My 1999

Xu Liang took the document from Liu Qiangxi and flipped through it briefly.

There was too much content, involving many detailed clauses and explanatory texts.

It would take too long to finish reading it.

"Just give a brief introduction."

Liu Qiangxi nodded and said.

"Currently, the entire Denong Group has five business divisions: seed industry, agricultural supply chain, Tunhe agriculture, animal husbandry and sugar industry.

The group's overall plan for 2006 is also based on five parts.

In terms of seed industry, our main goal is to deepen the cultivation of major grain crops, especially soybeans and corn, which have a certain foundation, and strive to become China's largest fine seed company in this field."

Major grain crops mainly refer to agricultural types with large planting areas and are related to the national economy and people's livelihood.

Currently, there are four major grain crops in China, rice, wheat, corn and soybeans.

"Our plan is to develop research and development in parallel with mergers and acquisitions.

By investing 15% of the revenue each year to develop new hybrid varieties, we will continuously iterate and develop better corn and soybean varieties.

The benefit of mergers and acquisitions is that we can quickly occupy the market and increase the revenue of Denong Seed Industry.

Moreover, there are many domestic seed companies now, but there is a lack of leading companies, which provides a good foundation for our merger and acquisition strategy.

Speaking of this, I would like to thank you again.

You have exempted all the debts of Denong Group, giving us ample financing space and more capital to develop the company."

When Xu Liang just acquired Delong Group, he stripped all the debts of Delong.

This also includes Denong.

But after more than a year of development, Denong inevitably had debts again.

After the success of the Tenglong plan, in order to pay less capital gains tax, he once again exempted the debts of his companies.

So Denong got the benefit again.

Xu Liang smiled and said, "Do you have a target?"

"There are two, Qilu Seed Industry and Tianzhong Seed Industry in Hebei Province. Both of them are mainly engaged in corn and wheat varieties, with assets of about 300 million Chinese yuan. They have certain sales channels and influence in Qilu, Jizhou, and Huizhou.

They are large and medium-sized among Chinese seed companies.

After the acquisition, it will not only greatly supplement the production capacity of Denong Seed Industry, but also allow us to cover most of North China."

De Nong Seed Industry's main markets are Xinjiang Province, Inner Mongolia Province, Shaanxi Province and the three northeastern provinces, and the scale of the North China market is not large.

Seeing that he didn't say anything, Liu Qiangxi continued.

"In terms of agricultural supply chain, continue to implement the strategy of direct operation of regional core stores and naming of ordinary stores..."

The most basic stores of agricultural supply retail stores can be directly sunk to the village.

Small stores of this level are simply impossible to operate directly, and the administrative costs are too high.

De Nong's method is to name such small stores and make them its own lower-level distribution channels.

Then set up a direct-owned third-level direct-operated store in the higher-level "town".

Of course, not every town has one.

Generally, only large agricultural towns have one direct-sale store.

"This year, we plan to increase the number of direct-sale stores in Qilu Province from 739 to 1,128, which can basically cover all cities and towns. Increase the number of 421 stores in Hebei Province to 900, and initially complete the coverage of major cities and towns.

At the same time, we will enter Henan Province and open 100 direct-sale stores to lay the foundation for further development in the future.

The number of branded stores will increase from the current 1,792 to 4,000."

When Liu Qiangxi first took over Denong, Denong's direct-sale stores in Qilu and Hebei Province added up to only about 1,000, and the number of branded stores was zero.

Later, the company was reorganized, and the number of direct-sale stores did not increase much, but the number of branded stores increased rapidly.

The sales of the entire Denong retail chain soared, and the net profit also increased significantly.

Liu Qiangxi is really a person who can boost morale.

Just like Li Yunlong in the Bright Sword, he naturally has a personal charm that makes people unite around him.

Trust him and respect him.

Xu Liang couldn't do this.

"About the operation of the store.

The third-level direct-sale store (town level) reduces the area and only sells commonly used agricultural materials such as pesticides, fertilizers, agricultural films, sprayers, etc.

The second-level direct-sale store (county level) increases the retail of agricultural machinery and garden machinery, and provides crop disease diagnosis services.

The first-level direct-sale store (prefecture-level city) is not much different from the second-level store in terms of business scope, but it adds a logistics transfer function."

Xu Liang nodded. He is also from the countryside and knows very well what agricultural materials are commonly used in the countryside.

The setting of the third-level store is very reasonable.

For large agricultural machinery, one sales point is enough in a county.

It would be a waste if there are more.

"How do you plan to operate the crop disease diagnosis in the second-level store?"

"If farmers bring branches, leaves and soil to our store, we can do pathological identification for 30 yuan, and we will also provide a detailed diagnosis and treatment plan.

If it is in the countryside, it will be 100 yuan."

Xu Liang smiled and shook his head, "I guess it will be difficult for your plan to make a profit. ... Don't believe it?"

"Mr. Xu, it's not that I don't believe you, but crop diseases and insect pests are inevitable. In order to ensure increased income, farmers will definitely pay special attention. A few dozen yuan of spending is completely a drop in the bucket compared to tens of thousands of yuan of income." Liu Qiangxi said.

"You are right. Compared with a year's harvest, let alone dozens of yuan, even a few hundred yuan of spending is a small amount of money. But you overlooked one point.

There are basically only a few types of diseases and insect pests in rural areas.

Farmers are not stupid. After a long time, they will judge by themselves and go directly to the agricultural supply store to get medicine.

Just like us ordinary people who have a cold or fever, we know what medicine we should buy.

They will not spend extra money and time to go to the county seat.

If there is, it is rare.

My family is engaged in farming and greenhouse farming. In my impression, my parents have never gone to see a doctor for crops. "Xu Liang said.

When he was a child, he still remembered that there was a shop in town that provided this kind of service, and it was equipped with a microscope and made it look decent, but that was in the 1990s.

It disappeared immediately after entering the new millennium.

He doesn't know the specific reason, but if it makes money, I believe it will definitely not be this result.

"Let's do this. You can do a few pilots first, see the effect, and then decide whether to promote it to the whole company."

Liu Qiangxi nodded and agreed.

I also felt relieved.

He was really afraid that Xu Liang would directly deny him based on his own experience.

If crop diagnosis and treatment develops, it will become a selling point and an important profit point for the Denong agricultural supplies chain.

He doesn't want to give up easily.

"Tunhe agriculture is limited to the current land situation in China. It is difficult for us to increase the area of ​​agricultural land, so it mainly focuses on deep processing of agricultural products."

During the Delong era, Tunhe Agriculture opened four large-scale farms in Xinjiang Province, controlling 400,000 acres of land, growing tomatoes, wolfberries and other cash crops.

But these lands in Delong are modern farms opened up on wasteland, and they are also similar to Israel's water-saving agriculture.

The investment cost of this type of farm is higher.

And it’s difficult to promote on a large scale.

After all, Xinjiang Province’s water resources are limited.

After Denong took over, he invested tens of millions more to establish two 100,000-acre farms.

But turning wasteland into high-yield agricultural land requires more than just water.

It is also necessary to put in various organic matter to increase nutrients and turn the sandy soil into soil where crops can grow.

With sufficient financial support, this process will take three to four years.

It is too difficult to recover costs simply by farming.

This is also the reason why Liu Qiangxi wants to do further processing.

However, the development of deep processing was not just his own idea. Tunhe Agriculture in the Delong era had this idea, but they focused most of their attention on finance.

There is simply no funding to move this forward.

“This year we are tentatively planning to develop four types of deeply processed products: tomatoes, wolfberries, jujubes and apricots.”

The four products are all products with a solid agricultural foundation in Tunhe.

Especially for tomatoes, during the Delong era, there were already 12 tomato processing plants, with an annual output of 300,000 tons of large-package tomato paste, 5,000 tons of tomato powder, and 10 tons of lycopene. It is the second largest tomato company in the world.

Although the apricot jam is a bit inferior, it still has the capacity to process 100,000 tons of fresh apricots and concentrate 3,500 tons of apricot pulp annually.

“Develop ‘Tunhe Brand’ tomato paste, dried tomatoes, bagged wolfberry, dried jujube, apricot jam and other primary processed products to extend the value chain and create more revenue.” Liu Qiangxi continued.

"Xinjiang Province is rich in dried fruit resources. In addition to the previously mentioned, there are also grapes, walnuts, etc. Tunhe Agriculture can carry out deep processing based on these resources." Xu Liangdao.

"We think so too, but this year we only plan to develop tomatoes, wolfberries, jujubes and apricots first. After we have some experience and make money, we will consider going further."

“Don’t be greedy for perfection and move forward steadily. Not bad.

However, the foundation of Tunhe Agriculture is the farm. In addition to the continuous development of deep processing of agricultural products, it is also necessary to continuously expand the company's farm area. "

Liu Qiangxi said: "Mr. Xu, the cost of developing farms in Xinjiang Province is too high. It is difficult for us to make much money during the 20-year lease period.

If the same money is invested in other areas, you will get higher returns. "

The longest land lease period in Huaxia is 20 years.

After 20 years, even if it is leased again, the rental fee for agricultural land will be much higher than that for wasteland.

This means rental costs are significantly higher.

"Lao Liu, after so many years in business, I have learned the biggest truth: no matter what happens, you must leave yourself a certain amount of room.

Although looking at it now, we control the largest retail channel for domestic tomatoes, dates and other agricultural products.

But we are not without competitors.

Even in the tomato field, where we are most confident, there are new Zhongji. "

There are two giants in the tomato field in Xinjiang Province.

One is Tunhe, and the other is Xinzhongji, a Xinzhongji enterprise that started out as a decoration company.

This company has been engaged in the import and export of agricultural products since the mid-1990s.

Founder Liu Yi observed that tomato consumption in the CIS countries is considerable, which is a good business opportunity.

So he paid heavily to Roland Berger to provide him with a tomato paste industry consulting report. After research and judgment, he officially prepared to build the first tomato paste production plant in New China Base.

In 2000, New China Base was listed on the XPCC index and began to focus on the tomato industry from diversified operations.

With the entry of Xinzhongji and Tunhe, China's tomato industry has moved from the production and operation stage to the stage where capital is king.

With the help of ammunition delivered by the capital market, the two companies control 70% of Xinjiang Province's tomato processing capacity, and tomato paste output has quadrupled in four years.

In 2001, Tunhe became the world's second-largest tomato processing company after Morningstar of the United States, and Xinzhongji, supported by the XPCC, ranked second in the Chinese market.

However, behind the development of China's tomato industry, it is not China but the Italians who really make the big profits.

Italy is the most influential force in the global red gold trade and the most important driver of the tomato processing industry, thanks to three factors: war, immigration and Mussolini.