If you have enough keen eye and enough patience to hold a stock of a company called "Foshan Lighting" for 14 years, then you will find that cash will flow out like milk.
In the capital market, similar to Foshan Lighting, companies that have accumulated more dividends than the amount of financing since the listing, known as “cash cowsâ€, are rare.
In 1993, at the first general meeting of shareholders after the listing of Foshan Lighting, Chairman Zhong Xincai proposed two commitments. One is that it can not harm the investors and give the investors a good return. The second is to become the largest lighting company in Southeast Asia.
Born in the countryside, and later raised money by selling fritters, Zhong Xin was well aware of the hardships of ordinary people to make money. "If he doesn't buy your stock, he still has interest in the bank. How can you give dividends to others?" The simple idea has led to Zhong Xincai's insistence on high-status practices. Every year, Foshan Lighting has a 65% profit distribution. shareholder.
In fact, despite insisting on high-profile, the cash on the Foshan lighting account is still abundant, and the number has remained in the range of RMB 800 million to RMB 1 billion for a long time.
Abundant cash means huge investment opportunities, and many people are eyeing this “fatâ€.
In 1995, it was suggested that Zhong Xincai’s investment in real estate came one after another. In 1999, the brokerage institutions that looked for Foshan Lighting’s fund custody and promised a 20% return were queued up; later, mergers and acquisitions in the same industry became commonplace. However, Zhong Xincai was unmoved. The secret of resisting the temptation was to do his main business.
In 2004, Foshan Lighting was still unable to withstand loneliness, and invested in two projects of spark plugs and picture tubes, but it didn't take long for Zhong Xincai to "quick brake" and terminate the two projects that have already been put into production. After this action, Zhong Xincai’s belief in becoming a major business has become more and more firm.
In the main business, Foshan Lighting has become a veritable "Chinese lamp king". The goal of Zhong Xincai's establishment of the largest lighting company in Southeast Asia at the shareholders' meeting was already realized. Foshan Lighting is now the largest, best quality, most foreign exchange earning and most profitable enterprise in the national electric light source industry; the main indicators such as total industrial output value, total profit and tax, export earnings, and per capita labor productivity rank first in the country.
The favorable news of the policy made Foshan Lighting act quickly. In September this year, this “cash cow†once again launched an action around the main business. It plans to purchase 4 T5 fluorescent lamp production lines and construction 2 with its own funds of 100 million yuan this year and next. The 10,000-square-meter plant has expanded the annual production of T5 energy-efficient fluorescent lamps from 15 million to 55 million.
â—Listing place: Shenzhen Stock Exchange
â— Revenue: 10.25 billion yuan
â— Net profit: 385 million yuan
â— Earnings per share: 0.22 yuan
(first three quarters of this year)
Lighting fixtures should respond to the needs of the industry to expand the white LED decline will be less than 30% to unveil the Nanning crystal lamp market is little known. STMicroelectronics continues to increase investment in China. In 2007, the annual growth rate of global LED sales can be Up to 13.7% of the European classical lamps will continue to be popular
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