In Feng Yu's previous life, Beidacang Group was set up by the Ministry of Agriculture and Land Reclamation. It was also a pilot company for large-scale enterprises in the country. Hua Xia was imitating Japan's large enterprises and felt that large enterprises would be more competitive in the international market. Of course, these pilot companies were all state-owned companies. Later on, the state-owned companies will be the controlling shareholder.
In Feng Yu's previous life, Beidacang Group was a combination of all the units under the Ministry of Agriculture and Land Reclamation. They used the district as the base unit and set up a group company. Every branch of the Ministry of Agriculture and Land Reclamation will set up a branch company to deal with agricultural products.
The government had invested a large amount of funds into this company, but its debt ratio was very high. After the company was listed, the situation improved. Setting up this company had increased the income of the whole district and was considered a success. At least in terms of agricultural products, it was the biggest enterprise in Hua Xia, and it also increased the export of the industry.
But in Feng Yu's previous life, Beidacang Group was set up after 1998. The framework was completed in 2000, and there were many detours. Feng Yu was surprised to set up Beidacang Group in this life.
Was this the so-called historical inertia? Things that had deviated from the original track will always return to normal?
"Who thought of the name of this company?" Feng Yu asked.
Zhang Ruiqiang looked at Secretary Liu, and Secretary Liu replied embarrassedly. "I thought of it, and the leader also thinks it is a good idea. I want our district to be China's biggest granary in the future, and we can get rid of the Great Northern Wilderness label. "
Feng Yu gave a thumbs up. "That's right. We will surely succeed."
After saying this, Feng Yu looked at Zhang Ruiqiang. Zhang Ruiqiang would not call Feng Yu back just to ask him some questions. There must be something else. Could it be that Zhang Ruiqiang wants to cooperate with Tai Hua Agricultural Products Company?
There are pros and cons to cooperating with Tai Hua Agricultural Products Company. Feng Yu needs to consider carefully, especially the person in charge of this company. A good decision maker can help the company avoid risks and earn a lot of profits. A bad decision maker can ruin a large company in an unimaginable short period of time!
Zhang Ruiqiang looked at Feng Yu and didn't speak. He could only continue, "We want to set up a large corporation, just like what you said, a comprehensive development. We also have some good brands. For example, Beidacang Baijiu which has a history of more than 10 years. We also have Bao brand Bean Paste which has a history of more than 10 years. There are also a few milk powder factories which have a history of at least 10 years. Wuchang rice, one of the food products, was specially provided to the emperor in the previous dynasty. There are also some other brands that can be further explored and developed. "
Feng Yu nodded. "And then?"
"Then, we don't have enough funds." Zhang Ruiqiang braced himself and said.
When Zhang Ruiqiang said that they wanted to set up so many industries, Feng Yu had already thought of the funding issue. If he were to specialize in one field, the Provincial Government's funds would definitely be sufficient. However, if they wanted to do so much, and they had to do it on a large scale, they would be short of funds. If it was a complete investment, even 10 billion might not be enough.
What did Beidacang Group do in Feng Yu's previous life? They used the farms as a unit to invest and split the shares among the various units. This was how they became the leading agricultural enterprise in Hua Xia with over 10 billion in assets and over 100 billion in annual turnover.
What was the biggest asset of a farm? The farms, farmers, and produce. That means the farm was self-sufficient in terms of raw materials. This was the biggest asset of Beidacang Group.
If they did not include the farms, it might not even be enough to develop into a company as big as Feng Yu's previous life. Even if they invested enough, the company's development would not be good. The risks were too high, and Feng Yu will not invest in this.
"Don't tell me you want me to invest in this company? You had mentioned so many industries. If you want to set up all of them, even 10 billion might not be enough. Your plan is to increase the competitiveness of the company. But if the scale increases, the investment will also increase. Furthermore, you want to set up so many industries at the same time? The risk is too high, and I will not invest. "Feng Yu shook his head.
Zhang Ruiqiang panicked. "Didn't you tell us that we can do this? Why are you saying that the risk is too high? Are you trying to trick us? "
Secretary Liu also helped Zhang Ruiqiang. "General Manager Feng, this is very important to the leaders. With your relationship with the leaders, this is not a joke. "
Feng Yu laughed. "Why are you all so nervous? I said I will not invest, but that does not mean I cannot help you solve this problem. The solution is right in front of you. "
Zhang Ruiqiang and Secretary Liu looked at each other. The solution was right in front of them. Why can't they see it?
Feng Yu stood up and walked to the opposite wall. He pointed to the map of Longjiang province and waved to them. "Come and take a look. What's the difference between our province and the other provinces?"
Zhang Ruiqiang asked. "Our province has more plains, and the land is more fertile?"
Feng Yu shook his head and looked at Secretary Liu. Secretary Liu looked at the map and hesitated. "Because of history, we have more farms?"
"Correct! The biggest difference between our province and the other provinces is the farms. "
"What's the use of farms? The farms are under dual management, and the main profits are handed over to the higher-ups. There is not much left for the Provincial Government. Even the GDP is not included in the Provincial Government. "Zhang Ruiqiang replied.
"You all want to set up this company is to keep the profits from the farms in the Provincial Government, right? Then I will give you all a good idea. Not only you all can keep most of the profits in the Provincial Government, but the higher-ups will also not object. "Feng Yu said confidently.
Zhang Ruiqiang's eyes opened wide. Was their motive so obvious? But they had already brainstormed and still could not come up with a good idea. How can Feng Yu be so confident that his idea will work?
"What is the biggest value of the farms? Food, farming, and other areas. There is nothing special. The farms are only an exporter of raw materials. You all should know that the profits from the raw materials are not as high as the additional value after the processing. For example, our Tai Hua Premium Cooking Oil mainly uses soybeans, and we had used the cost of the soybeans into the animal feed. Our actual production cost is not high, but our cooking oil is more expensive than the Grain and Oil Factory's soybean oil. But our cooking oil is still selling better. "
"Yeah, we want to do food processing." Zhang Ruiqiang was puzzled. What does Feng Yu mean?
"What you're facing now is that you have the money to build a processing plant, but you don't have the money to buy raw materials, right? As for the people on the farm, after a year of payment, they will sell the rest of their food. They will not be willing to let you take an IOU. They are especially distrustful of the government's promissory notes. "
Although Zhang Ruiqiang didn't want to admit it, this was the truth. Those farmers would rather sign an IOU with a private collector than accept an IOU from the government.
"The solution is simple. Let these farms invest!"
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