Chapter 824 – Li Jingwei’s plan
“Manager Li, what do you mean?” Feng Yu quickly asked.
There are lots of ways to invest. Feng Yu wants to know what sort of investment Li Jingwei is talking about. If Li Jingwei is willing to help, Feng Yu will have no problem getting a stake in Jianlibao. He might even get the controlling shares in the company.
“Manager Feng, as the biggest shareholder of Lehaha, you can let Zhong Qingxian continue to manage the company, will you let me and my team continue to run Jianlibao after you become Jianlibao’s shareholder?” Li Jingwei was looking at Feng Yu. If Feng Yu shows any hesitation, he will change his mind.
“You might not believe that I say. Since a few years ago, I had let other people manage my companies. Even the Chairman of my listed company is someone else. You might think there are some agreements between them and me. But there are no agreements. I am really lazy to manage those companies. Look at me now. As one of the directors in Microsoft, I am not working in the Seattle headquarters, but in New York.”
Feng Yu had never thought of replacing Li Jingwei even if he had fully acquired Jianlibao. Instead, he will use some of the company’s shares to hire Li Jingwei. Li Jingwei can develop Jianlibao to this scale within 10 years. This proves a lot about his capability.
Feng Yu knew he is not as good as Li Jingwei. Since he is so capable and the management team is set up by him, then it should be like what happened at Bing City Machinery Company. After Li Jingwei retires, Feng Yu will still hire him to train a successor.
Feng Yu’s reply was very straight forward, and Li Jingwei was overjoyed. “That means you agree with my condition?”
“Why not? But I have a condition. The management team must consist of elites and lean. I don’t want to see those staff who got in using their connections. Also, the headquarters of Jianlibao is too rural. I think it should be moved to somewhere like Shenzhen or Guangzhou Cities. The higher-ups should support this, right?”
If Feng Yu did not have any request, Li Jingwei would be suspicious. But after listening to Feng Yu’s demands, Li Jingwei firmly believes that Feng Yu will let him hold the reins of the company.
Li Jingwei was pleased that the two conditions set by Feng Yu were what he wanted too. But because he does not own any shares of the company, he could not do anything about it.
If Jianlibao could be restructured, then he will be able to change the company. These two problems are the biggest challenge faced by the company!
“Manager Feng, I promise you that I will settle these two problems, and you must keep to your words!” Li Jingwei said.
“Manager Li, what we discussed is not important now. I am very curious about how you are going to let me invest in Jianlibao? From what I know, Jianlibao is a 100% state-owned enterprise. You don’t even own a single share, right?” Feng Yu asked.
Li Jingwei felt his blood boiling when he heard what Feng Yu said. That’s right. Li Jingwei does not own any shares of the company, but without him, Jianlibao will not exist. Is this fair?
“Manager Feng, let me tell you a story.”
Feng Yu picked up his drink and relaxed on the sofa with an interested look.
“Jianlibao is marketed as a sports drink, and all promotions are related to sports. In 1990, Jianlibao, a Singapore company, and an Olympic gold medalist, Li Ning, set up Jianlibao Sports Apparel company. Jianlibao owns the controlling stake of this company and the brand of the sports apparel is Li Ning!”
Feng Yu raised his brows. In his previous life, he had heard Li Ning brand was formerly one of Jianlibao’s subsidiary brands. But he was not sure how Li Ning got separated from the parent company. It seems like he will get the answer today.
Feng Yu opened up a cigar box on the side table and took out 2 cigars. After roasting one cigar, he passes it to Li Jingwei. “Try this. The taste is different from cigarettes.”
Li Jingwei took the cigar, and Feng Yu start roasting the other one, before returning to the sofa. “Manager Li, continue with your story ah…”
Li Jingwei was stunned and felt Feng Yu was like a judge of a storytelling competition. He even lit a cigarette… no… a cigar.
“Li Ning’s development is quite good, and after he got famous during Guangzhou’s Asian Games, the sales grew by several folds. The potential of this company is enormous. Two years ago, Li Ning met Beijing’s restructuring expert Liu Jipeng and he told Li Ning that if the company’s ownership is not clear, it will limit the company’s growth severely. He encouraged Li Ning to cut ties with Jianlibao.
Feng Yu raised his brows. So, this is the reason for Li Ning’s separation with Jianlibao. He still though Li Ning was not only good at gymnastics, he was also good at business. It was because Li Ning had consulted an expert.
“During the 1988 Olympic Games, Li Ning had made a mistake and lost the gold medal. This mistake made Li Ning fall from grace, but I gave him a helping hand at that time, and he is very grateful to me. He was afraid that others will see him as someone ungrateful and came to look for me. He even promises to give me some of Li Ning company’s shares.”
“Jianlibao Sports Apparel Company is a subsidiary of Jianlibao after all. As the General Manager, I still have lots of authority over the company. I supported Li Ning’s decision and represented the company to sign an agreement with Li Ning. Li Ning will return 16 million RMB which Jianlibao corporation invested over 3 installments, and nothing was mentioned about the growth of the shares’ value.”
Feng Yu’s jaws dropped. This is like using Jianlibao’s money to buy out Jianlibao’s shares!
“After that, Jianlibao Sports Apparel was officially renamed as Li Ning Sports Apparel. Last month, this company moved from Guangzhou to Beijing and even got to sponsor some apparel for this year’s Olympic team. I think Li Ning’s growth will be tremendous after this year.”
Feng Yu thought to himself. You are right. Before 2008, Li Ning Brand’s sales and profits have been rising annually. 2008 was the down period for Li Ning Brand and it recovered after that. The assets of Li Ning, the person himself, kept increasing. This will not happen if the Li Ning brand was still under Jianlibao.
Wait. Li Jingwei’s story is telling me that he still has control over Jianlibao? But even if this is so, selling away a subsidiary and selling the shares of the company are two different things. Will the local government agree?
“Manager Feng, you mentioned that I had build up Jianlibao by myself. Can I say that I made the most contribution to Jianlibao?”
“Of course. Without you, there will be no Jianlibao.” Feng Yu replied.
“Then why am I not allowed to restructure Jianlibao into a shareholding company and buy the shares as one of the management staff? I had borrowed money from Li Ning. But now, I have an idea. The government is currently trying to attract foreign investors, and Jianlibao, one of China’s most prominent state-owned enterprises must follow suit.” Li Jingwei said with a sparkle in his eyes.
Foreign investor? I am considered a foreign investor? That’s right. My identity is now a Hong Konger. Why can’t I be a foreign investor? I can also use my US company to invest in it. It is also considered a foreign investment. But how come this method seems so familiar?
