Chapter 770 Tunhe Group
After the listing, although the profitability of Tunhe Cement Factory is not very good, it is still profitable at least.
Although leeks look down upon it, in the eyes of capital, this is a very good net shell.
So, they were spotted by Delong, who was prosperous in the capital industry and made a lot of money.
In October 1993, Delong acquired part of the collective shares of Tunhe Cement Factory and entered Tunhe as the fourth largest shareholder.
Delong's appetite is certainly not satisfied with being just a small shareholder.
Soon, he continued to make acquisitions and became the majority shareholder of Tunhe.
After obtaining the controlling stake, Delong relied on its abundant capital to carry out mergers and acquisitions non-stop.
Tunhe Shares, Tunhe Industry and Trade, and Tunhe Agriculture and Animal Husbandry were successively taken over by Delong.
On the basis of these enterprises, Tunhe Group was established.
What needs to be emphasized here is that Tunhe Group’s main business at the beginning was cement.
By the late 1990s, it was already the second largest cement giant in the Western Region with a cement output of over one million tons.
Besides Tunhe, there is also the largest cement giant ‘Tianshan Co., Ltd.’ in the Western Region.
Of course Tang Wanxin was not willing to just sell his adopted child.
On the contrary, the third, fourth and fifth sons were all killed.
Seeing that things were at an impasse, Deron quickly changed his mind.
After the integration of the two companies, the annual cement production exceeded 3 million tons, accounting for 60% of the cement production in the Western Region.
The huge economies of scale allowed Tianshan Shares to obtain a net profit of 93 million Huaxia coins that year.
As the saying goes, there is no room for two tigers in one mountain, except one male and one female.
However, the output of the two is not much different.
In March 2000, with the initiative of Delong, Tunhe sold its cement business to Tianshan Holdings.
So, in September 2002, it acquired 55.7856 million shares of Tianshan Building Materials Group, the largest shareholder of Tianshan shares, for 267 million Chinese dollars, accounting for 32.18% of the total share capital.
This sentence is also very accurate when it comes to the cement industry in the Western Regions.
Since 1996, Tunhe’s cement production has been continuously increased through mergers and acquisitions, technological transformation and other methods.
However, the major shareholder of Tianshan Co., Ltd. is not Delong Group, but the original big boss of Tianshan Co., Ltd. - Tianshan Building Materials Group.
If you can't win, then merge.
So in the late 1990s, the two giants were in love and fighting each other. If you cut prices and ship goods, I will also cut prices.
As a result, the two families were exhausted from the fight, and no one could do anything to the other.
They all want to kill each other and become the boss themselves.
If you buy it, I will buy it too.
Tianshan Co., Ltd. thus established its position as the third largest cement company in China and the largest in northwest China.
Not only did he become the largest shareholder of Tianshan Building Materials Group, he also directly controlled Tianshan shares, making him one of the "new three shares" of Delong Group.
Tianshan Building Materials Group and Tianshan Co., Ltd. have also become the aircraft carrier for Delong to integrate the cement and building materials industries.
Let’s talk about Tunhe Group later.
After selling its main business, the cement business, Tunhe Group’s main business has completely shifted to agriculture and animal husbandry.
Relying on the unique natural environment of the Western Region, hundreds of millions of yuan have been invested to develop the red industry with the core processing of tomatoes, safflowers, carrots, wolfberries and other special fruit and vegetable resources.
Through a series of buy buy buy.
In just three or four years, Delong has established an annual production capacity of 240,000 tons of tomato paste, 10,000 tons of tomato powder, and 10 tons of lycopene, ranking first in Asia and second in the world.
The products are exported to Europe, America, Russia, South Korea, Japan and Southeast Asia and other countries and regions.
In order to develop foreign channels, we also acquired the American tomato paste seller ‘Xinrui Company’ and the Italian ‘Gandover Company Sales Company’ with more than 20 years of tomato paste business experience, successfully entering the international market.
Now, Tunhe tomato sauce market share accounts for 75% of the country and 17% of the world.
Although it has become a world-class ketchup giant, Tunhe itself does not have much bargaining power.
In 2004, Tunhe’s income from tomato sauce was only about 900 million yuan.
Considering the fact that ketchup is not large in scale, Delong still adopts the old method of buying, buying, buying.
Acquisition of Emin Food Company, acquisition of Huiyuan Juice, etc.
Of course, Huiyuan was later bought by Xu Liang.
But Delong still insists on expanding its market in the juice and food industries.
Five apricot jam processing plants and 200,000 acres of orchards have been established in Kashgar, Hotan, Aksu and other places.
As of now, Delong has an annual processing capacity of 100,000 tons of fresh apricots and an annual processing capacity of 18,000 tons of apricot jam.
Tunhe apricot jam, dried apricots, almonds and cans are exported to Europe, America, Japan, South Korea, Central and Western Asia, Russia and Arab countries along the tomato sauce sales channel established by Delong.
Accounting for 40% of the international apricot jam market trade volume, it is a world-renowned supplier of apricot jam products.
In addition to tomato paste and apricot paste, Tunhe Group is also the largest sugar beet planting and sugar production enterprise in the country, with 450,000 acres of sugar beet production area in the Yanqi Basin and Ili region.
Owns 9 sugar factories in the Western Region and Jin Province.
The daily sugar beet processing capacity is 25,000 tons, and the annual production capacity is 470,000 tons of sugar, 183,000 tons of granular meal, and 42,000 tons of edible alcohol.
Sugar production accounts for 80% of the total production in the Western Region and 36% of the national beet sugar production. Tunhe brand tomato products, Tunhe brand apricot jam, Tunhe brand and Sifang brand sugar, Tunhe brand safflower, jujube, wolfberry, and Yuehuo juice from Tianyi Fruit Industry, a subsidiary of Tunhe, are all Huaxia Foods A brand with a very high market share.
What needs to be emphasized here is.
Because Huiyuan was acquired by Xu Liang very early.
Delong not only received a huge sum of 550 million Chinese dollars, but also reduced his debt by nearly 300 million Chinese dollars.
Most of this money was spent on Tunhe Group’s business expansion, especially animal husbandry.
Lu Xun once said that money is a man's courage.
This sentence is absolutely correct.
Tang Wanxin, who had a huge sum of money, spoke in front of the media.
Delong will invest 2.5 billion yuan to develop the vast natural pasture resources in the Western Regions and build three major industrial bases, the ‘Northern Slope of the Tianshan Mountains, the Ili Valley, and the Southern Xinjiang Oasis’.
Ultimately, a large-scale industrial chain integrating grass-feeding, breeding, breeding, and milk, meat, leather, and medicine was formed, becoming the leading enterprise in the Chinese dairy industry.
Old Tang is a very contradictory person. He has the feelings of a simple entrepreneur and the stomach of a cunning businessman.
A businessman's bragging is bragging. After cheating and getting the money, he should take care of it and run away. He will never talk about feelings, let alone feelings.
But Lao Tang is different. He cheats, but he also really invests.
In 2002, Tianshan Animal Husbandry was established with an investment of 500 million. Through expansion and mergers and acquisitions, more than a dozen animal husbandry companies were established in the Western Region, including 7 dairy processing plants, seven high-yielding dairy cow demonstration bases and two improved breed breeding Center
In just over two years, relying on Delong's huge political and business relationships in the Western Region, it has established more than 240 milk stations and developed a processing capacity of 290 tons of fresh milk per day.
‘Tianshan brand’ milk is the largest milk brand in the northwest.
Old Tang’s ambition is not just for the dairy industry, he also wants to make Delong a giant in the livestock industry.
So we invested huge sums of money to develop animal husbandry, especially cattle breeding, in the north and south of Tianshan Mountains.
As of now, Tianshan Animal Husbandry is the only national-level frozen sperm production enterprise in the Western Region, one of the leading enterprises in the domestic breeding industry, and one of the largest providers of cattle breed improvement products and services.
The number of beef cattle raised by Tianshan Animal Husbandry has exceeded 50,000.
Relying on agriculture and animal husbandry, as of 2004, Tunhe Group's total assets exceeded 4.5 billion Chinese yuan, and its total revenue exceeded 1.394 billion yuan, but its net profit was only 113 million yuan.
Far lower than the same industry.
The reason for low profits is also very simple: management is too rough.
In just four or five years, more than a dozen, or even twenty or thirty companies have been acquired and established. These companies simply consolidated financial statements, with no integration of personnel, no unified logistics, and no system for purchasing raw materials. change.
Management still follows the original rigid system.
Not to mention corporate culture.
Under this situation, how can the company's profits be high?
Especially cross-industry integration requirements are higher.
This is also the reason why Hanhua and Hongyan obviously have large amounts of working capital in their hands but have not invested it all in Kelong Supermarket, Huaxia Winery, and Fengshou Agriculture.
Enterprise integration is a complex and highly skilled job.
If you don't do it right, burning money will have the opposite effect.
The only thing that allowed Xu Liang to invest a lot of money was real estate.
Real estate does not require much skill. If you have more money, you can just get the land.
There is a third party for construction, there is a third party for supervision, and there is even a third party for selling a house.
As long as you are willing, you can make money without having to show up.
Of course, this is not very profitable, but at least it is a way.
"How many dairy and fruit industry assets does Tunhe have?"
"It includes 21 domestic and foreign companies with a total assets of 1.48 billion." Qiu Mingcheng said.
"Strip out this part of the assets and establish a separate entity. Merge the remaining part with Fengsheng Agriculture."
Qiu Mingcheng nodded, "Mr. Xu, if we integrate Do we still need to inherit Tunhe’s listing status? ”
Now Harvest Agriculture has completed the integration of domestic and foreign oil extraction industries.
In the past year, most of the time has been busy integrating dozens of oil and fat factories.
Now the unification of personnel, management and logistics has been basically completed.
The next step is the most critical and important corporate culture construction.
This is a long-term and meticulous work, and the results will not be seen in the short term.
After the integration is completed, Harvest Agriculture's overall oil crop processing capacity has reached 19.17 million tons, and its feed processing capacity has reached 12.78 million tons.
The total assets are 36.87 billion Chinese dollars (half of which are soybean and corn reserves), and the total liabilities are 17.765 billion Chinese dollars.
It is the dominant player in the domestic oil extraction and feed fields.
If the two parties merge, Tunhe’s stock price will undergo earth-shaking changes.
"Suspend trading. The next main task of Harvest Agriculture is to integrate Delong's agricultural assets. As for when to resume trading, we will decide based on the situation."
Qiu Mingcheng nodded.
“How is the construction of the new factory in Qingzhou going?”
In addition to integrating and eliminating backward production capacity, Fengsheng Agriculture is also actively expanding new production capacity, especially in Qilu, a major agricultural province. Last year, in 8 In January, he invested 2 billion Chinese yuan to build an oil and fat factory in his hometown of Qingzhou with an annual processing capacity of 1.5 million tons of soybeans and corn and 1.2 million tons of feed.
(End of this chapter)