On the way back to Huaxia, Li Mu felt that it was more and more meaningless to go public in the United States.
Technology companies go to the US to get listed is because of the advanced technology environment in the US and the recognition of technology companies.
Because of Silicon Valley, the US capital and investors have the highest recognition of technology companies in the world.
For example, Baidu, which was about to be listed in the US, was about to be listed.
If Baidu is going to be listed in China's A shares market, it will not meet the requirement of being profitable for three years. Also, China's recognition of Baidu will be lower than Nasdaq.
This means if Baidu is going to list 10% of its shares, China's A share market is more conservative and can give it a P/E ratio of 20 times, and Baidu can get a valuation of 5 billion RMB. This way, Baidu can raise 500 million RMB by selling 10% of its shares.
But Nasdaq is the US's growth enterprise market, and it is very friendly to technology companies. That's why they can give Baidu a P/E ratio of 40 times. That means if Baidu goes to Nasdaq, it will get a valuation of 10 billion RMB.
That means Baidu will get double the amount of money it raised by 10% of its shares.
This is the reason why most internet companies are trying to get listed in Nasdaq.
But the internet industry had a bubble burst in 2000, and the US market's trust in the internet is not as high as before.
Under these circumstances, if Li Mu wants to get listed in Hong Kong, his valuation will not be lower than the US.
Most importantly, he can stay away from those Wall Street capitalists and the US tycoons.
Although many of the older generation of Hong Kong capitalists are the same as those Wall Street capitalists, after Hong Kong's return to China, the development of state-owned banks in Hong Kong is very fast. The biggest difference between state-owned banks and those capitalists is that state-owned banks not only pursue profits, but also promote the development of the society and economy. Capitalists only pursue profits and do not care if the society and economy is developing or regressing.
If the more society regresses, the richer the capitalists become, then they do not mind society regressing back to the Stone Age.
That's why Li Mu felt that if he could find a securities company with a state-owned background in Hong Kong to be the underwriter, and the market value of the securities company was not much lower than the US when converted to USD, he might as well get listed in Hong Kong. This way, he could contribute to the Hong Kong Special Administrative Region's economy.
Therefore, the more he thought about it, the more Li Mu felt it was worth a try.
Feng Yu should find an opportunity to go to Hong Kong and have a chat with the person in charge of the Hong Kong stock market.
Hong Kong is a financial center, but in Feng Yu's previous life, Hong Kong had missed out on the internet market and only managed to get hold of Tencent. This was because Nasdaq was more professional, and the Hong Kong stock market was not flexible enough.
If the Hong Kong Stock Exchange had agreed to Boss Ma's partnership system, Ali would have been listed in Hong Kong.
Ali was not only an internet company worth a few trillion HKD. It was also the engine of an e-commerce company worth tens of trillions of HKD. If Ali was listed in Hong Kong, the companies that Ali invested in and those independent subsidiaries might also be listed in Hong Kong.
Coupled with Tencent's ecosystem, Hong Kong can easily set up an internet financial ecosystem. This way, Hong Kong's profits will snowball.
Now, Li Mu not only owns Makino Technology's global ecosystem, but he also owns Taobao, Alipay, and many other companies. It should not be difficult for him to list all of his companies in Hong Kong. In the long run, it will increase the market value of Hong Kong's stock market by more than 10 trillion.
… …
Back in Beijing, Li Mu was about to set a time to go to Hong Kong when the higher-ups in the automobile industry met up with Li Mu to discuss the acquisition of Ford's Jaguar Land Rover and Volvo brands.
Li Mu suddenly went to the US and acquired three automobile brands, and the Chinese industry was very excited. This was an unprecedented attempt by the Chinese automobile industry, and there was a lot of room for imagination.
Therefore, the higher-ups asked Li Mu a few questions.
First, when will the acquisition be completed?
Second, when will the company move into Hua Xia?
Third, where will the company move into Hua Xia?
Regarding the first question, Li Mu had also communicated with Elon Musk. Now that the acquisition was completed, Makino Technology will pay 200 million USD as a deposit and immediately hire an internationally renowned finance company to conduct asset audit and due diligence.
After the audit and due diligence are completed and there are no objections, the remaining payment can be made and the acquisition completed.
As for the second question, Li Mu wanted to move the overseas production lines of the three brands to Hua Xia one after another after the acquisition was completed. If the US unions were easy to deal with, then all of them would be moved over. If the US unions were not easy to deal with, then the Land Rover production line in the US would be kept for the time being.
As for the third question, Li Mu's idea was to locate the site in his hometown, Nansu Province.
The specific idea was to establish an automobile industry center in Haizhou.
Haizhou's economy had always been underdeveloped. As an entrepreneur from Haizhou, he hoped to make some contributions to his hometown.
However, the higher-ups in the higher-ups analyzed the immaturity of the location in Haizhou for him in detail.
Haizhou was too small, had a small population, and had no industrial base. The only advantages were that it was not far from the sea, had a port, and had a railway. Other than that, its foundation was very poor.
Among the domestic automobile companies, FAW was the eldest son of the Chinese industry. After the founding of the People's Republic, it flourished with the strong support of the state. With decades of foundation, it could be said to be the first in the country in all aspects.
The Shanghai Automobile Group was also established very early, and it was located in Shanghai. It had talent, economy, and transportation. In addition, it had established a joint venture with foreign companies for a long time, so it had a strong foundation and experience.
Although the Yan Jing Automobile Group was established slightly later than the Shanghai market, it had everything in terms of talent, economy, transportation, and policies. Its cooperation with overseas companies was also accumulating experience and technology, so it was developing well.
In addition, the growth of several private enterprises was relatively difficult. For example, Geely, Qirui, and other brands had suffered for many years to develop bit by bit. In the early stages, it was difficult to even recruit workers, let alone the core team.
Only then did Li Mu realize the various constraints of the real economy, especially the industry.
The leaders were experienced, and they knew more about the situation in the country and the industry than Li Mu. Their experience was worth learning from Li Mu.
Li Mu thought about it carefully. If he wanted to bring these three brands into the country, then in theory, it would be better for the three brands to be closer to each other. Because in the future, the technology would be common, and the spare parts would also be interconnected to a certain extent. The closer everyone was, the lower the cost, and the higher the efficiency.
If he wanted to make three brands, including his own brand, the area would be huge. It was not an exaggeration to say that the area of a medium-sized economic development zone might not even be enough.
This required strong support from the local government.
The leaders hoped that Li Mu would consider Beijing because Beijing had a strong university resources and industrial foundation.
However, Li Mu was actually a little worried about whether Yan Jing, which was developing at a high speed, could provide enough land for his four automobile brands.
Just Beijing Auto alone was enough, and he was also working on the Film and Television City project. The area of that project was not any smaller than the automobile project.
Therefore, Li Mu decided to set up the head office in Beijing first, and then communicate with the professional team on how to plan the production lines of the brands.
There were many processes involved in automobile production, and most of them were dismantled. Li Mu felt that if it was not possible, he could set up the head office and assembly line in Beijing, and the rest around Beijing. Finally, the cars would be taken off the assembly line from Beijing and sold to the rest of the country, or even the world.
There was also a very important problem, which was the problem of funds.
Acquiring these three brands was only the first step. The second step would require tens of billions of RMB to transfer these brands' production lines, talents, and technologies to China step by step. He needed to buy land, build a factory, transport a large number of equipment, and carry out large-scale industrial upgrades. The total amount of funds required would not be less than 10 billion USD.
Fortunately, this money could not be taken out in one go. He could take out a sum of money first, then borrow a sum of money from the bank, and then apply for some local subsidies, especially for the issue of land.
With such a large industry, it would probably be an astronomical figure if he just bought the land.
Fortunately, the country had always supported private enterprises. The larger the scale of the enterprise, the stronger the employment and the economic strength of the enterprise, the more policy support the government would give.
At that time, he would have to rely on the help of the local government for the issue of land.
The leaders also gave a very positive response. Li Mu bought three internationally famous automobile brands in one go and turned them into 100% Hua Xia Automobile Company. Once it moved to China, it would definitely bring a huge improvement to the domestic automobile industry. Therefore, no matter where he chose, the higher-ups and the local government would definitely give the greatest support, and even the state-owned bank would give him a huge amount of loans with favorable conditions.
This made Li Mu feel a lot more secure. With the support of the country, he also had stronger confidence in the integration and rebirth of these three automobile brands.
During the meeting, the leaders also gave him a small suggestion, saying that they hoped that he could strengthen the cooperation with Shougang to see if he could help Shougang to make a breakthrough in the field of automobile steel.
Li Mu agreed without hesitation, and promised that once he finished integrating the resources of these three brands and successfully moved to China, he would immediately invest in an automobile steel research laboratory with Shougang.
Automobile steel had always been an important part of the steel market, but because the domestic independent automobile industry was not developing very well, domestic steel factories did not have enough breakthroughs in the field of automobile steel.
Although automobile steel was developed and produced by steel factories, for steel factories, without the full assistance of an automobile manufacturing company, it would be difficult for the steel factory to make a major breakthrough.
However, if Li Mu really integrated these three brands into China, and then cooperated with Shougang to do the research and testing of automobile steel, it would provide a huge boost to Shougang's business in this area!
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