I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 262 Chapter 083-084: Do you need to raise a round of capital before going public? (Two chapters in total)
Just now, Gao Huaijun was more likely to have an idea than a sudden idea.

He is now involved in the electronic technology industry and the automobile industry, but now he has reached a critical moment.

Cars, mobile phones, chips, artificial intelligence, each of these technologies requires money to research and develop, and each of them requires long-term burning of money!
And now the extra money gained in 08 has been spent to a great extent.

Nowadays, Hillhouse Group’s cash flow is becoming increasingly tight. Although there are products like Nova to stabilize cash flow, the shelves are laid out so quickly, and the R&D strength is not much worse than that of Zhongwei. It is completely in an all-in situation. in state.

And until Gao Huaijun's information gap advantage disappears, it is impossible for him to shrink his front.

Therefore, taking certain actions in the financial market, getting in touch with capital, and understanding the entire capital market and cooperating with more capital are the core actions that Hillhouse Group will take next.

Although Tang Lu, who was sitting next to him, did not understand electronic technology or cars, as a professional financier who had been in the financial industry all his life, he also saw that Hillhouse Group was very cautious about financing. After raising two rounds of capital, There was no more movement.

As for the newly opened tracks, cars, chips, batteries, artificial intelligence, etc., they simply do not raise any financing at all. They mainly rely on their own funds and the bank acceptance bills issued for them by Xizhou Rural Commercial Bank to support the core capital flow.

In his opinion, Gao Huaijun's choice is too difficult, and holding too many equity shares in his hands at the same time is not a healthy model.

Whether it is China or foreign countries, there are many cases where the self-owned equity has been reduced to less than 20% after multiple rounds of financing.

As for Gao Huaijun, the entire group's shareholding still exceeds 80%, which can be said to be completely unheard of.

Many start-up companies raise three rounds of financing a year, one at the beginning of the year, one in the middle of the year, and another at the end of the year.

Come out with a C round, C, C+, C++!

Hillhouse is not one of those ordinary companies that are precarious. It’s really puzzling that they actually come to play like this.

Concentrated ownership means you bear your own risks.

Spreading equity means sharing risks!

Now, Hillhouse Group has reached a very important crossroads, and he also wants to know what Hillhouse thinks about the future.

As for the Xizhou Rural Commercial Bank where he works, as a flank, there may be a fortune waiting for him.

It’s exciting just thinking about it!

Gao Huaijun did not ponder for too long. He replied, "Xicheng is too small now, and Hillhouse Group cannot put all its eggs in one basket. We have spent a lot of money on the first phase of the R&D center in Magic City, so We will gradually place some of our R&D personnel in Magic City!"

"For example, the artificial intelligence BU will all be moved to Magic City, and most of the chips will be moved to Magic City. Automobile and electronic technology will move part of the business groups there. Half of Hillhouse Group will gradually be there in the next five years. R&D team.”

"Under such a deal, I naturally have the ability to bargain with the Magic City. As for what conditions are required, I didn't think about it at first, but now if Xizhou Rural Commercial Bank enters the Magic City as an opportunity, I think there will be a problem Not big! At least in the devil's Hillhouse Industrial Park, I can definitely set up a branch for you!"

Gao Huaijun calmed down and said frankly.

Now the first phase of the Hillhouse Industrial Park in Shanghai has been completed, and the early employees have begun to relocate.

Although the leaders of Xicheng are trying every means to persuade them to stay, Hillhouse will follow the footsteps of later generations and carry out a diversified layout of R&D centers, which will not change.

The Magic City is just the first step. In the later stage, Jiangcheng, Chang'an, Rongcheng, an undetermined fixed point in the Zhujiang River, and the Imperial City, five places, and 1-2 foreign cities will set up Hillhouse's R&D sub-centers.

Just like many talents don't want to come to Xicheng, many talents also want to stay in their hometown.

Although the scale of Hillhouse continues to grow, the scale of talent it requires also continues to grow.

It's like building a ship.

If you build a small canoe, maybe one or two people can build it in a few days.

And what if you were building an aircraft carrier?
The design drawings of the Wageliang aircraft carrier alone weigh a full 10 tons, and this does not include the drawings of weapons and core components. The complete version weighs 20 tons!
The feeling of being piled up from the floor to the roof in a warehouse is shocking.

Just this thing, if you don’t have tens of thousands of engineers to draw a blueprint, just a few people can’t draw it until they die!
And this thing doesn’t just need to be drawn.

Each part also needs to be produced with processing drawings. If you don't have experience at the beginning and just process it according to the drawings, the final assembly may not be suitable. After the aircraft carrier is assembled, continuous testing is required. The cost during this period is very large, in terms of manpower, material and financial resources.

The same is true for Hillhouse's several BUs. Chip R&D is getting smaller and smaller and more complex. The same is true for car design and artificial intelligence.

Gao Huaijun's golden finger can only point out the direction, but it is just a direction.

Industrial systems are too complex. If you asked him to roll out a 5-nanometer chip by hand, he wouldn't be able to do it.

Therefore, in the ever-expanding Hillhouse R&D Center, it is a very good choice to set up different R&D centers according to local conditions.

When Tang Lu heard what Gao Huaijun said, he couldn't help but be surprised and had mixed emotions.

Hillhouse's relocation to the Magic City is not a secret in Xicheng.

In the center of Xicheng, the housing price of more than 1 square meters per square meter, just like the housing prices in the Songshan Lake area in later generations, is mainly supported by Hillhouse's group of highly paid R&D personnel.

Whether this group of people will be relocated now, or all of them, let alone the people of Xicheng, even the leaders of Xicheng dare not guarantee what will happen. The key to the matter lies in what Gao Huaijun thinks. .

And now, the latest thoughts finally came out of his mouth.

If this idea leaks out to Xicheng's real estate market, it would be easy to drop housing prices by 20%.

Originally, the current housing prices in Xicheng were higher than those in downtown Suzhou. Once this imbalance was broken, it would be a matter of course for the bubble to be squeezed out.

However, he was also secretly frightened by Gao Huaijun's influence on the Magic City!
The relocation of Hillhouse's R&D personnel, combined, at least tens of thousands of people will have to move there, and they will continue to recruit employees there. For further development, they can definitely build another small town in Qingpu. That would be incredible. ! In China, which technology company now has the confidence and strength to come up with this thing?
【Chapter 84】

"So, Xicheng Rural Commercial Bank needs to cooperate with Hillhouse Group's expansion strategy..." Tang Lubala opened his mouth and said immediately.

Gao Huaijun nodded with satisfaction and said with a smile, "Xicheng Rural Commercial Bank, before 2011, cooperated well with Hillhouse Group. Hillhouse also needs such a regional bank to help Hillhouse stabilize its cash flow. ."

"But Xicheng Rural Commercial Bank is still too small now! I don't have the corresponding grasp at the financial level. Whether it is cooperation with JPMorgan Chase or Gao Sheng, it is easy for them to lead me by the nose. This is not good for Gao Lian." It’s very disadvantageous!”

"So there is no need to worry about the license issue you mentioned."

"I will say hello to the leader of the city. Hillhouse supports the city so strongly and he knows it. The problem is not that big."

"And our Series B was done by JPMorgan Chase. Now they have been with us. When the time comes, I will let them help you build some business." At this point, Gao Huaijun smiled strangely.

For an investment bank to help another bank build its investment banking business is unheard of!
You, Hillhouse Company, think too highly of yourself?
Tang Lu felt that what he heard today refreshed his outlook. He had been engaged in financial business for most of his life, but it was not as exciting as today. "Isn't this matter inappropriate?"

"Now Hillhouse is in the pre-IPO stage. It is expected that at the end of this year and the beginning of next year, it will be possible to spin off Hillhouse Technology and list it first. However, the specific leading investment bank has not yet been selected. Their subcontracting combination It’s not certain that they will have a fight under such conditions.”

"The IPO company selected by Hillhouse will definitely be a big investment bank, or a company with a XX background like CICC!"

"Under this premise, Citibank now holds 10% of Hillhouse's shares, but as a second-tier leader, they do not have a good priority. If I ask them to lead your team, there is a high probability that I agree, don’t be nervous, I’m taking a long-term view, Xizhou Rural Commercial Bank is not ready to use it yet!”

Gao Huaijun said with a smile while drinking tea.

Tang Lu on the side looked at him dumbfounded.

Gao Huaijun dared to say that the arrangements for these big banks were clear.

Hillhouse has developed to this level, and Hillhouse is no longer the original electric fan factory!

At the current level of Hillhouse, it has been able to break away from the shackles of industry and begin to develop towards a system of dual control of entities and finance.

In fact, in the previous life, many Chinese companies would develop like this, such as Alibaba controlled WeBank, Forever Real Estate controlled Shengjing Bank, etc.

However, the state has been very cautious about private companies controlling banks.

In fact, the biggest risk for private banks is the loss of depositors' deposits after bankruptcy. In reality, after some private enterprises become major shareholders of banks, it is true that they will hollow out the banks, leading to bank risks or even bankruptcy.

For example, in Gao Huaijun's previous life, Baoshang Bank officially entered bankruptcy proceedings in 2020, a different time and space. The fundamental reason is that since 2005, Baoshang Bank's major shareholder Tomorrow Group has registered 209 shell companies.

Baoshang Bank was gradually "emptied out" through a large number of illegal related transactions, fund guarantees, and capital occupation. Over the past 15 years, the major shareholder "Tomorrow Department" has robbed bank credit funds of up to 1560 billion yuan. In the end, all of them became non-performing loans of the bank, with annual interest even reaching tens of billions of yuan, causing Baoshang Bank to have serious capital problems. Insolvency and serious credit risk.

However, now in 2012, the banking industry is still gradually liberalizing private capital, and Gao Huaijun must be prepared for this in advance.

Through the glove of the bank, he will not engage in any despicable means such as improper related transactions, capital guarantees, or capital occupation.

The key is that he wants this bank to grow with Hillhouse, continue to increase Hillhouse's shares in it, and then become a large and influential bank in the world!
In terms of financing, debt financing, and external capital turnover, it can be conveniently used for oneself.

In this first step, compared with China, the industry matrix is ​​more obvious.

"I understand! Mr. Gao hopes that Xizhou Rural Commercial Bank will become a large national bank! But has Mr. Gao considered raising another round of capital before going public?" Tang Lu said with a dumb smile after being stunned for a moment.

However, he suddenly had a sense of absurdity. This sense of absurdity came from the fact that he was trying to draw a pie by holding it up high!

However, after being stunned, he somehow felt that what Gao Huaijun said seemed to be enforceable.

Hillhouse can develop from an electric fan factory to what it is now, so what can't be achieved?
Feelings, Gao Huaijun must be chasing the richest man in China!
This ambition is really too big!
Can his strength support his ambition?

Suddenly, he was quite glad that Gao Huaijun didn't like his daughter anymore.

This man is less than 30 years old, which is the age when he is very ambitious. If his daughter follows him, she doesn’t know how she will be bullied!
Although he also wants such a son-in-law, his strength does not allow it!

Understand with ease, become with ease, transcend with ease.

It’s really not that easy for Ziru, OK brother.

. . . . . .

Gao Huaijun went directly to the company after lunch at Tang Lu's house. On the way to the company, he was thinking about the suggestions and reminders Tang Lu gave him.

Before discussing his listing plan with Tang Lu, Gao Huaijun had always had a slightly pretentious ambition, that is, Hillhouse Technology would not have Series C and Series D after Series B, and would go public directly!
But now that I think about it, my idea does seem naive at the capital level.

Going public is indeed a very attractive thing, but the number of financings before going public was small and the shares held by oneself were relatively large. In fact, the significance is not as great as imagined.

The less equity that is given out means that there are fewer people with common interests. When you encounter something, there are not many people who can help you.

Now that Hillhouse Technology is listed, although there are many major investment banks who want to come in and lead the way, they will not use too many of their own resources. They will help protect the market after the listing, and help build momentum and introduce suitable resources before the listing.

These are actually very important resources for Hillhouse in the next stage.

Especially for the incident in 2019, there is a question mark as to whether Hillhouse will be involved!

Therefore, this listing must be planned in advance for the event 7 years from now!

(End of this chapter)