Chapter 697 692. First Financing

Regarding Director Xie’s questions.

Luo Yihang briefly talked about his plan.

Expand the application scenarios of Tangdundun sweet potatoes, explore new directions, create a brand and enter the field of deep food processing.

At the same time, it is also about cultivating the market and establishing habits for consumers.

It will be very helpful for the Tangdundun sweet potatoes to enter the farmlands of ordinary farmers in the future, and after a season of hard work, they can have a good harvest and sell them smoothly.

The key is to sell it successfully.

Growing agricultural products is one thing, but how to sell them after they are grown has always been a big problem.

However, if you want to cultivate the market and establish a brand, it will not work if you have a small number of products.

Luo Yihang did not hide it and told his thoughts. He wanted to be one step ahead, to have the advantage of being the first, to be the first to try something new and to get the fattest bite.

Director Xie understands this very well. There is no such thing as doing nothing without benefits. It is reasonable for others to take benefits. A win-win or multi-win situation is the real win.

However, although he understands and agrees, Director Xie still feels that the risk is too great.

"Mr. Luo, you have to think it through. The investment of 30,000 acres is not small. If something goes wrong, the loss will be too great."

Luo Yihang nodded repeatedly upon hearing this, "That's right, 30,000 acres of land has cost tens of millions of dollars. I asked you to come mainly to think about how to avoid risks."

The planting cost of the experimental field is relatively low. The seedlings are our own, so only the cost price is calculated. The land rent is also subsidized. These two items save at least one-third. Other miscellaneous expenses, labor, fertilizers, pesticides, and agricultural machinery rental cost about a thousand yuan per mu.

The cost of planting 30,000 acres is more than 30 million yuan.

However, the profit of Tang Dun Dun is high, and the profit is even higher after processing.

With 30,000 acres, as long as half of it can reach normal yield, there will be no loss.

Of course, the output should be as high as possible.

"How can we avoid risks?" Director Xie discussed with the two managers, organized his words and slowly answered: "First of all, we must spread out the planting to avoid a frost or a rainstorm. At the same time, it can also effectively prevent the spread of pests and diseases."

"In short, avoid taking everything with you. Got it." Luo Yihang concluded quickly.

Director Xie nodded, "That's right. Even if there is an accident, it's only one piece. The rest can still be saved."

"Secondly, the scale of 30,000 acres is no longer enough for our own experimental fields at the Academy of Agricultural Sciences. We must rely on social forces," Director Xie continued.

"It means renting land from farmers, village collectives or cooperatives." Luo Yihang said.

"Yes, unified management is safer, and the risk of losing seedlings must also be taken into account."

This is wise advice. Luo Yihang had never considered the loss of seedlings.

"Third, this is a new variety after all, and the planting method and daily management are still being explored. Agricultural technology stations and agricultural technology promotion organizations in various places should distribute technical manuals as soon as possible and train technicians so that they can provide guidance at any time."

"Fourth, we need to establish a risk assessment and response system, and make plans in advance."

“Fifth, there must be a supervisory and management framework, as well as financial oversight.”

Director Xie listed five measures to reduce risks, each of which was meaningful.

The Academy of Agricultural Sciences is indeed experienced in this area and has seen it all.

After Luo Yihang wrote down these points one by one, he asked another key question: "Director Xie, what kind of cooperation model does our Academy of Agricultural Sciences generally adopt with cooperatives?"

Director Xie replied, "For companies like you that have sales licenses, we usually adopt the contract farming model. Before planting, we sign a contract with the cooperative to stipulate the variety, quantity, and quality standards. After harvest, all crops that meet the standards will be purchased at an agreed fixed price or a floating price linked to the market price. The delivery time and settlement method are also clearly stated. Of course, there are also clauses such as compensation for breach of contract."

"In addition, experimental crops are high-risk after all, so there must be a certain risk compensation mechanism. We will open a custodial account in the bank, and if the scale is large, we will also set up a risk fund to compensate the affected party in the event of losses."

There is a complete set of operating modes.

This is easy to handle.

Cao follows Xiao's rules and does things according to the regulations.

In the subsequent meeting, the two sides conducted preliminary consultations on a series of related issues, including how many points to disperse the planting into, how to train technical personnel, how to prepare seedlings, how to set up risk funds, whether to raise funds publicly or privately, and what the terms of long-term cooperation with financial institutions are.

Why preliminary?

Because we haven’t yet started recruiting people and attracting investments.
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Three days later, still in this conference room.

Luo Yihang invited many heroes and held a three-day investment briefing.

The popularity of Tangdundun is obvious to all. The data provided by Maomaotou is detailed and true, and the related products have been verified by the market. Last year's luxury ice cream was proof of this.

The overall market trend is positive.

It took a whole morning to reach an investment intention.

The argument lasted for two and a half days about valuation, financing scale and equity distribution.

Ultimately, Sushan Foods, a company founded to sell luxury ice cream, was valued at $2.74 million.

The A round of financing diluted 32% of the shares and raised 7500 million.

COFCO Technology led the investment with RMB 2800 million, accounting for 11.9% of the shares.

清音生物科技有限公司投资1200万；俏小猫集团投资1500万；郑好味投资700万；农科产业发展基金，农科院下属的一个扶持农业发展的基金会投资1000万；王绍鹏作为个人股东投资300万；一共有五家跟投。

In fact, it’s still this familiar circle of people.

Qingyin Bio is Luo Yihang's food factory, the one managed by Qiangwa. The purpose of investing in the food factory is to give Qiangwa some shares. Qiangwa will be so tired that he will vomit next.

The parent company of Qiao Xiaomao invested in a subsidiary.

Zheng Haowei was brought in just to join in the fun, but his supermarket channels can also bring certain help to Sushan Food Company.

What is really useful is COFCO, the thick and hard golden legs. More than 20 million is nothing to them. What they care about is Qiuyan No. 9 and building a good relationship with Luo Yihang. More than 2 million tons of medical alcohol and more than 9 million tons of glucose are big businesses.

What's more, this investment is obviously profitable.

Among this group of people, the one who has undergone the biggest change should be Ke Shaotong. She originally had a 20% stake in Sushan, and after dilution, she still has 13.6%.

Even though the shareholding has been diluted, the valuation is there.

2.74 million.

Ke Shaotong's net worth suddenly increased by more than 30 million.

A multi-millionaire indeed.

No, she is already a multi-millionaire.

She also has 5% of the employee shares in the Qiao Xiaomao Group, plus all the messy branches, each with its own shares. So Ke Shaotong’s net worth... Never mind, it’s too messy. It’s a lot anyway.

Several resolutions were also passed at the financing meeting.

Ke Shaotong was hired as general manager, Luo Zhiqiang and Wang Shaopeng as deputy general managers, in charge of production and raw material supply.

3500 million yuan of the funds were used to plant 2500 acres of Tangdundun sweet potatoes, and million yuan was used to build a sweet potato processing plant with an annual output of tons.

1500 million yuan will be used to promote and sell "Sushan" brand sweet potato ice cream and related products.

Sushan is the ancient name for ice cream.

Last year, because the product they wanted to sell was luxury ice cream, the name "Qiao Xiaomao" was a bit inappropriate, so Ke Shaotong registered a new brand.

Since then, Luo Yihang's industry has successfully raised funds for the first time.

It’s not difficult to attract investment.

Luo Yihang is really a bit Versailles.

Don't think about it. This is not a startup. It has core technology, market samples, and broad prospects. It is of course easy to attract investment.

(End of this chapter)