Chapter 30 Figures in corporate history: The "angel" of the Huang family

Huang Hongnian, the son of a wealthy Indonesian businessman, understands Chinese politics very well.In a speech, he half-jokingly said, "I grew up in the turbulent China of the 1960s. If I had stayed in mainland China, I would probably be the vice president of the people's commune at most. But then I left, Twenty-five years later, I, a lost "talent", brought billions of investment to China and created the grafting and transformation of old state-owned enterprises, for an industrial revolution with Chinese characteristics that liberates and develops productivity. strive assiduously."

This kind of speech makes the listener very ear-piercing.He doesn't look like a foreign businessman at all, but seems to be a wanderer who returned from exile to feed his mother. In the minds of many state-owned enterprise managers who have come into contact with Huang Hongnian, Huang Hongnian is definitely a "character". The most important performance is that "he can often chat with the leaders of the central government".There are quite a few photos of him, some central leaders happily posing with his family with his woman in their arms.Every year at the end of the year, when the general managers of Zhongce companies from all over the country come to Beijing to report on their work, he must hire a certain building of the Diaoyutai State Guesthouse where the central leaders receive foreign guests. The general managers must verify and register when they come in, and the reporting time for each person should not exceed 15 minutes. , the atmosphere is relaxed and solemn, which makes the visitors awe-inspiring and unforgettable.

In terms of business operations, Huang Hongnian made full use of certain loopholes in China's current regulations.The original sino-foreign joint venture regulations allow foreign capital to be put in place in installments. Zhongce’s acquisitions often control state-owned enterprises by prepaying 15%-20% of the investment, and invest the funds obtained after the first batch of enterprises are listed overseas and then invest in rolling acquisitions.In addition, Chinese law stipulates that foreign joint venture parties are not allowed to transfer their joint venture equity, but Zhongce transferred the shares of the overseas holding company that held these equity.At the same time, Zhongce has made great profits by taking advantage of China's various tax incentives for joint ventures and the dual-track exchange rate system.When he acquired Ruby and reorganized it into Zhongce, the company still suffered a loss of HK$14.76 million, but only one year later, the company's net profit was as high as HK$312 million, making it a "miracle stock" in the Hong Kong stock market.

Huang Hongnian himself has no industrial experience and no interest in it. He has acquired hundreds of companies and has never stationed a single person. He relies entirely on the original factory directors to continue the operation. There are only two or three financial personnel in the headquarters who patrol and audit throughout the year.At the beginning of the acquisition, due to the liberation of the system, productivity can naturally be stimulated, and there has been a rebound in profit growth. However, with the increasing marketization of the mainland's economic atmosphere, the advantages of the system are gradually disappearing. The original industrial type is backward, the equipment is aging, and new product development The old problems of state-owned enterprises such as ineffectiveness and unreasonable talent structure have emerged one by one.Huang Hongnian was over-acquisitioned, weak in integration, quick to enter, and hesitant to exit, so that he finally fell into the quagmire of specific operations.Except for the two industrial groups of rubber and beer, which have gained a lot of profit from the integration and sale of the enterprises under Zhongce, all of them are on the verge of becoming irreversible. Quanzhou’s package plan has endless sequelae. give up halfway.At this time, criticisms of the middle policy phenomenon also appeared frequently. Some people accused Huang Hongnian of "empty hand profiteering" as "commercial speculation with no technology and no management experience" and "speculation of enterprises caused serious outflow of state-owned enterprises".

By 1997, the financial crisis broke out in Southeast Asia, and Hong Hongnian suffered heavy losses. He sold most of his shares in batches, cashed out about HK$700 million, and completely broke away from the relationship with Zhongce.According to Hong Kong media reports, after a series of acquisitions and share sales, Huang Hongnian made a profit of more than 2.6 billion Hong Kong dollars. In 1999, Zhongce "China Tire", which has nothing to do with Huang Hongnian, and other cooperative companies in China lost a total of 332 million Hong Kong dollars. After finishing the "China Strategy Game", Huang Hongnian announced the transformation of the company to business related to consulting technology and e-commerce, and the company also changed its name to "China Internet Global Alliance Limited".He once tried to hold Yinghaiwei, China's first Internet company, but failed in the end. In November 2000, Huang signed a contract with the China Xingfa Group under the State Council to form a joint company, named Zhongxing Strategy Co., Ltd. Zhongce hopes to use this "to participate in telecommunications, finance, etc. sensitive business".The registered capital of ZTE Strategy is US$100 million, with Zhongce holding 45% of the shares.This plan was quite a sensation when it was announced, but there was no follow-up afterwards.

Huang Hongnian was the first international businessman to bring the concept of "capital operation" to China. At that time, neither China nor he was ready, so he only made some controversial money, but failed to bring the industry His "roots" are rooted in this piece of land that has left his lush memories.