Sometimes the responsibility for the problem lies not in the central government nor in the middle but in the central local government.

Or some people say that this statement is untenable, what does the business of enterprises have to do with local governments? In fact, it is precisely because local governments are pursuing political achievements. When comprehensively promoting enterprise restructuring, if a large enterprise such as Yili does not take any action, it means that the work of the local government is not done well.

But in fact, the local governments are concerned about in addition to political achievements. Therefore, whether there are any shady stories or tricks in how to reform Yili’s reform is not what they care about.

But if Yili does not restructure, then there is a lack of work in the local government and it will have to bear certain responsibilities.

Yili Co., Ltd.'s predecessor was the Hongqi Dairy Factory in Hohhot City, renamed Huimin Dairy Food Processing Factory. In 1992, the shares were reorganized and 17.15 million public shares were issued in September 1995 and listed in 1996.

Zheng Junhuai has served as the factory director, the chief factory director, chairman and president of Fei Co., Ltd.

Like most of China's first-generation entrepreneurs, Yili shares can develop from an Inner Mongolia dairy processing factory to the undisputed boss of China's dairy industry. It is indispensable to say that without Zheng Junhuai, there would be no Yili shares.

Yili Co., Ltd. has always been a representative of high-performance stocks.

According to the current quarterly report, Yili's main business income in the first half of the year was 4.5 billion yuan, which is 250 million yuan. Yili's total share capital was 1.9 billion yuan. The performance of a single stock has reached 6.4 cents. What is more valuable is that such performance is achieved under the continuous transfer and increased allocation of equity capital. Now Yili's circulating shares are 250 million yuan, which has expanded nearly fifteen times compared with the beginning of listing.

Yili shares are not only a high-performance stock, but also a blue-chip stock that can bring solid returns to investors.

Open the old Yili Shares and you can clearly see that since Yili Shares went public, Yili Shares has not stopped cash dividends even when the plan to get ten is implemented.

Although Yili's funds through share allocation and refinancing after listing are not a decimal amount, the move to insist on giving investors cash dividends every year can be said to be unique in the listing, and the amount of cash dividends is not a decimal amount. Investors who invest in Yili shares have indeed received generous returns.

All of this shows that Zheng Junhuai is a business person and a chairman who can bring returns to investors. This is fundamentally different from other listed companies that play with capital operation methods.

But now Zheng Junhuai and his executive team are facing two charges of false performance and misappropriation of funds. These two charges have made Zheng Junhuai's halo worthless.

The misappropriation of funds does not mean that the direct consequence of treasury bond investment is to expose the illegal holdings of Yili's senior executives.

At the end of 1999, Yili Co., Ltd. established Huashi Trading Company to accept the transfer of legal person shares in order to solve the problem of management's shareholding.

This year, he increased his capital and held more than 8.4 million shares of the company's legal person shares in the name of Yili's senior management. He became the fifth largest shareholder of Yili Co., Ltd. several days later, Huashi Trading's shares were transferred to Hohhot Qiwu Investment Company, which is used for management incentives. Although Yili's clarification announcement stated that the slowness of the transfer was because the CSRC issued a normative opinion on the transfer of non-circulating shares of listed companies, Yili Co., Ltd. did not explain where the 15 million yuan acquisition fund came from.

Although Yili is still a popular brand from the perspective of consumer market, the competition in the dairy market has become fierce. This is already very different from the era when Yili became famous. Yili's profit margin will definitely drop. In fact, Yili has never denied it.

Although Mengniu boss Menggensheng, who left Yili, was originally Yili's sales general manager Mengniu's growth and expansion energy are not inferior to Yili's peak period. Especially after Mengniu went public, she stood on the same starting line as Yili. The market channels of both base companies flying production lines are extremely similar. Mengniu's squeeze on Yili can be imagined.

Yili Co., Ltd. has another hidden pain that has made the Beijing news industry unforgettable. It is to use public relations companies to destroy the quality and safety of Mengniu products and put almost all the so-called mainstream media into a condom. Although this incident has no direct connection with performance, it can be seen that Yili's market competition has reached the point where it is extremely omnipotent Zheng Junhuai's mentality has undergone major changes.

Some people say that Zheng Junhuai caused trouble at this point, but Fan Wubing analyzed that although it seemed that someone was a condom, Zheng Jun's arms were still his ambush. After all, with a selfish personality, he would not continue to be noble. After all, it is still illegal to use public services for personal gain, and it is the same if it is placed abroad.

Yi is not terrible and has uneven distribution in the process. The mine was blasted by a blew up.

Yang Jian, an independent director who parted ways with Zheng Junhuai, revealed the core of the IO incident in one sentence. This is not the real meaning. It is not for the "help of the management. If it is for the entire management to implement it because of hard work, we will not rebel. But if it is just for one person or two people, it will not be of any benefit to Yili."

As the investigation deepens, a financial trust company unilaterally holds 14% of Yili's shares, just in the vortex core of the Yi incident. A lot of suspicious eyes are pointing to the trust company. There are reports that this trust company is Zheng Junhuai's shareholder of Pengo. If such accusation is true, then the troubles of this trust company may not be whether it is known or not. They have actually helped Zheng Junhuai launder money.

No matter how much funds Zheng Junhuai misappropriated, there is no doubt that most of the equity of this fund belongs to the circulating shareholders. Because Yili shares raised a total of 800 million yuan, Yili's corporate governance structure is not the only one-management management model. The company's shareholders, especially the circulating shareholders, have the largest contribution and the largest number of losses. The lack of spokespersons lost their voice. It was fully demonstrated in the Yili Pengo Incident.

Perhaps the company's new management and local government can claim to be protecting investors' rights. However, in fact, if the corporate governance structure does not fundamentally adjust, the new company's management will sooner or later become more enthusiastic. Only by managing their own money will it be the most attentive. However, the real money of Yili circulating shareholders may continue to be helplessly entrusted to others to protect.

Fan Wubing has always been very concerned about Yilixu. He often asks about the progress of the case. After Fan Heng’s latest report, he will also inform his son of his son and ask him to make a reference. With the in-depth observation of the father and son, there are still many problems here.

As bystanders, the biggest question for the father and son of Fan, is that Zheng Junhuai, a well-known entrepreneur with a crown of sacrifice, is expected to be elected as a member of the next Central Committee. Why is it so anxious? He took risks and broke the law.

In fact, this is related to Mengniu. Niu Gensheng was exiled and resolutely left Yili. After resolutely leaving Yili, Mengniu Dairy has emerged in a sudden force over the past few years and is getting closer and closer to Yili. Especially this year, Mengniu Gong has further improved after entering foreign capital. It is no exaggeration to say that Mengniu, which is tying foreign capital, is the only real opponent that can threaten Yili's survival.

Zheng Junhuai, a well-known entrepreneur who has been in the dairy industry for 20 years, felt fear of failure. Why? Because he knew best that although Yili was firmly on the top spot in the industry, it had a fatal weakness. The capital structure acquisition of Yili only requires up to 600 million yuan in cash.

Niu Gensheng was exiled by Zheng Junhuai from Yili's heart. It was difficult to resolve. Niu Gensheng had long been determined to annex Yili. Niu Gensheng once publicly said that sooner or later Mengniu and Yili would be together enough to show that they did not conceal their intention to accept Yili.

Since Mengniu founded and occupied the market, Yili's stock price has dropped sharply. Yili's stock price has been stagnant since its listing. However, after Mengniu was founded, Yili's stock price underperformed the market index. This reflects the threat of Yili when investors in Weichang were worried about Mengniu.

This year, Mengniu received more than 60 million investments from foreign capital. There is no doubt that if Mengniu successfully acquires Yili, Zheng Junhuai and Yili's management are very likely to be expelled from Yili and laid off to make a living.

In this way, Zheng Junhuai and others could not help but feel scared.

If Mengniu acquires Yili as a bystander, no matter who wins or loses, it will be beneficial to China Dairy Exhibition, but for Zheng Junhuai personally, it will be a serious question.

It's right.

As for the so-called betting agreement between Mengniu and foreign capital, the foreign capital system has no risk at all. They are more like drivers sitting in the driver's seat. They are easily driven by a ox cart and the shaft is the Mengniu management who is fighting for the reward of tens of millions of shares a year later.

But Mengniu, which has an annual sales of only 4 billion yuan, can achieve a leap of 12 billion yuan in one year? Acquiring other powerful competitors and directly integrating other people's sales seems to be the only way to win.

The purchase of Yili is naturally very cost-effective. It can be eaten up to 600 million yuan for Yili's annual sales of nearly 10 billion yuan, with an annual net profit of nearly 100 million yuan. Moreover, the outstanding stocks you get can still be mortgaged or cashed at any time. Who is this good thing the most beneficial to?

Is there anyone else who is most powerful and impulsive?

By analyzing the profit and loss of the foreign capital system and Niu Gensheng in the operation of Mengniu Capital, Fan Wubing has a problem. In every step of Mengniu's listing, Niu Gensheng and his management team are always in a passive situation. The amount of profits that foreign capital will get from the stocks of listed companies is undoubtedly a drop in the bucket compared to the equity plan they reward Niu Gensheng and other management teams.

There is no doubt that the relationship between the Mengniu Group and the foreign capital group cannot be described as the word "strong alliance" and is more appropriate to be severely damaged.

Faced with the future situation of China's dairy industry, Fan Wubing also has this concern. After all, sales volume from 4 billion to 12 billion means that it must reach a height that no one has ever reached in the Chinese dairy industry. This will inevitably lead to a milk source war, price war, etc. The recent price war between Mengniu and Yili, which has also reflected that this deep contradiction and vicious competition has begun to affect Mengniu's performance growth.

The other protagonist of the story, Zheng Junhuai, is also in a passive position in this game. If he continues to maintain the noble character of a state-owned entrepreneur and does not consider using public funds, the cost of Mengniu's acquisition of Yili is very small. Only by acquiring 28 million state shares held by local localities in Hohhot, Mengniu can easily gain control.

Zheng Junhuai must protect himself. He has always been a state-owned enterprise cadre who has always had a fortune of hundreds of millions of yuan and he can only take the company's public funds.

Either sit and wait for death or go all out, Zheng Junhuai chose the latter.

In this sense, under the general situation of lack of financial tools, Chinese entrepreneurs have no winners in the game between Niu Gensheng, who helped multinational capital to complete the layout of the country at the expense of corporate ownership or Zheng Junhuai, who used company public funds to invest.

After reading this information, Fan Wubing couldn't help but sigh and then said, "There are probably the remaining long-standing enterprises in China that cannot be restructured. What I need most is cash flow support or I should consider setting up an investment company and selectively helping entrepreneurs. This is better than investing in foreign capital for a little money and accepting the most demanding spare parts, because I have to raise the funds. The funds needed are not hesitant to take risks and go to prison."

Or this is a good idea. After all, the remaining large state-owned enterprises want to complete Peng. They can only use the investment company model. However, there are indeed few large capitals in China who are willing to do this, and even if there are, the conditions will be very harsh. I personally agree with you." Fan Hengren said.

However, it is relatively simple to say that if you want to formally handle this matter, you still need some effort. For example, it is very important to straighten out this relationship from official channels.
Chapter completed!