Chapter 76 The second expansion: predators second only to Deron

Just when Zhao Xinxian vowed to build the world's number one Chinese medicine company, the ecology of Chinese business circles suddenly changed.Since the 1980s, industrial entrepreneurs have always been the protagonists in the industry, and a large number of entrepreneurs who are good at operation and management have emerged in the fields of home appliances, food and medicine.However, with the rise of the Internet and the awakening of the capital market in China, another type of entrepreneur has suddenly become a new favorite. They are younger and better at using the amplifier of capital. They also start from scratch, but they can achieve wealth in a shorter time. accumulation.Faced with this irresistible change in business trends, Zhao Xinxian, who is nearly 60 years old, is not at a loss.On the contrary, he has been extremely aggressive in both the capital market and the Internet.

In April 2000, "Sanjiu Medicine", the flagship company of Sanjiu Group, was listed on the Shenzhen Stock Exchange with the code "000999". %, nearly 1.67 billion yuan was raised, and the scenery was second to none. Almost at the same time, the China Securities Regulatory Commission approved Yichun Engineering, a listed company in Jiangxi, to officially change its name to "Sanjiu Biochemical".Yichun Engineering is an enterprise mainly engaged in wheel loaders and their accessories.It went public in 1996 and ran into financial trouble three years later.Zhao Xinxian took aim at it when he went around for mergers and acquisitions.Sanjiu bought the state-owned shares held by its superior company and became the largest shareholder of Yichun Engineering. Through a series of investments and reorganizations, it transformed itself into a listed company mainly engaged in biopharmaceuticals.

In November of the same year, Zhao Xinxian made another move. He acquired 29.5% of the shares of Shanghai Adhesive Tape Co., Ltd. and became the company's largest shareholder.Tape Co., Ltd. was listed on the Shanghai Stock Exchange in 1992. It is one of the famous "old stereotypes". Its main business is conveyor belts, V-belts and other rubber products.After Zhao Xinxian succeeded, he reorganized it and turned it into a listed company mainly engaged in biogenetic engineering drugs. In 2003, the company changed its name to "Sanjiu Development". In less than a year, Zhao Xinxian made a strong move and became the owner of three listed companies in one fell swoop. He is undoubtedly the first person in the capital operation of state-owned enterprises.In the capital market at that time, only Tang Wanxin's "Delong Department" controlled three listed companies, Hunan Torch, Xinjiang Tunhe and Alloy Investment.In a conversation with media reporters, Zhao Xinxian said proudly: "In the capital market, Sanjiu's performance is second only to Delong."

The fact is that Zhao Xinxian built a very enviable capital platform for Sanjiu in just one year.At the same time that Sanjiu Pharmaceutical was listed, Sanjiu also obtained a franchise and invested 308 million yuan to establish Sanjiu Shenzhen Financial Leasing Co., Ltd.This is the earliest financial leasing company initiated and controlled by an industrial enterprise in China. It provides Sanjiu with a very superior channel for financing and mergers and acquisitions. In March 2001, at a strategic decision-making meeting of the company, Zhao Xinxian further proposed the idea of ​​cultivating 10 listed companies.He believes that many companies that Sanjiu has acquired in various places have met the conditions for listing through reorganization and packaging.

Compared with Tang Wanxin, a reckless Xinjiang entrepreneur, Zhao Xinxian has too many advantages.He acquires listed companies, so he doesn't have to hide and hide like an underground mouse.As the head of a large state-owned enterprise, any of his business activities represent the interests of state-owned capital, so he receives all kinds of care and preferential treatment; his source of funds is not as tight as Tang Wanxin, and the bank's door is open to state-owned enterprises , especially for a state-owned enterprise like Sanjiu with good profits, no matter which bank is willing to lend money to Sanjiu at any time—once, Zhao Xinxian complained that it was because the bank provided loans without restraint that the debt ratio of Sanjiu became higher and higher. come higher.It has a very successful product and brand, and all investment stories sound so reasonable and imaginative.In stark contrast to Zhao Xinxian, Tang Wanxin, who is a private citizen, does not have a prominent capital background and such a loose operating space, so he has to be more adept at speculation, has to be more cunning and fierce, and has to build a more complex and huge financing platform.Because of the different attributes of capital, as representatives of state-owned and private capital in the capital market, Zhao Xinxian and Tang Wanxin have very different performance styles, and their understanding of China's capital market is also completely different.

Zhao Xinxian has a deep industrial complex, which is the biggest difference between him and stock market makers such as Lu Liang and even Tang Wanxin.The projects announced by Sanjiu in the capital market basically have traces of investment and management, unlike other capital speculators who are shameless and talkative.Zhao Xinxian once revealed that the "Delong Department" and the "Chinese Science Department" had contacted him, hoping to jointly hype high-tech concepts, but he did not agree after thinking twice.Tang Wanxin once laughed at him and said: "Lao Zhao is a child of the Eight Banners in the capital market." This means that he has a prominent family and many resources but does not know how to "use".

In addition to passionate performances in the capital market, Zhao Xinxian also performed very actively in the face of the turbulent Internet heat wave. On April 24, 2000, at the same time that Sanjiu Pharmaceutical was listed, 999 Health.com, known as the largest medical and health website in the country, was launched.Zhao Xinxian announced that Sanjiu will adopt the idea of ​​"four networks in one", relying on Sanjiu's national sales network, using national pharmaceutical chain stores as ports, Sanjiu Health Network as a hub, and traditional Chinese medicine remote diagnosis and treatment network as an extension. A super medical and health service system.In the Internet craze that "concept is everything", Zhao Xinxian's vision description is naturally sought after by the market.

However, in the future operation, the "four networks in one" can't be realized at all, and the positioning of the health network is uncertain. From the health portal network to the learning website, and then to e-commerce, each transformation means a large amount of capital investment.In order to show the company's advanced image in the Internet age, Zhao Xinxian continued to acquire small and medium-sized websites. By 2003, there were 13 public service websites and 29 corporate websites under Sanjiu. Many are amazing. During this period, Sanjiu's development strategy has changed from the previous "eight major industries simultaneously" to "focusing on the life and health industry as the main business, and the two major industries of network information and financial leasing as the pillars".Zhao Xinxian's statement is: "The main business is like an airplane, and the pillars are like the two engines of the plane. They promote the development of the main business."

Such a description seems extremely bright. It not only adheres to the traditional Chinese medicine line of Sanjiu, but also grafts the two hottest industries in today's business circle-the Internet and finance.Sanjiu's strategy has always looked very good, but it lacks integration and deep cultivation in its implementation. The second expansion still did not allow Sanjiu to achieve a decisive leap. One fact is that Sanjiu Group has never developed a successful traditional Chinese medicine product since 1990.In the following 10 years, it has been supporting the world by relying on Sanjiu Weitai and Dermatitis Pingping "veteran ministers". In 2000, Shenzhen held a national high-tech commodity fair, and Sanjiu Group launched a large number of medical and medical equipment with high-tech content in one go, such as refined Chinese medicine electronic blending center, Sanjiu intelligent decoction machine, online Chinese medicine diagnosis and treatment system, near-infrared breast cancer diagnostic instrument, digital cardiac interventional C-arm system, etc.In addition, a number of network information products were unveiled, such as "VIOP" telephone system, 3D digital stereoscopic image production system, Dongfang Shinkansen network information system, etc.These new products made Sanjiu the most dazzling star at the High-tech Fair, and people were amazed at its scientific research and development capabilities.However, it is regrettable that these high-tech products did not form a large-scale production in the end, and naturally did not bring corresponding economic benefits to Sanjiu.

On August 27, 2001, Sanjiu was warned by the China Securities Regulatory Commission when he was caught off guard.That night, Zhao Xinxian accidentally heard his name on CCTV's news network program.According to the news, the China Securities Regulatory Commission issued a public notice criticizing Sanjiu Medicine, claiming that its use of raised capital was inconsistent with the prospectus, and that major shareholders and related parties occupied more than 2.5 billion yuan of listed company funds, accounting for 96% of the company's net assets. Infringed on the interests of the majority of small and medium investors, directly threatening the asset safety of listed companies.The circular also publicly criticized Zhao Xinxian, the chairman of Sanjiu Pharmaceutical, by name, saying that he "had a major dereliction of duty, and the circumstances were particularly bad, and should be condemned."This is the first time in the history of Chinese securities that the China Securities Regulatory Commission has used a public notice to name, condemn and criticize the chairman of a listed company.

It is conceivable that this news has caused great damage to Sanjiu, who has always had a good image.In the past year, the negative news in the securities market such as the banker Luliang incident, the Yinguangxia incident, and the shady fund have made people lose confidence in listed companies. As soon as the China Securities Regulatory Commission issued a public condemnation, Sanjiu suddenly became another "" Stock market scam". Zhao Xinxian had no predictions about this incident.In his consciousness, Sanjiu Group and Sanjiu Medicine are his left and right pockets, and the embezzlement of funds should be a normal thing.I think that when he founded Sanjiu, he misappropriated the money from the construction of houses for workers to buy equipment without authorization, so it was spread as a good story.Once, when he went to Peking University to give a speech, he also sarcastically told an anecdote about his "struggle" with foreign investors: "When the foreign party purchased our equity, according to our financial management at that time, the foreign party's When the money comes in, it goes to the financial settlement center. The money in this financial center is put here, and everyone can spend it. I use the money to engage in real estate and tourism, and the foreign party is dissatisfied. According to their corporate management rules, The parent company can't take the company's money, and would rather store it in the bank than move it. A few representatives from the foreign party went to the higher management agency to sue us, saying that your boss Zhao spent our money. The superior leader is also a business cadre, just Said, look at the "Sino-Foreign Joint Venture Law", which says, in order to use foreign capital to establish a Sino-foreign joint venture, why did Zhao Xin give you a part-time job? Isn't it just for money?" According to the reporter's record, Zhao Xinxian's words, "attracted There was a huge applause." I didn't expect such a big contrast between this moment and that moment.But despite his inner discontent, he projected entrepreneurial grace and reason. Three days later, he appeared in front of the cameras of CCTV reporters, and the first sentence was "accept criticism", and the second sentence was "apology".However, he always believed that he was "actually not wrong".He told reporters that our projects did not cause the loss of state-owned assets, but guaranteed the value-added of state-owned assets in the future.