Feng Yu had planned to set up a holding pany a long time ago. He had invested in too many panies and had bee difficult to manage. It will be easier to manage if he consolidates all the shares under one pany. The holding pany will set the directions and have control over the subsidiaries and do not need to get involved in the operations.
Most of the top panies in the world are holding panies. For example, ExxonMobil has lots of subsidiaries under them.
With a holding pany, the panies’ finances can be consolidated and strengthen the bonds between the panies.
There is another benefit of having a holding pany is the lower taxes.
But Feng Yu thought about this and felt having a holding pany is not enough. He has too many assets and should set up a holding pany in China, and another one for his overseas assets. 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 e 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 plete 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 pany from its name, but what is this pany 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 panies’ shares in China under one holding pany. But I don’t have time to manage it and would like to invite you to be the Chairman of this pany.”
“You are talking about all the panies’ 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 pany’s shares to exchange for shares in this holding pany.”
Feng Yu had thought about this. In China, only two people, Liu Chuanzhi and Zhong Qingxian are suitable to run this holding pany. 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 panies?” Zhong Qingxian is tempted. If he can help Feng Yu manage all his panies, it will be good for Lehaha’s development, and at the same time, get a share of profits from the other panies.
“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 pany, Bing City Pharmaceutical Enterprise, Quanjude Group, Tai Hua Trading, Tai Hua Processed Food pany, Tai Hua Battery pany, Wind and Rain Design, Wind and Rain Security, Tai Hua Consulting, etc., my father’s assets, and also the overseas beverage alliance, joint venture electronic factories, etc.”
Zhong Qingxian was stunned. These panies’ shares will all be managed by this holding pany?! This means that Tai Hua Holding Corporation will bee a super conglomerate. It will be China’s first privately-owned holding pany!
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 panies 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 pany, and his status will reach another level.
“How is it? Old Zhong, join me. You can use your Lehaha shares to join this pany, and I will give you some management shares of this pany. You will own 2% of this holding pany’s shares!”
2% shares?!
Based on Zhong Qingxian’s estimation, his Lehaha’s shares are only worth slightly more than 1% of this holding pany, 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 pany, and you should have lots of talented managers in your panies.”
“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 pany has?”
“You will have full decision-making powers, except changing the subsidiaries’ share proportions. As usual, I will not interfere with the pany’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 assistants. The pany can afford to hire them, and if they perform well, I will give them a high year-end bonus!”
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