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    Who took over the Zhongjiang Trust? Unveil the mystery of the "watertight cabin" rise of Cedar Holdings

    2019-02-11 08:02:54

    Investment Times Liu Jing

    In this 24-page document, Zhang Jin reveals to the core cadres of Cedar Holdings the reasons for his determination to hold Zhongjiang Trust, and proves that the company can enter the world by telling the history of the company and its unique business model. The top 500 does not rely on short-term blind expansion, but relies on more than 20 years of steady stability.

    On November 29, 2018, the China Banking Regulatory Commission issued a reply on the change of equity of Zhongjiang International Trust Co., Ltd. (hereinafter referred to as “Zhongjiang Trust”), and agreed to accept the leading position of Cedar Holdings Group Co., Ltd. (hereinafter referred to as “Cedar Holdings”). Asset Management Co., Ltd., Dalian Yuhui Technology Development Co., Ltd., Tianjin Tongtong Technology Development Co., Ltd. and Shenzhen Zhenhuili Technology Co., Ltd. held a total of 71.3% equity of Zhongjiang Trust. Upon completion of the equity change, Cedar Holdings will become the largest shareholder of Zhongjiang Trust.

    Once the news was released, it was quite concerned by the market. In addition to the large share of the equity transaction, Zhongjiang Trust’s own popularity and particularity are also contributing.

    It is understood that in 2016, Zhongjiang Trust jumped from the industry ranking of 30 in 2015 to the sixth place with a revenue of 3.616 billion yuan and a net profit of 1.925 billion yuan. However, the scenery at that time was only a short-lived one. The company's operating income and net profit in 2017 decreased by 73.87% and 91.01% respectively. In addition, in recent years, many companies have been affected by the deleveraging policy and have been caught in a liquidity crisis. As a result, many trust projects of Zhongjiang Trust have defaulted or overdue, and the “industry dark horse” has become “stepping the thunder king”. Coupled with the identity of Zhongjiang Trust’s “Tomorrow” assets, the company’s move to change is also expected.

    At the same time, the receiving party Fangsong Holdings is gradually showing its view in the public. The novelty is beyond the public's suspicion: What kind of enterprise is this? Do you have sufficient financial capacity to acquire Zhongjiang Trust? What is the purpose of its holding Zhongjiang Trust?

    In fact, in recent years, Cedar Holdings has gradually entered the public's field of vision with its continuous jump performance: in 2015, it was ranked among the top 50 Chinese private enterprises with a revenue of 59.3 billion yuan, and it cost 4.8 billion yuan in 2016.Qi Xiang Tengda(002408.SZ), spending another $4.2 billion in 2017Hinur(002485.SZ) was merged into the arm, and in 2018, it was ranked 361th in the Fortune Global 500 for the first time with revenue of 221 billion yuan.

    The above information disclosed by Cedar Holdings on its corporate website may not be sufficient to answer all public questions. Recently, the "Investment Times" obtained the internal speech materials of Zhang Jin, the founder of the board of directors of Xuesong and the chairman of the Board of Directors, in the "First Phase of the Cedar Training Camp". In this 24-page document, Zhang Jin reveals to the core cadres of Cedar Holdings the reasons for his determination to hold Zhongjiang Trust, and proves that the company can be ranked by telling the history of the company and its unique business model. The world's top 500 is not relying on short-term blind expansion, but on more than two decades of steady and steady play.

    Take over the "depreciation" financial license?

    As the only Fortune 500 company in Guangzhou, Sunshine Holdings owns six industrial groups including Tongyun Supply Chain Group, Chemical Group, Cultural Tourism Group, Junhua Real Estate Group, Community Ecological Operation Group and Financial Services Group. However, the takeover of the river trust is undoubtedly an important part of the establishment of financial services system by Cedar Holdings.

    According to the internal training data, Zhang Jin informed the company at the beginning of the speech that the company had obtained the approval of the Banking Insurance Regulatory Commission for the acquisition of 71.3% of Zhongjiang Trust, and called it a “milestone event”.

    However, due to the fact that the disposal of “Tomorrow” assets has attracted much attention, and the huge fluctuations in the performance of Zhongjiang Trust in recent years and frequent project defaults have increased the attention of its equity transfer, which also made the exposure at that time. The not high Cedar Holdings has been hearing a lot of outside noise since it negotiated with Zhongjiang Trust.

    Zhang Jin said frankly that he initially had his own concerns about the acquisition of Zhongjiang Trust: "One is that the price is high, it will bring financial pressure to the company in the short term; the second is that the company has insufficient financial talents and project reserves." But in the end, Zhang Jin took this step. From the content of the speech, in addition to convinced that the company has sufficient strength to build a sound development system, the reason for Zhang Jin’s temptation is that the real global comprehensive Industry groups must have the financial sector as a support, and having a mainstream financial license as early as possible is crucial to the long-term development of the company's industry. The trust license is currently the most scarce category in the total financial institution license. The holding of Zhongjiang Trust is equivalent to one of the 68 trust licenses currently available in the country.

    In fact, the suspicion came not only from the outside world, but also within the Cedar Holdings. The reason for opposing the other party is that "the current situation is financial de-leverage, and financial licenses are on a depreciating track, which may not be as effective as we think."

    After expressing respect for this opinion, Zhang Jin also expressed his views, saying that "national regulation and control always have a relaxation." It is important to do business review, but it needs more reverse thinking at critical moments, and we must firmly believe in the blue ocean strategy. Keep calm when competition is fierce, and when the public thinks that the license is on the depreciation track, it can be laid out.

    However, in the new strategic goal of the five-year plan (2017-2021) released on New Year's Day in 2019, Cedar Holdings did not mention the financial services sector in the original six industries, but restructured into five major industries, specifically: In 2021, Cedar will build a world-leading comprehensive industrial group, serving 200 million people, connecting 30,000 companies, rebuilding four major industries, and focusing on the development of the fifth sector social welfare service industry.

    After the release of the above new strategy, the outside world began to talk about it: Why did the approval of the acquisition of the trust company just withdraw the financial services sector from the strategic objectives? Does this show the signs of its equity deal with Zhongjiang Trust?

    Regarding the above-mentioned doubts, Zhang Jin explained in his internal speech: "The financial industry does not appear in the form of an independent sector. It does not mean that the financial business will be weakened. Its importance in the Cedar industry system is even more prominent. Because we will finance The business is fully integrated into various industrial sectors, making it an important support for the development of Cedar Industries. The most realistic role of having a trust license is to enhance our industrial chain financial services capabilities, especially for our supply chain finance.

    Cedar Holdings "falls from the sky"?

    An unfamiliar world top 500 company, coupled with recent mergers and acquisitions, the original obscurity of Cedar Holdings is gradually exposed to the spotlight, the media is more and more concerned about nature, of course, there are many negative reports.

    After an objective examination of the pressure of public opinion, Zhang Jin attributed the problem to "the degree of publicity of the enterprise is not enough. The outside world knows cedar, but may not understand cedar," and said it was "suspicious, suspected, questioned, for the first mover." Innovators and minorities are the processes that must be grown."

    At present, the development path of the “watertight cabin” mode that Cedar Holdings has taken is a minority, that is, the “limited and plural” layout in which multiple main businesses are parallel and mutually separated and promoted. This balanced development model does not advocate supernormality. Expansion, but focus on the complementary effects of the industrial chain, reduce the overall risk of the enterprise, and win with a steady growth against the cycle.

    In his internal speech, Zhang Jin also responded to the misunderstanding that "Cedar fell from the sky", saying that "Cedar is not falling from the sky. Cedar has experienced nine deaths and has been spelled out for decades." After the securities, real estate, In the three fields of foreign trade, the pains of many transformations, Cedar Holdings has the abundant capital and strength of today, and all industries have their historical origins, and they are not blindly expanding.

    In 1997, after witnessing the prosperity of Hong Kong real estate, Zhang Jin created the Junhua Group Co., Ltd. (formerly known as “Junhua Group”), using the proceeds from the purchase of the shareholding system to reform the internal shares of the company. Then focus on real estate development. However, the initial progress was not smooth, the difficulties in handling the procedures, the progress of the project was not smooth, and the problems of not being able to sell after the completion of the house came one after another. Zhang Jin used the "dark moment of life" to describe the time.

    Perhaps it was dark enough to see the starlight. During the real estate industry, Zhang Jin discovered that steel was scarce at that time, and the profit margin of construction materials was enormous. So since 2002, he has tried to enter the commodity field and started to engage in metal futures and international trade. At this time, it was the opportunity for China to join the WTO. After four years of development, the company's exports of aluminum products ranked among the top 20 in the country in 2006, and the aluminum trade volume ranked first in the country. To a certain extent, Zhang Jin’s move to lay out commodities in the past was also called by the peers as a god of foresight.

    However, the Junhua Group's bulk commodities business has also faced the dilemma of investing in fraud, cooperating with customs inspections and stagnating business. In addition, after the bulk commodities moved from the seller's market to the buyer's market, the profit of the single variety became thinner. Junhua Group had to transform into a comprehensive supply chain service, and in the upstream and downstream business of integrating the supply chain, it developed its own new chemical industry. Material section.

    As for the vigorous development of the cultural tourism and community intelligence services business, they are born out of the real estate industry. In addition to optimistic about the industry itself, Zhang Jin is also considering the market space of real estate is getting smaller and smaller.

    When reviewing the past, Zhang Jin said frankly, "We basically made the mistakes that all enterprises will make, and have suffered from the pains that all enterprises have eaten," and they do not agree with the praise of the "what is like God", emphasizing " Our repeated transformations are all forced by the market." According to the "cedar model" practiced by the company, the top three in the segmentation field cannot be achieved. If the head breakout cannot be achieved, it is necessary to adjust or withdraw in time. Behind this decisive decision is the "watertight compartment" business layout. convoy.

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    Editor in charge: Lu Shan RF10057

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