Lin Yinsun and Lin Feng and their son never thought that the reversal of the pig cycle in this round was so large that it made a big somersault.
In 1984, 20-year-old Lin Yinsun took office as the director of Linchuan Feed Factory. Since then, he has forged an indissoluble bond with agriculture.
"People-oriented, Zhengbang prosperous", these eight words are Lin Yinsun's motto, and also the commander of Zhengbang Group.Deeply cultivating agricultural industrialization, Lin Yinsun has built Zhengbang Group into a huge industrial group with over 70,000 employees worldwide and an annual output value of 100 billion.
Zhengbang Group is the leader of the top 100 private enterprises in Jiangxi Province, and Lin Yinsun has also become the richest man in Jiangxi.Beginning in 2020, Lin Yinsun handed over Zhengbang Technology (002157.SZ), the core asset of Zhengbang Group, to his son, Lin Feng.
However, Lin Feng's aggressive expansion strategy made Zhengbang Technology a complete failure.In 2021, Zhengbang Technology will suffer a huge loss of 18.819 billion yuan.This time, Lin Yinsun lost 17 years of accumulation.
Zhengbang Technology is facing a huge financial crisis.As of the end of the first quarter of this year, the company's asset-liability ratio was as high as 97.03%, close to insolvency.
Lin Feng is struggling to save himself. Zhengbang Technology joins hands with State Power Investment Corporation, a state-owned enterprise, to deploy 40 billion yuan of new energy.However, in this project of up to 40 billion yuan, Zhengbang Technology only acts as a "small landlord" who rents out resources such as roofs and land.
If Zhengbang Technology wants to turn over completely, I am afraid that it will have to wait for the pig cycle of strong prosperity.And can Lin Yinsun and his son survive until that moment?
The son inherits his father's business and expands radically and falls
In the field of agriculture and animal husbandry in China, in Jiangxi Province, Lin Yinsun's name is loud enough.He created a legend.
In 1964, Lin Yinsun was born in a poor mountain village more than 30 kilometers away from Linchuan County, Fuzhou City, Jiangxi Province.Although Lin Yinsun had a university dream, but his family was poor, his father chose a secondary school for him - Jiangxi Grain Industry School.
In 1984, 20-year-old Lin Yinsun became the director of the Linchuan Feed Factory, a company on the verge of bankruptcy, with about 20 workers and an annual output of only 6,000 tons of feed.After Lin Yinsun became the second director of the feed factory, he began to independently develop formula feed and reformed the production process and technology.Under his leadership, the feed factory turned losses into profits and expanded its scale, expanding into Yonghui Feed Company.In 1996, on the basis of Yonghui Feed Company, Lin Yinsun formally established Zhengbang Group Co., Ltd., and in May 1999, the headquarters of Zhengbang Group was moved to Nanchang City, Jiangxi Province.
After 38 years, Lin Yinsun has built a small factory into a huge enterprise group with an annual output value of 100 billion and over 70,000 employees worldwide.
According to the official website of Zhengbang Group, the group is divided into four major industries: animal husbandry, plant protection, food, and financial control. It has 700 subsidiaries in 29 provinces (cities and districts) across the country, and 20 companies in 10 countries along the “Belt and Road”.Among them, feed production, pig breeding and breeding, pesticide production, veterinary drug production, and breeding duck breeding are among the top 10 in the country.In 2020, Zhengbang Group achieved a total output value of 103.7 billion yuan, becoming the first private enterprise in Jiangxi with an annual output value exceeding 100 billion yuan.
There is also a set of data, which can be called the glory of Lin Yinsun.Zhengbang Group is a national key leading enterprise in agricultural industrialization and a national high-tech enterprise. It ranks 240th among the top 500 Chinese enterprises, 103rd among China's top 500 manufacturing companies, 72nd among China's top 500 private enterprises, and top 100 private enterprises in Jiangxi Province. 1st place.
It is with these good-looking data that Lin Yinsun won the position of the richest man in Jiangxi Province in one fell swoop.
Agriculture is seasonal and more cyclical, the most typical of which is the pig cycle.The financial crisis that once swept the world also had a great impact on agricultural development.
Judging from the 38-year development history of Zhengbang Group, Lin Yinsun and Sun Jun successfully passed the test and sought opportunities in crisis to promote the rapid development and growth of Zhengbang Group.
Zhengbang Group's core asset, Zhengbang Technology, landed on the A-share market in August 2007.Judging from its publicly disclosed operating performance data, from 2004 to 2020, although it encountered the pig cycle many times, it was mostly saved by Lin Yinsun. Only in 2013, the company realized the net profit attributable to shareholders of listed companies (referred to as "Net profit") lost 30 million yuan, and the rest of the year was profitable.
In 2020, Zhengbang Technology achieved an operating income of 49.166 billion yuan, a record high, a year-on-year increase of 100.53%, and a net profit of 5.744 billion yuan, a year-on-year increase of 248.75%.From 2004 to 2020, Zhengbang Technology made a total of 9.970 billion yuan.
For 30 years, Lin Yinsun has pursued a strategy - to make small companies into big companies, and big companies into everyone's companies.As everyone's company, the enterprise can last for a long time.
2020 is a turning point for Zhengbang Technology.This year, Lin Yinsun resigned from the management and gave up the chairmanship to his son Lin Feng.
For Lin Feng, Lin Yinsun was initially uneasy.In 2008, when Lin Feng returned from studying in the UK, he failed one after another in the grain and oil department and the supermarket project. Lin Yinsun dispatched him to the Phoenix Pig Farm to raise pigs.In 2015, when Lin Feng was about to turn 30 years old, Lin Yinsun gave him the position of general manager of Zhengbang Technology.Lin Yinsun also made Cheng Fangui, a member of the founding team of Zhengbang Technology, as the company's chairman to assist Lin Feng.In 2020, Zhengbang Technology's business performance reached a new high, and Cheng Fangui quit.
However, just one year later, Lin Feng fell to the ground and broke his blood.In 2021, Zhengbang Technology will suffer a huge loss of 18.819 billion yuan.
Zhengbang Technology has made a public review and suffered huge operating losses. Although there are pig cycle factors, it is also related to the company's excessive expansion.36-year-old Lin Feng, young and energetic, is too optimistic about the pig cycle.
Zhengbang's self-help may be difficult to turn around
Lin Feng's fall not only lost Lin Yinsun's 17 years of accumulation, but also caused the company to carry a heavy debt.
At the end of 2021, Zhengbang Technology's asset-liability ratio reached 92.60%, an increase of 34.04 percentage points from 58.56% at the beginning of the year.By the end of the first quarter of this year, the asset-liability ratio further rose to 97.03%.At the end of the period, the company's book monetary capital was 3.073 billion yuan, corresponding to short-term loans of 12.148 billion yuan, non-current liabilities due within one year of 4.011 billion yuan, long-term loans of 3.686 billion yuan, and bonds payable of 1.868 billion yuan. The total long-term and short-term debt is 21.713 billion yuan , of which, the short-term debt to be repaid within one year is 16.159 billion yuan.
Perhaps, it had already anticipated the financial crisis.In February this year, Zhengbang Technology announced that it planned to transfer its eight companies to the A-share company Dabeinong at a price of 2 billion to 2.5 billion yuan.
But the crisis that the market is worried about is still coming.On the evening of June 8 this year, Zhengbang Technology announced that due to the impact of the pig cycle, the company and many subsidiaries recently had some commercial bills overdue due to tight liquidity. As of the announcement date, the overdue outstanding balance totaled 542 million. Yuan, of which the overdue balance of Zhengbang Technology is 517 million yuan.Zhengbang Technology reminds that the company may face litigation, arbitration and other risks in the future.
Lin Yinsun, Lin Feng and his son also took new positive measures, that is, to help themselves.
On the evening of June 17, Zhengbang Technology announced that the company will work with State Power Investment Corporation to develop wind power and photovoltaics, and comprehensively develop and utilize smart energy.The way of cooperation is that SPIC regards Zhengbang Technology as an important strategic partner, makes a unified plan for the company's land and energy, and gives full play to its advantages in agricultural development, clean energy development, scientific research and development innovation, industrial technology, etc., and continues to increase Investment efforts, speed up the layout of photovoltaic, wind power, comprehensive smart energy and other industries, and strive to build ecological photovoltaic, wind power, distributed and centralized comprehensive smart energy of about 10 million kilowatts within three years, and the total investment is expected to reach about 40 billion yuan.State Power Investment Corporation provides clean energy and electricity for Zhengbang Technology, adopting the model of "self-generated and self-consumption, and surplus electricity connected to the Internet".
In response to the above-mentioned cooperation matters, market analysts said that from the perspective of the cooperation content and the current financial status of Zhengbang Technology, the cooperation project is estimated to be led by State Power Investment Corporation, with Zhengbang Technology participating, and Zhengbang Technology providing land and other resources to participate in the cooperation, and the real money invested. Don't expect much, and hopefully get a piece of the pie.In the view of this person, this cooperation, for Zhengbang Technology, will be an attempt with less investment and efficient use of resources, or it may help it form a new economic growth point.
In response to regulatory inquiries, Zhengbang Technology also stated that in view of the company's current financial constraints, the cooperation with State Power Investment Corporation is currently mainly promoted in the form of leasing. There are many space resources, sufficient sunlight, and natural solar energy, which can be fully utilized to develop green and clean energy such as photovoltaic power generation.In the early stage of the project, the investment and construction were mainly carried out by the State Power Investment Corporation. The company collected funds by leasing the roof, and there was no capital outflow. Through this project, cash backflow can be achieved. In the later stage, under suitable conditions, the two parties will gradually explore other models such as equity cooperation. .
It can be seen from this that Zhengbang Technology is only renting out resources such as land and roofs, and collecting rents, and is not transforming the company into the new energy field.There is no doubt that with this type of cooperation, even if the new energy project makes a lot of money, Zhengbang Technology can only obtain rental income from shareholders.
Of course, renting out resources such as land and roofs, and collecting rents to return blood will help resolve the liquidity crisis.
The bottom of the current pig cycle seems to have passed. In the second half of the year, especially the fourth quarter, pork prices are expected to rebound.I am afraid that the crisis between Lin Yinsun and Lin Feng's father and son can really be resolved only when a strong boom pig cycle is really ushered in.
