Agricultural giant since 1983

Chapter 453 Foreign Capital Invasion
This incident is of great historical significance, because it can be said to be the first VAM case since China’s reform and opening up. The two parties signing the VAM agreement are Niu Gensheng’s MN and the well-known Morgan Stanley, CDH Investments, and Actis Investments. investment group.

At this time, the competition in the domestic dairy market is becoming more and more fierce. Niu Gensheng needs a lot of funds for marketing and promotion, but domestic investors believe that the current domestic dairy industry is already a red ocean, so no one invested in him when he wanted to raise funds; but Morgan Stanley International funds such as Danley believe that there will be a market in the consumer industry in the future, because the amount of milk that Chinese people drink is far from saturated.

Last year, my country's total milk production and milk output just exceeded 1000 million tons, and the per capita milk consumption was only 7.2 kg, while the world average was 92 kg, 277 kg in developed countries, and 40 kg in developing countries. Obviously, there is a lot of room for improvement, so investing in China's dairy industry at this time has a very promising profit prospect.

The facts are indeed true. China's total milk production soon exceeded 2004 million tons in 2000 and 2006 million tons in 3000. In the following years, it almost doubled in two years. Such a high growth rate made Morgan Stanley, CDH Investments and Actis Investments made a lot of money.

But there is a problem. When the industry is developing and growing, not every company can make money. They are indeed optimistic about the future development prospects of China's dairy industry, but they still have doubts about whether Niu Gensheng can lead Mengniu out of the encirclement. The instinct to avoid disadvantages, so Morgan Stanley proposed a plan for a gambling agreement.

The specific content is: during the three-year period from 2003 to 2006, the compound annual growth rate of Mengniu Dairy is not less than 50%. For the goal, institutions such as Morgan Stanley will reward Niu Gensheng and his team with 7830 million shares.

After some consideration, Niu Gensheng agreed. Firstly, they are really short of investment. Apart from Morgan Stanley and other three institutions, there is no other better choice; secondly, he is also very confident in his ability and feels that he You must be able to complete the goals stipulated in the gambling agreement, and get rewards from institutions such as Morgan Stanley; you can get urgently needed funds and additional shares, so why not sign it?

For the three institutions such as Morgan Stanley, if they succeed, even though they lose part of their equity and stocks, they are also happy to see the success, because when he invests now, the value of MN is not high, and when the agreement is fulfilled, Although their shareholding ratio has become lower, the total market value of MN has risen, and they can still make a lot of money, and their risks have also been reduced a lot in the process.

As a result, Niu Gensheng, who was full of confidence, signed a gambling agreement with Morgan Stanley, CDH Investment, and Actis Investment, and obtained the funds that MN urgently needed for the development of MN from them.

According to the original historical trajectory, Niu Gensheng won the bet this time. A few years later, they realized the terms agreed in the betting agreement, and got the agreed rewards from Morgan Stanley and other institutions. Niu Gensheng and his team's wealth instantly skyrocketed , although Morgan Stanley has paid rewards, they can still get huge profits from the skyrocketing market value of MN. Their return on investment has exceeded four times. This time the bet can be described as a win-win situation.

With such a successful case, many investors will also sign similar gambling agreements with start-up companies when they invest in the future. CDH Investment has tasted the sweetness of MN, and they want to continue to repeat such success. This time they found this At that time, South Beauty was on fire in the catering industry. South Beauty had just become a Chinese food provider for the BJ Olympics.

Zhang Lan, the head of South Beauty, also thinks so, but the current scale is not enough to go public, and capital must be introduced to expand rapidly. CDH is also optimistic about their prospects, so they put forward their own investment plan. CDH invested two times in South Beauty. 4 million, the bet is that South Beauty will be listed in the next four years. If it succeeds, then CDH will withdraw at a profit; And if Zhang Lan can't afford so much money, then CDH can sell Zhang Lan's shares to cash out.

This agreement is definitely unfair, because CDH does not take any risks. South Beauty successfully listed CDH and made a lot of money. If South Beauty did not go public, CDH would still be able to make back its capital, and the annualized rate of return of 20% is not considered. Low; Zhang Lan also could not find other sources of investment, and she was also full of confidence in her company, so she signed this unfair investment agreement.

It's a pity that she was not as lucky as Niu Gensheng, and immediately encountered a big storm in the catering industry. South Beauty's financial report could not meet the listing requirements. They first submitted an application for listing on the A-share market, but the listing application was quickly terminated. At this time With 8 months left before the VAM agreement expired, Zhang Lan rushed to Xiangjiang to go public again. Unexpectedly, the stock market crashed again, and the two listings failed, thus triggering the repurchase agreement of the VAM agreement.

Coupled with the financial crisis in recent years, South Beauty could not afford so much money to repay CDH, so it triggered the additional terms of "drafting rights and liquidation priority". At this time, CDH found a European private equity big brother CVC , Acquired 3% of the shares held by Dinghui and Zhang Lan at a price of US$82.7 million, and finally Zhang Lan left sadly.

The more intuitive impact on ordinary people is probably the gambling agreement of the film and television industry. The most famous one is the gambling agreement signed by Da Mi Mi. Mijiaxing Media must achieve 3% of the after-tax net profit target within three years from 2015 to 2017, and the converted profit is 95 million.

In other words, Jiaxing Media must earn a net profit of 3 million yuan after tax within 3.1 years to achieve the goal; if not, Jiaxing will pay Shangshi Pictures 3 million yuan and 15% interest.

In order to earn this profit, Da Mi Mi started filming crazily. He has filmed [-] works in three years. There will definitely be dramas in such a hurry. Naturally, the quality of the film can't be said. Consecutively winning the titles of the Most Disappointing Actress in the Golden Broom Awards and the Most Scumbag Actress in the Douban Douban Unit, the goodwill in the hearts of the audience has been exhausted.

Despite being so daring, Da Mimi still almost failed to complete the gambling agreement. What good box office can a work that hastily rushed out have?Until 2017, Jiaxing only got a profit of 2 million yuan, which was far from the stipulations of the gambling agreement. Fortunately, she was lucky, and at a critical moment, "Three Lives Three Worlds Ten Miles of Peach Blossoms" hit the box office and exceeded the quota. With the signing of the gambling agreement, Da Mi Mi also achieved a magnificent turn, from an ordinary star to a capital of the entertainment industry.

After receiving the news, COFCO immediately invited Li Lei to come over for a meeting. In recent years, Wanda Mountain has developed very rapidly. With the help of CCTV’s two major sponsors, the sponsorship of the Chinese men’s football team, and the high quality of the products, it has achieved rapid expansion. Now the sales performance in China has almost caught up with YL. As for brands such as Guangming, Sanlu and Sanyuan, they have long been left behind by Wandashan.

The current situation of the domestic dairy industry is basically like this. YL still occupies the top spot with its old foundation, but the amount ahead of Wandashan is very small, and there is a risk of being kicked off the No. Retired to the third place, but under the leadership of Wang Jiafen, the development speed is still very fast, and the gap with the previous two companies is not big, and the stock price can reach the top with a slight change. These three companies form the first army.

After that, there are Sanlu, Sanyuan, MN and other enterprises. The development momentum of these enterprises is also very fast, especially MN. Since Niu Gensheng started his business, they have entered more than one similar enterprise every day on average, and completed three years in just a few years. Deer, Sanyuan and other enterprises have been on the road for decades, and their sales have increased by hundreds of times. At the same time, although Liu Yonghao’s New Hope Dairy has not made much progress, it has steadily occupied a large share in the Southwest market. These enterprises can be regarded as For the Second Legion.

Next are regional brands such as Jule, Maiquer, Yinqiao, and Changfu. These brands rely on good quality and word of mouth to have a large share in the local area, but it is not realistic to expand externally. Their There is no way to compare with the above companies in terms of financial strength and technical level.

Originally HLJ's Feihe also belonged to this type of company, but now they have been acquired by Wandashan. Wandashan's expansion means are not limited to building factories and expanding milk sources, but also continuously acquiring various For a small dairy company with good strength, the successful acquisition of Feihe is an important victory. In the future, Wandashan will acquire more dairy companies. For example, Changfu Dairy has always been at the forefront of the priority acquisition list. This company attaches importance to milk source strategy The layout is in line with Li Lei's appetite. If the acquisition is successful, Li Lei is willing to keep the management team. They are the ones who really want to do a good job in the dairy industry.

As for the rest of the companies, there is no need to mention them. They are all small-scale companies. In the past, they could make a little money by relying on local advantages. However, with the development of the times, milk transportation has become more and more convenient, and the cost of large companies has become more and more expensive. The lower the price, the less competitive their products are. As long as big companies enter their market, they will be crushed by the wheels of history like praying mantises.

Although the development speed of Wandashan is so fast, compared with MN, it is still a little slow. Of course, there are also reasons why MN started much lower than Wandashan, but Wandashan still regards MN, YL, and Guangming as Competitors at the same level, now one of the most important competitors suddenly received a large investment, then the future competition in the dairy market will definitely be more brutal, and under such circumstances, a meeting must be held to discuss countermeasures.

"The compound annual growth rate is not less than 50%. Niu Gensheng really dares to sign such a condition!" At the meeting, COFCO's President Gao was also amazed at Niu Gensheng's decisiveness.

"Using Niu Gensheng's means, it is not impossible to achieve this goal. Fortunately, Li Dong proposed to win the bid king and signed a sponsorship and endorsement contract with the National Football Team. Otherwise, in terms of marketing, we would I was beaten by Niu Gensheng!" With the increasingly fierce competition in the dairy industry, Wang Desheng, the current head of Wandashan, feels that he can no longer keep up.

Now he has the idea of ​​quitting, and he has also talked to Li Lei specifically about this matter, but he still can't find a suitable replacement. In addition, although Wang Desheng doesn't have a good view of the overall situation, he is indeed meticulous in execution, so Li Lei still let him continue to serve as the person in charge of Wanda Mountain. As for the strategic development direction, he can only worry about it himself.

Li Lei also thought of Wang Jiafen, the head of Guangming. Although the development of Guangming is good now, there are internal problems. In 2000, Guangming carried out restructuring in order to seek listing, and introduced Danone from France. Danone became a 5% shareholder of Bright Dairy. shareholder.

However, as an international giant, Danone is definitely not satisfied with just being a small shareholder. Danone hopes to control Bright Dairy through the power of capital, and then try to dominate the Chinese dairy market. Bright has launched a fierce confrontation around the equity, which also slowed down the development of Bright to some extent, and Wang Jiafen was also extremely troubled by this matter.

A few years later, Danone gave up Guangming and cooperated with MN instead, and Wang Jiafen also left Guangming not long after. Maybe we can find a way to intensify the dispute between Guangming and Danone, and intensify their conflicts. Maybe Wang Jiafen will leave Guangming early. At that time, Wandashan didn't have to worry about the question of the master.

Shaking his head and putting aside his scattered thoughts, he continued to listen to the discussion of the shareholders of Dashan. The matter of Wang Jiafen is still early. The most important thing now is how to solve the new offensive that MN will inevitably launch. Niu Gensheng is really powerful , although everyone thinks that the compound annual growth rate of not less than 50% is too harsh, but most of them think that if it is Niu Gensheng, it may not be impossible.

"Niu Gensheng's biggest problem before was the lack of funds. They had to spend a lot of money on marketing and promotion every year. If they were not careful, the capital chain would be in danger of breaking; but now with the US$6000 million provided by Morgan Stanley, not only If we can make up for this shortcoming and carry out larger-scale promotion, with Niu Gensheng's means, who knows what tricks he can play, we have to guard against it!"

"Next year, they will definitely compete for the bid king. Giving it to Mengniu is to increase competitors for ourselves. Don't let it go. We have been in the competition for two years, and it is not worthwhile to compete for the bid king!" For two consecutive years The investment has spread the name of Wanda Mountain all over the country, and more money is spent on continuing to invest, but the effect is definitely not as good as before.

Li Lei listened carefully, and found that everyone focused on marketing and promotion, and wanted to compete with MN in this field, so he couldn't help but patted the table, "Don't you realize that we What is the biggest advantage of Wanda Mountain?"

(End of this chapter)