Chapter 37 Scholars and CEOs from all directions: Delong speaks in his own way

Lang Xianping (economist, professor of Hong Kong University of Science and Technology): The root cause of Delong's problem lies in the failure of Delong's development model and diversified business strategy to combine industry and financial capital through a "quasi-financial holding company".The tension in the capital chain is the inevitable result of its development model and business strategy, and changes in the external financial environment are only the catalyst for the emergence of the DeLong problem. First, Deron's development model has inherent flaws.Its strategic goal is undoubtedly the same as other private enterprises, which is to "be bigger and stronger".Its model is based on the two wings of industry and finance, which cooperate with each other and advance together.However, the nature of the industry and the financial industry are different after all, and the speed of industrial integration benefits cannot keep up with the speed of finance in general.So this creates a structural difference.

Second, Delong's financing model is too risky.With the expansion of the "Delong" industry, Delong must rely on a large number of bank loans to maintain the capital chain and support its development strategy.Therefore, Delong solves the funding problem by mortgaging its legal person shares or guaranteeing loans through its affiliated companies. It has risen sharply, and the amount of external guarantees of many companies has exceeded 100% of the net assets.In terms of bank loans, in more and more cases, once the industry integration is unfavorable and banks tighten loans, then Delong's capital chain will immediately appear in danger.

Finally, as far as the combination of Delong's financial industry is concerned, it is not complementary at all. At the beginning of 2004, because the government was worried about investment overheating, the country adopted a policy of shrinking monetary policy in terms of financial policy, directly reducing loans to enterprises.The state imposes restrictions on several major overheated industries, including steel, cement, electrolytic aluminum, automobiles, real estate and coal, and several major industries that Chacha Delong is involved in are listed.According to the regulations of the central bank, the cooling of overheated industries is mainly restricted from two aspects: the industries and the scale of credit investment.In response to the introduction of a series of national policies, Delong's finance and industry not only do not complement each other, but instead restrain each other.

Wang Wei (Secretary-General of Global M&A Research Center, Chairman of Wanmeng Investment): Delong is a capital operation gambler.Delong relies on two cards behind his back: one card is an interactive group of listed companies formed by three major listed companies and six or seven related listed companies, playing a very famous capital game in the United States in the 1960s, relying on Financial leverage for acquisitions.Another card is to participate in a large number of non-bank financial institutions.Financial institutions serve as indirect financing channels, while listed companies serve as direct financing channels.Deron relied on these two "financial cards" to break out.

Delong has long advertised that he is committed to industrial integration, but until the collapse, he only saw the success of Delong's stock as the banker.It is said that Delong's ketchup industry has successfully integrated, but how can a group with assets worth tens of billions rely on ketchup to support the entire industry?The integration of Delong's cement, electromechanical and other industries is nothing more than "self-entertainment" for the industry.The industrial integration of enterprises is a very difficult process that requires the efforts of one or even two generations, and many enterprises are doomed to die in this process.For entrepreneurs, when do you enter into integration, and what is the next step, this is a severe test that you will face directly.

Zhao Xiao (economist, professor of Beijing University of Science and Technology): Delong's dream is a Chinese-style dream, that is, to use finance to integrate industries, give full play to the international competitiveness of China's manufacturing industry, and become a financial and industrial enterprise like GE. empire.However, Deron and GE have superficial similarities, but the main difference is essential.The United States has a mature market for capital factors and professional managers, while Delong is only a private enterprise. Maybe Tang Wanxin's "Longzhong is right" is right, but what is wrong is that for a Chinese private enterprise, this kind of thinking is too advanced Yes, it's incredible.To realize this idea, in China's current environment, Delong can only raise funds with extremely high interest rates and gray means, which forces him to always walk on a dangerous steel rope.

Lu Guanqiu (Chairman of the Board of Directors of Wanxiang Group): Delong's industrial foundation is well selected, and its development ideas are also right. It develops through the integration of high-quality industrial chains.Tang Wanxin is a relatively idealistic person. Some of his business concepts and ideas are advanced, but they may not be suitable for China's national conditions.Delong's biggest problem is that the industrial development is too fast.Industry needs a lot of investment, just like blood needs continuous infusion. Once the supply cannot be supplied, it needs financial support.And Delong mainly went to the secondary market to buy stocks, frying up the stocks of several listed companies, and then mortgaged them for loans.In fact, under the premise of insufficient strength and lack of follow-up development funds, Delong took two paths, one is to engage in finance, and the other is to absorb loans at high interest rates.Therefore, it mainly went beyond its actual capacity and wanted to take shortcuts. As a result, it took one wrong step and another wrong step, leading to a vicious circle.

Guo Guangchang (Chairman of Fosun Group): I think when we are unable to change the external environment quickly, the first thing we need to change is ourselves.The first thing we have to do is to regulate ourselves and do our own things well, so that we can get more understanding and support in the end.Through the Delong incident, one of the issues I think about the most is how private enterprises should regulate themselves, be transparent, obtain various resources, and obtain support from all walks of life. Rong Hai (Chairman of Xi'an Starfish Group): Although the West emphasizes specialization, China has a soil of diversification. If the old industry declines irreversibly, enterprises should seek new industry opportunities to make up for it.However, large groups must be clear when they are running various professional companies. If there is a problem with the group, the following companies will not escape, no matter how good they are. Delong is an example.Some private enterprises do not know what they cannot do. When the macro situation is good, it is easy for enterprises to get loans, and they think they can do everything; when the macro-control credit shrinks, short-term loans are cut off, and there are no other financing channels, it is easy to go wrong.Enterprises must hold money in their hands, and cash is king, otherwise they will succeed in capital and lose in capital.