The Expansion Strategy Of Hai Wang

Shenzhen is a city full of entrepreneurial stories.

The story of Hai Wang is one of the classics.

From 4 billion years ago, a small listed company with a total assets of over $1 billion 700 million and a net asset of nearly $1 billion 700 million, the growth path of Hai Wang is full of magic.

In recent years, some professional organizations have listed "China's 50 most powerful potential listed companies" and "100 most growing listed companies".

The king of the sea is very impressive.

Many people are trying to see the secret of the success of the sea king.

The success factor is undoubtedly multiple.

But after reading the sea king, we find that the story of Hai Wang is basically connected by a series of mergers and acquisitions.

Through the acquisition and merger of foreign countries, the rapid expansion of enterprise scale and efficiency constitutes the main thread of the development of Neptune.

It is clear that the king of the sea is going to be an expansion mode that many enterprises are practicing now.

But not all businesses are as lucky as Neptune.

The number of enterprises that were once very popular was that they failed in a big expansion due to carelessness.

What is the expansion idea behind the sudden emergence of Neptune?

What kind of strategy is adopted?

How can we maintain the stamina of sustainable development while enterprises are expanding at a high speed?

Today, in the wake of the wave of mergers and acquisitions, it is of great practical significance to explore these issues, whether it is to the Neptune itself or to the peers of the sea king, and to the socialist market economic system that our country is trying to improve.

It is a common dream of many entrepreneurs to expand rapidly through diversification.

But blind expansion can be a nightmare.

From the four sides to the timely contraction of the front line, the king of the sea regressed from a diversified mire to a rational return.

The growth of Wang Hai Wang is not a smooth road.

In the initial stage of development, Hai Wang had gone through a detour in the process of expansion.

In the late 80s of the 20 century, a young man named Zhang Simin was inspired by a best-selling book, the third wave, and turned his entrepreneurial eyes on the deep ocean.

From that book, he learned that biology originated in the ocean, and marine bioengineering is one of the most potential industries in the future.

In July 8, 1989, Zhang Simin resigned from public office and took out only 3000 yuan in savings. He founded his own company in several private houses along the coast of Shekou.

At the beginning of the establishment of the company, Zhang Simin gathered around such a group of people: several young college students, several inexperienced postgraduates, and several recruited researchers.

Zhang Simin led the first entrepreneurs of the sea king to clean up a pile of things that he picked up from the sea day and night: oyster.

What they want to do is extract the essence from the oyster and pform them into a granular capsule -- this is the famous Golden oyster in the national health care market in the future.

With numerous twists and turns, with the support and help of famous scientific research institutions in China, in June 1990, the "golden Oyster", the sea nourishing health product that filled the gap in China, shone with its unique efficacy, brand new concept and advanced marketing methods.

In the year of listing, the "golden Oyster" realized sales of millions of dollars; in 1991, the snowball rolled to 30 million; in 1992, the snowball expanded to one hundred million.

In just a few years, Hai Wang's asset dramas rose to several hundred million yuan.

Hai Wang has become a star enterprise. Zhang Simin himself has won the honorary title of "Shenzhen model worker", "outstanding communist party member of Shenzhen", "outstanding young people in Guangdong" and "outstanding young entrepreneurs all over the country".

The success of Zhang Simin made him more ambitious.

Like other private entrepreneurs in the same period, Zhang Simin eagerly waved the banner of diversification and attacked all sides.

Sea King's tentacles cover many fields: real estate, tourism, culture, food, clothing, electrical and mechanical, VCD, information......

Some people comment on the expansion mode of Hai Wang at that time: one idea set off a passion, and a burst of impulse created an industry.

By 1993, there were four or fifty businesses in the company, and some enterprises were not even clear about Zhang Simin himself.

Behind this bustle, there is a terrible crisis lurking.

Zhang Simin discovered that the bigger the stalls were, the more blurred the industrial boundaries became.

Even worse, in the face of too long fronts, the group's management of subsidiaries is also inadequate.

These dozens of subsidiaries across the country, most of the operating conditions are not ideal, 2/3 of the deficit.

As the expansion is too fast, the capital gap is bigger and bigger, and the risk of operation is continuously concentrated on the group.

The trouble is more than that.

The sale of the company's main product "golden Oyster" is also in trouble, not because of poor products, but because of inability to invest again, unable to carry out the fine development of the market.

At the same time, the state implemented macro regulation and control, and the money began to tighten.

At that time, the sea king really fell into a swamp.

Zhang Simin sat in the office on the 28 floor of Hai Wang mansion, and he could hear the songs of Chu.

Zhang Simin realized that the direction of diversification is not suitable for all enterprises, and the foundation is not solid enough to blindly advance.

The development strategy and industrial structure of Hai Wang have reached a point of no adjustment.

In 1995, Zhang Simin held a historic conference on King Hai, which clearly defined the direction of development of the "big pharma" and announced that Hai Wang had entered "the two venture".

After a long period of time, Hai Wang seemed to disappear from people's vision.

Hai Wang is quietly carrying out a difficult but firm self revolution.

A number of subsidiaries which are not related to the main business have been resolutely stripped, though some of them are of very good quality.

The group's three pharmaceutical companies are integrated into a "Sea King creature".

The organizational structure and management system of the group have been reintegrated and the management chain has been greatly reduced.

By simplifying and simplifying, the human resources, material resources and financial resources of Hai Wang have been allocated more effectively.

At the same time, around the theme of "big medicine", a number of major projects which have far-reaching influence on the future development of the sea king have emerged. In early 1995, the "Hai Wang Industrial City", which invested 150 million yuan, was built and put into operation in 1997. In 1998, it passed the GMP certification first, so that the manufacturing system and quality assurance system of Hai Wang reached the international advanced level.

In April 1998, the Sea King Technology Center was identified as a "national technology development center" by the relevant departments, and the marketing system construction of Hai Wang is also proceeding in an orderly way.

In June 28, 1995, the first chain drugstore of Hai Xing Xing opened in Shenzhen and extended to all over the country, becoming the leading brand in the field of pharmaceutical retail chain.

Looking back on the expansion of the "great leap forward" period, Zhang Simin still has a lingering fear: "in the face of sudden success, the confidence of the entrepreneur is easy to expand, and he thinks he can do everything, and invincible.

Embodied in the specific operation is to rush into many areas that they are not good at, but on the road of blind expansion.

Fortunately, the king woke up in a timely manner, and decisively adjusted his strategy and returned to the track of rational development.

The king of the sea clarified the direction of the sea, quietly laying a solid foundation, saving energy and waiting for a new attack time.

The merger and acquisition is not only for the sake of the enlargement of quantity, but also for the enhancement of core competitiveness.

From the pursuit of quantity to the demanding of quality, the goal of the expansion of the sea king is becoming clearer and clearer, and the road is getting more and more solid.

It is the end of 1998 that Hai Wang once again attracted people's attention.

In December of that year, Hai Wang was listed as the first biological concept stock in China's stock market.

During the two years after the listing, Hai Wang has raised two yuan from the stock market for 1 billion 545 million times.

With abundant funds to guarantee, Hai Wang began to brew new merger and acquisition actions.

Compared with its first expansion, the king of the sea is quite different from the starting point or the way of thinking.

If the first expansion of sea king is more of the pursuit of amplification, then this expansion of the sea king's confrontation is more demanding.

The idea of Hai Wang is to focus on the pharmaceutical industry, expand the quality assets through expansion, improve the industrial chain, and comprehensively enhance the core competitiveness of enterprises.

In March of 1999, Hai Wang bio launched its first launch after listing, and spent 13 million 400 thousand yuan on the acquisition of Biotech Corp in Shenzhen.

It is a joint venture of the Chinese Academy of Medical Sciences and several companies. It is a high-tech enterprise engaged in genetic pharmaceuticals. The leading product is alpha 2b gene interferon. The background and market prospects of the company are not to be said, but it is constrained by factors such as capital and system. The bright future is also like the moon in the mist.

In the words of market participants, this is a more cost-effective business.

The net assets of Intel are 11 million 85 thousand and 100 yuan. Hai Wang bought a commercial prospect with unlimited price of 2 million 400 thousand yuan.

This concept can not be overestimated in terms of the value of capital market because of the support of real products.

Securities analysts believe that after a long period of time, the sea king's life in the stock market has unlimited scenery, which is closely related to the concept of the gene.

Of course, what Hai Wang values more is not the concept, but the great potential of Intel.

Relying on the big tree of the king of the sea, the original quality of the British dragon is more powerful.

In 2000, the sale of Intel dragon was only a few million yuan. Last year, this figure has changed to 60 million yuan.

The company's flagship product, alpha - 2 b gene interferon, ranks third in the domestic market, and has become the only product that has been certified for export in the country.

According to Chai Xiangdong, general manager of intelon company, intelon has taken cytokine drugs and vaccines as the two major products in the future. In terms of cytokines, besides the currently listed alpha 2b interferon and interleukin 2 freeze-dried powder injection, it is planned to complete the serialization of interferon products in 2-3 years and become the leading brand of the Chinese interferon market. In terms of vaccines, we should focus on developing rabies vaccine, hepatitis B vaccine, influenza vaccine and other products.

Chai Xiangdong confidently said that in the next two years, the British dragon will usher in a period of great development.

In November of 1999, Hai Wang also staged a big game of "snake swallow elephant", buying the entire group of Hai Wang pharmaceutical company.

At that time, the assets of Hai Wang pharmaceutical industry were more than two times that of Hai Wang.

Because of the interrelated companies, Hai Wang uses very little financial skills to finance assets after first liabilities.

The company is mainly engaged in the research, production and sale of prescription drugs and OTC drugs, and has an independent modern manufacturing system, marketing system and product system. Its main products are "boning" and "Wei Chang", which are two kinds of new drugs in the country. "Lyric", "silver Delphi" and "Ginkgo Biloba Leaves Extract Tablets" have high reputation in the market.

This reorganization has laid a solid foundation for the Wang Wang biology in the pharmaceutical industry. At present, Hai Wang pharmaceutical is the flagship of the king of the sea, the core of sales and profits, and the return on assets is very impressive.

The other two cases of merger and pfer in recent years are reflected in another aspect of the king's demand for asset quality in the expansion.

In November 29, 2003, Hai Wang bio announced that all the shares of the two subsidiaries of Beijing giant New Technologies Inc and Changchun Hai Wang company were pferred to the original shareholders and executives of the two companies.

The giant energy company was a key project after two financing in 2001. At that time, Hai Wang biologically invested 300 million yuan, accounting for 41% of the new energy technology.

Why did the king of the sea withdraw again in less than three years?

At that time, at the time of the demonstration of the acquisition of giant energy New Technologies Inc, the domestic calcium market was booming, while giant calcium was the market star at that time. In 2000, its sales volume reached 500 million yuan, and the prospects were excellent.

However, since 2001, due to the sudden change of the calcium Market and the repetition of the development direction of the giant energy company and the overall development strategy and resource allocation of Hai Wang, he has been reluctant to give up after careful study, and resolutely decided to withdraw from the giant New Technologies Inc and pfer the shares he held to the original controlling shareholder of the company.

According to Liu Zhanjun, general manager of the sea king, Wang Hai was a huge investor at that time, hoping to give investors a good return.

The story of Changchun sea king is another story.

When the king of England was listed in 1998, Changchun sea king was the main body of Neptune.