As a mage, I just want to pursue the truth

Chapter 131 Occupation of Industry Upstream in Segmented Fields

The seed market is a very small segment, and the global annual revenue is only about one billion yuan.

Moreover, this field is relatively mature, and the compound growth rate of the market size over the years is only 0.2%.

Compared with the semiconductor and new energy industries, the development is very slow.

Of course, the sudden emergence of Huaguo Seed Industry Group in 2022 will cause the entire seed market to increase by about 13.00%.

A large amount of seawater rice is planted on a large scale in China, the Middle East, Southeast Asia and other places, and this part belongs to the new market scale.

Previously, sea rice only stayed in the laboratory without large-scale promotion.

In this field, the gap between Huaguo and American is not that big. In 2019, American and Huaguo ranked the top two in the seed industry market, with corresponding market shares of 26.7% and 21.2%.

However, the gross profit margin varies greatly. The gross profit margin of Huaguo enterprises mostly fluctuates around 20.00%, and even the gross profit margin of some listed companies is only [-]%.

And European and American seed industry giants, like Monsanto, have a gross profit margin of 60.00%.

It is precisely because of the huge gap in profits that European and American multinational giants have more funds to invest in research and development, and their industrial advantages are also greater.

Take the Huaguo Seed Company with a gross profit margin of 17% as an example. Their net assets are about 700 billion yuan, and their net profit is negative 2021 million yuan. In 850, the government gave them a total of about [-] million yuan in subsidies. .

How much can a company like this invest in research and development?The annual research and development expenses are only 2700 million yuan, and the management expenses are 7100 million yuan.

The same is true in many subdivided fields. Europe and the United States occupy the upper reaches of the industrial chain, have formed industrial advantages, and have mastered the pricing power of international trade.

It will take time, capital investment and R&D investment for Huaguo to climb to the upper reaches of the industrial chain.

Most countries cannot cross the middle-income trap precisely because they do not have the ability and determination to climb up the industrial chain.

On the other hand, Europe and the United States rely on occupying the upstream of the industrial chain in a large number of subdivided fields, enjoying high profit margins, and being able to support a relatively wealthy and less expensive life.

(I'm sorry that I couldn't help but talk a little too much. Since the country's No. [-] document this year outlines the development of agriculture, and in line with the attitude that investment needs to be responsible for one's own money, I have reported the financial reports of listed companies related to the seed industry in the past few days. Picked it up again.

The R&D investment is very low. Some listed seed companies have a market value of 30 billion, and the annual R&D investment is only 800 million.A little better R & D costs of 200 million with a market value of 4000 billion.

From what I can see, the highest R&D investment is around 1.1 million RMB.

Monsanto’s research and development investment ten years ago was about 15 billion yuan.

very pessimistic)

Syngenta's market share has been encroached a lot.

The Huaguo Seed Industry Group not only occupied the market share of these European and American seed companies, but also opened up many new markets.

The most important thing is that they seem to have developed a new way of breeding genetically modified seeds.

So they are desperate to get a piece of the pie.

After Chen Jingrui's internal discussion, it is feasible to hand over the cultivation of some seeds to Syngenta, and Syngenta will sell them in the Europa region.

After all, Huaguo Seeds owns Syngenta.

But Syngenta wants to participate in the R&D work of Huaguo Seed Industry Group, and they have no right to decide on this.

Because of the research institute, the Huaguo Seed Industry Group can't interfere at all.

Syngenta has had a hard time, and Monsanto has had a hard time. It has been a long time since they could find a solution, and Grant's presidency is on the verge of crumbling.

Dissatisfaction among Monsanto shareholders was piling up against him, Grant was under tremendous pressure, and he could only pass the pressure on to his subordinates:

"Furley, it has been almost a year since Huaguo's super soybeans, why haven't we found the secret behind their rapid development?"

"Not only that, but the Huaguo people have launched a series of seeds that are better than all the products on the market, such as rice, wheat, corn, and cotton."

"Our market share this year has dropped by at least 50.00% compared to last year!"

Specific data has not yet come out.

Fu Ruili originally had to argue every time, looking for reasons to delay the time.

Because Grant wanted to lay off some researchers and reduce the scale of research, but Fu Ruili was unwilling. He wanted to fight for the interests of his subordinates.

Monsanto's annual R&D investment is [-]% of its operating income. The decline in operating income this year means that R&D investment will also drop significantly. In this case, the only option is layoffs.

But this time, Fu Ruili did not refute, and did not swear that he would find out the reason if he gave himself some more time. Instead, he was dejected:
"Grant, do you know the paper on the existence of the soul that was recently published in Science?"

Grant nodded and said, "Look, isn't that the detailed version of Merlin's paper published on magic.com? Even the name is a variant of Merlin, what's so strange?"

"We should all know that even the laboratory has a team dedicated to soul research."

Yes, Monsanto wants to try to see if it can develop magic plants, so it has set up a special soul research team.

Trying to use the soul as material to cultivate plants.

It’s just that they have indeed made some progress in this area. A large number of souls fill the air, and the cultivated plants will show very weak characteristics, so weak that you can’t tell whether it is the change brought about by the soul.

There is still a long way to go before cultivating real magic materials.

Moreover, due to the use of intelligent organisms as materials, the price of intelligent life has been rising steadily in the past two years.

When Zheng Li was still in the Lion City, the price of the experimental monkey was 30 RMB per monkey.Now the price has risen to 100 million RMB.

As a result, monkeys in Mount Emei are frequently poached.

Monkeys have become a resource that is even crazier than lithium mines.

This is something that Zheng Li didn't expect. Now that he wants to do experiments and buy experimental monkeys, it will cost a lot of money.

The price of experimental monkeys has been rising steadily, which has led to a large increase in the research and development costs of domestic biopharmaceutical companies.

Coupled with the special medicine developed by American, Glenn's fund has been falling all the way. It can be said that there is still a bottom below the bottom, and there is no bottom.

Xiaobai, who was chasing celebrity fund managers, lost his mind.

Fu Ruili nodded and said: "Yes, according to the news I got from a certain friend, Huaguo is combining magic and breeding."

"So this year their high-quality genetically modified seeds are emerging one after another."

"This is a completely different system from our transgenic breeding network, and we have no way to learn from it."

"You should have a deep understanding of the difficulty of obtaining the magic brain. This is not something that Monsanto can research."

Regarding Magic Brain and magic coin, many big companies want to do it, but if they really make up their minds and invest a lot of money, the return they will get is completely unknown.

What exactly is the devil's brain, no one can give a general idea.Therefore, many large enterprises chose to give up.

(End of this chapter)