1. Make full use of financial leverage to carry out extensive financing, focusing on establishing an organic combination of financial capital and industrial capital, which not only ensures the health of the capital chain, but also avoids capital market risks. Delong’s success is largely Due to their in-depth understanding of capital operations, their concern for capital risks and their emphasis on financing links, they know that without a smooth capital chain and healthy cash flow, all capital operation methods can only be fantasy and can only It is synonymous with huge risks. Therefore, from the day it intervened in the capital market, Delong has focused on creating a smooth capital chain, regarded continuous financing capabilities as the engine of development, and established a combination of financial capital and industrial capital as a private enterprise. Delong's financing model can be simply summarized as follows: one is the circular financing model of asset mortgage-bank loan-investment-remortgage-reinvestment; the other is asset guarantee (guarantee between subsidiaries, guarantee between parent and subsidiary companies) guarantee)-financing-investment-re-guarantee-refinancing-reinvestment chain model. Through the chain application of the two methods, the initial capital released powerful "nuclear fusion" capabilities and promoted Delong's large-scale capital flow. Economics has always emphasized the need to use minimum input to obtain maximum output. No economics has ever said that there will be output without input. The problem in China now is that in addition to the very narrow financing channels for private enterprises in our country, many enterprises have not innovatively made full use of financial leverage. This is also a major regret. In terms of the source of capital, it can be divided into two categories: one is the capital raised by the enterprise; the other is the capital borrowed by the enterprise. The relationship between capital and debt forms a combination of capital, and therefore, any enterprise will encounter this pair of relationships. Although China is currently encountering great difficulties in the relationship between capital and debt, especially many state-owned enterprises that are insolvent, we still have to say that the modern market economy is an economy with highly developed credit and a mature economy. Enterprises must learn to make full use of credit and debt to achieve their business goals. To have no debt at all or not to be able to use debt is to have no real grasp of the operation of capital. As a private enterprise, Delong learned how to legally and rationally use debt as a financial lever to finance and rapidly develop its own financially aware enterprise during its entrepreneurial period. When Delong developed into a huge enterprise system, Delong made full use of its huge capital strength to provide a steady stream of funds for the development of the Delong system through various guarantee methods, including guarantees between subsidiaries, It also includes guarantees between parent and subsidiary companies. For example, through the joint guarantee of Alloy Co., Ltd. and Xiang Torch, Shanghai Xingtehao Group Company, to which Alloy Co., Ltd. belongs, obtained a loan totaling 400 million yuan, ensuring the development funds for Xingtehao's M&A activities and integrated industries. Maximizing financial leverage for extensive financing is one of the main features of Delong Capital's operating model, thus providing continuous financial support for Delong's development. 2. Use strong financing capabilities to continuously acquire listed companies through equity transfer in the primary and semi-market. Many people ask, what did Delong do with so much money? President Tang Wanli said: "What did we use the money for? We all bought businesses. From the day Delong was founded, we entrepreneurs have never distributed a single dividend. We also invested all the dividends we should distribute into the business. "So, how did Delong buy the company? We found that Delong’s M&A models mainly fall into two categories: (1). Acquiring most of the equity of the parent company of a listed company to achieve the purpose of indirectly controlling the listed company. For example, it acquired the parent company of three listed companies: Xinjiang Tunhe, Tianshan Cement, and Chongqing Industrial. Acquisition of company equity. The acquirer may be Delong headquarters itself, or it may be a listed or unlisted company under Delong. (2) Directly transfer the equity of the major shareholders of the listed company to achieve the purpose of directly controlling the listed company, such as the merger and acquisition of Shenyang Alloy and Xiang Torch. It is different from many companies that directly acquire equity in the secondary market to achieve the purpose of controlling the target company. Delong mainly looks for partners in the primary and semi-market and transfers equity through negotiation. The obvious feature of this approach is that the direct cost of mergers and acquisitions is relatively low, relatively safe, and it is not prone to illegal operations. Facts have shown that Delong's M&A strategy is relatively sound and effective. Delong's mergers and acquisitions of several listed companies were completed in a "quiet" process, and the results also brought satisfactory benefits to all relevant parties, including equity transferors and small and medium-sized shareholders.

Through the acquisition of state-owned equity, Delong has successively acquired Xinjiang Tunhe, Shenyang Alloy and Xianghuo Torch. It is called the "Delong Group" in the securities market because the stock prices of these three listed companies controlled by Delong have soared magically. In more than three years, the stock prices of Tunhe, Alloy, and Torch have risen by 1100%, 1500%, and 1100% respectively, so much so that the legend of "virtue leads to spirituality" has appeared in the stock market. Which stock is considered to be related to Delong? Investors flocked in. This phenomenon is known as the "Delong phenomenon" in the Chinese stock market. What exactly supports this rare increase? If Delong put some so-called high-quality assets into these listed companies, raised the stock price to high levels and then cashed out, we would have reason to call it speculation. However, as the stock price steadily strengthened, we found that Delong did not cash out, but used these listed companies to launch larger-scale industrial integration actions, making these listed companies one after another become the hub of industrial integration. From here, we can discover the deep purpose of Delong's capital operation, and this deep purpose is precisely the substantial difference between Delong's capital operation model and other companies. 3. With the post-merger listed company as the core, by giving full play to its strong financing function, it can conduct large-scale global integration of its traditional industries to form a powerful strategic investment system.