Sino-Xuan Biochemical reconstruction management battle 1.9 billion the wind throws deep mire

Core tip: On the surface, the Sino-Xuan biochemical crisis originates from its contradiction with the thermal power plant, but the root is the current major shareholder and the original management for the "listing" tangle of ten years of enmity. Li Qingyu "I've voted more than 10 companies, and it's not easy to be fooled." But this time this big one when, a billion of of the pit, I jumped in, flooded half to death. "China Xuan Biochemical chairman Shengfu told our correspondent, up to now including his venture investment has invested 1.9 billion yuan."　　And the world's largest xanthan gum production enterprise-zibo China-Xuan Biochemical Co., Ltd. is facing unprecedented crisis. In August this year, the company lost 4 million yuan. This is the first monthly loss in more than 10 years, after a steady monthly profit of 20 million-30 million yuan.　　The current major shareholder will be the cause of the loss to the thermal power plant, that the thermal power plant will originally belong to their own profit horizontal knife took away. In the middle of September, workers in the biochemical workshop, which were dissatisfied with the pay drop, gathered in a "mood", resulting in a further deterioration of the production order, and the network included a variety of "stick" in a variety of grievances.　　The ongoing escalation of contradictions between the current major shareholder and the former management has even alarmed the local government, which has been surveyed by a number of functional divisions into the enterprise for a period of up to 10 days. Just at this time, the company's largest competitor, Fu Fung Group (00546.HK) frequently cost advantages to reduce market prices, leading to a gradual erosion of the marketing share. Shengfu said: "If you wait another year, like Kraft, Unilever, and so any one to go out to buy his (Fu Feng) products, it will mean extinction." In the oil industry can not say Bingbairushandao, now only a world-class customers with 25% of our volume.　　"On the surface, the Sino-Xuan biochemical crisis stems from its contradiction with the thermal power plant, but the root is the current major shareholder and the original management for the" listing "tangle of ten years of enmity.　　1. Thermal power Plant caused the conflict in Xuan Biochemical predecessor is Shandong Zibo Linzi District Winery, the production of Banana leaf, Bu Gang Liquor and other brand liquor in the surrounding sales. 1992 began to produce a food and industrial additives xanthan gum, 1996 after the xanthan gum gradually replaced the liquor company flagship products.　　Xanthan gum is often used as thickener, emulsifier, suspension agent, stabilizer, widely used in daily chemical industry, food, medicine, oil production, textile, ceramics, printing and dyeing and other fields.　　Located in the east of Zibo Linzi District, Shandong, China-Xuan Biochemical Co., Ltd. at the door at the same time hung another pair of brands: Zibo Zhong Xuan Thermoelectric Co., Ltd. In this 170 acres of plant, the workers experience a double day of ice and fire treatment. Thermal power plant workers monthly income of about 4000 yuan, and biochemical workshop workers can only get 2000 yuan up and down.　　Previously, two factories were owned by a company with a comparable welfare treatment. September 15, biochemical workshop workers gathered together, vent the discontent of low treatment, by the enterprise management layer called "Moody event." In fact, since the summer of 2008, the deterioration of the operation of the biochemical company, the wages of workers have been significantly reduced, discontent spread everywhere, with the arrival of the loss, the contradictions began to superficial.　　This August, the Chinese-Xuan biochemical company since the 1996 Xanthan gum production since the first monthly loss, and in the best Years, xanthan gum monthly profit of more than 30 million yuan. Thermal Power Plant is Shengfu and the original chairman Zhou Fulu contradictions in the open point. Shengfu and his wife, the same China investment president Shili that the root cause of the deterioration of biochemical management is Zhou Fulu set up a trap to the thermal power plant, then by the bad means to manipulate electricity, gas prices-on the one hand, significantly improve the supply of electricity, gas prices, and other aspects of arbitrary hold or deliberately provide less than the rated standard of compressed air- Cause xanthan gum cannot produce normally, the cost is high.　　Thermal power plant to provide electricity and compressed air accounted for xanthan gum production costs more than 50%, any small changes will have a huge impact on the production of xanthan gum. Shengfu and Shili said that the critical moment, the thermal power plant significantly increased prices. July 2008, the thermal power plant a paper notice, steam from 110 yuan per ton mentioned 180 yuan, compressed air by 360 yuan per million cubic meters mentioned 721 yuan. When they got the August 2008 report, they found only 8 million of the profits, less than 6 million in September 2008.　　This was preceded by a 20 million profit per month. Shili that Zhou Fulu to do so is to force them to withdraw from the Xuan Biochemistry. Shili told reporters: "Zhou Fulu will release words, ' Give him (Shengfu) 200 million or 300 million let him go back to Shanghai!" "Shengfu said:" The country more than 99% of the thermal power plant losses, such a small thermal power plant is incredibly profitable, and more than 10 million of the profit per month. Xanthan gum Profit space is certain, upstream profit is big, downstream profit is bound to be compressed, which is tantamount to the downstream profits transferred to thermoelectric.　　"Shengfu that it was his own too trusting Zhou Fulu to make today's mistake-to sell the thermal power plant to Zhou Fulu.　　If the Zibo Xuan is the Shengfu encounter Waterloo, the thermal power plant seems to be the battle to Napoleon a fatal blow to the Prussian army, will Shengfu into a loss situation. But why did Shengfu agree to sell the thermal power plant to Zhou Fulu?　　Sino-Xuan Biochemical and thermal power plant in the end is what kind of relationship? 2. Dr. Liu and local entrepreneurs in 2002 after the production of thermal power plant in east and West plant pattern, the new xanthan gum production line is also arranged in the East Plant plant, and at this time in the Xuan has a biochemical plant, winery, packaging plants and heat plants and other dozens of factories, known as Shandong Xuan Group. 2006 Shengfu and the United States Warburg Pincus capital of 181 million U.S. dollars leveraged to buy all of the company 58% stake in the previous 2000 Shengfu and other people have a 40% stake in the Xuan. In the acquisition before, the management in December 2005 set up Qingdao in the Investment Co., Ltd., after the completion of the acquisition of 320 million yuan in the price of the company in addition to the biochemical plant, including thermal power and other assets to buy.　　The formation of a plant in the bio-chemical companies and thermal power plant companies for the two shareholder control pattern, but also for the subsequent dispute left a foreshadowing. According to Shengfu, other shareholders were determined to differThe thermal power plant sold to Zhou Fulu, fear of being "Kabozi", History said at that time also with their own personality guarantee that Zhou Fulu is not like that person. For Shengfu, Zhou Fulu retort that at that time is purely in order to tie in with xanthan gum business listing, will not take over the main industry of the thermal power plant, the so-called deliberately "dig pit" framed by biochemical companies, is completely irresponsible Shengfu. Zhou said: "I can tell you so, this person (Shengfu) said 99.98% are all nonsense!" "Shengfu, there are" rich Professor "said. Speak, talk, a scholar style. The title of the business card is the director of Shanghai Equity Investment Association and chairman of Shanghai China Investment Group. History of the experience is quite rich, the first Fudan University after the restoration of the top students in mathematics, after the United States to study, to change political economy. Return to scholarship at the same time engaged in business consulting and other businesses, has been in a cement plant in Jiangsu for 5 years director.　　The source of the so-called professor is the 2001 history of the Fudan Institute of Economics, the establishment of the new Political Economy Research Center, and assumed the post of director. "I have voted more than 10 companies, there are chery cars, hualing cars, South Big photoelectric, etc." It's not easy to be fooled. But I was flooded to death by the middle-Xuan biochemistry.　　"Shengfu introduced, the first is their three ph. D. Investment of 57 million Yuan, 2004 Shili invested 100 million yuan, 2006 leveraged purchase investment of about 1.38 billion yuan, if combined with this January 400 million of the financing, the current venture in China Xuan Biochemical investment has reached 1.9 billion yuan. Of course, every year there are dividends, Shengfu said that up to now a total of 800 million yuan dividend. However, Zhou Fulu revealed that the 2006 after the acquisition of the year that dividend 700 million yuan.　　Shengfu also told reporters that from 2000 there are dividends, up to 40%. Zhou Fulu, the outside world knows very little, I also deliberately avoid the media chase. In the interview, the reporter learned that its early farmers, had a soldier experience, after the demobilization into the Linzi winery, then became the factory director, the chairman of the company, so far has been two consecutive Shandong deputies representative. Zhou Fulu proud of the past is that in the 90 's Linzi winery three banana leaf and other wine sales area, although only covering parts of Shandong province, but a year to create more profits than the Wu Liang Ye. Zhou Fulu said: "We are not highly educated, but we do business solid, you can say, no matter what to make money!" "In mid-September, the first time the reporter saw Zhou Fu Lu, is in its Qingdao office." The huge office was empty, and Zhou Fulu looked rather lonesome before sitting on the desk. At this time Zhou Fulu already and Zibo Xuan biochemistry without any relationship, and far away from hundreds of miles Shengfu is struggling to find a breakthrough.　　The result of two scattered shots is not a winner. Over the past decade, outsiders are hard to peep at merits. In the interview, Shengfu to Zhou Fulu especially before 2006 the partner evaluation is very high, that this person selfless, work solid, the overall interests, not selfish. But after the summer of 2008, Zhou Fulu gave Shengfu the impression that "suddenly like a person", became "unreasonable" "no one knows what he wants to do.What the.　　Zhou Fulu told reporters that after the failure of the listing Shengfu became "crazy." 3. Dark War: Engage in production or engage in capital Shengfu recalls that in 1999, in Beijing, the Duan Yongji office, he and the other two Dr. stay in the United States for the first time to hear the Chinese Academy of Sciences Professor recommended Xanthan gum project, that this is a very promising product.　　The second year, three people will have their own funds 57 million yuan into the Xuan in Zibo, accounted for 40% of shares. At that time, xanthan gum project has been over the break-even point, into the rapid expansion of the perinatal period. For Zhou Fulu, they need to introduce money to expand production.　　From 2001 to 2004 each year in the expansion of production, three years down from 3000 tons of capacity expansion to 39,000 tons, ranked first in the world, the annual profit of nearly 400 million yuan.　　Investment in Xuan, Shengfu and other people's goal is very clear, is to promote the listing of enterprises, through the stock market amplification role, the cash is profitable. But then the management of the listing is still a conflict of mind. Zhou Fulu said: "We were very wary of foreign investors, and we thought that the people who were out there were either empty gloves or white wolves. We told them categorically that we do not run capital operations in production and operation. So at first the old Slay is making a commitment: to invest in production without capital operations. With advanced technology, advanced management and advanced information.　　"In Zhou Fulu's view, as time goes on, Shengfu's mentality of listing is exposed." Zhou's character belongs to the more rigorous kind of person, in some details, to Shengfu also quite prejudice.　　For example, if you borrow money from a business, there is no time to return the history. Shengfu once exclaimed: "I always do not understand, the old week on the listing why so disgusted." "For Shengfu, Zhou Fulu felt awkward from the beginning. He said: "You are engaged in capital operations, at the outset, why did not dare to say it!" So he wants to, we don't!　　"It should be said that a contact between the two goals is not the same, and in the subsequent cooperation in the failure to fully communicate, mutual understanding and tolerance, for the subsequent failure left the initial rift." Shengfu introduced, 2003, 2005 twice to promote enterprise listing, but are Zhou Fulu "stir yellow". Shili cited an example. said that the brokerage please to the company, Zhou Fulu Avoid, the brokerage in the conference room after two hours, heard Zhou Fulu in the corridor shouted: "This enterprise only one person, I am the enterprise of Osama bin Laden!"　　At that time, including CLSA and other foreign investment banks, heard Zhou Fulu claiming that Osama bin Laden immediately "look pale", fled. Zhou Fulu admits that he didn't agree to go public before 2006, but scoffed at the details of Shili's description: "I'm not saying, this person has no truth!" "The two sides of this mentality, can not help but remind people of the" inheritance evergreen "in the summary of the principle of cooperation," to find the right people, on the car, do the right thing. " "On the face of it, it seems like you didn't find the right person at the beginning, but the deep is the identity of the two people, the dialogue is not on a platform." Like Shengfu as an investor is very clear, the middle Xuan is complexMiscellaneous, for example, in the original as a district of the enterprise, 1992 stock Transformation, there are 901 shareholders, personal shares in the week of the largest, but also accounted for only 2.89%.　　This calm confrontation lasted until 2005 years. 4. A halt to the financial turmoil in September 2006, as hit's takeover case surfaced, the first step in the Hong Kong listing of the Chinese-Xuan biochemistry was launched. Shengfu told reporters that leveraged buyout, "is to put 10 million or 20 million of their own into the ' bottom ', the rest of the bank loans." "According to the design of the time, the company priced 2.4 billion yuan, Shengfu to 12 times times P/E, equivalent to 17.2 yuan per share price to acquire the remaining 58% equity." Shengfu has a 98% per cent stake in the company and Shengfu replaced Zhou Fulu as chairman in July. Zhong Xuan easy to name Chinese colloid.　　Listed subject is limited to the production of xanthan gum core assets, the rest of the assets are received from Qingdao. The agreement stipulates that the original management of all reserves, still responsible for the day-to-day business activities.　　At the same time, the listing automatically gets a total of 23.8% option equity. After the acquisition, in addition to Linzi District state-owned assets operating departments still hold 20% of thermal power plants, the rest of the state-owned enterprises in the Xuan exit.　　Qingdao originally by the original management 6 people shareholding, and then expanded to more than 20 people, Zhou Fulu shareholding ratio of 23%. But the IPO remains fraught with difficulties. In Shengfu's words, the main reason why the listing is "very difficult" is that Zhou Fulu set traps everywhere. For example, he said, thermal power plants are affiliated enterprises, the SEHK requested the disclosure of the report, but Zhou Fulu always refused to provide it. The audit found that the workshop of the plant occupied the land was originally a thermal power plant, the history of the transfer of land to the biochemical, but weeks resolutely refused, but the requirements of biochemistry will be sold to the thermal power plant, at the same time　　As a result, rents were so high that three-year rents were enough to buy factories. In the face of Shengfu's accusations, Zhou Fulu said: "He is not responsible for any words." He explained: "After 2004, Shengfu revealed the meaning of the listing, although disagree, but understand him." Later we also put forward our ideas, the two sides began to talk about the 06 when the Shengfu promised to give us 23.8% of the shares, which is a large part, and after the listing Shengfu their reduction, management team may be a major shareholder. Therefore, we are fully supporting the listing at this time. "As for the plant on the land of Thermal power plant, the chairman of the 耿佃祯 Thermal Power company, now Qingdao, the President of this Council, explained that the thermal plant is actually a Linzi District of the public welfare plant, not the middle-xuan-owned power plant. 1999 Linzi District Key Industrial office ran 8 years finally approved, said Chicheng thermal power plant for the surrounding heating. In particular, the Government commissioned the construction of the Middle Xuan, the district government accounted for 20% of the shares, the nature of the land allocation, can not be changed.　　In this context, the biochemical plant can only be leased to Shengfu. Shengfu told reporters that when all formalities have been completed, the HKEx said, "You can play the road", it is May 19, 2008, GoldThe crisis has swept across the Pacific from America.　　At this time, the original main underwriter Deutsche Bank in Hong Kong's company has closed down, the staff has been ran away. Listed stranded. Shengfu said, no matter ah, the economy has ups and downs, the stock market fluctuation, now not on, two or three years later again. Let's get back to the production business. But when I came back, it all changed. Old Zhou turned, and no one was there, nor did the telephone answer.　　Only then found that the old weeks in the biochemical around the new opened seven or eight factories, the biochemical cadre transferred out more than 20, wages are still in biochemical hair.　　5. The Sino-Xuan biochemical face closes?　　In the market lost, two people with fire and fire, in Shengfu seems to be staged Kangwu only one step away.　　In August 2008, Shengfu forcibly took over the Sino-Xuan Biochemistry, deposed the original management to remain in the agreement, while the original management of 23.8% of the plan also form the same waste paper. In sharp contrast to Shengfu, Zhou Fulu said the history of the failure of the listing can be described as "crazy"--to find audit company Audit company Books, everywhere set up a suggestion box, biochemical company made the shaking. The original management to the death and give up the momentum. Zhou Fulu said that Shengfu they manage the enterprise is a mess.　　He example, history took over the enterprise soon had occurred 3 tons of xanthan gum loss event, and history unexpectedly threatened to be Zhou Fulu people steal. In Zhou Fulu's view, the Shengfu point to the thermal power plant is purely unfounded. For the thermal power plant price increase, 耿佃祯 explained that in fact, from the second half of 2007 coal and other raw materials prices have significantly increased, in order to cooperate with biochemical companies listed until May 2008 has been the implementation of the original price, the thermal power plant for this loss of more than 40 million yuan, the listing is not, there is no need to According to a statement on steam prices and other matters, which he provided in September this year, the steam price of the district government is 180 yuan per ton, compressed air is 360 yuan per million cubic meters. 耿佃祯 introduced, before the two sides signed an agreement on the price of the implementation of both principles, first, the coal price rose 10%, the price of gas supply growth, and the second is "reference to the market, appropriate concessions." He said: "We refer to the surrounding more than 10 power plants, the implementation of 180 yuan per ton of the price of the family, the rest are higher than us, more than 260 yuan a ton."　　"He believes that the reason why the thermal power plant profit has four reasons, less people, management in place, with compressed air profits and the summer storage of coal, a few superimposed natural than other thermal power plant more than more than 60 million profit, so no matter the thermal power plant 2008 90 million or 2009 100 million of the profit is by no means to seize the In Shengfu insist, July 2009-Xuan Biochemical purchase of thermal power plant 40% equity. Shengfu said, originally more than 20 million sold to Zhou Fulu, I 180 million buy back he refused. "Zhou Fulu has a knack for having 6 directors one by one signed and the government doing his job letting him sell," he said, "the board disagrees." As a result, we only bought 40%. "On his account, Zhou Fulu shook his head:" He's been making all day, we didn't want to sell it to him, but we had no choice but to sell it. But the workers do not agree, to find the government, the Government is afraid of accidents do not let sell. "耿佃祯 said, biochemical company production costs increased, gas pressure instability is the root cause of Shili and other people without any reason to deduct workers ' wages caused by resistance, he said, for example, the first half of this year, the original rubber profit of more than 90 million yuan, workers pay in the past assessment monthly income can exceed 3000 yuan, but actually only 1600 yuan "There must be emotion.　　"耿佃祯 said. Zhou Fulu that, Shengfu take the thermal power plant "say things", one is to transfer workers discontent, the second is to delay time.　　The goal is to wait until the ripe time to transfer the bio-chemical capacity of the middle Xuan, and finally a heap of mess left in Linzi. Zhou Fulu said that the xanthan gum market is so big, Shengfu in Inner Mongolia 12,000 tons of capacity, while in Anhui 6000 tons of production capacity, "it is not obvious."　　"he said. In January this year, the Sino-Xuan biochemical 400 million yuan strategic investment. Shengfu introduced that the introduction of strategic investors should be the time of May 2009, by the Black Panther Group, Shanghai Jinqiao Development and other 6 domestic investors through the increase in capital into the Xuan. At present, the shareholding structure of China-Xuan is held in the Sino-Xuan Biochemical shares 50%, through the overseas Caimas, Is. China Bio Solutions Group Limited holding 25%, Black Panther Group and other 6 holding 20%, the relevant core personnel holding 5%.　　One of Shengfu's 75% shares includes a foreign company holding 4.1%. Incoming funds into Inner Mongolia will build a new xanthan gum production line. Shengfu introduced that in Inner Mongolia 1 tons of coal as long as 100 yuan, and in Shandong a ton of coal is more than 600 yuan, "our cost is 19,000 yuan, Fu Fung is 13,000 yuan." We sell 24,000, he sells 19,000, and Fu Fung wants to take this opportunity to crush us. But Shengfu thinks the turnaround will come soon. "It will be the most competitive factory in the world," Shengfu said, "It is the most difficult time, but we are the most competitive after a year." "To transfer capacity, Shengfu that the first is the cost of pressure must be done, otherwise can not compete with the Fu Fung; On the other hand, the existing plant is facing the pressure of energy saving and emission reduction, and Linzi District has done planning, this piece of the future to build high-end community, the factory will be unified to move to the industrial park, but And the company's headquarters will stay here, and the research and Development Center is here.　　Workers don't have to worry about it. He said that in May, he wrote a letter to Lao Zhou, hoping to get back together and seek common development. But the old week replied that it is all dry.