Yan Jiehe, the boss of Pacific Construction, has said that China's best companies are not listed. Many experts have also said that in China's stock market today, many listed companies are here to make money. After many companies go public, they have been making money to raise money, making money without dividends, and then major shareholders take advantage of the high market value to continuously reduce their holdings and cash out.
There are really many star listed companies with thunderstorms in recent years, LeTV, Evergrande, etc. are all thunderstorms, and one thunder is bigger than the other. LeEco's market value of thunderstorm seven or eight years ago, when the debt was only tens of billions. But now Henglian Thunder, directly engaged in a debt of 2.3 trillion yuan.
Pan Shiyi, the boss of SOHO China, is right in saying that people make mistakes only after they have money, and when doing business, they are careful without money, but if they have money, they will easily make mistakes.
In 2009, Evergrande went public, and then Evergrande began to expand wildly. Evergrande's madness can be seen from Evergrande's football. At that time, Evergrande frantically invited stars to China, and also brought many world-class coaches to China. Evergrande directly opened the golden era of Chinese football.
With the madness of Evergrande football, Evergrande Real Estate is also crazy to expand across the country. Before Evergrande's listing, the debt was about 10 billion, but when the thunderstorm in 2021, Evergrande's debt exceeded 2 trillion.
In other words, in more than a decade, Evergrande's debt has increased by 200 times. Evergrande is not only engaged in football and real estate, but also in mineral water, automobiles, the Internet, finance and so on. Evergrande's model is simple, that is, constantly enter new industries, and then spin off and finance. In the end, Evergrande was also thunderous, and now the mess has not been cleaned up.
Such a routine LeEco was also the same back then. In 2010, LeEco went public, and LeEco initially only made videos, did well, and was already profitable at that time. But after LeEco went public, it raised money, and at the same time the company's market value was high, and Jia Yueting also swelled wildly, engaged in the so-called seven major ecology, and entered the fields of mobile phones, TVs, cars, taxis, finance and so on. In the end, LeEco's funds went wrong, and then Jia Yueting found Sun Hongbin to take over and went to a foreign country by himself.
After watching so many bigwigs fall and so many companies fall after going public, you know how smart Zong Qinghou is, and has insisted on not going public for so many years. Wahaha has been established for almost 40 years, and many people have always said that Zong Qinghou is conservative and that he does not understand capital operation.
Wahaha has also made some cross-border attempts over the years. However, Zong Qinghou has always been very restrained, and he cross-border investment, never draw cakes, but do it in a down-to-earth manner, regardless of success or failure, he insists on doing a thing down-to-earth.
Zong Qinghou said why not go public? He said that Wahaha is not short of money, and there are more than 10 billion bank deposits alone, so there is no need to go public at all. Some Internet companies are different, they have been doing financing from the beginning, so their shareholders have the need to cash out, so they must go public.
But Wahaha started from scratch by Zong Qinghou alone, and the company is not bad money, so why go public? In fact, after going public, the company is also easy to walk through.
One reason why Cao Dewang has not done real estate for so many years is that real estate is too profitable. Cao Dewang said that if you do real estate, you will not be able to do any business from now on. If you go public, enjoy the thrill of making money from the capital market. It's hard for you to do other businesses on a solid basis.
In addition, when the company goes public, there are institutional shareholders coming in, and they will force you to chase the wind, force you to find a way to increase the market value, and eventually these are easy for the company to run through. Zong Qinghou is definitely not bad at money, Wahaha's profits have been good for so many years, and his goal is not to cash out a large amount of money, but to develop Wahaha into a century-old enterprise like Coca-Cola.
Many people have said that after so many real estate companies fell, young people knew how powerful Li Ka-shing was. In fact, the same is true for Zong Qinghou, after so many listed companies have accidents, you know how smart Zong Qinghou is to insist on not going public.