Wind & Rain Electronics and Philips' LCD display technologies are the best in the world. But Wind & Rain Electronics had not produced their own LCD displays. They had only asked Philips' factories to produce some for them.
Feng Yu has plans to set up his own factories. When he was arranging for his men to look for suitable factories in China, someone from the higher-ups contacted Feng Yu.
Sichuan's Changhong Group is a listed company and is China's leading TV manufacturer. They had 60% of Hua Xia's TV market share, and their 21-inch color TV is exported to more than a dozen countries.
But now, Changhong Group is in trouble. They had placed too much faith in 21-inch color TV. Because of the high sales, Changhong Group kept expanding their production and bought production lines for 21-inch color TV.
Now, the demand for color TV in families had increased from 21-inch to 29-inch, 34-inch, etc. Their 21-inch color TV is not selling well!
This problem had caused Changhong Group's share prices to drop, and they are unable to recover. Those small factories that produced 19-inch and 17-inch color TVs had successfully transformed to produce computer monitors, especially the 17-inch computer monitors, which were now the mainstream.
Changhong Group's products are not selling well, and they need a new way out.
The higher-ups are very concerned about this leading company. Furthermore, Changhong Group is a component of China's stock market. Someone suggested to the higher-ups to let Changhong Group enter a joint venture with Wind & Rain Electronics or Wind and Rain Electronics. They can exchange shares or even merge.
When Jiang Wanmeng told Feng Yu about this, Feng Yu frowned.
If it were two years ago, Feng Yu will be happy to enter a joint venture with Wind and Rain Electronics. At that time, Changhong Group's workers, technologies, production lines, and assets are all top-notch. They are also a key company supported by the country.
But now, Changhong Group is going downhill and will be losing money this year. Feng Yu is not willing to enter a joint venture with Wind and Rain Electronics or even Wind & Rain Electronics. If it's an exchange of shares, I can consider it.
Changing this company to produce LCD TVs and LCD screens is not a bad idea. But Zong Qingxian went to talk to Feng Yu personally and told him a piece of bad news. The other party's appetite is too big!
Changhong's CEO didn't say anything. As long as they cooperated with Wind and Rain Home Appliances and received Wind and Rain Home Appliances' technology and sales channels, they were confident that they could turn their losses into profits. It would be even better if they had a sum of money. They could use it to modify the production line. Whether it was to produce a bigger 29-inch or 34-inch TV or a 17-inch computer monitor, he believed that they would be able to make money.
He only asked for an equal exchange of shares and for both parties to cooperate equally. But the higher-ups didn't think that way. Feng Yu had suddenly become the richest man in Asia. His rise was so fast that everyone in the world couldn't help but raise their eyebrows.
Taihua Holdings should be nationalized. How can there be such a capitalist in a socialist country? Although the Great Man's policies allowed some people to get rich first, they shouldn't be so rich. Taihua Holdings is almost as rich as some small countries!
Also, Feng Yu still has more assets in a Wind and Rain Holdings Group, which is registered overseas. Isn't he spending all his money overseas? What if Feng Yu emigrates in the future? This will be a serious outflow of his assets!
Even if they can't control Taihua Holdings, it should not be a problem for them to invest in it. We can give guidance to this company and also send some management talents to them.
But if they invest in Taihua Holdings, they are afraid Feng Yu will retaliate. No one can afford to bear the consequences.
Some people thought of testing Feng Yu's strength. We will not touch Taihua Holdings first, but we can invest in those subsidiaries first.
If this is feasible, they can slowly take over Taihua Holdings and even control Taihua Holdings in the future. If everything goes well, Feng Yu might be able to take control of Wind and Rain Holdings!
That's why the higher-ups said that Wind and Rain Electronics is too small and should merge with Wind & Rain Electronics. Hmmm … all of them should be merged under Changhong. Changhong will hold 60% of the new company's shares, and Wind & Rain Electronics and Wind and Rain Electronics will hold 40% of the new company's shares.
Zong Qingxian, Jiang Wanmeng, and the rest rejected immediately. What a joke. Even if they want to merge, they should be the main shareholder. Our assets might not be high, but that is because we are not listed.
Furthermore, we are not short of money. Our parent company can inject funds into us and increase our market value. We can cooperate, but we must be the main shareholder!
… …
"Zong, Old Jiang, Old Guan, how is it? The other party still wants us to reply to them as soon as possible?"
Zong Qingxian shook his head. "Not only that. The other party also hinted that if we do not agree to their conditions, Wind & Rain Electronics and Wind and Rain Electronics will be in trouble."
If Aiwa Electronics and Aiwa Home Appliances do not have shares in the Japanese company Aiwa, they would also want to merge.
As for the Hong Kong businessman's shares in Wind & Rain Electronics and Wind and Rain Electronics, they don't care anymore. Hong Kong had returned to China, and it is Hua Xia's territory. What's wrong? You still want special treatment?
If Wind and Rain Electronics is merged, Changhong should be the major shareholder based on their market value. This condition is normal, but Feng Yu will not agree to it.
But now, the other party wants to merge Wind and Rain Electronics and Wind & Rain Electronics and even threatened them. This made Feng Yu unhappy. What's wrong? Do you think I am a pushover?
Wind & Rain Electronics is not only about the Wind and Rain brand. There are also patents for VCD, DVD, CD-ROM, mobile phones, LCD, telecommunication, smart home, etc. Just these patents alone are worth at least 500 million USD!
Changhong's market value is not so high now. How can those government officials account for 60% of Changhong's shares?
What bullsh * t transfer management talents? They are only sending some government officials over. Changhong might be going downhill because of those government officials' orders and blindly expanding production.
"Which department is the leader who made these demands from?"
"A leader from the Industrial Department. He is not from Changhong Group, and we have never met him before. We are one of the key enterprises in the Province, but we had gone to look for the Provincial Government's leaders, but they refused to meet us. It must be the higher-ups! "Jiang Wanmeng replied angrily.
That's right. They had made money, but how much had they contributed to the Province? If they had invested elsewhere, or even overseas, not to mention the province, even the country would not be able to make a profit!
After all, they can become foreign investors and return to China to make more profits. After all, at that time, people felt the moon is brighter in other countries.
Could it be that the Government sees Changhong's profits and wants to touch him? This should not be the case. It is obvious that they are supporting him now, and it is in line with the country's interests.
Seems like I need to ask the higher-ups about this.
… …
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