Chapter 1256 - Tai Chi
Chapter 1256 – Tai Chi
Zhong Qingxian looks at Steve, who was in a daze, and thought he is thinking of what questions to ask. He smiled and replied. “Sure.”
“As the CEO of Tai Hua Holdings, do you own any shares?”
“Of course.” Zhong Qingxian thought to himself. I had used all my shares in Lehaha to invest in Tai Hua Holdings, and Tai Hua Holdings is the major shareholder of Lehaha!
Zhong Qingxian will never agree in the past. But when Feng Yu invited him sincerely, he realized he had benefited from this merger.
Zhong Qingxian is also not getting a salary as the CEO of Tai Hua Holdings. But he will get paid in shares every year. The shares cannot be bought with money, and the dividends are a large amount.
“We had asked around. Feng was overseas most of the time, and you are the real person in charge of Tai Hua Holdings, right?”
Zhong Qingxian hesitated and shook his head. “You can think of me as a professional manager. Tai Hua Holdings is a shareholding company, and Mr. Feng is the Chairman and also the biggest shareholder.”
Steve is slightly disappointed. If Zhong Qingxian agreed with him, he could deduce there are not many shareholders in Tai Hua Holdings and can estimate Zhong Qingxian and Feng Yu’s assets.
Steve felt his question was too direct, and Zhong Qingxian found out his motive. That’s why he could not get the answer he wanted.
Professional manager. Wind and Rain Holdings’ Kameda Masao had also given this answer. But Kameda Masao’s assets are rumored to be over 1 billion USD.
Can a professional manager earn so much? He must also be a shareholder of Wind and Rain Holdings.
“Zhong, from what we found out, you are the founder of China’s biggest beverage company, Lehaha Group, right?”
“I had set up Lehaha with two friends, and they are still the shareholders and directors of Lehaha Group. They are currently in charge of Lehaha’s production and procurement.”
“Then how did Feng become Lehaha’s shareholder?” Steve smiled.
“We need investment, and Mr. Feng has funded. So, we accepted his investment.”
“Why didn’t Lehaha Group get listed to raise funds or get a venture capitalist to invest? This way, you will not lose control of your company.”
Zhong Qingxian’s eyes narrowed. How come this question is like trying to sow discord between him and Feng Yu?
“At that time, we still have not met the requirements to be listed, and China’s financial market had just started. Also, we don’t have venture capitalists in China during that period. The international venture capitalists are not willing to come to China. As for losing control over the company, I think you are mistaken. Since Lehaha was formed, I have always been the decision-maker.”
Huh? Zhong Qingxian is the decision-maker?
Steve is puzzled. Is the information he collected inaccurate? Feng Yu is the biggest shareholder of Lehaha, but Zhong Qingxian should not lie about this.
Seems like Forbes should increase the number of reporters station in Asia to collect information. There are too many mistakes, and they even got the biggest shareholder of a company wrong.
Steve doesn’t know that Feng Yu and Zhong Qingxian had an agreement. Feng Yu will not interfere with Lehaha’s operations. That’s why Zhong Qingxian has always been the decision-maker for this company.
“I heard that since you become the CEO of Tai Hua Holdings, Lehaha Group becomes China’s biggest beverage company. Before that, it was Jianlibao Group. I had tried their beverages, and it tastes good.”
After hearing Hu Ran’s translation, Zhong Qingxian did not show any expression. It was as if he did not hear the underlying meaning of the question.
“Jianlibao has too few products. Just the product sales alone, Jianlibao is still China’s top-selling beverage. Its top product sales volume is more than a few of Lehaha’s products combined. Lehaha can become China’s top beverage group is because we have a wide variety of products and have more factories. That’s why our total sales volume is higher.”
“It is a coincidence for Lehaha Group to overtake Jianlibao after I become Tai Hua Holdings’ CEO. Jianlibao and Lehaha in China are the equivalents of Pepsi and Coca-Cola in the US. Some people will think both tastes the same, but others prefer one brand to another. But both are still popular, right?”
Zhong Qingxian managed to defuse Steve’s tricky question, and Steve realized it is not easy to trick the Chinese. He had belittled the Chinese. Zhong Qingxian can become the CEO of Tai Hua Holdings means he is capable.
Steve’s tricks might be useful against those new tycoons, but it is useless against a cunning fox like Zhong Qingxian. He decided to stick to his original plan to estimate Tai Hua Holdings’ assets through him.
“Zhong, Tai Hua Holdings’ subsidiary, Bing City Machinery Manufacturing Group, is China’s biggest automobile, motorcycle, and electric bicycle, manufacturer. Is this because of Tai Hua Holdings’ leadership?”
“It’s the opposite. Tai Hua Holdings has never interfered with Bing City Machinery Manufacturing Group because we are only a shareholder. Bing City Machinery Manufacturing Group is a state-owned and private join company. Its Chairman is a retired Government Official.”
Zhong Qingxian is also cunning. He had purposely said this to mislead Steve. Anyway, Steve has no way to find out.
Steve frowned. Damn! This information is wrong again!
“Then what about Bing City Pharmaceutical Group? China’s biggest pharmaceutical company that sells Viagra. Are you all holding the controlling stake?”
“No. We are only a shareholder of that company. It is the State that holds the controlling stake. Also, Bing City Pharmaceutical Group is not China’s biggest pharmaceutical company. China’s biggest pharmaceutical company in Shanghai Pharmaceutical.”
Zhong Qingxian said in his heart. Bing City Pharmaceutical Group had lost to Shanghai Pharmaceutical in terms of sales volume. Still, their profits had exceeded them by a lot last year. Also, Bing City Pharmaceutical Group’s financial status is better than Shanghai Pharmaceutical. Shanghai Pharmaceutical is still in debt. This year, Bing City Pharmaceutical Group should become the top pharmaceutical company in China.
“There is another company called Beidacang Group. It is Asia’s biggest agriculture company. Are you all also a shareholder of it?”
“That’s right. We are a shareholder of that company too. I have to admit I will fail if I am put in charge of that company. I am not familiar with the agriculture industry.” Zhong Qingxian replied.
“You all should be the controlling shareholder of Wind and Rain Electronics, right?”
“That’s right. But Wind and Rain Electronics, Wind and Rain Home Appliances, and other companies have high outstanding loans. I am troubled with the annual interest. The interest is not a small amount.” Zhong Qingxian replied with a despaired expression.
Steve is puzzled. These few electronics and home appliance companies have high outstanding loans? That means the tangible assets of these companies should be discounted.
Steve continued with his questions but did not get the answers he wanted. Zhong Qingxian is a master with Tai Chi, as he had been dealing with the Government for years.
Translator’s notes: Tai Chi is Chinese martial art, but it has another meaning. Tai Chi can be used for various things, most notably at a workplace where everyone is “pushing” their responsibility to others. And others resist, deflect, channel the force back or to another victim, and so on.
Shanghai Pharmaceuticals