The owner of private enterprise said: after affiliated with the central enterprise, the financing cost will be reduced by at least 3-4percent

category:Finance
 The owner of private enterprise said: after affiliated with the central enterprise, the financing cost will be reduced by at least 3-4percent


Why are private enterprises keen to wear red hat? Mr. Wang (pseudonym), a business owner in the southeast, told the 21st century economic reporter about his own experience in detail. The financing cost is at least 3-4 percentage points lower, and most of the time, its not the cost, but whether there is a problem.

Mr. Wang said that in about 2013, the enterprises under his control wanted to bid for a BT project of infrastructure construction of local government, but the government wanted the state-owned capital as the construction party, so Mr. Wang considered attaching himself to a state-owned enterprise and transforming the property right into a state-owned enterprise in name.

Mr. Wang found relevant leaders of China Science and Technology Construction Corporation through middlemen. After consultation and contact, the leaders agreed that Mr. Wangs enterprise was affiliated with China Science and Technology Construction Corporation.

According to Mr. Wang, he had talked to two or three other state-owned enterprises before, but it was not successful. Some of the reasons were that the other party did not lack projects and was afraid of uncontrollable risks.

But in the short term, zhongkejian, who wants to be bigger and stronger, meets the needs of private entrepreneurs such as Mr. Wang.

The bottom line for China Science and technology construction is that China Science and technology construction cant suffer losses, whether it is actual losses or reputation losses, he said. So we signed an agreement. I mix 1% of the capital as the management fee every year. The shareholder in the name of the company becomes China Science and technology construction. I will pay for the actual registered capital. I am also responsible for the operation and management of the company and bear the risk.

After a series of operations, Mr. Wangs enterprise became a subsidiary of China Science and Technology Construction Corporation. Mr. Wang is also worried that after the change of shareholder, his enterprise will be eaten by the affiliated state-owned enterprises. Therefore, he established a project company in the name of China Science and Technology Construction Co., Ltd. as the general manager of the project company. The license, seal and finance of the project company are controlled by him.

Although regulators and financial institutions have repeatedly said that they treat private enterprises and state-owned enterprises equally, there is still a gap in reality. Mr. Wang said that after wearing the red hat, the change he felt was that state-owned enterprises are not only easier to get project resources, but also more convenient in financing.

Its very difficult for private enterprises to borrow 100 million yuan, and its relatively easy for state-owned enterprises to raise funds, he told 21st century economic news. Its easy for us to borrow three hundred million yuan when we are affiliated with China Science and technology construction. And the cost of financing varies by 3-4 percentage points.

According to Mr. Wang, his previous financing cost was at least 15%, because it was difficult to finance from the bank, and generally he could only find other non-bank financial institutions such as trust and leasing to finance. After the affiliation, the financing cost dropped from 15% to 11% and then to 9%. With the increase of business capacity and scale, the financing cost is also going down.

Dont underestimate a few differences, he said. If the interest rate is 15%, the financial cost of 300 million will be spent.

Game and risk in affiliation

Mr. Wang also said that, on the one hand, with the name of the central enterprises, enterprises may get better development. On the other hand, both sides face many risks.

Take zhongkejian for example. He said he gradually found the companys management confusion after affiliation. The legal representative also entrusts the general manager as the agent. The general manager may act on behalf of the legal representative to deal with external financing, loan, guarantee, industrial and commercial annual inspection, purchase and sale, cooperation, joint venture and other acts, and authorize the legal representative to sign documents in the name of the agent entrusted by the legal representative.

Secondly, Mr. Wang also found that the fund chain of China Science and Technology Construction Co., Ltd. is relatively tight, and it always requires the affiliated branches and subsidiaries to provide fund support in the name of emergency, or the financing part obtained is used by China Science and Technology Construction Co., Ltd., while the branches and subsidiaries of the actual loan need to bear their own interest. In addition, in the event of debt crisis, if the affiliated enterprises and the affiliated central enterprises are not cut clean in time, they may face the risk of being dragged down.

Of course, from the perspective of affiliated enterprises, the risk is not small. Many affiliated branches and subsidiaries have extensive business management, blind financing and borrowing, and some financial institutions require the parent company to guarantee, so the risks of affiliated enterprises will also be related to the parent company or headquarters.

Mr. Wang said that because it involves the qualification of shareholders and capital flow, the normal operation of the enterprise needs many cooperation from the affiliated central enterprises, and the process of poor running in will be set up with various obstacles. The staff in charge of Finance and certificates need to be organized. Some business leaders are kind on the surface, responsive to what they need, but in fact, they are very deep. For example, if you ask him to sign, he will sign all of them, but he will sign in different fonts. Some of the different signatures may be sealed by the clerks, while others may not. Because different fonts mean different things, the clerks know that.

Red Hat Enterprises equity disputes continue

The red hat enterprise is called a state-owned enterprise or a collective enterprise, which is actually a private enterprise. It is an enterprise that is operated by private investment and registered in the name of a state-owned enterprise or a collective enterprise, or affiliated with a state-owned enterprise or a collective enterprise. This is a product of history, but in recent years, there have been a wide range of risk events of capital chain fracture in private enterprises.

However, relying on this grey operation is like an invisible bomb, and the risk cannot be underestimated. Especially after the development and growth of private enterprises, when they want to take off their hats, they are most likely to have disputes with the nominal shareholders and detonate bombs. Some bombs not only blow up enterprises, but also blow up entrepreneurs. In the process of decapitating red hat enterprises, entrepreneurs were put into prison for embezzling state-owned assets, which was reported in the newspapers.

The 21st century economic reporter combed through a number of online judgments of Chinese judicial documents, which showed that there have been many property rights disputes caused by acts such as affiliation.

For example, according to a judgment issued by the intermediate peoples Court of Beihai City, Guangxi Province, Beihai company and Huang Mou, No.16 Metallurgical Group of China nonferrous metals industry, had disputes over the confirmation of the rights and interests of the investors. Huang sued to the court and asked for confirmation that he was the actual investor of Beihai real estate company of No.16 smelter, and No.16 smelter Beihai company assisted in handling the industrial and commercial registration of changing the investor.

After the trial, the court held that Huang developed the real estate project in the way of overall contracting for Beihai real estate company of No.16 smelter, and carried out independent operation, independent accounting and self financing. Huang was responsible for the creditors rights and debts incurred during the contract period; the legal representative of Beihai real estate company of No.16 smelter also authorized Huang to exercise the legal representatives rights of the company, and Business license, corporate legal representative certificate, official seal, private seal, etc. shall be handed over to Mr. Huang. Therefore, the fact that the 16th Metallurgical Beihai company is only a nominal investor and Huang is the actual investor supports Huangs claim. After the first trial, No. 16 smelter Beihai company refused to appeal, and the second trial upheld the original judgment. Xue Jun, a professor of Law School of Peking University, once wrote that in the practice of economic life, there are not a few disputes about the ownership of rights and interests caused by nominal equity registration problems such as affiliated operation, equity holding on behalf of others and famous shares and real debts. Since the beginning of this century, under the influence of policy expectation, market access, resource allocation, business license, financing threshold and other factors, the phenomenon of affiliated operation and Red Hat Enterprise has rebounded, focusing on infrastructure construction, real estate development, construction, material import and export trade, social service industry and other fields. Source: Zhang Mei, editor in charge of 21st century economic report_ NF2100

After the trial, the court held that Huang developed the real estate project in the way of overall contracting for Beihai real estate company of No.16 smelter, and carried out independent operation, independent accounting and self financing. Huang was responsible for the creditors rights and debts incurred during the contract period; the legal representative of Beihai real estate company of No.16 smelter also authorized Huang to exercise the legal representatives rights of the company, and Business license, corporate legal representative certificate, official seal, private seal, etc. shall be handed over to Mr. Huang. Therefore, the fact that the 16th Metallurgical Beihai company is only a nominal investor and Huang is the actual investor supports Huangs claim. After the first trial, No. 16 smelter Beihai company refused to appeal, and the second trial upheld the original judgment.

Xue Jun, a professor of Law School of Peking University, once wrote that in the practice of economic life, there are not a few disputes about the ownership of rights and interests caused by nominal equity registration problems such as affiliated operation, equity holding on behalf of others and famous shares and real debts. Since the beginning of this century, under the influence of policy expectation, market access, resource allocation, business license, financing threshold and other factors, the phenomenon of affiliated operation and Red Hat Enterprise has rebounded, focusing on infrastructure construction, real estate development, construction, material import and export trade, social service industry and other fields.