Chapter 170 Yili The popularity of Chinese cabbage in the market did not affect Guo Yang's visiting the seedling factory and vegetable seed production base, Guo Yang returned to Jiuquan. Jiahe vegetable base will be built in the future, but not now. The next day, Guo Yang and his team embarked on a journey to Xinjiang Province. In addition to him, Luo Xiu and Xiang Tianshan, the group also included Ye Xi, manager of the strategic investment department, Ji Zhuowen, general manager of Hexi Dairy, and Huang Jianyuan from the finance department. 6 people in total. As one of the five major pastoral areas in my country, Xinjiang Province leads the country in terms of cattle numbers and milk production. However, the dairy processing sector has long been small and scattered, lacking national brands like Mengniu and Yili. This has always been a concern for Xinjiang Province. So in July 2002. When the Delong Group, which started out as an agricultural company and was known for its strong financial strength, entered the dairy industry in an all-round way, the Xinjiang Province regarded it as a chess piece that could quickly drive the development of the dairy industry in the province.

Delong also shouted out its slogan, "Two years is too long. Delong Livestock will become one of the top ten dairy companies in China this year." But in 2004, the Delong Group collapsed overnight and Delong Livestock also stopped production. Thousands of dairy farmers were forced to dump milk and kill their cows, and the Xinjiang provincial government was under tremendous pressure. Jiahe came here under the pretext of inspecting Delong Livestock. After arriving in YN City, he was warmly received by the local government. Its leader Huo Ping said with a smile: "It is better to meet in person than to hear about it. Mr. Guo is more energetic than he looks on TV. He is young and promising! Xinjiang has a simple folk customs and needs an enterprise like Jiahe!" After some greetings, Guo Yang spent another two or three days following him to various places to check out Delong Livestock's assets. Basically, there is no difference with the information. The Ili grassland, located in the western Tianshan Mountains, has relatively abundant rainfall and relatively rich pasture resources. What is even more rare is that the Ili River has clear skies, excellent water quality and very little pollution. The local brown cattle also enjoy a certain reputation. After entering the Ili River Valley, Delong Group invested hundreds of millions of assets to integrate the local dairy industry, and accelerated the construction of milk source bases in several surrounding counties with YN City as the center. For example, subsidies are provided to farmers who raise high-quality dairy cows, and embryos and frozen semen are provided to cattle farmers free of charge. At the same time, when a dairy farmer raises a cow, Delong guarantees a bank loan, allowing the dairy farmer to double the number of cows. Large-scale farming is encouraged by building modern milking parlors and milk collection points, and a number of milk collection trucks have been purchased. A complete cold chain is formed from milking to fresh milk transportation. With YN City as the center, the surrounding 300-kilometer radius is within the milk source radius of Delong Livestock. Invested in and built 7 dairy processing plants in Manas, Shihezi, Aksu, Bazhou and other regions. A beef processing plant, 4 high-yield demonstration bases with thousands of dairy cows, A breeding center. It has developed the high-end 'Tianshan' brand milk products and the mid-to-low-end 'Jia Li' milk brand.

Its daily output of liquid milk reached more than 100 tons before it stopped production, but Delong's main battlefield is milk powder production, especially bulk powder. The daily milk processing capacity reaches 600 tons. Its main customer is Shanghai Bright Dairy. Delong’s milk powder is shipped to Shanghai and then converted into milk by Bright Dairy. At the same time, in addition to the Xinjiang market, its products have also entered Guangxi, Yunnan, Shaanxi and other provinces and cities. Before the production was discontinued, that is, in 2003, the sales volume was 6382 million yuan. At the same time, on the northern slope of the Tianshan Mountains, there is competition from VV Group, Maiquer, and New Ole Dairy. After understanding all the assets of Delong Livestock, Huang Jianyuan from the Finance Department calculated a rough figure. "Boss, the current physical asset valuation of Delong Livestock is about million yuan, but there are million yuan of accounts receivable that are difficult to recover. All of these accounts receivable are related to Delong, including 1 million yuan from Modou Chuangji and 1500 million yuan from Modou Huayue. Both companies are Delong-controlled enterprises. In addition, there is an 8600 million yuan dairy trust plan. Taking into account financial liabilities, Delong Livestock is already heavily in debt.” After seeing Delong’s factory workshops and other physical assets, Guo Yang was initially tempted. But now, just a simple check can reveal so many problems. No wonder so many big companies are deterred. It's really a pit of fire. However, the local government wants Jiahe to take over as soon as possible. The relevant government team represented by Huo Ping approached Jiahe for negotiations many times and promised various preferential policies. At a meeting. Ji Zhuowen, general manager of Hexi Dairy, spoke on behalf of Jiahe, "Delong Livestock's total assets are around 6 million, but its net assets are almost gone." "We don't know how much debt Delong Livestock has, nor do we know the creditors' thinking. We dare not enter the market before we find out the bottom line of Delong Livestock." "Hexi Dairy wants to buy Delong's physical assets, not Delong Livestock's equity." But at the same time, Ji Zhuowen proposed another solution. "Or the Xinjiang provincial state-owned assets will take over Delong Livestock first, and Hexi Dairy will then acquire it from the state-owned assets." Huo Ping frowned, "It is definitely impossible for local state-owned assets to take over." The accounts between Delong Livestock and Delong Group have not been sorted out yet, and no one wants to get involved in trouble. The Delong Group has a hole of 40 to 50 billion yuan. If this plan was feasible, Delong Livestock would have been taken over by other companies long ago. But we really can’t delay any longer, as more than half of the dairy farmers’ cows were purchased with bank loans. The longer we delay, the more embarrassing the situation will be. The two sides were deadlocked for a while.

Guo Yang said at the right time: "What if Hexi Dairy leases the physical assets of Delong Livestock first, resumes dairy production first, and then discusses mergers and acquisitions and restructuring later." Huo Ping's eyes lit up. Leasing is indeed a viable solution. Not only does it solve the problem of collecting milk for dairy farmers, the rent can also be used to repay part of the debt. After having a direction, the two sides started more in-depth communication on this issue. Hexi Dairy also hired law firms and accounting firms to move into Yili to audit and verify the assets of Delong Livestock. …… During the audit, Guo Yang took Xiang Tianshan and Luo Xiu to inspect the reclamation site. For this purpose, a technical expert was specially invited: Liu Tingen. Liu Tingen and Xiang Tianshan are old acquaintances. Liu Tingen works at the Xinjiang Institute of Biology, Soil and Desertification and is also in his fifties. He looks like a little old man. Liu Tingen, who was sitting in the passenger seat, kept grumbling about Lao Xiang clinging to Jiahe. "Alfalfa No. 1 is a really good variety. I heard that its roots, stems and leaves can absorb salt, and its roots can also gather organic matter to improve the soil." "You are really lucky. I thought your life would be like that, but I didn't expect that you would become famous in your old age." "When the previous group of people heard about it, they all said that you were lucky to meet Alfalfa No. 1." "I've always been worried that you weren't doing well, but now that I see you're doing so well in Jiahe, I feel so upset." After hearing these words, Lao Xiang just laughed. It can be seen that the relationship between the two is very good. This was also the first time that Lao Xiang contacted his former network after arriving at Jiahe. Xiang Tianshan said: "You should tell us about the land reclamation here." Liu Tingen glanced at Guo Yang and said, "The current policy for land reclamation is not as good as before. In the past, the government gave 75 yuan per mu of land reclamation subsidies and 75 yuan of interest-free loans. At that time, pioneers from all over the country came to Xinjiang Province for cotton. Under normal circumstances, investing about 500 yuan to reclaim one acre of wasteland to grow cotton would recover the cost in two to three years, and a net profit of five to six hundred yuan could be made in the fourth year. All of a sudden, those unattended deserts sandwiched between the three mountain ranges and the two deserts became very popular. " Guo Yang asked: "What about now?" "Everything is gone, and land reclamation is prohibited in some places." Liu Tingen shook his head, his eyes full of memories. "In the past, many places were reclaimed wasteland indiscriminately. Some village cadres waved their hands and contracted out thousands of acres of wasteland, with land lease periods ranging from 30 to 50 years. But in fact, land over 1 mu must be approved by the relevant departments of the State Council, and nearly one-third of land reclamation projects in Xinjiang Province have not yet obtained land reclamation permits. " After listening to Liu Tingen's story and corroborating it with his experiences in his previous life, Guo Yang realized that this old man was quite capable and had a very accurate grasp of policies. In his previous life, Guo Yang had come into contact with many farmers who had reclaimed land for several years or even decades, but the land was forcibly reclaimed by local authorities for various reasons.

Many people have hired lawyers to file lawsuits and even posted them on various online platforms. Looking at it this way now, we can only say that neither side is a good guy. The individual is enriched, the collective is harmed, and the country is forgotten. What was cleared was not wasteland, but forest land, desert vegetation and grassland. Some even turned extremely valuable forest land and high-quality grassland into wasteland. The Gobi Desert, which is truly treeless and grassless, is rarely developed. The car went further and further off the track. After entering the Gobi Desert, Luo Xiu slowed down. The destination of this trip is QH County, Altai Region. Because this desert is home to Asafoetida, it is also called the Asafoetida Gobi. At first glance, the soil in the Asafoetida Gobi Desert is relatively good, the light is strong, and a lot of green plants grow. Several people got out of the car, and Guo Yang touched here and looked there with satisfaction. "That's it." Liu Tingen muttered, "I don't understand." "There are no large areas of first-class wasteland suitable for farming in Xinjiang, but there are still more than 6000 million mu of second-class wasteland suitable for farming." "Why did you choose the Gobi Desert?" Guo Yang looked at the vast Gobi Desert, which was emitting a moving glow under the sunlight. It was as if I saw the Gobi Desert becoming an irrigation area and the wasteland turning into an oasis. He smiled and said to Liu Tingen: “But you told us that the Yili region is prone to soil erosion.” "But the soil layer in the Asafoetida Gobi is thin and easily salinized." Xiang Tianshan also laughed, "Muhe has never been afraid of salt and alkali." Liu Tingen was stunned. There were better wastelands to take, but he had to come to this remote place to get land. What is the logic? It is necessary to show the role of Alfalfa No. 1, right? Liu Tingen continued to remind, "There is a shortage of water here. If we want to deal with salinization and agricultural development, we need to build a complete drainage system, and a protective forest network is also needed." (End of this chapter)