Gree is released! According to the Zhuhai SASAC’s request to complete the review by November, the time is getting closer and closer. Dong Mingzhu, who emphasizes the concept of transcendence, seems to have had a choice.
Editor’s note: This article is from WeChat public account “Fuzhong Finance” (ID: Thecapital), the author of me.
In the present China, the market system and the traditional system are in parallel, and the well water does not make river water. But when the two models intersect at the point of great interest, it is not just a question of how to choose.
Gree is released! No matter who wins, Gaochun and Magnolia will be the victory of the value investment philosophy. The only condition that determines the winner is who is more market-oriented, who knows the industry better, and who can plug in the wings of the Internet for Gree. In this way, it will be a leap in the investment concept of the Chinese investment market.
80%, release Gree
Gree’s equity transfer is conducted in a near-quiet manner.
Unlike our common iceberg model, 80% of the operations are undercurrent under the countertop, guessing, tempting, and wrestling, this time the opposite.
The Zhuhai State-owned Assets Supervision and Administration Commission drastically promoted Gree’s mixed reforms, and the capital and market also gave a positive response in the first place. In the end, among the 25 well-known enterprises and institutions at home and abroad including Temasek, Baidu, Houpu Investment, Gaochun Capital, Boyu Capital, Houpu Investment and Gaochun Capital won the finals.
The investment community has quietly accepted this choice, but in private, according to their own understanding and preferences, will discuss who will eventually win, but most of them are unclear and cannot be judged.
As an investor said to Rongzhong Finance: In some respects, investment itself is a “controversy” (uncertainty). Just in terms of personal preferences, many investors support sorghum. A senior investor told Rongzhong Finance: “In recent years, Gao’s long-term value judgment on investment has been very accurate. To make long-term value judgments and determination is still a test of the comprehensive ability and strength of investors. I personally prefer stilts.”
An investor told Rongzhong Finance, “Gree is a national enterprise, and this kind of subject change has many factors and meanings.”
The transfer of Gree’s 900 million shares corresponds to a 15% stake, with a transaction volume of more than 40 billion yuan, or more. PreIt shows that the control of China’s manufacturing leader with a market value of more than 300 billion yuan will fall by, but no matter who wins, it is a symbolic event for the Chinese capital market.
In the 40 years of reform and opening up, the mixed reform of state-owned enterprises has always been a field of frequent disputes, and the disposal of state-owned assets has always been inconspicuous. The reduction of the Zhuhai SASAC is an important measure to deepen the reform and mixed reform of state-owned enterprises in Zhuhai. The release of Gree will promote the market-oriented choice of Gree’s healthy, fast and high-quality development.
This is a big thing with benchmarking meaning – a new model for mixed change. It means that the country’s determination to support China’s manufacturing and support for outstanding entrepreneurs means that the reform of state-owned enterprises will be more market-oriented.
Gree’s equity transfer is not the first time. According to the data, in 1991, due to the interests of distributors, management equity incentives, etc., the shares were transferred several times, including the 2006 share split, the 2007 transfer of equity to Jinghai guarantee, and the 2009 equity incentive. In addition to the open market transactions during the period, Gree Group’s shareholding Gree Electric Appliances has been from 60% at the beginning of the listing to 18.22% now. After the transfer of 15%, Gree Group also has 3.22% of the shares.
Before the transfer, there were 5 million equity incentives that were not implemented and were directly incorporated into the transaction.
Unlike the previous mixed reforms of state-owned enterprises, Gree is not only a model of state-owned holding companies symbolizing the introduction of private capital, but actually giving up control and discourse power, and no longer “interpreting” the operation of enterprises. In fact, as the former “father and son”, Zhu Jianghong, the former chairman of Gree Electric Appliances, and the current Dong Mingzhu have had any disputes with the Zhuhai State-owned Assets Supervision and Administration Commission and the Gree Group.
When the company encounters difficulties, the SASAC says that this is your business problem and solves it by yourself. However, when there are some problems with interest, it may be very long. What government decides, SASAC requires, maybe Will come out.”
For Dong Mingzhu, the Zhuhai SASAC must have given a very forbearance and 12 points of support. What can you do with the “Sun Monkey” who is full of justice and the trouble of the Heavenly Palace?
It is reported that at the 2014 Summer Davos Forum, Dong Mingzhu stated clearly: “Gree Electric was the first wholly-owned state-owned enterprise in a place. The country invested 30 million at the time, but now the return has exceeded 30 billion. And the investors are given annually. Stick to dividends.”
Five years have passed, and that number has reached more than 60 billion. For the Zhuhai SASAC, this is a good deal.
As a symbolic Gree mixed change, controversy and questioning are inevitable: there are problems such as why state-owned capital has given up its absolute holding position, who will take over, and the norm and effectiveness of taking over. Later, there were doubts about whether the two receivers were financially invested or strategically invested, but these doubts slowly dissipated in silence.
Before the truth becomes truth,Always accept questioning torture.
The same, for Gaochun and Magnolia who will win is also a hot spot in the market. According to Zhuhai SASAC, the time for completing the review before November is getting closer.
The remaining 20%
Masters are always fascinating.
The ultimate competition between the two consortiums of Gaochun Capital and Houpu Investment is more like a dragon and a tiger fight. The sorghum dragon is in the sky, the thick and the tiger are smashing. They all have to “invest in China’s big standard.” Before that, the feeling of sorghum is low-key, and the feeling of Magnolia is mysterious. It is their common feeling to the outside world.
Huangpu is mysterious to not have his own official website, and Gaochun’s official website is only 寥寥500 words. Their deeds are only circulating in the square.
Public information shows that the sorghum management and operation fund is about $60 billion.
Sorghum’s investments cover areas such as TMT, life health, consumer retail and corporate services, and span all stages of equity investments such as seed investment, venture capital, private equity investments, listed company investments, and M&A investments. Over the past 10 years, we have invested in a large number of outstanding companies that redefine their industries, including: Tencent, Jingdong, Meituan Review, iQiyi, Qunar, Didi, Uber, Airbnb, Traveloka, Belle International, Peets Coffee, Baekje Shenzhou and WuXi PharmaTech.
On August 30 this year, Gaochun Capital transferred 1% of the total share capital of Aier Ophthalmology Co., Ltd. through block trade, and thus, Gaochun Capital will rank fifth in terms of 2.57% of its shares. shareholder.
Sorghum is a company focused on long-term structured value investments, founded by Zhang Lei in 2005. His investment philosophy is “find the best company, the friend of time.” In the eyes of the onlookers, Zhang Lei is like Buffett, an investment expert who buys and holds long-term equity. – At the beginning of the establishment of Gaochun, the first investment in 2005 was given to Tencent and held for a long time. Today, Tencent’s market value is close to $500 billion. Each round of financing from Baekje Shenzhou has been supported by Gaochun Capital and is the only full-time investor in China.
Just last year, Gaochun Capital completed the largest private equity fund in Asia’s history of $10.6 billion. In the statement of fundraising completion, Gaochun Capital said that the new fund will invest in health care, consumers, technology and services, with a particular focus on the Chinese market. The new fund will implement the strategy of Gaochun Capital, leveraging its extensive operational capabilities and deep understanding of technology to create long-term value.
Zhang Lei believes that investment “is actually after you have done research, you have a belief. Any business, don’t ask how much money to earn, don’t look at today’s income and profits, it doesn’t make sense. First look at him. How much value this society has created for his targeted consumers and customers. We are looking for social madnessLong-term value entrepreneurs. His income will sooner or later catch up, and his profits will catch up sooner or later, and society will sooner or later reward entrepreneurs who are constantly crazy to create long-term value.
Investing in Jingdong as an example, in 2010, Jingdong invested nearly 300 million US dollars. Four years later, the equity value of Jingdong IPO surged to 3.9 billion US dollars. “Gao’s investment has enabled JD to quickly establish an unassailable lead in B2C e-commerce in a very short period of time, and even to some extent deterred the capital to invest in the competitive companies in this field, strengthening JD’s market leadership. .”
A review said that Gaochun Capital represents a very different investment institution, covering the earliest venture capital, private equity investment, and investment in listed companies. This kind of whole industry chain, there are not many successful cases of full-stage and full-asset investment abroad. If there is one, only Buffett.
In 2017, Gaochun Capital Holdings Belle. The weakness and predicament of Belle at that time, from the perspective of Gaochun, is a fragrant.
Zhang Lei believes that Belle has the integration advantages of producers, distributors and supply chains. For Gaochun, there are prerequisites and space for transformation. Zhang Lei’s logic is that business model innovation has bottomed out, and technological innovation is the future value of refined business transformation.
The top executives of Zhang Lei and Gao Wei have repeatedly said that after the privatization of Belle by Gaochun, it is not a personal “end” operation in the general sense, but still dominated by the original management, relying on 20,000 directly operated by Belle. The core assets and core competitiveness of home stores and more than 100,000 clerk and supply chain capabilities, do business changes without changing Belle’s original business processes, and help Belle build a powerful data center and informatize Resolutely embrace change, embrace innovation, and win the trust of Belle’s hundreds of thousands of employees.
Capital power should play a role of integration and innovation in the two ends of the technology enterprise and the real economy, and have the opportunity to “promote the effective integration of new technologies and traditional industries, and help and support traditional enterprises to carry out cross-regional, cross-time and cross-industry innovations. upgrade”.
In the matter of investing in Gree Electric, Gaochun Capital has already quietly laid out.
Gree Electric’s 2019 semi-annual report shows that Gaochun Capital Management Co., Ltd.-HCM China Fund ranks 8th among the top ten shareholders, with a total of 43.396 million shares, with a shareholding ratio of 0.72%. According to the latest share price of Gree Electric Appliances, the market value of the above shares reached 2.552 billion yuan.
In fact, since the beginning of 2016, Gaochun Capital has spent RMB 800 million to start 45.36 million shares of Gree Electric Appliances and has been holding it ever since. In terms of global investment, as of the end of the second quarter, Gaochun Capital held a total of 58 US companies with a total market capitalization of US$7.606 billion (53.4 billion yuan), an increase of over 16 based on the end of the first quarter of US$5.987 billion. One hundred million US dollars (11.2 billion yuan), an increase of 27% from the previous month.
The magnolia is also there