"Agricultural material market capacity of over 1 trillion dollars a year in China, which accounted for about the amount of fertilizer 70%. Huge market demand and the Government's support policy, creating sales platform covering the rural markets throughout the country there are a lot of markets and business opportunities. "On March 31, the flourishing agriculture, Deputy General Manager of Wu Qiang said in an exclusive interview with this reporter.
The enterprise profit and trade channels. After more than two years after the layout of, known as China's first joint-stock of agricultural material circulation company flourishing agriculture, announced on March 25, Shandong Jincheng coal dahua Mingshui, Shandong Luxi chemical industry, agricultural fertilizer enterprise in Hubei ezhong chemical three models also will be participating in its production and marketing division.
"Reducing the pressure on our sales and marketing division mode. "On April 1, Mingshui, Shandong Jincheng coal dahua insiders who asked not to be named told reporters, in fact, currently there are a lot of similar channels of trade Enterprise Professional, companies are selected, only reached cooperation intentions with the flourishing agriculture.
The people, in the fertilizer business channel for 2009 years after release, intensification of the chaotic situation brought about a price war, and production enterprises and its upstream. At the same time, large trade channels "entrance fee", and increased marketing costs.
"Just like home appliances manufacturing enterprises to Gome, suning, Northeast has a large regional distributors do. "The person said.
1-PS mode
Flourishing agriculture Division of production and sales of its build State, known as the PS model, manufacturer specializing in product research and development, production, logistics, regardless of market problems; the spirit within its national sales platform, developing agriculture import manufacturers of products, and is responsible for nationwide sales, management, marketing planning, marketing, and so on.
Wu Qiang said, taking into account the agricultural industry of own resources, RADIUS restrictions, brand recognition, and so the actual status in the area of transport, flourishing agriculture launches PS mode in order to get recognized by the upstream Enterprise. "Profit from the main upstream Enterprise week transfer costs, marketing support, and contact the product made after a certain number of dealers price difference. After a period of time, we are also prepared to rely on sales commissions get paid. ”
According to Wu Qiang, flourishing agriculture has therefore profits: he claims that in 2009, the company achieved sales of more than 30 million Yuan, first quarter 2010 sales revenue of billions, "our 2010 year is expected to be more than $ 400 million".
In his view, this will replace the current farm fertilizer manufacturer and wholesaler of loose alliances. "(Manure production) also has its own network of sales, wholesale relationships is simple. "Hubei ezhong chemical said on this, the company's own channels working well, do not want to evaluate whether developing agriculture and spirit of cooperation to a certain extent, reducing the company's autonomy.
Wu Qiang Express, now on for zero conflicts similar to the GOME and gree still too early. "(Farm fertilizer production enterprises) have not fully showing the fear that at the present stage, after all, of agricultural material industry belongs to the resource industry, demand for mineral resources is very high. Just upstream of the enterprise is not good for the market, we are interdependent relationship. ”
He stressed that, in terms of channels of control spirit strong farmers ' associations some, but it reflects the Division of professional cooperation.
2-channel chaos
"Pricing activities requested by the channel itself paying agricultural fertilizer production enterprises, in fact is the current situation. ”
Shandong Mingshui Jinmei dahua Insider explained above, in the decision of the State Council on further deepening the reform of chemical fertilizer circulation after, in August 2009, issued, lift the fertilizer management, attracting more private capital profit fertilizer Terminal, consequences of price war intensified, and pay channels require producers of results.
That said, from the point of view of producers, reduced levels of price war seems to be useful and, in addition, foster "agricultural trade company" is also the Government's target. In March 2009, the Ministry of Commerce, the national development and Reform Commission, Ministry of finance, the Ministry of agriculture from eight ministries jointly issued, required make great efforts to promote the construction of agricultural material circulation network, improve agricultural material circulation system, 3-5 years, creating sales exceeding billions of agricultural material circulation enterprises.
From the spirit of Agriculture announced cooperation with enterprises, its also far share of industry around. For example, as one of its partners listing of Luxi chemical, less than 10 billion in its 2009 sales, account for the previously mentioned 1 trillion market size ratio is very low.
Wu Qiang explains, after the company was formed in June 2008, the main work is to improve the network, improve dealer service North of the Yangtze River system and research of Shaanxi "direct action Terminal in villages and towns" chain model, build management and core competence within the company, this has led to the flourishing agriculture in the second half of 2009 to strengthen cooperation with the enterprises in the upper.
For breakthrough and out, wuqiang recognized, due to fertilizer products does not complex (is single of nitrogen, and phosphorus, and potash material and above three species elements of compound fertilizers), does not exists as appliances chain as to for new products of exclusive agent right competition of problem, so regression to price advantage problem: "in general class agricultural fertilizer products in the, due to Prime Hing agricultural leading with large of dealer and procurement scale, so its sales of agricultural fertilizer products than up other of regional agents has price advantage. ”
He said the blueprint for the future. "The prime objective of developing agriculture is agriculture industry chain sales platform, and not just fertilizers, but we would like to make scale manure, doing fine before you select the right kind of opportunity to improve the category. "He refers include farming tools, seeds and other fields.
3-capital hunt
PS mode of flourishing agriculture, has been in United States NASDAQ OTCBB listing of poly-nuclear holdings Group (OTC:UCHC) of all ages.
Data show that the poly-nuclear holdings is committed to integration and investment potential industrial leading enterprise in China, positioned for IPO incubator. On December 23, 2009, the company announced that the three natural persons of the original shareholders, including Wu Qiang 51% stake in the phased acquisition on flourishing agriculture.
Is the price of the acquisition, Easeway Corporation (wholly-owned subsidiary of poly-nuclear holdings) in two stages to 11 million shares of developing agriculture for spirit of the original poly-nuclear holdings stock developing agriculture prosperous times 51% shares of the company held by the shareholder.
Poly-nuclear controlled public relations Department told reporters that, developing agriculture on Prime acquisition also experienced a lot of competition. "Developing agriculture prosperous times in preparation for the beginning of a lot of investment bodies concerned, Shenzhen branch investment group is the most active one, because after the other executives, and other reasons not to practical cooperation. ”
Poly-nuclear holdings because of this United States investor to Chinese agriculture stocks hot hands. According to the statistical reporter, Eric Teck (China), fertilizers (CAGC.O) share price since September 2009 less than US $ 7, rose to us $ per cent on March 31 this year; over the Beijing Olympics Ruijin seed industry (SEED.O) share price doubles from $ 4 to $ 9.99. In addition, China Green agriculture (CGA.N), China Organic Agriculture (OTC:CNOA), Ai Gefei company (FEED.O) an increase in the share price over the same period is also very impressive.
Developing agriculture and poly-nuclear holdings on the flourishing age of profit has developed a gambling scheme.
With former to United States SFC submitted of 8-K file, poly nuclear holding requirements Prime Hing agricultural be Yu 2010 results in the, sales income Yuan 600 million Yuan above, net profit Yuan 48 million Yuan above; be Yu 2011 results in the, sales income Yuan 1.4 billion yuan above, net profit Yuan 110 million Yuan above; be Yu 2012 results in the, sales income Yuan 3 billion yuan above, net profit Yuan 240 million Yuan above.
Flourishing agriculture does not finish 50% per cent in annual net profit, "Poly-nuclear holdings to flourishing agriculture each year of outstanding 10% in net profit on deduction of developing agriculture that should be delivered to the prosperous times of the year the original poly-nuclear holdings of stock 10% of proportional deduction of shareholders".
Wu Qiang said about this, flourishing agriculture target to be completed in 2012-outs.
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