Spending 210 billion to buy the entire Gree Electric Appliance sounds like a good deal at first glance. After all, there are 125.2 billion yuan in cash on the account, including wealth management products, accounts receivable, inventory, fixed assets, and projects under construction...... This string of numbers is eye-catching to hear. But don't rush into your pocket, the water is deep!
First of all, cash assets are indeed attractive, but don't forget, this is the company's liquidity, and if you move it, Gree's day-to-day operations may be stuck. Besides, although the 7.8 billion wealth management products can bring additional income, investment is risky, and financial management needs to be cautious.
Then, accounts receivable and inventory, these two are hot potatoes. Accounts receivable is the money owed by others, and it is not easy to collect, and if you don't do it well, you have to go to court; As for the inventory, there are a lot of piles, and we have to find a way to sell them quickly, otherwise the capital chain will be tight, and life will not be easy.
Fixed assets and projects under construction sound solid, but the maintenance costs are high, and the projects under construction, who knows what will become in the future, if it is not finished, it will be a big loss.
Looking at the revenue of 205 billion and the annual profit of 27.7 billion that year, it sounds good, but this is the data in an ideal state. Market risk, management risk, industry risk, policy risk, any change in factors may shrink this number.
And, don't forget, Gargamel still has 255.4 billion in debt! This is not a small amount, and once the market conditions deteriorate, these debts will be the last straw that breaks the camel's back.
Speaking of which, I have to mention Yao Yuanwai, who once wanted to eat Gree. What happened to him is simply a lesson from the past. The emergence of catfish millet air conditioners in the market has made Gree face a dilemma: price reduction follow-up, profit loss; If you don't follow up, you lose market share. When I really wanted to buy, I found that the source of funds had become a problem, and I ended up in disgrace.
This matter has to be bigger. With a capital of 200 billion, it is better to buy Gree than to buy NVIDIA, let state-owned assets become shares, boldly reduce holdings and cash out, maybe it can become a good story in the industry. But Gargamel's matter has to be weighed before buying, after all, the glamour on the books may hide huge debts behind it.
Back then, Yao Yuan's external calculation of Vanke's accounts caused a lot of trouble in the end, and the cash flow was broken, which can be remembered. After buying, if the combat center checks back for 30 years and asks you to pay 100 billion in taxes, it will really cost you a loss of your wife and soldiers, and you will have to give it to someone in the end.
Therefore, the 210 billion purchase and sale of Gree seems tempting, but in fact it is a hidden mystery. Invest with caution, otherwise, it may be like the old saying, "stealing chickens is not a recipe for rice". In the business world, you have to have a long-term vision, and you can't just look at the small profits in front of you, otherwise, you may become a negative teaching material in other people's stories.
Having said that, if a businessman is sitting in his office, with various financial statements and analytical data in front of him, his brows are furrowed, and he is carefully weighing whether to spend 210 billion yuan to buy Gree Electric Appliances.
He knew in his heart that it was a big gamble, and if he won, it could be a legend in the history of business; Losing can be a painful lesson. Every report, every number, has a huge stake. He had to consider market risk, management risk, industry risk and policy risk, as well as Gree's huge liabilities and potential tax issues.
But at the same time, he also saw the potential of Gree, and those cash, assets, annual income and profits, are real temptations. Dong Mingzhu's leadership, as well as her love for the company, are intangible assets. If all goes well, you can pay back in four years and have a steady dividend income every year.
The businessman has mixed feelings about the fear of the unknown on the one hand, and the desire for success on the other. He knows very well that the ups and downs of the business sea are sometimes a matter of a thought. But in any case, he had to make a decision, because opportunity never waits for anyone.
In the end, what will he choose? Do you take the leap bravely, or do you choose to stay on the sidelines? It's not just a test of his personal wisdom and courage, it's a great insight into the business world as a whole. After all, in the business world, every major investment decision can change the fate of a person, a business, or even an industry.