Chapter 404: Operation Yuan

The birth of the first 1.75 million yuan jatropha biodiesel contract has far-reaching impact.

This symbolizes that the entire industrial chain has been opened up for the first time, achieving an industrial closed loop from breeding to the final sales of refined oil products.

And when the media reported that the first transport ship in the Beibu Gulf that used wood-blended diesel had achieved a suitable balance between economy and power performance, the matter was completely settled.

The price of biodiesel is low, but the refined oil market is very sensitive to prices.

Good economic and dynamic performance means high cost performance and broad market prospects.

The three oil companies have once again gained motivation to develop biodiesel and are trying to restart bioenergy forests.

But no matter what, there is one point that cannot be avoided: Jiahe’s leprosy tree variety.

Even if it is possible to obtain seedlings through grafting, cuttings, etc., there is no guarantee and it will offend Jiahe and they will not get technical support.

Secondly, this is not in line with the identity of the three major oil companies.

So under the leadership of the National Energy Administration, everyone sat together to discuss it.

The National Energy Administration formulates and issues industrial policies, standards and development plans. For example, it stipulates that a certain proportion of biodiesel must be added to petrochemical diesel, which is also the mainstream practice in Europe and the United States.
The three oil companies have contributed money and manpower to build refineries, increase blending facilities, adjust blending operation inputs, and actively develop the biodiesel market;
Jiahe focuses on breeding, seedlings, planting, and processing equipment, while taking into account refining, processing, and sales. Currently, some equipment is still imported from Germany, and can also be produced domestically, but the technology is not as good as others' decades of accumulation, and independent research and development needs to be strengthened.

This negotiation was also a long process.

Guo Yang attended twice and then handed the matter over to Fang Xiaozhang, Ning Xiaojing, Tang Weihua and others, while he prepared to return to the northwest.

However, before setting off, I received another call from Fujian Province.

Fang Xiaozhang and others couldn't leave, so Guo Yang had to change direction.

Jiahe also has a 100,000-acre leprosy tree base in Changtai, Zhangzhou, Fujian Province. The construction time of the base was slightly later than that of Baise, but in fact, it can also try to produce fruit this year.

But Tang Weihua, head of Jiahe Biochemical Planting Department, believes that Baise is enough for trial production.

It is more important for the Zhangzhou Changtai base to make the leprosy trees grow strong, so that they can bear fruit next year.

When Guo Yang arrived at the Changtai base, the trees here were not burdened by fruits and their vigor was indeed better than that of Baise.

However, his trip to the base was just a side trip, and his main purpose was to meet people.

In the office of Zhangzhou company, Guo Yang waited for Ye Huodong, chairman of Longyan Excellence New Energy Co., Ltd.

This person contacted Jiahe through his connections in Fujian Province.

It just so happened that Guo Yang felt the name was familiar. After learning about its main business, he recalled who this person was.

Zhuoyue New Energy, a company that will be listed on the Science and Technology Innovation Board of the A-share market in the future, will mainly engage in biodiesel business.

It is the first company in China to produce biodiesel from waste oils, and its annual production capacity is one of the highest in the country, reaching 10 tons.

In the future, it will continue to be the largest exporter of biodiesel in China for many years.

However, Excellence New Energy is currently listed in London.

"Mr. Ye, please."

Guo Yang, who was sitting on the sofa making tea, heard the sound outside the door, stood up, and then saw two people walk in.

The man who led Ye Huodong into the door was a slender man with a slightly protruding jaw. He was Ping Yupeng, the general manager of the Changtai base.

Next to Ping Yupeng was Ye Huodong, who was not tall, had small eyes and short eyebrows. He was 38 years old and full of energy.

"Hello, Mr. Guo. I have heard a lot about you."

"Hello." Guo Yang said calmly, pouring tea for him, "Please sit down and drink some tea to see if you can get used to Jiahe's red hemp tea."

There are many people in Fujian Province who are tea lovers, and Ye Huodong is no exception.

"Great! Generally, the pesticide residues in local tea gardens are too high, but there are also local tea gardens that are using Jiahe's natural enemy insect package, which is specially supplied to the high-end market."

Tea in Fujian Province is a hard-hit area for pesticide use, and the island country's positive list system has also had an impact on its tea production.

However, the domestic economy is booming and the tea market is also growing.

Tea merchants in Fujian Province have also put more energy into developing the domestic market. Pesticide residues have improved, but not completely.

So what Ye Huodong said was true. At his level, he would not drink ordinary tea except the tea produced in specific tea gardens.

After a few words of praise, Ye Huodong picked up the teacup, drank it all in one gulp, and his eyes lit up instantly.

“Good tea!”

Ye Huodong savored it for a moment, "But the taste is quite different from that of ordinary tea."

Guo Yang smiled and said, "Strictly speaking, hemp tea can only be regarded as a health tea. It does not contain tea polyphenols, but more nutritious ingredients such as hyperoside."

Ping Yupeng, who also sat down and drank a cup of tea, said with satisfaction: "I can't live without ramie tea now."

"It seems I have to change my words in the future." Ye Huodong said with a smile. Seeing that the atmosphere was almost set, he turned to the main topic.

"Mr. Guo, this visit is mainly for the production of biodiesel."

Ye Huodong sat up straight, "Jiahe's success in Guangxi Province has greatly boosted the morale of the industry."

Guo Yang filled his tea cup again and motioned for him to continue.

Ye Huodong: "Excellence is also willing to contribute to the development of the industry."

Guo Yang said: "If Excellence wants to build a planting base, Jiahe will definitely support it with all its strength. We can supply seedlings, planting technology and equipment to Excellence."

Ye Huodong paused and said, "Zhuoyue has no intention of building a plantation yet."

"What does Excellence want?"

"Can we purchase raw materials from Jiahe's plantation?" Ye Huodong glanced at Ping Yupeng. Guo Yang noticed it and chuckled twice.

"Mr. Ye is indeed a Fujian businessman. It's a nice idea, but it's impossible. Everyone is short of raw materials now."

Being rejected was not unexpected for Ye Huodong, as he was born in a peaceful rural area of ​​Zhangzhou and grew up in a poor family.

After dropping out of high school at the age of 17, he went out to make a living, started from scratch and moved into the chemical industry from oils and fats. He built up this huge business and is one of the richest people in Zhangzhou.

For the biodiesel industry, the biggest pressure comes from raw material costs, especially the purchase of waste cooking oil.

After thinking about it, Ye Huodong stopped beating around the bush and said, "Excellent New Energy wants to crack down on the illegal purchase of waste cooking oil, and we need Jiahe's help!"

"Jiahe Grain and Oil?!" Guo Yang raised his eyebrows.

"Yes!" Ye Huodong's voice became louder. "Mr. Guo must know better than me the damage that the waste cooking oil will cause to the grain and oil market.

In the past two years, due to the continuous price war of Jiahe Grain and Oil, coupled with the recovery of the biodiesel market, the purchase price of gutter oil on the black market has lost its advantage, which is conducive to Zhuoyue's purchase of gutter oil raw materials. I would like to thank Jiahe again for this."

Guo Yang waved his hand. He was already interested. "Mr. Ye, please continue."

Ye Huodong took a sip of tea and said thoughtfully: "The huge profits are one of the most important reasons why waste cooking oil is repeatedly banned.

For waste oil processors, the cost of cooking waste oil is about 4000 yuan per ton, and each ton can be processed into 0.8 tons of edible oil, with a processing cost of only 300 yuan. The original average price of edible oil on the market was more than 7000 yuan per ton, and the profit of waste oil processing was more than 1000 yuan per ton.

Since Jiahe launched a price war, the market price of edible oil has remained at around 6000 yuan per ton, and the profit from waste oil processing has dropped sharply.

At the same time, the diesel market has recovered, and companies such as Excellence have the ability to raise prices to purchase raw materials, thus reversing the downward trend in the competition with black market dealers!

But that’s not enough! The black market dealers still have a profit margin of several hundred yuan!”

Guo Yang thought for a while before asking, "What do you need Jiahe to do?"

"The changes in raw material procurement in the past two years have made me realize a truth." Ye Huodong's eyes were shining.

"To combat the return of gutter oil to dining tables, the best way is not to strictly enforce it, nor to defend it, but to strike from a higher level!"

"Are you saying that Jiahe Grain and Oil will maintain the price war or continue to lower prices?" Guo Yang raised his eyebrows, thinking.
"In fact, once diesel prices gradually rise, we can also gradually build up our advantages in purchasing raw materials."

"Lowering the price of cooking oil is not a long-term solution, and I don't have the ability to convince Jiahe." Ye Huodong smiled, "It will take a long time for diesel prices to rise, and maybe by then the price of cooking oil will have risen as well."

Guo Yang poured the tea slowly and leisurely.

"My idea is to continue to unlock the profitability of biodiesel," Ye said.

Guo Yang's eyes flickered, as if he had thought of something, "Are you talking about consumption tax?"

"Correct!"

Ye Huodong praised: "Mr. Guo is really amazing, he understands everything at once!
If biodiesel can be exempted from consumption tax, at the current price and tax rate, it will release a profit margin of at least 800 to 900 yuan.

This is good for both Excellence and Golden Harvest.

Jiahe can give a higher purchase price to leprosy tree and Xanthoceras sorbifolia growers, driving a second acceleration in industrial development.

Excellence can also increase the purchase price of waste cooking oil to establish a stable raw material channel.

At the same time, it also cracked down on the return of gutter oil to the dining table, which not only protected the rights and interests of consumers, but also was beneficial to Jiahe's development in the edible oil market.

This will kill many birds with one stone!"

Guo Yang slowly leaned back on the sofa.

Although we know that Ye Huodong is pursuing higher profits, he is a greedy businessman. Whether it is listing in London or entering the Science and Technology Innovation Board in the future, it is all for the purpose of reaping wealth. The equity of Zhuoyue New Energy is also highly concentrated in Ye Huodong's hands.

But what he just said really touched Guo Yang.

This will benefit Jiahe far more than Excellence New Energy.

Guo Yang rested his fingers on the sofa and thought for a while before saying, "Exemption of consumption tax on biodiesel. I, the three oil companies and the higher-ups have mentioned this before."

Ye Huodong said: "If we follow the normal procedure, I don't know how long it will take."

Guo Yang chuckled, "Is there any abnormal procedure?"

"Can we talk here?" Ye Huodong looked at the people in the office. Besides the two of them, Ping Yupeng and Luo Xiu were there.

Luo Xiu stood up and said, "I'll go check outside the door."

Ping Yupeng: "I'll go get some fresh air too."

"No, just close the door." Guo Yang stopped the two of them, "Boss Ye, you can say it now, Jiahe will not do anything illegal."

"It's not illegal, it just needs some catalyst." Ye Huodong shook his head, and after Luo Xiu closed the door, he said, "The last time the return of waste oil caused a sensation was six years ago, and society has somewhat forgotten about it.

But I know that these rats in the sewers have always been there. It is hard to say how effective the strict prevention and control measures in various places are. It is also possible that they are in collusion with each other.

In this case, why not lure the snake out of its hole and then make it public.

With internal push and external pressure, this thing is likely to succeed.”

Guo Yang fell into deep thought again. After a while, he said, "I think Mr. Ye has been planning this for a long time. Let Zhuoyue handle the external affairs and Jiahe handle the internal affairs. How about that?"

Ye Huodong frowned.

Guo Yang added: "Of course, Jiahe is not doing nothing. Jiahe's price war on grain and oil can be temporarily cancelled to lure out the snake; Huinong.com, Weilai Weibo, and even NetEase and Penguin's publicity channels will also cooperate at that time.

But the specific external matters need to be completed by Excellence, and only Excellence is familiar with the underground chain of gutter oil and can deliver a fatal blow! "

"Okay!" This time Ye Huodong agreed without hesitation.

Exempting consumption tax will increase profit margins, and cracking down on underground chains will expand raw materials and increase production capacity, which are all great benefits to Zhuoyue New Energy at the moment.

As for the jatropha fruit as raw material, Excellence is also very interested.

However, existing technologies and equipment are focused on waste oil processing, and turning to it now would not be worth the effort.

Moreover, the two most critical links of dimensionality reduction attack, luring the snake out of its hole and exempting consumption tax, were basically promoted by Jiahe.

He only needs to focus on the gutter oil segment, which is what he is best at.

After fighting against the black market dealers of gutter oil for so many years, Ye Huodong is all too familiar with the intrigues involved.

Even with his eyes closed, he knew when this group of people would come out!
Guo Yang and Ye Huodong communicated for a while. The two parties only had a verbal agreement, but their interests were consistent and the possibility of successful cooperation was extremely high.

How effective it will be depends on the tacit understanding between both parties.

Therefore, some time nodes are more important, but they can only be determined roughly, and the specific time to take action can only be based on feeling.

Finally, the cooperation was codenamed 'Nine Hundred Yuan', implying the current consumption tax amount.

All these discussions did not avoid Ping Yupeng, which made him feel very uneasy and as if he was sitting on pins and needles. He could neither sit nor leave.

After the two of them finished their discussion, they felt relieved.

"Boss Ye, please don't contact me until the matter is settled." Guo Yang said as he said goodbye to Ye, "Put aside the cooperation with Energy Forest.

If this can be accomplished within a year, Jiahe will be able to make up for its excellence in jatropha fruit raw materials in the future.”

"Okay!" Ye Huodong also understood. "As long as you say this, Zhuoyue will definitely make this matter a big deal!"

Looking at Ye Dongdong's figure walking away like a dragon and a tiger, Luo Xiu said, "Boss, your skill in controlling people's hearts is getting better and better."

Guo Yang smiled and said, "Ye Huodong is just pretending to do this for me. Do you believe it or not, he is already calling for reinforcements in the car right now?"

Luo Xiu was stunned.

Guo Yang pulled Ping Yupeng again, "Let's go back and continue drinking tea. Planting can't be too rigid. Sometimes, you have to be flexible. Do you understand?"

Ping Yupeng, who is also in his early 30s, nodded like a chicken pecking at rice, "I understand. I won't say anything nonsense."

Guo Yang: “…”

In the car.

Ye Huodong stared at a number in his cell phone address book: Gushan Group - Yu Jianqiu.

Yu Jianqiu is from Fuqing, Fujian Province, but the first biodiesel factory he founded was in Santai, Mianyang, Sichuan Province. He currently has bases in West China, East China, and Southeast China.

Gushan Group is also the largest biodiesel production capacity in China, with an annual output of 17 tons. It was listed on the New York Stock Exchange two years ago.

Yu Jianqiu was once ranked 128th on the Hurun Rich List.

However, when financial fraud was discovered, the mystery of the Gushan Group was revealed.

In the financial report, Gushan purchased the gutter oil at a price of 2390 yuan/ton, but the actual purchase price was 4200 yuan/ton, which injected a huge amount of water into the financial report!
The recent situation of Gushan Group is not good. Not only has its stock price fallen, but its operations have long been in actual losses.

Moreover, the source of Yu Jianqiu's first pot of gold has always been a mystery. He himself released the news that he sold a gas station in his hometown to Sinopec for 400 million.

Although they are both from Fujian Province and in the same industry, Ye Huodong has never believed this statement.

There must be something fishy going on. Why would they go to Santai, which has nothing to do with the company, to build a factory in the first place?

After sorting out his thoughts, Ye Huodong finally made the call.

"Old Yu, there is a way to save the ancient fir, do you want it?"

...

It was a bit chilly in the south in early November, and people in the north had already put on winter clothes.

However, the edible oil market seemed to have welcomed spring after a long drought.

"According to the national agricultural and sideline products and agricultural materials price information system, compared with the previous day, edible oil prices have risen across the board. Among them, soybean blended oil and pure peanut oil have risen for nine consecutive days."

“The price of first-grade soybean oil has risen from 10 yuan/ton in October to 6000 yuan/ton today, an increase of 7300%;

The price of first-grade peanut oil has increased by 11200% from 15700 yuan/ton to 40.17 yuan/ton.

The price of first-grade corn oil has increased by 6100% from 7500 yuan/ton to 23 yuan/ton now.”

"Shi Kerong, chairman of Huifu Grain and Oil, told China Business News that edible oil processing companies are now booming. Previously, the operating rate of companies was only 20% to 30%, but now it has risen to 70%!"

This is the largest and most drastic wave of edible oil price increases in the past two years!

Investigating the reason, Shi Kerong bluntly stated that after a long period of price war and full-scale production, Jiahe Grain and Oil could no longer sustain such a huge loss!

Shi Kerong's excitement was beyond words in front of the media.

However, some people survived the cold winter, while others collapsed completely.

Pengcheng Zhizhiyuan Guo Bochun was extremely sad and angry, "It's been two whole years. Do you know how Zhizhiyuan got through these two years?"

"The operating rate is zero!"

"Opening the factory means losses, and the factory can't sell anything. Zhi Zhiyuan is being dragged to death!"

"What does the current price increase have to do with Zhizhiyuan?"

"I'm so happy!"

"Jiahe Grain & Oil has abandoned its established price war strategy, which means that its financial situation can no longer hold up. I am happy to see it reaping the fruits of its own labor!"

Large grain and oil companies such as Fortune, Wilmar International, Huifu, Xiwang, and Luhua are busy raising prices.

Some small workshops also happily opened their long-closed doors and machines and resumed work and production.

But oil and fat companies of the same size as Zhizhiyuan are in tears.

The industry has ushered in spring.

But it has nothing to do with them anymore.

Guo Yang, who was still working at the Jiahe Grain and Oil Mayong Factory, also heard Gao De express deep regret.

"such a pity!"

"If it drags on for another year or two, Huifu Grain and Oil will be dead."

"If you can't drag it to death, it's like a centipede that dies but remains stiff." Guo Yang pondered, "Huifu's real estate projects are very profitable, but now its grain and oil business has been crippled. It's not easy to get back the lost market."

Guo Yang looked at Gao De and said, "Don't you think so?"

"Of course." Gao De raised his eyebrows. "Jiahe Grain and Oil's current market share is not low, and users also recognize it."

“Now we have to compete on quality control.”

Guo Yang emphasized the word "quality control" with a meaningful look in his eyes. "Next, when promoting small-package oil, we must focus on quality."

After saying that, Guo Yang picked up his phone and chatted with Lin Keqing, occasionally checking Weibo. The popularity of Double Eleven had also risen due to large-scale publicity.

Gao De was stunned for a moment, then seemed to realize something.

The sudden cancellation of the price war caught him off guard.

But the boss has spoken, so just do it.

Now it seems that there are reasons that he is not aware of. He ponders the word "quality control" and has some ideas in mind.

The edible oil product matrix includes low-end, mid-end and high-end products, but high-end brands still need to be promoted more.

It just so happens that there is a bumper harvest of sunflowers this year, so the Nutrition and Health Research Institute can urge them to produce more.

There is also a half-price promotion on Double Eleven, and with the price of edible oil rising sharply, you can also go all out with your promotion.

...

The next day, Guo Yang returned to Lan City.

In the past few days, in addition to strengthening communication with the three oil companies, the Ministry of Agriculture, and the Energy Bureau, he is also thinking about how to promote the exemption of consumption tax from within the administration.

The relationships at the upper levels were also communicated.

The matter is explained very clearly. The core points are two: first, it is conducive to the accelerated development of bioenergy forests and alleviates energy pressure.

Second, crack down on the return of waste cooking oil to dining tables.

Given the potential of bioenergy forests today, higher-ups are certainly motivated to push this forward.

But as Ye Huodong said, this may take three to five years, or even longer to come to fruition.

So external pressure is needed.

It is a headache to think from a national perspective, but if you take a step back and return to Long Province, you will suddenly feel that the world is vast and the sea is big.

Is there any waste cooking oil returning to dining tables in the province?
Looking at the bustling cities on both sides of the Yellow River, it is obvious that this situation is inevitable.

But in Lan City, in Long Province, even if you are a dragon, you have to coil around me!

As night fell, the Zhengning Road Night Market was brightly lit. Guo Yang got out of the car wearing a baseball cap and felt a chill on his face.

I shivered from the cold.

Lin Keqing and Li Hui were standing on the street of the night market and waving at this side, and Guo Yang waved back.

"Why did you choose this place again?"

Yu Qin on the side said: "It's pretty good. Everyone has always liked to come to the night market here to drink beer and eat barbecue."

Guo Yang and Yu Qinhe walked across the street, "I think this fly restaurant might not be very hygienic."

"That shouldn't be the case. There are many tourists here." Yu Qin said, "Boss, are you worried that it will affect the discussion?"

"Maybe." Guo Yang did not deny it.

In Lanzhou, Zhengning Road Night Market is labeled by many food lovers as the "most lively, most delicious and most distinctive" food street.

However, when Guo Yang thought of gutter oil, he no longer felt so happy.

(End of this chapter)