Chapter 223 Outshines others The importance of agricultural machinery is self-evident. There is even a saying that the fundamental way out for agriculture lies in , domestic agricultural machinery manufacturers have been in a state of low profits for a long time. In order to support the development of the agricultural machinery industry, the state introduced an agricultural machinery subsidy policy in 2004. First, it subsidizes farmers so that they have money to buy agricultural machinery; secondly, it also subsidizes agricultural machinery companies so that they have room to raise prices. However, the pace of price increases has not kept pace with the increase in steel prices. Fengkai agricultural machinery is selling well, with to tractors shipped every month, plus supporting machinery and diesel engines, with monthly sales of around million yuan. The actual profit margin has dropped to 27% this year compared to 20% last year, which means a net profit of 3600 million yuan per month. Its profit margin is not even one-third of Tianhe and Muhe, but it is already the most profitable company in the industry. Others, such as China First Tractor Co., Ltd. and Dongfanghong Co., Ltd., have slightly raised prices, with profit margins of only 10%-15%. It is good enough for small brands to maintain 5%-10%. If the steel price fluctuates slightly, they will suffer a lot. At this point, we have to mention the Agricultural Machinery Association of Shandong Province, which has taken a series of measures such as unified procurement by agricultural machinery companies and Taigang Group. On the contrary, Weifang's agricultural machinery industry chain, taking advantage of the momentum of agricultural machinery subsidies, is poised to break through the siege.
Come back to your senses. Guo Yang sorted out all the problems he had encountered in the past few days. Fengkai currently has workers, but to maximize production capacity, the number of employees must be more than . In addition to the assembly line workers, a small number of others are used to assist in the handling, assembly and other processes, which is time-consuming and labor-intensive. The same is true for Tianhe’s seed production line and logistics distribution system. Lack of support from digital and intelligent equipment. and drones, which also require core algorithm support, have become the best entry point. In the future, DJI's agricultural drones, such as the T20, T30 and T50, will be so advanced that people today cannot imagine it. Various work scenarios, From the initial single spraying of pesticides, it has extended to the fields of crop topdressing, direct seeding of rice and rapeseed, grassland regreening, and feeding of fish and shrimp farming feed. Orchards, tea gardens and fields are filled with DJI drones. Guo Yang also knows something about its development path. It started from the aerial photography market. Once he had an idea, Guo Yang didn't hesitate. After returning to the office, we organized a small meeting to determine the investment direction in the drone field. Fengkai also carries out its own research simultaneously to accumulate experience in the development of core algorithms and to reserve talents. One meeting was followed by another. Yan Qun, who had been engaged in seed production and processing since the holiday, was also called over. On the other side were Guan Cheng and a young man with long bangs. Guo Yang recognized him at a glance, Zhao Rang from the testing group of Fengkai R&D Center.
We saw him at the harvest demonstration meeting in Yumen last year, and the Guwang corn combine harvester he was driving was also the subject of discussion this time. After everyone was in place, Guo Yang said, "If Tianhe wants to build its own corn seed production base, it must make up for the shortcomings of full mechanization of seed corn production." Yan Qun looked at the slightly younger Zhao Rang and hesitated slightly. "I also saw the Gushen corn combine harvester last year. It was really good and efficient, but the seed breakage rate did not meet the requirements." "The two production links of tasseling and harvesting are the key factors restricting the full mechanization of corn seed production." Guan Cheng said: "The harvester is fine, it can be improved on the basis of the Guwang, but the male extractor is more troublesome." "Since seed production companies cultivate a wide variety of seeds, there are also problems such as inconsistent cultivation specifications..." After discussing for a while, we still couldn't find a research and development direction for the male extraction machine. It can only be put on hold temporarily and replaced by manual labor. On the bright side, it is also providing employment opportunities to the local area and will have a greater social impact. "The Northwest Factory will also set up a research and development department to be responsible for the long-term development and update of corn production machinery. Guan Cheng, please send someone over." Guan Cheng pointed at the young man next to him and said, "I'm going to ask Zhao Rang to come over." Guo Yang and Yan Qun all looked at Zhao Rang in surprise. With his long side bangs, slim body, and black-framed glasses, he seemed a little unreliable. Guan Cheng seemed to understand what his boss meant. "Zhao Rang is a graduate student majoring in agricultural mechanization and automation at Northwest A&F University. He has unique ideas on the innovation of intelligent agricultural machinery and equipment." Zhao Rang also showed himself confidently. When he first looked at Guo Yang, he was stunned. Then I realized that I had seen him last year, but unfortunately I didn't recognize him then. Zhao Rang said: "I have some ideas. The mechanized development of corn must be combined with planting patterns, field management and cultivation techniques." “We have developed machinery that can adapt to different plots of land, different cultivation patterns and different growth conditions.” "We will need Mr. Yan's assistance in the future." Yan Qun said: "It should be." There was nothing much to say about Guo Yang. He was a novice when it came to agricultural machinery technology and would definitely listen to the professionals. ... For several consecutive days, Guo Yang spent his time in various meetings. We also discussed this year's work tasks with each other before the core team went on business trips to various places. In addition to agricultural production, Weiguang's investment is also beginning to adjust. Weiguang’s assets are mainly divided into three sectors: US stocks + Tencent + real estate stores. The global financial crisis of 08 was imminent, and Guo Yang was also aware that there would be a big bull market in China in 07. First overseas. In 2005, the United States also raised interest rates eight times in a row, and by the end of the year the Dow Jones Index once again approached 8 points.
Therefore, overseas assets remain profitable. Weiguang's original assets in the . stock market were approximately billion yuan, which turned into million yuan in more than a year, an increase of approximately 10%. Guo Yang’s strategy is for Weiguang to reduce its holdings in Microsoft, Amazon and other stocks and focus on Apple. The epoch-making first generation iPhone should be released in these two years, and the future will be most certain. It depends on the situation before the financial crisis, or simply not reduce holdings. Then there is the domestic situation, which has been adjusted since the beginning of the year. With a loan of 4 million yuan obtained by mortgaging real estate, he bought Tencent shares at an opportunity, while also lurking in A-share stocks such as finance, insurance, real estate, and consumption. Weiguang currently holds approximately million shares of Tencent listed on the Hong Kong Stock Exchange, with an overall holding cost of approximately RMB . Guo Yang took a look and saw that Tencent's stock price was still hovering below 10 yuan, and its recent situation was not very good. China Mobile launched Fetion. As the stock price is on a downward trend, Tencent has announced a $3000 million buyback plan. Weiguang’s shareholding in Tencent has reached . It has raised its stake once and now has to issue an announcement every time it buys 1%. It is also indirectly pushing up stock prices. According to Yang Cheng, the price-performance ratio is not high, but Guo Yang doesn't care. He says that the market is not optimistic about Tencent, and that is a market problem. What does it have to do with me, Guo? Just announce it. As time goes by, all companies have entered into a working rhythm. Guo Yang also took the opportunity to rest for a few days. His elder brother and sister-in-law came to Jiuquan and accompanied him for some fun. …… Jiuquan has bid farewell to the last spring snow, and February is about to end. After the cold wave, the temperature gradually warms up. A report attracted Guo Yang's attention. [Red alert from Shanggu City Industrial and Commercial Bureau: more than 100 tons of counterfeit brand-name seeds have entered the market] Guo Yang said to himself, "The reaction is still a little slow. 100 tons of seeds is not a small amount. At least several thousand acres of land will suffer a reduction in yield." Tianhe reported the matter more than ten days ago, but unexpectedly, some seeds still flowed into the market. Fortunately, a large number of counterfeit brand-name seed packaging bags were seized. It's not a wasted effort. At the same time, companies such as Denon have also stepped up their efforts to combat counterfeiting. Only Denghai Pioneer Company played a trick, and the technical service personnel in Northeast China and Huanghuaihai sent back the news. Denghai Pioneer Company adopted the same field demonstration model this year, and mainly promoted Xianyu 335. Xianyu 335 has a high starch content, so the purchase price at the processing plant is 2 cents higher per pound, which means it costs more than yuan per kilogram.
It is still far inferior to Tianyu No. 1, but much better than other varieties. The most cunning thing is that Denghai came up with a subsidy for single-seed seeders on its own, and also did the work of the agricultural machinery department. Xianyu 335 and Tianyu No. 1 also use single-grain sowing, so farmers also need to purchase single-grain seeders. However, many single-grain seeders are not included in the subsidy catalogue. In order to facilitate promotion, Denghai voluntarily provided subsidies for some simple and lightweight seed drills. For a while, the sales of Fengkai's precision seed drills in Northeast China and the Huanghuaihai region were affected. When Guo Yang saw the news, he couldn't help but laugh. Li Denghai is indeed quite capable. Denghai Pioneer also has strong execution capabilities. Field technical services are not easy. It took Tianhe two or three years of exploration to form the current system. However, Xianyu 335 can still only pick up the market that Tianyu No. 1 cannot cover. In the current corn seed market, Tianyu No. 1 stands out from the crowd. northeast. Jilin Province, located in the golden corn belt, is a battleground for the national corn seed industry. In Lishu County, there is a seed street with dozens of seed shops lined up one after another, and various eye-catching seed promotion posters are posted on the walls and doors. There are all kinds of varieties, such as Xianyu 335, Nongda 108, Zhengdan 958, Jinboshi, Yedan 13, etc. There are many farmers who buy and select seeds, but a quick observation will reveal that very few farmers buy corn seeds. The only exception is Qiushi Seed Company. A large red banner was hung on the door beam, "Look for Tianyu No. 1 corn seeds - exclusive agent!" Qiushi Seeds’ stores are crowded with farmers coming in one after another to buy seeds. All kinds of seeds were arranged in an orderly manner on the shelves, with both bagged and bulk seeds available. The shop assistant was also busy introducing the seeds. Another group of growers were queuing in front of the counter. There was no doubt that these people were here for Tianyu No. 1. After a while, it was the turn of the next tall farmer. The store owner asked, "How much do you want? Do you want it today, or do you want to make a reservation?" The farmer's name is Gao Jianjun, and he manages more than 1000 acres of land. He said with some embarrassment: "I want to order 1 kilograms of Tianyu No. . Can I buy it on credit first?" The shop owner frowned, "I definitely can't buy on credit. You have to pay a deposit for reservations, and you have to pay in full for the goods." "The grain hasn't been sold yet, so I have no money!" The shop owner looked at him expressionlessly. He was another person who was reluctant to sell his corn. Although the weather was bad last year, the planting area was large, resulting in the price of corn being only yuan per catty.
Many farmers held on to the harvested grain and were unwilling to sell it. I didn't expect that this year it was only yuan per catty. After a stalemate, the farmer at the back of the line became unhappy and shouted, "If you don't have money, go back and sell the grain first!" "Yes, it is not cost-effective to keep it at home. After being stored for so long, the corn kernels become drier." Gao Jianjun said indignantly: "MD, there is less water, why should it be sold at a lower price?" "Who can you blame? Who told you not to sell it last year?" Gao Jianjun asked back: "They were so cheap last year, why did you sell them all?" “It’s sold!” "With an annual yield of 1 kilograms per mu, who cares about a penny or two? Isn't that why you bought Tianyu No. ?" "Hehe, last year, thanks to Tianhe's technical service personnel, they helped me sell the grain at a reasonable price." The shop owner looked at the customers who were still waiting in line and advised, "Go back and sell the grain at a lower price. Now that there is enough Tianyu No. 1 in stock, prepare the seeds early." "Yes, there is no such thing as planting Tianyu No. 1 earlier." "Hurry up, don't delay." Gao Jianjun walked out of the team reluctantly, sighed secretly, but was unwilling to leave. He watched other farmers waving banknotes to buy seeds. "The seed money is yuan, and I paid a 5000 yuan deposit, so I still need 7000 yuan." "2 yuan." "3 yuan..." Gao Jianjun even saw the boss answer a phone call in the middle of the process. A farmers' professional cooperative wanted to ship kilograms of seeds. More than 900,000 yuan was transferred as seed money alone. He calculated that if the cooperative had planted Tianyu No. 9000 on more than 1 acres of land last year, the profit would have been about four to five million yuan. In fact, Gao Jianjun did not lose money, it was just that production was reduced last year and prices were still sluggish. Who would be willing to accept this? If I sell it at the current price of yuan, it is equivalent to working hard for a year and getting nothing. Gao Jianjun left helplessly. We can only sell grain. There is still one month before spring sowing in Jilin Province, but looking at the long queues now, if we wait another month, seeds may not be available for purchase. Outside the Qiushi Seeds store, farmers would occasionally load large bags of seeds into their cars. It is really the envy of other seed shops around. From time to time, someone would murmur. "What can we do if this continues?"
"I think all farmers will plant Tianyu No. 1 in the future, and everyone can just close down." "Xianyu 335 is OK, and some people buy it." "It's not enough to get stuck in the teeth." "Hey, you already have the Xianyu 335 brand, why don't you put up a Tianyu No. 1? Look how good the business is there." "Tianhe's anti-counterfeiting team is watching. If anyone dares to solicit customers in the name of Tianyu No. 1, the Industrial and Commercial Bureau will come to investigate whether you are selling fake seeds." "Tianhe Seed Industry doesn't give people a way to survive!" "Sell some other seeds." "Now we are relying on rice and soybean seeds to survive. Even Zhengdan 958 is no longer effective." At the same time, Xu Xiaoxue of Seed Industry Weekly and agricultural supply reporters from all over the country have noticed the strange phenomenon in the corn seed market this year. Most corn seed counters are deserted, and even the Zhengdan 958, a best-seller in previous years, has seen its market share shrink significantly. Some small and medium-sized seed companies are even more precarious. Only Tianyu No. 1 stands out. In some areas, the market share even reaches 70%! (End of this chapter)