Reborn Technology Upstart

Chapter 767 Another group with a scale of over 10 trillion

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Kirin Paper Industry Group is limited by the lack of energy, and the operating rate is actually very low. The annual paper production capacity is only 50 million tons, and the operating rate is only 50%.

Now the lack of energy has become the biggest obstacle to the development of the carbon industry. To produce these 50 million tons of paper products consumes 150 billion kilowatt-hours of electricity, which is still at the lowest level of energy consumption.

If it weren't for them to still have a production capacity of 50 million tons, the revenue obtained by relying on the production capacity of the previous year would not be able to support the expansion of production capacity to 100 million tons. Such a large production capacity requires an investment of 200 billion yuan.

Therefore, the total revenue last year was about 400 billion yuan. Including investment, the net profit margin was only 7.5%, and the net profit was 30 billion yuan.

With such a huge revenue, the net profit is only 40 billion yuan, of which the investment is the bulk. Last year, it expanded the paper production capacity by 900%, which is a very crazy move.

The second is energy consumption. In the early stage, the price of electricity from the grid was very high. After Kirin Energy Industrial Group directly supplied electricity, the cost dropped significantly, and the overall electricity cost throughout the year was still very high.

Others include taxes, acquisitions, and labor costs, which are not low when added together, and there can be a net profit of 30 billion yuan, which is not bad.

Ye Shu didn't intend to use this profit. This profit is a huge amount for other businessmen, but for him, there is really no need to hand it over.

Kirin Timber Industry Group is also facing the problem of energy shortage. They can only barely maintain the designed production capacity of the previous year, which is 50 million cubic meters of timber production capacity.

Although they have increased the overall production capacity to 100 million cubic meters, but for the sake of the overall situation, the new production capacity has not actually started. Instead, they have to maintain employee salaries, and the newly added production capacity is actually at a loss.

Fortunately, they can still produce 50 million cubic meters of wood, and the wood processing industry can also maintain normal operation, creating a revenue of 900 billion yuan for them.

Although a large amount of investment has been made, the net profit margin is still quite high, reaching 30%, and the net profit is 270 billion yuan, which is much more profitable than papermaking.

It is very difficult for the paper industry to increase the unit price, because paper has only a few functions, and most ordinary paper can only be purchased according to the market price. Even if it reaches a monopoly situation, the price cannot be raised casually.

No matter what the user is, they are very sensitive to the price of paper, and they cannot leave criticism for others. It is absolutely impossible to raise the price casually after a monopoly.

Not only can the price not be raised, but the price must be lowered when necessary, especially in China. There must be rules in doing things, otherwise someone will not like him and cause trouble for him.

The timber industry is different, they can produce too many types of timber,

Not to mention the expensive wood that exists in nature, or the special wood that does not exist in nature, the pricing power is completely in their hands.

Moreover, after processing these woods into various finished products, the added value will be higher, especially in the furniture industry, where the design value is even much higher than the cost of wood.

This is also the reason why their profitability is so high. On average, each cubic meter of wood generates 18,000 yuan in revenue, and most of the value is reflected in the product design process.

After the previous low-price strategy, the competitors insisted on it for a period of time, but they couldn't persist anymore, so they could only choose to close their doors. After they had mastered the market dominance in one place, they gradually returned to the original price.

At the same time, the supply of expensive furniture has been increased, resulting in high overall profits. It is the most common market method to adopt this replacement method to increase the price.

Kylin Resources Development Company is in the stage of only spending money but not making money. Last year, it spent a lot of money all over the world. Most of it was used to acquire the shares of mining companies, and a small part was used to purchase mineral development rights.

The 1 trillion yuan capital is still quite capable in this era, and they have acquired the shares of many mining companies. They have more or less bought shares of any well-known companies and become one of the important shareholders.

Compared with buying company shares, buying mineral development is slow to produce results. It is necessary to determine the reserves of mineral resources first, and you cannot be as much as others say.

After obtaining the mineral mining rights, infrastructure needs to be established. After all, the minerals can only be sold for money after being shipped out. It is also necessary to analyze whether local security issues will threaten the stability of mining.

If you buy the development rights, but fail to develop due to various reasons, it is a waste of time and money, and the preparation work alone is very cumbersome.

At present, my country's economic development is still very good, but its military capabilities still need to be strengthened. They dare not take mining rights indiscriminately if the situation is unstable or the country's reputation is not very good.

After all considerations, buying shares of mining giants is considered the safest investment, so their main investment method last year was to buy shares.

In fact, Tidal Investment Company also has investment behaviors in this area. The investment in purchasing shares of mining companies overseas is as high as 200 billion yuan, but the purpose of the two is different.

Tidal Investment Company purchased these shares to judge that they have good appreciation potential in the future, which is an important part of asset optimization allocation. If the dividends are good, they will continue to hold them. If the stock price reaches an ideal state, it may be thrown away.

The Kirin Resource Development Company purchased these shares in order to achieve a closer cooperation, to obtain more convenience in the purchase of mineral resources, and to have certain decision-making power.

What they are pursuing is the stability of the source of mineral resources, and they hope that the market will not fluctuate greatly, after all, many real companies are involved behind it.

Moreover, they will conduct futures transactions such as arbitrage and risk hedging according to the actual needs of the entire industrial system, and use financial market operations to offset the impact of market fluctuations.

However, they will not do this behavior themselves, but entrust Tidal Investment Company to operate it. They don't pursue high profits, they just want to achieve stable overall income regardless of market changes.

If it is only for this purpose, the futures operation of arbitrage hedging is very easy to do, and the intelligent investment system provided by Leaf Book can do this job very well.

In addition, Kirin Basic Industry Group's mineral price negotiations and sales and other links are also handed over to Kirin Resource Development Group, and they only carry out various metal smelting work.

The purpose of doing this is professionalization. Mineral procurement and negotiation is a complex issue involving a very complicated game that requires a lot of energy.

The main business of Kirin Basic Industries Group is actually not metal smelting or chemical production, but the R\u0026D and production of precision industrial equipment.

It's just that Ye Zishu insisted on handing over these businesses to them, letting them undertake the material production and chemical production of the entire industrial system, and their actual income was far lower than their precision industrial equipment.

In the view of Kirin Basic Industry Group, investing in these basic industries is not profitable, but there will indeed be serious problems if they are lacking. In order to hold their destiny in their own hands, they still silently assume this responsibility.

It’s just that they are only willing to be responsible for the research and development and production of materials, so it has a great relationship with their main business. After all, precision industrial equipment also needs various advanced material support, and there are many material research and development projects.

But they are not willing to deal with these mining companies. They have to search for resources all over the world, and their energy will be seriously scattered, and they may not be professional.

Therefore, this task was handed over to the Kylin Resources Development Group. They originally only invested in mineral resources, and now they are helping the Kylin Basic Industry Group in the sale and purchase of mineral resources.

Even the material sales business was handed over to Kirin Resource Development Group to help them find the market. Fortunately, the two groups belong to the same company, otherwise there would be serious problems in this cooperation.

If an untrusted company controls the raw materials and market, as a production and R\u0026D company, it may be manipulated every minute, especially in an industry with large investment, long cycle and low profit.

As long as it is slightly hindered, if the funds in hand are not strong enough, it is very likely to go bankrupt. Only with enough trust will the task be handed over.

Moreover, the Kylin Resources Development Group does not earn much money in the process, and is completely a wage earner. If they do not know the mission of their group, they will definitely not do this job.

Especially in the market sales segment, there is basically no money to be made, just labor costs, which is not as high as the profit of mineral procurement.

By virtue of their status as shareholders, they can obtain resources at a relatively low price, and then sell them to Kirin Basic Industries Group at market prices, earning some price difference from it.

Fortunately, they don't need to put too much thought into the sales process. The boss owns the largest industrial property, which can absorb all the production capacity of Kirin Basic Industry Group at present, so there is no need to sell it at all.

Kirin Agricultural Development Group is also currently in the pure investment stage, and the current business that can generate revenue is not enough to cover their investment needs, so there is no so-called net profit.

At present, the most profitable is the establishment of a 4 million ton meat production plant, but the time is still short, and the money earned is not as much as the investment in the construction of the plant.

So last year they had a net loss of 500 billion yuan, and their revenue was only 100 billion yuan, mainly from the profits from meat sales and agricultural product sales.

This year they want to invest a large amount of capital again, and Ye Zishu is quite a headache after reading it, thinking that it will definitely not work if this continues, the investment is too big, and they don't know when they will be able to pay back.

He felt that it was necessary to take time out and provide them with a batch of crop technology information, mainly a large amount of new variety information, which could greatly improve their agricultural efficiency and the value of agricultural products.

I have also read their scientific research results, Ye Shu, and feel that they are still relatively conservative in improving crop varieties, and they may still have some doubts about this.

After all, the variety breeding technology provided by Leaf Book is directly modified from the genetic level, but they don't know the details very well, so it is very normal to have concerns.

Although they are very confident in Yeshu's technology, the crops are for the people to eat after all. This does not involve trust issues, but as a member of the country, they need to bear a lot of responsibility.

Of course, there are also limitations in thinking, and it is not open enough. We see that most of the fruits grow on trees, and they also follow this idea when cultivating varieties.

In fact, the fruit that originally grew on tall trees can grow on low trees after improvement, even like loofah vines, so that they can be planted in temperature-controlled greenhouses.

Another reason is that the taste cannot be grasped. We usually only know whether the taste is good after eating it. The description in words is actually not very accurate, which caused great trouble for them to use the plant cultivation system.

Therefore, the products produced are generally not successful at one time, and need to be iteratively improved until the desired effect is achieved, which also takes a long time and a process.

So up to now, they haven't produced any particularly impressive results, but have simply improved some vegetables, and the economic value is not high.

The latest to be established is Kirin Food Industry Group. Fortunately, this belongs to the category of light industry. The short investment cycle and quick results are the characteristics of light industry.

In less than a year after the group was registered, their annual revenue reached 50 billion yuan. In the third quarter, their revenue was only 10 billion yuan, and in the fourth quarter it increased to 40 billion yuan.

This growth rate is still very fast, which makes Ye Zishu look forward to their performance this year. Looking at their industrial layout plan before, they are still very ambitious.

With faster economic development, the market size of the processed food industry is larger. Processed food itself exists in response to the economy and society, so he is very optimistic about the processed food industry.

In his previous life, the revenue of my country's processed food industry was as high as more than ten trillion yuan. He didn't know how much share the Kirin Food Industry Group could take. It all depended on their efforts.

However, if they want to develop rapidly, they need external investment, and it will take a long process to expand based on their own profits.

The profit margin of the food processing industry itself is not high, and it is better now. The competition in the food processing field is not so fierce, and the profit margin can still remain above 10%.

When the competition in the industry is fierce, the profit margin will fall below 10%, and it will be very difficult to survive in the fierce market.

Now my country's food processing industry is considered to be a fast-growing industry, but compared with the overall development speed of the domestic economy in recent years, it seems a bit slow.

This shows that there is a big gap in the processed food market, which just leaves enough market space for Kirin Food Industry Group, which is very suitable for players with technology and capital like them to enter the market.

Therefore, Ye Zishu intends to continue to invest in Kylin Food Industry Group. As long as they can digest it, they will try their best to meet the funding requirements, otherwise the market will be occupied by others later.

After reading the financial reports of all the sub-groups of Kirin Industrial Group, he was generally very satisfied. The annual revenue was 16.8 trillion yuan, the overall net profit was 6.68 trillion yuan, and the overall net profit rate was 39.7%.

The current loss-making enterprises include Kylin Energy Industry Group, Kylin Agricultural Development Group, and Kylin Resource Development Corporation. The first two of them need to continue to invest. These two alone will need to invest 3 trillion yuan this year.

Among them, Kirin Energy Industry Group invested 1.5 trillion yuan to build 1 trillion watts of power generation facilities and supporting transmission facilities. This cannot be delayed, and there is still a shortage of electricity everywhere.

2 trillion yuan will be used to invest in Kirin Agricultural Development Group, which will be used for meat production increase, independent temperature-controlled greenhouse construction, agricultural cooperation, agricultural channel construction, warehousing and logistics construction, R\u0026D investment, etc.

At the same time, he plans to provide Kirin Food Industry Group with 500 billion yuan of funds for the development of the food processing industry. He wants them to quickly make up for the market gap and digest the production capacity of Kirin Agricultural Development Group.

The food processing industry is in the downstream of the agricultural production link, which is conducive to digesting the production capacity of agricultural products and increasing the added value of the industry. It is very necessary to accelerate investment, so only 2.68 trillion yuan is left.

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