Chapter 419 Going public isn't that simple
Hu Jiangyan arrived at Hou Liwei's office without knocking and pushed the door open.
Hou Liwei was writing a report when he looked up at the person who barged into his office. Although he was a little reluctant, he didn't say anything.
Hu Jiangyan walked directly to the chair in front of the desk and sat down, saying, "HK is really a great place. This time, we must make sure Jiaren's acquisition is successful."
"Jiaren, Jiaren, you like Huang Jiaren that much!" Hou Liwei put down his pen and replied with dissatisfaction.
"It's not even the end of the first month of the lunar calendar, why are you getting angry! Did I offend you or something! I'm talking to you about serious business!" Hu Jiangyan retorted directly to Hou Liwei.
"The machinery factory isn't mine, so how can I have the final say? I'm just a lowly office manager, and I haven't been in that position for very long, yet I act like I'm all that powerful," Hou Liwei said angrily.
The Hong Kong investors want to acquire the municipal machinery factory, but the situation is actually quite complicated.
Last year, when we participated in the Autumn Canton Fair, the factory director took Hou Liwei, Hu Jiangyan, and others with him, but they returned with zero results.
Hu Jiangyan met Hong Kong businessman Huang Jiaren at a reception organized by the Canton Fair organizing committee.
The two had a few meals together in private. Director Lu knew about this at the time. Once, he told Hu Jiangyan that he hoped to invite the Hong Kong businessman to the factory to inspect the business and see if there was any business cooperation that could bring some orders to the factory.
And so, Hu Jiangyan gradually became involved with the Hong Kong businessman.
He also successfully brought the Hong Kong businessman back to central Shandong to inspect the factory's business. He had taken care of his personal business and completed his official task.
Hong Kong businessmen deal in small commodities, so they really can't help with large items like machinery factories, mainly because they don't have the channels to sell them!
However, there is another option: to package the shares and go public. After making a profit, the entire group of shares can be sold off as a package.
While it's not accurate to say that everyone in Hong Kong is a stock market enthusiast, most people are just speculating for fun. Wong Ka-yan, a Hong Kong businessman, is considered part of the financial sector.
Although he lost a lot of money in the stock market this year, his real businesses are still going strong.
On my first visit to central Shandong, I discovered that this machinery factory has complete overseas sales and export qualifications and a complete basic industrial system.
Streamline the structure and eliminate unnecessary burdens and debts.
With a little packaging, they could easily secure funding, given the company's past strong sales performance.
So they came up with a crooked idea: they called it an acquisition, but in reality, they could only acquire half of the shares.
Despite owning only half the shares, Hong Kong businessman Wong Ka-yan couldn't afford to acquire them, so he had to go back to Hong Kong to raise funds and find partners to establish a shell investment company.
They used the gimmick of listing in Hong Kong to deceive mainland regulatory and functional departments.
This is a huge gamble!
Every step must be flawless, and the intricacies involved are quite complex. It looks simple, but it's actually incredibly difficult.
Faced with the prospect of profit, Hong Kong businessman Huang Jiaren still chose to acquire the municipal machinery factory. If successful, he could earn far more than he had from dealing in small commodities.
His ultimate goal was not to run the machinery factory to make money, but to acquire, integrate, package, and sell the shares he controlled.
This is a typical example of using real businesses for speculative trading.
Some members of the municipal machinery factory opposed the acquisition, as did some city leaders.
But the appeal of Hong Kong-listed companies lies in their prestige, their strength, and their performance.
The city's machinery factory is valued at 680 million yuan.
This is the output value of the land and the fixed assets of the machinery factory, not including bad debts and outstanding payments.
Huang Jiaren came to discuss matters such as streamlining departments and layoffs.
Chung Bin from the city government personally received the other party.
Their enthusiasm was incredible!
Zhong Bin has just arrived and needs to produce impressive results.
Wei Laisong has rice and many other companies in the High-tech Zone. If Zhong Bin wants to turn things around, he needs to produce a performance that can surpass that of rice.
It's listed on the Hong Kong Stock Exchange!
Shandong now has its first H-share listed company, and it's a long-established local enterprise—that's quite an achievement.
If it can be successfully implemented, will it serve as a model for other companies undergoing restructuring? The media will report on it extensively, and under Zhong Bin's leadership, wouldn't such outstanding performance be impressive?
Thus, Zhong Bin and Huang Jiaren's ideas hit it off immediately.
Everyone wanted to complete the cooperation with the municipal machinery factory as soon as possible.
The idea was wonderful, but the reality was full of difficulties.
The machinery factory is not a small workshop or small factory; it is a large factory with nearly 10,000 employees.
So many people eat at this factory; it's practically a small community, with not only residential areas for employees but also medical facilities and all sorts of other services.
Hong Kong businesses only acquire land and fixed assets; they don't need as many staff. Various streamlining measures are required, including divesting redundant departments and laying off a large number of employees.
No wonder the factory would be happy about it.
As a result, many traditionalists in the factory began to resist and oppose it.
The machinery factory was like a sieve; no news could be kept secret. Rumors of large and small meetings regarding the Hong Kong acquisition kept circulating. Even the higher-ups explained it as Hong Kong capital investment, making the municipal machinery factory a joint venture.
They even compared the treatment received by joint venture rice producers.
But the workers weren't stupid, and some traditional people also analyzed the meaning behind it.
The city's machinery factory may get better in the future, but that will have nothing to do with the vast majority of the laid-off workers.
Many of them are second or third generation workers who have relied on the machinery factory for their livelihood. If they are laid off, their whole family will starve.
Even the houses they live in belong to the machine factory. They don't work in the factory anymore. What if they are kicked out?
The workers, who were originally idle and had little work, now have something to do: surround Director Lu and ask him for a definite answer.
The factory even organized representatives to report the situation to the city.
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