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Chapter 1005 – Tai Hua Holding Corporation
Feng Yu had planned to set up a holding company a long time ago. He had invested in too many companies and had become difficult to manage. It will be easier to manage if he consolidates all the shares under one company. The holding company will set the directions and have control over the subsidiaries and do not need to get involved in the operations.
Most of the top companies in the world are holding companies. For example, ExxonMobil has lots of subsidiaries under them.
With a holding company, the companies’ finances can be consolidated and strengthen the bonds between the companies.
There is another benefit of having a holding company is the lower taxes.
But Feng Yu thought about this and felt having a holding company is not enough. He has too many a.s.sets and should set up a holding company in China, and another one for his overseas a.s.sets. This way, he can also diversify his risks.
“Old Zhong, are you in Hangzhou? I need to discuss something with you.” Feng Yu called Zhong Qingxian before flying over to Hangzhou.
……
“Manager Feng, why did you come over so urgently? Did anything happen? Is it about our overseas sales?”
“No. I am here to discuss two things with you. We had agreed that Lehaha would sell Jianlibao’s shares to me, and I will sell Jianlibao’s Lehaha shares back to you.”
“No problem. We can complete sales anytime.” Zhong Qingxian has money now, but he did not spend it lavishly. He had been saving up to buy back Lehaha’s shares.
“Secondly, I want to invite you to join Tai Hua Holding Corporation!”
Tai Hua Holding Corporation? Zhong Qingxian frowned. He knew this must be Feng Yu’s company from its name, but what is this company dealing with? Why is Feng Yu inviting me to join?
“Manager Feng, I don’t understand what you mean.”
“I had decided to consolidate all my companies’ shares in China under one holding company. But I don’t have time to manage it and would like to invite you to be the Chairman of this company.”
“You are talking about all the companies’ shares you own in China?!”
“Yes. I will transfer all the shares I own in China, including some overseas investments, to Tai Hua Holding Corporation. I can even set up the headquarters in Hangzhou to make it easier for you. If you are willing, you can also use your company’s shares to exchange for shares in this holding company.”
Feng Yu had thought about this. In China, only two people, Liu Chuanzhi and Zhong Qingxian are suitable to run this holding company. However, Lenovo is in its development stage, and Liu Chuanzhi is required to oversee everything. Lehaha is different, and Zhong Qingxian can let his men handle its daily operations.
“What are the companies?” Zhong Qingxian is tempted. If he can help Feng Yu manage all his companies, it will be good for Lehaha’s development, and at the same time, get a share of profits from the other companies.
“Lenovo Group, Wind and Rain Electronics, Wind and Rain Home Appliances, Aiwa Electronics, Aiwa Home Appliances, Aiwa Little Tyrant, Lehaha, Chinese Beverage Enterprise (Jianlibao), Tai Hua Supermarket Corporation, Bing City Machinery Company, Bing City Pharmaceutical Enterprise, Quanjude Group, Tai Hua Trading, Tai Hua Processed Food Company, Tai Hua Battery Company, Wind and Rain Design, Wind and Rain Security, Tai Hua Consulting, etc., my father’s a.s.sets, and also the overseas beverage alliance, joint venture electronic factories, etc.”
Zhong Qingxian was stunned. These companies’ shares will all be managed by this holding company?! This means that Tai Hua Holding Corporation will become a super conglomerate. It will be China’s first privately-owned holding company!
Zhong Qingxian calculated the value of his Lehaha’s shares. If he used his Lehaha’s shares to exchange for Tai Hua Holding’s shares, it would be too little.
The profits of some companies are higher than Lehaha, but some make lesser than Lehaha. Overall, Zhong Qingxian will not suffer any losses if you exchanged his shares.
Also, Zhong Qingxian will get to manage a huge company, and his status will reach another level.
“How is it? Old Zhong, join me. You can use your Lehaha shares to join this company, and I will give you some management shares of this company. You will own 2% of this holding company’s shares!”
2% shares?!
Based on Zhong Qingxian’s estimation, his Lehaha’s shares are only worth slightly more than 1% of this holding company, and Feng Yu is now doubling it!
“Manager Feng, don’t you think 2% is too much?”
“It’s not a lot. Your talent is worth this price! But you will be very tired in the future, as your workload will increase tremendously. Ten years. Just help me for ten years, and I will get someone to take over this position. At that time, you can decide if you want to retire.”
“Why me? I know that your Brother-in-law is also good at managing his company, and you should have lots of talented managers in your companies.”
“Because I think you are one of the most suitable candidates. Your ability, experience, character, connections, status, etc. are most suitable for this role.”
One of the most suitable candidates? Zhong Qingxian asked curiously. “If I don’t agree, who will you look for?”
“If you don’t agree, I will ask Liu Chuanzhi to leave Lenovo to help me. But now, I am inviting you.” If Liu Chuanzhi also rejects Feng Yu, Feng Yu can only ask Duan Yongping.
“Manager Feng, how much power does the Chairman of this company has?”
“You will have full decision-making powers, except changing the subsidiaries’ share proportions. As usual, I will not interfere with the company’s operations, and you can appoint the management team. I will only appoint the Chief Financial Officer.”
The authority Feng Yu given Zhong Qingxian was out of his expectations. This is different from Lehaha. Zhong Qingxian had founded Lehaha, and Feng Yu is only the investor. But this Tai Hua Holding belongs to Feng Yu, and Feng Yu is the overall main shareholder!
Feng Yu sat opposite Zhong Qingxian and waited patiently for his decision. He is confident that his offer is enough to move Zhong Qingxian.
“Manager Feng, Tai Hua Holding Corporation is not suitable to be set up in Hang Zhou. Beijing or Shanghai is more suitable.” Zhong Qingxian said.
Feng Yu was overjoyed. “Old Zhong, you accepted my offer?”
“How can I reject such a good offer? Seems like my workload will increase tremendously in the future.” Zhong Qingxian laughed.
“Hahaha…. You can hire a team of deputies or a.s.sistants. The company can afford to hire them, and if they perform well, I will give them a high year-end bonus!”
