whoever God wants to destroy must first make him crazy

A western proverb says, "Whoever God wants to destroy must first make him crazy."

but Delong doesn't believe this.

Prosperity by virtue means prosperity by virtue. However, in the end, Delong seems to have given up this purpose. Starting from the border city of Urumqi, running in the political center of Beijing, and then settling in the financial center of Shanghai, Delong is like an efficient chariot, buying and killing all the way. Its boldness of vision is amazing. However, the glory is also the time to fall. Just when people were still dazzling Delong's brilliance, in an instant, Delong's chariot capsized. Huarong is in full custody and Tang Wanxin is detained, which is the best annotation to this proverb. Delong Trajectory In 1992, Xinjiang Delong Industrial Company was incorporated with a registered capital of RMB 8 million. Xinjiang Delong Real Estate Company was established. Started to enter the fields of entertainment, catering and real estate investment. In 1994, Xinjiang Delong Agriculture and Animal Husbandry Co., Ltd. was established with a registered capital of RMB 1 billion to develop agriculture and animal husbandry in Xinjiang. In 1995, Xinjiang Delong International Industrial Corporation was established with a registered capital of RMB 211 million. Set up a liaison office in North America to expand foreign business. In 1996, Xinjiang Tunhe legal person shares were acquired and Xinjiang Tunhe Group was established.

? In 1997, the company was transferred to Shenyang Alloy Corporation and entered the field of home outdoor maintenance equipment and power tools manufacturing. Transferred the legal person shares of Hunan Torch and entered the field of auto parts manufacturing. In 1998, Xinjiang Delong International Industrial Corporation was restructured into Xinjiang Delong (Group) Co., Ltd. China National Tourism Co., Ltd. was established to enter the tourism industry.

? In 1999, Beijing Jubilance Culture Development Co., Ltd. and Beijing Guowu Sports Exchange Co., Ltd. were established and entered the cultural and sports industry. In October 2111, Delong International Investment Holding Co., Ltd. was incorporated in Pudong, Shanghai with a registered capital of RMB 211 million, holding Xinjiang Delong Group and Xinjiang Tunhe Group. In 2112, Delong Building was completed and put into use. On April 4, 2114, Delong shares, such as Hunan Torch, Alloy Investment and Tunhe, all fell for the first time, and the Delong crisis broke out. On April 29, 2116, Delong ruled that Tang Wanxin was sentenced to 8 years in prison; Delong, Delong International and its subsidiaries were fined RMB 11.3 billion. Success is the father of failure

We are all familiar with an inspirational saying: "Failure is the mother of success." Thinking about this sentence in reverse, we get another famous warning saying: "Success is the father of failure!" " I think this sentence is more appropriate for Delong.

As early as April 3, 2114, before the defeat of the "Defence of Delong Empire", Tang Wanxin had realized that his dream would be shattered. Despite all his efforts, his financial empire was going to collapse like a chariot out of control.

The attributive given by Caijing magazine in evaluating Tang Wanxin is "lean", and the accompanying explanation is: a gambler who soberly creates a crisis and a madman who dreams of turning a volcano into a gold mine.

regarding Delong, people can enumerate many economic concepts he created: industrial integration, global mergers and acquisitions, asset enjoyment, asset improvement, asset creation, asset fission, investment project simulation test and so on.

Delong has developed from its initial integrated cement industry to "Xiang Torch" and "Shenyang Alloy", from large auto parts to heavy trucks, from power tools to garden tools and CNC machine tools. Involved in auto parts, cement, mining, food, modern circulation, tourism, finance and other industries, to the later stage, Delong shares as many as 177 companies.

Tang Wanxin, an enterprise manager who worships GE's model, even deliberately imitates GE's acquisition model-only buys the first place in the industry, and never invests if he has no chance to buy the first place; Not one of the best companies, they are generally not considered in Delong's merger and acquisition. But unfortunately, he only learned the fur of Welch's management essence. Whether in industry or finance, Delong has not formed a sustainable and stable profit model for enterprises, and has not gained a leading position in the industry. Except tomato sauce, it has not established any so-called industrial advantages, and Delong's industries are not complementary.

Because the battle line is too long and the return period of industrial investment is not properly matched, the continuous M&A and subsequent management expenses can only be solved by financing; The higher talent cost and the borrowing of funds with interest as high as 1.2% directly increased the financial cost, and finally brought great financial pressure to Delong. The tens of billions of industrial chains of listed companies in Delong can generate about 611 million yuan in profits every year. However, this money is used to repay bank loans and it is still tight. Coupled with the huge management expenses and the cost of private lending funds generated by Delong every year, Delong's cash can only make ends meet.

Capital chain fracture is the appearance of Delong's failure, and crazy expansion is the essence of Delong's failure. The root of Delong's failure is that he didn't rely on the main business, didn't cultivate the core competitive advantage of the main business, and didn't handle the problem of how to diversify and adjust the diversified structure.

aimless expansion, on the one hand, enables it to expand rapidly, but on the other hand, because the new fields it has entered cannot make profits quickly, not only the financial business is deeply tired, but also the industry is deeply tired. Once the capital pipeline dries up, the industry will die.

Delong's failure can be said to be a wake-up call for those ambitious enterprises. Most private enterprises in China have the complex of "becoming bigger and stronger" through diversification. However, due to various reasons, this complex has just become an inextricable "dead knot" and a trap, which firmly binds the enterprises and makes them trapped in the game.

diversified enterprises will face multiple product markets, which will inevitably form a complex management system, greatly increasing the difficulty of enterprise management, especially bringing greater difficulties and risks to enterprise management decisions.

Drucker once said: The wider the diversified business scope of an enterprise, the more coordination activities and possible decision-making delays. Therefore, blind expansion is by no means wise.

Delong has left with regret, and the world is still calm. The Tang brothers were once full of ambitions and strategizing in Shanghai Delong Building. Now Tang Wanxin is sentenced to 6 years and 6 months in prison and fined 411,111 yuan for illegally absorbing public deposits. He was sentenced to 3 years in prison for the crime of manipulating the price of securities trading; Decided to execute a fixed-term imprisonment of 8 years and impose a fine of 411,111 yuan, leaving a bleak background for the world.