Chapter 482 Huiyuan's Big Agriculture
Zhu Xinli has long been dissatisfied with the low-profit margin juice business.

Even in the past few years, Huiyuan Group has suffered a fatal blow.

Investing in the upstream involves a large amount of funds, and the already sluggish downstream juice market is facing strong competition from "Acari Bai - natural whitening".

At its lowest point, Huiyuan Juice's share price in Hong Kong fell below 3 yuan per share, less than one-fifth of Coca-Cola's offer at the time.

However, Huiyuan Group has been favored by capital in the past six months.

If you have been paying attention to Huiyuan, you will have noticed that in the past six months, Huiyuan's stock price has risen a lot and returned to around 5 yuan.

In contrast, Huiyuan Juice's revenue has not changed its downward trend, with annual revenue last year reaching only more than 40 billion yuan.

However, Huiyuan's layout in large-scale agriculture has yielded results this year.

The capital city, Miyun.

This is the border area between Yanshan Mountain and the North China Plain, and four-fifths of the entire area is mountainous.

In Dongshaoqu Town, Miyun, there is an ecological agricultural park invested by Huiyuan Group, also known as a fruit and vegetable research, planting and production demonstration base.

The key lies in the two words research and demonstration.

A group of business elites in suits and ties walked into the agricultural park.

Zhu Xinli, who is over 60 years old, took the lead and walked in front, followed by Su Mingke, vice president of Softbank SAIF Investments.

Zhu Xinli introduced everything along the way.

“Mr. Su, this park covers a total area of ​​1.5 mu, with 5400 mu of planting land and 1200 mu of forest land. It focuses on the research and development of organic agriculture.

It is mainly divided into three areas: organic vegetables, organic fresh fruits, and wild dried fruits. There are more than 40 varieties of vegetables and fruits, many of which are rarely seen in the market. "

Su Mingke pondered and said, "The key is whether it can be industrialized. This is the biggest problem of organic agriculture!"

Zhu Xinli smiled and said: "Huiyuan has solved this problem."

Su Mingke smiled and said, "That's why I came here, just to see how you guys solve it!"

Zhu Xinli stopped in front of a smart greenhouse. "Please, Mr. Su, this is our organic vegetable base."

The flowers in the greenhouse corridor immediately caught Su Mingke's attention. They were very beautiful, but he had never seen them before.

Zhu Xinli said: "This is the golden silk curtain, a kind of aerial root flower."

Dense reddish-brown or yellow-green aerial roots hang down to the ground like colorful silk threads.

Various exotic vegetables are planted on both sides of the corridor, each with a small sign introducing the variety and nutritional value of the vegetable.

Although it was not the weekend, there were still many tourists picking fruits with their children in the park.

Zhu Xinli added: "There are more than 100 greenhouses in the ecological park that specialize in growing this kind of vegetables, which can satisfy tourists' picking."

The golden citrus mushrooms, colorful peppers, various cherry tomatoes, kale and other colorful potted vegetables are indeed unique.

Su Mingke said dissatisfiedly: "What about industrialization?"

Just traveling and health care are not worth Su Mingke's trip.

Zhu Xinli smiled and took Su Mingke to another greenhouse.

Unlike the previous shed, this one is full of neatly arranged small tomatoes, in bunches. It's obvious that the yield is very high.

Su Mingke raised an eyebrow, "Organic?"

"Yes!" Zhu Xinli said, "The substrate is carefully prepared, and no chemical fertilizers or pesticides are used."

“You don’t use plant-derived pesticides either?”

"No, we have our own solutions. If there are pests and diseases that cannot be controlled, we will destroy everything, but this has not happened yet."

Zhu Xinli took people to the next greenhouse, this time it was cucumbers, which happened to be shipped, so Su Mingke asked someone at random.

"How much is one pound?"

"It's 5 yuan per kilogram now, and it can be sold for 10 yuan per kilogram during holidays, which is 2 to 3 times the price of ordinary cucumbers in the Beijing market."

“How many cucumbers can one acre of greenhouse produce?”

"I don't know about one acre, but with such a large greenhouse, it's no problem to produce more than 20 kilograms a year."

Zhu Xinli had previously told him that a greenhouse is about 1 square meters, or 15 mu, and the yield per mu may be 1.5 kilograms, with an output value of at least to yuan.
Su Mingke nodded, quite satisfied, and looked at Zhu Xinli, "Anything else?"

A few minutes later, the group arrived at an orchard.

Apples, peaches, cherries...

The apples are in the fruit-bearing season, and the carefully crafted orchard is extremely stunning at first glance.

“Is this organic too?”

Zhu Xinli thought of Guo Yang. He always heard people say that when Guo Yang went to the base, he liked to squat down and talk about technology with people, and he liked to play in the mud even more.

So he also walked under the tree, squatted down, slightly tightened the sleeves of his suit, pulled away the weeds, grabbed a handful of soft soil, and there happened to be one or two black earthworms in the soil.

"Mr. Su, look at this soil. There are traces of earthworm organic fertilizer in it. And these earthworms and weeds are also good things. The grass feeds the earthworms, the earthworms feed the land, and the land feeds the trees, thus forming a good ecosystem."

Su Mingke frowned at first, but in the end, he slowly started to smile.

"It sounds good. Can we eat this fruit now?"

"Of course, we're ready in the restaurant, please move over."

"No." Su Mingke also took two steps forward, came under the tree, picked up one that he liked at random.

"That's it. Where's the water? I went to wash up. Oh, there it is. I saw it."

Following his example, Su Mingke's followers also picked one each, rinsed it under the tap, and began to eat it. This scene surprised Zhu Xinli.

When did people in investment companies become so down-to-earth?

Playing in mud is so weird!

But it's a good thing after all. He has the confidence and is used to making big promises, so it's okay for him to go the product route.

Whoever eats this apple will be confused!
Sure enough, Su Mingke and his friends kept chewing apples with quick movements and looks of enjoyment, which made Zhu Xinli hungry. He simply picked one as well, and without even washing it, just wiped it, and started chewing it. It was sweet, crispy, and tasted extremely good.

After eating the apple, Su Mingke seemed to still be savoring the amazing feeling.

What is he here for?

After thinking for a while, he turned around and asked, "Mr. Zhu, what are Huiyuan's future plans?"

Zhu Xinli pondered, "From planting and breeding to management and processing, the pectin left over from processing can be extracted from the pomace; the pomace can also be used to produce feed to supply surrounding farms; the manure of pigs, sheep and beef can be used as organic fertilizer; the biogas fermented from the waste pomace can be used by the surrounding people and factories... Huiyuan wants to build a complete green agricultural industry chain.

Compared with the fruit industry, organic agriculture covers a wider range of industries and has a larger market. More importantly, governments at all levels provide a large amount of subsidies for organic agriculture.

Mr. Su, the Miyun project has been underway since 2007. After several years of preparation, it is about to reach a mature stage. Organic agriculture will become a market with greater potential for expansion than the juice industry.

In the next 3 to 5 years, organic agriculture will become the second Huiyuan!"

Su Mingke was actually a little tempted, but he asked again: "What about the juice business?"

"Huiyuan will not give up and will also adopt organic methods to produce juice. Huiyuan has established a 200,000-acre organic sea buckthorn planting base in Xinjiang Province."

"Mr. Su, you know Seabuckthorn, right? Huiyuan is the first fruit company to develop a seabuckthorn base after Seabuckthorn!"

"Ji Xiaobai?" Su Mingke was stunned for a moment, "Is Huiyuan related to Ji Xiaobai?"

“The seabuckthorn varieties are exactly the same, but Huiyuan has a deeper foundation in processing capabilities and channel construction than Seabuckthorn!”

'Ji Xiaobai - natural whitening' has been deeply rooted in people's hearts.

Unfortunately, there is a shortcoming, he has no interest in introducing capital. If he had a choice, Su Mingke would definitely prefer to invest in Ji Xiaobai.

Huiyuan is indeed a good alternative.

Moreover, against the backdrop of frequent food safety issues, the gimmick of organic agriculture is worth pursuing, and Huiyuan has already done a decent job of it.

Before coming, he took a rough look at Huiyuan's financial statements, which were generally bad, but the growth rate of Huiyuan's organic agriculture division in the past two years has been extremely impressive.

The annual growth rate is close to 300%!

This year is even more exaggerated, with production and sales continuing to soar. Su Mingke once suspected that Huiyuan was committing fraud.

However, some signs of organic farming have emerged in society.

In the middle of the year, Zhu Xinli invited Internet tycoons Zhang Chaoyang and Wang Wenjing to the Miyun base, and the two spoke on NIO's Weibo one after another.

Zhang Chaoyang praised: "It was only after arriving at the base that I understood what health preservation and organic vegetables mean!"

This made Huiyuan’s organic vegetable base in Miyun popular on Weibo.

Therefore, Su Mingke finally decided to come to the Miyun base. This was related to an investment: Danone Group wanted to transfer its 22.98% stake in Huiyuan.

Softbank SAIF Investment Fund is interested in taking over.

“There is a question: how much subsidy does the state provide for organic agriculture?”

Zhu Xinli thought for a moment and said, "Take a typical example, in Xiaji County, Henan Province, for smart greenhouses over 100 mu, each mu is subsidized 1000 yuan, with 20 types of subsidies.

This year, Huiyuan will receive subsidies of more than 2 million yuan. If the subsidies are excluded, Huiyuan's profits will be reduced by %.

But if we expand the scope of investment, we will get more government subsidies!"

Su Mingke thought about it for a moment before nodding.

"That's all for today. I'm personally very interested in this project, but it still needs internal evaluation."

"Row."

Zhu Xinli was a little surprised. He didn't expect it to be over so quickly, but Su Mingke's attitude made him feel that it could be done.

After playing with capital for so many years, after the Delong Group, Huiyuan joined hands with Uni-President and Danone, taking one step at a time, allowing Huiyuan's capital to achieve a triple jump.

But every capital operation is completed at the negotiation table, only today is a little different...

He looked back at the orchard.

Half a month later, France's Danone and Softbank SAIF signed an agreement to transfer Huiyuan shares.

Softbank SAIF became Huiyuan's second largest shareholder and injected funds into Huiyuan.

At the same time, Huiyuan Juice also signed a US$1 million term loan financing agreement with a bank.

Afterwards, Zhu Xinli's dream of big agriculture set sail again.

"According to information from Huiyuan's official website, there are 11 industrial parks from north to south across the country, with a total investment of about 551 billion yuan, the largest of which is in Zhongxiang, Hubei Province.

In 3 to 5 years, we will build a comprehensive health industry park integrating organic planting, breeding, processing, sales, experiential consumption, sightseeing, leisure, vacation and health care!
The total planned investment is 142 billion yuan! "

This is the information that Qi Ziwen reported to Guo Yang.

The total investment of 551 yuan also includes investment from local governments, but even if this part is excluded, it will still be a huge challenge for Huiyuan, whose battle line is too long.

Guo Yang’s first reaction was that Huiyuan was finished and there was no hope.

Then I remembered that Zhu Xinli used Jiahe’s organic weapon to carefully weave a trap for capital.

(End of this chapter)