Chapter 1054 Kanghua 2006
Kanghua Center, once the Chinese Bank, is now the headquarters of Kanghua Group.
As soon as he came in, Xu Liang felt more busy than before.
The new front desk guy obviously didn't recognize him.
“Hello, do you have an appointment?”
Li Jinling stepped forward and said: "This is Mr. Xu Liang, the chairman of the company."
The girl at the front desk, who was wearing a black OL lady's suit and flesh-colored stockings, hadn't noticed it before, but now she took a closer look and saw that she was tall and strong. The man is indeed exactly the same as the big boss in the previous photo.
I panicked and said quickly: "Mr. Xu, I'm sorry, I didn't know it was you."
"New here?"
"Sister Liu is on maternity leave. , I just joined the company in May this year.”
Xu Liang nodded, "Work hard."
"Yes."
After watching the group of people walk towards the elevator, Zhao Wen breathed a sigh of relief.
“What’s wrong?”
Wei Xiaofeng came back from the bathroom and asked in surprise.
"Sister Xiaofeng, guess who I just met?" Zhao Wen said excitedly.
“There are so many people coming to the company in one day, how could I know who you met?”
“It’s the big boss, I met the big BOSS.”
“ Xu Liang?" Wei Xiaofeng said in surprise.
“Wow, Sister Xiaofeng, do you dare to call the big boss by his name?”
Wei Xiaofeng glanced around guiltily and then lowered her voice, "The big boss is really here?"
"Well, I just took the elevator up, I guess I'm looking for Mr. Qiao."
"The big boss is here?" Of course I came here to see Mr. Qiao." Wei Xiaofeng changed the subject, "By the way, what does the big boss look like? Is he handsome?"
Although she joined the company half a month earlier than Zhao Wen, she didn't. Met the big boss.
“Of course he is handsome. Rich people are all handsome.”
Looking at the money-worshiping girl with disdain, Wei Xiaofeng said: "I also think the big boss is quite handsome."
......
On the top floor, the president's office.
"Why are you here?"
Xu Liang sat down on the sofa, "It ended early, come and take a look. ... How is the negotiation between Guanshengyuan and Guangming Dairy? ?”
"We are still talking about it. We have assets of six to seven billion and the business is complex. It is estimated that it will take more than half a month to get results."
"How is the company's semi-annual report going?"
Although it is already the end of July, as the company continues to grow, a semi-annual report will take a long time to be compiled and reviewed before it can be released.
"It has been sorted out. If there is no problem after reviewing it again, it will be released."
Qiao Yuhui took a thick stack of information from the desk and put it in Xu Liang's hand.
After annexing Huaxia Liquor Industry under Hanhua, the current Kanghua Group business is divided into two parts, one is the listed beverage and food business.
Part of it is the ‘wine business’ that is not listed on the market.
In terms of beverage and food business, it already owns Jianlibao (sports drink)
Master Kong (purified water, instant noodles, tea, pastries, sparkling water, soda water);
Huiyuan Juice;
Tianshan Ice Spring (mineral water, bottled water);
Yinlu (peanut milk, eight-treasure porridge, canned fruit);
Tianshan Dairy, Guangming Dairy (milk, iced drinks);
Arctic Ocean (coke, soda);
Monster Drink (caffeine energy drink, soda, juice);
Guanshengyuan (honey, non-staple food)
White Rabbit (candy)
Including the newly registered nut brand 'Three Squirrels', there are a total of twelve business departments and hundreds of different products products.
Of course, this is only domestic.
In Southeast Asia, Japan, South Korea, and the Americas, Kanghua Group has also acquired many local brands in the past two years.
The strategy used is import substitution played by Americans.
Buy a local brand, and then use the other party’s channels to sell your own products. Then gradually replace the market and position of the old brand with your own brand based on the marketing and production of the local brands you see, and finally achieve the goal of occupying the market. The purpose of this market.
With its strong capital and the help of Xu's other companies, Kanghua Group has become one of the largest beverage and food giants in Southeast Asia.
Among many brands, Monster Beverage has the highest revenue.
Revenue in the two quarters of 2006 exceeded US$1.64 billion.
Next is Master Kong, with revenue exceeding US$1.43 billion.
Then there is Jianlibao. Jianlibao relies on the marketing strategy of Monster Beverage and positions the target group at the young people aged 18-34 as its core strategy.
Opened up a new product line and designed a new brand logo, packaging image and slogan.
And focus on the target young consumer circle and their hobbies, carry out title sponsorship of activities and events, including extreme sports, music festivals, e-sports, etc., bind young groups, and carry out activities in the activity areas of the target groups. Through local promotion, a brand mentality is formed for the target group and a group of highly loyal fans are cultivated.
Since then, around the brand concept, the product side has continued to introduce new products to strengthen brand awareness.
It also reduces the threat of potential differentiated entrants by adding new capacity to occupy shelf space and meet the needs of different usage scenarios.
However, the main reason why Monster Beverage does this is that there is already a functional drink leader ‘Red Bull’ in the United States.
In contrast, Jianlibao has dominated the Chinese functional drink market since the 1980s.
There is no room for Red Bull to usurp the throne.
So product adjustments don’t need to be as extreme as Monster Drink.
While seizing the young market through new brands, Jianlibao has not let go of other product lines. In the second quarter of 2006, the total revenue of the Jianlibao brand exceeded US$1.37 billion.
Including the new Guanshengyuan and Bright Dairy, the total revenue of Kanghua Group's beverage and food business in the two quarters of 2006 reached US$6.47 billion, an increase of 18.4% over the same period last year. (Not counting mergers and acquisitions).
Then there is the ‘Huaxia Liquor Industry’ acquired this year.
After the expansion of Huaxia Wine Industry by Qiao Yuhui.
There are four businesses.
Liquor, beer, wine, rice wine.
Liquor and beer are the mainstream.
In terms of liquor business, Kanghua mainly has two series, focusing on the high-end ‘Sheshe’ and the mid-to-low-end ‘Tuopai’.
The main strategy is to acquire local wineries, occupy their channels and markets, and promote their own brands.
Through this model, Kanghua Liquor Industry's production capacity and market have rapidly expanded. Currently, the production capacity of the two major series of liquor has exceeded 214,000 tons.
Accounting for approximately 8.2% of the current total sales of liquor in the country.
It is the liquor company with the largest production and sales volume in the country.
With Kanghua’s unremitting promotion, ‘Sheshe’ has also surpassed Shuijingfang and become a high-end liquor second only to Moutai and Wuliangye.
In the two quarters of 2006, the total revenue of Kanghua liquor business exceeded 3.27 billion Chinese yuan, second only to Wuliangye.
Now Moutai is not the only one at the top of the pyramid, Wuliangye is.
Compared to liquor, Kanghua's beer production has exceeded 11 million tons after annexing Tsingtao Beer. It is the first beer company in China with a production volume exceeding 10 million tons.
It owns three major series of Harbin Beer, Tsingtao Beer and Laoshan Beer.
Harbin focuses on the high-end market, Qingdao focuses on the mid-range market, and Laoshan Beer focuses on the low-end market.
In the two quarters of 2006, the total revenue of the beer business reached 8.26 billion Chinese dollars.
It is the highest among Kanghua's "four major wine businesses".
After the red wine business acquired ‘Changyu’, Kanghua’s red wine is also No. 1 in the country.
The revenue for the two quarters of 2006 was 1.36 billion Chinese dollars.
The rice wine business is the smallest. It has just acquired a rice wine company in Zhejiang Province. The revenue is less than 100 million Chinese dollars, and it still needs to develop well.
Even if rice wine is ignored, the entire Kanghua Group’s wine business revenue exceeded 12.89 billion Chinese dollars in the two quarters of 2006.
The group's total revenue in the second quarter of 2006 reached US$9.978 billion. Not surprisingly, the full-year revenue will exceed US$20 billion, nearly double the year-on-year increase (mainly due to the acquisition of Huaxia Liquor Industry).
Net profit from main business reached US$4.28 billion.
Based on a price-to-earnings ratio of 20 times, Kanghua’s total market value should reach US$80 billion. However, Kanghua’s ‘wine business’ is not listed, so the market value is currently around HK$330 billion.
In terms of assets, Kanghua Group has total assets of US$21.7 billion (excluding goodwill) and total debt of US$8.37 billion. The acquisition of the wine business from Hanhua has increased Kanghua’s debt by HK$33.6 billion.
Coupled with the money spent on mergers and acquisitions and development of the group, the debt ratio is close to 50%.
In addition to debt, Kanghua also has $2.7 billion in cash on its books.
Put down the information.
Xu Liang first sorted it out in his mind.
"Arctic Ocean is still losing money, and the losses are even greater."
All mainstream brands under Kanghua are basically making money.
But only Arctic Ocean lost money, and it lost nearly 300 million Chinese dollars in the two quarters of 2006.
“Liang Cola’s market advantage in China is too great. At present, we are mainly grabbing the market through higher marketing and even free strategies, so we are losing a lot.”
Arctic Ocean Cola As a new product, it not only spent huge sums of money to hire celebrities to endorse it, but also distributed it nationwide.
Due to low market acceptance, products will be unsalable on a large scale.
Kanghua simply directly cooperates with major supermarkets to mix and match sales.
Buy a box of Master Kong instant noodles and get a box of Arctic Coke for free.
Buy a bottle of Tianshan Water and get a bottle of Arctic Coke for free.
Through this mix-and-match strategy, the sales of other products are increased, which can be regarded as an alternative way to recover costs.
But the losses in the Arctic Ocean are increasing.
“Are you still going to continue?”
"A journey of a hundred miles is half a mile. Now that you have started, you must persist to the end." Qiao Yuhui said with determination on her pretty face.
“I heard that Coca-Cola and Pepsi-Cola jointly sued Kanghua Group for illegal marketing in the courts in the United States and China?”
Qiao Yuhui snorted coldly.
"It's just a trick that the donkey in Guizhou has exhausted."
Xu Liang smiled.
Nearly 75% of the shares of Kanghua Group are in the hands of the Xu family, so Qiao Yuhui does not need to pay attention to the voices of directors and investors.
You can seize the market through price wars without any scruples.
But Coca-Cola and Pepsi-Cola are different.
Their shares are dispersed.
The management is responsible to the entire board of directors and investors. Whenever the company's revenue drops, the investors will question the entire management about the reasons and order corrections.
If revenue drops too much, the CEO will pack up and get out.
So, Liang Keke can do things that hurt people, but he can't persist like Kang Hua for many years.
"The company plans to acquire Niulanshan?"
After Qiao Yuhui nodded, "There are more and more domestic companies from all walks of life, and the competition is becoming more and more fierce. In the past, extensive brand management and Product strategies are increasingly unworkable
(End of chapter)