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At the most difficult moment of glory, Shenzhen SASAC appeared on a white horse;NIOWhen Li Bin felt the coldest, Hefei State-owned Assets Supervision and Administration Commission sent him warmth...

After Shenzhen and Hefei became famous and were named the "most powerful SASAC", in the past two or three years, China's local state-owned assets have been surging out like chicken blood, and each of them wants to become a trend-setter in the capital market.

Among them, there is a very active buyer in the second-tier cities.Faraday Future, Wanda Commercial Management, then Peking University Founder,World Union Bank、Bauing Shares…For a year or two it was called:

This city is Zhuhai.

Zhuhai SASAC’s funds mainly come fromGree Electric AppliancesA big all-in for the mixed-ownership reform. At that time, Gree Group, a subsidiary of Zhuhai State-owned Assets, exchanged the controlling stake of Gree Electric Appliances for 40 billion yuan in cash.

With the 40 billion, Zhuhai State-owned Assets leveraged up and then attacked everywhere in the capital market, taking control of more than a dozen listed companies and investing in hundreds of companies. For a period of time, Zhuhai State-owned Assets was in the limelight, forming a tripartite situation with star state-owned assets in Hefei, Shenzhen, Guangzhou and other places.

The person who manipulated Gree Electric's mixed ownership reform and made large-scale investments was the then director of Zhuhai State-owned Assets Supervision and Administration Commission:

A few days ago, Clean Zhuhai disclosed that Li Congshan, Party Secretary and Director of Zhuhai Municipal Bureau of Industry and Information Technology, was suspected of serious violations of discipline and law and is currently under disciplinary review and supervision investigation by Zhuhai Municipal Commission for Discipline Inspection and Supervision.

Li Congshan was taken away by the Discipline Inspection Commission on July 1. Before he was taken away, various rumors about him had been circulating in Zhuhai circles for a long time.

The leaders have long said that if you want to be an official, you should not get rich, and if you want to get rich, you should not be an official. Why don't you listen?

Director Li worked as the director of Zhuhai State-owned Assets Supervision and Administration Commission for two and a half years.

In those years, Hefei SASAC earned the title of "Gambling City" for its city thanks to the three-rings of BOE, Changxin and Weilai. Looking at the whole of Guangdong, Shenzhen SASAC prefers real estate companies, and Guangzhou SASAC has 5 trillion yuan in assets.

Zhuhai is not bad either.

The biggest gold mine of Zhuhai state-owned assets was Gree Electric Appliances. In 2018, the net profit of Gree Group, the major shareholder of Gree Electric Appliances, was 26 billion yuan. However, Sister Dong has made many harsh remarks to her superiors:

This situation did not improve until Director Li took the helm of Zhuhai SASAC. He changed the tense relationship between previous SASAC directors and Dong Mingzhu, and the two often went on visits and inspections around the country together.

For example, Director Li took Sister Dong to his hometown, Ganzhou, Jiangxi, many times.

In Ganzhou, the eldest sister took the local main leaders to do a live broadcast, announcing the establishment of a 3,000-acre intelligent manufacturing production base of Gree Electric Appliances. She also once again broke her promise of "the only company in the home appliance industry that does not engage in real estate."

At the end of 2020, Ganzhou Jiaxing Nanshan Yuanzhu was launched. Sister Dong, Director Li and Chairman Wang Jiaxin of Jiaxing Group all came.

This is not Gree Electric's only project in Ganzhou.

In April 2021, Gree Electric Appliances' Ganzhou company acquired seven plots of land with a total investment of 1.417 billion yuan, of which 1.355 billion yuan was the price of residential land, and two industrial land plots were used to build the Gree Ganzhou Intelligent Manufacturing Base project.

This is a typical model of industrial land acquisition. Gree Electric invested in building a production base in Ganzhou, and the local government provided residential projects.

In July 2021, Jiangxi Jinrun Real Estate also bought a residential land of nearly 100 acres in Nankang, Ganzhou for a total price of 333 million yuan.

Jinrun Real Estate is still 55% controlled by Ganzhou Company under Gree Electric Appliances. The other 45% of the shares are held by Jiangxi Qianfeng Real Estate, which was established in May 2021.

The controlling shareholder of Jiangxi Qianfeng Real Estate is Shen Changquan. He has registered companies in Tibet and Zhuhai, both of which were newly established at the end of 2020. The name of his Zhuhai company is Zhuhai Mingzhen Investment Co., Ltd.

Shen Changquan's Zhuhai Mingzhen and Hillhouse's Zhuhai Mingjun. Don't mention it, the names are quite similar.

Later, Director Li's name appeared in a complaint filed by a real-name informant. In that complaint, the former chairman of a state-owned enterprise in Zhuhai, in a rare move, accused his supervisor, Director Li, by name.

The indictment said that he found that the leaders of the Shangrao Public Security Department had close ties with Director Li from Jiangxi and a Jiangxi businessman who used insider information to make precise profits.

A reporter later interviewed Li Congshan about the complaint. Li Congshan responded:

The plan to change Gree's name began at least nine years ago.

At that time, Zhuhai's most famous entrepreneur, "Friends of Time", and Zhuhai's leaders had an appointment in Beijing. All parties hoped that Friends of Time could come forward and invest to acquire 51% of Gree Group's shares.

Gree Group is the major shareholder of Gree Electric Appliances. But when everyone was imagining a bright future, the leader of Zhuhai fell from power.

At that time, Director Li was still working in Milin County, Tibet, but outsiders called him a "little rich man". When a friend went to visit him, Director Li opened his small cold storage and said, "Look, I have more than a hundred musk here:

If Huanhuan had known Director Li back then, Silang would definitely have been the last emperor of the Qing Dynasty.

Director Li later returned to Zhuhai and became the director of Zhuhai State-owned Assets Supervision and Administration Commission three years later. The work of changing Gree's name was put on the agenda again. Hopu Capital is not easy to "twiddle", so it's better to choose the right time.

In public, Director Li said, "Zhuhai State-owned Assets Supervision and Administration Commission can no longer provide Gree Electric with strategic resources to adapt to future competition, nor can it inject more market-oriented systems and mechanisms."

Sister Dong said that the SASAC made this decision without discussing it with me, nor did it need to discuss it with me.

At that time, the outside world was worried that this mixed-ownership reform plan with too dispersed equity would allow people inside the company to take advantage of loopholes. After the Zhuhai State-owned Assets Supervision and Administration Commission submitted Gree Electric's mixed-ownership reform plan, some leaders of the Zhuhai Municipal Party Committee also had different opinions.

But the plan was still approved by the city. The mixed ownership reform plan was implemented smoothly, and Time's friend finally exchanged 15% of the shares held by Zhuhai State-owned Assets for 41.6 billion yuan.

However, the three board seats of Gree Electric Appliances held by Zhuhai State-owned Assets were not given to Hillhouse.

This is a deal that normal people cannot understand. This major shareholder has no influence on the board of directors. In Gree's board of directors, there are subordinates of the eldest sister and her best friends, but there is no major shareholder.

Not only that, they also promised in writing that they would maintain Gree's status of having no actual controller and would not seek control in the future. That's not all. Hillhouse raised 85% of Zhuhai Mingjun's funds, but could only share half of the general partner's profit rights.

The Shenzhen Stock Exchange sent several letters to Gree Electric Appliances, asking only one question:

In July 2021, Director Li was transferred to the position of Director of the Zhuhai Municipal Bureau of Industry and Information Technology.

Before Director Li changed his job, the plan of using the listed company's money to repurchase shares and then selling them to Ms. Dong and Gree employees at half price was finally successfully passed.

After selling 15% of Gree Electric Appliances' shares, Zhuhai State-owned Assets, with 41.6 billion yuan in cash, continued to attack overseas, taking control of more than a dozen listed companies and shocking the market many times.

According to statistics, during the two years that Director Li was in office, Zhuhai state-owned assets actually invested in hundreds of projects.

They must have been very busy. However, the media reported the Zhuhai State-owned Assets Supervision and Administration Commission as follows:

A few years have passed. Looking back at these investment decisions, the controlling stake of Gree Electric Appliances was sold. The money was invested. But it seems that "more Dong Mingzhu" has not been cultivated.

A few days after Director Li was taken away by the Commission for Discipline Inspection,YAMPU MedicalThe announcement said that Chairman Deng Guanhua was detained by the Zhuhai Discipline Inspection Commission.

Yangpu Medical is also a listed company that Gree Capital acquired through the acquisition of Deng Guanhua's shares on the eve of Director Li's resignation from the Zhuhai State-owned Assets Supervision and Administration Commission.

In 2018, before selling 15% of Gree Electric Appliances' shares, Gree Group's net profit was 26 billion yuan; in the second year, because of the sale of 15% of Gree Electric Appliances' shares, Gree Group's net profit that year was magnified to 46.1 billion yuan.

But by 2020, net profit had quickly fallen back to 430 million.

In 2023, the fourth year after this century-long sale, Gree Group's net profit was only 580 million yuan.

Not only Gree Group, but also two other core state-owned enterprises in Zhuhai,Huafa GroupandGree Real EstateThe days are not easy.

I wonder how Zhuhai City evaluates this transaction now after giving away Jinbobao, which pays out billions in dividends every year.

On the day Director Li was taken away by the Commission for Discipline Inspection, foreign media reported thatMicrosoftFormer CEO and President Steve Ballmer surpassed Microsoft co-founder Bill Gates for the first time on the Bloomberg Global Rich List to become the world's sixth richest person.

This reminds me of an old friend:

The master started managing Bill Gates' finances in 1994, when Gates had only $5 billion in wealth.

Under his operation, Bill Gates' share of Microsoft dropped from 45% to 3%, and his net worth soared from US$5 billion to nearly US$160 billion.

Any investor who can achieve 30 times the return in 30 years can enter the Investment Hall of Fame. But think about it from another perspective. If Gates had not sold Microsoft stock, his net worth today would be $1.5 trillion.