can only go in and eat in jail.

……

After putting down the magnifying glass in his hand and handing a letter to the 'beloved apprentice' Yang Zhiyuan, Zhiliu took off his glasses and rubbed his nose.

When people reach age, they have to serve old age.

was already highly myopia, and it began to presbyopia again, which made Zhiliu feel that the quality of life had seriously declined.

Find a dedicated secretary to help read the documents?

Zhiliu sighed in his heart, perhaps, it's time to retreat.

Yang Zhiyuan, who took the letter, glanced at the sender of the envelope, and a playful smile hung on the corner of his mouth.

Having just experienced the "catastrophic" luxury in 2002, Song Ruhua's actions for this anniversary celebration seemed much more insipid, with neither pomp nor pomp, he just wrote a "letter of thanks to all sectors of society."

Reading the ten lines at a glance, his smile slowly faded, and then a solemn look appeared on his face.

"Dear leaders and friends,

On the occasion of the 11th anniversary of the establishment of TOP Group, on behalf of all the staff of TOP Group, I would like to extend my most sincere wishes to you and your family!

……

After 11 years of development, TOP Group has developed into a private high-tech enterprise group with information technology value-added services as the core, integrating application software development, system integration, technical consulting services, IT vocational education, IT training, third-party logistics and the production of brand products such as applied electronics and precision CNC machine tools.

TOP has three listed companies, including TOP Software, Yanhuang Logistics and TOP Technology; TOP has entered the ranks of "Top 500 Enterprises in China" and "Top 100 Electronic Information Enterprises in China"; TOP was listed as the second among the top 100 software companies in China; TOP has been awarded (awarded) "Huaguo Famous Trademark", "Huaguo Logistics Experimental Base" and other awards.

……

In 2002, TOP Group achieved a total sales income of 5.5 billion yuan, profits and taxes of 600 million yuan, and total assets of more than 10 billion yuan.

The above achievements are inseparable from leaders at all levels, customers, partners and friends from all walks of life for many years of cordial care, strong support and great help to TOP, especially last year in the case of TOP encountered media turmoil, leaders at all levels and TOP friends are still firmly on the side of TOP, in a variety of ways to support and encourage TOP, so that TOP people are deeply moved.

2003 is a year for TOP Group to carry forward the past and forge ahead into the future. Since 2003, TOP Group has fully transformed into an IT value-added service provider, and expanded new businesses such as IT training services on the basis of the original business. The development goal of TOP Group is to become the first in IT value-added services in China. TOP people are striving for this grand goal.

……”

What profits and taxes are 600 million yuan, Yang Zhiyuan doesn't care at all.

As the president of Fantasy Group, he saw through the tricks in this sentence at a glance.

The total sales income of 5.5 billion yuan is 10 billion yuan after restoring the value-added tax, which means that it has lost 4 billion yuan.

Ordinary people may not be able to see it, but those who are in business and as leaders basically know what is going on.

Profits and taxes are a local statistical caliber.

Song Ruhua's letter of thanks specifically mentions 'profits and taxes', obviously trying to send a signal:

'I have three listed companies, I am glorious, and if you have the ability to bank, you will up! Now Lao Tzu is dying, if you want to transform, it's up to you to save it or not! ’

"Teacher, Song Ruhua is looking forward to the appearance of a white knight." Yang Zhiyuan flicked the letterhead, "But why did he want to transform into our field?" ”

Fantasy Group isn't just about computers.

The so-called five young marshals are separated, that is, the five subsidiaries managed by Yang Zhiyuan and other five people.

One of the subsidiaries is called 'Shenzhou Digital', which is engaged in IT value-added services and is also the largest IT value-added service provider in China.

Song Ruhua still dares to shout that TOP wants to be the first in China in this field, and take the tiger's mouth?

Yang Zhiyuan didn't think that Song Ruhua wanted to grab food on the territory of fantasy, "Could it be that he wants us to be the boss of this wrong?" ”

Otherwise, Yang Zhiyuan couldn't figure out why Song Ruhua would send this letter to Zhiliu.

Although the name is TOP software, in the IT industry, TOP is simply a real estate company, and there is no competition, and there is no intersection between the two.

Jiryu quietly pushed a folder on the table to him.

Yang Zhiyuan opened the folder and read it, and then frowned tightly.

"TOP Group's Feasibility Plan for Building 'Digital Cixi'"

"Proposal Report on the Cooperative Development of Special Computers for Tax Control in the Second Phase of Golden Tax"

"Instructions for TOP Group and Chinese Academy of Sciences to Cooperate in the Development of Linux Domestic Operating System"

Framework Agreement on Cooperation between TOP Group and Pengshan County to Develop Pengzushan Health Care Project

There is also a copy of Jincheng Haisky Overseas Chinese Health Industry Co., Ltd.'s industrial and commercial file adjustment information.

After reading it carefully, Yang Zhiyuan hissed, did not rush to say anything, but closed his eyes and thought.

Zhiliu didn't bother to wait for him to ponder.

After all, the goods in front of him have never been known for their quick wit, and when he figured it out, it was dawn.

"Song Ruhua is trying to save himself, and the biggest problem of TOP now is actually the problem of cash flow.

But he now has no credit in the capital market, and as soon as the bank loan matures, it will be withdrawn.

He couldn't afford to repay the money, and without considering foreign aid, he could only consider defaulting and forcing the bank to extend the term, delaying the release of the pressure of repaying the principal. ”

Yang Zhiyuan was puzzled, "Teacher, I guess he can't even pay interest now, right?" Will the bank agree to the rollover? ”

The current situation of TOP is to borrow money to repay interest, and now it is not allowed to borrow money, and the interest is not repaid.

Moreover, not to mention the non-compliance of the raised funds, TOP has obviously involved fraudulent loans, and the bank cannot afford to take this responsibility.

So he's now ready to build new cash flow projects to keep the blood transfusion.

He has caught up with the limelight of education industrialization, so this is a cash cow.

Peng Zushan is a tourism real estate with the concept of health care, and real estate has the play of real estate, which can bring a certain amount of cash flow.

Health care products, you look at the industrial and commercial information, he is also ready to play, and playing well is also a sufficient cash flow, don't you see that Shi Yuzhu is like this?

If the operation is good, he can not only cover the interest of hundreds of millions of yuan per year, but also find a way to activate the 27 industrial parks after rebuilding the capital credit, and at that time, there is indeed the possibility of turning over. ”

Yang Zhiyuan frowned, "Teacher, this is not enough, before the end of the year, the rigid payment funds of TOP will exceed 2 billion, and now there are more than 2 billion guarantees to be performed, and these projects will not take effect so quickly." ”

In his opinion, the more TOP struggles, the faster he dies.

(End of chapter)