"Someone suggested to me that you hope your subsidiaries can be listed on the market. What do you think about this? I see that you have made no move on this. Looking at other countries, they all wish for their companies to be listed as soon as possible." The old man asked.
Hearing the old man's words, Zhao Yi cursed in his heart. When the stock market was first established, there were people who wanted to list his company. Zhao Yi didn't care what their purpose was and just fought back.
It seemed that these people hadn't given up yet and actually came over to persuade the old man to test Zhao Yi's thoughts. Maybe the experience of being criticized last time was still fresh in his mind and they didn't dare to come over and talk to Zhao Yi about it in person.
However, they planned to avoid the situation they were criticized for last time. The scale of his first-level companies is too large. If they are listed as a whole, the current domestic stock market funds will simply not be able to handle them.
So this time they hope that the subsidiaries of Zhao Yi's first-tier companies will be listed. Although some subsidiaries are also very large in scale, such as the LCD panel subsidiary of Polaris Company, their size cannot be taken on by the domestic stock market.
However, there are also many subsidiaries that are not large in scale. There are many such subsidiaries under Shangtong Trading Company. These subsidiaries are mainly established to focus on the production of certain commodities to meet the needs of retail channels under Shangtong Trading Company. .
The most typical example is the lighter manufacturing enterprise. This kind of single small commodity manufacturing enterprise supplies most of the market across the country and even the world, but its scale and industrial profits are much lower.
Even such an inconspicuous enterprise was originally established to solve the problem of product diversity, but if you look carefully, its scale is not small.
This year is not over yet, but according to last year's data, the lighter company under Shangtong Trading Company produced 5 billion lighters a year.
It covers frosted plastic lighters, electronic plastic lighters, metal lighters, traditional kerosene lighters, windproof lighters and other models. There are high-end brands and low-end products.
Even if calculated based on the average ex-factory price of 0.1 yuan per piece, the annual operating income is 500 million yuan, and this business is growing very fast. According to this year's situation analysis, it is basically not a big deal to exceed 8 billion pieces for the whole year. suspense.
Although this operating income is very inconspicuous in the total income of first-level companies, when it comes to the outside world, it is really impossible to ignore them. There are thousands of such enterprises under the Shangtong Trading Company.
Moreover, if this kind of small commodity enterprise once occupies the entire market, then this market will basically be firmly occupied, because their own profits are relatively low, and other enterprises will not gain much benefit from participating.
The most important thing is that the parent companies of these companies are very powerful. They not only control almost all sales channels in China, but also have broad sales channels abroad, which can ensure that their products can be sold.
And in this process, you can save a lot of channel maintenance costs, so that the price is the same as others, but the profit obtained is higher.
So don't underestimate this kind of small business. Because the business is very stable, the demand market basically only increases but does not decrease. There will be no serious contraction of these businesses due to unexpected factors, because these products are daily necessities.
In addition, the price-to-earnings ratio of the domestic stock market itself is very high. It feels that it has been separated from the value of the company itself and has the attributes of a casino. Therefore, based on at least a price-to-earnings ratio of 10 times, the market value of this company is also 5 billion yuan.
Although this was nothing in the previous life, in this era, when the people have just had enough food and clothing, the stock market has just been established, and the financial foundation is not yet solid, it is already very huge.
In fact, these are nothing. If you really need financing, there is nothing wrong with going public. But the problem is that Zhao Yi's companies are not short of money at all, and there is no need to go public for financing.
Take this lighter manufacturer as an example. What is the purpose of going public? Is it just to reflect the true value of your company? At least Zhao Yi felt that this was not necessary.
After listing, not only will it not bring much benefit to it, but it will also cause a lot of troubles. The supervision of listed companies and the establishment of related systems will require a lot of costs for the company, which is simply not worth the gain.
Moreover, Zhao Yi believes that whether in the past life or now, if listing is divorced from corporate financing needs, then listing will only be used as the subject of capital gambling and will not be of any benefit to the country and society.
"The purpose of listing a company is to raise funds. If there is no such purpose, I think there is no legitimate reason to go public. Although I support the creation of a domestic stock market, after all, it is conducive to the allocation of capital.
However, if it is separated from this attribute and simply becomes a capital game, unable to improve the survival and operation of industrial enterprises, then the role of the stock market will be greatly reduced.
Of course, it does not rule out the need to rely on the stock market to build the company's reputation. After all, a high market value is a very good advertisement and can win the favor of more partners.
At the same time, listing also plays a role in standardizing corporate operations and financial management, which can put originally chaotic companies on the right track and help them operate more healthily.
But none of my companies need these listing requirements. In this case, what is the purpose of listing? Is it just to share profits with financial institutions that are not engaged in production and jointly cut off the leeks of retail investors
If this is the case, the purpose of those who want to list my company is not simple, and after the listing, it becomes a pure capital game, and very short-sighted business decisions will be made for the sake of higher market value.
So don’t take the initiative to persuade my companies to go public in the future, because these companies have advanced management systems and healthy financial conditions, so there is no need to go public. " Zhao Yi said.
The initial purpose of the establishment of the domestic stock market was to meet the needs of state-owned enterprise reform and to finance state-owned enterprises in operating difficulties, rather than to list healthy operating companies.
But it is probably that the wealth performance of the stock market has made some people a little jealous. Those companies that are not well-run have very eye-catching stock price performance after listing. So, don't companies that are well-run perform better
As long as it is listed, there will definitely be securities firms to underwrite it. In this process, it is the time to enjoy the feast of wealth. This is why his companies are always remembered by others.
Although he persuaded the old man to come and talk to him about this matter this time, now that he has explained the matter, they should understand what he meant. In addition, the old man did not persuade him, so there is a high probability that these people will not fight again in the future. It was his idea.
As for using other methods to force his company to go public, it is even more impossible. This kind of unscrupulous method is acceptable for small businesses, but it is basically impossible to deal with him.
When the old man heard what Zhao Yi said, he nodded and stopped continuing the topic. Moreover, what he said was reasonable. If the service industry cannot meet the needs of the industry, there is really no need to go public.
As for the interest entanglements that exist inside, the old man is also well aware that managing a country and managing an enterprise are actually the same. The main purpose is to distribute interests, so he is not very disgusted with the interest entanglements inside.
As long as it is carried out in accordance with legal rules, there will be no problem. No matter whether it is a person, an enterprise or a group, there will be more or less interests in doing things. No one will do things without interests.
As Zhao Yi said, funds from the stock market are an important financing channel. If this channel is occupied by companies that are not short of money, then companies that are short of money will not be able to obtain enough funds to develop and expand the company.
Moreover, the companies under Zhao Yi are basically relatively mature companies, and their listed market values are very large. To be honest, the investment value is not very large. If it can increase several times, the bubble will be very obvious.
Only companies that are in the growth stage can obtain large amounts of funds after listing to expand business operations and strengthen investment in research and development, so that the company can develop better and faster, the investment value will be greater, and investing users will be able to obtain greater returns.
As for the companies he owns that are not yet fully mature, he is not willing to go public. Essentially, it is because he is not short of money at all. With his own strength, he can make the company grow and develop, so why bother to go public and cause trouble.
As for giving away profits, Zhao Yi does not want to give profits to stock market investors, because those people are only a small group of people, and they are basically institutional investors. It is very rare for ordinary retail investors to get returns.
More importantly, his companies are basically sole proprietorships, not common joint-stock companies. If they want to be listed, they will need to undergo relevant restructuring, which is also a troublesome thing for him.
The reason why he registered as a sole proprietorship in the first place was that he had the confidence to develop these enterprises without worrying about bankruptcy and other problems affecting him.
Because in the final analysis, a sole proprietorship is no different from a self-employed person. The only difference is the size. This means that if there is a business risk, there is unlimited liability.
In fact, ordinary people are not 100% sure about business operations. Business risks may come from any place they can't think of. In order to reduce the impact on themselves, companies usually register as joint-stock limited companies.
In this way, if the company has problems in the future, encounters huge risks, and generates huge debts, it can be solved within the company without involving the operators themselves.
But correspondingly, this kind of enterprise also has many restrictions. First, the tax rate is generally high. This does not only refer to corporate taxes, but also the high personal income tax that needs to be paid on dividends, resulting in overall high tax rates.
Second, the financial capital flow is more troublesome, because he has long known that he will be involved in many companies. If the financial aspect is more troublesome, then it is not cost-effective to use Company A's money to other companies, whether in terms of tax costs or procedures.
The third is to deceive others. Although it seems to be deceiving others, it seems that with the cooperation of government departments, it is relatively successful. At least there is no incident that is too personal against him.
If it is a joint-stock company, then if you want to invest in establishing a new company, the most cost-effective way is to open a subsidiary. In this case, you do not need to pay personal income tax.
But in this case, the size of a company will be too large, and it will be difficult not to attract the attention of others. Just like the current Shangtong Trading Company, the size is already very large.
If all his industries were mostly grouped into one head office, the size would be extremely terrifying, and it would be impossible to hide it. As long as you check the shareholding relationship between these companies, it will be clear at a glance.
Of course, no one has made many speculations or questions about companies as big as Shangtong Trading Company, mainly because the financial status of these companies does not need to be disclosed at all.
It is actually very difficult for outsiders to figure out the asset status of Shangtong Trading Company. Unless a specialized company does this, even then, it may not be possible to figure it out.
If you are in a country where survey companies are very developed, it is not impossible to really do this, but in China, there are not many such companies at present.
If there really is such a company, then his accounting firm is more suitable. Other companies do not yet have this strength, and powerful state-owned enterprises will not do such things.
As for why the country allows such a large enterprise to exist, it is mainly because after these years of development, the country has also understood the benefits of large enterprises.
Although in terms of employment, large companies may not be able to provide more jobs than small companies of the same size, because these small companies have many overlapping professional positions.
However, large enterprises also have advantages. First of all, they are more resistant to risks. This is very important. They will not go bankrupt whenever they encounter difficulties, which plays an important role in stabilizing the economy and employment.
The second is that large enterprises are more willing to invest in research and development. The improvement of the country's technological strength in recent years has far exceeded the technological improvement of the past few decades, and these changes are all brought about by his companies.
This comprehensive improvement of technology will also play a very important role in other related industries in the country. The most typical example is the reform of state-owned enterprises. Technical issues are not the main issue, but funding and management issues are more prominent.
Thirdly, large enterprises are very strong in participating in international competition, especially in other people's traditional fields. This problem can be seen from the international trade volume in recent years.
If small businesses want to participate in international competition or international trade, the main way is to settle for being at the lower end of the industrial chain. It is extremely difficult to climb up, and the corresponding solution is to do hard work.
In previous lives, why did domestic workers work harder than workers in other countries and work longer overtime hours, but their income could not be significantly improved? It was because these workers were at the low end of the industrial chain and were the weakest link in profit. .
Later, it was not that no companies wanted to turn around and develop from OEM to own independent brands, but even so, the quality of independent brands was still very low. The most typical example is the clothing industry, which are all mid-to-low-end brands, and there are basically no high-end brands. .
But in sharp contrast to this situation, Hualong Clothing Company not only has advanced production lines, which greatly improves processing efficiency, but also has many of its own clothing brands, ranging from low-end to luxury brands.
It is because the resources possessed by large enterprises are not comparable to those of small enterprises, whether in terms of production, operation and management, or sales channels.
More importantly, in the competition between large enterprises and top foreign enterprises, the two are equally matched or even stronger than each other, so there is a high probability that they can defeat their competitors.
Hualong Clothing Company has killed many competitors over the years. It is not particularly obvious in the field of luxury brands, but in the field of fast-moving consumer clothing brands, it has basically wiped out its competitors.
Not to mention others, in the previous life, Uniqlo, ZARA, H&M, etc. were all killed by Hualong Clothing Company, and the brands were also acquired by Hualong Clothing Company.
Otherwise, why would Hualong Apparel Company's global share account for more than 65%? There are corpses of competitors inside, witnessing the new king's ascension to the throne.
If we only carry out OEM processing, even if Hualong Apparel manufactures OEM products all over the world, it will not be able to develop into what it is today. The overall net profit margin will remain above 40%, making it the first international apparel giant to be worthy of its name.
This kind of situation only happens to large enterprises. Although Hualong Clothing Company was still an unknown newcomer when it was first established, in terms of capital and technology, it has become a world giant and has the strength to compete with competitors around the world.
This situation is common among Zhao Yi's companies. In the fields of chemistry, electronics, software, semiconductors, etc., our ability to catch up is all due to the fact that large companies take the lead in the competition.
In the future, his companies will also compete with competitors from all over the world in the fields of food, grain, shipbuilding, military industry, etc. Only large companies can sit on the table and gamble, and small companies have no chance of taking the table. .
If there were no companies under Zhao Yi, domestic companies would still be as before, slowly climbing up from the lower end of the industrial chain. This process takes decades, and only the operators themselves know how much hardship it involves.
Government departments have long been aware of the important role of large enterprises in the national economy. Not only will they not stop Zhao Yi's behavior, they even hope that he can create more such large enterprises.
Of course, if you want to obtain unconditional support from the government, in addition to having strength, you also need to be consistent with the government in terms of thoughts and actions. Fortunately, Zhao Yi has done well over the years.
The most typical example is that he resolutely contracted the domestic national welfare. Although the government finance accounted for a large portion, according to calculations at the time, the scale of funds he needed to subsidize was also not small.
Not to mention the capital investment for subsequent operations, hundreds of billions of yuan were spent on early-stage fixed asset investment. These are all wasted money. If they were not sincere, no one would spend so much money.
Because in this matter, the foreseeable benefits obtained are far less than the investment, but he just did it, and he is still doing his best, and the results are quite satisfactory.
You must know that Zhao Yi did not put forward any excessive conditions in this matter. Even the tax holiday for Chinese pharmaceutical companies was proposed by the government itself, because they were really afraid that this bottomless pit would bring down his industry.
From this incident, the top government officials knew what kind of character Zhao Yi was and how much he felt about the mission he was willing to undertake for this country and nation.
Finally, it comes to the issue of risk. Although he seems to be very powerful, the government is not overly worried because he is just one person.
And Zhao Yi also understands his own situation, and he doesn't form many cliques. As long as his interests are not involved, he basically turns a deaf ear to what's going on outside the window and is very self-conscious.
Originally, Zhao Yi wanted to talk about stock market-related topics, such as how to establish a more complete stock market-related system and how to establish a registration system instead of the current audit-based listing rules.
But after thinking about it, he gave up, because if the registration system is really adopted, the companies on the stock market will really be wiped out. Although this is also beneficial to the financing of companies that are really doing business, most of them are just speculators.
If it is really liberalized, it is very likely that it will be easier for scammer companies to go public, while it will be more difficult for real companies to go public, and many indescribable things will even happen in the process.
It's better to take your time, especially in the financial field. If you take big steps, it won't just involve the egg, it may even crack the whole car. (End of chapter)