Chapter 5 Chapter Three Rapid Development

Make it clear, go far "You should leave Jianlibao." Liu Jipeng said to Li Ning. At the beginning of 1994, Li Ning encountered the most important event since the establishment of the company.The incident started with Liu Jipeng, a professor at Capital University of Economics and Business.Introduced by a reporter from a securities newspaper, Li Ning got to know this famous expert in shareholding reform at that time.After diagnosing Li Ning Company, Liu Jipeng gave his own suggestions. Liu Jipeng is a straightforward person, and his conclusion surprised Li Ning. Liu Jipeng believes that Li Ning Company has shares in Jianlibao Group, which is a "red hat" enterprise held by the Sanshui Municipal Government. "Li Ning" is facing the dilemma of unclear property rights. This phenomenon that Liu Jipeng has been familiar with in the past few years has convinced him that it will bring fatal negative effects to the future development of the enterprise.

Therefore, the 38-year-old Liu Jipeng tried his best to encourage Li Ning to leave Jianlibao. "Li Ning: From 106 Gold Medals to 1.6 Billion Worth" records Li Ning's own contradictions at that time: In Li Ning's heart, Li Jingwei has a kindness to him, just like his reborn parents, how could he betray Li Jingwei?Regarding Liu Jipeng's suggestion, Li Ning asked the most frequently: "If I leave Jianlibao, will others say I am ungrateful?" Regarding this suggestion, Li Ning was very hesitant and could not make up his mind after repeated consideration. "I have seen too many companies that failed due to unclear property rights, and Li Ning is a gymnastics prince loved by the people all over the country. Whether it is his appearance or his character, he is recognized by the people of the country. I am also willing to go to Help him." The article "Li Ning: From 106 Gold Medals to 1.6 Billion Worth" recorded Liu Jipeng's thoughts.He said: "At that time we often communicated together, he respectfully called me a teacher, and asked me about some equity reforms." He is going in the right direction.What Liu Jipeng can do is to repeatedly explain to Li Ning the interests of unclear property rights.Liu Jipeng persuaded Li Ning, saying: "You are only leaving Jianlibao, not Li Jingwei. Besides, Jianlibao is not exactly equal to Li Jingwei." Finally, Liu Jipeng, who has a straightforward temperament, became anxious, and even pulled out his chair to stand up, and said to Li Ning: "If If you can’t save yourself, I’ll talk to Li Jingwei and the Sanshui City Government.” Li Ning then made up his mind and made a very important decision in the company’s growth process: a showdown with Li Jingwei and the Sanshui City Government.When Li Ning told Li Jingwei the whole story and his own thoughts, unexpectedly, Li Jingwei, who thought he would react strongly, was quite magnanimous and fully supported him to set up his own company.Jianlibao Sportswear Company is a subsidiary of Jianlibao Group, so Li Jingwei has complete decision-making power.

In September 1994, Jianlibao Sportswear Company successfully got rid of the parent company of Jianlibao Group and changed its name to Li-Ning Sports Industry Company after slight adjustments.Li Ning Company officially took off the "red hat", and Li Ning himself controlled the property rights of the enterprise.From the perspective of the company's history, Li Ning Company did not really appear in the Chinese market until this time. The escape was extremely smooth this time, and Li Ning Company was already a golden egg in the market at this time. In 1994, Li Ning's sales were as high as 250 million yuan.However, Li Jingwei did not make too many demands. The Jianlibao Group invested 16 million yuan in several installments, and Li Ning repaid it in cash in three installments.Afterwards, according to Liu Jipeng's introduction, this kind of repayment was based on the historical cost, and Li Jingwei did not even ask for compensation for the value-added part.After the first "redemption", Li Ning, his family and other entrepreneurs owned 80% of the company's shares, and Jianlibao Group retained 20% of the shares, because the production workshop of Guangdong Jianlibao Sportswear Company became the only one owned by Li Ning Group. There are production workshops.However, these shares have become insignificant for business control and will be gradually purchased and diluted to nothing in the years to come.

The importance of this matter will not be reflected until many years later.In the future, Jianlibao will be trapped in the reform of property rights and will eventually fail. "Red hat" is one of the biggest problems that plague the development of private enterprises in China. There is a long list of companies that have failed here, including Kelon. More companies have paid a heavy price to take off the "red hat" ". Li Ning Company shared many advantages brought by wearing a "red hat" in the early stage of private enterprise development.And the dangerous hurdle of "red hat", also promoted by Liu Jipeng and Li Jingwei, passed it in time, and has been relaxed ever since.

In the process of taking off the "red hat" of Li Ning Company, it can be seen that Li Jingwei, Liu Jipeng and others are willing to do their best to help, which is closely related to Li Ning's frankness and focus and his strong desire to revitalize Chinese sports.In fact, fast-growing companies always have their extraordinary luck, and the founder's character, attitude, decision-making ability, and dedication to goals are the basis for this luck. On November 30, 1995, Li Ning ushered in the sports marketing of the first major sports event after leaving Jianlibao, the sports equipment bidding for the Chinese sports delegation of the 26th Atlanta Olympic Games.

Before, Li Ning Company was still in the "Jianlibao period". With the support of sufficient sales and cash flow, Li Jingwei and Li Ning's ideas of sports marketing for major events have been effectively developed. No name again. In December 1991, the delegation of the Beijing 2000 Olympic Games Bid Committee was going to Lausanne to submit the application. Li Ning was one of the three members of the delegation.At the headquarters of the International Olympic Committee, after China officially submitted its application for hosting the 2000 Olympic Games, Li Ning presented Samaranch with a sports jacket he wore when he participated in the torch relay of the 11th Asian Games in Beijing as a souvenir.Afterwards, Samaranch put on a Li-Ning shirt and took a group photo with Li-Ning.Although in the end China lost the bid with only a difference of two votes, the photo of Savon and Li Ning took root in several Li Ning stores in China.