Chapter 770 Tunhe Group
After going public, the Tunhe Cement Plant, although not very profitable, was still profitable.
Although the leeks looked down on it, in the eyes of capital, it was a very good net shell.
Therefore, they were favored by Delong, who was doing well in the capital industry and making a lot of money.
In October 1993, Delong acquired part of the collective shares of the Tunhe Cement Plant and entered Tunhe as the fourth largest shareholder.
Delong's appetite was certainly not satisfied with being just a small shareholder.
Soon, it continued to acquire and became the major shareholder of Tunhe in a step-by-step manner.
After obtaining the controlling rights, Delong, with its strong capital, launched mergers and acquisitions without stopping.
Tunhe Shares, Tunhe Industry and Trade, and Tunhe Agriculture and Animal Husbandry were successively acquired by Delong.
On the basis of these enterprises, Tunhe Group was established.
It should be emphasized here that the main business of Tunhe Group was cement at the beginning.
Since 1996, it has continuously increased Tunhe's cement production through mergers and acquisitions, technical reforms, etc.
By the end of the 1990s, it had become the second largest cement giant in the Western Region with a cement output of over one million tons.
As the saying goes, there can't be two tigers in one mountain, unless one is male and the other is female.
This sentence is also very accurate in the cement industry in the Western Region.
In addition to Tunhe, there is also the largest cement giant in the Western Region, 'Tianshan Co., Ltd.'.
But the output of the two is not much different.
So in the late 1990s, the two giants loved and killed each other. You lowered the price to ship, and I also lowered the price.
You acquire and I acquire.
Both want to kill the other and become the boss.
As a result, the two companies fought exhausted and no one could do anything to the other.
Instead, the third, fourth, and fifth brothers were all killed.
Seeing that things were deadlocked, Delong quickly changed his mind.
Since he couldn't win, he merged.
In March 2000, under Delong's active matchmaking, Tunhe sold its cement business to Tianshan Co., Ltd.
The annual cement output of the two companies after integration exceeded 3 million tons, accounting for 60% of the cement output in the Western Region.
Tianshan Cement Co., Ltd. thus established its position as the third largest cement enterprise in China and the largest in Northwest China.
The huge scale effect allowed Tianshan Cement Co., Ltd. to obtain a net profit of 93 million Chinese yuan that year.
However, the major shareholder of Tianshan Cement Co., Ltd. is not Delong Group, but the original big boss of Tianshan Cement Co., Ltd., Tianshan Building Materials Group.
Tang Wanxin was certainly unwilling to sell his own child.
Therefore, in September 2002, at a cost of 267 million Chinese yuan, he acquired 55.7856 million shares of Tianshan Building Materials Group, the largest shareholder of Tianshan Cement Co., Ltd., accounting for 32.18% of the total share capital.
Not only did he become the largest shareholder of Tianshan Building Materials Group, he also directly controlled Tianshan Cement Co., Ltd., making him one of the "new three stocks" under Delong Group.
Tianshan Building Materials Group and Tianshan Cement Co., Ltd. have also become Delong's aircraft carriers for integrating cement and building materials industries.
Let's talk about Tunhe Group later.
After selling its main business, the cement business, Tunhe Group's main business completely turned to agriculture and animal husbandry.
Relying on the unique natural environment of the Western Regions, it invested hundreds of millions of yuan to develop the red industry with tomato, safflower, carrot, wolfberry and other special fruit and vegetable resources processing as the core.
Through a series of purchases.
In just three or four years, Delong has formed an annual production capacity of 240,000 tons of tomato sauce, 10,000 tons of tomato powder, and 10 tons of lycopene, ranking first in Asia and second in the world.
Products are exported to Europe, the United States, Russia, South Korea, Japan, Southeast Asia and other countries and regions.
In order to open up foreign channels, it also acquired the American tomato sauce seller "Xinrui Company" and the Italian "Gandover Company Sales Company" with more than 20 years of tomato sauce business experience, and successfully entered the international market.
Now, Tunhe tomato sauce has a market share of 75% in the country and 17% in the world.
Although it has become a world-class tomato sauce giant, Tunhe itself does not have much bargaining power.
In 2004, Tunhe's revenue from tomato sauce was only about 900 million yuan.
For the reality that the scale of tomato sauce is not large, Delong still uses the old method, buying and buying.
Acquisition of Emin Food Company, acquisition of Huiyuan Juice, etc.
Of course, Huiyuan was later bought by Xu Liang.
But Delong still insisted on expanding its market in the juice and food industries.
And in Kashgar, Hotan, Aksu and other places, it has established 5 apricot jam processing plants and 200,000 mu of orchards.
As of now, Delong has an annual processing capacity of 100,000 tons of fresh apricots and 18,000 tons of apricot jam.
Tunhe apricot jam, dried apricots, almonds, and canned food are exported to Europe, America, Japan, South Korea, Central and West Asia, Russia and Arab countries along the ketchup sales channels built by Delong.
It accounts for 40% of the international apricot jam market trade volume and is a world-renowned supplier of apricot pulp products.
In addition to ketchup and apricot jam, Tunhe Group is also the largest beet planting and white sugar production enterprise in the country, with 450,000 mu of beet production areas in the Yanqi Basin and Yili region.
It has 9 sugar factories in the Western Regions and Shanxi Province.
The daily processing capacity of beets is 25,000 tons, and it has formed an annual production capacity of 470,000 tons of sugar, 183,000 tons of pelleted meal, and 42,000 tons of edible alcohol.
Sugar production accounts for 80% of the total production in the Western Region and 36% of the national beet sugar production.
Tunhe brand tomato products, Tunhe brand apricot jam, Tunhe brand and Sifang brand sugar, Tunhe brand safflower, jujube, wolfberry, and Yuehuo juice from Tianyi Fruit Industry, a subsidiary of Tunhe, are all brands with a very high market share in the Chinese food market.
It is important to emphasize here.
Because Huiyuan was acquired by Xu Liang very early.
Delong not only received a huge sum of 550 million Chinese yuan, but also reduced debts of nearly 300 million Chinese yuan.
Most of this money was spent on the business expansion of Tunhe Group, especially animal husbandry.
Lu Xun said that money is a man's courage.
This sentence is absolutely correct.
Tang Wanxin, who had a huge sum of money, made a statement in front of the media.
Delong will invest 2.5 billion yuan to develop the vast natural pasture resources in the Western Regions and build three major industrial bases, namely, the northern slope of Tianshan Mountains, the Ili River Valley, and the oasis in southern Xinjiang.
In the end, a large-scale industrial chain with grass, feed, breeding, and breeding, and milk, meat, leather, and medicine will be formed, becoming the leading enterprise of Huaxia Dairy.
Old Tang is a very contradictory person. He has both the sentiments of a simple entrepreneur and the stomach of a cunning businessman.
A businessman brags and brags. After fooling around and getting the money, he will take care of things and run away. He never talks about sentiment, let alone feelings.
But Lao Tang is different. Although he may be fooling people, he is also a real investor.
In 2002, he invested 500 million yuan to establish Tianshan Animal Husbandry. Through expansion and mergers and acquisitions, he established more than a dozen animal husbandry companies in the Western Regions, with 7 dairy processing plants, seven high-yield dairy cow demonstration bases and two fine breed breeding centers.
In just over two years, relying on Delong’s huge political and business relations in the Western Regions, he established more than 240 milk stations and formed a processing capacity of 290 tons of fresh milk per day.
‘Tianshan brand’ milk is the largest milk brand in the northwest.
Lao Tang’s ambition is not only in the dairy industry, he also wants Delong to become a giant in the animal husbandry industry.
So he invested heavily to develop animal husbandry, especially cattle breeding, in the north and south of Tianshan.
Up to now, Tianshan Animal Husbandry is the only national-level frozen semen production enterprise in the Western Regions, one of the leading enterprises in the domestic fine breed breeding industry, and one of the largest cattle breed improvement product and service providers.
The number of various beef cattle raised by Tianshan Animal Husbandry has exceeded 50,000.
Relying on agriculture and animal husbandry, by 2004, Tunhe Group's total assets exceeded 4.5 billion Chinese yuan, and its total revenue exceeded 1.394 billion yuan, but its net profit was only 113 million yuan.
It was far lower than its peers.
The reason for the low profit was also very simple, the management was too rough.
In just four or five years, it acquired and established more than a dozen, or even 20 to 30 companies. These companies simply merged their financial statements, without integrating personnel, unifying logistics, and not systematizing raw material procurement.
The management still followed the original rigid system.
Not to mention the corporate culture.
In this case, how could the company's profits be high?
In particular, cross-industry integration requires higher requirements.
This is also the reason why Hanhua and Hongyan, who clearly had a large amount of working capital in their hands, did not invest all of it in Kelong Supermarket, Huaxia Wine Industry, and Harvest Agriculture.
The integration of companies is a complex and highly skilled job.
If it is not done well, burning money will have the opposite effect.
The only thing that made Xu Liang invest a lot of money was real estate.
Real estate does not require much skill, and if there is more money, you can directly buy land.
There are third parties for construction, supervision, and even for selling houses.
As long as you are willing, you can make money without having to show up.
Of course, the profit is not high, but at least it is a way.
"How many dairy and fruit assets does Tunhe have?"
"Including 21 companies at home and abroad, with a total asset of 1.48 billion." Qiu Mingcheng said.
"Strip out this part of the assets and set up a separate entity. The rest will be merged with Harvest Agriculture."
Qiu Mingcheng nodded, "Mr. Xu, if we integrate, do we still need to inherit Tunhe's listing status?"
Now Harvest Agriculture has completed the integration of the domestic and foreign oil pressing industries.
In the past year, most of the time has been busy integrating dozens of oil factories.
Now the unification of personnel, management and logistics has been basically completed.
The next step is the most critical and important corporate culture construction.
This is a long-term and meticulous job, and the effect will not be seen in the short term.
After the integration, Harvest Agriculture's overall oil crop processing capacity reached 19.17 million tons, and its feed processing capacity reached 12.78 million tons.
Total assets: 36.87 billion Chinese Yuan (half of which is soybean and corn reserves), total liabilities: 17.765 billion Chinese Yuan.
It is the dominant player in the domestic oil pressing and feed fields.
If the two parties merge, Tunhe's stock price will undergo earth-shaking changes.
"Stop trading. The main task of Harvest Agriculture is to integrate Delong's agricultural assets. As for when to resume trading, we'll see what happens."
Qiu Mingcheng nodded.
"How is the construction of the new factory in Qingzhou going?"
In addition to integrating and eliminating backward production capacity, Harvest Agriculture is also actively expanding new production capacity, especially in the agricultural province of Qilu. In August last year, it invested 2 billion Chinese Yuan to build an oil and fat factory in Qingzhou, his hometown, that can process 1.5 million tons of soybeans and corn and 1.2 million tons of feed annually.