Shanshan Holding Zheng Yonggang: Integration Of Industry And Finance To Escape From Sunset Industry

In the minds of many young people,

The image of chairman Zheng Yonggang is blurred.

Some forty or fifty year old people have some impression on him: "Oh, that's the suit."

What happened to him later? "

With the foreign men's wear brands entering the Chinese market one after another, the domestic brands such as Shanshan are becoming more and more vulnerable.

The picture shows Zheng Yonggang, chairman of Shanshan holding company.

I saw Zheng Yonggang for the first time in the executive suite of the Westin Hotel in Financial Street, Beijing.

He wore a dark blue Pullover and slacks, and looked like a casual uncle.

I dare say that as soon as he goes downstairs, he will soon be lost in the stream of people in Financial Street.

Yes, Zheng Yonggang no longer needs to.

First, brand endorsement. The focus of Shanshan stock exchange has shifted to new energy in recent years. In this almost To B industry, whether he is behind the scenes boss is not important enough to dress well.

A week later, I came to 600884.SH, a production base in Ningbo, where the change of fir was happening.

The original clothing production workshop has been gradually pformed into lithium-ion battery material, new energy vehicle battery, powertrain and vehicle production line.

Shan Shan has changed from a garment manufacturer to the world's largest producer of lithium ion materials. Now it is expanding into the new energy vehicle industry.

Of course, the clothing business, of course, is just moving to other places, and will soon be split from the A share listed companies and go to the H shares separately.

"As early as 1997, when China's clothing industry was the hottest, I had a premonition that the enterprise was dying. I would like to find the next industry with explosive growth. When I entered the lithium battery industry, 11 out of 10 people said I was crazy, but entrepreneurs were not ordinary people. Entrepreneurs look at the future."

Zheng Yonggang said that it was these early layout that pushed him to the present position.

He has planned three cycles for his career life, from clothing to lithium material industry is the first cycle, and the combination of industry and finance is the second cycle. Now the Chinese fir has been pregnant with third cycles, that is a story about modern service industry, including medical health, cultural tourism and commercial property market.

Since the establishment of Shanshan brand in 1989, although it has also been involved in investment banking business, Zheng Yonggang said he has never been divorced from industry, which is slightly different from the impression of Shanshan.

Of course, there is his fascination with industry and his cunning sensitivity to the external environment.

Zheng Yonggang said, "industry is the foundation of this country, but not all industries are, only those new and competitive industries have the future."

Zheng Yonggang said.

At the beginning of my communication with Zheng Yonggang, I felt a sense of oppression. He seemed to want to convey an emotion: "others laugh at me too insane, I laugh at others not to wear it". For example, when talking about the diversity of Shanshan holdings, he will feel that the more the explanation is more chaotic, the idea of separation of modern enterprise property rights and management rights is too much for many people.

Speaking of the first pition to the lithium battery industry, he attributed the entrepreneur's adventurous spirit to success.

Shan Shan has been developing for nearly 30 years. There is always praise and defamation and doubt. He probably won't be able to explain it to others.

According to the announcement of the 2016 earnings announcement, the net profit attributable to shareholders of Listed Companies in 2016 (excluding non recurring gains and losses) is expected to increase by 15%~45% over the same period last year.

This, of course, comes mainly from the lithium material industry, which only accounts for 1/10 of total revenue.

Up to now, Sugisugi Masagoku material production and sales volume of the world's first, negative artificial graphite production and sales first in the world, second in the world, five of the domestic electrolyte, is the world's largest lithium material supplier.

Shan Shan has also completed the pition from clothing to the new energy industry.

Everyone said, "this kid is betting right."

But 20 years ago, no one agreed with Zheng's idea.

Back to 1997, China has not yet joined the WTO, and the consumption demand of the Chinese people is still at a high speed. China's clothing market is still a national brand.

But Zheng Yonggang realized that sooner or later, the national market would be opened. Once opened, a large number of international brands will pour into the Chinese market, and Chinese brands will hardly compete with international brands.

"Because I often go abroad, this premonition has long existed."

Zheng Yonggang said that although the clothing industry is not declining, the Chinese garment industry is bound to usher in a recession.

Around 1999, Zheng Yonggang, who had been thinking about the pformation for two years, came into contact with a technology that excused him, the production technology of lithium battery anode materials.

At that time, China's anode material was only a 863 task undertaken by the Anshan Thermal Energy Research Institute, and there was still a long way from industrialization.

"I'm not a scientist, I don't know technology, but I can smell that it's the best thing in the world."

Zheng Yonggang decided to buy the people and technology of Anshan's thermal energy.

In fact, in 1999, Zheng Yonggang still had to wait 8 years before he could usher in the first outbreak of the lithium battery industry.

In the meantime, he not only promoted the industrialization of anode materials, but also developed cathode materials and electrolyte business.

"Of course, it is very difficult," Zheng Yonggang admitted. He also thought about selling the lithium material business, "but at that time, no one bought it."

Around 2005, the production base of Shanshan stock in Ningbo moved from the original Yinzhou District Shanshan industrial town to the remote Spring Spring Industrial Park, and the original plant area changed to commercial land.

Everyone knows that Yinzhou District's commercial land has great potential to appreciate at the later stage.

But Shan Shan did not retain the land, but chose to take the government's compensation for demolition. "There are still some financial pressures on that year."

Shanshan shares said.

The outbreak of global demand for lithium batteries was triggered by the launch of the first generation of Apple mobile phones in 2007.

Smart phones have led to the revolution of the entire 3C product, and the popularity of lithium batteries.

In 2008, Zhuang Wei became chairman of the Shanshan stock company, which coincided with the first dividend period of the lithium battery industry.

Since then, the lithium battery business has been written into the main business of Shanshan stock, and the proportion of garment business revenue has been decreasing year by year. Until 2013, the income of the lithium material business of Shanshan Group exceeded the clothing business.

Just as

Any industry will go from blank to surplus.

Since 2011, China's lithium cathode material production capacity has begun to overrun, and industry competition has intensified.

Fortunately, after 2014, the lithium battery industry ushered in second electric vehicles, and the whole demand market was growing by two digits per year.

However, China's manufacturing industry has a very typical herd characteristics. When someone sees that someone in the industry is making money, the latecomers will rush to the top.

But in the first half of 2016, the positive material business of Shanshan stock company achieved a great breakthrough. On the basis of an increase of 8% in revenue, the net profit attributable to shareholders of listed companies increased by 232% over the same period last year.

"Excess capacity is not absolute, and the structure of lithium battery is still in short supply."

Zhuang Wei said.

According to its introduction, in recent years, Shanshan stock has introduced high voltage density and high voltage in the cathode material of lithium ion batteries for 3C products, which many enterprises can not produce.

Zhuang Wei also told reporters an interesting thing: the profits of Shanshan stock positive materials increased, one of which is related to the rising price of lithium carbonate in the upper reaches. Because the positive materials of Chinese fir have strong market competitiveness, the price rise of raw materials can be exported and even the gross profit rate can be increased.

But in the relatively homogeneous business of electrolytes, Shanshan stock company could not carry up the price of upstream lithium fluoride six, and in 2015 it suffered a loss.

So the company decided to go upstream and control the risk of raw materials through industrial chain collaboration.

At the end of the next year, Shanshan Group held the giant Kay blue company by increasing capital, the latter has 20 thousand tons of electrolyte and 2000 tons of production capacity of six fluorolithium phosphate.

In February 2016, Shanshan energy company (835930) was listed on the new third board.

One question is, why not pack the whole lithium battery business on the market? Zheng Yonggang's answer is that both the positive and negative businesses of Shan Shan are very large. The single company can achieve net profit of 2 billion yuan in 5~8, and its valuation is 80 billion yuan ~1000 billion yuan.

Such a large company is not necessary to integrate into one.

Shanshan energy's revenue in the first half of 2016 was about 1 billion 100 million yuan, and its net profit was 100 million yuan.

Although there is still much room for imagination, the ceiling of the industry still exists.

"This industry is impossible to make hundreds of billions of scale," Zheng Yonggang said, to plan a longer-term development goal for Shanshan stock, we must extend the industrial chain.

In fact, many years ago, Zheng Yonggang once said that he hopes to get through every aspect of the lithium battery industry.

But Shanshan stock has never entered the core industry. "Because the core factory is our customer," Zhuang Wei said, if the Chinese fir is also doing the electric core, then how many core plants will purchase the lithium battery material of Shanshan? With the beginning of the electric vehicle market, Shanshan stock started in 2015, extending the industrial chain from the power battery PACK to the powertrain, the new energy vehicle, the energy storage and the new energy vehicle operation.

At first glance, the development of Shanshan shares is similar to that of Yin long. Apart from the difference in battery technology, both enterprises extend from the lithium battery industry to the new energy vehicle industry, and even the two vehicles are similar, mainly bus.

But the two companies are quite different. The way of thinking of Wei Yincang, chairman of silver long, is a typical product thinking. From producing lithium batteries to producing new energy vehicles, the company has to do the product well and then sell it.

This may be exactly where silver long attracts Dong Mingzhu, and Dong Mingzhu is also a complete product.

While introducing the new business of Shanshan stock, Zhuang Wei did not mention new energy vehicles at the beginning, but said two concepts, green travel and green energy.

In fact, everything happens around the supply chain.

For example, Shanshan stock itself does not produce batteries, but when it sells lithium-ion materials, it can also purchase electric cores from the electric power plant to produce power battery PACK and powertrain.

Shanshan sells powertrain to the vehicle factory, and purchases the vehicle from the vehicle factory.

At the end, Shanshan will build charging piles in various areas to realize the integrated operation of vehicle piles.

Up to now, Shanshan stock has implemented every item in the plan list.

In July 2015, the company entered into a joint venture with Taiwan Bada group and set up a powertrain company in Ningbo. In the same year, the company invested in Yancheng and Ningbo in Yancheng to build two PACK plants.

In October 2016, Shanshan stock company established a spruce wisdom company, which is engaged in the operation of new energy vehicles.

At present, the company has put 2000 new energy vehicles into the market, of which 1500 are time sharing rents, the other is net car, and there are 3000 charging piles.

In fact, in the whole green travel industry, the core of the green travel industry is the back-end operation business, which pushes the whole industry upstream and downstream interaction through its own cars and piling, creating space for every business link of Shanshan stock.

"We hope to restructure the value chain of the entire industry", Zhuang Wei said. "Now is not the era when you sit on a table," you have more points, I will be less ". Through the upstream and downstream, we can achieve more value.

In particular, the new energy vehicle industry is still in its infancy, and the social service system is not perfect. Therefore, enterprises need to think about systematic services.

It is easy to see that the above industry chain provides support for the supply chain finance.

In Zhuang Wei's view, the combination of industry and finance is the advantage of Shan Shan. In the stock system of Shanshan, there is a finance leasing company and a commercial factoring company, which can provide related business services for the upstream and downstream enterprises.

Of course, the position of Fu Yin financial leasing (Shenzhen) Limited is not only in the lithium power industry, but for four years since its establishment, Zhuang Wei believes that the development of the rich silver financial leasing company is a textbook style, and its split to H-share listing program is also advancing.

Compared with the smooth industrial chain, the new energy vehicle is like a branch rather than a main road.

Zhuang Wei also confirmed this point. He built a whole vehicle of Shanshan as an attempt under specific opportunities.

In January 2015, Ningbo Shanshan electric vehicle technology company was the main body of Shanshan Group. It was jointly established with the three party of Inner Mongolia first machinery group and North Ben Heavy Duty Truck Group to establish Inner Mongolia Qingshan Bus Co., Ltd.

The registered capital of the joint venture company is 29 million 500 thousand, of which 60% are fir, and the first group and the North run are 25% and 15% respectively.

Based on the mature experience of the North Ben car, the Qingshan bus got the order of Baotou bus company in the year, and realized the revenue of 180 million yuan.

In 2016, second production lines of Qingshan bus were put into operation, and two models were included in the list of subsidies for new energy vehicles.

Shanshan stock also built a special vehicle production line in Ningbo, mainly to produce logistics vehicles.

At the end of 2016, Shanshan stock company set up Jiangsu Shanshan Energy Management Co., Ltd. in Nanjing, and plans to invest 5 billion yuan in the next three years to develop the energy storage industry.

Energy storage business is to balance the power gap between peaks and troughs through energy storage batteries.

Because the energy efficiency requirements of energy storage batteries are lower than that of power batteries, decommissioned power batteries can be pformed into energy storage batteries, thus achieving the cascade utilization of lithium batteries.

Zhuang Wei said that when the energy storage business matures, Shanshan shares will apply for electricity sales licences.

Shanshan stock is playing a big game in the next set, so that 14 billion of the assets of the company can not be supported.

Before coming to the chairman of Shanshan Group, Zhuang Wei's main experience was in the venture capital circle. He designed a set of plans to allow these "XL yards" businesses to be in the "M code" shape of Shanshan stock.

"In fact, whether it's a network contract car, a time sharing rental car or a storage business, it can be packaged into a very good asset portfolio". Zhuang Wei expounded his ideas, such as energy storage business, and signed energy management agreements from the beginning and the local price adjustment through the crest trough. The annual yield is over ten percent, and the electricity market is rigid.

In the current shortage of assets, such assets are sought after by venture capital and others.

Not long ago, Zhuang Wei took the lead in the road, and many financial institutions expressed interest.

"Shanshan is a combination of industry and finance and has its own advantages. The group itself has investment banking business. We have a professional team to do this."

Zhuang Wei said.

In 2015, the clothing business of Shanshan, which has been losing money for many years, finally came to a profit.

In those days, the net profit of clothing business was 17 million 620 thousand yuan, and the situation improved further in 2016.

In the first half of this year, the clothing business of Shanshan achieved a profit of 23 million 430 thousand yuan, an increase of 263% over the same period last year.

But all this did not resist the fate of the spin off of the clothing business.

Although Shanshan stock was once the first Chinese apparel market, last year, the SFC has approved it to spin off its clothing business and go to the H-share market alone.

Separating the clothing business from the lithium battery business is something Zheng Yonggang has to do.

Because the main business is not clear, Shanshan stock is very difficult to price in the capital market.

"The price earnings ratio of clothing enterprises is 15 times that of new energy enterprises, and the price earnings ratio is 50 times.

This should be annoyed. For a long time, Zheng Yonggang's price earnings ratio is 20 times.

It should be noted that the garment business turns into a profit and is not brought about by business increments, but rather by closing some inefficient and inefficient operation companies.

Shan Shan clothing business once expanded many brands, but did not start the market popularity, for a long time is the company's burden.

At present, there are mainly two brands of Shanshan clothing, one is the "FIRs" with a history of more than 20 years, and the other is the fast fashion brand "SHANSHAN" registered in October 2015.

For the Shanshan holding group, whether the scale of clothing business or profits are insignificant, why not directly pfer or turn off? "After all, Shan Shan started from making clothes. After so many years, everyone has feelings for the clothing business". Zheng Yonggang said, "well, the clothing business is still making money. Why do you kill it? If it is not angry, it will be killed again."

This sounds a bit cruel, but in Zheng Yonggang's view, any industry has a cyclical law. The clothing industry has gone through its cycle. The lithium material industry has gone through 20 years of climbing from hatching up to now, and now it arrives at a comfortable time. But such a peak period may only be 8~10 years, and the next is still downhill.

"When the industry is good, I am already preparing for the next cycle. It is not good to wait here. I have already got up."

Zheng Yonggang said he selected the modern service industry for the third cycle, and believed that medical health and cultural tourism had a bright future.

Since 2011, Shanshan has been building and operating orlies in various parts of the country. Currently, three enterprises have been opened and two are in preparation.

At the beginning of 2015, Shanshan holdings entered the medical industry. In early 2017, the Shanghai Jun Kang Hospital, which was built by Shanshan holdings, will be put into operation. This is a comprehensive hospital featuring minimally invasive surgery and day surgery center.

Also in 2015, Shanshan and Turpan signed the agreement on tourism investment cooperation. Shanshan plans to invest 3 billion yuan to upgrade and pform Turpan scenic spot.

At least for now, Zheng Yonggang did not set boundaries for the future. He may still invest in other industries.

This is going back to the original question. As a founder, how can he balance his energies in these new industries? Zheng Yonggang feels that these worries are not worth mentioning, because he has fully delegating power to the management of various subsidiaries. For example, in 2016, he dedicated the flag raising ceremony to the Zhuang Wei company.

In order to encourage the trader, we have implemented the hierarchical Partnership Scheme in the Shanshan holding system, and achieved the consistency of the management interests of the company through different levels of partnership.

Speaking of the flag raising, Zhou Xin, chairman of E-House China, also did in 2016. It is said that Zheng Zhou's two people are friends in a circle, and two people also won the annual economic personage award in 2016.

From both of them, I can see a peculiar temperament of businessmen from Jiangsu, Zhejiang and Shanghai, who have the sense of freedom to enter the WTO and have a sense of freedom from "leaves and leaves".

Zheng Yonggang, who is sixty years old this year, has spent almost the same time with him in the sea of business. In part, because of the failure of a timely pformation, enterprises still remain at a small scale. These can be called pactions. Some of them are very close to government officials. They are rich and falling. These are called pactions. But Zheng Yonggang has to do three cycles, which should be considered a business.

Speaking of the way of business, Zheng Yonggang was most excited, with more movements and more facial expressions. "I can't talk like XX, nor do I like XX." Zheng Yonggang said he used to be alone, less said and done, and respected government officials, but he would not go too close to officials.

In 2016, Hurun's China rich list, Zheng Yonggang ranked 366 in 9 billion yuan.

"My life motto is to be an outstanding person outside the world."

Zheng Yonggang said he should not lose himself in this secular world.