This scene more or less reveals some genes of the rapid growth of Yangming Wind Power? He is not only an expert in dealing with political and business relations, but also an excellent dancer in the international capital market.
Chuangwei Zhang is a soldier and a politician. 1993 He resigned? Going to sea? I took out my accumulated salary and collected 12000 yuan to set up Zhongshan Yangming Electric Appliance Co., Ltd., whose main product is distribution box. By 1995, the profit of this small-scale company has reached 500,000 yuan. Different from the mentality of many private enterprises, Chuangwei Zhang always has bigger dreams, and all 500,000 profits are invested in developing new products.
With the help of technological innovation, small enterprises with weak potential have actually achieved the first national market share of single-advantage products. 1998, after accumulating a profit of several million yuan, he once again used all the funds for industrial upgrading: buying land to build a new factory building, and developing high-voltage switchgear with international standards, and the products were upgraded again, becoming the first enterprise in China to develop middle-mounted vacuum switchgear products.
In 2000, more than 3,000 switch enterprises in China were still fighting fiercely. Chuangwei Zhang adjusted the course again and turned to the high-voltage frequency conversion speed regulating device (i.e. high-voltage frequency converter). This is an energy-saving product, which can adjust the speed of high-voltage motor and save energy. At that time, electricity was not tight, and many local governments were still encouraging the use of electricity. Chuangwei Zhang made a forward-looking judgment on the scarcity of electricity, and began to develop energy-saving equipment during the period of surplus electricity, and continuously invested more than 70 million yuan in research and development expenses in the form of Industry-University-Research.
? He either wants money or wants to get things done. Never thought about taking money to enjoy, what to eat or what to eat. ? Colleagues who have followed Chuangwei Zhang for more than ten years evaluate Chuangwei Zhang.
Bet on wind energy
This round of industrial upgrading has enabled Yang Ming to complete the first step of transforming from power transmission and transformation equipment to the core technology of large-scale energy-saving and power electronic equipment. In the past five years, Yang Ming has become the leading enterprise of high voltage variable frequency speed regulation in China, and mastered the core technology of wind power control system.
The new policy in 2005 stipulated that the localization level of wind power equipment should reach 70%. At that time, the market share of foreign wind turbine manufacturers in China exceeded 70%. Faced with hidden industrial opportunities, Chuangwei Zhang thinks that since Yang Ming has accumulated core technology and talent pool in this field, why not do it himself? For us, this is the only chance to set foot in a big industry. Thermal power can't enter, nuclear power needs a threshold, and hydropower is saturated. Our entry point into big power is wind power, and our dream is here. This is a historic opportunity, and we must rush in. We are all over 40 years old. If we can do something great in life, this is our chance. If it takes five years to build an enterprise with an output value of 100 billion, it will still be100 billion by the age of 50 or 60. If you haven't earned10 billion by the age of 50, this will be your life. ?
Since June 2005, Yang Ming has officially entered the wind power industry. Although there is the production basis of electronic control system, the core technology of fan is still blank. In the past, the usual practice in China was to entrust development and exchange the market for technology.
Chuangwei Zhang suddenly changed his mind three days before signing the contract after negotiating the entrusted development with a German fan design company for more than eight months. ? We can buy technology and licensing rights, but we can never buy key technologies and research and development capabilities. We have the core control technology of China, meteorological data and wind resource data, and the unique customer resources of China power industry. Why can't it be jointly developed? I don't want to borrow chickens to lay eggs. I want to get married and have children in China. My last name is China. ?
After determining the joint R&D model, the first batch of customized products with independent intellectual property rights went online. It took only 15 months from the signing of the contract to the commercial operation of the first complete machine, which was greatly shortened by more than half compared with the three years originally expected by Germany.
In June 2006, Guangdong Mingyang Wind Power Technology Co., Ltd. was formally established, mainly engaged in megawatt wind turbines, wind power engineering technology and wind power related technical consulting, technology import and export business.
The first batch of fan products just rolled off the assembly line. Chuangwei Zhang kept going to the United States to look for markets and capital. He can't sleep when flying. In the flight notes, he wrote down the first five-year goal of Mingyang Wind Power ambitiously. Billion output value, the top three successful domestic listed companies, and the top ten in the world? . At that time, the company was only 300 people, and even the factory land had not been bought. The first order for wind power equipment has just rolled off the assembly line. ? Speaking of this goal at the meeting held by the president, colleagues said that the boss was crazy. ? Chuangwei Zhang recalled with a smile.
The darling of capital
Five years later, all crazy goals have been achieved, and successful capitalization operation has played an important role in it.
At that time, the concept of equity financing was not popular in China. Chuangwei Zhang was the first batch of private entrepreneurs who ate crabs. I met with 150 international investors, including internationally renowned investment banks such as Goldman Sachs, Merrill Lynch and Temasek.
At first? As long as they have money? . Later, Yang Ming became more and more famous in the investment field. Change? Became? Choosing money and having money is not enough to impress Chuangwei Zhang, but also depends on whether investors can bring added value such as market and resources, talents and technology. For example, CDB later directly invested in Yang Ming through deep innovation investment, which brought national policy support; Investment from ICBC International brings financial support; Merrill Lynch's investment also brought in Indian investors. Chuangwei Zhang said with a smile that many investors not only brought dowries, but also brought their sisters and sisters.
Some investors came to Zhongshan to see Yang Ming's factory before deciding to invest, thinking that the project has a bright future, but the factory scale is too small. ? Too much investment will take up too much equity, and too little investment will lead to nothing. ?
Chuangwei Zhang doesn't think it's a problem: I'll draw you a cake and tell you how much the cake is worth and how much you buy. That's bargaining. This will not only make more money, but also not swallow the equity. ?
He drew a big cake for Mingyang Wind Power, which had only 30 million assets at that time. By the end of next year, Yang Ming will achieve an output value of 1 billion yuan and a profit of 1 billion yuan. The PE value of 6 times is not high. If I want 10 times, you have to give it to me. However, because the fan just went offline, it was risky, so it was reduced to 6 times. ?
At the time of 600 million valuation, Merrill Lynch entered as the first batch of investors. With the first batch of fans off the assembly line, Yang Ming's valuation has been bullish all the way. ? Later, I got more than one billion orders, and I will make a profit as soon as I deliver the goods next year. Of course, I will raise the price. ? When CDB entered three months later, its valuation had soared to $654.38+200 million.
Is Chuangwei Zhang still IDG's today? Investment mistakes? And regret. When Chuangwei Zhang put forward a valuation of 600 million, IDG investor Yang Fei thought that the valuation was only worth 300 million at most. A year later, the market value of Mingyang Wind Power has reached 3 billion. Chuangwei Zhang once said to IDG investors: At that time, if you started with 600 million yuan, you would have five times the income now. Now 3 billion can't get in. ?
By the end of 2007, Yang Ming had raised more than 270 million yuan. According to industry rumors, from April to August, 2008, the opportunity to have a meal with Chuangwei Zhang was privately raised by two institutions to a sky-high price of 65.438+0.0000 yuan, comparable to Buffett's banquet. The fierce competition of venture capital institutions for Yang Ming's investment can be seen.
After the equity financing model was approved, Yang Ming accelerated the layout of enclosure in China and extended the industrial chain. It took two years to build five manufacturing and service bases in Tianjin, Jilin, Jiangsu, Inner Mongolia and Guangdong, and there was almost no capital expenditure, which formed the capacity expansion of light assets. ? For example, in Yangming Industrial Park, a 600-mu Tianjin Binhai New Area with a factory building of 654.38+10,000 square meters, we didn't pay a penny to discuss the repurchase after listing. This can be done without money. ?