Chapter 752 China Enterprises Dongfang and Youlian

Zhejiang Evening News even lit the flames of opposition to the acquisition with the title "Beware of the budding of monopoly capitalism".

Immediately afterwards, the headline "Xu's Enterprise Empire - the Birth of China's First Monopoly Consortium" appeared on the TOM website.

As Xu Liang's old rival, Duan Yongji also jumped out restlessly and accepted interviews from more than a dozen media.

He openly opposed Xu Liang's acquisition of Delong.

But just when Xu Liang was about to launch a public opinion offensive to protect his own interests.

Li Xueqin, chairman of Asiastar Bus, who had once gone on a hunger strike to collect debts, accepted interviews from Qianjiang Evening News, Magic City Daily and other media.

Soon, an article "Duan Yongji, who is nosy and meddlesome" came out.

Sina reprinted it immediately, and Bing News also put it at the top of the news page.

The huge traffic of the two websites made this news spread all over the country immediately.

Li Xueqin's news seemed to have turned on the button, and hundreds of reports defending Xu Liang appeared all over the world.

For a time, the two factions became a mess.

——

Putting down the equity transfer contract in front of him, Jiang Xiaoyang couldn't help but sigh.

"Delong, the largest industrial group in China, I didn't expect that it would be acquired one day."

"It's my turn next year. No matter how big the enterprise group is, no matter how glorious the company is, there will be a day when it will be acquired or closed down.

This is also the reason why I set up a family office, a trust and a charity fund at the same time."

"You still have a long-term view." Jiang Xiaoyang smiled.

Xu Liang smiled and said, "Who made us the first generation of founders? Naturally, we have to consider the issue of family inheritance.

However, Delong's acquisition will not be completed in a short time, and we may have to wait."

Jiang Xiaoyang frowned and said, "With Delong's current debt, is there anyone competing with us?"

"Not only that, but also a lot."

He took out a document and handed it over.

Jiang Xiaoyang took a look at it and was shocked.

It clearly states JP Morgan, AIG, Zhongcai State-owned Enterprise Investment Company, Yinji Asset Management Company, Jia'an Asset Management Company, Wanxiang Group, Fosun Group, Huaxia Metallurgical Group, Founder Group, Seiko Group, Modu Industrial Economic Guarantee Co., Ltd., China Resources Group, etc.

On the list, all are top industry giants in international and domestic, state-owned and private enterprises.

"All these institutions want to acquire Delong?"

Xu Liang nodded and said, "Delong's overall debt is too large, so they don't want to acquire it as a whole, but plan to acquire the fattest pieces of meat in Delong Group.

For example, Tunhe Group and Xiang Torch.

So, they will try their best to prevent us from acquiring it as a whole and make Delong bankrupt as much as possible.

After bankruptcy, Delong Group will be transferred to a state-owned asset management company, and then Delong's assets can be controlled at will."

Jiang Xiaoyang put down the document.

"What are you going to do?"

"Of course, we will stop the enemy with the generals and cover the water with the earth." Xu Liang smiled.

Dongdong...

There was a knock on the door.

"Come in."

"Mr. Xu, Zhao Guodong, CEO of Yinji Asset Management Company, and Sha Zhenggang, CEO of Jia'an Asset Management Company, called to visit you at the same time." Lv Hui came in and said.

"Look, if you mention the devil, he will appear."

"Why don't I meet them? I know the CEOs of Yinji and Jia'an." Jiang Xiaoyang said.

She had just finished her confinement and was full of energy now.

"No, you are busy enough with the company's affairs. I will deal with these two people." After saying that, she turned her head and said, "Schedule their meeting for tomorrow afternoon."

"Okay."

"Has Standard Chartered arranged it?"

"Mr. Humphrey has checked into the Peninsula Hotel. The meeting time is scheduled for 9:30 tomorrow morning at the office of Hanhua Center."

Xu Liang nodded and waved his hand. Lv Hui nodded to Jiang Xiaoyang and turned and left.

Jiang Xiaoyang turned the topic to the acquisition of Delong again.

"This time we chose to acquire Delong in a debt-bearing manner. The loss is too great."

Jiang Xiaoyang couldn't help but say.

"If we don't do this, do you think the higher-ups will support us in acquiring Delong?

Forget foreign companies, those state-owned enterprises will drive us out.

No matter how powerful Hanhua is, it is just a godson.

Besides, isn't it just a debt of more than 4 billion US dollars? We can still afford it."

This is the truth, and Jiang Xiaoyang also understands it, but she still can't bear to think of adding another 4 billion US dollars in debt.

This is 4 billion, which can completely create another top-notch company in the industry like Kelong Supermarket or Huaxia Wine Industry.

"How are you going to deal with Delong's debt?"

"It's very simple, merge the financial statements, and then divest them all.

Turn the debt of Delong Group into the debt of Hanhua and Hongyan.

In this way, we can use the taxes that should have been paid to repay Delong's debt." Xu Liang affirmed.

To give a simple example, Hanhua earns 100 million US dollars from the US stock market every year, but this year it needs to repay 20 million US dollars in debt.

After deducting 20 million from 100 million US dollars, the tax base for taxation is only 80 million US dollars.

The tax rate for short-term capital gains in the US stock market is 35%.

Hanhua paid $28 million in taxes, leaving $52 million in gross profit.

If the debt is not repaid, the tax base is $100 million.

Then $35 million will be paid at a 35% tax rate.

The gross profit is $65 million.

In the case of debt repayment, gross profit was reduced by $13 million.

But $20 million of debt was repaid.

There was a difference of $7 million in the middle.

This $7 million is the money saved through financial operations.

In fact, the money Hanhua earned from the US stock market not only has to pay short-term capital gains tax, but some may also involve state taxes.

So it can only be more than 35%, not less.

In this way, more can be earned through financial operations.

According to the total debt of 37 billion Chinese yuan and 4.48 billion US dollars in the Delong Financial sector.

And the total tax of 35% of short-term capital gains tax can save $1.568 billion in expenditure.

In other words, on the basis of ensuring sufficient revenue, the actual debt that Hanhua needs to repay is $2.912 billion, about 24.05 billion Chinese yuan.

"2.9 billion US dollars is not a small amount." Jiang Xiaoyang still felt a little distressed.

"Haha, you money-grubber. Don't forget that the purpose of our acquisition of Delong's financial assets is to supplement Hanhua's business segments, not to buy a few empty shells.

We took over Delong's debts and still abided by the previous contracts. Of course, we will win the trust of institutional and individual customers, and there is a high probability that they will continue to be Hanhua's customers in the future.

In the short term, we suffered a loss, but in the long term, we have won valuable credibility.

Ten or twenty years later, today's losses will be earned back multiple times.

Although Delong's financial assets are now insolvent on paper, A shares have gradually improved since entering 2005.

After we have completely acquired it, we will adjust Delong's asset structure.

Maybe we can not only wipe out this 37 billion Chinese yuan debt, but also make a little money."

Xu Liang knew very well that the next three years, until before the subprime mortgage crisis, would enter the biggest bull market since the opening of the Chinese stock market.

When the Shanghai Composite Index peaked, it exceeded 6,000 points.

In this bull market, you can make money by investing casually.

So he was not at all distracted by the 37 billion Chinese yuan debt.

Thinking of Xu Liang's invincible investment ability, Jiang Xiaoyang also nodded in agreement.

"Is the integration of Delong's financial assets still according to the original plan?"

Xu Liang pondered for a moment and nodded.

There are two very special institutions under the Delong Group's financial assets.

First, China Enterprise Orient Asset Management Co., Ltd.

Second, Youlian Strategic Management Research Center Co., Ltd.

China Enterprise Orient is known as the largest securities and industry research center in China, and is the core enterprise of Delong engaged in industry research and financial services.

Its core competitiveness is to export Delong's best "M&A + industry integration + capital market" corporate growth model.

All along, Delong has appeared as a strategic investor, raising funds through shell listing, and then integrating traditional industries.

Delong has always wanted to promote this strategy and build Delong into a comprehensive financial holding group like "CITIC Group".

China Enterprise Orient is the flagship of this financial fleet that has not yet surfaced.

At its peak, China Enterprise Orient had more than 500 professional industry researchers, which is much more than the number of people in Hanhua Global Investment Research Department.

Later, as Delong's business fell into trouble, many people resigned from China Eastern, but the frame remained.

After the absorption and integration, it can greatly enrich the research capabilities of Hanhua Global Investment Research Department, especially the Huaxia part.

The industry research reports accumulated by China Eastern over the years will also greatly enrich the database of "Xueqiu.com", which will not only increase Xueqiu.com's revenue, but also make it truly the most influential website in the investment banking field.

If "China Eastern" is the flagship and helmsman of Delong's financial fleet, then "Youlian Strategy" is the financial flagship itself.

In 2003, Delong established Youlian Strategy to integrate its financial business.

It has a team of more than 100 industry research experts, a team of more than 500 account managers, and more than 2,000 institutional customers across the country.

Youlian Strategy itself is a strategic alliance composed of financial institutions and well-known research institutions including multiple commercial banks, securities, trusts, financial leasing, and insurance, in accordance with financial mixed operations.

Under this alliance, there are dozens of financial institutions such as Jinxin Trust, Jinling International Trust, Xiyu Financial Leasing, New Century Leasing, Nanchang Commercial Bank, ZZ City Commercial Bank, Deheng Securities, Huaan Property Insurance Co., Ltd., and Oriental Life Insurance.

The scale is extremely large.

Hanhua's integration strategy is very simple.

Absorb the structure of Youlian into Hanhua.

Establish four major subsidiaries, Hanhua Securities, Hanhua Trust, Hanhua Financial Leasing, and Hanhua Insurance.

Use these four subsidiaries to integrate the major financial institutions under the Youlian strategy.

At the same time, it can be seen.

In this integration strategy, banks are not involved.

Xu Liang is very clear that the current Huaxia banking industry is subject to too strict control.

Like Delong's use of gray means to control banks, it is okay when it is small, but once it grows, all kinds of monsters and demons will emerge.