No wonder netizens have called them "super money-making machines", earning 100 million yuan a day!
In 2020, Mu Yuan surpassed Wenwen to become the new "pig king" of China A-shares, and as the controlling shareholder and actual controller of Mu Yuan, he was more and more chased by various media under the aura of the richest man in Henan.
He once said, "Every fluctuation of the pig cycle is an upgrade of the industry. Low cycle and epidemic situation will make weak enterprises and farmers completely withdraw, but it is an opportunity for profit and development for advantageous enterprises. "
Then, how did Qin Yinglin start from 22 pigs and go through one pig cycle after another to develop Mu Yuan into the largest large-scale pig breeding enterprise in China?
First, he dares to gamble.
In China, the pig industry is known as the "pig cycle" of "making a year, leveling a year and losing a year", that is, the pig price rises—a large number of retail investors enter the market—the supply of pork exceeds demand—the pig price falls—a large number of retail investors leave the market—the supply of pigs tightens—and the pig price rises.
Behind the "pig cycle" is a highly competitive retail market in China pig industry, with sharp fluctuations in supply and demand. In view of this phenomenon, Qin Yinglin began to carry out large-scale farming from 1995 to resist the risk of periodic fluctuation of pig prices.
He has never been a man with small fortune.
1989 graduated from Henan agricultural university majoring in animal husbandry and was assigned to work in the state-owned meat joint factory in Nanyang, his hometown. Three years later, he resigned and started a business with his wife, Qian Ying, who is a veterinarian.
In 1990s, the income of enterprises in Qin Yinglin exceeded10 million yuan. In Nanyang, at that time, this was a great event. But he is still expanding, and he will definitely become the industry leader.
He bet that at the most difficult time of the industry, others couldn't stand it, and Qin Yinglin was still expanding countercyclically.
From 2008 to the first half of 20 10, pork prices continued to be low. Liu Yonghao, chairman of New Hope, even openly asked: "The pig price cycle is weakening, the pig price is falling and the feed cost is rising. Everyone basically didn't make any money, did they? "
In this context, the five-year plan of Qin Yinglin for 20 10 is 5-8 million heads.
This style is very similar to Buffett!
In 20 10, Muyuan slaughtered 359,000 heads; 20 14 years to reach18.59 million; In 20 18, it exploded to1101.1ten thousand.
In 2020, Muyuan sold 1.8 1. 1.5 million pigs.
Completely doubled expansion.
Second, he dares to borrow.
Wang Jianlin once said, "It takes several hundred million to build a pig farm with100000 pigs. How much will it cost us to build a five-star hotel? I didn't expect the pig farm to be so expensive. "
As a result, Wanda gave up entering the pig industry.
In the past, farmers raised pigs because they thought they made money. When they actually settled accounts, they didn't take into account the cost of fences, manpower, waste disposal and so on. Once these are included, they will find that the profit margin is already very low.
Coupled with the influence of 20 18 African swine fever, farmers without financial strength almost collapsed under the impact of market risks.
A sow's 2-3 square meters bed costs as much as 4000 yuan. Large-scale pig farms need to establish a complete epidemic prevention system. Take the pig breeding project of1100,000 as an example, the fixed capital investment is about 654.38+0 billion yuan, and 500 million yuan needs to be reserved as working capital.
Capital barrier is the first threshold, followed by technical barriers and technical personnel barriers in breeding technology, disease prevention and control, drug residue control and so on.
Once bank loans and the company's own profits can't cover the funds needed for enterprise development in time, the company's capacity expansion will also be limited because of the single financing channel, the pig cycle and the government's macro-control.
Qin Yinglin, chairman of Mu Yuan, once said publicly: "People who raise pigs better than Mu Yuan abound. Why can I go public? Why are we growing so fast? After listing, I reflected for a long time before I realized that what really supported our development was insisting on paying back bank loans. "
Agricultural Bank of China went public in 2006, and plans to divest some assets and package them for disposal.
At that time, Mu Yuan's stock loan in ABC was 25.4 million yuan. In fact, it can be exempted after trying to improve the program; However, Qin Yinglin insisted on repaying the loan and paid it off in full by the end of 2007. This move won the trust of the financial sector and the "exceptional" support in the future.
20 10 Without any collateral, many banks such as Agricultural Bank, China CITIC Bank and Agricultural Development Bank offered credit loans of 600 million yuan.
This laid a solid foundation for Muyuan's expansion before listing.
Four years later, Muyuan was listed on Shenzhen Stock Exchange, which broadened the financing channels.
Third, he dares to vote.
First of all, the geographical location of aquaculture enterprises is very important.
Muyuan is rooted in Henan, the main grain producing area in China. Judging from the influence of temperature on the survival rate of piglets, the influence of region on the cost of feed purchase, and the loss of transportation materials, the animal husbandry source has the advantage of "geographical location" before the southern pig enterprises such as Wen.
What's more, in recent years, China has strengthened the management of pig-raising areas, given strong support to Henan, Hebei, Heilongjiang and other provinces and cities, and imposed regional restrictions on pig-raising in cities with water networks in the south.
Secondly, Mu Yuan has been optimizing its investment in aquaculture.
Since 2009, we have applied for patents, and now we have obtained 92 patents, mainly focusing on the construction of modern farms and pens, artificial climate, breeding equipment and so on.
It is reported that its intelligent team exceeds 1 1,000 people. In addition to the personnel in charge of automatic control, there are professionals in the fields of electricity, machinery, communication and algorithm. Technology, production, nutrition and veterinary departments are all involved, and they are inter-departmental teams.
On June 5, 2020, when investors asked Muyuan Co., Ltd. how many sows each breeding pig can manage, Muyuan's answer was: 1 breeding pig can raise 2,700-3,600 pigs at the same time.
Far beyond the efficiency of Wen's family farm as the basic unit to raise hundreds of heads.
Under the dual advantages of region and mode, Mu Yuan's excellent cost control ability has helped it go through one pig cycle after another: maintaining the lowest complete cost in the industry, domestic free-range pig farmers 13~ 15 yuan, other A-share pig enterprises 12 yuan, but Mu Yuan only has11.
In terms of sales, Qin Yinglin's reputation of resolutely not using clenbuterol makes the price of Muyuan pig 0. 1 yuan -0.2 yuan/kg higher than the average market price.
He can make money when others lose money, and he can make big money when others make small money.
Mu Yuan stands out among many pig enterprises because of its faster capacity expansion than its peers and stronger profitability during the upward period of pig prices.
Fourth, he dares to expand countercyclically.
According to the data of the Ministry of Agriculture and Rural Affairs, the average price of live pigs in the first half of last year was 33.9 yuan/kg, up 136.95% year-on-year. In terms of wholesale price, since May 2020, the price of live pigs has continued to rise to 48.39 yuan/kg in August, which is the highest average wholesale price in last year 1 month.
Watching "the price of live pigs rebounded sharply" rushed to the hot search, netizens teased one after another: this year's pork sausage is a bit more noble.
Affected by this, domestic pig listed companies collectively performed brilliantly:
654381October 23rd, Luo Niushan announced the 2020 annual performance forecast. It is estimated that the company will achieve a net profit of 88 million yuan-1020,000 yuan in 2020, a year-on-year increase of 192.96%-239.57%.
On October 25th, 65438/kloc-0, Tang Renshen released the annual performance forecast for 2020, and it is estimated that the net profit attributable to shareholders of listed companies will be 900 million yuan-110 million yuan in 2020, with a year-on-year increase of 344.76%-443.60%.
On October 26th, 65438/kloc-0, Tianbang Company released the annual performance forecast for 2020, and it is estimated that the net profit will be 310.50 billion yuan to 3.3 billion yuan in 2020, with a year-on-year increase of 3,037.37%-310.86.77%.
Behind the soaring performance is the environmental protection policy and the reconstruction of the relationship between pork supply and demand by African swine fever.
Fecal pollution caused by pig industry has been criticized repeatedly. In 20 14 and 20 15, the Regulations on Prevention and Control of Pollution in Livestock and Poultry Scale Breeding and the new Environmental Protection Law were promulgated one after another, and small and medium-sized pig farms that did not meet the environmental protection policy withdrew from the domestic market.
However, compared with the new environmental protection policy, non-plague is the main factor of this round of pig price increase.
It is highly contagious and has a high mortality rate, and there is no effective vaccine at present. Non-epidemic diseases lead pig farmers to slaughter pigs on a large scale ahead of schedule and reduce the scale.
From August 2065438 to August 2008, the first African swine fever was diagnosed in China. Up to now, nearly10.2 million infected pigs have been culled nationwide. In 20 19, the number of live pigs was 3 1 10,000, down by 27.5% year-on-year; 540 million pigs were slaughtered, down 265,438 0.6% year-on-year, and the number of pigs slaughtered decreased by 654,38 0.5 billion compared with the previous year.
African swine fever has accelerated the elimination of backward production capacity, but it has provided a window for rapid development of animal husbandry:
On the one hand, the self-breeding and self-supporting mode of the pastoral source ensures the safety of the sows in stock, and it is not necessary to screen sows like cooperative farms, thus providing enough piglets for slaughter.
On the other hand, Mu Yuan has always ignored the pig cycle expansion: in 2020, Mu Yuan will set up at least 93 subsidiaries, Sun Company and 6 joint ventures. Among these 99 companies, most of their main businesses are related to the pig industry chain, and a few are technology companies and finance companies.
In July, 2065438+2009, on the dialogue program of CCTV, Qin Yinglin once said that he had experienced panic and bitter struggle in the face of African swine fever, but he still won.
2 1 The list of the top 500 listed companies in China released by the data news lab shows that Muyuan ranks 60th with a market value of 289 billion, and Wen ranks with116.2 billion.
Mu Yuan plans to slaughter 50 million pigs in 20021year, which is the sum of Zhengbang technology and new hope.
Qin Yinglin is still expanding.