The Story Of Zheng Yonggang, Founder Of Shanshan Company

Ten years ago, in the heyday of the clothing industry, Shanshan Co., Ltd. laid out new energy ahead of time and won the golden period of its own development.

Ten years later, competition in the new energy industry intensified, subsidies declined, and the company's profitability declined.

How will Shanshan share go in the next transition period? Zheng Yonggang, the founder of the company, returned to the world and gave the answer with a big M & A of 5.3 billion yuan.

Zheng Yonggang comes out again

After 13 years of fading out of Shanshan shares, Zheng Yonggang, the company's founder and 62 year old, came out again.

On the 28th, the board of directors of Shanshan (600884. SH) held a meeting and passed a series of personnel change motions. Among them, Zheng Yonggang succeeded Li Zhihua as the chairman of the listed company. In May this year, Li Zhihua just took over the post from Zhuang Wei. The chairman and the general manager shoulder the responsibility. After the personnel change, he became a full-time general manager again.

Zheng Yonggang is a native of Ningbo, Zhejiang Province. He graduated from high school at the age of 18 and joined the army. He was demobilized three years later. When he was 31 years old, he took over the Yonggang garment factory, which had a loss of ten million yuan, and renamed it "Shanshan", opening up his own business empire.

People familiar with Zheng Yonggang evaluate him as "easygoing and arrogant", and Zheng's self-evaluation is "the forthright of northeast people, the vigorous action of soldiers, and the sensitivity and shrewdness of Zhejiang merchants to commerce"

Zheng Yonggang is known as "general Barton of the clothing industry". He has a keen sense of business sense. In every stage of the development of Shanshan, he can always find business opportunities for the first time.

In the 1980s, when most Chinese people's pursuit of clothing was still in the primary stage of cleanliness and neatness, and small tailors' shops were in full swing, Zheng Yonggang foresight and without hesitation led the company to carry out the brand clothing strategy, making Shanshan into a domestic suit.

In 1996, Zheng Yonggang pushed Shanshan into a share, becoming the first listed company in China's clothing industry. Before 1998, the sales volume of Shanshan brand clothing was 7 consecutive times, and its comprehensive market share was as high as 37.4%. It is a well deserved brand of clothing.

As a business strategist, Zheng Yonggang's most proud strategic layout was that he found out the new energy field for Shanshan shares, and had a firm foothold ten years ahead of schedule. When the domestic clothing industry into a downward period, Aihong, Shanshan shares to enjoy their own golden decade.

In June 2007, the layout of the company's new energy industry was stable. Zheng Yonggang announced that he would resign from the position of chairman of Shanshan shares and put more energy into Shanshan Group and Shanshan holdings.

Zheng Yonggang is back in charge of Shanshan shares. Where will the company go? The answer is given by Shanshan shares, which are being promoted by luxury buying.

5.3 billion M & A

In June this year, Shanshan issued a major asset purchase plan to acquire LCD polarizer business and related assets of LG Chemical in mainland China, China Taiwan and South Korea, and obtain 70% equity of the underlying assets with a consideration of 5.34 billion yuan.

Prior to the transaction, the core business of Shanshan was the R & D, production and sales of lithium battery materials. Due to the company's early layout in the industry, it has formed three major lithium battery material manufacturers spanning cathode, anode and electrolyte, and is one of the comprehensive suppliers of lithium battery materials in China.

LCD polarizer is one of the key materials of LCD panel, which is widely used in consumer electronics such as TV, computer, mobile phone and so on.

In the view of Shanshan, China has become the fastest growing LCD market in the world. As one of the core materials of the panel, the demand for polarizer is increasing steadily.

Shanshan said that through this acquisition, it entered the LCD polarizer market dominated by only a few companies in the world, and continued to maintain the leading position of LG Chemical in the LCD polarizer market, and used its key solutions and technologies to expand its market share. At the same time, the localized production of polarizer will help to improve the self-sufficiency rate of polarizer business in China, further improve the industrial layout, and enhance the overall competitiveness and sustainable development ability of the company.

According to the public information, the business income of LCD polarizer business to be acquired by Shanshan shares in 2019 is 8.954 billion yuan, and the net profit is 623 million yuan.

This transaction involves a large amount of money. As of the end of August this year, the monetary capital balance of Shanshan shares was 3.213 billion yuan. It is difficult to complete the acquisition with its own funds. At the same time of the acquisition, the company launched a non-public offering of shares to raise funds, as well as syndicated loans.

These tasks are complicated and need a strong person to promote them. Zheng Yonggang, the company's founder and actual controller, is undoubtedly the most suitable candidate.

In order to raise funds for asset acquisition, Shanshan has made many preparations. The board of directors of the company has passed a resolution to apply for a merger and acquisition loan of no more than 3.2 billion yuan from the consortium led by China Merchants Bank. At the same time, Shanshan Group and Shanshan holdings plan to invest 3.1 billion yuan to participate in the fixed increase of listed companies.

Transformation and re transformation

It is Zheng Yonggang's unique vision and persistence that created the "golden decade" of Shanshan shares.

In 1997, when the company was still immersed in the joy of listing, Zheng Yonggang had predicted the existence of the crisis in advance. He knew very well that the basic reason why the clothing of Shanshan sold well in the early years was the shortage of commodities. "Once the country and the market are opened, what will Zara do at your door?"

Zheng Yonggang planned the transformation ahead of time, and urgently needed to find a new outbreak point for Shanshan shares.

He came to Shanghai from Ningbo and found a new thing lithium battery material.

At that time, China's anode materials were only a 863 project undertaken by Anshan Thermal Energy Research Institute, far from industrialization. Of course, Zheng Yonggang does not know technology, but with his keen sense of smell, he believes that this represents the future trend.

He took Shanshan shares to re inject lithium battery materials, and even continued to invest with the hard money earned by selling clothes. At that time, China's real estate industry was in full swing, many peers joined in it and made a lot of money. Zheng Yonggang is absolutely unmoved and firmly believes that only science and technology can develop for a long time.

With the popularity of smart phones and the rise of new energy vehicles, lithium battery materials ushered in the outbreak period, and Shanshan shares became bigger.

The sense of crisis has always been accompanied by the sense of crisis. In recent years, the company has successively extended its investment into the fields of energy storage, charging pile, design and research and development of new energy vehicles, trying to lay out the whole industrial chain of new energy to disperse risks.

However, the market competition intensifies, new energy subsidies decline and other adverse factors, leading to the company's product prices and gross profit margin continued to decline, the pressure on Shanshan shares doubled.

In May this year, when he just took office as the chairman of the company, Li Zhihua once told the media, "in a sense, Shanshan got up early in the morning, and also met with the time of.., and made numerous achievements, but did not play the market effect of.."

The performance of the company's share price in the secondary market is not satisfactory, and the share price is far lower than that of its peers. He attributed this to the detour of industrial layout and the failure of strategy to fully focus on the main business of lithium battery materials.

This year, the company focused on the industry, and even stripped off the established clothing industry to show its determination.