Chapter 403 Investing in Upstream Industries

"Anyway, I don't believe it, it's easy to use paint spraying, powder spraying, the quality of the finished product is not much different, and the appearance is not much different.

Then I don't think that's the decisive factor, we have to look at another reason. ”

Insiders look at the doorway, and laymen look at the liveliness.

In fact, sometimes the insiders may just be lively.

If you don't really understand how it works, you're going to have a hard time getting anything out of it.

In the end, the meeting did not come out of the discussion.

Anyway, basically most people are against it, don't say that they have just put on a paint spraying line, if the so-called oil to powder is carried out now, then this paint spraying line is used or not?

It is important to know that paint spraying line and powder coating line are completely two different concepts, and the two cannot be used interchangeably.

However, Zhang Xiaofan does not know these problems.

What he is more worried about now is that he has more and more money in his hands, but he doesn't know how to spend it.

At present, the proportion of the company's R&D funds is not very high.

But this does not mean that Zhang Xiaofan does not attach importance to research and development, mainly because he makes too much money.

The profit is too high, close to 90% of the gross profit margin, which can be described as crazy for a paint company.

In fact, at present, the gross profit margin of most coating companies is controlled at about 20% to 40%.

And their production costs are high, and the management costs are also very high.

This has to talk about the aspect of mechanical automation.

Zhimei New Materials is completely ahead of the future of other powder coating companies.

A powder production line generally has a mixing tank, an extruder, and an ACM mill.

According to the configuration of the general company, such a line, two and a half people is more reasonable.

But if the order volume is very large, then one line needs to be staffed with three people.

However, due to the very high degree of automation, one and a half people in one line are enough.

The more you put on your production line, the more you can save.

In today's increasing labor costs, the degree of automation will be directly related to your profits.

In this golden period of development, Zhang Xiaofan didn't think about dividends, but this matter still has to follow Chen Ying's opinion.

If they feel that they want to share dividends, Zhang Xiaofan doesn't care, anyway, the two of them add up to a little bit.

Zhang Xiaofan took the big head.

What Zhang Xiaofan wants now is to invest and then support some upstream raw material manufacturers.

Let them develop according to their own wishes, so as to maximize the quality of raw materials.

At the meeting, Zhang Xiaofan explained his thoughts to Chen Ying.

"At that time, the company already had this intention when it bought this land.

So I am in favor, and now the raw materials are becoming more and more diversified, supporting some upstream raw material manufacturers.

For us, we don't have to be controlled by others, and we can also let them develop the raw materials we need according to our requirements.

Tongrui materials have done a good job in this regard, and now they have been actively developing some special additives.

Didn't you still use it a while ago? It works very well. ”

"I also don't think there's any need to pay dividends, anyway, my salary is enough for the time being.

The house was also bought, and the car was bought. ”

In fact, this is the best time to invest in upstream raw materials.

The financial crisis officially broke out, and at its worst, all walks of life were very sluggish.

At this time, for various industries, capital is very important.

At this time, many companies are very prone to fall into a fracture situation in recent years, and investors are now very cautious.

Therefore, once a company is short of funds, it is difficult to get a loan if you want to, and it is difficult to invest if you want others to invest.

Therefore, it is indeed relatively simple for Zhang Xiaofan to invest in upstream raw material companies now.

Zhang Xiaofan has a lot of cash in his hand, and the last time, the filler production enterprise he invested in has achieved initial results.

Precipitated barium sulfate, which is very widely used in the powder coating industry, in fact, not only in the powder coating industry, but also in the oil-based coating industry is still very widely used.

If you invest in Zhang Xiaofan, you generally have to occupy more than 50% of the shares, otherwise, if you don't count, Zhang Xiaofan wants to develop very high-quality products, you must occupy most of the shares in this company.

Many companies in China are facing a very serious problem, too little investment in R&D.

Many companies can even be said to be short-sighted, and some even have almost zero investment in R&D.

If such a company wants to survive, it will only get harder and harder.

In order to make his own products more excellent, Zhang Xiaofan invested in or acquired upstream raw material companies, in order to make the research and development of raw materials account for a larger proportion.

This has always been the case in this world, if there is R&D investment, there will not necessarily be output, but if you don't invest in R&D, there will be no output.

Of course, the other way to do it is to make some hard-earned money.

The quality of the product is not up to standard, so the price cannot be sold, and the number of customers will only become less and less.

Hongfa Barium Industry, this is the last time Zhang Xiaofan invested in a raw material company.

The main production is precipitated barium sulfate and source barium sulfate.

The biggest advantage here is its proximity to the source, which has at least hundreds of billions of tons of barium sulfate.

Zhang Xiaofan took a fancy to this, so he took a stake in this company, occupying 65% of the shares.

Now the company has developed sub-nanometer ultra-fine precipitated barium sulfate, with an intermediate particle size of three microns.

This is definitely the best quality precipitated barium sulfate in China, of course, compared with Simba sub-nano ultra-fine barium sulfate, it is still a lot worse.

After all, other people's prices dare to sell for 16,000, and the price of Hongfa barium is not even 10,000.

You must know that the average price of precipitated barium sulfate in the market is about 3,200 yuan per ton.

The price of being able to sell for 10,000 yuan can prove how good the quality is.

This is the current market demand is not very large, so such a product, in fact, is currently a little loss.

This is also the reason why the gloss of Zhimei new material high-gloss products is much higher than that of other manufacturers.

This precipitated barium sulfate is used, compared to ordinary barium sulfate.

For the same raw material, the gloss should be more than 20 degrees higher, so the success of the product is closely related to the success of the raw material.

This is also the reason why Zhang Xiaofan still increased investment even though the input-output ratio was basically negative.

Although there will be a slight loss in raw materials, it is indeed a very big benefit for the products of Zhimei new materials.

Therefore, Zhang Xiaofan is now investing in upstream raw materials, not only for the raw materials and products he wants.

It is also to not be controlled by others in the future.