Chapter 1055 Crazy Plan
If Kanghua wants to develop better in the future, it must focus on market segments.
So high-end, mid-range and low-end must have different brands.
The liquor business is still high-end. Tuopai focuses on the mid-range. If Niulanshan is successfully acquired, it will be our low-end brand.
If the acquisition doesn't work out, we reinvent it.
It’s not even just the liquor business.
The company's other businesses will also develop new products for market segments. "
Qiao Yuhui suddenly smiled.
"Speaking of which, we must thank Hongmeng Pangu. The big data system they developed has been of great help to us in developing new products. ”
The man in front of me has a long-term vision that is admirable.
If it hadn't been for his persistence, Kanghua would not have introduced big data so early.
Now, not only product development uses macro data provided by big data systems, but even Kanghua's management and brand marketing are increasingly utilizing big data systems and cloud computing.
Kanghua has been able to develop so fast, in addition to strong capital support, the most important thing is the pursuit and utilization of new technologies.
From the earliest Internet strategy to the current big data and cloud computing, we are almost at the forefront of companies in the same industry around the world.
“The big data system currently developed by Pangu is still relatively primitive. As the amount of data increases and the algorithm advances, Pangu’s big data system will bring more help to Kanghua.
However, in addition to big data and cloud computing, you also usually pay more attention to automation.
The more China’s economy develops, the more expensive labor costs will be.
Automation of production equipment will reduce our production costs. "
Qiao Yuhui nodded.
"Today I met Song Yunshan from Hua Run..."
Xu Liang briefly explained the situation of today's meeting.
"If everything goes well, Snow Beer and Yibao Mineral Spring will be placed under Kanghua's banner."
"How sure are you?"
"About 70%. China Guangdong Development Bank is a second-tier national bank after the Workers' and Peasants' China Construction Diplomatic Relations. It is a fatal temptation for a group like Huarun that spans multiple businesses and has a relatively large demand for funds."
"If it can be done. If acquired, Kanghua's beer business will completely occupy 70% of the national market," Qiao Yuhui said with expectation in his eyes.
In the Chinese beer market in 2004, Snowflake ranked first in production and sales, exceeding 5 million tons;
Tsingtao Beer ranked second, with production and sales of 4.2 million tons.
Kanghua Beer ranks third, with production and sales of 3.8 million tons.
Yanjing ranks fourth, with production and sales of 3.1 million tons.
At the end of 2004, Kanghua Beer merged with Zhujiang Beer, and its production and sales instantly exceeded 5.5 million, surpassing Snowflake to become the first.
In 2005, it merged with Tsingtao Brewery, and its production and sales exceeded 10 million, ranking first on the cliff.
If we eat the snowflakes again, Kanghua’s beer production and sales will reach 18 million tons.
In comparison, the current national beer production and sales are only 25.18 million tons.
With Snowflake, Kanghua Beer is the undoubted beer overlord.
But in terms of production and sales, the only four companies that can surpass Kanghua are Anheuser-Busch InBev, SABMiller, Carlsberg and Heineken.
Unfortunately, although Kanghua Beer is working hard to enrich its mid-to-high-end product line, the results have been limited for a while. Even if Snow Beer is included, the annual revenue is less than 30 billion Chinese dollars.
It is less than a fraction of Heineken and Carlsberg, let alone compared with the two global beer giants Anheuser-Busch InBev and SABMiller.
“With the annexation of Snowflake, Kanghua has come to an end in the domestic beer market.” Xu Liang said.
Qiao Yu will understand what he means.
After acquiring Snowflake, Kanghua will basically not expand its production capacity through large-scale mergers and acquisitions.
The company's attention will shift from pure M&A expansion to marketing focusing on brand cultivation, improving mid-to-high-end product lines and increasing the company's revenue.
Now, whether it is Kanghua or Snowflake, more than 80% of its products are low-end beers with low profits.
Snowflake is more exaggerated than Kanghua, 100% low-end beer.
In the industry, Snowflake is ridiculed as ‘industrial beer’.
This is why its sales revenue reaches six to seven billion Chinese dollars, but its net profit is less than 200 million.
The two did not mention C'estbon Mineral Spring. Although C'estbon was the purified water company with the largest sales share in Guangdong Province in 2006, it was only considered a second-tier brand in the national market.
Robust, Wahaha, Nongfu Spring and Kanghua’s ‘Tianshan Ice Spring’ are the real giants.
However, Robust's management was in turmoil and its operations were deteriorating.
Both revenue and net profit have gradually fallen to the bottom of the Big Four.
Coca-Cola’s ‘Ice Dew’ purified water is eyeing the market and is likely to catch up.
"After this year's wave of expansion ends, Kanghua will not engage in large-scale mergers and acquisitions in the next two years. Instead, it will integrate well, cultivate brands, develop market segments, and lay a solid foundation." Xu Liangdao.
“It is indeed time to integrate Bright Dairy, Guanshengyuan, Snow Beer, and Yibao Water, with assets of more than 10 billion and revenue of more than 20 billion Chinese dollars.
After successful digestion, even if Kanghua’s market value does not reach HK$400 billion, it will not be much different.”
In addition to revenue growth, the most important thing for mergers and acquisitions in the same industry is to reduce administrative expenses. Every family needs 100 people to run the company.
Now that they are merged, two people do not need to do the same thing.
Therefore, positions are reduced and personnel are laid off.
Administrative expenses were reduced.
Mergers and acquisitions in the same industry can also reduce procurement costs. Large procurement volumes can of course lower prices.
Similar to the high shipment volume, you can also ask the channel provider to shorten the payment collection cycle.
And companies with higher market shares also have stronger ability to command price premiums. Seeing her happy look, Xu Liang smiled and said: "My four gifts are not bad."
Qiao Yuhui walked over with a smile, straddling his legs, her eyes as charming as silk, and her right index finger slowly slid down from the center of Xu Liang's eyebrows along the bridge of his nose and lips, and finally drew circles on his chest.
“I am very satisfied with your gift, but if you want to win these four companies, Kanghua will have to spend at least tens of billions of Chinese dollars in acquisition funds.
Kanghua’s president The debt will exceed 10 billion US dollars.
Such a high debt is not conducive to the development of the company, so can you help pay it off? ”
"It's okay to help you, but how do you want to thank me?"
"I..."
"Don't tell me that you will find me a woman. You and Jun are here in Xiangjiang. Ning is enough." Xu Liang said directly.
Now there are more than twenty women around him.
Basically enough.
After ten or eight years, when the novelty wears off, it’s not too late to bring in new people.
"What, you've had enough fun and are you ready to calm down?"
"The children are getting older, and I have to spare enough time and energy to accompany them." Xu Liang said.
“Tsk, tsk, I didn’t expect that a prodigal like you would ever turn around.”
“What a prodigal, I have always been very responsible, okay? Looking around the world, have you ever seen any super rich man do this to the woman around him? How rich? ”
"You did a really good job in this regard."
The two chatted until noon.
We had lunch together in Kanghua. In the afternoon, Xu Liang walked around various departments in Kanghua before leaving.
"Mr. Xu, the negotiation between Hanhua and SMIC is over."
When Xu Liang arrived home, Li Jinling handed over a new message.
After all, SMIC is the world's third-largest chip foundry with more than $5 billion in assets, although Xu Liang verbally reached an agreement with Zhang Rujing.
But the specific terms still need to be decided through negotiation between the two parties.
After nearly a month, I finally got a result.
Looking at the faxed documents, Xu Liang nodded with satisfaction.
Hanhua injected US$1.3 billion in convertible bonds and US$700 million in cash into SMIC, acquiring 60% of SMIC’s equity.
"You should immediately contact Zhang Rujing and Mr. Jiang in my name. Hongyan will guarantee SMIC and issue US$10 billion in 1-year corporate bonds."
The time is short and the interest does not need to be too high.
And one year is enough.
“Okay.”
Dingle bell…
Xu Liang's cell phone rang.
After looking at the caller ID, he quickly picked up the call.
“Daughter-in-law, I miss you.”
The corners of Jiang Xiaoyang’s mouth on the other side of the phone raised slightly.
“Stop smiling, I have something serious to tell you.”
"I'm all ears for my husband."
"SMIC's negotiations are over and the contract has been signed."
Xu Liang: "I just saw the faxed contract."
"That's good, but if we invest $10 billion in SMIC to build a new factory all at once, wouldn't it be too aggressive? Now the global IC market, except for memory chips, is almost weak."
"The more At this time, we need to invest more. Not only will I invest US$10 billion this year, I will also invest US$10 billion every year in SMIC to build new factories.
I just want to use abundant capital and losses to blow up all the chip foundries in the world.
When the IC industry cycle passes, we will monopolize the entire industry with our strong production capacity. ”
Hearing this, Jiang Xiaoyang seemed to have seen the situation where the global chip foundry industry would be devastated two or three years later.
He was smart.
Ambition for his own man Learn more about wrists
"Xiaoyang, in the next two to three years, I will not only invest in chip factories, but also in BOE's panel factories. By 10 years ago, I will spend at least US$60 billion on the two factories to expand new factories.
If losses are included, Hanhua will invest US$80 billion.”
Jiang Xiaoyang knew that Xu Liang planned to burn money, but he didn’t expect him to be so crazy!
"Xu Liang, do you want to fill in more than half of Hanhua's assets? I don't agree."
"Dear, don't worry first.
I will not invest with Hanhua's existing assets, but with our profits from the capital market.
Think about it, we made so much money from the Tamron Project, and we spent 40% of it to pay the Americans.
That is the money that Soros and I earned through countless hardships, fighting to the death. Why should I give it to the Americans?
It is better to spend money on BOE and SMIC.
It not only supports the development of domestic high-tech, but also makes my father-in-law’s face look bright when he mentions his son-in-law outside, so that they don’t call me a capitalist.
You can also avoid paying high taxes, killing two birds with one stone. ”
Listening to his words, Jiang Xiaoyang slowly calmed down.
After careful analysis, although Xu Liang’s plan was crazy, it was within Hanhua’s tolerance.
This year, the US$30 billion first phase of the Pacific Fund will expire and be unblocked
(End of Chapter)