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Chapter 62 The reason for taking the path of mergers and acquisitions

This is a plane heading towards spring.

On the plane, except for Lao Jin, the leadership team of Tang Dynasty Beer, who was in charge of work at home, all flew to Qinwan to attend Qin Beer's 1997 Work Conference and Market Management Conference.

"Old Ma, my focus of work next year may be on Yangzhou," Qin Dong said with a relaxed tone. He, the fire-fighting captain, has successfully revitalized the Tang Dynasty beer, and the next unified Shaanxi, conquered the northwest, and annexed the northeast, forming the Qinbei Northern Dynasty. He can either participate in it in person or control it remotely.

However, although Hou Yong had already taken office in Yangzhou, he had the Tang Dynasty beer beer and jade in front. He Yongsheng, Peng Gaode and Qin Dong's expectation was to quickly rise into a prince in the South China market. In this way, with Qin beer in the middle, the Tang Dynasty echoed the north and south of Yangzhou, and the whole country's big chess game would be alive.

Ma Guoqiang, a man with a serious lack of pioneering spirit, is more than enough to maintain success.

"You are in charge of the overall work, Jiang Wei cooperates, and you will leave it to Zuo Ling technically, I'm relieved."

"Mr. Qin, thank you for your trust. I will not let you down." Lao Ma wanted to be the top leader, but he had a clear understanding of his abilities. Now Qin Dong gave him this world, with Qin Dong on top and Jiang Wei on the market below. He just needs to contact him.

"We are all from the Tang Dynasty," Qin Dong joked, "After meeting the Qin Dynasty, we must straighten our backs."

In the past, when Tang Dynasty Beer went to the headquarters for meetings, the headquarters had poor performance. Tang Dynasty Beer was also in debt from many parties. The headquarters complained that the Tang Dynasty had implicated Qin Beer, so the Tang Dynasty could not raise its head.

Now, although the life of the headquarters is still not easy, it is like a day. Although the Tang Dynasty still has debts, it has occupied the Xi'an market.

Qin Beer has already made a good start on the journey in 1997.

"Chairman He, General Peng..."

"Don't be polite, Zuo Ling, I've heard that there was a young chief engineer in the Tang Dynasty..." He Yongsheng, Peng Gaode and other leaders of the headquarters were very enthusiastic. The family met, the Qin army and the Tang army met, and there was endless things to say, and there was endless work to talk...

Hou Yong of Yangzhou Beer is also here. In 1994, in Yangzhou, Qin Beer spent 80 million yuan to acquire Yangzhou Brewery in the cold winter.

At that time, Yangzhou brewery had a production capacity of 50,000 tons and its capacity utilization rate was less than 40%. Qin Beer invested 40 million yuan to conduct technical transformation, and its production capacity doubled, but the market did not open. In three years, it had an additional 50 million yuan in debt.

Hou Yong has now had a way of thinking and is just waiting for a big fight in 1997.

The meeting began, with Qin Dong presided over.

"Dr. Qin, I'll just say something before the meeting," He Yongsheng interrupted Qin Dong, "Just one sentence, in the past year, Tang Dynasty Beer has undoubtedly achieved outstanding results. In just half a year, it has been very difficult to fully occupy the Xi'an market."

Everyone looked at Qin Dong. Although He Yongsheng's comment was short, his tone was full of pride.

Wow—

The audience burst into applause, and leaders such as He Yongsheng and Peng Gaode also looked at Qin Dong. Qin Dong had to stand up and bow to everyone, but the applause still did not stop.

"Dr. Qin, everyone's eyes are all sharp." He Yongsheng laughed loudly amid the warm applause.

Qin Dong smiled. He did not talk about Tang Dynasty more, but talked about the sales branch. "Sales company business personnel must everyone take the indicators, go out of the house, and get close to the market..."

"Next year, we plan to spend 20 million yuan, plan to establish 28 branches and seven offices throughout the year, and directly contact the market in person... to form a marketing system spread across the country!"

Qin Dong plans to manage the local market through these branches and offices, assist local distributors in promoting promotions, and manage prices, supply, distribution, advertising and payment recovery and waiting...

After Qin Dong finished speaking, Peng Gaode summarized his work.

"This year, we will get back our lost market. Based on the big strides last year, we will make another big move forward to prepare for the output of 1.4 million tons and the output value exceeding 10 billion yuan in 2000..."

Wow—

The middle-level cadres and employee representatives in the audience applauded, with the applause of affirmation of the three core leaders, as well as their hopes and longing for next year.

"This year, the Light Industry Federation will regard Qin Beer as the first of the four major companies to support, and in addition to Yanshan, Haizhu and Rong Beer, the Light Industry Federation hopes that the four major beer companies will give full play to their brand, quality, capital and scale advantages, with a total output of 4 million tons, accounting for 20% of the total output in the country..."

He Yongsheng's final speech, "Shanhai Province also listed us as the eight major companies that the province has key support, and provided ten preferential policies..." He continued to say calmly, "We and Rongbee should have a result in 1997..."

Um.

Qin Dong said nothing. He now has a sales company. The Tang Dynasty in the north and Yangzhou in the south. He also serves as the director of Qin Beer Factory. He is now important in Qin Beer Company.

If Rong Beer is incorporated into Qin Beer, this is what he wants to see...

...

At the end of the year, it seemed that the whole country was holding meetings everywhere, but the last Standing Committee of Qinwan was very special.

"Today, the Standing Committee will focus on an issue, specifically listening to the work report of Qinwan Brewery and solving some practical difficulties in the factory..." Secretary Yu Guosheng looked at He Yongsheng and Peng Gaode, and Qin Dong who was sitting quietly, "Yongsheng, you talk first."

Qin Dong also looked at Yu Guosheng. There is news now that Yu Guosheng wants to transfer from Qinwan and from mountains and seas. The wind has always been one step ahead of the formal procedures...

He Yongsheng held his glasses, but turned to look at his partner, "I am in charge of the inner and the outer side of the old Peng, so let Lao Peng report first."

Peng Gaode did not refuse. He worked together for several months, and the two of them seemed to have a tacit understanding.

"…The problem with Qinwan Beer is that the sails are very big and the boats are very small. The brand of Qinwan Beer is very famous, but including Erbet, the annual output of Qinbeer is only more than 200,000 tons.

In order to solve the problem of Qinwan Beer's unequal influence and size, we plan to use various capital operation methods such as mergers and reorganizations, bankruptcy acquisitions, joint ventures and factory building to establish beer production bases across the country."

Peng Gaode's speech was very passionate. Yu Guosheng and Mayor Qin both wrote in the notebook that the city held a meeting of the Municipal Party Committee for a factory, which is normal in Qinwan.

However, mergers and acquisitions and joint ventures all require real money. Before the secretary and mayor asked, Peng Gaode's answer was also very refreshing, "In 1993, Qin Beer raised 1.6 billion yuan from the capital market. In addition to spending 126 million yuan to introduce four beer production lines, it also spent 80 million yuan to acquire Yangzhou Beer and 80 million yuan to buy the Xi'an Tang Dynasty, which has a debt of 300 million yuan."

Everyone understood, that is to say, Qin Beer's account has clear that more than one billion lies in the bank.

Everyone present was also calculating the accounts. Although the accounts were old, they were related to Qin Beer's future acquisition. Moreover, Qin Beer can no longer withstand the tossing anymore. Everyone was very cautious, and the members of the Standing Committee listened carefully and made decisions very cautiously.

"In the past two years, Qin Beer has invested more than 200 million yuan in funds. This money could have been used to build a 100,000-ton brewery, but now it has only expanded its output of 40,000 tons. Not only has it not made money, it has lost more than 60 million yuan."

"But this does not stop us from choosing the M&A path, it has a lot to do with the industry attributes." Peng Gaode saw the expression on the faces of some Standing Committee members and immediately explained, "The carbon dioxide concentration of beer is high, and alcohol can dissolve a variety of organic matter. Glass bottles, as inorganic substances, are pressure-resistant and not easy to deform, and are most suitable for storing beer.

However, the heavy glass bottles and the problem of returning the bottles will be extremely costly. Therefore, if the beer produced in Qinwan is transported to other parts of China, the price will be outrageous, and purchasing a brewery locally will bring cost advantages..."

"We understand," the mayor interjected, "So, we must follow the path of mergers and acquisitions, but the target of mergers and acquisitions must be cautious." City senior official Yu Guosheng also nodded, but he did not speak, signaling Peng Gaode to continue speaking.

"Yes, Qin Beer now has the ability and funds to conduct mergers and acquisitions. The important thing is to choose a good merger and acquisition target. There should be no more examples of Yangzhou and Xi'an..."
Chapter completed!
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