Agricultural giant since 1983

Chapter 276 Pain and happiness
Compared with the past, for the first time, representatives from all over the country did not need to use food stamps. Shortly after the meeting, food stamps officially withdrew from the stage of history, which marked the further liberalization of the country's food policy, and also meant that the Chinese people No longer have to worry about not being able to eat enough.

Right now, being able to eat well is not something that every family can do, but eating enough is no longer a headache for most people. The accumulated water conservancy projects, the continuous emergence of improved seeds, and the increase in fertilizer production Continuous improvement has brought bumper harvests year after year. In the field of staple food, the Chinese are already self-sufficient.

This is also a good thing for Li Lei. First, the common people have gone through the stage of starvation and began to seek to eat well. His farms and food processing factories must have a lot to do; The time is also much more convenient. The state's control over grain has been further relaxed. The purchase and distribution of grain is not as troublesome as before, and the procurement cost can finally be reduced.

The good news that Li Lei ushered in this year is not limited to these. The surge in raw materials triggered by the Southern Tour speech has not yet ended. Seeing that he and Liu Yonghao and others have become representatives, they resigned decisively and went to sea while hesitant. Those who have already gone to sea Li Lei also began to expand the scale of production, so the price of raw materials rose again, and Li Lei earned more from the raw materials he had hoarded before.

At the same time, Mr. Zhu started a drastic reform. He used three axes at once, and the first one was on the triangular debt. This old problem that had plagued economic development for many years was quickly solved by him, which means that the business environment has further changed. Well, at least the companies under the name of Huinong no longer need to insist on cash and spot goods when purchasing and selling, and the utilization rate of funds has been further improved.

The second ax is the tax-sharing system, which reorganizes the relationship between local finance and central finance, strengthens the central government’s management of local governments, and at the same time gives more autonomy to local governments. This policy has both good and bad benefits for Li Lei. The advantage is that it is more convenient to cooperate with the local government. In order to obtain tax revenue, the local government welcomes him to invest in various places. The disadvantage is that the local fiscal revenue has dropped sharply. In order to make up for the gap, it is easy to overcharge.

The third ax has the greatest impact on Li Lei, that is, the implementation of exchange rate reform and the sharp depreciation of the renminbi. The sharp depreciation of the Chinese economy has made the prices of Chinese goods suddenly cheaper in the global market. Goods that may have cost nearly two dollars before can now be bought for just over one dollar.

This is extremely powerful for exports. Orders for jams, hawthorn rolls and other products produced by Luxiang Food Factory soared, and the supply soon fell short of demand. Luhua's peanut oil was also selling well. Sun Mengquan called him again and said It is time to increase production capacity. This time, there is no need for Li Lei to invest more. Just discuss with the agent and send him a batch of goods and ask him to send a batch of equipment back.

At the same time, the US dollars that Li Lei earned in the overseas futures market can be exchanged for more renminbi when he sends them back to China. He also has more spare funds to follow Huang Hongnian and continue to acquire high-quality companies, and then incorporate these companies into Huinong in the system.

But this policy did not bring all good things to Li Lei. After the Southern Tour speech, many foreign-funded enterprises began to pay attention to the Chinese market, but out of various concerns, only a few enterprises dared to formally enter the Chinese market, and now it has been a year Over time, they saw that China was indeed becoming more and more open, so they let go of their worries, rushed into China frantically, and invested with money.

This has also brought new pressure to Li Lei. Has the market competition intensified? Most of the opponents Huinong faced in the past were domestic companies, which were far inferior to Huinong in terms of financial strength and technical level. For Huinong, These opponents are nothing more than miscellaneous fish, and what they are about to face now are real predators.

What frustrates him the most is that these big crocodiles not only have advantages in terms of financial strength and technical level, but also enjoy various super-national treatment in terms of policies. All localities have introduced vigorous preferential policies for foreign-funded enterprises and joint ventures. The most common one is "three exemptions and two half reductions". After the establishment of an enterprise, the income tax is exempted for the first three years, and the income tax is halved for the next two years. Make the accounts into long-term losses, and extend the time of preferential policies.

In addition, in terms of taxation ratio, domestic enterprises are different from foreign capital and joint ventures. The income tax of joint ventures is only 13.00% to 30.00%50.00, while that of domestic enterprises is as high as [-]%.[-] How much is the gross profit of enterprises now?The tax ratio alone is so different. How do you let domestic companies compete with foreign capital and joint ventures?Even with the same sales revenue and the same profit margin, domestic companies do not earn as much as they do.

In addition to preferential tax policies, domestic companies are still discriminated against in many places. For example, a domestic company and a joint venture are interested in the same project and go to the local government to negotiate. Even if the domestic company offers better conditions, the local The government will also give priority to cooperation with joint ventures, under the pretense of introducing foreign advanced technology and experience, but in fact, it is just that doing so has more political achievements.

For the same investment of 100 million, foreign-funded enterprises and domestic enterprises are completely different in front of their superiors!Maybe they think that the funds of domestic enterprises are already in the bowl, and they will invest in other places even if they don’t invest here, while the funds of foreign-funded enterprises are in the pot. If you don’t scoop them into the bowl first, maybe It was scooped up by competitors such as Thailand and Malaysia.

As for other discrimination, there are more discriminations. When the boss of a domestic company goes to the local area, it is already very face-saving to get a deputy job; when a foreign-funded company goes there, the top leader immediately interviews it; It may not be solved in half a year; raw materials, water, electricity, trucks, etc. are all followed by foreign-funded enterprises first, and domestic enterprises can only eat what is left.

A lot of bosses of private enterprises have started to say strange things. It turns out that large state-owned enterprises are the eldest sons, foreign enterprises and joint ventures are the sons-in-law recruited by the son-in-law under the list, and small state-owned enterprises and local collective enterprises are equivalent to concubines. Are we private enterprises? It was raised by the little maid.

In recent years, the policy has been liberalized, and the status of private enterprises has also improved. They thought they could turn around, but in front of foreign-funded enterprises, they are still raised by little maidservants, and they are not even as good as before!

A lot of people are aggrieved, or find a way to go through the immigration procedures for themselves, or register companies overseas and come back, and enjoy the super-national treatment of foreign-funded companies; why do so many businessmen immigrate?Sometimes you really can’t blame them. Anyone who encounters this kind of discrimination will feel resentment, and as long as you change your nationality, you can make millions or tens of millions of profits. Who can resist changing?
It is actually very convenient for Li Lei to turn Huinong into a joint venture. He can just let New Century Investment Company take a stake.However, he did not do so. Firstly, the agricultural sector is relatively sensitive, and it is sometimes easy to keep the identity of a domestic enterprise. Secondly, enterprises in the agricultural sector enjoy tax incentives. In terms of tax rates, there is no gap between domestic enterprises and foreign-funded and joint ventures. so big.

At the same time, in order to attract foreign investment, various development zones have been built all over the country. In 91, there were only 117 development zones in the country. Last year, the number soared to 1951. By this year, the number is almost [-]. This is definitely a satellite. In fact, the country has so much money?Just doing three links and one leveling can drain the country's finances.

Don't the local governments planning to build development zones know about this?They must know, but now the whole country is building development zones to attract foreign investment, so you don't move, maybe it's a bit inappropriate, right?So even if they knew that the money would be in vain, they had to do it.

In the future, only a few development zones will be able to run smoothly, and most of them will only become unfinished projects; Li Lei doesn't want to get involved in these development zones now, but he can help some places clean up the mess in the future. No matter how bad the development zone is, the land is still very valuable!
Li Lei does not intend to develop real estate, but he is still interested in building family buildings for his employees, and building some professional real estate projects related to agriculture such as farmers' markets and agricultural materials markets; let these local governments release satellites first, When they can't hold on, Huinong will go to give charcoal in the snow.

The impact of these policy changes this year on Li Lei can be described in one sentence, that is, pain and happiness. Happiness is because the policy is further liberalized and good news is constantly coming in. Pain is because of the big challenges of foreign companies. Scale competition, and the competition was still in the case of the referee obviously blowing the whistle. It was obvious that he was playing at home, but he felt like playing an away game.

Fortunately, those foreign companies are not invincible. Liu Cixin said, "Weakness and ignorance are not obstacles to survival, but arrogance is." These foreign companies have huge advantages in all aspects, and they also have arrogance because of this. They disdain to understand the specific situation of the Chinese market, and disdain to listen to the ideas of local employees. In the end, many foreign-funded enterprises were defeated by the bumpkins they looked down upon.

Then these bumpkins honed their skills and trained their teams through domestic battles, and then went out to fight against foreign companies in the international market, crushing one after another that seems to be extremely powerful and even impossible to lose. foreign company.

These are relatively long-term things. Li Lei did not return to Heyang immediately after the meeting. Whether it is to continue to promote the "Food Safety Law" or to organize the Minsheng Bank with Jing Shuping and others He needs to stay in the capital.

He was busy until May, when Li Lei was free and was about to go back, when Wang Dadong called him over again, wanting to inform him, "We opened the first KFC in Xi'an last month, and the location is in the Bell Tower South Street on the south side."

Li Lei has known about this for a long time. The eggs, pork, chicken, and soybean oil of this KFC are also supplied by Huinong.

"In the past, KFC stores in China were all directly-operated stores. After all, it was a bit too advanced to engage in franchising at the beginning, and there were not many people in China who could accept the franchise fee!" Wang Dadong continued, KFC's franchise fee was really high. Cheap.

"I feel that the time is almost right now, so I plan to open one or two pilot projects. Xi'an is located in the inland, and even if it fails, the impact will be much smaller than that of BJ and Shanghai! It just so happens that there are suitable franchisees in Xi'an, so the first The pilot is set to be in Xi'an! This time I invite you to come here to tell you in advance, but don't worry, even if the directly-operated store is changed to a franchise store, our cooperation will not have any impact!"

"I'm sure I can rest assured!" KFC is quite strict with its franchisees, unlike other small brands that only sell recipes and signs, so Li Lei is not worried about future cooperation.

"Do you have any suggestions for the development of KFC in China?" Wang Dadong asked habitually. He felt that he could get a lot of inspiration every time he chatted with Li Lei.

"Are you a little anxious to see McDonald's coming in?" Li Lei smiled, "Actually, don't worry, the domestic market is so big, just opening stores in every big city is enough for you to work for many years. Now there is no such thing. It must be done first!"

"Just think of it as a rainy day! I know you must have ideas! Don't worry about offending McDonald's, they don't know you told me!" Wang Dadong thought Li Lei was worried about something.

"From a global perspective, your KFC is far behind McDonald's in terms of brand awareness and financial strength, but now in China, your stores are more than McDonald's. This is a good sign! But just now It’s not enough to completely overwhelm McDonald’s with its business model!”

In the future, there will be more than [-] McDonald's stores worldwide, and only [-] KFC stores, but in the Chinese market, it will be just the opposite. The number of KFC stores will reach as high as [-], accounting for almost half of the global total, while McDonald's will only have [-] stores. Home, the reason for this phenomenon is that KFC and McDonald's have implemented completely different strategic directions.

"Localization!" Li Lei revealed the answer, "According to my observation, although KFC has no shortage of customers, most of them come for fresh food, and your food is actually not very satisfying for customers! In the short term Maybe it doesn't have much impact, but after a long time, consumers may not necessarily accept it!"

"I think you can develop some new local-style products according to the appetite of the Chinese people!" For example, fried dough sticks, old BJ's chicken rolls, and egg tarts, Li Lei thinks these are much more delicious than hamburgers.

(End of this chapter)