At this time, Hua Xia's basic idea for transforming commercial banks is the "three-step" approach of "financial restructuring - introducing foreign capital - public listing".
The first link focuses on "blood transfusion", and the last two links focus on "blood production". We hope to establish a standardized corporate governance structure under the premise of introducing foreign capital.
The restructuring and investment attraction of Bank of Communications is a complete embodiment of this idea.
As early as 2001, the People's Bank of China approved Bank of Communications to introduce overseas strategic investors through the "Reply of the General Office of the People's Bank of China on Foreign Investment in Bank of Communications".
Since 2001, Bank of Communications first hired Tianjian Xingye Appraisal Company of Yanjing to evaluate its own assets. It can be said that this is the most thorough liquidation and capital verification since the reorganization of Bank of Communications.
Afterwards, PricewaterhouseCoopers was hired to audit Tianjian's assessment. Almost at the same time, Bank of Communications hired Goldman Sachs as an investment consultant to design a comprehensive reform plan for the bank.
On June 14, the State Council formally approved the overall plan for deepening the shareholding reform of Bank of Communications and agreed to Bank of Communications' implementation of financial restructuring and other reform measures.
In accordance with the plan approved by the State Council, with the support of relevant Huaxia departments, Bank of Communications will first concentrate on disposing of non-performing assets, replenish capital, and successfully complete all financial restructuring tasks.
It is estimated that after the financial restructuring is completed, the balance of non-performing loans of Bank of Communications will be 19.8 billion yuan, and the non-performing loan ratio will be 3.43%; all provisions will be made in accordance with regulatory standards, and the provision coverage ratio will be 72.77%; according to international accounting standards, the core capital adequacy ratio will be 5.89% and the capital adequacy ratio will be 8.82%.
However, at this time, Barron's first concern was the listing of Penguin Company.
On June 16, 2004, Penguin Technology was listed on the main board of the Hong Kong Stock Exchange.
Prior to the IPO, DS Holdings held 43% of the shares, South Africa's MIH Group held 11.5% of the shares, and the remaining 45.5% was held by the entrepreneurial team, of which Pony Ma personally held 19.24%.
In this IPO, Penguin will issue a total of 420 million public shares. Based on the issue price of HK$3.7 (approximately US$0.475), they expect to raise HK$1.554 billion (approximately US$200 million), and the market value of Penguin will reach HK$6.216 billion (approximately US$800 million).
In this IPO of Penguin, DS Holdings, South Africa's MIH Group and the founding team did not sell any shares, and all 420 million public shares issued were newly issued shares.
After this listing, Penguin's total share capital is 1.68 billion shares. After dilution, DS Holdings holds 541.8 million common shares, and its shareholding ratio is diluted to 32.25%; South Africa's MIH Group holds 144.9 million common shares, and its shares are diluted to 8.6%; Penguin's entrepreneurial team holds 573.3 million common shares, and its shareholding ratio is diluted to 34.12% - of which Pony Ma personally holds 242 million common shares, accounting for 14.4%.
On the day of listing, the opening price of Penguin's stock was HK$4.37 per share, and it reached a high of HK$4.625 in the morning.
However, in the afternoon, there was a massive sell-off, and Penguin's stock fell below the issue price at the close.
In Penguin's IPO, Rich23 Capital subscribed for 120 million of the 420 million newly issued public shares.
And on the afternoon of the listing day, after Penguin's stock price fell below the issue price, it bought about 30 million shares in succession.
The total investment is approximately US$70 million, and it currently holds 150 million common shares of Penguin, accounting for 8.93% of the total outstanding shares.
However, just one day before Penguin's listing, the Ministry of Information Industry began to rectify the chaotic telecommunications value-added services.
You know, it was this business that made Penguin Technology make its "first pot of gold". Value-added telecommunications services accounted for 70% of Penguin Technology's revenue.
As a result, the stock price of Penguin Company began to fall for a period of time. In addition, in October, China Mobile began to renegotiate the profit sharing ratio of value-added telecommunications services with Penguin Company. In the end, the profit sharing ratio changed from 85% for Penguin Company to 50% for both parties.
Moreover, QQ's dominant position in China's domestic communication software is also threatened.
Just two weeks after Penguin went public, Bill Gates of Microsoft came to China and established two major R&D centers for MSN China, namely marketing and R&D, in Yanjing and Shanghai respectively, officially launching a challenge to QQ.
In addition, Yahoo China is also promoting the interconnection between Yahoo Messenger and MSN to break the monopoly of Penguin.
This series of news caused Penguin's stock price to be at a low point throughout 2004.
This will also be a good opportunity for Rich23 Capital to continue to purchase Penguin shares in the secondary market, because not only the remaining outstanding shares, but also many Penguin employees' shares will be sold in this case…
In fact, it is not just Penguin. At this time, many Internet companies in China, including NetEase, Sohu, and Zhalang, rely on value-added telecommunications services as their main source of income.
Therefore, these companies will also be affected by the rectification of value-added telecommunications services this time.
After Wangyi took the lead in issuing a revenue warning, announcing that their company's revenue from text messages would drop by 50%…
This directly triggered a collective decline in the share prices of 12 Chinese technology companies listed on Nasdaq.
This is also a good opportunity for Rich23 Capital and Mars Fund to start bottom-fishing Chinese Internet company stocks.
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Except for Alia, all the female members of the entourage, including Wang Wanting, had arrived in HK in advance.
In addition, Ivanta also flew directly from New York to HK to meet up with Barron here.
On June 17, the day after Penguin went public, Barron left HK and the group took a Gulfstream G450 directly to Yanjing, the capital of China.
"Honey, is this the house you plan to buy?"
"How does it feel, baby."
On the second day after arriving in Yanjing, Barron and Ivanta... after a short separation, came to this courtyard house under the guidance of a local friend.
The last time he went to Shanghai, Barron bought the Yan Family Garden. Later, out of interest, he asked Chen Fuyang to help him find a nice courtyard house when he came to Yanjing.
When Robin Lee of Baidu learned about this, he took the initiative to contact a friend who had done some research in this area and selected a few courtyard houses with good locations for Barron. Today, under the guidance of this friend, Barron and Ivanta came here to "look at the house".
"This is the first place I found for you. Although it is not the largest, it is one of the better preserved ones. Most importantly, it has a good location. It is next to the Imperial City and not far from the East Gate of the Forbidden City. In the courtyard, across the river, the Forbidden City is across the river. Those who can live here must be rich or noble. It is very suitable for your status."
The other party also knew Barron's identity from Robin Lee. This young man with a girl as beautiful as a Hollywood star was actually a real British aristocrat, a duke...
Not only does he have a noble status, but he is also wealthy enough to rival a country. He is one of the top richest people on the Forbes rich list. Just look at the group of bodyguards surrounding him. You rarely see them even in this capital.