Mid-August 1994.

Shenzhen.

Because Liu Lenovo came to visit and Lin Qi stopped being addicted to online games.

"Mr. Lin, I've been disturbed by the apology when I came to visit me this time." Liu Lenovo said with a restrained attitude.

"It's okay, I have very free time. If you don't come, I'll just play games and pass the time." Lin Qi said with a smile.

Play a game?

The imagined master of the super business empire with trillions of revenue should be a daily life, but Liu Lexiang never expected that Lin Qi would use his precious time to play games.

Sure enough, is it not enough? It is hard to imagine that the boss of top capital with a trillion-dollar revenue scale can be so idle.

This was actually something Lin Qi deliberately did.

If the boss is always busy, it will put huge pressure on the people below and easily suppress the space for geniuses to play. Even if such a company can continue to survive, its scale will be severely limited.

A top-notch virtuous person like Zhuge Liang was the prime minister of Shu Kingdom, and he had always been dying after bowing his essence. However, doing everything himself was not only exhausted when he was in office. Moreover, Zhuge Liang was so capable that the people below could not be trained, and today he suppressed the talents of his subordinates.

Cao Cao's Wei State was not as talented as Zhuge Liang. However, civil officials and military generals continued to emerge, and good talents continued to appear. Therefore, Cao Cao's Wei State had more power than Shu and Wu.

In ancient and modern times, both at home and abroad, the bosses are extremely smart, which has led to countless companies that have gradually become unavailable under their command. In the end, these companies have failed. The smart bosses gradually become lonely and capable people, and gradually leave. The main reason is that the boss does not delegate power and will only complain that there is no one available under his eyes. But even Jin Yuliang is in his eyes, he is not at ease to hand over the power.

Basically, companies whose bosses work hard all day long will not be able to become the industry overlord. They are prone to make a splash at the beginning, and are gradually surpassed by other companies, from leading to second- and third-rate.

It is precisely because of history that Lin Qi keeps free and allows more talents in the company to get the opportunity to train. As long as there are enough people in any company, there will definitely be talents. The reason why talents cannot be found is more because they do not give talents the opportunity to play and stand out.

The new entrepreneurial department has been doing so big, and in the future, it is more necessary to give other talents the opportunity to stand out. The boss is less likely to show off and give the opportunity to others, which is more beneficial to the company's future development.

Of course, Lin Qi still has his own positioning, and the most important strategic decisions still require him to propose or make a decision. He is unstoppable to these strategies that affect the company's future development.

As for the company, the company has formulated a development strategy, and the rest is management execution. The boss only looks at the results and does not pay attention to the process.

"Although the new entrepreneurial business no longer relies on the game business to survive, the electronic game market is still a market with great prospects and potential in the future." Lin Qi said with a smile, "Especially online games, which have just begun. The dragon and snake are starting to rise, and a large number of giants with market value of billions or even tens of billions of dollars will be incubated in the future. So, I have nothing to do to play games, mainly understanding the needs and psychology of players in the current market. If I don't understand the feelings of players at all, it will be difficult to have any vision in this market."

A big capitalist like Lin Qi doesn’t need to be too busy, but also requires brains and creativity.

While eating, drinking, having fun, and having fun, if you can use your brain, you will be more efficient when thinking about making money than being busy all day long.

Just like, later, Shi Yuzhu went from technological expansion to real estate because of his blind expansion, and invested in Giant Building. Due to the long construction cycle and the broken capital chain, he once changed from a wealthy man ranked eighth in the country to the first debt in the country. He was insolvent and had the highest debt ratio.

Of course, although Shi Yuzhu has become a first-time debt, gambling products are better than many people. He did not flee overseas to escape debts. Instead, he was burdened with hundreds of millions of debts and only millions of funds could be used. Later, with millions of yuan, he made a Nangbaiyin, earned capital back, and paid astronomical debts. From the planning and marketing of Nangbaijin, it can be seen that Shi Yuzhu's business wisdom is the top at home and abroad. Moreover, his psychological quality is terrible. He owed hundreds of millions of debts outside and only millions of dollars in his hand, but he endured the despair that he might never turn over. He even turned over with millions of dollars.

After that, after Shi Yuzhu made Naobaijin, he did not give up on looking for the next opportunity to make money. Later, "Legend" became popular, and Shi Yuzhu was addicted to "Legend" for a time, and continued to discuss online games and give suggestions with the operators of "Legend". Then, after studying "Legend" and understanding the selling points, Shi Yuzhu quickly began to organize people and develop "Zhengtu"...

"Zhengtu" even catered to players more than "Legend". For example, at the beginning, "Zhengtu" did not destroy the game balance, but was unwilling to provide plug-ins that were only convenient for players. Therefore, Shi Yuzhu is integrated into "Zhengtu", some auxiliary functions that facilitate players are integrated into the game.

It was also after some thoughts and some selling points and pain points that, although "Zhengtu" did not surpass "Legend", it was also a very similar online game.

Liu Lenovo smiled and said, "Although the gaming business has a good prospect, we are not good at it. At this stage, Lenovo will still focus on computers, and the global computer market is still growing faster than traditional home appliances. Last year, the independent brand of Pangu compatible machines sold 2 million computers. After acquiring Pangu Learning Computer assets this year, sales volume increased to 2 million units. Pangu compatible machines market position has increased to second place, and its share in Pangu compatible machines market reached 13%.

The share of the computer market (including PC and Pangu) has increased to 6.3%. However, for the merger and acquisition, a loan of RMB 10 billion was 10 times, and Lenovo's debt ratio increased by more than ten times the net assets. At this stage, Lenovo's asset scale is 12.7 billion yuan, but its net assets are only 860 million yuan, and its debt ratio is too high. In the next five years, nearly 3 billion yuan of principal and interest will be repaid every year, and the debt repayment pressure is relatively high. Therefore, it is necessary to list and issue stocks to consolidate the current financial situation."

"Well, Lenovo's current assets are still relatively high compared to debt, and it is necessary to gradually reduce debt leverage." Lin Qi smiled, "Only after consolidation is made, the development steps will be more solid."

Although Lenovo spent 10 billion yuan to acquire Pangu learning machine series brands and assets with an annual revenue of 60 billion yuan, this also made Lenovo's annual revenue approach the 10 billion US dollar mark.

But in fact, this business has a profit margin focusing on low-end models, with oil pressing in the cracks of stones, and the profit is very low. Although it looks at the revenue of 60 billion yuan, in fact, the profit scale is less than 2 billion yuan.

Lenovo's acquisition of this asset can only be said to have gained market share and revenue that looks pretty beautiful. But in fact, the profit generated by this asset can just repay the interest on bank loans.

In essence, after Lenovo acquired it, it gained scale and face.

Pangu Computer Co., Ltd. sold this asset to Lenovo for 10 billion yuan, which optimized its own asset quality and accelerated the future product appearance and the development of the high-end market.

"It's almost here." Lin Qi nodded and said, "I support Lenovo's listing. It is not only conducive to Lenovo's own development, but also to the interests of shareholders. However, there is no need to be listed in Hong Kong, but in the A-share market."

"Listing in the Hong Kong stock market is more conducive to shaping an international brand image!" Liu Lenovo said hesitantly.

"What international brand image?" Lin Qi sneered, "The domestic market, now and in the future, will be the fastest and best market. If Lenovo wants to develop well in the future, its basic market can only rely on the domestic market, and overseas markets are just supplements. Listing in the Hong Kong market will not bring any additional benefits to Lenovo in addition to the convenience of financing. For example, domestic financial media will report more news about A-share companies, and invisibly, they will obtain free publicity advertisements, which will enhance the brand influence. Listing in Hong Kong stocks, sorry, for a long time in the future, domestic news media will rarely report Hong Kong stocks. Even Hong Kong stock listed companies such as HSBC, Cheung Kong Industrial, Hutchison Whampoa, and Hang Seng Bank, with such a large market value, do you see, how many news can be posted in China, and how many people are following?"

"Okay... let's make another plan!" Liu Lenovo was a little helpless. His personal tendency to go public overseas. If it was a few years later, if Chinese companies had a precedent for listing on the Nasdaq, I'm afraid that Liu Lenovo would want to enter the Nasdaq market.

In 1994, listing on the Hong Kong stock market was already considered to be relatively ahead. Many high-quality domestic companies also want to go to the Hong Kong stock market to list. After that, they will look for opportunities to see if they can be listed on the domestic A-share market again.

Historically, although Lenovo Group has not been successful, its return rate is actually relatively high for original shareholders. The yield before listing and after listing exceeds a thousand times. Considering only the performance after listing, it still creates a yield of more than a hundred times.

The reason why I chose to list on the Hong Kong stock market in 1994 was mainly because Lenovo's profits were not stable and did not meet the requirements of listing in the A-share market. Historically, in the early days, Lenovo did not have an advantage in hardware procurement costs, but it was a price war with foreign PC brands. Although it was cheaper to purchase hardware by reducing the chassis thickness, power supply, motherboard and other hardware, thereby offsetting the disadvantage that the purchase costs of CPU, memory, graphics cards and other hardware did not have an advantage.

The early Lenovo won the market mainly because it was cheap and cost-effective. Coupled with the construction of domestic after-sales teams, it had more advantages than overseas brands. Later, after becoming a large PC manufacturer, it gradually expanded and became a product that was high-priced and low-profile, fooling consumers.

Lenovo was criticized mainly because it was mainly because after picking up ibm's pc business in 2004, Lenovo's headquarters moved to the United States, which means that the company has essentially changed from a Chinese-funded enterprise to a US-funded enterprise. Lenovo's nature gradually changed. During the period when Lenovo's rapid growth and providing shareholders with higher returns, it was not acquiring ibm's pc business, and before picking up ibm's pc business. Acquisition of ibm's pc business seriously reduced Lenovo's return rate to shareholders.

Lenovo is essentially a sales company, and there is no need to say that it has technological content. Because Lenovo's main shareholders are Xinxingwen Electronics Group, the founding team of the Chinese Academy of Sciences and Lenovo. Even Lenovo still likes to pick up junk, but at least it still picks up backward production capacity eliminated by the new entrepreneurship system, rather than picking up junk from the United States.

Moreover, nearly half of Lenovo's bank loans were provided by Hang Seng Bank at an annual interest rate of 12.5%. This interest rate is already considered to be relatively low compared to domestic bank loan interest rates. In the 1990s, domestic bank loan interest rates were rarely lower than 15%.

On the one hand, in the early days of reform and opening up, domestic prices gradually turned to market prices, so inflation grew rapidly. In addition, at the beginning of reform and opening up, many companies did not pay much attention to credit and had a relatively high default rate. In order to cover the losses caused by default loans, the interest rate of genuine loans had to be raised.

The domestic interest rates in later generations gradually decreased, and to a greater extent, the credit system gradually improved. The default rates of enterprises and individuals were no longer as serious as those in the early days of reform and opening up. In addition, many commodities gradually developed from a comprehensive shortage to a comprehensive oversupply stage, so interest rates gradually entered a decline channel.

Lenovo's acquisition of Pangu Learning Computer Brand is also a company with a revenue scale of 3 billion yuan, and a giant with a revenue scale of 60 billion yuan. Moreover, after the merger, Lenovo's team was still the main focus.

With this feat, Lenovo actually brought greater political influence and reputation to Lenovo. Even Lenovo has entered the education market with the reputation accumulated by this asset.

At present, the importance of domestic computer education is almost second only to Chinese, mathematics and foreign countries, and has become the fourth most important course. Even the middle school entrance examination and college entrance examination are required. The biggest advantage of this policy is that domestic grassroots coders do not lack people.

Computers have been included in basic education for almost ten years, which is not only of great benefit to the software and hardware industries. Even some more traditional manufacturing industries have benefited a lot. For example, some simple CNC machine tool automation production lines do not even need to be introduced. Those who combine traditional industries with certain computer programming technology can start designing from simple, and gradually design more complex automation and intelligent production lines.

Overall, after the computer is included in basic education, the short-term benefit is even more important than mathematics, physics, chemistry and foreign languages. In the past, China lacked industrial talents and the most basic industrial technicians needed a foundation in mathematics, physics, and chemistry, so the status of mathematics, physics and chemistry was raised very high. After the reform and opening up, technological exchanges and imports and exports became the driving force for economic development. Therefore, although 95% of people did not need to master foreign languages, foreign languages ​​were popularized nationwide for the sake of the 5% foreign language talents. In essence, a very small number of people made foreign languages ​​useful, but most people proved one thing and learned another knowledge that could not be learned easily.

To a certain extent, learning good computers is more practical than proficiency in foreign languages. Of course, most people must not learn well. But the key is that having the talent to learn good is much more important to the contribution of productivity and innovation than learning foreign languages ​​for the whole nation.

Popularizing computers to the basic education stage is actually equivalent to preparing to integrate computer knowledge into more production and service fields in advance. Because many people may not necessarily be engaged in the computer industry after graduation, but they use the programming knowledge they may learn to improve the efficiency of their industry.

Basically, Lenovo's current business is more inclined to the field of education. It provides primary and secondary schools with learning computers that are configured between 600 and 2699 yuan.

As for universities and governments, they also recognize the latest flagship configuration of Pangu Computer Co., Ltd., for example, universities basically recognize Pangu 8th generation. In order to avoid being suspected of taking kickbacks during procurement, government departments also chose Pangu 8th generation. If the budget is small, they will choose Pangu 7th generation. No matter how bad the configuration is... Sorry, if it is worse, the computer will protest.

In general, Lenovo’s listing financing is mainly for the purpose of previous mergers and acquisitions. By increasing capital through listing, it can reduce debt leverage. Only then can Lenovo successfully digest this piece of cake and not choke to death due to indigestion.

Basically, Lenovo currently has only two options: one is to go public for financing, and the other is not to go public, and minority shareholders increase their capital.
Chapter completed!