Chapter 984 Strategic Planning
"Sister Li, take the top file from my drawer." Xu Liang said.
Li Jinling did what she said.
"Mr. Xu, your document."
Xu Liang took it and looked at it before handing it over.
"Let's take a look. This is the 2005 financial statements and operating information of Fengsheng Agriculture that Qiu Mingcheng sent yesterday."
Liu Qiangxi quickly took it and read it carefully.
As lines of text and data came into view, his mood also rose and fell.
After a year of development, Harvest Agriculture has undoubtedly become stronger.
The overall oil crop processing capacity reached 23.17 million tons, an increase of 4 million tons compared with last year.
Half of them are located in China, and the rest are located in Southeast Asian countries such as Vietnam and Thailand.
The soybean processing capacity is 13.29 million tons, making it the largest soybean crushing enterprise in China.
Corn oil processing capacity is 8.17 million tons.
Peanut oil processing capacity is 920,000 tons.
The processing capacity of rapeseed, sesame, castor, sunflower, perilla, and mustard beans is 1.16 million tons.
The feed processing capacity is 13.78 million tons.
The various edible oils under its 'Changshouhua' brand have become the country's largest edible oil brand thanks to Fengsheng Agriculture's huge production capacity and effective marketing strategies.
Thoroughly open up all links from production to sales.
In order to ensure the supply of raw materials and avoid another black swan event like the soybean crisis in 2003, Harvest Agriculture adopts a three-pronged approach.
We are actively leasing land to grow soybeans in the northern provinces, and have leased nearly 200,000 acres in one year.
At the same time, a strategic reserve has been established to reserve nearly 10 million tons of oil crops including soybeans and peanuts.
Acquired a majority stake in ‘Amaggi Company’, Brazil’s tenth-ranked agricultural company, and gained its annual soybean and corn production capacity of 3 million tons.
In addition to the oil and fat field, Harvest Agriculture is also actively entering the wheat and rice deep processing market.
Investing 3 billion Huaxia coins through acquisitions, we have established a processing capacity of 3.7 million tons of wheat and 2.9 million tons of rice.
Fengshou brand flour and rice, deeply processed rice noodles, and noodles are sold nationwide through the channels of Kelong Supermarket.
As of December 31, 2005.
Fengshou’s assets total 29.87 billion Chinese dollars (including 7.37 million tons of various oil crop reserves and 4.19 million corn reserves), and its total liabilities are zero.
Xu Liang was free of charge.
Total revenue exceeded 35.39 billion Chinese dollars, and net profit exceeded 4.57 billion Chinese dollars.
Compared with Harvest Agriculture, even if Denong Group annexed Sanwei Fertilizer, its total assets, total revenue and net profit were all far behind.
Denong is developing, but so is Harvest.
Looking from the planning strategy of Harvest 2006.
Harvest plans to increase its oil extraction capacity to exceed 26 million tons through new construction and mergers and acquisitions, and continue to expand the oil extraction and edible oil markets in Japan, South Korea and Southeast Asia.
The feed processing capacity exceeds 15 million tons, and the rice processing and wheat processing capacity exceeds 8 million tons.
In terms of supply market, the domestic self-operated soybean and peanut planting area will be expanded to 300,000 acres.
On the foreign side, Amaggi continues to be promoted to increase supply through mergers and acquisitions.
At the same time, we will explore the African planting market.
Mozambique, Bonawaz and other countries have a large amount of high-quality agricultural land.
"Mr. Xu, Fengshou wants to acquire Shuanghui Group?"
Liu Qiangxi said in surprise when he saw the document attached to the information.
Xu Liang nodded.
“News has come out that 100% of the state-owned legal person shares of Shuanghui Group will be auctioned in the near future, and Fengsheng Agriculture has signed up.”
Shuanghui Group is the largest pork processing company in the country, with annual slaughtering capacity It has a pig production capacity of 15 million heads and an annual sales capacity of more than 2 million tons of chilled meat and meat products.
Total assets are more than 6 billion yuan, and sales revenue in 2005 reached 20.1 billion yuan.
In addition to pork processing, Shuanghui also has a feed production capacity of 200,000 tons, an annual slaughter capacity of 400,000 pigs, 50 million chickens, and a slaughtering capacity of 300 million chickens.
and two flavoring companies.
As the CEO of Denong, Liu Qiangxi’s business sense is undoubtedly sharper than most people.
Fengshou Agriculture's acquisition of Shuanghui Group will not only acquire a top pork processing company in the country, but most importantly, it will open up an industrial chain from feed processing, pig breeding, pork processing, to finished product sales. Although compared with Fengsheng Agriculture’s huge production capacity of nearly 15 million tons of feed, Shuanghui’s inventory of 400,000 pigs and 50 million chickens is not worth mentioning.
But breeding is a technical job that requires experience.
Shuanghui is like a seed.
With Fengsheng’s huge financial support, Shuanghui’s pig and poultry breeding numbers can be rapidly expanded through mergers, acquisitions and new construction.
With Shuanghui, it also has a slaughtering capacity of 15 million pigs.
The reputation and channels of Shuanghui brand.
Completely connect this giant channel from top to bottom.
And the benefits of acquiring Shuanghui don’t stop there.
Its two condiment factories mainly produce soy sauce and vinegar, flavors and spices, bone oil, meat sauce, chicken essence, noodle ingredients, hot pot ingredients, eighteen flavors and so on.
That’s all. The production of soy sauce, light soy sauce, dark soy sauce, extremely fresh and other seasonings requires the consumption of a large amount of wheat and soybeans.
For Harvest Agriculture, which is engaged in deep processing of soybeans, corn, wheat and rice, the condiment industry is its downstream.
If Harvest Agriculture can develop in the condiment industry.
Then its risk tolerance and profitability will undoubtedly be greatly improved.
At this moment, two big rivers seemed to appear in front of Liu Qiangxi.
The first one is soybean cultivation, deep processing of soybeans and wheat, oil extraction and condiment production, and finally, longevity flower edible oil, Fengshou brand flour, noodles, rice noodles, and Shuanghui condiments.
The second item is the production of feed based on corn and soybeans, the breeding of pigs and live chickens, the slaughtering of pigs and live chickens, and finally the Shuanghui brand ham sausage, Shuanghui brand hot pot ingredients, flavors, chicken essence, etc.
As long as Harvest Agriculture continues to expand its width upstream and downstream of these two rivers.
In the future, Harvest Agriculture will become a world-class giant company.
However, Harvest Agriculture like this is no longer an agricultural company, but a food giant.
Acquisition of Shuanghui, a huge addition to the Harvest Agriculture and Food empire.
After thinking about this clearly, Liu Qiangxi couldn't help but feel a sense of pressure in his heart.
The big boss has mentioned it to him many times.
Denong Group will merge with Harvest Agriculture in the future to become a super giant across the agricultural field.
But which party will lead the merger in the end depends on the harvest of Denong and Qiu Mingcheng, who is better.
"Are you stressed?" Xu Liang asked with a smile.
“Yes, Mr. Qiu’s corporate strategy is indeed powerful. Once Shuanghui is successfully acquired, it will form two strategic paths: processing and selling agricultural products, and raising and selling pigs.
Risk resistance, profitability Capabilities and industry influence will be greatly improved
In contrast, Denong Group has a lot of business, and whether it is seed industry, agricultural input chain, Tunhe agriculture, animal husbandry, or sugar industry, including the three-dimensional chemical fertilizer it took over, it has not really connected the upstream and downstream of the industry, and has industry influence. Strong business. "
Xu Liang smiled and said: "You don't have to belittle yourself.
Agricultural supplies chain is a platform and also the downstream of seed industry and chemical fertilizer.
Denong Sugar is involved in sugar beet cultivation and deep processing. Tunhe white sugar also has a certain reputation in the market, which can be regarded as opening up the upstream and downstream.
The only flaw is that the scale is not big enough, but this is also your opportunity.
Tunhe Agriculture's main business is tomatoes. After acquiring Xinzhongji and integrating the production and channels of both parties, Tunhe Agriculture will become a pivotal giant in the world's tomato processing field.
Of course, the retail end is a weakness, but how to make up for it depends on your ability.
The fertilizer industry involves potassium salt resources. Expansion requires long-term preparation and there is no chance in a short time.
Livestock..."
"Mr. Xu, I want to sell Denong Livestock. "Liu Qiangxi said suddenly.
"Why?"
"Mr. Qiu's planning strategy inspired me. The strategic planning of the enterprise should be systematically built.
The core of Denong is large agriculture.
Agricultural supplies supermarket chain is the largest platform and the core.
Denong should work hard to expand this platform and build it into the largest agricultural supplies supermarket chain in the country.
Then use the influence of this platform to develop industries such as seeds, fertilizers, and pesticides.
One core, multiple basic points. ”
(End of this chapter)