Chapter 162 The Collapse of the Capital Empire

The Delong Group has created many myths in China's capital market and has always been revered as a god.

Before the collapse of the Delong Group, it owned a total of 177 listed and unlisted companies.

Industrial integration has always been the corporate philosophy that the Delong Group is proud of. In just a few years, it has created one merger and acquisition myth after another.

If divided by industry, the assets once controlled by Delong Group include:

The cement industry with Tianshan Cement Co., Ltd. as the core;

The electromechanical industry with Alloy Shares as the core;

The automobile industry with Xiang Torch at its core;
Agriculture and food processing industry centered in Tunhe, Xinjiang Province;
The textile industry with Tianyi Industry as its core;
Tourism industry consisting of Minsk aircraft carrier, Great Western Tourism, etc.;
The entertainment industry, which consists of Xiyangyang Culture, JJ Disco Plaza, and Jingcheng Guowu Sports;

Mining represented by Xinjiang vermiculite and Lop Nur potash;

Retail industry represented by Denong agricultural supplies supermarket;

and the financial sector, which consists of a number of securities companies, trust companies, leasing companies, and city commercial banks;

Papermaking, hydropower, sugarcane, hotels...

Like a large army in disarray,
In the complicated relationship, Deron once calmly played the game of "taking money from Peter to pay Paul".

Costly stock price maintenance, unbridled industry mergers and acquisitions, and extremely high financing costs...

At the end of 2003, various macro and micro factors pushed the liquidity risk of the Delong Group to a high point, and Delong's vulnerability was irresistibly exposed.

The capital myth was shattered in an instant.

Financial liabilities are 340 billion yuan and industrial liabilities are 230 billion yuan.

Creditors across the country are like ants on a hot pan, and debt collection teams are shuttling back and forth across the country.

The loan guarantee disputes are endless and even more complicated, and the mutual guarantee relationships between related parties are complicated.

It was not until the end of September 2004 that Huarong, which was responsible for the custody of Delong, fired the first shot in Delong's restructuring.

In 2022, Tang, the former boss of the Delong Group, was once again offered a reward of 2000 million yuan by the Higher People's Court of Shandong Province a few years after he was released from prison.

……

Seeing Guo Yang's surprised expression, Yang Cheng talked about his opinion on VV Soy Milk.
"In recent years, VV Soy Milk has tended to pursue hot and lucrative industries and expand its market value in the stock market. Its strategic planning has been too casual and it has neglected the cultivation of its core capabilities."

"Its cash flow is very bad, and it is difficult to repay debts and pay dividends."

"Not to mention expanded reproduction, even simple reproduction is difficult."

Guo Yang was stunned. He knew that Weiwei was pursuing a diversification strategy, but he didn't know much about this aspect.

No wonder Xue Liqiang was so evasive when talking about VV soy milk.

It turns out that he also despises the poor and seeks the rich.

Therefore, Alibaba’s strategy is clear: do not wait until you are out of money to raise funds. Only with sufficient cash flow can you calmly deal with various environments.

"What is the current situation of the Delong Group?" Guo Yang asked.

"The restructuring of the Delong Group has accelerated, and its six listed companies are all looking for new owners.

It has been confirmed that Guoliang Group will take over ST Tunhe, Huaxia Nonmetallic Materials Corporation will take over Tianshan Shares, and ST Zhongyan will be transferred to Hangzhou Baoqun Industry. "

"Where is Hunan Torch?" Guo Yang asked.

The first time he came into contact with the distribution of the Delong Group’s inheritance was because Yu Honghai had once thought of acquiring Xiang Torch.

Among Delong’s industrial assets, Xiang Torch is undoubtedly one of the best assets.

After acquiring Shaanxi Heavy Duty Truck, Xiang Torch has already controlled one-third of the domestic 15-ton heavy-duty truck market.

Shaanxi Heavy Duty Truck has a market share of over 15% in the domestic heavy-duty truck market of over 60 tons, making it an absolute leader.

Delong owns 2.05 million shares of Xiang Torch, or approximately 51% of the shares.

It is precisely because of Xianghuo Torch's position in the domestic heavy-duty truck market that more than a dozen companies are involved in its restructuring.

The situation is unclear, and the relevant team estimates that it will take about 10 billion yuan to control Xiang Torch.

Guo Yang naturally rejected Yu Honghai.

Xiang Torch is good, but it takes up too much capital, and Jiahe’s expansion in the agricultural sector also requires cash flow support.

What a bold idea!

It’s better to expand production capacity honestly.

Yang Cheng said: "It is still confusing. Previously, it was rumored that SAIC was going to take over, but SAIC denied the rumor."

"Delong's high-quality assets have no shortage of suitors, but Delong Livestock has been ignored."

Guo Yang still shook his head. He had learned about the situation of Delong Livestock.

In terms of assets, Delong Livestock is of very high quality. It owns 7 processing plants in various parts of Xinjiang Province, and has established a dairy company in cooperation with the Corps, as well as several dairy farms.

It has formed three major industrial bases: the northern slope of Tianshan Mountains, the Yili River Valley, and the southern Xinjiang oasis.

It is a very good livestock resource platform.

However, the creditor-debtor relationship behind it is unclear. If the acquisition risk is to be avoided, the only option is to acquire the physical assets of Delong Livestock.

But this must be agreed by all relevant creditors.

With the Delong Group collapsing across the board, its creditors gave up the last hope of getting their money back.

The difficulty can be imagined.

Delong Livestock is like a thorny rose, which makes people envious but dare not touch it.

Many companies that expressed interest in Delong Livestock, including China National Grain and Oils Corporation, Jinniu, Bright Dairy, Yili, and Mengniu, ultimately backed off.

No matter what the future of Delong Livestock is, the ones who will suffer the most are the thousands of dairy farmers in Xinjiang Province and governments at all levels.

There was nowhere to sell the milk, and a large amount of fresh milk was poured away. Most farmers began to sell their dairy cows, losing all their money.

Guo Yang said: "Delong Livestock is a hot potato. Whoever takes over may get burned."

Yang Cheng smiled and said, "We have studied this internally before and have also contacted the Ministry of Agriculture. Delong Livestock has been shut down for nearly a year and no one dares to take over."

“Continuing to drag it out will only make the Xinjiang provincial government more embarrassed. Perhaps we can sign an asset leasing agreement with it, and then slowly push for asset mergers and acquisitions and restructuring after resuming production.” Leasing?

It's really possible!
The Delong Livestock Project affects dairy farmers in border areas, and if it drags on for too long it will have a huge political impact.

Guo Yang thought about the pros and cons of the matter.

Hua Xia Dairy is going through a turbulent time, with fierce competition, a depressed dairy market, and incidents of inferior milk powder such as the Fuyang incident breaking out from time to time.

In terms of its layout in the dairy industry, Jiahe Group lacks, firstly, sufficient milk sources, and secondly, sales channels for food and beverages.

Delong Livestock has already reached the threshold of the top ten dairy companies in China, combined with Jiahe’s dairy layout in the Hexi region.

The milk source and processing problems have been solved.

Another year is budgeted for leasing resumption of production, publicity and promotion, and establishment of sales channels.

As the dairy industry crisis comes in advance, Jiahe has enough advantage to seize the domestic dairy market.

The only thing we need to guard against is the invasion of foreign dairy companies.

As for Vivi Soy Milk?

Jiahe doesn't mind having one more rival.

Guo Yang already had a rough idea. "We can try to push it first, starting with the Corps and the Ministry of Agriculture, but don't reveal too many cards."

Yang Cheng smiled as his work was recognized.

"We have already contacted Bingdi Tianyuan Dairy, and the autonomous region government is also pushing this matter hard, but the Ministry of Agriculture may need the boss to step in."

Guo Yang looked at Yang Cheng in confusion.

"Someone above is interested in Tianhe Seeds and Alfalfa Agriculture and Animal Husbandry." Yang Cheng said.

Guo Yang sighed secretly, what is coming cannot be avoided, he can only think about how to deal with it and how to gain enough benefits.

Afterwards, Yang Cheng called Weiguang’s investment team and held a small meeting together to prepare for the afternoon meeting.

Guo Yang first contacted Xie Shijie, and integrated his two dairy companies to form Hexi Dairy Company.

It is also planning to build three distribution centers in North China, East China and Southwest China, with an estimated total investment of 2.5 million yuan.

The revenue of 2.35 million yuan from the first crop of alfalfa orders has been fully received.

The second crop of forage has also entered the harvesting and processing stage. The Island Dairy Farmers Association has also sent people to Wuyuan to confirm the quality of the forage, and will continue to track the quality of forage processing in the future.

It is estimated that the second crop of 10 mu of forage grass in Jinta will produce 5 tons, and the first crop of 20 mu in Wuyuan will produce 10 tons.

Excluding the price reduction caused by self-use and reduced quality, the order revenue is expected to be around 4 million yuan.

A cash cow without a doubt.

Muhe can fully bear the cost of building sales channels and does not need any transfusion from the group company.

In addition, Tianhe Seed Industry is also a cash cow, and Weiguang Company can respond to emergencies at any time.

As for the legacy of the Delong Group, Golden Harvest can really give it a try.

Tunhe has been taken over by the China National Grain and Grain Corporation.

As for the rest, the Lop Nur potash mine and Denong agricultural supplies supermarket are both of great attraction to Jiahe.

However, the Lop Nur potash mine has been planned by China Development Bank for nearly a year, and Jiahe has neither the opportunity nor the strength.

But agricultural supply supermarkets are very likely to do so.

After communicating with Xie Shijie, Guo Yang called Bi Qiang again, but still couldn't get through.

"I don't know where he went. He didn't answer the phone for two days."

"Bi Qiang, Bi Qiang, you have to take it easy."

The whole morning passed.

After changing the office location,
Weiguang Company also established its own cafeteria, and its wide variety of dishes won the favor of employees.

When Guo Yang was serving food, he could see smiles on the employees' faces, instead of the lifeless looks of office workers.

For a moment, Guo Yang felt guilty.

Under his management, employees in the Northwest are under even greater pressure than those in Beijing.

Refreshing and delicious fish-flavored shredded pork, an authentic dish.

Guo Yang thought of the canteens of Alibaba, Wanda and Huawei, whose dishes are all produced from their organic farms.

As a large agricultural group, Jiahe organic farm had to be built.

2 p.m.

Xue Liqiang and Jia Liang of VV Soy Milk came with their teams.

As soon as they met, the tall and thin Xue Liqiang said jokingly, "Boss Guo, the saline-alkali land has been turned into fertile farmland. Jiahe has now found a treasure trove!"

"Genetically modified soybeans are coming on strong, Jiahe must carry the banner of domestic soybeans this time!"

This old bitch starts praising Jiahe as soon as she comes in!

Guo Yang looked at Jia Liang who was standing next to him. He had a kind face, but he was tense.

"Mr. Xue, you are joking. Jiahe has not yet entered the soybean processing industry. This flag must belong to the Jiusan Group."

"Hey, the demonstration base of Tiandou No. 1 has been built right at the doorstep of the Jiusan Branch. I've never seen soybean seedlings sprouting in saline-alkali land in such a neat manner."

The few of them chatted as they walked, and Xue Liqiang talked nonstop all the way.

“The U.S. has too much subsidies for soybeans.

If the safety issues of GMOs had not triggered public opinion and non-GMO products had not become popular, domestic soybeans would have been completely wiped out.”

"When it comes to the management of saline-alkali land, no one can compare to Jiahe at home and abroad."

Guo Yang's intuition told him that Jiusan Grain and Oil had a lot to ask for.

(End of this chapter)