Behind Huawei's "cross-bank" pig raising: Does this outlet really blow pigs to the sky?

Hot spot: Not long ago, Huawei publicly mentioned the long-rumored "Nanniwan" plan for the first time, that is, production self-help, including coal, steel, music and other fields, and said that Huawei can survive without mobile phone business. At the same time, he announced that he would try to raise pigs with wisdom.

Analysis: How big is the gold absorption ability of raising pigs? Why do Internet giants get together in pig farms? Is the enthusiasm for raising pigs really a "lie win"?

Text: Ren Huiyuan, Chinese and foreign management

Raising pigs, the "terrapin" industry in the eyes of the world, can always usher in bright spots again and again. From Lu Buxuan, a gifted scholar of Peking University, to Internet upstarts Netease, JD.COM and Ali, and then to real estate tycoons Evergrande, Vanke and Country Garden, pigsty was built one after another, and "Pig Hum" sounded.

Now, it's the turn of the technology giant. A "core change" made Huawei, which has always been strong, turn to the "Nanniwan" plan and began to produce self-help, including intelligent pig raising, so it once again pushed the pig industry to the forefront. Netizen teased: Mobile phone sales are not enough. Do you want to raise pigs to save yourself?

So, how big is the ability of raising pigs to absorb gold? Why do Internet giants get together in pig farms? Is the enthusiasm for raising pigs really a "lie win"? What's the difference between Huawei's pig industry and the bosses who used to wander inside and outside the pigsty?

1, behind the "cross-bank" pig raising: the profit rate is as high as 50%

From the internet circle to the real estate circle to the technology giants, why do everyone like to raise pigs?

First of all, the answer is nothing more than gold diggers for profit. China people consume more than 50 million tons of pork every year. As a "hard dish" on the dining table, pork accounts for more than 60%, and the per capita annual consumption is about 59 kg. On average, each person eats 600 grams of pork every day, and half of the pork in the world is on the table of China people.

Several traditional pig-raising enterprises have proved the richness and breadth of this market with bright data: in 20 19 years, the new hope net profit was 5.042 billion yuan, up 195.78% year-on-year. Among them, the growth rate of pig breeding industry is the first of the company's five business segments. According to the 2020 annual performance forecast released by Mu Yuan, the net profit attributable to shareholders of listed companies is about 27 billion yuan, up by 34 1.58% year-on-year. The average profit of a pig is 1.500 yuan, which is equivalent to the profit of two bottles of Kweichow Moutai, and the profit rate is as high as 50%.

The high profits brought by pig breeding made them outperform 90% listed companies. Qin Yinglin, the chairman of Mu Yuan, ranks 9th on Forbes China Rich List with a price of117.38 billion yuan, which makes Wang Jianlin of Wanda Group, Ding Lei of Netease and Huang Zheng of Pinduoduo as evenly matched as others. The performance of Shi Wen, Zhengbang Technology, Tang Renshen and other pig enterprises also began to blow out from 20 19.

Of course, in recent three years, the pork market has started a wave of price increase, which is directly related to the emergence of African swine fever in 20 18, which directly led to the decline of domestic pig stocks by more than 40%. But even without African swine fever, the profit rate of Mu Yuan shares reached 20%.

If you want to make a profit, you must have a turnover, so more and more "amateurs" begin to favor the pig market. First, Internet companies are scrambling to enter the market. Ali and JD.COM have announced the introduction of pig face recognition, through which the breeding situation and health data of each pig can be known. Ding Lei, an earlier Netease, also insisted on practicing science and technology to raise pigs for many years.

At the same time, there are also real estate companies to share the soup. As early as 20 14, Evergrande announced that it would spend 300 million yuan to build 1 10 pig farming and animal husbandry base in Guizhou. By 20 18, Vanke and country garden could not restrain their inner impulses and began to lay out the great cause of raising pigs. So far, three of the four major housing enterprises have set foot in the pig industry.

Raising pigs is becoming a new battlefield for big technology companies.

It is worth noting that the idea of pigsty is the same, but the way of internet giants and real estate companies is different: real estate only wants to share a share of pigs, while the purpose of internet and technology manufacturers is to transform the traditional farming model with new technologies and earn money from pigsty.

Jin Xing, an internationally certified financial planner and private bank, analyzed the management at home and abroad: the real estate policy tends to tighten, and major real estate companies are facing transformation pressure at the end of the real estate cycle. It is an option for real estate companies to intervene in the pig industry with broad space by virtue of their own financial advantages and scale advantages.

Internet companies enter the pigsty with the intention of empowering technology and pursuing efficiency. The price of live pigs in the United States has always been very competitive in the international market, because more than 80% of the pork comes from large-scale farms, which greatly reduces the costs of feed, machinery, water and electricity. However, China's scale level is far less than that of developed countries such as the United States, which leads to extremely unstable pig market in China.

The gap between market demand and industry development is the opportunity for Internet companies. So, whether it is Ali's "ET brain" or JD.COM. The core of "Shennong Brain" of COM is to improve the breeding efficiency and reduce the breeding cost through the application of digital and intelligent AI technology. The future business path is by no means pork sales, but providing aquaculture solutions for the industry through export technology, thus making profits.

As we all know, in the fourth quarter of 2020, due to insufficient supply of chips, Huawei's mobile phone shipments declined, and its market share has fallen to sixth place. The profit of mobile phones once accounted for more than 50% of Huawei's total revenue. If the chip problem cannot be solved in a short time, Huawei must save itself and find new sources of profit.

"Huawei is so large and has so many employees. If you want to save yourself, you must find a large enough market to realize the value of Huawei's own technology precipitation. " Zhuang Jinxing said: Since the pig market can hatch such big enterprises as Muyuan, Wenshi and New Hope, it shows that the market is large enough to naturally accept giant companies like Huawei.

3, trillion pig market: "layman" nuggets are not easy.

Although high-tech pig farms are full of a sense of being ahead and futuristic in metallic tones, this does not mean that these "amateurs" can easily pry open the doors of pig farms. In addition to the achievements of several traditional pig enterprises that have been deeply cultivated for many years, the subsequent "inter-bank" is mostly thunder and rain, and the real estate enterprises that are not bad money are only trying repeatedly inside and outside the pig farm, and the pace is not so firm.

For example, Vanke's annual output is 250,000, which is less than that of New Hope Group's annual output of 3.55 million. Its scale is limited and it is only a small experiment.

Wanda Group escaped from the predicament. After investing 654.38 billion yuan, Wang Jianlin voluntarily gave up the pig raising plan. The explanation given is: "It takes several hundred million to build a pig farm with100000 pigs. How much does it cost us to build a five-star hotel? "

According to the speech of Huawei related persons at the 2020 Forum on Agriculture, Animal Husbandry Mathematics and Intelligent Ecological Development, the so-called "intelligent pig raising" is nothing more than exporting ICT technology to pig farms, including the sensors behind it, the Internet of Things technology and artificial intelligence algorithms, with the focus on upgrading pig farm facilities. In other words, what Huawei needs to do is an integrated system of intelligent pig raising, rather than raising pigs from small to large and then pushing them to the market.

It is worth noting that Ali and JD.COM have introduced similar Internet technologies, and each has its own advantages. Netease, as the earliest Internet enterprise involved in the pig industry, is ahead of Huawei in the combination of theory and practice. Therefore, it can be judged that it is not easy for Huawei to promote and apply technology in the pig industry.

On the other hand, under the background of the centralized process of domestic pig industry, intelligent pig raising is of course an inevitable topic for "animal husbandry", but at present, intelligent pig raising is still on the road and has not yet become the mainstream model of pig industry. It is understood that even the largest head enterprises, such as Mu Yuan, Wenshi and New Hope, are mainly used for the expansion of production capacity and the extension of upstream and downstream industrial chains, and the investment in "smart pig farms" is not obvious.

The reason behind it is that the feasibility of intelligent pig raising is not strong, and there is no application scenario that can be put into practice and has reasonable cost. For example, "pig face recognition" technology was once hot, claiming to provide a non-contact and automatic solution for pig individual recognition. However, due to the short growth cycle and great facial changes of pigs, it is difficult to train the recognition model, and the recognition accuracy can not meet the basic requirements of "accurate individual recognition".

Wang Ruinian, product manager and partner of Micro Pig Technology, once wrote: Artificial intelligence pig raising has its application scenarios, but from the actual operation, the application scenarios are still one or several points in the breeding process, rather than a systematic technical solution. Therefore, the imagination of artificial intelligence raising pigs is a beautiful vision for raising pigs in the future, which needs to be done step by step from point to surface to system on the basis of the reality of the pig industry.

If the internet giants are not ready to fight the tough battle of 10, then the opportunity of nugget trillion pig market may only exist in imagination.