Chapter 738 Sanjiu Group
I don’t ride in luxury cars, enter entertainment venues, eat or drink, gamble, or even stay in high-end hotels. My daily life is very frugal.
All the family’s savings were invested in the factory, and my father and stepmother have been growing vegetables and farming in the countryside.
A super-rich man ranked 376th on the "China's 400 Richest List" of "New Fortune" with an estimated asset of 220 million yuan.
But he is willing to live in a very simple small house in the steel factory.
One of the walls of the house was hit by a large truck, but it was a relief.
And the car I drive all year round is a Santana 2000 that was paid off with debt.
He is obviously a very pure person who loves the steel industry. Otherwise, I can't think of why a rich man would be willing to live such an ascetic life?
Let’s talk about project planning.
Like almost all fields, private steel companies have always had cost advantages.
The cost of ironmaking is 60 yuan to 90 yuan lower per ton, the cost of steelmaking is 60 yuan to 150 yuan lower per ton, and the finished product is 100 yuan to 300 yuan lower per ton.
Tieben is the most typical example.
The products are positioned as higher-grade products such as marine plates and rebar.
Finally, the prospects of the steel industry.
In addition, Tieben's planned production capacity is 8.4 million tons. Once put into production, it will be second only to Baosteel and Tangshan Iron and Steel with steel production capacity of over 10 million tons in China.
At the same time as the Tieben incident occurred, Baosteel entered into a three-party joint venture with Asel, the world's largest steel company, and Nippon Steel, the second largest company, to start the construction of an 1,800 mm cold rolling project.
It laid the foundation for the outbreak of the Tieben incident.
In addition to low production and equipment costs.
Ansteel and Germany's ThyssenKrupp, Europe's second largest steel company, jointly invested US$180 million to build a hot-dip galvanized sheet project with an annual output of 400,000 tons.
"Your analysis is very good. However, there are a lot of troubles in Tieben, especially Dai Guofang's lawsuit has not yet ended. The failure of the Tieben project to pass the approval from above is itself a violation. This will not Changes with our acquisitions”
"Of course I know the troubles Tieben is facing. According to the company's survey feedback, the country is currently relatively tolerant of investment in the steel industry.
In addition, we have also signed an annual purchase agreement with the Australian Hammersley Company Long-term ordering agreement for 7 million tons of iron ore
Tangshan Iron and Steel Group and Maanshan Iron and Steel Group have signed an ordering agreement for 3 million tons of iron ore with the world's largest mineral resources company, Bibi Tuo Company. .
Things that should have been decided at the top level were only approved locally.
So, as long as we acquire a foreign steel company with certain influence, we can use cooperation. Ways to acquire iron capital project
And the cost of the blast furnace is only 300 million yuan.
Domestic economic reforms have always had the tradition of 'breaking through barriers'. The so-called 'go fast when you see a green light, go around when you see a red light'. Many reforms were successfully implemented through this kind of barrier-breaking. In the future, It was rumored to be a good talk, and of course some of them were imprisoned.
Also, Benxi Iron and Steel Group cooperated with Posco to launch a cold-rolled plate project.
The 8.4 million ton project was split into 7 sub-projects and 1 terminal project to be reported separately.
Tieben correspondingly established 7 "Sino-foreign joint ventures" with no name. When it came to the approval of construction land rights, the land was "broken into pieces" and divided into 14 pieces of land for approval.
I remember you mentioned before that China's real estate industry and construction industry have a 20-year golden development period. ”
Dai Guofang also reached a long-term iron ore supply agreement with an Australian mining company. The agreed price is more than 300 yuan per ton, while the market price is around 1,000 yuan per ton, and this price will remain unchanged for a long time.
Approval is relatively easy.”
Xu Liang thought briefly, “Do you like investing in the steel industry?”
“I like investing in companies with great potential. Good goal.
Moreover, the steel industry is currently accelerating integration. If we can integrate part of the domestic private steel industry, it will not be difficult to form a steel giant comparable to Anshan Iron and Steel and Baosteel.
And we also have enough funds and connections to advance this matter. ”
Hanhua has been developing in China for many years, and there are more than a thousand GPs who have invested in Hanhua. These are Hanhua’s connections.
If we really want to mobilize, it is not difficult to acquire Tieben.
“Let’s put the ironclad matters aside for now. ”
Xu Liang picked up the second document.
“Tell me about Sanjiu Group, why did you fall in love with it?”
“Although Sanjiu Group is currently suffering serious losses, its core assets are unique and have extremely high investment value. "
Jiang Xiaoyang said.
When it comes to Sanjiu Group, one person has to be mentioned, Zhao Xinxian.
He developed the famous "Sanjiu Weitai" based on the traditional Chinese medicine prescriptions he purchased.
This guy is also the pioneer of taxi roof advertising and celebrity commercial endorsements in China.
With excellent products and first-class marketing.
At the end of 1988, the output value of 'Nanfang Pharmaceutical Factory', the predecessor of Sanjiu Group, reached 1.8 billion yuan, with profits and taxes of 400 million yuan, ranking 82nd among the 500 largest industrial enterprises in the country, and becoming the most well-known domestic company at that time. , the most profitable traditional Chinese medicine company.
At that time, none of the companies such as Haier, Lenovo, and Vanke, which were founded at the same time as Sanjiu, had sales of more than 1 billion yuan, while Huawei and Wahaha were less than a year old.
What is the concept of an output value of 1.8 billion Chinese dollars in 1988 and a profit and tax of 400 million?
At this time, the per capita disposable income was only 1,181 yuan, house prices were 500 yuan per square meter, rice was 30 cents per pound, large items such as home appliances required tickets, and households with 10,000 yuan were considered rich.
With great success, 'Nanfang Pharmaceutical' launched a series of traditional Chinese medicine products such as Zhuanggu Joint Pills, Zhengtian Pills, and Dermatitis Pingping. Their sales exceeded 100 million yuan within one year.
Nanfang Pharmaceutical's capabilities in the development and market operation of traditional Chinese medicines are unmatched by anyone in the country. In a sense, it was one of the most successful market-oriented enterprises throughout the 1980s.
After the property rights reform in 1991, Nanfang Pharmaceutical Company was renamed as "Sanjiu Group".
Lu Xun once said that as long as you are successful enough, shit will be delicious.
In the Sanjiu Group, Zhao Xinxian is the general manager. There is no deputy general manager below. The group headquarters only has three departments: the Party Affairs Department, the Finance Department and the Human Resources Department. There is not even a president's office. Under Zhao Xinxian There are 5 secretaries to handle relevant specific matters respectively.
He proudly called this management setup the "one-person mechanism."
At that time, there was a general lack of successful business experience in China, and thanks to the successful background of the Sanjiu Group, this 'one-man mechanism' and the 'Haier experience' actually became the standard in the domestic business community.
Hyped learning.
As he became more and more successful, Lao Zhao inevitably drifted away.
Not only did they hang the billboard in Times Square in New York, they also took advantage of the 1990s when the country retreated and the people advanced.
From 1996 to 2001, Sanjiu acquired more than 140 local enterprises, averaging 2 acquisitions per month.
Among them, debt-bearing type accounts for 45%, holding type accounts for 35%, and trusteeship type accounts for 20%.
The debt-bearing type is a wholly-owned acquisition, the holding type is not difficult to understand, and the trusteeship type mainly does not require equity and only contracts management rights.
In this kind of crazy mergers and acquisitions, Sanjiu Group rapidly expanded into the largest traditional Chinese medicine company in the country, with total assets soaring to 18.6 billion yuan.
Affiliated companies spread across the country, forming eight major industries: medicine, automobiles, food, wine making, tourist hotels, commerce, agriculture and real estate.
It even owns one of the largest nightclubs in South China.
It’s just an exaggeration to open the door for exaggeration. It’s so exaggerated.
You must know that when Hanhua was not short of money, Huaxia Liquor Group only acquired companies in the same industry, and it only acquired less than 20 companies in two years.
In 1995, there were 140 companies.
Also spans eight industries.
No wonder that when Jack Welch was invited to attend the Fortune Global Forum Annual Meeting in Shanghai in 1999, he said that Chinese entrepreneurs "seem to be acting."
With hundreds of years of development, business models have evolved again and again in the Western business world.
China, which is still in a reckless era, is indeed a bit naive.
However, no one could have imagined that in just 20 years, these naive entrepreneurs would rapidly evolve and surpass their international counterparts.
Watch him build tall buildings, watch him entertain guests, and watch his buildings collapse.
In 2004, Sanjiu, which had expanded to its limit, was teetering on the edge of collapse.
Old Zhao forced his way up, but was directly pressed to death.
"Sanjiu Pharmaceutical is indeed a good industry with high value." Xu Liang said.
Even twenty years later, pharmaceuticals will be a lucrative business, let alone now.
And Sanjiu also has its own core products.
Sanjiu Weitai, Zhuanggu Joint Pills, Zhengtian Pills, and Dermatitis Pingping are all best-sellers on the market.
Moreover, Lao Zhao has a strategic vision and accurately grasped the context of China's Internet era and developed Sanjiu Health Network.
After entering the new century, through the rise of Gome and Suning, we predictably discovered new changes in China's business entering the era of 'channels are king'.
On the one hand, we quickly invested in building more than a thousand pharmacies across the country.
On the other hand, it has also quickly deployed in the upstream of the traditional Chinese medicine industry, acquiring Hainan Traditional Chinese Medicine Hospital and some Guangdong Traditional Chinese Medicine Hospitals, and even plans to establish a chain of traditional Chinese medicine clinics around the world.
Do you think this is Lao Zhao’s limit?
NO.
The concept of ‘big health’ was not proposed until ten years later.
Old Zhao started doing it two thousand years ago.
He invested 4 billion Huaxia coins in the eastern part of Pengcheng to build a health city of amazing scale.
Including the world's largest golf city with 90 holes, an ultra-luxury five-star health hotel, and a large comprehensive health service system including nursing homes, hospice hospitals and special care hospitals.
Old Zhao’s meaning is obvious.
After taking my medicine, you become a member of my family.
Everything is clearly arranged for you from birth to burping.
Unfortunately, Lao Zhao has a strategic vision, but lacks sufficient execution and management capabilities.
In the reckless era, he could still do well, but when business competition entered deep waters and management became refined, his shortcomings became more and more obvious.
To sum it up in one sentence, if you are willing to kill a thief, you are powerless to save yourself.
"What do you plan to do if you acquire Sanjiu Group?"
Xu Liang asked.
(End of this chapter)