Chapter 164 Seizing food from the tiger’s mouth?

Chapter 164: Snatching food from the tiger's mouth

Scenes of farce and farce that go against common sense cannot conceal the profound reality that the empire is falling.

“Born in despair, growing in doubt, and ending in madness”,

This is a famous saying in the investment community, and it could not be more appropriate to apply it to the company after the 2002 anniversary. but.

What Song Ruhua didn't expect was that a pie he drew on a whim would lead to the collapse of the entire empire.

In August 2002, when Song Ruhuahe was still immersed in the excitement brought about by the tenth anniversary celebration, a storm that was internally called a "media storm" quietly came.

A series of nakedly questioning reports pointed directly at the nationwide recruitment of 5,000 software engineers carefully planned for the 10th anniversary;

Misfortune never comes singly, and it happened to happen again at this time. An unexpected lawsuit.

The first thing to bear the brunt is bank credit, which is the basis for the company's survival.

The shell company’s external guarantee 9 years ago was a complete disaster.

Song Ruhua was caught off guard by what happened nine years ago.

For Song Ruhua, the bank is just a money bag.

Enclose land in the name of building software parks and investing in the market, converting land resources into land capital, and then reassessing this land capital and taking it to the bank for cash. In this way, the chicken lays the egg, and the egg lays the chicken. , as long as energy continues to obtain cheap "high-tech" land from the government, this is a perfect closed loop.

For banks, firstly, there is a relationship with the place, and secondly, the value of the land is indeed there. Land mortgage loan is the most popular loan method in banks.

There is a real joke

During the process of applying for a loan from a bank, a certain bank president laughed and asked, "It is rare to see Top products on the market. How about the sales in your report?" Where does the income come from?"

The person in charge of handling this matter said half-jokingly and half-seriously, "We have a subsidiary that specializes in smuggling."

The bank is responsible for People laugh and give up, no longer delving into it.

Everyone tacitly accompanied Song Ruhua to cash out.

So, Song Ruhua never expected that the bank would stab him at a critical moment.

In fact, Song Ruhua didn’t know as much about the guarantee as the media at the time.

Because, when acquiring the shell company, the local government promised that past matters would be resolved, and even if something went wrong, the local government would shoulder the responsibility and have nothing to do with the new company.

The Confucian businessman Song Ruhua naively thought that the local government would come forward, just as he may not have thought that the mighty empire would recruit a mere 5,000 software engineers in China, a country with a population of 1.3 billion, which would actually attract many The three-dimensional integrated bombing of television, newspapers, and the Internet is the same.

So, he and I both kept silent about it.

Promises are naturally verbal.

AndWritten contracts are two different things.

The promises made by the predecessor have nothing to do with the current one

If you say something before retiring, someone must be willing to listen to it after retirement.

Everyone talks about the weather, but no one can do anything about it.

Since late July 2002, all the sweltering heat and restlessness in the city of Jincheng seemed to be converging towards the city. Along with the sound of cheers and cheers at the celebration, the stock prices of three listed companies fell.

In the overwhelming media reports, doubts drowned out praises.

One of the most eye-catching and courageous reports is called Bubble, which was jointly written by 21st Century Business Herald reporter Yang Ruifa and economist Mao Yining in August 2002.

Of course, these two people are not good people who pursue justice. The latter even cried behind bars for extorting Oak International.

The original intention of writing this report was also to extort money. Unexpectedly, Song Ruhua was too stubborn and didn't take them seriously at all.

The two reporters were furious and directly published the report in the newspaper.

The article conducts a comprehensive analysis in four paragraphs: "The Mystery of 5,000 Talents", "Software Park Turns into a Foot-washing City", "Why the Magical Subsidiary is no longer prosperous", and "Where are the core products of the company?" torture.

These four questions reveal the tip of the iceberg of the empire bubble.

First question, 5000 software engineers.

According to the "plan", 30 software parks will be built across the country in the next three years, with a staff size of 40,000 and a traffic population of 100,000.

What kind of scale does 5,000 software engineers represent?

Whether at home or abroad, a software company with more than a thousand employees at that time was considered a large company of considerable scale.

The claim to build a software company with 10,000 employees is really amazing, exciting and frightening.

The 21st Century Business Herald quoted the research results of the listed company research team of the Huating National Accounting Institute and directly slapped it in the face.

Research results point out that the management of software talents has always been a difficulty for global software companies.

Generally speaking, there are unwritten rules in the software industry. No matter how good the market prospects are and how mature the internal management is, the number of software engineers recruited by a software company within a year cannot exceed 20 of the company's original engineers.

An example is that Microsoft, which has 50,000 employees worldwide, has experienced good business development in the past year, but it has only recruited several thousand employees, less than 15% of its original employee ratio.

Professor Yuan Meng, chief engineer of Zhongke Hongqi and known as the father of Chinese UX, believes that domestic companies simply do not have the ability to manage and control 5,000 software engineers.

Currently, the entire group has only 1,640 technical personnel and can recruit 5,000 software engineers at one time. Not to mention that in China where the software industry is still immature, even internationally renowned software industry giants cannot do this..

According to simple business logic, no matter how you expand, the two key issues you have to face are what you can do after the expansion and how to survive after the expansion

Not to mention anything else. From a cost perspective, based on the current annual salary of domestic software engineers of 100,000 yuan in 2002, the group's annual expenditure on wages alone would cost 500 million yuan, and including social security and housing provident funds, it would cost about 700 million yuan.

If you add office equipment, travel expenses, etc., it will be an astronomical figure.

From the income side, according to Microsoft's calculations of local Chinese companies, according to the current management situation of the domestic software industry, assuming that the sales department can successfully achieve 100 sales, a qualified domestic Software engineers must complete at least 20,000 yuan of business for the company every month in order for the company to maintain normal operations.

According to this indicator, if a team of 5,000 software engineers should create an output value of at least 100 million yuan for the company every month, then the annual output value would be 1.2 billion yuan.

In addition, coupled with the huge investment announced by the group in the construction of 27 software parks across the country, industry insiders estimate that software needs to achieve an output value of at least 10 billion yuan a year to break even.

But last year, China’s annual software output value was only more than 30 billion.

In the eyes of industry insiders, this is completely unsolvable.

Of course, these are the people in the industry who wear plaid shirts and jeans.

IT and venture capital have a natural connection, and venture capital and crazy investment are naturally equated.

So the estimates from IT people can usually be exaggerated, but in fact they are not that much.

But the rigid cost of salary cannot be covered by cash flow.

The last question, where is the core product, left me speechless and unable to deal with it.

Because they can’t answer it either.

Could it be that we don’t produce products, only concepts?

A storm is coming, and the confidence of banks that had previously been “favored” began to waver following this report.

After the emperor's new clothes are revealed, banks can no longer play dumb like before.

After all, we are all engaged in economics. If we pretend not to see it, it will be difficult to explain in the future.

The reporter’s four questions actually do not involve the real core issues at all.

If 5,000 people are recruited, they will be laid off if they are not suitable.

Whether the industrial park has turned into a foot-washing city or the profitability of the subsidiary are all minor issues, and they are nothing to be afraid of in the process of development.

There are many listed companies whose main business is not outstanding.

However, 27 industrial parks are being built across the country, requiring tens of billions of funds. How can a company with an annual profit of less than 100 million bear such a funding gap

This is It is the core essential issue.

This is about the continued operation of a company.

Economists who could no longer continue their vegetarian diet had no choice but toHaving stood up, it would be too anti-intellectual to say anything else at this time.

As a result, Song Ruhua's operations were exposed to the sun.

During the construction of the industrial park, the construction of real estate began.

Song Ruhua wanted to use these piles of unfinished buildings to force him into the palace, and then convert part of the land into residential land and sell it to others for profit.

So, here comes the problem.

Is it a software company or a real estate company?

In fact, this question is not a problem. If Song Ruhua succeeds in this transformation, Song Ruhua will judge right and wrong based on national results. He will be hailed as a legend for judging the situation.

However, at this time of exposure, this issue that was not a problem became a problem.

Where did the land come from, where did the loan come from, and who gave it

The most innocent thing here is the place. If they want to sell the land, they can just sell it to the real estate company. Why bother leaving? Such a situation

The current situation is like mud falling into the crotch of the local government, which is either shit or shit.

Being blind increased Song Ruhua's courage and made him unable to see danger, but his sense of smell was undoubtedly sensitive.

Just a week before the unexpected lawsuit, he said at an enlarged meeting of the financial group’s board of directors,

“Capital and product management are different, and product management is done wrong. It's just a matter of losing an order, and the impact on the entire business is partial and limited. Once there is a problem in the capital market, it will be a matter of a thousand miles."

He did not predict it. Wrong, it grows because of capital and collapses because of capital.

Recalling this past incident, Dai Lihui felt a little ironic.

After coming back to his senses, he advised Song Ruhua, "Old Song, don't continue this, the risk is very high."

Song Ruhua just proposed to launch education and health care , health care products troika to fill the big hole at this time.

Faced with Dai Lihui's advice, Song Ruhua smiled bitterly, "Brother, can I stop?"

Li Zhi and others were also helpless. There is only one way, while there is still money on the books and the bank loan has not yet reached the repayment period, transform immediately and break out of the siege.

When Dai Lihui heard this, he shook his head and smiled bitterly, he could only gamble his life.

I have no choice but to go to jail and eat.

After putting down the magnifying glass in his hand and handing a letter to his disciple Yang Zhiyuan, Zhiliu took off his glasses and rubbed his nose.

When people reach old age, they have to accept old age.

Already highly myopic, Zhiliu started to suffer from presbyopia, which made Zhiliu feel that her quality of life had seriously declined.

Find a dedicated secretary to help read the documents

Zhiliu sighed inwardly, maybe it was time to retreat.

Yang Zhiyuan took the letter and glanced at the sender of the envelope, then a playful smile appeared on his lips.

JustHaving just experienced the "disastrous" luxury in 2002, Song Ruhua's anniversary celebration this time seemed much duller. There was neither grand pomp nor lavishness. He just wrote a "letter of thanks to all walks of life."

With a glance, his smile slowly faded, and then a solemn look appeared on his face.

“Dear leaders and friends

After eleven years of development, the group has developed into a company with It is a private high-tech enterprise group with information technology value-added services as its core, integrating application software development, system integration, technical consulting services, IT vocational education, IT training, third-party logistics, and production of branded products such as applied electronics and precision CNC machine tools.

Owns three listed companies including software, Yanhuang Logistics and Technology; has entered the ranks of "China's Top 500 Enterprises" and "China's Top 100 Electronic Information Enterprises"; and is listed as one of the top 100 domestic software companies. Second place; was awarded the honors of "Hua Guo Famous Trademark" and "Hua Guo Logistics Experimental Base".

In 2002, the group achieved total sales revenue of 5.5 billion yuan, profits and taxes of 600 million yuan, and total corporate assets of more than 10 billion yuan.

The above achievements are inseparable from the cordial care, strong support and help of leaders at all levels, customers, partners and friends from all walks of life over the years, especially in the face of media controversy last year. , leaders and friends at all levels still stand firmly on the side and support and encourage in various ways, which is deeply touching.

2003 is a year for the Group to carry forward the past and open up the future. Since 2003, the group has fully transformed into an IT value-added service provider, and expanded new businesses such as IT training services on the basis of its original business. The group's development goal is to become the number one provider of IT value-added services in the country. People are working hard towards this grand goal.

”

Yang Zhiyuan doesn’t care at all about the profit and tax of 600 million yuan.

As the president of Fantasy Group, he saw through the trick in this sentence at a glance .

The total sales revenue of 5.5 billion yuan is 1 billion yuan in value-added tax, which means a loss of 400 million yuan.

Ordinary people may not be able to see it, but they do. Business people and leaders basically know what is going on.

Profit and tax are a local statistical standard.

Song Ruhua’s thank-you letter specifically mentions profit and tax. Obviously I want to send a signal

I have three listed companies, and I am full of glory. If you have the ability, you can destroy the bank. Now I am dying. I need to transform. It is up to you whether I can save you or not

Fantasy Group is not just a computer company.

The so-called Five Young MastersShuai Branch is the five subsidiaries controlled by Yang Zhiyuan and other five people.

One of the subsidiaries is called Shenzhou Digital, which provides IT value-added services and is also the largest IT value-added service provider in China.

Song Ruhua still dares to clamor to be the first in the country in this field and seize food from the tiger's mouth

Yang Zhiyuan does not think that Song Ruhua wanted to grab food on the fantasy territory. "Could it be that , He wants us to take advantage of him."

Otherwise Yang Zhiyuan would not be able to figure out why Song Ruhua sent this letter to Zhiliu.

Although the name is software, in the IT industry, it is basically a real estate company with no competition. There is no overlap between the two.

Zhi Liu calmly pushed a folder on the table to him.

Yang Zhiyuan opened the folder and then frowned tightly.

The Group’s feasibility plan for building a digital Cixi

Recommendation report on the cooperative development of the second phase of the Golden Taxation Tax Control Special Computer

The Group cooperates with the Chinese Academy of Sciences to develop ux domestic operating system request for instructions

The Group cooperates with Pengshan County to develop the Pengzushan Health Care Project Framework Agreement

There is also an industrial and commercial agreement from Jincheng Haiskai Overseas Chinese Health Industry Co., Ltd. Transfer data.

After reading it carefully, Yang Zhiyuan hissed and did not rush to say anything. Instead, he closed his eyes and thought.

Zhi Liu was too lazy to wait for him to think about it.

After all, the guy in front of him has never been known for his quick wit. By the time he figured it out, it was already dawn.

"Song Ruhua is trying to save himself. The biggest problem now is actually cash flow.

But he has no credit in the capital market now. Once the bank loan expires, , he will be deducted from the loan.

He cannot afford to repay the money. Without considering foreign aid, he can only consider defaulting and forcing the bank to extend the loan, delaying the release of the pressure of principal repayment. ”

Yang Zhiyuan became confused, “Teacher, I guess he can’t even pay the interest now. Will the bank agree to the extension?”

The current situation is to borrow money and repay the interest. If you borrow money, you won't be able to pay back the interest.

Moreover, not to mention the issue of non-compliance with the investment of raised funds, this obviously involves loan fraud, and the bank cannot bear this responsibility.

“So he is now preparing to create new cash flow projects to continue blood transfusion.

He has caught up with the trend of education industrialization, so this is considered a cash cow.

Peng Zushan can be regarded as a tourism real estate with a concept of health care. The real estate has real estate methods, which can bring a certain amount of cash flow.

Look at the industrial and commercial information on health products. , he is also ready to play. If he plays well, he will also have sufficient cash flow. Look, isn’t that what Shi Yuzhu is?

If it works well, he can not only cover the interest of several hundred million per year, After rebuilding capital credit, we can still find ways to convert those 27 industrial parks intoActivation, when the time comes, there is indeed the possibility of turning over.

Yang Zhiyuan frowned, "Teacher, this is not enough. Before the end of the year, the rigid payment funds will exceed 2 billion. Now there are more than 2 billion guarantees to be fulfilled. These projects will not take effect so quickly." of. ”

In his opinion, the harder you struggle, the faster you will die. Please remember to collect, the latest and fastest website without anti-theft, free to find books and add books, you can join the qq group 952868558