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A company can be a tool. As long as the boss oils it regularly and maintains it well, he can use it to make money. A company can also be a commodity. If the boss is too lazy to take care of it, he can sell it for money.

If you only treat the company as a tool, you generally don't care about the location and can make money anywhere. But if you treat the company as a commodity, you have to consider the issue of buyers. The more buyers there are, the easier it is to sell and the easier it is to get a good price.

Because of this logic, most bosses want to list their companies on the stock market, where there are many buyers, prices are good, and both retail and wholesale are available, which can basically satisfy any desire of the bosses.

1

Before China Electric Motor went public, the three bosses, Wang Panrong, Wang Jianyu and Wang Jiankai, father and son, held a total of 96% of the shares. They were so reluctant to distribute their shares that they gave people the impression that they loved their family business too much.

In October 2014, China Electric Motor successfully listed on the A-share market. After the IPO dilution, the three father and sons still held 72% of the shares, which is still an extremely high proportion. Every meeting of the three is equivalent to a shareholders' meeting.

However, after the listing, the three father and sons were no longer stingy with their shares, especially the father Wang Panrong, who announced a plan to reduce his holdings in November 2017, just after the three-year lock-up period expired.

From November 2017 to June 2018, Wang Panrong sold his shares through numerous bidding transactions and it was quite difficult for him to sell them, sometimes even selling only 200 shares.

After the final calculation, only more than 95 million yuan was cashed out in more than half a year. At this rate, it would probably take five or six years to sell all the properties.

Fortunately, the two sons were filial and could not bear to see their old father working so hard to bid in the secondary market, so they simply found a buyer and wanted to sell the controlling stake in the company.

In November 2018, the father and his two sons signed a share transfer agreement with Ningbo Juntuo Enterprise Management Co., Ltd. and Zhuhai Fangyuan Capital Management Co., Ltd. at the same time, transferring a total of 26.47% of the equity at one time and cashing out 925 million yuan.

It was through this equity transfer that my father Wang Panrong sold out all his shares and pocketed 430 million yuan. He was able to return home and enjoy his retirement in peace without having to worry about bidding anymore.

However, even if so much was transferred at one time, the brothers' combined shareholding ratio was still enough to become actual controllers. Therefore, the brothers gave up and delegated part of their voting rights, which enabled Ningbo Juntuo to become the new controlling shareholder of CETC Motor.

2

It is unknown what the purpose of Ningbo Juntuo was, but one thing is certain: it helped the Wang father and son solve two problems.

Father Wang Panrong cleared out his holdings, and brothers Wang Jianyu and Wang Jiankai also unloaded their burdens. They are no longer the actual controllers, so they have no psychological burden in reducing their holdings.

From August 2019 to July 2021, over a period of two years, the two brothers each started bidding for shares and cashed out a total of about 120 million yuan.

As mentioned before, the retail method of bidding transaction is too tiring, and wholesale transfer by agreement is more convenient. It just so happened that the controlling shareholder Ningbo Juntuo also wanted to find someone to take over, so everyone hit it off and found a new buyer.

Recently, China Electric Motor announced that controlling shareholders Ningbo Juntuo, Wang Jianyu and Wang Jiankai have signed equity transfer agreements with Beijing Highland Resources Development Co., Ltd. respectively, transferring a total of 30% of the equity, with a transaction price of nearly 900 million yuan.

Of course, the main purpose of this transaction is that Ningbo Juntuo wants to get out of the predicament. Wang Jianyu and Wang Jiankai just took advantage of the opportunity and can only reduce their total shareholding by about 11%.

However, Wang Jianyu and Wang Jiankai are original shareholders, so they will make a profit no matter how they sell, and they can cash out 292 million yuan.

They were reluctant to sell before the IPO so that they could sell more freely after the listing. Before they knew it, the father and his two sons had cashed in more than 1.4 billion in the stock market.

Of course, the "revolution" has not yet succeeded.

After the transaction is completed, the brothers will hold a total of 25.78% of the shares, compared to 72% at the beginning of the IPO. They have just completed 65% of the total progress, and the brothers still have to work hard.

3

There are two types of retreat on the battlefield: one is called rout, and the other is fighting and retreating. Rout is without resistance and in chaos, while fighting and retreating is planned and rhythmic.

Looking back now, the Wang brothers did not act in a hasty manner after their father Wang Panrong cleared out his holdings. Instead, they fought and retreated. Their younger brother Wang Jianyu is still the general manager of China Electric Motor.

One day in April 2020, a black luxury sedan appeared in front of the gate of Yixing Huayong Electric Motor Factory, more than 60 kilometers away from China Electric Motor. The door opened and a man in black walked out.

There is the gate in front. According to the normal procedure, one should register at the security room at the gate and then enter the factory. However, after getting off the car, the man did not go through the gate, but went around to a low wall next to it and directly climbed over the wall to enter the factory.

The man walked around the factory and finally locked onto the production workshop. As soon as he entered the workshop, he picked up his mobile phone and started taking pictures frantically. He might have been so engrossed in taking pictures that he did not notice that he had walked into the camera's field of view.

In the security room at the factory gate, the security guard watched the man in black acting suspiciously through the surveillance screen and thought he was definitely not from the factory, so he called a few people to arrest him and bring him back to the security room.

When the security guard asked, it turned out that the man was not from the factory. He was an outsider who tried to escape again when the security guards were not paying attention. However, the security guards outnumbered him and caught him again.

The security guard couldn't handle the situation, so he just treated it as a thief and called the police. When the police arrived, they took the man away.

The man was none other than Wang Jianyu, the then chairman of China Electric Motor. The reason he climbed over the wall to take pictures was that he wanted to see the strength of the competitor who had defeated China Electric Motor in a bidding project.

A chairman of a listed company went to the front line to conduct research and even climbed over a fence. He was caught on the spot and taken to the police station. He was too hardworking. It didn't look like he was going to cash out and leave.

The attitudes of shareholders are also surprisingly consistent. Such a chairman's spirit is commendable and is unanimously recognized by everyone as a "conscientious boss". No matter where he goes tomorrow, as long as he is still alive, he will firmly stand at his post.

The next day, contrary to media expectations but in line with stock investors' wishes, China Electric Motor not only did not fall, but was almost chased to the daily limit.

4

If the cashing out by the three father and sons after the listing is also considered as selling the company, then this is not the first time they have sold the company.

In 1992, the villagers' committee of Jiangdong Village, Huazhuang Town, Wuxi City, Jiangsu Province allocated 1.05 million yuan in physical assets and 50,000 yuan in cash to establish the village-run enterprise Wuxi County Huashen Thermal Fluid Equipment Factory, with Wang Panrong as the factory director.

The name of the factory is quite complicated, but its business is very simple, it only produces DC motor backpack air-water coolers.

Although it is just a village enterprise, its customers are all large and medium-sized state-owned motor enterprises, so it has a stable customer base and orders.

Wang Panrong is certainly a capable man. He did not waste the great resources and made the equipment factory prosperous. The employees have good incomes every year and the village committee has good harvests every year.

In 1998, a document on enterprise restructuring was issued, and the equipment factory as a village enterprise also started the transformation into a shareholding cooperative. It was because of this reform that Wang Panrong's family of six appeared on the list of investors, and together they held a 45% stake.

In fact, 45% is just the first step.

In 2002, Wang Panrong's family acquired all the investment shares of other natural person shareholders, and his two daughters-in-law withdrew. They then diluted the village committee's investment ratio to 5.64% by increasing capital.

At this point, the equipment factory has become the property of Wang Panrong's family, who hold a 94.36% stake.

After years of supplying motors and seeing pigs running around, they began to want to eat pork. In 2003, the father and his two sons founded Wuxi Motor, the predecessor of China Electric Motor, and started to do two businesses at the same time.

By 2011, Wuxi Electric Motor had grown strong enough to change its name to China Electric Motor and completed its transformation into a joint-stock company. It did not bring in any outsiders and only transferred 4% of its equity to the company's chief engineer. As a result, the three father and sons mentioned at the beginning held 96% of the shares before the IPO.

At the same time, the equipment factory was restructured into Huadian Thermal Fluid Equipment Factory Co., Ltd. The village committee withdrew, and Wang Rongpan's family achieved 100% shareholding.

It is worth mentioning that the village committee invested 500,000 yuan in 1998 and sold it to Wang Panrong's family for 700,000 yuan in 2011. In 13 years, the value only increased by 200,000 yuan.

However, China Electric Motor was about to go public, and Huadian Thermal Engineering became a highly related company. In order to have a cleaner listing, the father and his two sons immediately sold Huadian Thermal Engineering.

Just like that, three years after selling the village enterprise, China Electric Motor successfully IPOed, and the father and his two sons began to sell listed companies again.