"A pig company of Yunnan, Yunnan Agriculture Group."
She said, "The founder contacted me proactively and wants to meet with you."
Zhao Chen lowered his head and opened the file while recalling.
The first page was the company profile. He glanced at it and was about to turn back -
The words "Yunnan Agriculture Group" suddenly flashed in his mind.
He stopped.
He put his hand on the document and didn't move it again.
Chen Xi noticed something unusual about him:
"Zhao Zong?"
Zhao Chen did not answer.
He is thinking.
Previous Life's memory began to leak out as if it had been activated by something.
Yunnan Agriculture Group...
He had indeed heard of this name.
Around 2021, A-share will be launched.
Known as "Yunnan Muyuan", the breeding cost is second only to Muyuan Shares, and the model is exactly the same as Muyuan - self-reproduction and self-support, with a full industrial chain layout.
When it was launched, it was highly sought after by the market for a while.
"Zhao Zong?" Chen Xi called again.
Zhao Chen came back to his senses:
"What is the background of this founder?"
Chen Xi opened the notebook, obviously he had done enough homework:
"Cheng Jiaxun, born in 1965, 52 years old this year. South China Agricultural University graduated from the veterinary medicine major, with a major in pediatrics."
She paused:
"This person's experience is quite interesting. After graduating in 1990, he worked as a veterinarian in the Luliang County Animal Husbandry Bureau for two years, earning an iron rice bowl.
But in 1992, he resigned from the public office and went to Shenzhen to join Chia Tai Cargill, the feed giant owned by Thailand's Chia Tai Group, to do sales.
In 1999, I returned to Yunnan to start a business. Together with several brothers and sisters, I started from feedstuffs and slowly made it to where I am now."
Zhao Chen nodded:
"Where's the pattern?"
Chen Xi said:
"Same as Muyuan, it is self-breeding and self-raising. With modern pig houses and automatic feeding systems, the total cost is controlled at about 15.8 yuan/kg, which is only a little higher than Muyuan."
She paused:
"The most important thing is that they are rushing to launch A-share."
Zhao Chen's brows moved slightly.
Listed.
To be launched in 2021.
It is now July 2017.
Sure enough.
"Where is the listing process?" he asked.
Chen Xi glanced at the information:
"Prospectus was just disclosed in May 2017, and the current review status is 'Feedback'.
The sponsoring institution is Everbright Securities, which plans to list on Shanghai Stock Exchange and plans to raise 1.183 billion."
She raised her head and looked at Zhao Chen, with a trace of confusion in her eyes:
"Zhao Zong, there is something I can't figure out."
Zhao Chen looked at her:
"Say."
"They are now in the critical period of preparing to go public. Logically speaking, they should keep a low profile and try to avoid contact with external capital."
Chen Xi paused, "Why did you take the initiative to meet with us? What if the regulator notices it and thinks they are looking for a spare tire, which will affect the IPO review?"
Zhao Chen leaned back in the chair and waited for her to continue.
Chen Xi flipped through the information:
"And I saw their Equity Structure--Cheng Jiaxun family's total shareholding is 98.41%, which is a typical family business."
She looked up at Zhao Chen:
"This kind of Equity Structure, A-share review is inherently sad.
Now that they are actively approaching us, do they think they have a chance to go public, or... do they have no idea themselves?"
Zhao Chen looked at her and smiled:
"They didn't tell you the reason for the appointment?"
Chen Xi nodded:
"Just one sentence: I heard that Henglong is paying attention to the pig industry recently, and I would like to make an appointment to chat.
The other party said that Cheng Jiaxun has passed by Shan City recently and he could drop by for a visit."
She paused:
"But I don't think it's that simple. Not long after we let the news out, they took the initiative to contact us -
Either they really want to cooperate, or they regard us as potential competitors and check us out in advance."
Zhao Chen nodded:
"What else?"
Chen Xi thought for a while:
"In addition, there are not many leading enterprises raising pigs in the southwest.
Yunnan Agriculture Group is ranked number one among Yunnan, and if we, Henglong, really want to get involved in raising pigs, with our financial strength, we are likely to become their competitors in the future."
She looked at Zhao Chen:
"Cheng Jiaxun, a veteran who started from the front line, will understand this truth.
So this appointment may be both a test and..."
"Maybe I also want to make friends." Zhao Chen finished for her.
Chen Xi's eyes lit up:
"Yes. If he can win over us, at least there will be one less potential opponent;
If the negotiation goes well, we might be able to bring in our funds to help him solve some problems."
Zhao Chen was silent for a few seconds.
He remembered the message Previous Life.
In November 2017, Shennong Group IPO was rejected.
Public Offering Review Committee's concerns - high proportion of cash transactions, too concentrated equity, irregular dealer management...
These problems should have been exposed by now.
Cheng Jiaxun I probably know it better than anyone else.
"Chen Xi," he said, "Do you think they can go public this time?"
Chen Xi was stunned for a moment and thought:
"The shareholding is too concentrated, with family control exceeding 98%. This structure is very difficult for A-share.
And I read in the materials that their cash transaction ratio is not low, accounting for nearly 30% in the first half of 2017."
She paused:
"It stands to reason that this kind of problem is a flaw in the IPO review. Unless they can make major rectifications before the meeting, it will... remain suspended."
Zhao Chen nodded.
"Then it makes sense for them to come to us now."
Chen Xi looked at him:
"You mean..."
Zhao Chen said:
"They don't know how to go public. If they are rejected or it takes too long, someone will need to take over.
Those of us who have cash in hand are the best spare tires."
He paused:
"Moreover, Cheng Jiaxun is a pragmatic person. A pragmatic person will not put his eggs in one basket."
Chen Xi thoughtfully:
"So you plan to meet?"
Zhao Chen nodded:
"Make an appointment. The sooner the better."
He closed the document and his eyes fell on those words--Yunnan Agriculture Group.
Cheng Jiaxun.
Interesting.
Chen Xi turned to leave, but suddenly remembered something:
"By the way, there is another sentence in Zhao Zong, Cheng Jiaxun's information.
He once said, 'There are no shortcuts to agriculture, it is a marathon and must be done step by step'."
Zhao Chen smiled:
"The person who comes to us step by step shows that he really needs funds."
At eight o'clock in the evening, Zhao Chen returned to the Villa.
When Su Wantang put dinner on the table, Zhao Chen was still looking at the Yunnan Agriculture Group information.
"Eat first." Su Wantang put the chopsticks into his hand, "You have been looking at it all afternoon, aren't your eyes tired?"
Zhao Chen took the chopsticks and smiled:
"The last few pages."
Su Wantang sat down next to him and looked at the document:
"What's so special about this business?"
Zhao Chen thought for a while:
"The foundation is very good, but I guess it won't be listed on the market this time."
Su Wantang was stunned for a moment:
"Can't be listed on the market? Isn't that a disadvantage?"
Zhao Chen shook his head:
"It's an advantage for us."
He looked at the document, and there was something in his eyes that Su Wantang couldn't understand:
"If it were easy to go public, they wouldn't come to us at all. It's precisely because it's difficult that we have the opportunity."
Su Wantang thoughtfully:
"So you plan to wait until it fails to be launched before taking action?"
Zhao Chen nodded.
"How long do we have to wait?"
"I don't know." Zhao Chen said, "But it's worth the wait."
He paused:
"A pig company with an annual slaughter of 500,000 pigs and a cost control second only to Muyuan has not yet risen in valuation.
When it fails to go public and the market loses confidence in it, it will be the best time for us to take action."
Su Wantang looked at him and didn't ask any more questions.
She knew that this man had already made up his mind.