My 1999

Chapter 1003 The Rise of Grassroots

"I didn't expect Mr. Xu to live here?"

Looking at the spring scenery outside the car window, Yang Shouhai smiled.

"Picking chrysanthemums under the eastern fence, leisurely seeing the southern mountains. When I make enough money in the future, I will also find a place like this to build a villa for retirement." Liu Qiangxi said.

"I'm afraid that even if I make enough money by then, Mr. Liu will not be willing to give up the power he has obtained."

"Mr. Yang is just feeling emotional."

"It's just a momentary feeling. After all, it's a child raised by yourself. Which father is willing to let go?"

Liu Qiangxi smiled and said, "When the child grows up, you always have to let go, and sometimes letting go can achieve greater growth."

Glancing at him, Yang Shouhai didn't say anything.

The two people who made a witty remark didn't speak again.

The car went around the corner in front, and the magnificent Jiulongyu Villa of Boss Xu appeared in front of the two.

Passing through the door, looking at the magnificent building that climbed up the steps, the two people who came for the first time couldn't help but marvel.

They had seen manors bigger than this one.

But this was their first time to see a manor that was built into the mountain layer by layer.

The two of them stopped their car in the square in the front yard.

Li Jinling saw them get off the car and went to meet them.

"Mr. Liu, Mr. Qiu."

"Secretary Li."

After the two sides greeted each other.

"Please follow me. Mr. Xu is waiting for you in the reception room."

He took the two to the reception room in the front yard.

Xu Liang put down the documents in his hand and came to meet them.

"Mr. Yang, welcome, welcome."

Looking at the tall and strong man who came to meet him, although he was smiling, he was invisibly exuding a huge sense of oppression. Yang Shouhai subconsciously remained respectful.

"Mr. Xu, it is my honor to receive your invitation to visit me."

"Mr. Yang, you are too polite. Please sit down."

After the three of them sat down as host and guest, the secretary served tea.

Xu Liang smiled and said, "Mr. Yang, I have heard of your name for a long time.

Under the blockade abroad and the lack of domestic foundation, you led the R\u0026D team to develop the key "pyridine" production technology and break the foreign monopoly. Mr. Yang will benefit for generations to come."

Being praised by Mr. Xu, Yang Shouhai couldn't help but show pride on his face.

"You are too polite. My little contribution is far less than Mr. Xu's leading Hongmeng to defeat the siege of Chinese Internet companies by foreign Internet companies; leading Hanhua to maneuver in the international financial market and defend China's position in the international financial market."

After a friendly business exchange,

"Mr. Yang, with the key production technology of 'pyridine', Hong Taiyang will undoubtedly become the number one in the pesticide field in China.

Our Denong Group currently has nearly 2,000 directly-operated agricultural supply stores and more than 4,000 branded stores in the four provinces of Shanxi, Hebei, Shandong and Henan. In the next two years, this number will double.

De Nong's goal is to become an agricultural supply giant with 10,000 directly-operated agricultural supply stores and a marketing network covering the entire China in the next five years.

Become the overlord in the domestic agricultural supply field.

If Hong Taiyang joins, it will rely on our Denong's agricultural supply distribution platform to cover the whole country and completely squeeze out all similar products.

This is a win-win situation."

Yang Shouhai said calmly: "Mr. Xu, if someone asks you to sell Hongmeng or Hanhua, are you willing?"

"Yes, as long as he can come up with conditions that make me excited."

Yang Shouhai: "..."

Why don't you play by the rules.

Xu Liang picked up the teacup on the table and took a sip.

"Mr. Yang, I have been working in the global business world for many years, and the biggest truth I have learned is that everything has value."

"I am afraid I will disappoint you. Red Sun is my life's work, and I will never sell it."

Yang Shouhai said firmly.

"Mr. Yang, I 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.

In fact, if it is just to acquire Red Sun, I don't need to go through you at all, and I can achieve my goal.

Talent is rare.

I respect you, but I also hope you can respect me!"

Yang Shouhai's face changed instantly.

Although he is the founder of Red Sun, he is not the controlling shareholder of Red Sun Group.

The specific reasons have to be explained from the beginning.

On April 18, 1989, Gaochun Pesticide Packaging Plant was established.

There are not many people. Yang Shouhai, who started his own business at the level of a section chief, is the factory director, with three cadres and more than 20 migrant workers.

There is not much money, and the 5,000 yuan is also borrowed.

The place is just a few rented broken factory buildings.

Embarrassing and embarrassed.

This is basically the case when most private enterprises in China start their businesses.

In terms of business, it is called repackaging, and it is really repackaging.

It is mainly to repack the purchased large barrels of pesticide solvents into small bottles, and sell products suitable for farmers to buy and use.

It is all manual work.

In the 1980s when the market economy was not developed, many people started their businesses 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 went from simple repackaging to processing.

Of course, it is also very simple.

Buy high-concentration solvents, dilute them to concentrations that farmers can use directly, and then repack and sell them.

There is a little bit of technical content.

A little bit is a little bit, and there must be no more.

After everyone is familiar with the dilution work, the business has taken another step forward.

Compounding.

That is, the original drug is purchased, other emulsifiers are added according to the process, and then diluted and packaged 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 left.

Successful people have good 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.

Cotton flyworms have developed serious resistance to pyrethroid insecticides, and cotton flyworms continue 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".

Relying on 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.

Out of 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, one of the first listed companies in Jinling, 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 Gaochun 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 institute, 5 R\u0026D 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.

It holds 49% of Jinling Biochemical, 100% of Huizhou Guoxing, 100% of Red Sun International Trading Co., Ltd., and 65% of Jinling Red Sun Seed Industry 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%;

Jinling Lvbang Ecological Technology Co., Ltd. 100%;

and 65% of Australian Haili International Enterprises Limited.

As of the end of 2005, Red Sun Group's total assets reached 4.18 billion yuan, its main operating 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;

Ranked 919 among China's top 100 enterprise groups, 465 among China's top 500 manufacturing companies, 51 among China's top 100 petrochemical industries, and ranked "three consecutive times" in terms of total pesticide sales in China.

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, holding 5% of the shares and holding 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 transferred its 86.02% 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.

Also successfully completed the risk cutting.

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 him.

This is the charm of equity structure design.

The chrysanthemum factory boss Ren can control the company with 1% equity, and Director Liu privatized Lenovo, which is basically the same operation.

According to the usual operation.

The next third step should be that Jinling Yinong Group acquires Gaochun State-owned Assets and transfers 49% of the state-owned equity of Hongyang Group Co., Ltd.

Then through targeted capital increase, it obtains absolute controlling rights.

At the same time, the purpose of Hongyang privatization is also achieved.

However, before the third step began, Xu Liang intervened as a third party.

"Mr. Yang, before we came, we had exchanged opinions with Gaochun County. Under the two conditions of promising that Hongyang Group would not move out of Gaochun County and continue to add 2 billion Chinese yuan to develop Hongyang Group.

They are willing to sell us 65% of the shares of Hongyang Group they hold."

Denong Group has strong capital and can swallow the entire company.

Yang Shouhai's face darkened.

In front of Xu Liang's powerful capital and power, he had very 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 that it will affect your reputation if it gets out?"

"Dishonorable? Did I force the purchase? No.

Acquiring Red Sun Group at a premium is a normal transaction in any country or place in the world."

Xu Liang changed the subject.

"If we really want to talk about dishonorable, I'm afraid it's more dishonorable to Mr. Yang.

Although you founded Red Sun, it is now a state-owned enterprise, and you are only the CEO.

A professional manager wants to take over the enterprise for himself, and it is an exclusive possession. Who of us is more dishonorable?"

Liu Qiangxi quickly cooperated.

"Mr. Yang, the Red Sun Group has many businesses, but we only want environmentally friendly pesticides, seeds and organic fertilizer businesses. The remaining pharmaceutical and international trade businesses, including the listing qualifications of the 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 make them bigger and stronger.

If you don't need it, Nanfu Battery, as the overlord of the alkaline battery field and a world-class battery giant, will make Red Sun the world's top alkaline battery manufacturer.

I think such conditions are already favorable enough."

Yang Shouhai was torn between heaven and man.

Although he had deep connections in Gaochun County, he was certain that he could convince the other party to reject Xu Liang and Denong.

But there was Jinling above Gaochun. Although he had certain connections here, they were far less than Gaochun.

If Xu and Denong used huge investments to exchange.

The higher-ups would definitely put pressure on Gaochun.

The result would still be the same.

Looking at the smiling and imposing man opposite him, he sighed in his heart.

After he compromised that year, he had to compromise again now.

"Mr. Xu, I agree to this deal."

Liu Qiangxi was relieved.

"Thank you, I believe our terms will not disappoint Mr. Yang.

However, we hope that while acquiring the agricultural supplies business of the Red Sun Group, Mr. Yang can also sell the agricultural supplies business of the Jinling Yinong Group to us." Xu Liang smiled.

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 an enterprise I created from scratch, it is my child, I really can't bear to sell it."

Xu Liang smiled and said: "Mr. Yang, we only want the agricultural supplies business of Yinong Group, not your Yinong Group, you don't have to worry."

"This... I need to think about it."

"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 let's end our negotiation today."

After holding his hand.

"Don't worry, Mr. Xu. I will immediately push forward the acquisition negotiations with Denong after I return."

Xu Liang smiled and nodded.

"Sister Li, please help me relax Mr. Yang."

Li Jinling turned sideways.

"Mr. Yang, please follow me."

Yang Shouhai said 'goodbye', and finally looked at the two of them, and left with a complicated look in his eyes.

The door closed.

Xu Liang waved to Liu Qiangxi to sit down.

"You see, you are still unwilling."

Liu Qiangxi nodded.

"Through the contact during this period, I found that Yang Shouhai is a person with a strong desire for power and will not give up easily.

Now under our pressure, he sold Hong Taiyang.

But from the fact that he retained the agricultural materials business of Jinling Yinong, it is clear that he is probably thinking of poaching the talents of Hong Taiyang and leaving an empty shell for us."

"With Jinling Yinong's foundation in the agricultural materials industry, coupled with the talents of Hong Taiyang, with his influence in the national agricultural materials, especially the pesticide market, it is easy to turn Jinling Yinong into another Hong Taiyang." Xu Liang said.

"Mr. Xu, things are not as bad as we thought.

At the same time as the acquisition, we can use a non-compete agreement to restrict the executives and technical personnel who leave Hong Taiyang from working in the agricultural industry within one year."

"One year is too short."

After Oracle acquired PeopleSoft, once the one-year non-compete agreement expired, the original company founders and executives quickly recruited old PeopleSoft employees fired by Oracle to establish the company "Workday".

It also focuses on developing enterprise resource planning and human resource management software.

With the support of venture capital including Hanhua, Workday's current valuation has exceeded US$1 billion.

It has become a strong competitor of Oracle again.

Xu Liang does not want to make such a mistake himself.

"Mr. Xu, although one year is short, it gives us the opportunity to adjust personnel.

With option rewards and salary increases, I believe many people will stay."

"Middle-level and lower-level employees will buy into our tricks, but it is difficult for the executive team to stand on our side. They are too tied to Yang Shouhai." Xu Liang said.

The senior executives of Red Sun are all shareholders of Yinong Group, and their interests are the same.

"Mr. Xu, any contradiction has both positive and negative sides. The departure of the senior executives of Red Sun is indeed not conducive to the development of the company, but it also makes it easier for us to adjust calmly and complete the integration of the company as soon as possible."

"That's right. Without the stumbling block, it is indeed easier to integrate. And the promoted people will be more loyal to us.

But in order to protect the company's core secrets, the R\u0026D team should not stay in Jinling, but move to Shanghai."

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 the R\u0026D here.

It can be penetrated by the other party like a sieve.

When the time comes, the new pesticide developed by Denong will be sold by Yinong Group, and he will lose face.

Even if he wins the lawsuit in the end.

Under the current legal environment, the compensation will definitely not be enough to fill the hole.

"How is the contact with Jinling going?"

"They said that as long as we continue to place the headquarters of the Red Sun Group in Jinling and invest 3 billion Chinese yuan in Jinling in the next five years to build the largest pesticide production base in China, they are willing to support our acquisition of Red Sun."

Xu Liang nodded slightly. 3 billion is not a big number.

Moreover, Denon acquired Red Sun with the intention of using it as a foundation to strengthen its strength in the pesticide field.

It is certain that a huge investment will be made.

"Then sign the contract as soon as possible."

"Yes."

"By the way, I am a trustworthy person. Since I promised to sell Nanfu batteries to Yang Shouhai, I will abide by the agreement.

But, I want all cash, not a penny less."

Looking at the big boss's expression, Liu Qiangxi understood in his heart.

After Nanfu batteries went public, the market value has been close to 3 billion Hong Kong dollars.

Considering goodwill and premium, it will be at least 3.5 billion Chinese yuan.

Can Yang Shouhai pay for it?

Definitely not.

The total assets of Jinling Yinong Group are only about 1.5 billion Chinese yuan at most.

Unless he is willing to sell Yinong Group, get a sum of money, and then use Nanfu shares as collateral for financing after the successful acquisition, the acquisition can be successful.

The price of doing so is to completely withdraw from the agricultural industry.

If he really chooses this, Xu Liang will definitely sell Nanfu to him.

"Mr. Xu, to prevent accidents, I think we can add a deadline, such as one year."

"Old Liu, you are still quick-witted. We really need to add a deadline."

If you can't grasp the opportunity given to you, it's not our problem.

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