My 1999

He does not ride in luxury cars, does not enter entertainment venues, does not eat and drink, does not gamble, and does not even stay in high-end hotels. His daily life is very simple.

All the family's savings were invested in the factory, and his father and stepmother had been growing vegetables and farming in the countryside.

A super-rich man ranked 376th on the "China's 400 Richest List" of "New Fortune" with an estimated asset of 220 million yuan.

But he is willing to live in a very simple small house in the steel factory.

One of the walls of the house was hit by a large truck, but it was a relief.

Moreover, the car he drives all year round is a Santana 2000 that was paid off with debt.

He is obviously a very pure person who is very passionate about the steel industry. Otherwise, I can't think of why a rich man would be willing to live such an ascetic life?

Let’s talk about project planning.

Like almost all fields, private steel companies have always had cost advantages.

The cost of ironmaking is 60 yuan to 90 yuan lower per ton, the cost of steelmaking is 60 yuan to 150 yuan lower per ton, and the finished product is 100 yuan to 300 yuan lower per ton.

And the cost of the blast furnace is only 300 million yuan.

In addition to low production and equipment costs.

Dai Guofang has also reached a long-term iron ore supply agreement with an Australian mining company. The agreed price is more than 300 yuan per ton, while the market price is around 1,000 yuan per ton, and this price will remain unchanged for a long time.

The products are positioned as higher-grade products such as marine plates and rebar.

In addition, Tieben's planned production capacity is 8.4 million tons. Once it is put into production, it will be second only to Baosteel and Tangshan Iron and Steel with steel production capacity of over 10 million tons in China.

Finally, the outlook for the steel industry.

I remember you mentioned before that China's real estate industry and construction industry have a 20-year golden development period. "

"Your analysis is very good. However, there are also a lot of troubles in Tieben, especially Dai Guofang's lawsuit. The failure of the Tieben project to pass the approval above is itself a violation. This will not change with our acquisition. ”

Domestic economic reforms have always had the tradition of "breaking through barriers". The so-called "go fast when you see a green light, go around when you see a red light." Many reforms were successfully implemented through this kind of barrier-breaking, and it was passed down as a good story in the future. Of course, There are also some who are imprisoned.

Tieben is the most typical example.

The 8.4 million tons project was split into 7 sub-projects and 1 terminal project to be reported separately.

Tieben correspondingly established 7 "Sino-foreign joint ventures" with only nominal names. During the approval of construction land rights, the land was "broken into pieces" and divided into 14 pieces of land for approval application.

Things that should have been decided at the highest level ended up being passed only at the local level.

It laid the foundation for the outbreak of the Tieben Incident.

"Of course I know the troubles Tieben is facing. According to the company's survey feedback, the country is currently relatively tolerant of investment in the steel industry.

At the same time as the Tieben incident occurred, Baosteel entered into a three-party joint venture with Asel, the world's largest steel company, and Nippon Steel, the second largest company, to start the construction of an 1,800 mm cold rolling project.

In addition, a long-term ordering agreement for the purchase of 7 million tons of iron ore per year has been signed with Australia's Hammersley Company.

Also, Benxi Iron and Steel Group cooperated with Posco to launch a cold-rolled plate project.

Ansteel and Germany's Thyssenkrupp, Europe's second largest steel company, jointly invested US$180 million to build a hot-dip galvanized sheet project with an annual output of 400,000 tons.

Tangshan Iron and Steel Group and Ma'anshan Iron and Steel Group respectively signed 3 million tons of iron ore ordering agreements with the world's largest mineral resources company, Bibito Company.

Therefore, as long as we acquire a foreign steel company with certain influence, we can acquire the iron capital project through cooperation.

Approval is relatively easy. "

Xu Liang thought for a moment, "Do you like investing in the steel industry?"

“I like investing in businesses with potential. Ironburn is a good target.

Moreover, the steel industry is currently accelerating integration. If we can integrate part of the domestic private steel industry, it will not be difficult to form a steel giant comparable to Anshan Iron and Steel and Baosteel.

And we also have enough funds and connections to advance this matter. "

Hanhua has been developing in China for many years, and more than a thousand GPs have invested in Hanhua. These are Hanhua’s connections.

If you really want to mobilize, it is not difficult to acquire Tieben.

"Let's put the iron issue aside for now."

Xu Liang picked up the second document.

"Tell me about the Sanjiu Group. Why do you fall in love with it?"

"Although Sanjiu Group is currently suffering serious losses, its core assets are unique and have extremely high investment value."

Jiang Xiaoyang said.

When it comes to Sanjiu Group, one person has to be mentioned, Zhao Xinxian.

He developed the famous "Sanjiu Weitai" based on the traditional Chinese medicine prescriptions he purchased.

This guy is also the pioneer of domestic taxi roof advertising and celebrity commercial endorsements.

With excellent products, coupled with first-class marketing.

By the end of 1988, the output value of the Sanjiu Group's predecessor, 'Southern Pharmaceutical Factory', had reached 1.8 billion yuan, with profits and taxes of 400 million yuan, ranking 82nd among the 500 largest industrial enterprises in the country, and becoming the most well-known and profitable traditional Chinese medicine company in the country at that time. enterprise.

At that time, none of the companies such as Haier, Lenovo, and Vanke, which were founded at the same time as Sanjiu, had sales of more than 1 billion yuan, while Huawei and Wahaha were less than a year old.

What is the concept of an output value of 1.8 billion Chinese dollars in 1988 and a profit and tax of 400 million?

At this time, the per capita disposable income was only 1,181 yuan, house prices were 500 yuan per square meter, rice was 30 cents per pound, large items such as home appliances required tickets, and households with 10,000 yuan were considered rich.

With great success, "Nanfang Pharmaceutical Factory" launched a series of traditional Chinese medicine products such as Zhuanggujiandan Pills, Zhengtian Pills, and Dermatitis Pingping. Their sales exceeded 100 million yuan within one year.

No one in China can challenge Nanfang Pharmaceutical's capabilities in the development and market operation of traditional Chinese medicines.

In a sense, it was one of the most successful market-oriented enterprises throughout the 1980s.

After the property rights reform in 1991, Nanfang Pharmaceutical Company was renamed as "Sanjiu Group".

Lu Xun once said that as long as you are successful enough, shit will be delicious.

In the Sanjiu Group, Zhao Xinxian is the general manager, and there is no deputy general manager below him. The group headquarters only has three departments: the Party Affairs Department, the Finance Department, and the Human Resources Department. There is not even a president's office. Zhao Xinxian has five secretaries, one each. Handle relevant specific matters.

He proudly called this management setup the "one-person mechanism."

At that time, there was a general lack of successful business experience in China, and thanks to the successful background of Sanjiu Group, this "one-man mechanism" and the "Haier experience" actually became the standard in the domestic business community.

Being hyped about learning.

As he became more and more successful, Lao Zhao inevitably drifted away.

Not only did they hang the billboard in Times Square in New York, they also took advantage of the 1990s when the country was retreating and the people were advancing.

From 1996 to 2001, Sanjiu acquired more than 140 local companies, averaging two a month.

Among them, debt-bearing type accounts for 45%, holding type accounts for 35%, and trusteeship type accounts for 20%.

The debt-bearing type is a wholly-owned acquisition, the holding type is not difficult to understand, and the trusteeship type mainly does not require equity and only contracts management rights.

In this kind of crazy mergers and acquisitions, Sanjiu Group rapidly expanded into the largest traditional Chinese medicine company in the country, with total assets soaring to 18.6 billion yuan.

Affiliated enterprises spread across the country, forming eight major industries: medicine, automobiles, food, wine making, tourist hotels, commerce, agriculture and real estate.

It even owns one of the largest nightclubs in South China.

It's just exaggeration. Damn, it opens the door for exaggeration. It's so exaggerated.

You must know that when Hanhua was not short of money, Huaxia Liquor Group only acquired companies in the same industry, and it only acquired less than 20 companies in two years.

In 1995, there were 140 companies.

It also spans eight industries.

It’s no wonder that when Jack Welch was invited to attend the Fortune Global Forum’s annual meeting in Shanghai in 1999, he said that Chinese entrepreneurs “seem to be acting.”

With hundreds of years of development, business models have evolved time and time again in the Western business world.

China, which is still in a reckless era, is indeed a bit naive.

However, no one could have imagined that in just 20 years, these naive entrepreneurs would evolve rapidly and surpass their international counterparts.

Watch him build tall buildings, watch him entertain guests, and watch his buildings collapse.

In 2004, Sanjiu, which had expanded to its limit, was teetering on the edge of collapse.

Lao Zhao tried to force the palace from above, but was directly pressed to death.

"Sanjiu Pharmaceutical is indeed a good industry with high value." Xu Liang said.

Even twenty years later, pharmaceuticals will be a lucrative business, let alone now.

And Sanjiu also has its own core products.

Sanjiu Weitai, Zhuanggu Joint Pills, Zhengtian Pills, and Dermatitis Pingping are all best-sellers on the market.

Moreover, Lao Zhao has a strategic vision, accurately grasped the context of China's Internet era, and developed Sanjiu Health Network.

After entering the new century, through the rise of Gome and Suning, we predictably discovered new changes in China's business entering the era of 'channels are king'.

On the one hand, it quickly invested in building more than a thousand pharmacies across the country.

On the other hand, it also quickly deployed in the upstream of the traditional Chinese medicine industry, acquired Hainan Traditional Chinese Medicine Hospital and some Guangdong provincial traditional Chinese medicine hospitals, and even planned to establish a chain of traditional Chinese medicine clinics around the world.

Do you think this is Lao Zhao’s limit?

NO.

The concept of ‘big health’ was not proposed until ten years later.

Lao Zhao started doing it two thousand years ago.

He invested 4 billion Chinese dollars in the eastern part of Pengcheng to build a health city of amazing scale.

It includes the world's largest golf city with 90 holes, an ultra-luxury five-star health hotel, and a large comprehensive health service system including nursing homes, hospice hospitals and special care hospitals.

Lao Zhao's meaning is obvious.

After taking my medicine, you become a member of my family.

Everything is clearly arranged for you from birth to burping.

It is a pity that Lao Zhao has a strategic vision but lacks sufficient execution and management capabilities.

In the reckless era, he could still do well, but when business competition entered deep waters and management became refined, his shortcomings became more and more obvious.

To sum it up in one sentence, if you are willing to kill the thief, you will be unable to save yourself.

"What are you going to do if you acquire Sanjiu Group?"

Xu Liang asked.