"If you become an official, don't get rich, and if you get rich, don't become an official", this is a good saying, but there are always some people who can't hear it, and thus cause a big disaster.
A few days ago, according to the WeChat public account of "Honest Zhuhai", Li Congshan of the Zhuhai Municipal Bureau of Industry and Information Technology is under investigation by relevant organizations for reasons that everyone knows.
Speaking of the story of Glory and Weilai, it sounds like a fairy tale of two modern versions of Prince Charming and the princess, except that the Prince Charming is the national Z Committee of Shenzhen and Hefei respectively, and they have all extended a helping hand to Glory and Weilai at a critical moment. This move not only made Shenzhen and Hefei famous, but also stimulated the enthusiasm of other national committees in other parts of the country, and they were eager to try and show their skills in the capital market.
Among this group of active buyers, the Zhuhai State Committee is a special existence. Through a series of bold operations, they have become a dark horse in the A-share market. It all started with the mixed ownership reform of Gree Electric, and the Zhuhai State Z Committee obtained 40 billion yuan in funds through this transaction, and then used the money to attack around the market and reaped a lot of money.
Behind all this, it is inseparable from the efforts of Li Congshan, director of the Zhuhai Municipal State Committee at that time. However, the good times did not last long, and recently Li Congshan was under investigation on suspicion of serious violations of discipline and law. This also makes people sigh that sometimes power and money are indeed a double-edged sword.
Under the leadership of Li Congshan, the investment activities of the Zhuhai State Committee were once unlimited. Especially in the cooperation with Gree Electric Appliances, Li Congshan improved his relationship with Dong Mingzhu, the head of Gree Electric Appliances, and the two participated in many inspection activities together, including many trips to Li Congshan's hometown of Ganzhou, Jiangxi. There, Gree Electric not only invested in the construction of a large-scale intelligent manufacturing production base, but also got involved in the real estate business, breaking the previous commitment not to do real estate.
Behind these actions, it reflects the close cooperation between Zhuhai State Committee and Gree Electric Appliances. However, with Li Congshan's investigation, all this seems to have cast a shadow. It also reminds us that whether in business or politics, compliance and legality are always the most important bottom line.
Having said that, Gree Electric's investment layout in Ganzhou is actually a typical industrial land acquisition model. In return, companies can build production bases here and receive local residential land in return. This model helps companies reduce land costs while also promoting the development of the local economy.
However, with Li Congshan's investigation, some controversies about the Zhuhai State Committee also began to surface. It has been reported that there have been inappropriate links between Li Congshan and certain businessmen. In the face of these accusations, Li Congshan responded: "Those who are clear will clear themselves."
In fact, this mixed reform of Gree Electric is like a suspense drama. Zhuhai state-owned assets originally held the three board seats of Gree Electric Appliances, but they did not give Hillhouse Capital, which took over 15% of the shares. It's like buying a luxury villa and finding out that the key to the living room is in someone else's hands. What's even more outrageous is that Hillhouse still has to promise in writing not to make trouble and not seek control, which is like buying a bunch of shares, but can only be a quiet spectator.
On the board of directors of Gree Electric, Dong Mingzhu's shadow is everywhere, and her cronies occupy important positions. Although Hillhouse Capital has spent a lot of money, it has not even made a single director with real power. This operation made the Shenzhen Stock Exchange also confused, and kept asking Gree Electric: "Who is the boss?" "I don't think even the screenwriter can write this story.
Having said that, during Li Congshan's tenure, Gree Electric's employee stock ownership plan was also successfully passed, and the stock price of Gree Electric also fluctuated a little. After selling 15% of the shares of Gree Electric Appliances, Zhuhai State-owned Assets got 41.6 billion in cash, and then began a crazy sweeping journey, taking control of a number of listed companies in one go, shocking the market.
According to statistics, during Li Congshan's two years in office, Zhuhai state-owned assets invested in hundreds of projects, claiming to "sell a Gree Electric Appliance and cultivate more Dong Mingzhu". But a few years have passed, and in addition to the changes on the books, it seems that there is no "more Dong Mingzhu" appearing.
Moreover, the performance of Zhuhai state-owned assets does not seem to be satisfactory. Gree Group's net profit soared after selling a 15% stake, but it soon fell back. The net profit in 2020 was only 430 million, and in 2023, it will only be 580 million. At the same time, the other two core state-owned enterprises in Zhuhai, Huafa Co., Ltd. and Gree Real Estate, are not having a good time.
Just a few days after Li Congshan was taken away, the chairman of Yangpu Medical was also detained. This listed company was also acquired and controlled by Gree Financial Investment on the eve of Li Congshan's departure from the Zhuhai State Committee.
The operation is as fierce as a tiger, whether it is for public or private affairs, it is always necessary to come out after the tide.
Things in the investment world are not so fun, especially the special status of the National Z Committee is even more difficult to play. It's not that I'm afraid of wolves and tigers, but it's really that there are wolves and tigers in the back, and if you want to get out cleanly, how easy is it?
Ladies and gentlemen, I don't know what you think?