My 1999

After going public, Tunhe Cement Factory, although its profitability is not very good, is still profitable.

Although leeks look down upon it, in the eyes of capital, this is a very good net shell.

Therefore, they were favored by Delong, who was prosperous in the capital industry and made a lot of money.

In October 1993, Delong acquired part of the collective shares of Tunhe Cement Factory and entered Tunhe as the fourth largest shareholder.

Delong's appetite is certainly not satisfied with being just a small shareholder.

Soon, he continued to make acquisitions and became the majority shareholder of Tunhe.

After obtaining the controlling stake, Delong relied on its abundant capital to carry out mergers and acquisitions non-stop.

Tunhe Shares, Tunhe Industry and Trade, and Tunhe Agriculture and Animal Husbandry were successively taken over by Delong.

On the basis of these enterprises, Tunhe Group was established.

What needs to be emphasized here is that Tunhe Group’s main business at the beginning was cement.

Since 1996, Tunhe's cement production has been continuously increased through mergers and acquisitions, technological transformation and other methods.

By the end of the 1990s, it was the second largest cement giant in the Western Region with a cement output of over one million tons.

As the saying goes, there is no room for two tigers in one mountain, except one male and one female.

This sentence is also very accurate when it comes to the cement industry in the Western Regions.

In addition to Tunhe, there is also the largest cement giant in the Western Region, Tianshan Co., Ltd.

However, the output of the two is not much different.

So in the late 1990s, the two giants fell in love with each other. If you cut prices and ship goods, I will also cut prices.

If you buy it, I will buy it too.

They all want to kill each other and become the boss themselves.

As a result, the two families were exhausted from the fight, and no one could do anything to the other.

On the contrary, the third, fourth and fifth sons were all killed.

Seeing that things were at an impasse, Deron quickly changed his mind.

If you can't win, then merge.

In March 2000, with the initiative of Delong, Tunhe sold its cement business to Tianshan Holdings.

After the integration, the annual cement output of the two companies exceeded 3 million tons, accounting for 60% of the cement output in the Western Region.

Tianshan Co., Ltd. thus established its position as the third largest cement company in China and the largest in northwest China.

Huge economies of scale allowed Tianshan Co., Ltd. to obtain a net profit of 93 million Huaxia coins that year.

However, the major shareholder of Tianshan Shares is not Delong Group, but Tianshan Building Materials Group, the original big boss of Tianshan Shares.

Of course Tang Wanxin was not willing to just sell his adopted child.

Therefore, in September 2002, it acquired 55.7856 million shares of Tianshan Building Materials Group, the largest shareholder of Tianshan shares, for 267 million Chinese dollars, accounting for 32.18% of the total share capital.

Not only did he become the largest shareholder of Tianshan Building Materials Group, he also directly controlled Tianshan shares, making him one of the "new three shares" of Delong Group.

Tianshan Building Materials Group and Tianshan Co., Ltd. have also become the aircraft carrier for Delong to integrate the cement and building materials industries.

Let’s talk about Tunhe Group later.

After selling its main business, the cement business, Tunhe Group's main business has completely shifted to agriculture and animal husbandry.

Relying on the unique natural environment of the Western Region, hundreds of millions of yuan have been invested to develop the red industry with the core processing of tomatoes, safflowers, carrots, wolfberries and other special fruit and vegetable resources.

Through a series of buy buy buy.

In just three or four years, Delong has established an annual production capacity of 240,000 tons of tomato paste, 10,000 tons of tomato powder, and 10 tons of lycopene, ranking first in Asia and second in the world.

Products are exported to Europe, the United States, Russia, South Korea, Japan, Southeast Asia and other countries and regions.

In order to develop foreign channels, it also acquired the American tomato paste seller ‘Xinrui Company’ and the Italian ‘Gandover Company Sales Company’ with more than 20 years of tomato paste business experience, successfully entering the international market.

Today, Tunhe tomato paste’s market share accounts for 75% of the country’s market and 17% of the world’s.

Although it has become a world-class ketchup giant, Tunhe itself does not have much bargaining power.

Throughout 2004, Tunhe's tomato sauce revenue was only about 900 million yuan.

Regarding the fact that the scale of ketchup is not large, Delong still adopts the old method of buying, buying, buying.

Acquisition of Emin Food Company, acquisition of Huiyuan Juice, etc.

Of course, Huiyuan was later bought by Xu Liang.

However, Delong still insists on expanding its market in the juice and food industries.

In addition, 5 apricot jam processing plants and 200,000 acres of orchards have been established in Kashgar, Hotan, Aksu and other places.

As of now, Delong has an annual processing capacity of 100,000 tons of fresh apricots and an annual processing capacity of 18,000 tons of apricot jam.

Tunhe apricot jam, dried apricots, almonds and cans are exported to Europe, America, Japan, South Korea, Central and Western Asia, Russia and Arab countries along the tomato paste sales channels established by Delong.

Accounting for 40% of the international apricot jam market trade volume, it is a world-renowned supplier of apricot jam products.

In addition to tomato paste and apricot paste, Tunhe Group is also the largest sugar beet planting and sugar production enterprise in the country, with 450,000 acres of sugar beet production areas in the Yanqi Basin and Ili region.

It owns 9 sugar factories in the Western Region and Shanxi Province.

The daily sugar beet processing capacity is 25,000 tons, and the annual production capacity is 470,000 tons of sugar, 183,000 tons of granular meal, and 42,000 tons of edible alcohol.

Sugar production accounts for 80% of the total production in the Western Region and 36% of the national beet sugar production.

Tunhe brand tomato products, Tunhe brand apricot jam, Tunhe brand and Sifang brand sugar, Tunhe brand safflower, jujube, wolfberry, and Yuehuo juice from Tianyi Fruit Industry, a subsidiary of Tunhe, are all Huaxia Foods A brand with a very high market share.

What needs to be emphasized here is that.

Because Huiyuan was acquired by Xu Liang very early.

Delong not only received a huge sum of 550 million Chinese yuan, but also reduced debts of nearly 300 million Chinese yuan.

Most of this money was spent on the business expansion of Tunhe Group, especially animal husbandry.

Lu Xun said that money is a man's courage.

This sentence is absolutely correct.

Tang Wanxin, who had a huge sum of money, made a statement in front of the media.

Delong will invest 2.5 billion yuan to develop the vast natural pasture resources in the Western Regions and build three major industrial bases of "Northern Slope of Tianshan Mountains, Ili River Valley, and Southern Xinjiang Oasis".

Eventually, a large-scale industrial chain of grass, feed, breeding, and breeding, milk, meat, leather, and medicine will be formed, becoming the leading enterprise of Huaxia Dairy.

Old Tang is a very contradictory person. He has both the feelings of a simple entrepreneur and the stomach of a cunning businessman.

Businessmen brag and brag. After fooling around and getting the money, they will do what they should do and run away when they should run away. They will never talk about feelings, let alone emotions.

But Lao Tang is different. Although he may be fooling people, he is also a real investor.

In 2002, he invested 500 million yuan to establish Tianshan Animal Husbandry. Through expansion and mergers and acquisitions, he established more than a dozen animal husbandry companies in the Western Regions, with 7 dairy processing plants, seven high-yield dairy cow demonstration bases and two fine breed breeding centers.

In just over two years, relying on Delong’s huge political and business relations in the Western Regions, he established more than 240 milk stations and formed a processing capacity of 290 tons of fresh milk per day.

‘Tianshan brand’ milk is the largest milk brand in the northwest.

Lao Tang’s ambition is not only in the dairy industry, he also wants Delong to become a giant in the animal husbandry industry.

So he invested heavily to develop animal husbandry, especially cattle breeding, in the north and south of Tianshan.

Up to now, Tianshan Animal Husbandry is the only national-level frozen semen production enterprise in the Western Regions, one of the leading enterprises in the domestic fine breed breeding industry, and one of the largest cattle breed improvement product and service providers.

The number of various beef cattle raised by Tianshan Animal Husbandry has exceeded 50,000.

Relying on agriculture and animal husbandry, by 2004, Tunhe Group's total assets exceeded 4.5 billion Chinese yuan, and its total revenue exceeded 1.394 billion yuan, but its net profit was only 113 million yuan.

It was far lower than its peers.

The reason for the low profit was also very simple, the management was too rough.

In just four or five years, it acquired and established more than a dozen, or even 20 to 30 companies. These companies simply merged their financial statements, without integrating personnel, unifying logistics, and not systematizing raw material procurement.

The management still followed the original rigid system.

Not to mention the corporate culture.

In this case, how could the company's profits be high?

In particular, cross-industry integration requires higher requirements.

This is also the reason why Hanhua and Hongyan, who clearly had a large amount of working capital in their hands, did not invest all of it in Kelong Supermarket, Huaxia Wine Industry, and Harvest Agriculture.

The integration of companies is a complex and highly skilled job.

If it is not done well, burning money will have the opposite effect.

The only thing that made Xu Liang invest a lot of money was real estate.

Real estate does not require much skill, and if there is more money, you can directly buy land.

There are third parties for construction, supervision, and even for selling houses.

As long as you are willing, you can make money without having to show up.

Of course, the profit is not high, but at least it is a way.

"How many dairy and fruit assets does Tunhe have?"

"Including 21 companies at home and abroad, with a total asset of 1.48 billion." Qiu Mingcheng said.

"Strip out this part of the assets and set up a separate entity. The rest will be merged with Harvest Agriculture."

Qiu Mingcheng nodded, "Mr. Xu, if we integrate, do we still need to inherit Tunhe's listing status?"

Now Harvest Agriculture has completed the integration of the domestic and foreign oil pressing industries.

In the past year, most of the time has been busy integrating dozens of oil factories.

Now the unification of personnel, management and logistics has been basically completed.

The next step is the most critical and important corporate culture construction.

This is a long-term and meticulous job, and the effect will not be seen in the short term.

After the integration, Harvest Agriculture's overall oil crop processing capacity reached 19.17 million tons, and its feed processing capacity reached 12.78 million tons.

Total assets: 36.87 billion Chinese Yuan (half of which is soybean and corn reserves), total liabilities: 17.765 billion Chinese Yuan.

It is the dominant player in the domestic oil pressing and feed fields.

If the two parties merge, Tunhe's stock price will undergo earth-shaking changes.

"Stop trading. The main task of Harvest Agriculture is to integrate Delong's agricultural assets. As for when to resume trading, we'll see what happens."

Qiu Mingcheng nodded.

"How is the construction of the new factory in Qingzhou going?"

In addition to integrating and eliminating backward production capacity, Harvest Agriculture is also actively expanding new production capacity, especially in the agricultural province of Qilu. In August last year, it invested 2 billion Chinese Yuan to build an oil and fat factory in Qingzhou, his hometown, that can process 1.5 million tons of soybeans and corn and 1.2 million tons of feed annually.