"Dad, let me tell you, 30 times the price-to-earnings ratio is really not low. The acquisition of Dogford by Pate Holding Group is actually considered a related transaction.
If the valuation of Dogfud is too high, investors may not know what they will say about me behind my back."
A few days ago, when Zhang Yida was still in Southeast Asia, Pate Holding Group began to contact Dogfud, and the due diligence process was almost completed.
There was still some controversy over the valuation, so Lu Fenghai called Zhang Yida for help.
Pate Holding Group is only willing to give Dogfud a price-to-earnings ratio valuation of 30 times, but Zhang Qinghua insists on 50 times.
Dogford's net profit last year was 220 million yuan, and the difference in price-earnings ratio of 20 times was 4.4 billion yuan.
The proportion of shares that Dogford will sell this time is 51%. In other words, the gap is more than 2.2 billion yuan.
This is a huge sum of money, so it is not difficult to understand Zhang Qinghua's persistence.
"You're teaching me a lesson in return. I'm working so hard, but I'm not trying to accumulate wealth for you."
Zhang Yida quickly stopped, "That's not how accumulation works. A gentleman loves money and gets it wisely!
If you are a manufacturing company, given a valuation of 30 times, it is already seriously overvalued.
This is because the pet market is an emerging market, with room for growth of more than 30% every year."
"I see that many of our large A-share companies have price-to-earning ratios of 40 to 50 times, or even hundreds of times." Zhang Qinghua complained.
"You can't compare with them. They have all kinds of assists, so of course the stock price will rise.
Of course, when it fell, it fell very hard."
Zhang Qinghua said: "Okay! Okay! If I can't beat you, just use a price-earnings ratio of 30 times!"
"Well, take a step back and the sky will be brighter!"
"By the way," Zhang Qinghua added, "What does the gambling agreement mean? It also requires us to maintain a 30% net profit growth for three consecutive years from 2016 to 2018.
I have calculated that this year the net profit will be 286 million, next year it will be 371.8 million, and the year after that it will be 483.34 million.
The total net profit for the past three years is 1.14 billion! Isn’t this requirement too harsh?”
Zhang Yida smiled and said: "These are very conventional terms. If Dogfud wants to support its valuation of 6.6 billion yuan, it must achieve some convincing performance!
Think about it, you are a small factory that was only established in the second half of 2013, but your performance has been good in the past two years.
Who knows whether the performance will change drastically after the acquisition? The acquirer also needs a safety cushion."
"The agreement says that if it cannot be completed, the company's valuation will need to be discounted."
"Of course!" Zhang Yida explained, "Acquiring a multi-billion company cannot be a one-time deal.
There are too many traps and pitfalls here! In addition, for Pate Holding Group, the acquisition of Dogfud will create a large amount of goodwill.
If these bubbles are not handled well, they will seriously affect the subsequent financing and even listing of Pate Holdings Group!"
"I feel a little unsure! If I don't complete the bet, I will suffer a big loss."
Zhang Yida chuckled and said, "You can't bear the loss. The meat will rot in the pot. If you take advantage of Pate Holding Group, you will take advantage of me."
"Pate Holding Group is not a wholly-owned company by you, so it doesn't benefit outsiders."
Zhang Yida reminded: "Dad, you are in trouble and care too much about gains and losses, and you will only lose more."
"Okay, no more talking, just do as you say! Call the staff of Pate Holding Group to come over and sign the agreement!"
Zhang Yida smiled and said: "Dad, don't be so depressed! This is a good thing, be happy."
"Huh! I'm a little happy..."
Zhang Qinghua pretended to be angry and said, "If you let me hold my grandson as soon as possible, I will be really happy."
"I haven't graduated from college yet! It's too early to talk about this! I'm still a baby myself!"
Zhang Qinghua scolded: "Look at you, a chairman who manages tens of thousands of people!"
After the two father and son joked with each other, Zhang Yida hung up the phone.
…
September 1st is this day.
Ruixiang Group, the Office of the National Greening Committee and the China Greening Foundation officially signed a strategic cooperation agreement on "Internet + National Voluntary Tree Planting" in Beijing.
At the same time, it also means that the Ruixiang Forest tree planting model will be officially included in the national compulsory tree planting system.
At the signing ceremony, Zhang Yida also delivered a keynote speech.
Looking at the crowd of reporters and audiences in the audience, Zhang Yida played a set of PPTs.
Through the huge LED screen, the audience can see the endless desert and Gobi Desert.
Zhang Yida introduced: "This is the Mu Us Desert located in the northwest of the motherland. You can see how desolate it is."
Then Zhang Yida played the next set of pictures.
In the picture, there is only a small part of the desert, most of which are oases. Although the vegetation only covers a shallow layer, the color has indeed changed, from yellow to green.
"This is also the Mu Us Desert, or it should be called the Mu Us Oasis."
Zhang Yida explained with a smile: "The previous set of photos were taken in the 1950s, and the just one was taken a few days ago.
After more than sixty years and several generations of hard work, we are finally close to wiping out this desert covering an area of 42,000 square kilometers.
Mu Us Desert is located in the north of Yulin City, Shaanxi Province. Affected by sandstorms, Yulin used to be called Camel City, which is also a desert city, and the ecological environment is very harsh.
You know, in ancient times, this land was called the "Base of Overlord" and it was quite fertile.
Liu Bang captured Guanzhong, wiped out the princes and established the Han Dynasty; Li Yuan captured Guanzhong, pacified various rebel armies and established the Tang Dynasty.
The Han and Tang Dynasties were the most glorious dynasties for us Chinese.
The foundation for their establishment is the barren and deserted land we see today.
Why did it become like this today?
Because of deforestation and population explosion.
During the Spring and Autumn Period and the Warring States Period, the forest coverage rate on the Loess Plateau was as high as 53%. "Historical Records" once recorded that the Emperor of Zhou and Duke Wen of Qin chased deer in the forests and grasslands of northern Shaanxi and eastern Longxi.
In the Han Dynasty, the forest coverage rate dropped to 42%. In the Tang Dynasty, palaces were built and large-scale urban logging on the Loess Plateau led to the forest coverage rate falling to 32%.
The reduction of forest coverage has led to the gradual deterioration of the environment.
As the capital of all dynasties before the Tang Dynasty, Chang'an had too many people.
With too many people, the Qinchuan River, which is 800 miles away, cannot bear it no matter how fertile it is.
Therefore, after the Tang Dynasty, the ecological environment in Guanzhong became increasingly poor, and there was no longer a unified dynasty with its capital in Chang'an.
After talking about historical changes, let’s talk about modern times.
Since 1959, windbreaks have been built here, water is diverted to remove sand, and a large amount of vegetation is planted.
To this day, more than 160 forest farms with an area of more than 10,000 acres have been established here, and 4 protective forest belts with a total length of more than 1,500 kilometers have been built.
Today's Yulin City is no longer a desert city, it has become an "oasis on the fortress".
Of course, the cost of construction is also quite heavy.
Bao Riledai, Yin Yuzhen, Wuyun Siqing, Lang Tenghua, Xu Xiufang and other desert control heroines spent their lives and sweat to gain today's hard-won oasis.
In addition to these heroes, I also know that there is a family of desert control heroes. Four generations spent 40 years turning 45,000 acres of sandy land into an oasis."
Zhang Yida added: "This family is the Guo Chengwang family. Since Mr. Guo is over ninety years old and has physical inconveniences, we did not invite him to the scene today.
But we recorded a video for him, and everyone can watch it."
After speaking, Zhang Yida retreated to the side of the stage and let out the huge LED screen.
In the video, an old man wearing a turban from northern Shaanxi carries tools and starts afforestation work that has been going on for forty years...
The reporters and audience in the audience also stared at this touching scene with their eyes wide open.
Through the video, you can clearly see the changes in the Mu Us Desert over the past few decades.
Lifting it from shoulder to shoulder and planting trees purely artificially, the desolate land was turned into an oasis bit by bit.
The video is very shocking. Forty years and four generations have persisted in doing one thing. It is very touching.
At the end of the video, old man Guo Chengwang faced the camera and said in northern Shaanxi dialect:
"I said I wanted to plant this tree, but the village leader said it's such a huge desert, how can you do it...
I said that I had to turn it into an oasis, but I couldn’t finish it, and my son could finish it, and my son couldn’t finish it, and my grandson could finish it...it would be passed on from generation to generation.”
At the end of the video, Guo Chengwang's great-grandson carried him behind his back and inspected the oases he had worked on for forty years.
Thunderous applause erupted from the audience, and the audience admired Guo Chengwang and these desert control heroes from the bottom of their hearts.
After the applause ended, Zhang Yida returned to the stage and said: "A very touching video and a very touching story!
Everything today is not easy, so we should cherish it more.
We at Ruixiang Group have decided to provide tomorrow’s Touronghui APP startup display page to four generations of Mr. Guo Chengwang’s family.
Their contemporary "foolish old man" spirit deserves to be respected and carried forward by our nation and this country..."
A reporter in the audience asked: "Mr. Zhang, isn't Touronghui's APP startup page always provided to advertisers?
It is said that the advertising fee for a day’s display is as high as tens of millions of yuan?”
"That's right, it's as high as tens of millions of dollars."
Zhang Yida added: "Compared with advertising fees, I think it is more worthwhile to show this heroic spirit to hundreds of millions of users across China.
From now on, Touronghui’s APP startup page will no longer accept advertisements, and will display heroic deeds like Mr. Guo Chengwang’s from time to time.
These unknown heroes who do practical things for the country and the people deserve the attention and respect of society!"
Another reporter asked: "I heard that more than 5 million trees have been planted in Ruixiang Forest? Is this true?"
Zhang Yida nodded, "It's true, Ruixiang Group will use five thousandths of its revenue for charity every year.
Part of this money was spent on afforestation, and part was spent on charitable donations to Ruixiang Manor.”
The reporter asked again: "Can you tell us the specific operating model?"
Zhang Yida said with a smile: "Actually, the model is very simple. Users can reduce the number of corresponding actions by walking, traveling by subway, traveling by shared bicycle, paying with QR code, paying water, electricity and gas bills online, paying traffic tickets online, registering online, purchasing tickets online, etc.
of carbon emissions.
After reducing carbon emissions, we use a set of algorithm rules on the platform to distribute tree planting energy to users, and users can use this energy to grow a virtual tree in TouRongHui.
After the tree grows up, non-profit organizations, environmental protection companies and other Ruixiang ecological partners will "buy" the virtual "tree" planted by users in the Ruixiang forest and plant a physical tree in a certain area in the real world.