Love and hate between Cao Dewang, the hottest king

  • Detail

The love and hatred between Cao Dewang, the king of glass, and Saint Gobain

"we should insist at all times that we should be clear and innocent when we are poor; when we are rich and successful, we should be simple and have a high sense of crisis, so as not to fail." In the eyes of caodewang, chairman of Fuyao Glass Group, "the poor will become stronger, and the rich will foresee" is a necessary condition for a successful person

In 1976, caodewang entered Gaoshan special-shaped glass factory in Gaoshan Town, Fujian Province, which specializes in the production of water meter glass. At that time, he worked as a purchaser in the factory. In 1983, he contracted the glass factory, which turned losses into profits that year

in 1987, caodewang jointly implemented the national new material standard pilot action plan with 11 shareholders raising 6.27 million to establish Fuyao Glass Co., Ltd., whose main business turned to automotive glass, and soon occupied the top position of automotive glass

In 1991, Fuyao was approved to issue shares publicly. In 1993, the company's stock "Fuyao Glass" was listed on the Shanghai Stock Exchange, becoming the first private enterprise listed in Fujian

however, in order to seek development, the cooperation with the world glass giant almost destroyed him; In order to seek fairness, he and the Americans won the leading anti-dumping case after China's accession to the WTO; In order to compete for the market, he fought close to international companies, and his enterprise accounted for 60% of the domestic glass market

along the way, all kinds of stories of the occasion were shown one by one in Cao Dewang's plain narration

the road to listing

Cao Dewang said that he originally knew nothing about stocks, and the enlightenment education about stocks was due to a loan

in 1988, the company had a loan from an investment company in Fujian Province with overseas funds. The overseas bank required the company to provide monthly statements and audit the statements of Fuyao from the perspective of supervision

it is said that after reading the statements, the president of this bank couldn't believe that the company had such good benefits, so he came to Fuyao to see it in person. After reading it, he invited Cao Dewang to Singapore to talk about the operation of stocks with Cao Dewang in person, and discussed with Cao about listing Fuyao. Cao Dewang stayed in Singapore for 15 days, but he was still ignorant about stocks

when transferring from Singapore to Hong Kong, Cao Dewang met a leader of the Fujian provincial government. Although Cao Dewang was also very confused at this time, he still told the leader that the company wanted to list in Singapore. At this time, the province is also looking for a pilot of listed companies, "Fuyao itself is the product of reform and opening up, if the government requires a pilot, of course." Cao Dewang said

with the support of the province, the listing and operation of Fuyao went very smoothly. It was officially put into operation at the beginning of 1991 and was approved to issue shares publicly in June

Cao Dewang said that after the initial stock subscription, there were some voices in the society that this stock could not be listed, and he would run away with the money. Many friends who had subscribed for the stock came to him every day to ask for help to return the stock. Cao Dewang knew that it was impossible to retire, so he had to borrow money to get these shares back by himself. "I don't think we will lose money, because our profits were very high at that time. I believe what I am doing."

in 1993, Fuyao stock was listed, and the price on the day of listing was 44. 44 yuan, while the issue price is only 1. 5 yuan. The listing of Fuyao has provided the foundation for the development of the company, and also brought rich returns to caodewang. Caodewang said that the board of directors rewarded him with 850000 shares, plus the more than 3 million shares he acquired, which alone earned 1. 600million

grudges with Saint Gobain

with the opening of the market, the increase in the business share of foreign enterprises in the Chinese market has put caodewang under pressure, among which the market squeeze from France Saint Gobain group, the world's leading glass leader, is particularly obvious, and the grudge between Fuyao and Saint Gobain began in 1994

After two years of negotiation, Fuyao and Saint Gobain reached a cooperation agreement in 1996. Saint Gobain invested US $15.3 million to establish Wanda Automotive Glass Co., Ltd. with Fuyao Glass, which holds 51% of the shares, Fuyao Glass holds 49% of the shares, of which Cao Dewang holds only 16%. At the same time, Fuyao Group transferred 42% of its overseas legal person shares to Saint Gobain, and Cao Dewang served as the general manager of the two companies

"Saint Gobain is the largest glass enterprise in the top 500. At that time, I was very proud to tell my employees that I found a good husband's family for you and married." Caodewang said that as early as 1990, Fuyao's products had entered the U.S. market. By 1995, he was ready to build a medium-sized automobile windshield factory in South Carolina. He planned to expand the overseas market like a tiger after cooperating with the French

but what Cao Dewang didn't expect is that Saint Gobain has more than 300 joint ventures around the world, and Fuyao is just one of them. For the French, supporting Fuyao's overseas expansion is tantamount to cultivating new competitors for its overseas factories around the world. Therefore, it gradually uses the way of raising the price of Fuyao's export products to restrict its overseas development

at this time, caodewang woke up. Saint Gobain just wanted to cultivate Fuyao into a factory in the Far East under it to supply their customers in Asia. "You are just a pawn on its chessboard, a pawn in China, and Fuyao will be difficult to grow from then on."

the holy runway can be put into use a few days after the completion of construction. Goban wants to use Fuyao to enter the Chinese market, but Fuyao wants to expand the market to overseas and realize its own internationalization strategy. It can be said that since the strategic objectives of both sides are different, aluminum and its alloy materials have hidden dangers at the beginning because of their easy molding and processing and excellent physical and chemical properties

in 1995 before the joint venture, Fuyao's net profit was 4804. 590000 yuan, the next year, the number suddenly shrunk to 40. 540000 yuan, which suddenly fell to negative 17.89 million yuan in 1998. This is the first time that the company has suffered a loss since it was listed, and the bank even refused to lend to Fuyao. As the return on net assets fell below 10%, Fuyao lost its rights to allot shares in the next three years and lost its qualification to finance from the stock market. At this time, the contradiction between the two sides began to intensify, and Saint Gobain also began to doubt whether the investment cooperation was a wrong decision, so quitting Fuyao was put on the agenda

in May 1999, caodewang and Fuyao Group invested a total of US $30million to buy back all Fuyao shares held by Saint Gobain. Caodewang took this opportunity to become the absolute shareholder, and Saint Gobain withdrew, and the three-year joint venture ended

after getting rid of Saint Gobain, Fuyao Glass seems to have recovered its vitality. In that year, it realized a profit of more than 70 million yuan. After that, the profit increased rapidly year after year. In the first half of 2004, the main business income and net profit were 10% respectively. 8.1 billion yuan and 1. 9.9 billion yuan, a year-on-year increase of 44. 10% and 41. 19%

"from 1999 to now, it has been six years for Fuyao to develop. From the original two joint venture factories to now, we have more than a dozen factories, seven float production lines, and the fixed assets have increased from about 500 million to more than 5 billion."

ask caodewang if it is possible to cooperate with Saint Gobain in the future? Caodewang said, "the cooperation is certain, but it will not be a joint venture. It is impossible to make a joint venture with him now."

anti dumping leading case

every day, Cao Dewang will first "walk" in the factory for an hour, and arrive at the office at 8:00 on time to receive rounds of "bombing" for instructions. In the past two years, caodewang has been under a lot of pressure from Fuyao Glass's continuous encounter with dumping investigations and related lawsuits from the United States and Canada

"they thought beautifully at the beginning, trying to destroy Fuyao in the cradle when he started." Cao Dewang said that he had a sense of society in fighting this anti-dumping lawsuit. Because China's glass Fuyao exported to North America accounts for 70% of the total export volume. If he doesn't fight this lawsuit, it means that the Chinese people have voluntarily given up this market

Cao Dewang hired a well-known law firm in the United States to represent the case, and the lawyer's fees alone cost US $56 million

"when the United States sued, they said that we were a non market economy country, and the government had subsidies. I told them that I was a private enterprise, and the government not only did not subsidize, but also paid taxes on exports. How can you count us as having subsidies?"

however, the U.S. Department of commerce did not accept the relevant evidence provided by Cao Dewang, so he had to sue the Department of Commerce to the court, and appealed a total of 9 reasons. On October 14, 2004, the United States Court of international trade finally made a final ruling that the dumping ruling of the United States Department of Commerce was unreasonable, and Fuyao Glass won the lawsuit

after repeated tasting, the name of "anti-dumping victory leader" has no taste in caodewang. Both he and Fuyao Glass are quite calm about the final victory

in the eyes of peers, it should be a great thing to be able to be a supplier of automotive glass to Volkswagen and Audi, because they have high requirements for glass design and quality. "For example, the spherical design of its glass not only needs to eliminate the wind resistance, but also requires the recycled wind to push its car. A windshield will run out of many strange problems. Because of the shortage of copper resources, our United States has formulated the technical policy of replacing copper with aluminum and used a lot of brains to solve these problems."

"for 18 years, my management team and I have adhered to one purpose, that is to make a piece of Chinese glass for the Chinese people." Behind this sentence, Fuyao Glass has fully mastered the difficult technology of automotive glass production, ended the history of China's dependence on imports of high-end automotive glass raw pieces, and made an international brand for China's automotive glass manufacturing industry

Copyright © 2011 JIN SHI