Chapter 122 Seeking a Breakthrough (Medium Cup)
Jiang Miao glanced at a document transferred from the secretary's office.
"Haida Group?"
"Yes, this is the cooperation invitation they sent this morning." Business Secretary Liu Deming nodded.
Jiang Miao looked at it and asked, "Do you have any information about this company?"
"Yes." As a business secretary, Liu Deming naturally knew to prepare information in advance to avoid being asked by his boss, but he showed his incompetence in answering all questions.
He opened another document and said: "Haida Group is a well-known high-tech enterprise group in agriculture and animal husbandry. It was established in Yangcheng in 1998 with a registered capital of over 1.5 billion yuan. It currently has more than 600 branch companies and nearly 40,000 employees. Employees, listed on Pengcheng A-share market on November 27, 2009, ranking among the top five in the global feed industry. ”
“Its business scope covers the entire modern agriculture and animal husbandry industry chain such as feed, seedlings, animal health vaccines, smart breeding, and food processing. The feed business includes aquatic feed, livestock and poultry feed, and aquatic feed premix, etc., and is the main source of revenue. , accounting for over 85% of revenue.”
Jiang Miao raised an eyebrow: "Feed production company?"
Liu Deming added: "It is also a company that our company has cooperated with before. Our farms have been buying fish feed from them before."
"They asked us to cooperate in developing feed products?"
Liu Deming described what he learned in a clear-cut manner: "Boss, in fact, their company's R&D strength is not weak. It has a central research institute, three major R&D centers, more than ten R&D pilot bases, and a scientific research team composed of more than 1,700 masters and Ph.D. The team has invested more than 4.6 billion in R&D and has formed a relatively mature technology system. It currently has more than 200 patented technologies and is at the leading level in the country in terms of high-quality aquatic seed selection and development of microecological preparations.”
In response, Jiang Miao smiled and shook his head: "If it was really that strong, it would not cooperate with us. Have you ever understood the financial status of this company?"
"Yes, because they are listed companies, their financial reports are relatively easy to find."
"Tell me about it."
"According to their disclosed financial reports, their annual net profit in 2024 will be 2.436 billion yuan, a year-on-year decrease of 11.13%; their 2023 annual net profit will be 2.741 billion yuan, a year-on-year decrease of 7.31%; and its 2022 annual net profit will be 2.957 billion yuan, A year-on-year increase of 80.74%, this year’s financial report has not yet been announced.”
Jiang Miao watched Haid Group sell a total of 22.31 million tons of feed last year, and its feed industry accounted for about 85% of the total revenue, which means that 85% of the 2.436 billion yuan was the net profit generated by the feed industry, which was 20.706 billion.
This means that the company only made an average of 92.8 yuan per ton of feed last year.
Seeing this, he understood why Haid Group hurried over to seek cooperation.
Because the price of fishmeal and fish oil has been affected by the sharp reduction in production in Peruvian fisheries this year, the market price has increased for five consecutive months.
At present, the CIF price per ton of Peruvian fishmeal or Hokkaido fishmeal with a crude protein content of 67% has reached about 16,000 yuan.
Similarly, as a commodity among feed raw materials, the price of soybean meal has also shown a considerable increase this year. The current market price is 3,628 yuan per ton, an increase of about 14% from the beginning of the year.
In this case, major feed manufacturers will face a serious crisis of rising raw material prices.
However, at present, major feed manufacturers are unable to significantly increase prices, because the global feed industry is currently in a state of relative excess capacity, and everyone is caught in a cruel involution.
Price increases are not just a matter for your own company, but also depend on whether your friends are willing to increase prices at the same time, otherwise it will only kill you.
The wholesale feed prices of various feed manufacturers are all below the cost line, and profits are very low.
Compared with other feed manufacturers, Hailufeng Company has very obvious advantages.
Master the production of core raw materials.
New feed formula for efficient farming.
Exclusively occupy two segments of the fish feed market.
Haid Group did not find any abnormalities in the first two months when Hailufeng Company started selling feed. Until early November, when they calculated the sales volume in various places in the previous month, they found that their company's eel feed was in the eastern Guangdong region. Sales volume dropped significantly, so people were hurriedly sent to investigate the matter.
Through this investigation, they discovered that Hailufeng Company was selling eel feed and Egyptian pond lice feed.
After further in-depth investigation, the sales department of Haid Group found that Hailufeng Company is very complicated. Compared with Haid Group, which needs to purchase fishmeal, fish oil, soybean meal and corn every year, Hailufeng Company has initially achieved some core raw materials in terms of raw materials. Self-sufficient.
As one of the giants in the feed industry, the feed research and development department of Haid Group is very strong. Soon, based on the feed samples and various information collected by the sales department, after passing the preliminary test, it was discovered that the products produced by Hailufeng Company The feed is not only very precise in proportion, but can also effectively reduce the feed-to-meat ratio and compress the eel's growth cycle.
Among them, the eel deodorized feed, after more than a week of feeding experiments, they found that it can indeed effectively reduce the content of geosmin in the eel.
This incident quickly alarmed Xue Hua, chairman and president of Haid Group.
The management of Haid Group held meetings for several days, and finally decided to try to contact Hailufeng Company first.
Originally, among their company's senior executives, some proposed acquiring Hailufeng Company, while others proposed directly imitating the other party's feed.
However, after they got to know the details of Hailufeng Company in depth, they stopped talking about acquisitions and "borrowing" feed formulas.
The reason is very simple. They found that Hailufeng Company's profits are astonishing. In the first half of this year, it has paid more than 200 million yuan in various taxes. Judging from its operating conditions, it is estimated that the profits will be even higher in the second half of the year.
Haid Group’s revenue last year was 110.3 billion, and its annual net profit was less than 2.5 billion.
The net profit of Hailufeng Company in the first half of the year exceeded 500 million.
It seems that Haid Group is huge, but what's the use?
The annual net profit is not much different between the two, which is very telling.
One is a giant with clay feet.
One is short and to the point.
Moreover, Hailufeng's short and compact company is only temporary, similar to a minor that has not fully developed. If we look at it in a few years, it will probably become a national or even global behemoth.
As for the idea of borrowing the recipe.
After investigating 163 patented eel feed formulas and 67 Egyptian pond lice feed formulas registered by Hailufeng Company, everyone at Haid Group gave up this unrealistic idea.
This obvious patent family shows that Hailufeng attaches great importance to the protection of intellectual property rights. As feed is an export product, the other party only needs to check it and take the feed for testing to know the general situation of the feed.
As Haida Group is always on thin ice, coupled with the characteristics of a listed company, it is impossible to win a lawsuit for such blatant infringement of other companies' patents.
When the time comes, you will end up eating the chicken but losing the rice.
Therefore, after repeated consideration, Xue Hua decided to cooperate with Hailufeng Company.
The cooperation invitation Jiang Miao had at this time was that the other party hoped to introduce the No. 4 feed formula for feeding Egyptian pond lice in the production of fishmeal and fish oil.
Jiang Miao can guess a thing or two about Haid Group's thinking. It is very likely that Xue Hua wants to reduce the high production cost of feed through large-scale self-production of fishmeal and fish oil.
The other party mentioned another cooperation, that is, their company promised not to enter the subdivided field of fish-free feed, and hoped that Hailufeng Company could develop supporting fish-free feed.
In other words, Haid Group intends to use Egyptian pond lice fish meal and fish oil to reduce the cost of part of its ordinary feed, thereby reducing costs and increasing profits.
However, because Egyptian pond lice meal and fish oil are used as feed, the earthy smell in aquatic products will increase to varying degrees, seriously affecting the quality of aquatic products.
At this time, you need to use Hailufeng Company's fishy feed.
Jiang Miao thought for a moment, then raised his head and ordered: "Deming, inform Haid Group that I can meet them at noon tomorrow."
"Okay." Liu Deming nodded, and at the same time, he didn't think there was anything wrong with the boss's tone.
After all, this cooperation was approached by the other party on its own initiative, not by Hailufeng Company's request. Naturally, Jiang Miao would not go to Yangcheng to waste time. If the other party was really sincere, he would come to negotiate in person.
Liu Deming had just replied to the other party's email, and within half an hour, he received a reply.
Haid Group also knows very well who the big and small kings are, and said that their chairman will come in person to discuss cooperation matters at noon tomorrow.
The next day, noon.
Jiang Miao and Jiang Haibo, as well as Qin Hanming from the Price Research Office and Commercial Secretary Liu Deming, received Xue Hua and his party from Yangcheng in the restaurant of the experimental area.
"Mr. Xue, please sit down."
"Mr. Jiang, I have admired you for a long time." Xue Hua, a square-faced man, looks like he is in his forties, but in fact he is already 55 years old this year.
Jiang Miao poured the other party a cup of tea: "Mr. Xue, drink tea."
"Mr. Jiang, you're welcome. Our main reason for visiting this time is to reach cooperation with your company. I wonder what conditions Mr. Jiang has?" Xue Hua, who has a technical background, has no intention of beating around the bush. "Your company wants to alleviate the supply pressure of raw materials by breeding Egyptian pond lice. This is indeed a good idea. I also have my own ideas about the planning of the Egyptian pond louse industry." Jiang Miao said slowly:
"If your company breeds Egyptian pond lice by itself, the comprehensive cost can be reduced to 1.5 yuan per kilogram of Egyptian pond lice. The crude protein content of Egyptian pond lice fed with our company's special formula is about 25%. Each ton of Egyptian pond lice can produce 373 kilograms of fish meal. , plus other costs, the cost of fish meal per ton is about 4,400 yuan.”
Xue Hua nodded: "Indeed, we can indeed do this."
"This is the contradiction. Currently, our company's unified purchase price for Egyptian pond lice is 3 yuan per kilogram. Of course, starting next month, we will also lower the purchase price to 2.5 yuan per kilogram. This means that our purchase price per ton The cost of fish meal is about 7,000.”
Hearing this, Xue Hua already understood the contradiction.
There is a difference of 2,600 yuan in costs between the two parties.
Obviously, this money was given by Hailufeng Company to the farmers.
But Haid Group most likely produces Egyptian pond lice by itself, so this money will definitely become its profit margin.
Jiang Miao didn't want to take advantage of the other party.
After all, Egyptian pond lice also have fish oil as a by-product, which is also very valuable.
After thinking for a while, Xue Hua came up with his solution: "How about this! For every ton of Egyptian pond lice fish meal we produce, how about paying your company 1,000 yuan in royalties?"
"It's low, don't forget the fish oil."
"1500, this is basically our limit."
"1600, just so your cost can be stuck at 6000."
Xue Hua discussed quietly with several management personnel for a while, then nodded: "Okay."
“A pleasure to work with.”
Xue Hua smiled bitterly in his heart, this is the strength of technological leadership.
If they do not use the patented feed of Hailufeng Company, the cost of breeding Egyptian pond lice will increase to 2 yuan per kilogram, and the crude protein content of fish meat will only be about 20 to 22%.
Although there are some small fishmeal factories in China, the cost can reach 4,000 to 5,000 yuan per ton.
How is this done?
Of course, it uses scraps and semi-rotten aquatic products that are not needed in the market. The quality of this fish meal is very poor. Not only does it deteriorate very quickly, but it can also easily make the aquatic products, livestock and birds that are fed sick, or the fattening effect is not obvious. .
In addition, this kind of fish meal is produced by small factories, the production capacity is very unstable, and there is no way to supply it in large quantities.
Large feed factories like Haid Group will not purchase this kind of low-quality fish meal.
As for imported fishmeal, even in the cheapest year, the CIF price of the worst type of Peruvian 65% crude protein fishmeal started at 6,000 yuan per ton.
In other words, even if Haid Group accepts the overlord contract from Hailufeng Company, its total cost of fishmeal per ton is only 6,000 yuan.
The key is to control the supply of some core raw materials, which is the most critical for Haid Group.
Otherwise, if there is any international disturbance and the price of fishmeal, soybean meal and corn soars, they will fall into passivity again and eat up a large part of the company's profits.
Without its own raw material supply channels, sometimes it doesn’t even have the right to negotiate prices.
At present, among the top 10 fishmeal manufacturers in the world, except for the second-place Cocabin Company, which was acquired by China Fishery Group, the other nine are foreign companies, and they are inextricably linked to the four major ABCD grain merchants and Western capital. relation.
In order to break this dilemma, Haid Group must cooperate with Hailufeng Company.
Xue Hua soon discussed another cooperation project: "We want to cooperate with Hailufeng Company to research better feeds. I wonder what Mr. Jiang wants?"
However, Jiang Miao shook his head. He knew that his research style was different from ordinary people. If he cooperated with Haid Group, the researchers sent by the other party would probably find abnormalities, so he rejected the proposal:
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“Mr.
"Okay!" Xue Hua also knew that this kind of thing was difficult.
After all, Hailufeng Company's technology is powerful, and Haid Group is huge. Who has the final say on the research and development projects at that time, which can easily lead to conflicts.
He then settled for the next best thing: "Mr. Jiang, I admire your R&D strength very much. If your company needs to produce feed on a large scale in the future, Haid can provide you with OEM services."
"This can be considered." Jiang Miao smiled and nodded.
Sometimes OEM is also an option, especially when production capacity needs to be increased in a short period of time. If you choose a large feed production company like Haid Group, it has a large amount of idle production capacity.
If you build your own factory, the cycle will be lengthened and the initial costs will soar.
However, Jiang Miao does not fully trust these OEM companies. If there is a problem with the other party, or the cooperation is suddenly terminated, it will cause problems with the company's feed supply.
Therefore, even if it wants to find Haid Group for OEM, Hailufeng Company still needs to have its own factory to avoid sudden situations and supply disruptions.
From the conversation just now, Xue Hua also had a preliminary understanding of Jiang Miao's personality and acting style. It is obvious that Jiang Miao is a person with a strong desire for control, otherwise he would not have chosen to register a sole proprietorship. From this point of view , he can basically guess that the other party will not completely hand over the feed OEM to Haid Group.
He smiled and changed the subject: "Mr. Jiang, do you have any ideas for developing other fish feeds?"
"Indeed, but it takes time." Jiang Miao naturally would not say that he already knew the genes of most aquatic products and could tailor feed to them based on the genes of these aquatic products.
After all, you have to eat your food one bite at a time.
If too many high-efficiency feeds are launched at once, it will not only impact the market, but also attract attention from the outside world. This is not what Jiang Miao wants to see.
"By the way, Mr. Jiang, your company can remove the feed formula of Egyptian pond lice, can you also authorize it to our company?" Xue Hua did not intend to miss this opportunity.
Jiang Miao glanced at the other party: "Xue always wants to get rid of the earthy smell of Egyptian pond lice? So as to avoid the high content of earthy smell that affects sales, right?"
"Exactly." Xue Hua did not deny this.
"It's not impossible, but your production cost of Egyptian pond lice will increase. Even if you have the advantage of feed cost, the comprehensive cost per kilogram will still reach about 3.3 yuan. Plus the authorization fee given to us, per ton of fish meal The comprehensive cost will reach 11,200 yuan.”
After hearing this, Xue Hua realized that he had thought too simplistically.
If it could be done directly, Jiang Miao would have done so long ago.
The cost of fishmeal is 11,200 yuan per ton. If the current international fishmeal price reaches 17,000 yuan per ton, it is naturally profitable and the benefits are huge.
The problem is that the price of international fishmeal market is affected by the sardine catch in Peruvian fisheries on the one hand; and the purchase volume of feed manufacturers on the other hand; finally, the large fishmeal manufacturers can also unite to adjust the market price.
Once Haid Group obtains fishmeal from Egyptian pond lice on a large scale, the price of fishmeal in the international market will definitely plummet.
In this way, if the cost of Haid Group's fish meal is 11,200 yuan per ton, as long as the price of fish meal in the international market is lower than this price, Haid Group's fish meal and related feeds will lose their competitiveness.
On the contrary, the initial cost of 6,000 yuan per ton is the most competitive version.
After all, when transporting fishmeal from Peru to coastal ports in East Asia is the cheapest, the CIF price is only 6,000 yuan per ton.
If the other party continues to reduce prices, Haid Group can also request from Hailufeng Company to reduce the authorization fee, which is also the supplementary clause required by Xue Hua.
This is mainly to guard against the outbreak of price wars.
The cost of Peruvian fishmeal is not low. Just transporting it from the coast of Peru to the coast of East Asia costs 840 to 1,000 yuan per ton. This kind of hard cost is difficult to compress.
Xue Hua knew the senior executives of China National Fisheries Corporation, who revealed to him some information about Cobink, a company controlled by China National Fisheries Corporation. For example, the gross profit of fishmeal in Peru is about 200 to 1,000 yuan per ton.
This means that in the years when prices are at their lowest, even if Peruvian fishmeal producers do not intend to make money, the sales price cannot be lower than 5,000 yuan per ton. If the price is lower than this, they will have to pay a discount.
The production cost of Haid Group is 4,400 yuan per ton, plus 1,600 yuan for the technology licensing fee of Hailufeng Company.
When necessary, the only way to maintain a price balance between the two parties is to reduce the licensing fee to Hailufeng Company.
After having lunch.
In the evening, the legal affairs of both parties discussed the relevant terms.
Jiang Miao and Xue Hua signed a strategic cooperation agreement on behalf of Hailufeng Company and Haid Group respectively.
(End of chapter)