Category: Money Tips Date: 2006-08-07
Too proud of the Li-yan is one step close to the target.
The rich just Hoogewerf standings of 100 attention of the private entrepreneurs, and now has been remarkable reason: this year has been unprecedented control of cross-boundary convertible and the mainland private enterprises listed overseas almost stagnant, he business has to "fake red chip" approach, will be November 3 at the Hong Kong Stock Exchange main board listing.
"Chinese Dragon public from today until 27th of this month a public offering, everything is going well." Chinese Dragon Engineering Holdings Ltd. (3339.HK) securities Minister Chen October 24 evening, told reporters.
Chinese Dragon Engineering will issue 300 million shares, raising 473 million fund, of which 270 million shares were distributed to the international offering, accounting for 90% of the total issued share capital of the remaining 3000 million public offering in Hong Kong, over-allotment option for 4500 shares, IPO price 1.51-1.94 Hong Kong dollars.
In the capital market has taken an important step, to navigate the wealth of Li-yan will undoubtedly once again to achieve geometric growth.
Beats Li Yan and the rapid accumulation of wealth has always mystified people.
Chinese Dragon is an authentic work of private enterprises, registered in the Cayman Islands, for the so-called "fake red chip", was founded by Li Yan and his wife, a wholly-owned holding, the two were holding 55% and 45%.
Known as China's third largest wheel loader manufacturer in China Dragon workers, respectively, and the Shanghai Songjiang Industrial Zone, Longyan City in Fujian Province as a production base, the main enterprises Long Engineering (Shanghai) Machinery Manufacturing Co., Ltd., Long Engineering (Shanghai) Bridge Box Co., Ltd., Long Engineering (Fujian) Machinery Co., Ltd. and Fujian Longyan Long Engineering Machinery Accessories Co., Ltd., a wholly owned subsidiary.
Public information, Li Yan was founded in 1993, Longyan, Fujian engineering machinery plant, the annual production of loaders only 80 units, more than 10 years of sales growth in the size of an average of 56% in 2000 among the top three Chinese loader industry, production and marketing in 2003 more than 8,000 units, sales reached 2.63 billion yuan.
"It is estimated to reach 15000 units sold, net profit will reach 225 million." Chinese Dragon Engineering Chairman of the Board, said Li Xin Yan.
Snowball-like pace of development of this course, are staggering, not to mention the Chinese dragon has been working with Li Yan-owned approach fission.
In the recently published Hoogewerf 2005 100 Rich standings, Li Yan to 1.7 billion in total assets ranked 97. According to this assessment, Li Yan, 12 years ago into the loader manufacturing 16 million yuan of investment, access to more than 100-fold return.
But if the re-100 Rich List ranking, Li-yan's ranking will undoubtedly be much earlier. According to the Chinese Dragon workers listing sponsor Cazenove Asia studies, refer to the mainland A shares Xugongkeji, Liujiang machinery and other similar enterprises, the Chinese dragon in the public valuation of between 1.69 billion to 2.1 billion yuan, equivalent to forecast price-earnings ratio 8 to 10 times.
Li Yan was born in 1951, Shanghang County, Longyan City in Fujian Province before Town Ridge village, saying that this youth served in the workers, cadres of the rich, of the last century to 80 years of international trade at the Hong Kong fortune.
"Li-yen's first pot of gold from small-scale cement plant operations, he came back from Hong Kong after the home creates a mini-cement plant, when production of cement is the windfall profits." Longyan City, a source disclosed.
In 1993, Li-yan the rapid development of China's construction industry to seize the opportunity to sell cement, investment 16 million yuan into the loader manufacturing industry. In October 2000, Li Yan a "strategic shift" and will "tentacles" out into Shanghai. Since then, the Chinese Dragon workers began to aggressively expand, and Liugong, Xiagong sharing of the loaders, road rollers and so most of the market, while the Chinese Dragon workers are the only three "young" private enterprises.
In recent years, working through the homemade Chinese Dragon, merger, purchase, etc., successively in Fujian, Shanghai, Hong Kong, Jiangxi, Jiangsu and other places have more than 10 wholly-owned subsidiary. 2004 Li-Yan into the power sector, holders of Hong Kong-listed power company Weichai Power (2338.HK) 10% of the shares.
Family business In China's construction machinery industry, the Chinese dragon work is undoubtedly the most legendary one. But now, Li-yan is a family constantly copied this pattern.
In fact, China loader production and sales companies in the top 10, in addition to working outside of the Chinese dragon, some enterprises are still more or less responsible for the planned economy period "enterprise-run society," welfare functions, a rather heavy burden to society, while the Chinese Dragon workers have no such confusion.
However, the growth of the Chinese dragon work is based on high debt ratio. Statistics show that as at the end of June this year, the Chinese dragon and workers as the number of sales agents to provide 162 million guaranteed loans due within one year 590 million yuan. Chinese Dragon workers and therefore in the prospectus said that the funds raised mainly used to develop products, expand production capacity and repay the loan.
"At present the company's debt ratio to maintain 70% to 80%, debt ratio after the listing will be substantially lowered to 40%." Chinese Dragon Feng Wanru, said vice president of engineering.
Faced with such a high debt ratios, the Chinese dragon, CEO Qiu Debo workers explained to the investors believe that the characteristics of the industry, mainly due to greater demand for liquidity, "This will not affect the company's gross margins, our objective is to maintain the level of 20% gross margins, Since 2001, gross margins have been stable at 19-20%. "
The most critical is the development direction of Chinese dragon seems to work is to become the new Li-yan greater family business, even if the public become a public company did not change signs.
A hidden fact is that Li-yan according to their own circumstances of families have been identified in three of their development plans, Li Yan-owned enterprises in accordance with the proportion of their children with the two companies a combination of separately by the three siblings to be responsible.
According to insiders, the current pattern of Chinese dragon workers, in addition to Li Yan, the eldest son in charge of its Real Estate Development Co., Ltd., Wuxi Long and Long Engineering Engineering (Shanghai) Machinery Components Co., Ltd., as chairman; second son is in Jiangxi Province Takayasu City is responsible for Engineering, Jiangxi Gear Co., Ltd. and Jiangxi Long Long Engineering Machinery Co., Ltd.; little daughter as Long Engineering (Shanghai) Co., Ltd. and Long Hydraulic Engineering (Shanghai) foundry company's chairman.
"Li-yan's goal is to build business empires of their own family." Insider.
In the market to ease debt pressure, the Chinese dragon is also working fetal movement into a new round of expansion.
But the question is, has been with high debt ratios, and obtained a family-owned, high-growth Chinese dragon workers, whether their existing successful models of the future is still undefeated secret yet to be tested.
