Xu Yong's brow moved slightly.
He has worked as Independent Director in other companies for many years, but this is the first time he has encountered this situation--
Why should issues that do not require a vote be discussed on Board of Directors?
Shen Jue's eyes flashed with amusement.
She vaguely guessed something.
Zhao Chen didn't explain, just looked towards the side door:
"Wantang, please."
Su Wantang stood up, picked up another stack of materials, walked to each director, and put down one copy.
Shen Jue Open the first page.
<China Live Pigs Breeding Industry Analysis and Investment Opportunities Research>
Her brows raised slightly.
Raising pigs?
Xu Yong also saw the title, with a slightly subtle expression.
Sun Zhengping turned over two pages and raised his head with doubts in his eyes.
Zhao Chen waited for a few seconds and everyone turned a few pages before speaking:
"The material you have in hand is the first draft prepared by Director Chen Qiming and Assistant Chen Xi."
He paused:
"I want to discuss a question with you--
Will there be a rise in pork prices in the next few years?"
Meeting Room was quiet for a moment.
Shen Jue closed the material and looked at him:
"Chairman Zhao, are you serious?"
"Seriously." Zhao Chen said, "I asked the team to do preliminary research and there are several key data."
He walked to the whiteboard and picked up a marker:
"First, the cost of breeding."
He wrote down a number:
"15.5 yuan/kg"
"This is the full cost of Muyuan Shares last year. The industry average is between 16.5 and 17 yuan."
Second number:
"43 million heads"
"This is the number of Sows of Breeding Age in the country as of last month. It is about 7% higher than the normal number."
He turned around:
"On the surface, production capacity is still high. But everyone pays attention - since last year, feed prices have been rising.
Corn and soybean meal have increased by more than 20%."
He put down his pen:
"The cost of breeding has increased, and small retail households cannot bear it. In the past year, more than 300,000 retail households have quit farming."
Xu Yong pushed up his glasses:
"Chairman Zhao means that the supply side is being cleared?"
"Yes." Zhao Chen said,
"Retail investors have withdrawn and supply has decreased. But demand is still there. Coupled with the transmission of feed costs, pork prices will rise sooner or later."
He paused:
"I judge that in the next two to three years, there will be an obvious wave of Pig Cycle upward trend."
Meeting Room was quiet for a few seconds.
Shen Jue looked at him with something complicated in his eyes.
This man just convinced them to sell their property company, and now he wants to discuss raising pigs?
Sun Zhengping spoke in a calm tone:
"Chairman Zhao, even if the price of pork will rise, what does this have to do with Henglong?
We are a real estate company, not a breeding company."
Zhao Chen nodded. "Director Sun is a good question.
This is exactly what I want to discuss with you - if we want to participate in this market, how should we participate?"
He wrote three options on the whiteboard:
Option A: Build your own farm
Option B: Secondary Market buy stock
Option C: Strategic Investment unlisted pig company
"Build your own breeding farm,"
He pointed to the first option,
"The advantage is that we understand construction and the costs are controllable.
The disadvantages are that it is heavy on assets, has a long cycle, and has no breeding experience."
"Secondary Market buy stocks," the second option,
"It is asset-light and can be realized quickly, but the premium is high. Muyuan's current price-to-earnings ratio is 35 times, which is equivalent to overdrawing all the growth in the next three years."
"Strategic Investment unlisted enterprise," the third option, "is somewhere in between.
You can find companies that have technology, a team, but are short of funds, and we will invest money, exchange shares, and assign directors."
He put down his pen and looked at everyone:
"Three options, each has its own advantages and disadvantages. I can't make up my mind at the moment."
He paused:
"I brought it out today because I want you to go back and think about it carefully. Next time Board of Directors, we will discuss it formally."
Shen Jue leaned on the back of the chair and raised the corners of his mouth slightly:
"Chairman Zhao, you are asking us to do our homework."
Zhao Chen looked at her:
"Director Shen Don't want to do it?"
Shen Jue laughed:
"Do. Of course."
Xu Yong turned over the materials in his hand and raised his head:
"Chairman Zhao, this material has very solid data.
I would like to ask, was it prepared by Assistant Chen Xi or Director Chen Qiming?"
Zhao Chen glanced at Chen Xi.
Chen Xi answered:
"I am responsible for the macro data and capital market part, and Mr. Chen is responsible for the industry and cost data. We divide the work."
Xu Yong nodded:
"Very good. The data sources are clearly marked and the logic is clear. I'll go back and take a closer look."
Sun Zhengping also nodded:
"Since Chairman Zhao wants to hear your opinion, I will go back and think about it."
Zhao Chen looked at Song Zhongping:
"Mr. Song, what do you think?"
Song Zhongping didn't say anything for a while, then he spoke:
"Chairman Zhao, I work in engineering. I don't understand pig raising.
But since you brought it up, you must have a point. I listen to you."
Zhao Chen laughed:
"Mr. Song, don't just listen to me this time. Next time Board of Directors, everyone has to speak."
Song Zhongping was stunned for a moment, and then smiled:
"Okay, then I'll take a look when I get back."
Zhao Chen scanned the entire audience:
"That's it. Next time Board of Directors, we will discuss it."
He paused:
"The meeting is dismissed."
When returning to the office, Chen Xi and Zhang Qingxue followed behind.
Su Wantang has made tea.
"Zhao Zong," Chen Xi couldn't help but ask, "You mentioned raising pigs today on purpose, right?"
Zhao Chen sat down on the sofa and picked up the tea cup:
"What's intentional?"
"Let those directors go back and think about it." Chen Xi said,
"This way, they will be prepared for the next meeting. They will not be shocked by your data like today."
Zhao Chen laughed:
"You do have quite a lot of confidence in me."
Chen Xi said seriously:
"It's not about having confidence, it's about understanding you. You never fight an unprepared battle."
Zhang Qingxue pushed up his glasses:
"And you specifically stated that 'no vote is required' today, just to give them a signal - there is no rush on this matter and they can think about it slowly."
Zhao Chen nodded:
"Yes. Letting them go back and think about it is much more effective than forcing them to express their stance at the meeting."
He paused:
"Raising pigs is different from selling property. Selling property is a top priority, while raising pigs is a strategic plan. There is no need to rush."
Chen Xi nodded thoughtfully.
Su Wantang sat down next to him and asked softly:
"You already have the answer in your mind, right?"
Zhao Chen looked at her without denying it.
"Among the three options, which one do you prefer now?" Su Wantang asked.
Zhao Chen was silent for a few seconds:
"It's the same answer as before."
"Strategic Investment?"
"Yeah." Zhao Chen said,
"Self-construction is too slow and buying shares is too expensive.
It's most cost-effective to find someone with skills and a team, we invest money and they do the work."
Su Wantang nodded and did not ask any more questions.
Chen Xi suddenly remembered something:
"Zhao Zong, in that material, I included a piece of data - United States The concentration ratio of the pig industry.
The top ten breeding companies have a market share of more than 50%. In China, it is only about 20%."
Zhao Chen looked at her:
"What do you want to say?"
Chen Xi said seriously:
"I think that in the next few years, the domestic breeding industry will also follow this path. Retail investors will withdraw and leading companies will concentrate.
If we invest in a potential pig company now and wait for it to grow bigger, we will earn not only cycle money, but also growth money."
Zhao Chen looked at her with a hint of appreciation in his eyes:
"From this angle, Board of Directors can say it next time."
Chen Xi laughed:
"Then you have to prepare well."
At this time, Chen Xi's phone suddenly rang.
Leave the office and get connected.
Chen Xi answered the phone, said a few words, and the expression on his face lit up visibly.
After hanging up the phone, she almost ran back to Zhao Chen's office without knocking on the door:
"Zhao Zong, good news... good news..."