Chapter 1003 The Rising Grassroots
“I didn’t expect Mr. Xu to live here?”
Looking out the car window at the vibrant spring scenery and the vibrant mountain scenery, Yang Shouhai said with a smile.
"Paling chrysanthemums under the eastern fence, you can leisurely see the Nanshan Mountain. When I make enough money in the future, I will also find a place like this to build a villa for retirement." Liu Qiang said to the west.
“I’m afraid that even if he makes enough money by then, Mr. Liu will still be reluctant to give up the power he has.”
"Mr. Yang is speaking out of emotion."
"It's just a moment of emotion. After all, he raised his own child. What father is willing to let go?"
Liu Qiangxi He smiled and said, "Children have to let go when they grow up, and sometimes letting go can lead to greater growth."
Glancing at him, Yang Shouhai said nothing.
The two people who said something silent did not speak again.
The car rounded the corner in front, and Boss Xu's magnificent Jiulongyu Villa appeared in front of the two of them.
Passing through the door and looking at the majestic building climbing up the stairs, the two people who came here for the first time couldn't help but be amazed.
They have seen manors larger than this.
But this was their first time building a manor embedded in the mountain.
The two people's car stopped in the front yard square.
Li Jinling saw them getting out of the car and greeted them.
"Mr. Liu, Mr. Qiu."
"Secretary Li."
After the two parties greeted each other.
"Please come with me, Mr. Xu is waiting for you two in the reception room."
He took the two of them to the reception room in the front yard.
Xu Liang put down the documents in his hand and came forward.
"Mr. Yang, welcome, welcome."
Looking at the tall and muscular man who was approaching with a smile, but with a huge sense of oppression, Yang Shouhai subconsciously maintained Respectfully.
"Mr. Xu, it is my honor to receive your invitation to visit you."
"You're welcome, Mr. Yang, please take a seat."
After the three guests were seated, the secretary served tea.
Xu Liang smiled and said: "Mr. Yang, I have heard your name for a long time.
Being able to lead the R&D team to develop key products despite the blockade abroad and no domestic foundation. Pyridine's production technology has broken the foreign monopoly, and Mr. Yang will benefit from it for a long time."
Being praised by Mr. Xu, Yang Shouhai couldn't help but show pride on his face.
"You're welcome, my little merit is far less than that of Mr. Xu who led Hongmeng to defeat the siege of Chinese Internet companies by foreign Internet companies; led Hanhua to maneuver in the international financial market and defend China's position in the international financial market. Bigger.”
After some friendly business exchanges.
"Mr. Yang, with the key production technology of 'pyridine', Red Sun will undoubtedly become the number one in the field of pesticides in China.
And our Denong Group is currently in Shanxi and Hebei The four provinces of Shandong and Henan have nearly 2,000 directly-operated agricultural supplies stores and more than 4,000 branded stores. This number will double in the next two years.
Denong's goal is to become one of the largest agricultural supply stores in the next five years. Wanjia agricultural supplies direct-operated store, an agricultural supplies giant with a marketing network covering the entire China.
Become the dominant player in the domestic agricultural input field.
If Red Sun joins, it will rely on our Denong agricultural materials distribution platform to cover the whole country and completely squeeze out all similar products.
This is a matter of mutual benefit. "
Yang Shouhai said calmly: "Mr. Xu, if someone asked you to sell Hongmeng or Hanhua, would you be willing? "
"Yes, as long as he can come up with conditions that make my heart beat. ”
Yang Shouhai: "..."
Why don't you play according to the routine?
Xu Liang picked up the teacup on the table and took a sip.
"Mr. Yang, over the years I have been working in the global business world, the biggest truth I have realized is: everything has value."
"I am afraid I must disappoint you, Red Sun is I will never sell my life’s work.”
Yang Shouhai spoke firmly.
“Mr. Yang, I greatly admire those companies that are willing to invest energy and money in research and development and have their own core technologies. This is why I am willing to talk to Mr. Yang in person.
Actually, If I just acquire Red Sun, I can achieve my goal without going through you.
Talents are rare.
I respect you, but I also hope you can respect me! ”
Yang Shouhai's expression changed instantly.
Although he is the founder of Red Sun, he is not the controlling shareholder of Red Sun Group.
For the specific reasons, we have to start from the beginning.
On April 18, 1989, Gaochun Pesticide Packaging Factory was established.
There are not many people there. Yang Shouhai, who is starting a business at the scientific level, is the factory director, with three cadres and more than 20 migrant workers.
There wasn't much money, just five thousand yuan was borrowed.
The place is a few rented shabby factory buildings.
Embarrassed and embarrassed.
This is basically the case when most private enterprises in China start their own businesses.
In terms of business, it is said that it is packaged, but in fact it is packaged.
The main purpose is to divide the purchased large barrels of pesticide solvents into small bottles, and sell products suitable for farmers to purchase and use.
It’s all manual work.
In the 1980s when the market economy was underdeveloped, many people started by relying on similar simple production.
Yang Shouhai won the first battle.
In 1990, Jinling Gaochun Pesticide Chemical Factory was established.
At this time, the business also progressed from simple packaging to processing.
Of course it is very simple.
Purchase high-concentration solvents, dilute them to a concentration that farmers can use directly, and then package them for sale.
It’s a little bit technical.
Just say one thing, no more.
After everyone became familiar with the work of dilution, the business took another step forward.
Compounding.
That is, purchase the original drug, add other emulsifiers according to the process, then dilute it and package it for sale.
By exploring the industrial value chain step by step, Yang Shouhai gradually completed the primitive accumulation of capital and laid the foundation for take-off.
Only one chance.
Successful people are not bad at luck, and Yang Shouhai is the same.
In the early 1990s, with the widespread use of chemical pesticides, the problem of pest resistance became increasingly serious.
The cotton fly has developed serious resistance to pyrethroid insecticides. The cotton fly has continued to occur on a large scale in my country, causing serious losses to cotton production.
Against this background, in December 1992, Lao Yang spent money to buy out the technology transfer rights of Jinling Agricultural University's "Dikan No. 1".
With this technology, the Gaochun Pesticide Chemical Factory, which has been renamed "Jinling No. 1 Pesticide Factory", under the leadership of Lao Yang, launched the cotton fly insecticide "Emperor".
With its excellent insecticidal effect, Ring Killer quickly became a star product and brought Yang Shouhai huge wealth.
From 1993 to October 1996, Jinling Yinong produced and sold a total of 2,500 tons of insecticides, achieving sales revenue of 125 million yuan.
For development needs.
In November 1995, Jinling Yinong and Jinling Honghua Plastic Factory jointly initiated the establishment of the collectively owned Red Sun Group Co., Ltd.
The total investment is 15.8 million yuan, with Jinling No. 1 Pesticide Factory accounting for 87.3% and Jinling Honghua Plastic Factory accounting for 12.7%.
Red Sun, which inherited the pesticide business of Jinling Yinong, has developed rapidly under the leadership of Yang Shouhai.
At that time, Jinling’s first listed company, ‘Ning Tianlong’, was in trouble and faced delisting.
The Jinling Municipal Government decided to reorganize and save Baoke.
After inspecting many companies, we decided to let Jinling Red Sun go public through a backdoor listing. The initial plan was to transfer the equity of Ning Tianlong’s largest shareholder to Jinling Red Sun.
But this plan was rejected by the higher authorities.
The reason is that 29.95% of the equity of Ning Tianlong's largest shareholder belongs to state-owned shares and cannot be allocated to non-state-owned enterprises, otherwise it will involve the loss of state-owned assets.
However, the Jinling Municipal Government did not give up and instead promoted the restructuring of Red Sun into a wholly state-owned enterprise.
The problem is that Jinling Red Sun is not a state-owned enterprise, and there was no state-owned capital investment in its establishment and development.
If it is restructured, it means that Yang Shouhai will give up 10 years of entrepreneurial achievements.
In short, various reasons.
Yang Shouhai finally agreed.
In October 1998, Red Sun Group was restructured into a wholly state-owned company with a registered capital of 83 million yuan.
In December, Red Sun Group Co., Ltd. was established, and all its shares were transferred to the Gao & Chun County State-owned Assets Supervision and Administration Commission.
Yang Shouhai also changed from a private entrepreneur to a manager of a wholly state-owned enterprise.
Ning Tianlong later changed his name to Red Sun.
However, Jinling Yinong remains a company founded by Lao Yang personally.
After the restructuring, Red Sun Group began to develop rapidly and ushered in a new stage of development.
After nearly 10 years of development, Red Sun Group has formed a large domestic pesticide chemical group. It has not only developed ‘pyridine base’, breaking the foreign blockade.
It is also involved in five major industries: environmentally friendly pesticides, biomedicine, modern seeds, fertilizers, and life sciences, with 16 wholly-owned and holding subsidiaries.
It has 5,200 employees, a Central Engineering Technology Research Institute, 5 R&D centers and 68 basic laboratories.
At the same time, Nanjing Yinong, founded and retained by Yang Shouhai, also achieved rapid development.
Its registered assets have now reached nearly 160 million yuan, and its business covers pesticides, medicine, seed industry, international trade and other fields.
Holding 49% of Jinling Biochemical, 100% of Huizhou Guoxing, 100% of Red Sun International Trading Co., Ltd., and 65% of Jinling Red Sun Seed Co., Ltd.;
Suzhou Zhongbang Pharmaceutical Co., Ltd. 51.02%, Suzhou Zhongjin Dingxin Investment Guarantee Co., Ltd. 75%;
Jinling Yibang Advertising Culture Communication Co., Ltd. 80%, Suzhou Kebang Ecological Fertilizer Co., Ltd. 49.25%;
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100% of Jinling Lvbang Ecological Technology Co., Ltd.;
and 65% of Australian Haili International Enterprise Co., Ltd.
As of the end of 2005, Red Sun Group’s total assets reached 4.18 billion yuan, its main business income was 5.27 billion yuan, and its foreign trade delivery value was US$200 million, ranking among the top 15 pesticides in the world;
Huaxia Ranked 919 among the top 1000 strong enterprise groups, 465 among the top 500 Chinese manufacturing companies, 51 among the top 100 Chinese petrochemical industries, and ranked first in China's top 100 pesticide sales for the third consecutive time.
The growing Red Sun Group is a piece of plump meat.
Especially for Yang Shouhai, it is even more difficult to let go.
In the context of China’s equity reform. He also wanted to put Red Sun under his own name.
The first step is to unite its executives to establish Suzhou Guoxing Investment Company. Yang Shouhai serves as the general partner + GP, accounting for 5% of the shares, and has real power;
The core executives and investors account for 95% of the shares. As limited partners + LPs, they only have dividend rights and do not participate in the company's business decisions.
In the second step, Jinling No. 1 Pesticide Factory was restructured, and Suzhou Guoxing acquired 86.02% of its equity;
The original shareholder Red Sun Group no longer holds its equity.
After the capital increase, Suzhou Guoxing holds 100% equity of Jinling Yinong Group.
Jinling Yinong became a private enterprise controlled by all executives of Red Sun Group.
Through these two steps, Lao Yang not only won over his senior executives, but also made them stand on a united front with him, ensuring that he could successfully complete the privatization of the group in the future.
Risk cutting was also successfully completed.
With a small amount of money, he guaranteed his absolute control over Jinling Yinong Group.
Even if the company goes bankrupt in the future, it will not affect you.
This is the charm of equity structure design.
Any boss of Juhua Factory can control the company with just 1% of the shares. Director Liu privatized Lenovo, which is basically the same operation.
Follow your usual routine.
The next third step should be for Jinling Yinong Group to acquire Gaochun State-owned Assets and transfer 49% of the state-owned equity of Red Sun Group Co., Ltd.
Then obtain absolute controlling rights through targeted capital increase.
At the same time, the purpose of privatization of Red Sun was also completed.
However, before the third step started, Xu Liang got involved as a third party.
"Mr. Yang, before coming here we have exchanged views with Gaochun County, and we have promised that Red Sun Group will not move out of Gaochun County and will continue to invest an additional 2 billion Chinese dollars to develop Red Sun Group.
They are willing to sell us 65% of their shares in Red Sun Group.”
Denong Group has strong capital and can swallow up the entire company.
Yang Shouhai’s face darkened.
Facing Xu Liang’s powerful capital and power, he has too few cards to play.
"Mr. Xu, you are already a world-class entrepreneur and the richest man in China. If you use dishonorable means to acquire Red Sun Group, aren't you afraid of affecting your reputation if word spreads about it?"
"Disgraceful? I bought and sold by force. Is it? No.
The acquisition of Red Sun Group at a premium is a normal transaction in any country and anywhere in the world."
Xu Liang changed his subject.
“If I really want to say it’s disgraceful, I’m afraid Mr. Yang is even more disgraceful.
Although you founded Red Sun, it is now a state-owned enterprise and you are only the CEO.
A professional manager wants to take possession of the company as his own, and to do so exclusively, who among us is more disgraceful? "
Liu Qiangxi quickly cooperated.
"Mr. Yang, Red Sun Group has many businesses, but we only want the environmentally friendly pesticides, seeds and organic fertilizer businesses, and the remaining pharmaceutical and international The trading business, including the listing qualification of Red Sun Group, will continue to be held by you.
If you want to continue to develop in the field of biomedicine, Hanhua will help you acquire companies in the same industry to become bigger and stronger.
If you don't need it, Nanfu Battery, as the overlord in the field of alkaline batteries and a world-class battery giant, will make Red Sun the top manufacturer of alkaline batteries in the world.
I think this condition is favorable enough. "
Yang Shouhai is at war with heaven and man in his heart.
Although he has deep connections in Gaochun County, he is certain to persuade the other party to reject Xu Liang and Denong.
But there are still people above Gaochun. There is Jinling. Although he has certain connections here, he is far inferior to Gao Chun.
If Xu and Denong exchange huge investments.
The superiors will definitely put pressure on Gaochun.
The result will still be the same.
Looking at the smiling and imposing man opposite, he sighed inwardly.
After I compromised back then, I have to compromise again now.
"Mr. Xu, I agree to this transaction."
Liu Qiangxi breathed a sigh of relief.
“Thank you, I believe our conditions will not disappoint Mr. Yang.
However, we hope that while acquiring the agricultural supplies business of Red Sun Group, Mr. Yang will also be able to bring Jinling No. The group's agricultural supplies business was sold to us," Xu Liang said with a smile.
Yang Shouhai frowned slightly, "Mr. Xu, this negotiation does not include Yinong Group."
"Does Mr. Yang still plan to develop in the field of agricultural supplies?"
Yang Shouhai's eyes flickered.
"Mr. Xu misunderstood. Yinong Group is a company I created from scratch. It is my child. I really can't bear to sell it."
Xu Liang smiled and said: "Yang In general, we only want Yinong Group’s agricultural supplies business, and we have no plans to acquire your Yinong Group, so you don’t have to worry.”
“I need to think about this.”
"I'm waiting for Mr. Yang's reply."
"Thank you, Mr. Xu, for your understanding."
Xu Liang stood up and stretched out his hand.
"Then our negotiation will end here first."
After holding his hand.
"Don't worry, Mr. Xu, I will immediately advance the acquisition negotiations with Denong after I return."
Xu Liang smiled and nodded.
"Sister Li, please help me, Mr. Yang."
Li Jinling turned sideways.
"Mr. Yang, please come with me."
Yang Shouhai said 'goodbye', glanced at the two of them one last time, and left with a somewhat complicated look in his eyes.
The door is closed.
Xu Liang waved his hand to Liu Qiangxi to sit down.
“Can you tell, I’m still not willing to give in.”
Liu Qiangxi nodded.
"Through this period of contact, I found that Yang Shouhai is a person with a strong desire for power and will not give up easily.
Now, due to our pressure, Red Sun is sold.
But from now on He knew that if he retained Jinling Yinong’s agricultural supplies business, he probably wanted to poach the talents of Red Sun and leave us an empty shell.”
“Jinling Yinong has a foundation in the agricultural supplies industry. , coupled with the talents of Red Sun, and his influence in the national agricultural supplies, especially the pesticide market, it is easy to turn Jinling Yinong into another Red Sun." Xu Liangdao.
“Mr. Xu, things are not as bad as we thought.
At the same time as the acquisition, we can use a non-competition agreement to restrict Red Sun's resigned executives and technical personnel from engaging in the agricultural input industry within one year. ”
“One year is too short. ”
After Oracle acquired PeopleSoft, once the one-year non-competition agreement period expired, the founders and executives of the original company quickly recruited the old PeopleSoft employees who were fired by Oracle to establish Workday.
It also focuses on developing enterprise resource planning and human resources management software businesses.
With the support of venture capital including Hanhua, the company's current valuation has exceeded 1 billion. USD.
It has become a strong competitor of Oracle.
Xu Liang didn’t want such a mistake to happen to him.
"Mr. Xu, although one year is short, it gives us the opportunity to make personnel adjustments.
With option rewards and salary increases, I believe many people will stay."
"The middle-level and lower-level employees are just like us, but it may be difficult for the senior management team to stand on our side. They are too tied to Yang Shouhai." Xu Liangdao.
The top management of Red Sun are all shareholders of Yinong Group, and their interests are the same.
"Mr. Xu, any conflict has both positive and negative sides. The departure of Red Sun's senior management is indeed detrimental to the company's development, but it also facilitates our calm adjustment and completes the company's integration as soon as possible."
< br>"That's right. Once the stumbling blocks are gone, it will indeed be easier to integrate. And those who are promoted will be more loyal to us.
However, in order to ensure the company's core secrets, the R&D team should not stay in Jinling. Move to the Magic City.”
Yang Shouhai has ruled Red Sun for more than ten years, and his influence is too great to be eliminated in a short time.
Keep research and development here.
Can be penetrated into a sieve by the opponent.
When the time comes, the new pesticide developed by Denong will be sold by Yinong Group, and he will be humiliated.
Even if you win the lawsuit in the end.
Under the current legal environment, the small amount of compensation will definitely not be enough to fill the hole.
"How is the contact with Jinling?"
"They said that as long as we continue to put the headquarters of Red Sun Group in Jinling, and invest 3 billion Chinese yuan in Jinling in the next five years to build China's largest pesticide If the production base project can be implemented, they will be willing to support our acquisition of Red Sun."
Xu Liang nodded slightly, 3 billion is not a big amount.
And when Denong acquired Red Sun, it originally planned to use it as a foundation to strengthen its strength in the field of pesticides.
It is certain to invest huge amounts of money.
"Then sign the contract as soon as possible."
"Yes."
"By the way, I am a man of his word. Since I promised to sell Nanfu batteries to Yang Shouhai, I will abide by the agreement.
But, what I want is all cash, not even a dime."
Looking at the big boss's expression, Liu Qiangxi understood instantly.
After Nanfu Battery went public, its market value has reached close to HK$3 billion.
Considering goodwill and premium, it should be at least 3.5 billion Huaxia coins.
Can Yang Shouhai pay for it?
Definitely not.
The total assets of Jinling Yinong Group are only about 1.5 billion Chinese dollars.
The acquisition can only be successful unless he is willing to sell Yinong Group, get a sum of money, and then use Nanfu shares as collateral for financing after the acquisition is successful.
The price of doing this is to completely withdraw from the agricultural input industry.
If he really makes this choice, Xu Liang will definitely sell Nanfu to him.
"Mr. Xu, to prevent accidents, I think we can add a time limit, such as one year."
"Old Liu, you still have a quick mind, so you really need to add a time limit. Term.”
If you fail to seize the opportunity given to you, it is not our problem.
(End of this chapter)