Chapter 431 The Rise of Botanical Pesticides
"I think so too." Liu Deshu said with concern: "But the Chemical Group wants to acquire Syngenta."

“So Sinochem is going to participate too?”

"Too much money is needed, and the chemical group does not have the conditions for capital financing. If the acquisition is to be successful, Sinochem must participate."

Guo Yang doesn't remember the specific process of Sinochem's acquisition of Syngenta in the original time and space.

But he knew that this was not a successful merger and acquisition, and he tried every possible means to raise funds.

However, debts must be repaid.

The plan was to repay the debt through corporate profit gains and the company's listing, but unfortunately, neither path was feasible.

After the completion of the merger and acquisition, Syngenta suffered an average annual loss of 70 to 80 billion yuan. How could it repay its debts?
Syngenta's valuation is extremely high, and the purpose of its listing is to raise funds and repay debts. This is naked plunder and a blatant act of "cutting leeks".

Once it goes public, the stock market will inevitably collapse.

Therefore, Syngenta's path to listing was blocked and eventually became a huge burden.

Guo Yang thought for a moment and said, "The acquisition of Syngenta is nothing more than an attempt to improve the domestic agricultural technology level. However, if we move accurately, we will be advanced and pioneers, but if we move too fast, we will be martyrs!"

"I understand what you mean, Mr. Guo." Liu Deshu sighed again: "R&D is not easy either. Do you think everyone is an omnipotent person?"

"To put it bluntly, the investment is not enough. Most private enterprises don't have the money to do research and development. The state has only provided financial support in the past two years, a total of 5000 million yuan a year, but it has to be shared by 17 enterprises."

Guo Yang complained: "The amount allocated to Quanwang is only more than 100 million, and Quanwang's annual R&D investment is more than times that."

Liu Deshu said: "State-owned enterprises lack innovation mechanisms. Sometimes they want to conduct research and development innovation, but it is difficult to produce results. If they do produce results, they will be quickly copied. In such an environment, the competitiveness of enterprises is greatly reduced, and the enthusiasm for research and development is also dampened."

"Is this something I can listen to?" Guo Yang didn't expect Liu Deshu to say such a thing.

"That's the problem. We can't let it blind us. I'm an old man and will retire in two or three years at most. It's harmless to complain a little."

Guo Yang smiled half-seriously and half-fakely: "Yes, I will retire in two or three years, so I don't want to be blamed again when the time comes."

Liu Deshu on the other end of the phone frowned and said, "It seems that Mr. Guo is not optimistic about Syngenta. Does he know some inside information?"

"There is no inside information. Everything is out in the open. The giants are also clearly in decline." Guo Yang smiled and said, "Mr. Liu, why don't you wait for another two years and see what happens."

"Mr. Guo is quite confident." Liu Deshu hesitated for a moment and said, "As expected, we should communicate with young people when we have nothing to do."

"We welcome Mr. Liu to come and give us guidance at any time."

"Okay, I'll come if I have the chance."

After ending the call, Liu Deshu pondered for a while. Ren Jianxin of the Chemical Group is ambitious and is called a merger and acquisition maniac by the media.

This time too, the meeting was initiated after Monsanto made an offer to Syngenta.

Once Syngenta shows its intention to sell its shares, be ready to rush in.

This is obviously a high probability event.

Therefore, Ren Jianxin of the Chemical Group started preparations early.

The Chemical Industry Group has too much debt and not enough assets to meet the requirements for overseas financing. It can only seek to bring in Sinochem, and after the merger is completed, the two companies will merge and go public...

It’s just that the amount of capital required is too large. Although Syngenta’s market value is only more than 300 billion US dollars, if it wants to snatch market share from Monsanto, this number will only be more, not less.

The total assets of Sinochem and Chemical Industry combined are only slightly higher than this.

After the merger is completed, how will the subsequent operations be managed? The management systems of state-owned enterprises and foreign enterprises are completely different. How can they be integrated?

Can I use its core technology?

These problems made Liu Deshu, who was already cautious, express his opposition strongly at the internal meeting.

But Ren Jianxin insisted and repeatedly emphasized the importance of taking over Swiss Syngenta.

With public opinion surging and concerns over national food security and improving the country's agricultural technology, many people have come to support Ren Jianxin.

Sinochem was also forced into the vortex.

"Syngenta has a hidden and unpredictable deep crisis."

“If you walk accurately, you are a pioneer; if you walk quickly, you are a martyr.”

Liu Deshu recalled every word of his conversation with Guo Yang.

"Wait two more years and wait and see what happens... Should the word 'change' be applied to the Omni-King creature?"

"Then just wait."

At the next meeting, Liu Deshu clearly stood against Ren Jianxin and firmly opposed the acquisition of Syngenta.

Everyone could feel that his attitude, which had originally been somewhat relaxed, had become tougher than ever before.

This made Ren Jianxin very angry!
The two of them started to argue with each other during the meeting.

"Liu Deshu, you are ignoring the overall situation. You are in a high position but you are just sitting there doing nothing. Do you deserve the position you are in?"

"Yes, Ren Jianxin, you serve the country and the people. You are amazing and noble!"

After several failed negotiations, the merger progress between DuPont and Dow is accelerating, and countries such as the United States and Brazil have given the green light to the merger.

At the same time, in Europe, Syngenta's board of directors did not respond directly to Monsanto, but some shareholders expressed their willingness to sell their shares.

Syngenta has no controlling shareholder and all shares are held by pension insurance funds.

The decline in market share and disagreements among shareholders led to internal instability.

The public realized that Syngenta might really sell its shares.

Many companies began to formally contact Syngenta, but Monsanto, which bypassed the board of directors and directly contacted shareholders, still had the upper hand.

The domestic public opinion environment has also become turbulent due to the instigation of some people with ulterior motives.

It is the beginning of summer.

In Lan City, inside a factory surrounded by green trees and flowers, it is hard for people who don’t know the situation to imagine that this is a pesticide formulation factory.

Guo Yang has just completed his inspection and is very satisfied with the factory's production and environmental protection issues.

After returning to Yu Qin's office, Guo Yang smiled and said, "The public opinion environment has been bad recently. They have been criticized by the old man. It's time for the King of All to show his face."

Yu Qin, who accompanied us, said, "We have been here, but we have not yet visited the bases in the Asafoetida Gobi Desert and Yunnan Province. The information about the marigold and pyrethrum bases in Kenya has not been sent back yet. We will have to wait for a while for this episode of "Five acres for a Mercedes-Benz."

"Okay, wait. There's no time to rush. Mr. Yu, you have a heavy burden to shoulder. The promotion of biological pesticides is a long way to go!"

"Haha, I'm actually quite optimistic." Yu Qin said with a smile: "Although the biopesticide market is small now, farmers' views are changing and the market is expanding.

Quanwang holds two exclusive natural plants, Ligusticum chuanxiong and Wolfgrass, and has established production bases for azadirachtin, matrine, wolfsbane, triptolide and pyrethrin. The brand matrix has also taken shape, and marketing channels can be spread across the country with the support of Denong agricultural materials.

This year, the growth rate of Quanwang biological pesticides will not be low!"

Guo Yang also laughed and said, "Liu Deshu said I was confident. Now I know the root of it. You are not confident, you are just cocky."

Last year, Quanwang Biopesticide sales reached 12.86 billion yuan, but the year before last this figure was just over 2 million yuan, an annual growth rate of more than 500%.

If this growth rate is maintained this year, Quanwang's sales of biological pesticide products will reach more than 80 billion yuan.

This is obviously a bit far-fetched, as it is higher than the national market share of biological pesticides.

Yu Qin snorted and said, "From spring ploughing to summer, the combined sales of Quanwang's three main brand preparations: Quick Kill, Green Cut, and New Leaf have reached 10 billion yuan, and the three major products are expected to exceed 20 billion yuan for the whole year!

Coupled with the launch of other product lines, the export of technical materials, and the development of overseas markets, the revenue of the biopesticide segment is expected to exceed 30 billion yuan! "

Guo Yang said: "The growth rate is much lower than last year. It is not an exaggeration to say that your tail is up to the sky."

Yu Qin was a little disappointed. “We can only export technical drugs to overseas markets, and our preparation market is still far behind the giants.”

"The speed of the Quanwang's overseas expansion must also be accelerated." Guo Yang pondered and said, "This time DuPont and Dow merged, and the global chemical industry will also be restructured. During this period, the Quanwang must pay attention to the assets divested by giants such as Dow Brazil and Pakistan, and take over if there is a chance.

In addition, we should also hurry up to invest in overseas factories, especially the American factories. If the King of All can solve the mutated caltrops and red fire ants, we will make a fortune."

“Hahaha, it’s a heavy task!” Yu Qin sighed, “I’ve been flying on airplanes for the past two years.”

"The results are impressive. The All-King is unstoppable." Guo Yang smiled and said, "Are you ready to become a shareholder of the All-King?"

Yu Qin said in surprise: "Haha, I've been waiting for this day."

The current achievements of the King of All are inseparable from Yu Qin.

Although he had the blessing of special plants, Yu Qin's consistent emphasis on research and development was also the key to the King's transformation.

Plant raw materials → pesticide intermediates → pesticide technical → pesticide preparations → circulation, Quanwang's complete biological pesticide industry chain has also taken shape.

What is lacking now is market development.

Giving the executive team some incentive shares at this time will achieve the best results.

In the pesticide market, chemical pesticides occupy an absolute dominant position, and biological pesticides only play a supporting role.

What Quanwang needs to do now is to break this inherent perception and reshape the market structure.

This requires a very aggressive team!

The battle for every inch of land in the market, increasing scale and reducing costs in production, improving quality in research and development...all of these require the employees' subjective initiative.

The equity incentive plan has been completed long ago, and many adjustments have been made based on the employee dividend plan.

Quanwang is already a very mature company with a stable team. It is now able to generate stable profits and the level of trust between the teams is high.

Therefore, Guo Yang asked employees to pay money to buy shares. If employees do not have enough funds, they can also buy shares by using futures shares.

The so-called stock futures are similar to buying a house with a mortgage.

That is, employees are granted a certain proportion of equity, allowing them to enjoy dividends first, and then use the dividends to repay the amount payable when purchasing shares.

This time, Guo Yang plans to release 10% of the equity first, and reserve 5% to 10% in preparation for future expansion.

Quanwang's turnover last year was approximately 28 billion yuan, and its net profit reached 5.04 million yuan.

After some consideration, Guo Yang simply and roughly valued Quanwang at 50.4 billion yuan, which is a price-to-earnings ratio of 10 times.

This is a low valuation for the rising Omni King.

However, considering that Quanwang has no plans to go public, the expected profit from employees' shares will all come from dividends.

This valuation is not low.

Because according to last year's profits, employees would need to invest 504 million yuan in capital to acquire one thousandth of the shares.

Even if all the profits are used for dividends, one thousandth can only get 50.4. If Quanwang's development stagnates, it will take ten years to repay the payables.

However, when Yu Qin announced the equity incentive plan within Quanwang, he received a warm response.

Many employees who were eligible to subscribe rushed around to celebrate, and even some who had doubts dispelled their doubts after deep thinking.

Quanwang’s profit last year was 5 million, what about this year?
10 billion yuan is a conservative estimate.

Moreover, it is obvious that Quanwang is expanding rapidly, with hot products, rapidly expanding production capacity, and a moat formed by years of high-level research and development...

Maybe, in a few years, Quanwang’s profit will reach 50 billion yuan!

Even if the enthusiasm of employees is stimulated, it is possible to go further!

"Boss, you are so generous. From today on, the lab is my home!"

"atmosphere!"

“I want to grow with the company!”

"Go to the market, go to the market. If I don't go to work for a day, I will feel anxious!"

"Hahaha, Denon's bastards are so envious that their eyes are purple. They say the boss is just giving money to the employees!"

The employees' enthusiasm for subscription exceeded Guo Yang's imagination. In just over a week, more than 80% of those who were eligible to subscribe had signed the agreement.

Many people also took the initiative to choose to pay money to subscribe for shares.

Guo Yang said with emotion: "The employees are very confident and their morale is high!"

“But even if the boss gives money, some people are still unwilling to buy shares.” Yu Qin shook his head and said, “These people are too seriously influenced by the outside world.”

"People with different ideas cannot work together. The only difference is that there will be fewer millionaires and billionaires." Guo Yang smiled indifferently.

Equity incentive reform is the path that Jiahe must take towards becoming a multinational group. The future is bright, but it requires people to pay for it.

Not only Quanwang, but also companies such as Tianhe, Muhe, Fengkai, and Hexi are also gradually taking this step.

However, the turmoil in the agrochemical industry has become even worse recently, so Guo Yang personally stayed at Quanwang and encouraged the middle and senior management and core employees who had subscribed.

Anyone who is willing to participate in the subscription is full of confidence in the King of All, and their state is as excited as if they were injected with chicken blood.

However, there is still a small group of people who do not agree with Quan Wang and have given up subscribing even for futures shares. Among them are some people whom Yu Qin is very optimistic about.

These people were basically affected by the recent super merger. In just one month, the merger of DuPont and Dow was very fast, and the Syngenta board of directors also officially conveyed its intention to sell its shares to the outside world.

Monsanto is the most promising acquirer.

There are people in the country who are always deliberately exerting pressure on people, making them feel as if a huge mountain is pressing down on them.

“The domestic agrochemical industry is finished.”

“Long-term contract workers are stuck with producing technical drugs.”

"Once the giants merge, their core technologies, funds and talents will all be in their hands. What will the OEM companies do to turn things around?"

Various pessimistic remarks are flooding the Internet, television, business and other fields.

At this time, it suddenly came out that the chemical group was interested in bidding for Syngenta!

Ren Jianxin, the president of the Chemical Industry Group, publicly stated, "The domestic agricultural production technology is too backward. Syngenta's core technology is exactly what the country needs. The Chemical Industry Group will spare no effort to overcome numerous obstacles and bid for Syngenta!"

For a while, news that China Chemical Group was interested in acquiring Syngenta spread everywhere.

It has aroused a lot of feedback in society.

Read the error-free version at 69shuba! 6=9+shu_ba is the first to publish this novel.

A blogger on Huinong.com made a special interpretation, and discussions about it were overwhelming on NIO’s Weibo.

Someone objected.

Some people agree.

Ren Jianxin and his group frequently appear in the public eye, making various interpretations.

How backward is domestic agriculture, how miserable are farmers, how low-end is the domestic pesticide industry, how important is Syngenta...

Under Ren Jianxin's unremitting calls, some uninformed people really thought it was that good and took the initiative to flatter Ren Jianxin, saying that he was "acquiring for the country."

However, the chemical group's inherent lack of assets is a fatal flaw, and Sinochem must be brought in.

Sinochem's chairman Liu Deshu rarely appears in public, but insiders revealed that he has no interest in acquiring Syngenta and expressed sufficient confidence in domestic agricultural companies.

Although Ren Jianxin's faction did not directly attack Liu Deshu, they still made sarcastic remarks.

“Where do pesticide companies get the confidence to invest 1% in R&D?”

"Half of the domestic vegetable seeds are still in the hands of foreign investors, but Syngenta has more than 2500 vegetable varieties, with 150 to 200 new vegetable varieties added every year. They are really confident!"

"The top 100 pesticide companies combined are not as good as one business unit of Syngenta. It's good to have confidence, but it's a problem to be arrogant."

Opponents are no pushovers either, arguing over issues such as funding difficulties, GMO safety, and institutional integration.

It's a great pleasure for the onlookers.

But this trend has inevitably affected the confidence of relevant practitioners.

Especially R&D companies.

For example, the King of All.

Therefore, when Guo Yang was spending money, some people who were eligible to subscribe still gave up their subscription, and some even resigned.

Guo Yang didn't indulge these people.

He was afraid that he would not be able to give away the money, so he did not keep the extra shares and let his subordinates subscribe for them all.

At the end of June, Quanwang completed the equity incentive reform.

Suddenly, the whole team was filled with new vitality.

It is early summer, and crops such as corn, cotton, rice, sunflower, fruits and vegetables are in their peak growing season, and it is also the peak season for pesticide sales.

The marketing staff of Quanwang were conquering cities everywhere like crazy.

The staff of Denong Agricultural Materials accompanied this group of lunatics everywhere as if they had seen a ghost.

After Quanwang's biological pesticides increased their raw material planting and processing capacity, their costs also dropped, and they proactively lowered their prices.

Firstly, it leaves more profit space for middle channel merchants such as Denong, and secondly, it also passes on profits to farmers at the end.

At this point, the competitiveness of Quanwang pesticide formulations has been greatly improved again, and orders have been frequently won in farmland.

The hot sales soon created positive feedback, and employees became more motivated.

Although many people were investing in stocks, they still put in 120,000 efforts as if they were carrying a loan of millions, and sales in various regions continued to set records.

Other biopesticide manufacturers suffered.

Pollution-free vegetables, export vegetables, high-end fruits and tea, etc., as long as there is a base with quality requirements, it has long been the target of Quanwang's research.

Today, the market share in this field has been consolidated again.

With the price reductions of the three major brands, Quick Kill, Green Cut and New Leaf, the markets for crops such as corn, rice and cotton have also made frequent breakthroughs.

In a village square in Su Province.

DuPont Plant Protection China is holding a grand brand promotion conference.

Due to the merger of DuPont and Dow, this press conference not only attracted large growers, but also many reporters.

The main pesticide brand promoted at the promotion meeting is undoubtedly Kangkuan.

Paul Dunn, Director of Insecticides Marketing, DuPont Crop Protection Asia Pacific, was the first to speak. He said:
"After only two years on the market, Kangkuan's global sales exceeded US$3 million last year, which is an amazing achievement."

"Currently, Kangkuan is accelerating its entry into more than 100 countries and regions around the world. Please remember its original name: chlorantraniliprole.

This is a groundbreaking insecticide! DuPont expects it to become the world's largest insecticide!"

After the translator repeated it, a reporter asked:

"Mr. Paul Dunn, what is Kangkuan's annual sales in the Chinese market? What is your expectation?"

Paul Dunn said: "Unfortunately, the figure was only 1.2 million yuan last year. Our expectation is to achieve sales of 10 billion yuan per product, but this still requires the efforts of our business staff."

After saying this, Paul Dunn glanced at Zhang Yong, the business director of the China region, and Dr. Jiang Yong, the brand manager of field crop pesticides, who were in the audience.

The latter two did not look so optimistic.

"1.2 million is already an excellent number." The reporter sighed:
"Chinese pesticide companies all sell technical materials, but none of them have pesticide formulations with such high sales, nor do they have such excellent brands. I think Kangkuan will definitely be able to break 10 billion yuan, or even 20 billion yuan."

Many knowledgeable growers came to the scene, and when the reporter said this, there was a noisy discussion among the audience.

The person who was responsible for translating for Paul Dunn stood there in a daze for a moment, then slightly modified it and told him what he meant.

But before Paul Dunn could say anything, the farmers below started talking even louder, and the reporters who were also standing on the stage were unaware.

“Did I say something wrong?

The Pesticide Association, experts and professors, and even companies all admit that they are OEM factories, and there are simply no competitive pesticide brands in the country!

Thanks to excellent companies like DuPont and Dow, high-quality agricultural products are provided to farmers.

You guys, don't always try to save money by buying pesticides produced by small domestic low-quality factories. These not only pollute the environment, but also have high pesticide residues and are unsafe.

Buying imported goods will make you feel comfortable and the people will feel assured when eating them.”

The first half was fine, but the latter part made Business Director Zhang Yong and Brand Manager Jiang Yong exclaim that it was terrible.

The young Jiang Yong ran a few steps and snatched the microphone from the reporter. Zhang Yong also arrived and glared at the reporter fiercely.

But the growers behind were already furious.

The growers don’t care whether you merge or not, or whether you are domestic or foreign-funded, as long as it is easy to use and affordable.

But as a reporter, you are not only sarcastic, but also seem to be lecturing, and even make random accusations and stir up trouble. This is really unbearable.

Besides, are domestic products really inferior to others?

I am just ignorant!
Some hot-tempered growers couldn't help but start scolding.

"Fuck your motherfucker!"

"Is this reporter from Japan? Is he licking Americans like this?"

"Kang Kuan is just so-so. I bought it because it's two dollars cheaper than Susha."

"Old Li, you have to change your mindset. Speed ​​kill is expensive, but the effect is better. If Jiang Yong hadn't called me, I wouldn't have wanted to come today."

"What the hell, I thought I was getting a bargain, but ended up encountering this disgusting thing."

There was chaos in the audience, and Zhang Yong and Jiang Yong on the stage turned green in the face when they heard everyone's discussions.

There was more than one reporter at the scene.

What’s worse is that some growers have already turned around and left.

It is foreseeable that today's farce is bound to be reported in the newspapers.

Although Paul Dunn didn't understand, he felt that things were heading in a bad direction.

After several rounds of appeasement, many growers and reporters stayed at the brand conference.

As soon as Zhang Yong came on stage, someone asked loudly: "Mr. Zhang, some growers said that Kangkuan is not the best insecticide on the domestic market. Is that true?"

This shout was like stirring up a hornet's nest, and people kept asking questions.

"Which company is Speed ​​Kill from?"

"I heard that Kangkuan was completely suppressed by Susha. If Susha's price was not higher, it would have entered the rice market long ago."

"It's a domestic brand. I almost thought I was hallucinating."

Zhang Yong on the stage patted the microphone and shouted, "Quiet, quiet, today is DuPont's brand promotion meeting."

Zhang Yongqiang hastily completed the promotion meeting under pressure, but the reporters had no intention of letting him go.

Finally, Zhang Yong admitted in person: "In the domestic market, Kangkuan does have a respectable competitor, the quick-kill insecticide from Quanwang Biological."

After saying this, Zhang Yong and others surrounded Paul Dunn and hurriedly evacuated.

Paul Dunn knew everything. The reporter ruined the promotion meeting, but the pressure brought by Kang Kuan's strongest competitor also suffocated everyone.

The farmers actually turned against us on the spot!

Selling Dow South Asia to Quanwang is an even more stupid decision!

The reporters did not leave immediately, but found the large-scale growers and asked some questions one after another.

These social news reporters who chase hot topics eventually return with a lot of rewards.

On the same day, news about the farce at the DuPont brand promotion conference spread on NIO’s Weibo.

Quanwang Biotechnology, which ranks ninth on the domestic pesticide sales list, and its star brand: Speed ​​Kill, also made their appearance in public.

“Why did DuPont’s brand promotion fail?”

"DuPont Kangkuan vs. Quanwang Speed ​​Kill, growers prefer Speed ​​Kill."

"Quanwang Biotechnology is a company that only produces plant-based pesticides. Plant-based pesticides are naturally decomposed and can achieve no pesticide residues. They are the savior of export-earning products."

"Quick-kill insecticide - broad insecticide spectrum, applicable to many crops; high insecticide activity, long lasting effect, strong compatibility, high safety, good effect."

DuPont and Dow are about to merge, and the chemical group is planning to compete with Monsanto for Syngenta, which is also causing a lot of controversy.

At this time, the ninth-ranked Omni King suddenly became popular.

However, it was because a reporter asked a question at the DuPont brand promotion conference that caused dissatisfaction among growers, which eventually led to the quick killing of the King of All.

This dramatic scene made Guo Yang and others laugh and cry.

What else can we do? We have to promote it quickly, and bring out the quick-kill, green-cut, new-leaf, etc. one by one.

However, there are also people who do not take the Omni-King seriously.

No matter how you look at it, compared with DuPont, Dow, and Syngenta, Quanwang is just a small fry!
However, when the King raised the banner of Golden Harvest Group, all doubts died down.

Little did they know that when supporters of the merger with Syngenta gave examples, they only used Syngenta's vegetable seeds for comparison and did not dare to touch the field crop seeds.

The reason is that he is concerned about Jiahe and Tianhe Seed Industry.

DuPont has Pioneer Seeds, Monsanto has Deca Seeds, Syngenta has Syngenta Seeds…

However, Tianhe Seeds, a subsidiary of Jiahe, is fully capable of competing in the domestic market, and is even invincible in some varieties such as corn and soybeans.

Although the Omni King is small, no one dares to ignore it at this moment.

At this time, Wumu Huan Daben also quietly updated a program.

(End of this chapter)