The reason why most enterprises want to go public is not only for financing to become bigger and stronger entities, but also for realizing their dream of wealth through the capital market. They want to obtain wealth that is dozens of times and hundreds of times stronger than the entities through the stock market, and finally realize the freedom of wealth. This is the difference between enterprises, and the concept of leadership is different, which is one of the reasons why Huawei and Laoganma become bigger and stronger.
Then Huawei became a world super enterprise before it went public. Why are so many companies listed?
Ren said that Huawei will definitely not go public. "The capital market is greedy. To some extent, not going public has made Huawei successful. " Ren Zheng Fei believes: "One of the reasons why we can surpass our competitors in the same industry is that we are not listed."
Second, Huawei's equity is too scattered. If listed, it will make executives quickly become billionaires and multimillionaires. On the contrary, it will not help people to do business in good faith. After cashing out, it is not good for Huawei's development, or leave Huawei to set up a new enterprise.
At present, Ren's shares are only 1.4%. After listing, the controlling stake may change, which will also affect its status. But the most important thing is that post-listing information disclosure needs to be transparent. For Huawei, the confidentiality of important information is very important.
Since the development of the A-share market, listed shareholders have basically mastered the knowledge of * * * *, and the performance of enterprises can stay in the stock market through various behaviors such as fraud. Even if you encounter problems, you will be fined 600 thousand. The low illegal cost has caused the essential problems of the stock market. Some enterprises are not financing bigger and stronger entities, but shareholders resign or have various problems after cashing out, and finally the shareholders who withdraw from the stock market pay the bill.
New shares are listed every year, but the stock market has been falling for a long time after the normal issuance of new shares. In addition to various slogans such as financing, shareholders' responsibility to repay shareholders, failure to fulfill their promises, etc., including temporary changes in performance, only warnings and minor fines have caused serious damage to the ecological environment of the capital market, which has caused the stock market to remain depressed and junk stocks to increase.
After listing, shareholders no longer seek to be bigger and stronger. Once they go public and reduce their holdings, they will get inexhaustible wealth for several lives, and of course they will go public.
In short: Huawei does not go public, mainly for the better development of the company, and does not want the company's operating conditions to go from bad to worse under the influence of the capital market. Many companies desperately go public in order to get more wealth, instead of becoming bigger and stronger, with different ideas and values, which is one of the reasons for Huawei's success.
Huawei is a 65,438+000% national enterprise in China without any foreign investment. It is precisely because Huawei's boss wants to make Huawei the top 500 enterprise in the world and China 100% that Huawei does not choose to go public!
But you must know that Huawei's revenue is the sum of BAT, and its market value is nearly five Alibaba! Without listing, Huawei can also raise funds through internal employee equity incentive strategy or through its own revenue. We can say that Huawei is not bad at all! !
But what we need to know is that it has been more than 100 years since we saw such a powerful enterprise as Huawei, which is not something that all enterprises can imitate! Including today's Alibaba, Tencent, JD.COM, Xiaomi, Gree and so on! ! Therefore, what is suitable for Huawei may not be suitable for them!
But in fact, Huawei's achievements today are really growing step by step. What we can see is that Huawei's revenue soared from 654.38+0252 billion yuan in 2008 to 72.65438+02 billion yuan in 2065.438+08, with a compound annual growth rate of about 20%!
This is an annual growth rate of about 20% in 10, which is comparable to Buffett's long-term value investment. It is an out-and-out compound interest snowballing mode, awesome!
It's a typical example of taking precautions and grinding a sword for ten years. This has boosted the morale of the people of China and made them proud! ! !
Today's Huawei, today's Ren, in the face of confrontation between powerful countries, even Trump's unreasonable use of state power for a "small" enterprise, Huawei and Ren still maintain an optimistic, calm and even generous attitude! Set a good example for many enterprises!
Even gave Ma Yun, Ma, Liu, Dong Mingzhu and Lei Jun a good lesson! The 70-year-old man, with his own strength, vision, pattern and magnanimity, told these young people and entrepreneurs in China in the future, hoping to be a very good inspiration and play a leading role!
Let everyone know that only when the country is strong, enterprises will be strong and they will be strong. Similarly, only when they work hard and enterprises do practical things will the country develop better and become stronger!
Therefore, building 1 000% China enterprises, developing high technology and conducting research are the best ways to resist Trump's invasion in the future! ! ! This time, the impact of the United States on Huawei once again showed us the strength of Huawei and the strength of the motherland. Really, we are proud to be from China!
So a company like Huawei comes once in a blue moon. Not listing has its own purpose, its own difficulties and its own ideas. Can't step by step, also can't imitate! For other excellent domestic enterprises, the experience we learned from Huawei is that after listing, financing needs to develop entities and layout in the future, otherwise it will be the result of the next ZTE, which will be trampled on and unable to fight back!
There is always affection in Qian Shan, so give a focus. Family words, for reference only!
This question is a bit extreme, just like asking, "Li Ka-shing has only a primary school education, but it has become the richest man in Asia. Why do so many people study hard to go to college? " Because there is no inevitable logical connection between the two and Ma Yun!
Huawei can become a world super enterprise, not because it is not listed. Moreover, many companies are desperately going public, which does not mean that listing will restrict the company from developing into a world super enterprise. On the contrary, listing has many advantages.
1, listing can effectively improve the company's financial situation.
Everything needs money as capital, and the market is the most effective direct financing method. Raising funds through listing can quickly improve the company's financial situation.
2, listing is conducive to the improvement of the company's value.
Generally, when there is no listing, the valuation is usually not high due to liquidity problems, but the valuation will be greatly improved after listing, which is very conducive to the improvement of the company's value;
3. Broaden the financing channels of the company.
Due to the sunshine of finance and operation after listing, the amount of bank financing can be greatly increased, and the stock market can be refinanced by issuing additional shares and bonds, which will be much better than not listing.
4, the company's influence and many other benefits.
Listing is a status symbol. The overall quality of listed companies is much better than that of unlisted companies, so their influence on the company has been improved in many aspects.
With so many benefits, why didn't Huawei choose to go public? I think there are three main reasons.
First of all, Ren doesn't want to go public.
What Ren said in the public report is mainly worried that "more money" will make the company less motivated to develop. No wonder Huawei went public, and I don't know how many billionaires and multimillionaires there are. It is inevitable that some people will have the idea of rest.
Second, Huawei is not willing to go public.
Judging from Huawei's public information, whether it is playing 5G or making mobile phones, Huawei seems to have never heard of lack of money. Therefore, like Laoganma, there is absolutely no need to go public for financing;
Third, there are some obstacles to the listing of Huawei's shares with different rights.
Huawei's unique shareholding structure and dividend characteristics, such as many employees have the right to share dividends, but do not have the corresponding voting rights, Huawei's shareholding structure is still very different. It is estimated that there are no small obstacles to listing.
The above is an analysis of the benefits of listing to the company and the reasons why Huawei is not listed. Welcome to correct and communicate ~ ~
Many enterprises want to publicly issue shares through the stock exchange market, which is what we call IPO. At first glance, IPO is to raise funds from outside to increase the capital of enterprises and ensure their better development.
However, with the lifting of the ban on restricted shares, all kinds of stocks of enterprises can be publicly traded.
In particular, the shares owned by many business owners can be pledged to obtain more funds.
Although employees can get wealth through stock incentive plan, it is not good for the whole market.
Due to the blindness of market investment, some funds must be invested in enterprise stocks without knowing the enterprise. Only those who really work or control the enterprise can understand the situation of the enterprise.
Many of our enterprises actually don't want to be a century-old enterprise. Many people are looking for quick money, which often leads to the irony that the scallops of listed companies ran away and the accountants misremembered their accounts.
Think about letv's stock peak. Jia Yueting cashed in 100 billion, claiming to lend it to LeTV. And the result? Now letv has been forced to withdraw from the market.
Ren once replied that Huawei is not listed: "Huawei adopts the employee stock ownership system. Once listed, employees will become rich one by one, and only thinking about selling shares for profit will become enterprising, and listing will only harm themselves. "
In addition, once listed, it is easy to become the target of capital pursuit. After all, many times the stock has the final say. I think Baoneng was directly reprimanded for barbarian behavior when he was a famous brand Vanke.
To sum up, the most common way to go public is to bring shareholders a bigger cash market, so many companies would rather pay millions or even tens of millions of accounting fees to go public.
Huawei is not listed, and Laoganma is not listed, but both companies have become top enterprises in their respective industries in China.
The reason why Huawei didn't go public is also remarkable. The core reason is naturally that it attaches importance to R&D investment, obtains higher profits through increasing its core competitiveness, enables employees to realize financial freedom through high dividends and high wages, and then solves the capital problem through the internal financing mechanism of selling virtual equity.
From the development of Huawei, it is difficult to completely replicate and promote Huawei's success. It is difficult for most enterprises to choose this road to achieve rapid growth, but listing is better.
Of course, countless domestic companies are thinking about going public, and the idea of becoming bigger and stronger can't be said. The realization of financing is the core purpose.
1, a large sum of money can be freely controlled, wages and benefits can be improved, investment can be made, and more market share can be occupied;
2. The cost of original shares is extremely low. Once the lifting period is over, the profit will be less than ten times.
3. The financing cost of the stock market is much lower than the loan. It doesn't matter if you don't pay dividends. You don't have to pay back the money if you withdraw from the market. Listing is similar to wasting money;
4. As long as the proportion of retail investors holding shares is low, it will not affect the decision-making of enterprises, and holding shares will not affect the control of enterprises;
5, listing into a large sum of money, as long as you use your brains and take some measures, you can turn your left hand into your right hand, put the money in your pocket, and it is not difficult to empty the listed company, and you don't have to pay back the money;
There are so many benefits of listing, and the estimation of impure purpose accounts for the majority, which is also an important reason why the stock market is short-selling bears.
For Huawei, funding is no longer the biggest problem. If you don't go public, there will be no risk of losing your equity. As long as we operate carefully and insist on a high proportion of R&D investment, we can develop well without going public. Unfortunately, Huawei has only one.
After all, there are still a few companies like Laoganma and Huawei. Let's take a look at what the public is familiar with: Alibaba, Tencent, Baidu, JD.COM, Momo, Xiaomi, Netease, Sohu, Sina, Worry-Free Future ... All of them are listed, and with the help of capital, the company has also achieved a longer-term development. Listing is still of great benefit to the long-term development of enterprises.
1, Huawei is not short of money.
What is the purpose of listing financing? -In order to obtain enough funds to expand production capacity, invest more R&D expenses to enhance the competitiveness of the company, and introduce more advanced equipment, higher-end talents and cutting-edge technology. . .
With money, everything is easy to say, and there will be room and space for the company's operation, development and promotion. And the cost of listing financing is very low. At the moment when the rules are not perfect, it is normal to make a profit without paying dividends. Compared with bank deposits, it is really worry-free and labor-saving to repay huge interest expenses every year.
However, Huawei is not short of money! Huawei invests 10%- 15% of its sales revenue every year, and has invested more than 300 billion RMB in the past 10 years. . . I'm afraid the market value of many listed companies is not so high.
Because of the strong capital strength and the backing of the government, even if it is not listed, it can live well. Then listing is redundant.
2, the equity is scattered, and the variables are too big after listing.
Huawei is not short of money, there is no need to go public, but it can't go public at this stage! Why? -The equity is too scattered, and the shareholding ratio of senior executives is too high. If listed, all executives will become billionaires. Will everyone still be satisfied with R&D and technology? Obviously impossible.
Moreover, Ren's shareholding ratio is very low, only 1.4%. After listing, Huawei will lose control of the company with a high probability. At that time, Huawei may have unnecessary disputes and variables because of "leaderless". Such risks are still too heavy for Huawei.
1, the cost of the original shares of major shareholders is very low, and once listed, the value can be "doubled". Therefore, the company's executives have great motivation to promote the company's listing.
2. Low financing cost. Even if the benchmark interest rate of commercial loans for more than five years reaches 4.9%, the gross profit margin of product sales may be only 10-20% for the majority of manufacturing enterprises, so the financing cost of loans is very high. However, the cost of listing financing is really low, and you can easily get a steady stream of cheap chips just after the IPO. Why not?
3. At the moment when the delisting system is not perfect, once it is listed, it is very likely to be "once and for all". Through some capital operation, living water can be continuously taken out. Who doesn't like cash cows?
Huawei can only be regarded as an example, and this phenomenon is not easy to replicate. For most enterprises, they are still willing to choose to go public. If the company's helm is properly managed, listing can really make the company bigger and stronger. It's just that the atmosphere in the stock market is not optimistic now.
Huawei is an example. Huawei's failure to go public does not mean that it has not conducted equity financing. Enterprises go public mainly for equity financing. Huawei and Laoganma are not listed, but the enterprise has developed very well, especially Huawei, which has become a world-class technology enterprise and even allowed the United States to use state power to sanction him. Does this mean that the company does not need to go public? Don't you need to go public to be a business?
1, Huawei is not listed, but it does not mean that it has not conducted equity financing.
Huawei has achieved today's achievements, becoming an international technology enterprise with revenue of 654.38+000 billion US dollars, ranking first in the industry. This is his well-known achievement, but Huawei's "national shareholding" is also the envy of many enterprises. Huawei also needs a lot of funds in the development process, including loans from financial institutions such as banks and internal financing through employees.
Huawei's virtual stock system is a great innovation. This innovative system solved Huawei's funding bottleneck, and Huawei almost closed down several times because of funding problems. In the early 1990s, Huawei invested a lot of money from acting as an agent for foreign switches to independently developing switches, and the company could not even pay wages for several months. Ren even said tragically at the mobilization meeting that "if he fails, he will jump off the building", which is a very real scene. According to statistics, from 2004 to 20 1 1, Huawei raised more than 27 billion yuan through employees, which is comparable to the IPO financing of a large enterprise in the capital market.
As a friend of Huawei, ZTE listed on the A-share and H-share markets, raising 4.5 billion yuan, which is far less than the amount raised by Huawei through internal employees.
What does Laoganma do? Chili sauce! This is his main product, and it is also his main product. Is there any innovation in Chili sauce? Don't! Only a few varieties will remain unchanged for ten thousand years, and there is basically no risk in product development! Without the risk of product research and development, Laoganma would not have the risk of R&D investment without knowing whether there is a return. Therefore, Laoganma's investment is stable and fixed.
Secondly, does Laoganma have market risk? Basically not. Pepper is a hobby of China people, and China people can buy it as a luxury in the United States. This shows that the demand for this product is basically fixed. Whether life is good or bad, everyone needs a bottle of Chili sauce. It doesn't mean that I am rich, and I don't need it when I am rich, so his consumers won't change their buying habits because of their income. Everyone has this need.
Third, does Laoganma have brand risk? Don't! Therefore, the marketing of Laoganma is basically very little, and the recognition of consumers is very good. So far, there is no similar product that can compete with Laoganma, so the marketing promotion is very few and basically stable.
How about Laoganma's sales rebate? Laoganma is a strong brand, all supermarkets will rush to settle in, the payment is completely no problem, and the cash flow is very safe and stable.
A brand product with no R&D investment, strong brand recognition, no competitors and strong channels has worry-free sales, stable cash flow, worry-free sales, risk-free investment, extremely high gross profit margin and relatively stable production capacity.
How many companies have such corporate characteristics? If you have these characteristics, then you can not raise money or IPO, but this kind of enterprise is only Laoganma.
Summary: The development of an enterprise needs the support of funds, so it needs external financing. IPO is an ideal way, especially for innovative technology-based enterprises, which need a lot of money and the future is uncertain. Equity financing through listing is an ideal way, and both Huawei and Laoganma are just an example. Moreover, Huawei only solves the financing problem in its own way, and now most enterprises can't imitate it.
Many people will find that many well-known companies in the world don't seem to go public. For example, Saudi Aramco, a world-renowned crude oil producer that we are familiar with, controls more than 10% of the world's crude oil, and completely beats our domestic Alibaba and Tencent companies in terms of profit. Huawei also meets this situation. Without listing, it is still a world super enterprise, so this leaves an important discussion topic for everyone. Why do many companies have to rack their brains and go public at all costs? Let me talk about the impact of listing on enterprises and the difference between many companies wanting to go public.
In fact, we all know that the main purpose of the company's listing is financing, and the financing funds obtained after listing do not need to be returned later and interest. However, the funds after financing have a far-reaching impact on the company's later development. A typical example is that the funds raised by ICBC and Air China have been solved, but part of the company's funding gap has been solved. It is precisely because the short-term financial crisis was solved after listing that ICBC became the boss of the banking industry. Air China has become a leader in the air transport industry. If you are interested in the background of the listing of Industrial and Commercial Bank of China and Air China of China in 2006 and the shaky listing under the reform of the new share issuance system, you can find some materials to study the significance of the milestone of the new share issuance and the split share structure reform in China.
From the above examples, we can know that after listing, we can get free funds to solve the current funding gap, and we can use these funds to expand production, so as to enhance our competitive position, thus boosting the growth of China's GDP. Therefore, in recent years, the country has been accelerating the progress of IPO, which is also an aspect of the purpose of many listed companies. However, in the development of the capital market, any financing project and development always have two sides.
In fact, many companies care not only about financing, but also about the appreciation of their wealth after listing and the convenience of cashing in shares in the secondary market to obtain large profits. But at present, no matter what supervision, it can't solve the purpose of many companies to circle money through listing. Therefore, we find that many listed companies have not developed their own industries after financing, but their performance has changed greatly in recent years, and even few companies have completed listing through financial fraud in order to go public. So the company went public and cashed in, realizing wealth freedom.
Above, we specifically explained the benefits for a company's development and the benefits for shareholders of listed companies after listing, but the reasons why many companies don't like listing are actually well understood. Below, let's explain in detail the purpose of not going public.
The above-mentioned enterprises try their best to go public, which is nothing more than the above reasons. If the enterprise does not encounter the problem of capital shortage in the development process, the cash flow of the enterprise is abundant at present, and the company is full of confidence in the later development, so there is no need to cash out in the short term. Listing is meaningless to the company, and there are several disadvantages.
First, after the listing, the company's shares were diluted, and the company's profits were diluted in the later period, and the annual dividends received by the company's major shareholders naturally decreased.
Second, after listing, companies need to disclose financial data at a specific time every year, and some big moves of some companies must be disclosed and announced. Everything about the company is equivalent to being clearly announced to the market, which is unfavorable to some strategic companies. I think this is also a big reason why Huawei is not listed.
Third, due to the dilution of shares after listing, many shares circulated in the secondary market in the later period. If someone buys a lot of shares in the secondary market with ulterior motives, there will often be many equity disputes, and may even shake the controlling position of many founders. Everyone still remembers the equity dispute of Vanke in the past. If Vanke does not go public, these things will certainly not happen.
The company has been in a benign development stage and is not short of money in the short term. Full of confidence in the major shareholders of the company's later development, listing is meaningless to them, so what is the significance of listing like Huawei, Laoganma and Saudi Aramco above us? 、
Summary: Everything has two sides, and the positive side must have a negative side. This contradiction is insoluble. How should company leaders and major shareholders view this matter? If the company faces a bottleneck in the short term and lacks funds in the later development, listing is a good choice at this time.
Companies like Huawei are rare. There are many reasons why Huawei did not go public. Although Huawei didn't go public because it was worried about the entry of capital, which would affect the strategic nature of the company, Huawei's equity distribution also affected Huawei's listing in A shares.
Huawei's equity is basically in the hands of tens of thousands of Huawei employees and there are no external shareholders. In the history of Huawei's development, we have also encountered many financial difficulties, mainly through internal financing to solve the financial problem. Now Huawei is not short of money and does not need to go public.
But companies like Huawei are rare, if not unique. Most enterprises will encounter financial difficulties in the process of development.
Especially when enterprises are transforming from the cultivation period to the high-speed development period, on the one hand, they need a lot of R&D funds, market expansion funds and capacity expansion funds. It can be said that enterprises are always struggling for money. If the enterprise develops by rolling profit, it is difficult to grow rapidly, and it is easy to be surpassed or even killed directly in the competition. Because now, whether it is product, technology or marketing, the iteration is very fast.
In order to meet the rapid expansion of enterprises and stay ahead of peers, enterprises need a lot of funds to support their expansion, including technology expansion, capacity expansion, market expansion and so on.
It is not enough to rely on the accumulation of the enterprise itself for such capital demand. Issuing bonds involves enterprise qualifications and repayment ability. The limited profits of enterprises will be swallowed up by the extra interest.
In this case, there will be capital market and listing financing.
Listing is the best way for enterprises to obtain the lowest cost funds. After listing, an enterprise will have a large sum of money that will never be repaid, and it can rapidly expand its business and technology, and quickly enhance its brand awareness and reputation. Not only that, listing can also effectively avoid business risks and bring pressure to the founders of enterprises. In the process of enterprise development, when the founders are short of funds, they mostly use personal credit to finance the enterprise, usually by borrowing money. It is possible for an enterprise to develop healthily. In case of crisis, the founder loses not only the enterprise, but also his own credit.
It is precisely because of the stock market that many enterprises get a large amount of funds at no cost (for use after financing) or at low cost (for investment during financing) and develop rapidly. There are many precedents in China stock market, such as Vanke, Gree Electric and Fuyao Glass.
However, due to the congenital deficiency of the domestic capital market, the defects of system construction, and the tendency of emphasizing financing over investment, many enterprises fake listing, which has a very bad influence. Most companies go public to make money. The listing financing is several hundred million, and then it will not work, and the relevant responsible persons have not been effectively sanctioned by law. In this way, A-shares can not really become one of the core forces to promote economic development, and it is difficult to become a barometer of economic development.
Huawei was founded in 1988 and 1995, and Ren proposed to "slice" Huawei into the market. One of its subsidiaries is called "Maubec Shares", and it is planned to go public first in 1996. I hope to establish a modern production line and copy technology through listing financing, which will greatly reduce costs and generate profits. However, it was not listed later, which may be related to the 1997 financial turmoil.
Whether a company will become a super-large company, listing is not a necessary condition. For example, there is also a Fortune 500 industrial company in the United States that resolutely refuses to go public, and that is Koch Industries. If a company relies on endogenous growth, listing is not the only choice, and it can develop the company through its own operating profits.
Huawei's route is like this. A lot of money is spent on reinvestment and development of new technologies. The money earned by the company in the early stage was used to pay wages, pay taxes and engage in scientific research, and there was almost no money left. Reinvestment of company profits is like learning. If a person doesn't know a word, he will learn a little, learn correctly and stick to it for a long time, and so will the company. Continue to invest in research, and after the research direction is correct, it will become the master of the enterprise for decades.
Why are so many companies listed? This is because in order to develop rapidly, many companies raise a sum of money through listing to expand production or other purposes. It is a long process to reinvest in development by profits, and even lose business opportunities. Some companies will not choose this long process, so choosing listing financing means accelerating the company's development. It may take 5 years or 10 years to accumulate development funds through their own profits, while listing only takes 2-3 years, so they choose listing.