On the way back to China, Li Mu felt more and more that going public in the United States was becoming less and less interesting.
The reason why technological innovation companies go public in the United States is because of the relatively advanced technological innovation environment and recognition of technological innovation companies in the United States.
Precisely because of the presence of Silicon Valley, American capital and investors have ranked first in the world in their recognition of technological innovation companies.
If you want to give a specific example, take Baidu, which is about to go public in the United States.
If Baidu is planning to list on mainland A-shares, first of all, it will not meet the requirement of making profits for three consecutive years. Secondly, its recognition in the domestic market will definitely be much lower than that of Nasdaq.
In other words, if Baidu is going to put 10% of its shares into circulation and go public, the mainland A-share market is relatively conservative and can give it a price-earnings ratio of 20 times, and it can get a valuation of 5 billion yuan. In this case, it can get a valuation of 5 billion yuan. If 10% of the shares are circulated, 500 million yuan of funds can be raised.
However, because Nasdaq, as the GEM in the United States, is very friendly to scientific and technological enterprises, they can give Baidu a price-to-earnings ratio of 40 times. In other words, if Baidu goes to Nasdaq, it may get Equivalent to a valuation of 10 billion yuan.
In this way, the same amount of capital raised by taking out 10% of the shares was twice as much.
This is why most Internet companies are flocking to Nasdaq to list.
However, the Internet industry suffered a bubble burst in 2000, so at this stage, the U.S. market's trust in the Internet is not as high as before.
Against this background, if Li Mu really wanted to list in Hong Kong, the valuation he would get would not be much lower than in the United States.
The key is to stay away from these profit-seeking Wall Street capitalists and these wealthy American bosses.
Although many of the older generation of Hong Kong capitalists are fundamentally no different from American Wall Street capitalists, at the very least, after the return of Hong Kong, the development of state-owned banks in Hong Kong has been very rapid. The biggest difference between state-owned banks and those capitalists is that state-owned banks They not only pursue profits, but also pursue social and economic development. Capitalists only pursue profits, and they do not care whether society and the economy are developing or regressing.
If society regresses further and capitalists get richer, then they don't mind if society regresses back to the Stone Age.
Therefore, Li Mu felt that if he could find a securities firm with a state-owned background in Hong Kong to act as an underwriter, and the market value given was not much less than that in the United States when converted into U.S. dollars, then he could simply list it in Hong Kong, which would be considered a lucrative business. The exodus has contributed to the economy of the Hong Kong Special Administrative Region.
Therefore, the more he thought about it, the more Li Mu felt it was worth a try.
I should find an opportunity to go to Hong Kong and talk to the state-owned securities companies in Hong Kong, and also talk to the person in charge of the Hong Kong stock market.
Hong Kong is a financial powerhouse, but it almost completely missed the dividends of the Internet market in its previous life and only captured Tencent. This is partly because Nasdaq is indeed more professional, and partly because many of the rules of the Hong Kong stock market are not flexible enough.
If Hong Kong stocks had agreed to Boss Ma's partnership system, then Ali would have definitely been listed in Hong Kong.
Ahli is not only a giant Internet company with trillions of Hong Kong dollars, but also the engine of an e-commerce giant worth tens of trillions of Hong Kong dollars. If Ahli is listed in Hong Kong, the companies that Ahli later invested in will go out independently. Those subsidiaries may also enter Hong Kong one after another.
Coupled with Tencent's ecosystem, Hong Kong can easily build an Internet financial ecosystem, which will naturally make this benefit snowball.
Now, Li Mu not only has the global ecosystem of Makino Technology, but also Taobao, Alipay, and a lot of companies and industries outside. It will not be difficult to get them all to Hong Kong and queue up for listing in the long run. , can definitely add more than 10 trillion market value to the Hong Kong stock market.
…
Back in Yanjing, Li Mu was preparing to set a time to go to Hong Kong. The superior leaders of the automobile industry made an appointment with Li Mu to confirm with him the acquisition of Jaguar Land Rover and Volvo, three brands owned by Ford.
Li Mu suddenly went to the United States and won three car brands. The domestic industrial sector was very excited because this was an unprecedented attempt in the domestic automobile industry and there was too much room for imagination behind it.
As a result, the competent authorities identified several issues with Li Mu.
First, when the acquisition will be completed;
Second, when to move to China;
Third, where to choose the location to move to China;
Regarding the first question, Li Mu also communicated with Elon Musk. Now that the acquisition intention has been reached, after Makino Technology paid a deposit of US$200 million, it immediately began entrusting an internationally renowned financial company to conduct asset audits and due diligence.
After the audit and due diligence are completed and it is confirmed that there are no objections, the remaining amount can be paid and the acquisition can be completed.
Regarding the second question, Li Mu wants to start moving the overseas production lines of the three brands to China one after another after completing the acquisition. If the American union is easy to solve, they will all be moved here. If the American union is not easy to solve, they will be retained temporarily. The Land Rover production line in the United States.
Regarding the third question, Li Mu’s idea is to locate the site in his hometown of Nansu Province.
The specific idea is to establish an automobile industry center in Haizhou.
Haizhou's economy has never been very developed. As an entrepreneur from Haizhou, he hopes to make some contributions to his hometown.
However, the leaders of the competent departments analyzed for him in great detail the immaturity of choosing a location in Haizhou.
Haizhou is too small, has a small population, and has no industrial base. Its only advantage is that it is not far from the sea and has a port and railway. Other than that, its foundation is very poor.
Among the domestic automobile companies, FAW is the eldest son of the Republic of China's industry. It has flourished with the strong support of the country since the founding of the People's Republic of China. With decades of foundation laid there, it can be said to be the first in the country in all aspects;
Shanghai Automobile Group was established very early, and it is located in Shanghai. It needs talents, economy, and transportation. In addition, it has been establishing joint ventures with foreign-funded enterprises for a long time, and has strong experience and foundation. ;
Although Yanjing Automobile Group was established slightly later than the Shanghai Stock Exchange, it has the same talent, economy, transportation, and policies as the Shanghai Stock Exchange. It also accumulates experience and technology through cooperation with overseas companies, so it is developing well.
In addition, the growth of several private enterprises is relatively difficult. Brands such as Geely and Qirui have been developed bit by bit after many years of hard work. In the early stages of establishment, even recruiting workers was difficult, and the core team It's even more troublesome.
Only then did Li Mu realize the various constraints of the real economy, especially the industry.
The leaders are experienced and know much more about the domestic situation and the industry than Li Mu. Their experience is worth learning from Li Mu.
Li Mu thought about it carefully. If he wanted to bring all three brands into the country, then in theory, the closer the three brands are, the better, because in the future, the technology will be common and the spare parts will even be different to a certain extent. On the other hand, the closer everyone is to each other, the lower the cost and the higher the efficiency.
If you want to build three car brands, plus your own brand, then the area will be very large. It is no exaggeration to say that the area of a medium-sized economic development zone may not even be enough.
This requires strong support from local governments.
The leaders hope that Li Mu will consider Yanjing because Yanjing has strong university resources and strong industrial foundation.
However, Li Mu is really worried about whether Yanjing, which is developing rapidly, can prepare a large enough land for its four car brands.
BAIC alone is already struggling, and it is also working on a film and television city project. The area of that project is really no smaller than that of the automobile project.
Therefore, Li Mu decided to set up the head office in Yanjing first, and then communicate with the professional team on how to plan the production lines of several brands.
There are many processes involved in automobile production, most of which are disassembled. Li Mu thinks that if it doesn't work, the head office and assembly line can be placed in Yanjing, and the others can be placed around Yanjing. Finally, the car will be shipped from Yanjing. It is offline in Beijing and sold all over the country and even the world.
Another very important issue is funding.
Acquiring these three brands is only the first step. The second step will require spending tens of billions of RMB to transfer all the production lines, talents, and technologies of these brands to China step by step. This requires buying land, building factories, and transporting them. With the arrival of a large amount of equipment, large-scale industrial upgrades will need to be carried out. The total amount of funds required will not be less than 10 billion US dollars.
Fortunately, this money does not have to be taken out all at once. You can first take out a sum of money, then borrow a sum of money from the bank, and then apply for some local subsidy policies, especially for land acquisition.
For such a large industry, simply buying land would probably cost an astronomical amount of money.
Fortunately, the state has always had supportive policies for private enterprises. The larger the enterprise, the stronger it drives employment and the economy, the more policy support the government will provide.
At that time, we will have to rely more on local government for help when it comes to land issues.
The leaders also gave a very positive statement. Li Mu bought three internationally renowned automobile brands in one go and turned them into 100% Chinese automobile companies. Once moved to the country, it will definitely bring a huge improvement to the domestic automobile industry. Therefore, no matter where he chooses to locate, superiors and local governments will definitely give him the greatest support, and even state-owned banks will provide huge loans with favorable conditions.
This makes Li Mu feel more at ease. With the support of the state, he has stronger confidence in the next integration and rebirth of these three car brands.
During the meeting, the leader also gave him a small suggestion, saying that he hoped he could strengthen cooperation with Shougang to see if he could help Shougang make a breakthrough in the field of automotive steel.
Li Mu agreed without hesitation and promised that once he integrated the resources of these three brands and successfully moved them into the country, he would immediately invest in an automotive steel research laboratory with Shougang.
Automobile steel has always been an important part of the steel market. However, due to the unsatisfactory development of the domestic independent automobile industry, domestic steel plants have not made enough breakthroughs in the field of automobile steel.
Although automobile steel is developed and produced by steel plants, it is difficult for steel plants to achieve major breakthroughs by themselves without the full assistance of an automobile manufacturing company.
However, if Li Muzhen integrates these three brands into the country and cooperates with Shougang in the research and development and testing of automotive steel, it will provide a huge boost to Shougang's business in this area!
(End of chapter)