Chapter 431 The Rise of Botanical Pesticides
"I think so too." Liu Deshu said with concern: "Ke Chemical Group wants to acquire Syngenta."
“So does Sinochem also want to participate?”
"There is too much capital required, and the chemical group does not have the conditions for capital financing. If it wants to make a successful acquisition, it must have the participation of Sinochem."
Guo Yang does not remember the specific process of the original air-to-air merger and acquisition of Syngenta.
But he knew that this was not a successful merger and he exhausted all means to raise funds.
However, debt needs to be repaid.
The plan was to pay off the debt through corporate profit gains and a company listing, but unfortunately, neither path worked.
After the merger and acquisition, Syngenta suffered an average annual loss of 7 to 8 billion yuan. How could it repay its debt?
Syngenta's valuation is extremely high, and the purpose of going public is to raise funds to pay off debts. This is a naked robbery and a blatant act of "cutting leeks."
Once listed, the stock market will inevitably collapse.
Therefore, Syngenta's road to listing was also blocked and eventually became a huge burden.
Guo Yang thought for a while and said: "The acquisition of Syngenta is nothing more than an attempt to improve the level of domestic agricultural technology. But if you do it right, you will be advanced and pioneer. If you do it quickly, you will be a martyr!"
"I understand what you mean, Mr. Guo." Liu Deshu sighed again: "Research and development is not easy either. You think everyone is the king of all."
"To put it bluntly, there is not enough investment. The vast majority of private enterprises have no money to engage in research and development. It is only in the past two years that the state has provided financial support. A total of 50 million yuan a year, but it needs to be divided among 17 companies."
Guo Yang complained: "The amount allocated to Quanwang is only more than two million, and Quanwang's annual R&D investment is more than 100 times that."
Liu Deshu said: "State-owned enterprises lack innovation mechanisms. Sometimes they want to engage in R&D innovation, but it is difficult to produce results, and the results will be copied quickly. In such an environment, the competitiveness of enterprises is greatly reduced, and the enthusiasm for R&D is also dampened. .”
"Is this what I can hear?" Guo Yang did not expect Liu Deshu to say such words.
"The problem is there. You can't blind your eyes with a leaf. As an old man, I will retire in two or three years at most. There is no harm in complaining."
Guo Yang said with a half-serious smile: "Yes, I will retire in two or three years, but don't take the blame again."
Liu Deshu on the other side of the phone frowned and said, "It seems that Guo always has a low opinion of Syngenta. Does he know some inside information?"
"There is no inside story, it's all on the surface, and the giants are obviously declining." Guo Yang said with a smile: "Mr. Liu might as well watch for two more years and wait and see what happens."
"Mr. Guo is quite confident." Liu Deshu pondered for a moment and said, "Sure enough, you still have to communicate with young people if you have nothing to do."
"Mr. Liu is always welcome to guide the work."
"Okay, I will definitely come if I have the chance."
After ending the call, Liu Deshu pondered for a while. Ren Jianxin of the Chemical Group was ambitious and was called a merger maniac by the media.
This time too, the meeting was initiated after Monsanto quoted Syngenta.
Once Syngenta reveals its intention to sell its stake, be prepared to rush in.
And this is obviously a high probability event.
Therefore, Ren Jianxin of the Chemical Industry Group started preparations early.
The chemical group's liabilities are too high and its assets are not enough to meet the requirements for overseas financing. It can only seek to attract Sinochem. After the merger and acquisition is completed, the two companies will be merged and listed...
It's just that the amount of funds required is too large. Although Syngenta's market value is only more than 30 billion US dollars, if it wants to steal food from Monsanto, this number will only be higher.
The combined total assets of Sinochem and ChemChina are only slightly higher than this.
After the merger and acquisition is completed, what will happen to the subsequent operations? The management systems of state-owned enterprises and foreign enterprises are also completely different. How to integrate them?
Can its core technology be used by me?
Various problems caused Liu Deshu, who was already cautious, to express his opposition at an internal meeting.
But Ren Jianxin insisted and repeatedly emphasized the importance of winning Syngenta of Switzerland.
In view of the turbulent public opinion and the great interests of national food security and improving the country's agricultural technology level, many people have supported Ren Jianxin.
Sinochem was also forced into the whirlpool.
"Syngenta has a hidden and unpredictable deep-seated crisis."
"If you walk accurately, you are a pioneer; if you walk quickly, you are a martyr."
Liu Deshu recalled the conversation with Guo Yang word by word,
"Wait two more years and wait and see what happens... Should the word 'change' be applied to all creatures?"
"Then just wait."
At the next meeting, Liu Deshu stood clearly opposite to Ren Jianxin and firmly opposed the merger with Syngenta.
Everyone could feel that his originally relaxed attitude had become tougher than ever.
This made Ren Jianxin very angry!
The two of them immediately got angry at the meeting.
"Liu Deshu, you have no regard for the overall situation. You are in a high position, but you are doing nothing. Are you worthy of the position you sit in?"
"Yes, you Ren Jianxin is serving the country and the people. You are amazing and noble!"
After several consecutive talks collapsed, the merger of DuPont and Dow is accelerating, with countries such as the United States and Brazil giving the green light to the merger.
At the same time, in Europe, Syngenta's board of directors did not respond directly to Monsanto, but some shareholders expressed their willingness to sell their shares.
Syngenta has no controlling shareholder, and all equity is held by pension insurance funds.
Falling market share and disagreements among shareholders have led to internal instability.
The public is aware that a sale of Syngenta's stake is a real possibility.
Since then, many companies have begun to formally contact Syngenta, but Monsanto, which bypasses the board of directors and directly contacts shareholders, still has the upper hand.
The domestic public opinion environment has also become turbulent due to the promotion of thoughtful people.
It's summer.
In Lan City, a factory is surrounded by green trees and flowers. It would be difficult for an uninformed person to think that this is a pesticide preparation factory.
Guo Yang has just completed his inspection and is very satisfied with the factory's production and environmental protection issues.
After returning to Yu Qin's office, Guo Yang said with a smile: "The public opinion environment is not good recently. I have always been against them. It's time for King Quan to come out and show his face."
Yu Qin, who was accompanying him, said: "I've been here, but there are still bases in Asafoetida Gobi and Yun Province that I haven't gone to. Information about the marigold and pyrethrum bases in Kenya has not been sent back. This episode of "Five Acres for Big Ben" has to wait. some time.”
"Okay, wait, don't rush, Mr. Yu, you have a heavy burden, and the promotion of biopesticides has a long way to go!"
"Haha, I'm actually quite optimistic." Yu Qin said with a smile: "Although the market for biopesticides is small now, farmers' views are changing and the market is expanding.
Quanwang has two exclusive natural plants, namely, Sophora vine and Wolfwort, and has established production bases for azadirachtin, matrine, lutoxin, triptolide and pyrethrin. The brand matrix has also been formed, and marketing channels are based on De Agricultural supplies can also be distributed throughout the country.
The growth rate of Quanwang biopesticides will not be low this year! ”
Guo Yang also laughed and said: "Liu Deshu said that I am confident, but now I know where the roots are. You are not confident, you are just raising your tail to the sky."
Last year, Quanwang’s biopesticide sales were 1.286 billion yuan, but the figure the year before last was just over 200 million yuan, an annual growth rate of more than 500%.
If this growth rate is maintained this year, it means that Quanwang's biopesticide product sales will reach more than 8 billion yuan.
It is higher than the market share of biopesticides in the country, which is obviously a bit whimsical.
Yu Qin hummed and said: "From spring plowing to summer, the combined sales of Quanwang's three major brand preparations: Suxia, Qingjia, and Xinye have reached 1 billion yuan, and the three major products throughout the year are expected to exceed 2 billion yuan. Yuan!
Coupled with the launch of other product series, as well as the export of raw materials and the development of overseas markets, the revenue of the biopesticide sector is expected to exceed 3 billion yuan! ”
Guo Yang said: "The growth rate is much lower than last year. It is not an exaggeration to say that your tail is flying high."
Yu Qin was a little annoyed, "Overseas markets can only export original drugs, and the preparation market is still far behind the giants."
"Quanwang's overseas expansion must also be accelerated." Guo Yang mused: "With the merger of DuPont and Dow, the global chemical industry will also be reorganized. During this period, the assets divested by giants such as Dow Brazil and Pakistan, Quanwang Pay attention and follow if you have the chance.
In addition, factories planning to invest overseas must also hurry up, especially factories in the United States. If Quan Wang solves the mutated caltrops and fire ants, he will make a lot of money. ”
"Hahaha, the task is also heavy!" Yu Qin sighed, "I have been flying on the plane in the past two years."
"The results are also very impressive. Quan Wang is unstoppable." Guo Yang smiled and said, "Are you ready to become Quan Wang's shareholder?"
Yu Qin said in surprise: "Haha, I have been waiting for this day for a long time."
Quanwang's current achievements are inseparable from Yu Qin.
Although he has the blessing of special plants, Yu Qin's consistent emphasis on research and development is also the key to Quan Wang's transformation.
Plant raw materials→pesticide intermediates→pesticide raw materials→pesticide preparations→distribution, Quanwang’s entire biopesticide industry chain has also been formed.
What is lacking now is market development.
At this time, giving some incentive shares to the senior management team will achieve the best results.
In the pesticide market, chemical pesticides dominate the market, while biological pesticides only play a supporting role.
What Quanwang has to do now is to break this inherent perception and reshape the market structure.
This requires an extremely aggressive team!
The competition for every inch of land in the market, increasing scale and reducing costs in production, and improving quality in research and development... all require the subjective initiative of employees.
The equity incentive plan has also been completed long ago, and many adjustments have been made on the basis of the employee dividend plan.
Quanwang is already a very mature company with a stable team. It can now make stable profits and has a high level of mutual trust.
Therefore, Guo Yang adopts the method of asking employees to pay for shares. If employees have insufficient funds, they can also use futures shares to invest.
The so-called stock futures are similar to buying a house with a mortgage.
That is, a certain proportion of equity is granted to employees, so that employees can enjoy dividends first. After receiving the dividends, the dividends are then used to repay the amount payable when purchasing shares.
This time, Guo Yang plans to release 10% of the equity first and reserve 5% to 10% to prepare for future expansion.
Quanwang's turnover last year was approximately 2.8 billion yuan, and its net profit reached 504 million yuan.
After some weighing, Guo Yang simply and crudely valued Quanwang at 5.04 billion yuan, or a price-to-earnings ratio of 10 times.
This is a relatively low valuation for Quanwang, which is on the rise.
However, considering that Quanwang has no plans to go public, all of the income from employee shares is expected to come from dividends.
This valuation is not low either.
Because according to last year's profit calculation, one thousandth of the shares require employees to invest 5.04 million yuan in principal.
Even if all the profits are used for dividends, one thousandth can only be distributed to 504,000. If Quanwang's development stagnates, it will take ten years to repay the payables.
However, when Yu Qin announced the equity incentive plan within Quanwang, he received an enthusiastic response.
Many employees who were qualified to subscribe rushed to celebrate. Even some people who had doubts gave up their doubts after in-depth thinking.
Quanwang's profit last year was 500 million, what about this year?
One billion yuan is a conservative estimate.
Moreover, it is obvious that Quanwang is expanding rapidly, with hot products, rapidly expanding production capacity, and a moat formed by high R&D all year round...
Maybe Quanwang’s profit will reach 5 billion yuan in a few years!
Even if the enthusiasm of employees is stimulated, it is not impossible to go further!
"The boss is so generous. From today on, the laboratory will be my home!"
"Atmosphere!"
"I want to grow with the company!"
"Run to the market, run to the market. If I don't go to work for a day, I feel panicky!"
"Hahaha, the grandsons of Denon are so envious that their eyes are purple with envy, saying that the boss is giving money to his employees!"
The enthusiasm of employees to subscribe exceeded Guo Yang's imagination. In just over a week, more than 80% of those who were qualified to subscribe signed the agreement.
Many people also actively chose to pay to subscribe for shares.
Guo Yang said with emotion: "The employees are very confident and their morale is usable!"
"But even if the boss sends money, there are still some people who are unwilling to take shares." Yu Qin shook his head and said, "These people are too seriously influenced by the outside world."
"If people don't agree with each other, there will be fewer millionaires." Guo Yang said with an indifferent smile.
Equity incentive reform is the path that Jiahe must take to become a multinational group. The future is bright, but people need to pay for it.
Not only Quanwang, but also companies such as Tianhe, Haohe, Fengkai, and Hexi are also taking this step one after another.
However, the turmoil in the agrochemical industry has become even worse recently, so Guo Yang personally stayed in Quanwang to encourage the mid-level, senior management and core employees who subscribed.
As long as they are willing to participate in the subscription, they are all full of confidence in Quan Wang and are as excited as if they had been given blood.
However, there was still a small group of people who did not agree with Quan Wang and gave up their subscription even for futures stocks. There were also some people among whom Yu Qin was very optimistic.
These people have basically been affected by the recent mega mergers and acquisitions. Only one month has passed, and the merger of DuPont and Dow is progressing quickly, and Syngenta's board of directors has also officially conveyed its intention to sell equity to the outside world.
Monsanto is the most promising acquirer.
There are people in China who are deliberately conveying pressure all the time, making people feel like there is a big mountain pressing on them.
"The domestic agrochemical industry is finished."
"Long-term contract workers are stuck, and their only life is to produce the original drug."
"Once the giants merge and control the core technology, funds, and talents, what can the foundry companies do to stand up?"
All kinds of pessimistic remarks flood the Internet, television, business circles and other fields.
At this moment, it was suddenly reported that the chemical group was interested in bidding for Syngenta!
Ren Jianxin, CEO of the Chemical Group, publicly stated, "Domestic agricultural production technology is too backward. Syngenta's core technology is exactly what the country needs. The Chemical Group will bid for Syngenta at all costs and overcome numerous obstacles!"
Suddenly, news about Huaxia Chemical Group’s intention to acquire Syngenta spread all over the world.
It has caused a lot of feedback from the society.
A blogger on Huinong.com made a special interpretation, and there were overwhelming discussions on NIO’s Weibo.
Someone objected.
Some people agree.
Ren Jianxin and his group frequently appear in the public eye and offer various interpretations.
How backward is domestic agriculture, how miserable farmers are, how low-end the domestic pesticide industry is, and how important Syngenta is...
Under Ren Jianxin's unremitting efforts, some uninformed people really thought it was that good, and even took the initiative to give Ren Jianxin a high hat, saying that he was "acquisition for the country."
However, the chemical group's inherent weakness in assets is a flaw, and Sinochem must be roped in.
Liu Deshu, chairman of Sinochem Group, rarely appears, but insiders revealed that he has no interest in acquiring Syngenta and expressed sufficient confidence in domestic agricultural companies.
Although Ren Jianxin and others did not directly attack Liu Deshu, cynicism was inevitable.
“Where does the confidence of pesticide companies’ 1% R&D investment come from?”
"Half of the domestic vegetable seeds are still in the hands of foreign investors, but Syngenta has more than 2,500 vegetable varieties, and 150 to 200 new vegetable varieties are added every year. It is really confident!"
"The top 100 pesticide companies combined cannot compare to Syngenta in one business sector. It is a good thing to have confidence, but there are problems with arrogance."
Opponents are not vegetarian either, arguing around issues such as financial difficulties, genetically modified safety, and institutional integration.
Let the people who eat melon enjoy it.
However, this situation has inevitably affected the confidence of relevant practitioners.
Especially R&D companies.
Such as Quan Wang.
Therefore, when Guo Yang was throwing money away, some people who were qualified to subscribe still gave up their subscription, and some even proposed to resign because of this.
Guo Yang was not used to these people either.
He was worried that he wouldn't be able to give away the money, so he didn't keep the extra share and let the people below subscribe for it all.
At the end of June, Quanwang completed the equity incentive reform.
Suddenly, the entire team was filled with new energy.
It is early summer, when crops such as corn, cotton, rice, sunflower, fruits and vegetables are in peak growth season, and it is also the peak period for pesticide sales.
Quanwang's marketing staff went crazy and attacked the city everywhere.
The staff of Denong Agricultural Materials accompanied these lunatics around as if they had seen a ghost.
Quanwang's biopesticides have also reduced their costs after growing raw materials and increasing their processing capacity, and they have taken the initiative to cut prices.
First, it leaves a larger profit space for intermediate channel dealers such as Denong, and second, it also gives profits to the farmers at the end.
At this point, the competitiveness of the Quanwang series of pesticide preparations has been greatly improved again, and orders have been frequently won in farmland.
The hot sales quickly formed positive feedback, and employees became more motivated.
Although many people are stock futures investors, they still put in 120,000 efforts as if they were carrying millions of loans, and sales in various regions frequently hit records.
Other biopesticide formulation manufacturers have suffered.
Pollution-free vegetables, export vegetables, high-end fruits and tea, etc., as long as the base has quality requirements, it has long been the target of Quanwang's research.
Now the market share in this field has been consolidated again.
With the price cuts of the three major brands Susha, Qingyao and Xinye, the corn, rice, cotton and other crop markets have also frequently achieved breakthroughs.
Suzhou, in a village square.
DuPont Plant Protection China District is holding a grand brand promotion meeting.
Due to the merger of DuPont and Dow, this conference not only attracted major growers, but also many reporters.
The main pesticide brand promoted at the publicity conference is undoubtedly Kangkuan.
Paul Dunn, director of pesticide marketing for DuPont Crop Protection Asia Pacific, was the first to speak. He said:
"In just two years since its launch, Kangkuan's global sales exceeded US$300 million last year, which is an amazing feat."
"Currently, Kangkuan is accelerating its entry into more than 100 countries and regions around the world. Please remember its original name: chlorantraniliprole.
This is an epoch-making insecticide! DuPont expects him to become the world's largest insecticide! ”
After the translator repeated it, a reporter asked:
"I would like to ask Mr. Paul Dunn, what is Kangkuan's annual sales in the Chinese market? What are your expectations?"
Paul Dunn said: "Unfortunately, last year this number was only 120 million yuan. Our expectation is to achieve single product sales of 1 billion yuan, but this still requires the efforts of our business personnel."
After speaking, Paul Dunn looked at Zhang Yong, business director of China Region, and Dr. Jiang Yong, brand manager of field crop pesticides in the audience.
The expressions of the latter two were not so optimistic.
"120 million is already an excellent figure." The reporter sighed:
"China's pesticide companies all sell original drugs, but there are no pesticide preparations with such high sales volume, nor such excellent brands. I think Kangkuan will definitely be able to break 1 billion yuan, or even 2 billion yuan."
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There were many knowledgeable growers at the scene. When the reporter said this, a noisy discussion started.
The person in charge of translating for Paul Dunn was stunned for a moment before he processed it slightly and spoke to him.
But before Paul Dunn could say anything, the growers below were talking even more intensely, and the reporters who were also standing in the audience didn't know it.
"Did I say something wrong?
Pesticide associations, experts, professors, and even companies all admit that they are OEMs, and there are no viable pesticide brands in China!
Thanks to outstanding companies like DuPont and Dow, farmers are provided with high-quality agricultural products.
You guys, don’t always be greedy for cheap and buy pesticides produced by low-quality domestic small factories. They pollute the environment, have high pesticide residues, and are not safe.
When you buy imported goods, you will feel comfortable using them and the people will feel safe eating them. ”
The first half was okay, but what happened later made business director Zhang Yong and brand manager Jiang Yong call it terrible.
Young Jiang Yong ran a few steps quickly and grabbed the microphone from the reporter's hand. Zhang Yong arrived shortly after and glared at the reporter fiercely.
But the growers behind have already exploded.
The growers don't care whether you merge or not, and they don't care whether you are domestic or foreign-owned, as long as it is easy to use and affordable.
But as a reporter, you are not only arrogant, but also appear to be lecturing, and even make random accusations and ignite the situation. This is unbearable.
What's more, are domestic products really inferior to people?
Be ignorant!
Some growers with hot tempers couldn't help it and started spraying directly.
"Fuck your mother's shit!"
"Is this reporter from the island country? Is he so licking the Americans?"
"Kang Kuan is just like that. I bought it for two yuan cheaper than Su Kill."
"Lao Li, you have to change your concept. Quick killing is more expensive, but the effect is better. If Jiang Yong hadn't called me, I wouldn't have wanted to come today."
"What the hell, I thought I was taking advantage, but I ended up encountering this disgusting thing."
There was chaos below, and Zhang Yong and Jiang Yong on the stage turned green when they heard everyone talking.
There was more than one reporter present.
What's worse is that some growers have turned away.
It is foreseeable that today's farce is destined to be reported.
Although Paul Dunn didn't understand it, he felt that things were going in a bad direction.
After some appeasement, many growers and reporters stayed at the brand meeting.
As soon as Zhang Yong took the stage, someone asked loudly: "Mr. Zhang, some growers said that Kangkuan is not the best pesticide in the domestic market. Is it true?"
This call was like poking a hornet's nest, and people asked questions one after another.
"Which company is Quick Kill from?"
"I heard that Kang Kuan was completely suppressed by Su Kill. If Su Kill wasn't more expensive, he would have entered the rice market long ago."
"It's still a domestic brand. I almost thought I was hearing hallucinations."
Zhang Yong on the stage patted the microphone and shouted: "Quiet, quiet, today is DuPont's brand promotion conference."
Zhang Yongqiang hastily completed the press conference despite the pressure, but the reporters had no intention of letting go.
In the end, Zhang Yong personally admitted: "In the domestic market, Kangkuan does have a respectable opponent, a quick-kill insecticide from Quanwang Biotechnology."
After saying this, Zhang Yong and others gathered around Paul Dunn and evacuated in a hurry.
Paul Dunn already knew everything. The reporter disrupted the press conference, but the sense of oppression brought by Kang Kuan's strongest competitor also suffocated everyone.
The farmer actually rebelled on the spot!
Selling Dow South Asia to Quan Wang is even more of a stupid decision!
The reporters did not leave immediately. Instead, they found the big growers and asked some questions one after another.
These social journalists chasing hot topics eventually came home with a full load.
On the same day, the farce at the DuPont brand promotion conference was posted on NIO Weibo.
Quanwang Biotech, which ranks ninth on the domestic pesticide sales list, and its star brand: Quick Kill, have also appeared in public.
“Why did the DuPont brand promotion meeting fail?”
"Dupont Kangkuan PK is the king of quick kills, and growers prefer quick kills."
"Quanwang Biotech - a company that only produces botanical pesticides. Botanical pesticides decompose naturally and can achieve no pesticide residues. It is a savior for exporting products that earn foreign exchange."
"Quick-killing insecticide - broad insecticidal spectrum, applicable to many crops; high insecticidal activity, long duration, strong mixability, high safety and good effect."
DuPont and Dow are about to merge, and the chemical group is planning to compete with Monsanto for Syngenta.
At this time, Quan Wang, who was ranked ninth, suddenly became popular.
But it was because of a reporter who asked questions at the DuPont brand launch conference that caused dissatisfaction among the growers, which ultimately led to Quan Wang’s quick execution.
This dramatic scene made Guo Yang and others laugh and cry.
What else can we do? Let’s go out for publicity. Sushao, Qinggao, Xinye, etc. come out for a walk one by one.
However, some people did not take Quan Wang seriously.
No matter how you look at it, compared with DuPont, Dow, and Syngenta, Quanwang can only have small arms and legs!
However, when King Quan raised the banner of Jiahe Group, all doubts ceased.
As everyone knows, when supporters of the Syngenta merger gave examples, they only compared Syngenta's vegetable seeds and did not dare to touch field crop seeds.
The reason is that they are worried about Jiahe and Tianhe Seed Industry.
DuPont has Pioneer Seeds, Monsanto has Dika Seeds, and Syngenta has Syngenta Seeds...
However, Tianhe Seed Industry, a subsidiary of Jiahe, can completely compete in the domestic market, and is even more unbeatable in some varieties such as corn and soybeans.
Although Quan Wang is small, no one dares to ignore it at this moment.
At this time, Wu Mu Chang Da Ben Shang also quietly updated a program.
(End of chapter)