Agricultural giant since 1983

Chapter 416 Limited Diversification

This person named Li Guoqing, Li Lei, met Mr. Du and Mr. Tong. He was admitted to the Sociology Department of Peking University in the late 80s. After graduation, he joined the Rural Policy Research Office. He once followed Mr. Du and Mr. Tong to Heyang After research, he entered the enterprise and served as the general manager of BJ Kewen Economic and Trade Corporation.

In 96, he led a team to visit Columbia State of the United States. At the dinner, he met Yu Yu, the founder of TRIPOD International Company, and fell in love at first sight. It took only three months for the two to get married. After that, Yu Yu followed Li Guoqing back to China to look for opportunities .

After marriage, Yu Yu went to Xidan Book Building to buy books, but she was dizzy looking for books. She thought of her experience of buying books on the Amazon online bookstore in the United States, and felt that if she also opened an online bookstore in China, it would definitely bring convenience to readers. Li Guoqing, who has many years of experience in book publishing, also felt that this project was very reliable, so he decided to start a business.

Starting a business needs funds, so Li Guoqing thought of the former richest man in the country, Li Lei, whom he had met back then. When he heard that he had set up a venture capital company, he immediately came to the door with a plan, and then there was what Li Lei saw now. this report.

Although Dangdang is far inferior to Alibaba, it is still a fad in the Internet age. It is not a problem for those who invest a lot of money to earn a private jet for themselves!So Li Lei gave instructions to ask the venture capital company to talk to Li Guoqing and give him a start-up capital.

Soon, Lao Ma also negotiated. The venture capital company gave a valuation of 1000 million U.S. dollars, and then took out 500 million to buy 50.00% of Alibaba’s shares, but there was one requirement, that is, let Lao Ma as soon as possible This professional financial person straightened out the company's rules and regulations, turning Alibaba into a modern enterprise, rather than a grassroots team like it is now.

In this regard, Lao Ma already had a candidate in mind, "I knew a senior financial manager of a German investment company before. He is a Ph.D. from Yale University. He has a lot of research on corporate structure and financial systems, and is very interested in my company. I will try my best to convince him to join Alibaba!"

It seems that this is the right time for me to find Lao Ma. Li Lei knows that he is talking about Cai Chongxin. If Cai Chongxin joins Alibaba, it may not be so convenient to talk about investment. Lao Ma can’t find more venture capital now. The company, Cai Chongxin is a bigwig in the investment industry, and he knows a lot of venture capital companies.

In the future, Alibaba’s first investment was brought in by Cai Chongxin. He asked Goldman Sachs to invest 500 million US dollars. Unfortunately, Goldman Sachs withdrew after earning seven times its profit four years later. This investment is comparable to Superman’s investment in penguins. , Although they all obtained overdue profits, everyone took it as a joke when they talked about it afterwards, because they could have earned more.

"Senior financial manager of a German investment company? His annual salary is estimated to be in millions, right? How much do you plan to pay him?" Li Lei asked pretending not to know.

Lao Ma stretched out his hand confidently, "I can only offer him 500 yuan a month! If he has vision, he can definitely see the future of Alibaba, even if I don't pay him a salary, he is willing to come! If he doesn't have this vision, then it's useless for me to have him!"

Admiring your ability to fool people, Li Lei gave a thumbs up. In fact, Cai Chongxin really gave up his annual salary of millions to come to Alibaba to get 500 yuan a month. After that, he also got rich returns and became an asset. A millionaire with tens of billions of dollars, if he is not willing to part with an annual salary of several million, he will have great achievements in the future.

In the evening, I invited Lao Ma to dinner to celebrate this cooperation, and then Li Lei returned to Heyang to hold a meeting of senior executives of the group company to discuss the company's new development strategy. Since last year, real estate has become a new development hotspot, and many The real estate companies developed very rapidly, and quickly grabbed huge profits. Many companies that are closely related to the government and have certain financial strength have begun to invest in real estate.

There are also many people in Huinong who are tempted, and their reasons are very good, "The first is the profit rate. In recent years, the profit rate of the feed industry has been declining. In the past few years, it was more than ten percent, and now it is only 20.00 percent." Eighth, and the profit margin of real estate development is at least [-]%, making real estate more profitable than feed!"

"Besides, Huinong has a natural advantage in doing real estate, because we now have land in hand, and there are a lot of land! China's development speed in recent years is really too fast. The feed mill we built in the suburban area , The farms have now become the new center of the city. It is definitely not appropriate to put the farms and feed factories in the city center. The governments of many places have asked us to move out! The vacated land can be sold to the government or developed by ourselves. , we don’t even need to buy land if we want to engage in real estate!”

"Yes, what are the thresholds for real estate development? We own the land we need, and the company has a lot of money! There are design institutes for design, construction companies for building construction, third-party companies for supervision, and agency companies for sales promotion. It’s good to pass! You don’t have to worry about the whole process, and you can earn money while lying down!” Some people counted all the links in real estate development to explain that real estate development is just for Huinong to pick up money.

"Not only us, but many colleagues are also considering entering real estate. For example, Hope Group established its own real estate company to develop Jinguan New City in Chengdu. It sold for 1.6 million in three days after the opening. This is a great opportunity for Hope's feed industry. Very powerful supplement! They can use the money they earn from the real estate project to supplement the feed business!"

Li Lei was hesitant about real estate development at first. He knew that this industry could indeed make money, but felt that real estate did not match Huinong’s main business. However, the last executive’s speech reminded him that Huinong’s main business is indeed agriculture. , but agricultural projects require a large amount of investment. It is not enough to make money in the futures and financial markets. It seems to be a good plan to make profits through real estate to feed back the main business.

Anyway, even if you don’t earn the money yourself, someone else earns it. Instead of letting others build unfinished buildings, it’s better to build them yourself, and then use the money you earn from selling the house to develop better seeds and cheaper fertilizers. . This can be regarded as letting the city people support the farmers.

"In the past few years, many companies engaged in diversification and lost their core competitiveness, and some even hit the brink of collapse! But we should not be afraid of diversification because of this. In fact, we Huinong now also It is not a purely agricultural company, we are also involved in many fields such as finance and logistics! So I think real estate can be engaged in, but it must be limited, and the company should also be diversified, but it should be limited! Always adhere to agriculture as the core Center, other industries can also get involved, but only as a supplement to agriculture!" Li Lei concluded.

"Since we have so many lands in our hands, it is really a pity not to engage in real estate development, and it is really not difficult for us to develop real estate! We can cooperate with Vanke to jointly invest and benefit together. Earn far more income than selling the land to the government!" The most important thing about cooperating with Vanke is to save yourself the trouble of recruiting talents. Li Lei does not intend to keep doing real estate, so it would be too troublesome to rebuild a real estate team Yes, borrowing Vanke's existing talent pool can perfectly solve this problem.

Vanke is definitely willing to cooperate with Huinong, because it is far less convenient for them to directly develop the land of Huinong if they acquire the land themselves, and they don’t need to pay for the land. After the local government has reached a good relationship, it will be much more convenient to continue to acquire land in the city, saving the time of running in with the local government.

"Our next real estate development is divided into two priorities. The first is to cooperate with other real estate development companies to develop and sell the existing land in the company's hands as soon as possible to obtain a large amount of funds! The second is to use these funds, and The experience accumulated in developing real estate projects, and the development of professional markets!" Li Lei said his plan, and these residential and commercial development projects are not just for making money.

"Professional market?" Question marks popped up on everyone's foreheads. Nowadays, real estate development in China has just started, and some concepts are still relatively unfamiliar to everyone.

So Li Lei began to explain to them, "Simply put, it is a place where a certain type of commodity or several types of commodities with strong complementarity or substitution are concentrated. For example, everyone should have heard of Yiwu Small Commodity City. All the shops there are It sells small commodities! Another example is the vegetable market we are more familiar with, Huinong has set up stalls in all large-scale vegetable markets across the country to sell eggs, chicken, pork and other products!"

"What we want to do is a professional market related to agriculture! And this can be divided into two parts, agricultural products and agricultural materials products. Agricultural products are the finished products of agricultural production, such as grain, vegetables, meat, etc. These professional markets are There are all over the country, and the interest relationship is relatively complicated, so it is relatively difficult to intervene rashly!"

"In terms of the professional market for agricultural materials, because the sales of chemical fertilizers, pesticides, seeds, agricultural film, agricultural machinery and other production materials have been monopolized by the supply and marketing cooperatives in history, the time for liberalization is relatively short, and for the time being, there has not been a market as widespread as the vegetable market. Specialized markets in various cities! So building a brand new professional market for agricultural materials is much less difficult than building a vegetable market! The biggest resistance may be the supply and marketing cooperatives, but can we pull the supply and marketing cooperatives to buy shares together! We benefit farmers The relationship with the supply and marketing cooperatives in various provinces and cities is very good, and it should not be difficult to discuss this matter with them!" Huinong has cooperated with the supply and marketing cooperatives to sell agricultural materials for a long time.

"Furthermore, the competition in the professional market for agricultural materials is much lower than that of residential and commercial businesses. You will face competition from Vanke, Wanda, and many state-owned enterprises when you are engaged in real estate. In the agricultural material market, there are several companies across the country that dare to say that they are more powerful than Huinong. Advantages? We can support the market on our own! If we don’t plan to go to any agricultural materials market, they can’t afford this market!” Li Lei has this confidence, Huinong’s chemical fertilizers, feed, animal seedlings, Veterinary drugs, agricultural machinery, seeds and many other agricultural products are the best in the country. No matter which company wants to do a professional market for agricultural materials, it cannot do without the products of Huinong.

"We can also combine the agricultural materials market with the logistics and storage center, and arrange the two at close distances. Whoever professionally approves the goods in our agricultural materials market, the fleet can send them there immediately! Other brands that have settled in You can store the products in our warehouse! Thus forming mutual benefits!” Li Lei continued to outline the blueprint for them.

Both warehousing logistics and professional markets can be placed in the suburbs. The price of land acquisition is very cheap, and the construction is not difficult. Even if Huinong can do it, it does not need to cost too much, but once it is completed, it is not easy to help Huinong. Calculated by economic value.

First of all, we can establish a relatively complete sales network for our own products, so that real users can directly buy Huinong's chemical fertilizers, feed, animal seedlings, veterinary drugs, agricultural machinery, seeds and other products, so that they will not be deceived by fake and shoddy products.

At the same time, it can also use its control over the professional market to strengthen its influence on the domestic agricultural assets industry and eliminate those fake and shoddy brands as soon as possible.

And reduce the intermediate circulation links of agricultural materials products. The original agricultural materials products are multi-level sales models from the whole country to provinces, provinces to cities, cities to counties, counties to towns. In the end, the price in the hands of ordinary people is much higher than the ex-factory price; after the establishment of a national professional market sales network for agricultural materials, multiple intermediate links can be cut, and wholesalers in the county can go directly to nearby professional markets if they want more goods The cost of buying and getting the goods will naturally be lower than before.

Everyone discussed and finally approved the plan proposed by Li Lei, and then began to proceed in two steps. The first step was to contact Vanke or other brand developers, and work with them to develop the existing land of Huinong, and then to develop the existing land in several key cities. Find suitable plots to develop professional agricultural materials market.

Due to his outstanding performance in the previous construction of the warehousing and logistics system and his familiarity with the situation across the country, Dongzi was promoted and began to be responsible for the preparation of the agricultural materials professional market project.

Considering the layout of the national agricultural industry, Dongzi chose Northeast China as the construction site of Huinong's first professional agricultural materials market among several alternative locations. This is the most important agricultural production area in the country, and the degree of agricultural modernization is relatively high. , there is a large demand for various agricultural materials products, so it is more appropriate to build a pilot market for agricultural materials here.

After some preparations, Dongzi reported the plan, and Li Lei decided to go to the scene to see it himself, so he arrived at the scene accompanied by Dongzi and many local leaders, and began to listen to Dongzi's plan report.

(End of this chapter)