Era: I was a farmer at the foot of Yaoling Mountain

Time flies.

The Dragon Boat Festival is just around the corner.

The battle for market share in edible oil is nearing its end, as the major players have run out of steam. They lose money on every barrel of oil they sell, and have already lost over a billion yuan in just a few months.

Yaoling brand cooking oil did not aggressively pursue price reductions, but it consistently kept prices below the cost line of the major giants, making things difficult for them.

This bloodletting tactic may not seem like much in the early stages, but its power increases over time, and if it continues, it will severely damage all of them.

Another point is that the price war in the past few months has wiped out another batch of edible oil companies. Even large enterprises with state-owned backgrounds, like Liang Wenhui's, are on the verge of collapse.

Taking advantage of the holiday effect, several major companies have raised the price of cooking oil, bringing it back to a normal profit range.

Fang Wei convened a teleconference, ruling out the option of continuing the price war to the end, and decided to bring the price of Yaoling brand cooking oil back to a rational level, but still lower than the prices of the major giants.

"Just because they can't keep fighting, does that mean we can monopolize the market? Let me tell you, that's impossible, and even the regulatory authorities won't allow it."

Regulatory authorities will not allow a few giants to monopolize the edible oil market, nor will they allow Yaoling Group to do so.

In fact, Fang Wei had already received a call from relevant departments, implying that they would not allow the chaos in the edible oil market to continue for long.

So, it's time to stop now.

In this round of price wars, Yaoling Group has emerged as the de facto winner. For example, in the rapeseed oil market, the company's market share has exceeded 30%.

Fang Wei is very confident in his products. In the future, he will rely on conventional methods to compete with his rivals. With excellent quality, superb taste and high cost performance, his sales will surely be far ahead.

That's enough, and it's a rational choice.

"Understood, Party Secretary."

Yaoling brand cooking oil's price is within its normal profit range, while the major giants are beginning to diverge, having to consider both profit levels and ensuring that prices don't deviate too far from Yaoling brand cooking oil.

Moreover, everyone's costs are only similar, since there are still differences.

Therefore, the prices set by the major players are different, and the alliance that was painstakingly built is showing signs of disintegration.

After the meeting, Yaoling brand cooking oil quickly completed its adjustments and remains the most cost-effective cooking oil on the market, bar none.

After the meeting, Fang Wei left the small conference room and returned to her office.

"Chairman, while you were in the meeting just now, General Manager Liang Wenhui called and said he would come to see you this afternoon."

Secretary Du Wanyi followed closely behind and entered the room. She first placed a stack of documents on the desk, and then told him that Liang Wenhui would be coming in the afternoon.

"Well, I see."

Fang Wei nodded, then sat down and began to read the documents.

Du Wanyi then made him a cup of tea and turned to leave the office.

in the afternoon.

Liang Wenhui arrived as promised.

He was pleased that the price war had stopped, as the company, despite its size, was in a terrible state of losing money every minute.

Fortunately, just as the company was struggling, the price war came to an abrupt end, and the prices of cooking oil from major brands returned to a more rational level.

To be fair, competition in the market now is gentler than it will be in the future. Only when internet companies start burning cash and fighting tooth and nail will people truly understand what ruthlessness is.

“Secretary Fang, I’m here on behalf of the company to discuss cooperation with you.”

As soon as Liang Wenhui sat down, he got down to business.

"Cooperation? How can we cooperate? Didn't I promise to sell you high-yield rapeseed seeds?"

Fang Wei was a little confused, then gestured for the other party to continue.

"The company plans to establish a price alliance with Yaoling Group, and at the same time, conduct in-depth cooperation in areas such as brand maintenance and sales channels. As you know, the major giants actually have a deep cooperation, otherwise they would not have been able to advance and retreat together before."

Through this price war, Liang Wenhui and the company's CEO discovered a harsh reality: Yaoling Group was on par with the major giants, while their own company was the weakling.

Both he and the boss felt a deep sense of crisis, and after discussing it, they came up with the idea of ​​cooperation.

"President Liang, we already have a cooperative relationship, otherwise I wouldn't have sold you high-yield rapeseed seeds. As for further cooperation, we can discuss a framework first, but this matter needs to be discussed with the group company in Guangzhou."

Some powers are not in the hands of subordinate enterprises. For major collaborations like this, it would be useless for Liang Wenhui to go to the food company. He could only go to Guangzhou to talk to Lin Bingkun, Lu Zhiwen and others.

Fang Wei will not reach a private agreement with Liang Wenhui because this is not an emergency.

Liang Wenhui sighed helplessly and had no choice but to stop talking about it.

night.

The two had a meal together, and then Liang Wenhui rushed to Guangzhou overnight.

He was anxious. The price war had severely damaged the company, and without the support of an ally, the company might not be able to resolve the raw material problem until next year.

This is all due to the rising prices of oilseed crops in the international market. The next day.

Fang Wei and Pan Lianhua went out to buy groceries early in the morning. They had enough zongzi (sticky rice dumplings) at home, but they would definitely have to cook a few more dishes for dinner tonight because it was a festival.

That's right, today is the Dragon Boat Festival. Fang Wei and his wife plan to celebrate at home, too lazy to go out and about anymore.

In the afternoon, Tian Guihua came over early to help, and Fang Ping would also come over after get off work, as would Tao Tao.

The locals attach great importance to the Dragon Boat Festival. Sister A, Pan Lianhua, and Tian Guihua cooked a table of dishes together, and Fang Wei and Fang Ping ate dinner as soon as they got home from get off work.

After eating and drinking their fill, Fang Wei and his older brother sat on the rooftop drinking tea.

"Third brother, I heard that the rectification and reform will be carried out in depth. In the past, small coal mines were shut down, but now even substandard small coal mines, small power plants and small cement plants have been included in the rectification list."

Fang Ping seemed somewhat worried; all the news he had received recently had been bad, not good.

The previous crackdown on small coal mines allowed coal mines to escape unscathed, but this time the winds seem to be blowing in a different direction, and it's uncertain whether they can escape unscathed again.

"The policy hasn't been released yet, and most of it is just rumors and speculation, so it's not reliable. However, the requirements will definitely become stricter in the future, and if a suitable opportunity comes along, we can consider selling the coal mine."

Fang Wei knew very well that Yaoling Coal Mine could not grow into a large and strong enterprise.

Resource extraction has its own unique characteristics; unlike a company that contracts land externally and can acquire as much or as little as it wants, the scarcity of resources means that such a company has no future in this industry.

Instead of living in constant fear, it's better to take advantage of the upcoming wave of coal mine mergers and acquisitions and sell for a good price.

"Sell it? Third brother, I'm a little reluctant."

Fang Ping was conflicted. He knew it was the best solution, but he was still a little reluctant to give it up.

He has put a lot of effort into the coal mine, and now the employees have a good income. If the coal mine is sold, what will happen to the employees?

As for him personally, it doesn't matter. He's getting older, and retiring now is a good option.

"Brother, it's better to sell sooner rather than later. If you decide sooner, you can get a better price."

Fang Wei didn't need any earnest persuasion; he knew his older brother understood the situation.

Sure enough, Fang Ping fell silent as soon as he said that.

"Well, that's just how it is."

Fang Ping no longer resisted the matter, and Fang Wei was able to discuss it with the other people in the company.

The next day at work, he spoke with Lin Bingkun and others on the phone, and they basically finalized the principles for selling the coal mine. Of course, there was no rush; it was best to wait for others to come to them.

The Xinlin County coal mine has generated substantial profits for the group company. With coal prices remaining high for years, a small coal mine is essentially a money-printing machine, so you can imagine how profitable it is.

Fang Wei would never have chosen to sell the coal mine if he had any other options.

This is the current national policy; the general trend cannot be defied. Even if it's painful to part with something, it has to be sold.

"Chairman, the coal mine's stock price has been released. The remaining mining rights, along with the mining equipment and ancillary facilities, are valued at between 12 billion and 13 billion yuan."

morning.

Yang Feng brought the evaluation report to Fang Wei and gave a verbal presentation.

The mining rights for the coal mine, along with the equipment and ancillary facilities, are not valued at a high price. If a good buyer is found, there could certainly be a premium.

Fang Wei gestured for the other party to put down the evaluation report, then waved them away.

Then he called Xu Bo, told him about the company's decision, and offered an explanation. Although the coal mine belonged to Yaoling Group, it also had close ties with the county, so it was only right to give them a heads-up beforehand.

"Can't we just not sell? Of course, if it's a policy issue, ultimately it's not up to you."

After listening to Fang Wei's story, Xu Bo couldn't help but sigh.

The coal mine is a major taxpayer in the county and affects the employment of many people, so maintaining the status quo would be best.

However, some things are beyond our control. If the policies change, then Yaoling Group's choice will be the best option.

"Yes, the business environment is not static. I also hope to continue doing this, but it's not up to me to decide."

Fang Wei didn't feel there was anything to regret. Over the years, the coal mine had brought the company substantial profits, and the initial investment had been recovered several times over, so selling it wouldn't matter.

Mining is a very stressful job. If something goes wrong one day, it would be terrible if my older brother got caught.

"Alright, coal mines aren't hard to sell these days. I'll keep an eye on it after you say that, and I'll call you if I get any news."

Xu Bo didn't intend to chat any longer and quickly hung up.

Fang Wei quickly put the matter aside, since he didn't need to deal with the specifics; his mind was now preoccupied with the summer harvest and planting.

Yaoling agriculture has ushered in its annual summer harvest, and all production units are busy at work. (End of Chapter)