Whether it is the COVID-19 epidemic that has lasted for more than two years since 2019, or the current Russia-Ukraine conflict in the smoke of gunfire, for Yan Yicai, chairman of Taihua Group, known as the "King of M&A" in the cross-strait logistics industry, the industry boom is simply It’s “clear skies, smooth winds and smooth water”.
earns more than the total profit in the previous 15 years in one year. Yan Yicai, chairman of Taihua, holds the "four trump cards" of sea, land, air and rail, and the epidemic has made a shocking impact! Problems such as shortage of ships, shortage of lockers, and port congestion are not a problem for him.
We are not afraid even if the port is blocked! Taiwan Hua Chairman Yan Yicai has "four trump cards"
Taiwanese Hua Chairman Yan Yicai
The new coronavirus epidemic that has swept the world since 2019 shows no sign of letting up. Misfortunes never come singly. The conflict between Russia and Ukraine has affected the world. Prices have risen in many countries, and even economic growth has been hindered. .
Compared with the pessimistic mood in all walks of life, Yan Yicai, chairman of Taihua Group, Taiwan’s first listed company focusing on all-round logistics, said that it was the first time he had seen such a situation in the shipping industry in more than 40 years of working in the industry. prosperity.
Yan Yicai is quite optimistic about the shipping industry in 2022. He used "clear skies, smooth sailing" as an annotation. As early as September last year, Taihua Chairman Yan Yicai raised his estimate half a year ago that the profit in one year would exceed the sum of the past 10 years. He said with a smile that it should be revised to the profit in one year exceeding the sum of the previous 15 years.
In the past year, many global shipping problems such as ship shortages, container shortages, and port congestion have not been a problem for Yan Yicai. "Let the wind and waves rise, sit firmly on the Diaoyutai," Taihua Group's revenue and profits are both sailing. Moving forward, why should he do it?
Yan Yicai at the Taihua shareholders meeting
Taihua Group is a comprehensive logistics group with more than 1,500 employees around the world. Its subsidiaries include the Taiwan-listed company "Taihua Holdings", Taihua International Logistics, Tai Kong International Logistics, and United Udafang Logistics, Shangjun International Logistics, Zhongzhong (Guangzhou) Commercial Factoring, Huihua International Logistics, Saiaodi Logistics.
Yan Yicai started from scratch. When he established Taihua International, a freight forwarding company in Taipei in 1984, there were only 6 people. In 1987, he registered Taihua International (Hong Kong) in Hong Kong and expanded his business scope into overseas markets. In 1990, Yan Yicai established his first base in Xiamen to expand the mainland market. In 1998, he officially entered the air transport business.
2000 was another milestone year in Yan Yicai's entrepreneurial career. He established Shanghai Taihua Freight Forwarding Company and moved the group's general management office from Taipei to Shanghai. In addition to shipping freight forwarding, he also squeezed into the mainland's domestic trade logistics market. In 2008, a subsidiary was established in Vietnam to expand into the Southeast Asian market.
In 2009, Yan Yicai sent Taihua Holdings to the Taiwan Securities Market for OTC trading, and the group's business also entered a period of transformation. In addition to its layout in Japan, South Korea, Southeast Asia, Malaysia, Thailand, Cambodia and other countries, Taihua Holdings also officially landed in 2016 is listed on the Taiwan Stock Exchange.
Along the way, Yan Yicai has been "buying, buying, buying" and has become a famous "King of Mergers and Acquisitions" in the cross-strait logistics industry. Through mergers and acquisitions, he has the "four trump cards" of sea, road, air and rail, especially the "epidemic". "Shocking, it has highlighted its advantages during this epidemic and taken advantage of the situation to rise.
China-Europe trains
At present, Yan Yicai's Taihua Group has 7 brands, 29 holding companies, and nearly 80 operating locations. Its business covers cross-strait, three places, Northeast Asia, Southeast Asia and other places. Because Taihua holds four trump cards and has the advantages of multi-modal transportation by sea, land, air and railway transportation, even if it encounters global logistics problems such as shortage of ships, shortage of containers, and port congestion, it will not be able to defeat it.
For example, if there is a shortage of warehouses or container shortages in shipping, including port congestion, Taihua can adapt and provide sea and air combined transport, sea and rail combined transport or road and railway combined transport to meet customer needs.
In recent years, since the transportation time of China-Europe freight trains is only 1/3 of sea transportation, the transportation cost is less than 50% of that of air transportation. During the epidemic, Taihua's China-Europe freight train logistics team was delighted to see a wave of orders, which led to another good performance in operating income.
Yan Yicai was one of the first people in the cross-strait logistics industry to see the business opportunities of China-Europe trains. As early as 2014, Taihua invested in the China-Europe train business. In 2019, it established a special railway business department and established operations in Zhengzhou, Xi'an, Dalian , Chengdu, Chongqing, Wuhan and other locations. Last year, Zhao Yanqiu, account manager of Taihua Zhengzhou Branch, said in an interview that China-Europe trains accounted for 90% of his company's business volume, and most of it was sent to Europe, accounting for 70%.
He got married and started a business when he had nothing to do. Yan Yicai worked hard in mainland China.
Yan Yicai (2016)
Yan Yicai, born in 1955, graduated from Taiwan Ocean University Shipping Management. He has been engaged in shipping for more than 40 years, Taiwan Since its establishment, there have been 38 years of history. Yan Yicai started from scratch and worked for 6 shipping companies before founding Taihua International in Taipei.
has never lost money since the company was listed. When an epidemic hit, he relied on his diversified and integrated layout for more than 10 years to create the greatest comprehensive benefits in history. He earned more in one year than in the past 15 years combined, which is a miracle!
Yan Yicai started his own business when he was in college. He was 30 years old when he founded Taihua International. Yan Yicai was born in a farm family. Between the ages of 38 and 41, he was sent to the hospital for emergency treatment 14 times due to drinking or excessive fatigue. He also said that his physical foundation was not very good. His mother farmed in the countryside and her feet were soaked in water all day long. She had osteoporosis and her mother gave birth to him when she was 48 years old.
What’s interesting is that Yan Yicai pays more attention to the professional manager mechanism when it comes to succession. Taihua’s management team, including directors and shareholders, does not include any of his family members. He has also stated that he will not let his children take over.
Objectively speaking, mainland business is the core of Taihua. Compared with Hsinchu Freight, Tai Wing Freight, and China-Philippines Co., Ltd., which have early deployed the mainland market, Yan Yicai entered the mainland market more than 10 years later. Regardless of background, financial resources, The personal connections are not as good as those of the early Taiwanese logistics giants. Because of this, as the boss, he personally sits on the front line of the business, and the company's development is actually better than the industry "big brother" who was at the forefront in the past.
Yan Yicai
In order to support his entrepreneurship, his wife had to sacrifice, shut down the factory in Zhuhai, and all his children settled in the United States. Previously, his family of five lived in four places: mainland China, Taiwan, the United States, and the United Kingdom.
In the years when he first came to mainland China to start business, Yan Yicai worked more than 10 hours a day.
studied shipping management at Ocean University . Yan Yicai originally thought that he would be able to "apply what he learned" after leaving the society. Who would have thought that he went to 6 shipping companies. Due to the downturn in the industry, 3 companies failed, and even his last The service company also closed down. At that time, he was unemployed and thought that since he had nothing to do, he should get married first! On the second day after the wedding, he and his wife went back to their hometown in Changhua to hold a wedding banquet. As soon as the banquet ended at noon, his wife immediately ran to the Kaohsiung inspection container. Yan Yicai took the bus back to Taipei alone. During the trip, he thought that since he was married and had nothing to do, he might as well start his own business!
In 1984, Yan Yicai established Taihua Company in Taipei, specializing in logistics and freight forwarding. At that time, his wife was both the owner and employee of a small trading company and had no time to help.
Taihua Chairman Yan Yicai
"You have to dare to rush and work hard to succeed! " Yan Yicai said. When he went to Xiamen in 1990 to set up , a wholly-owned company, , he was very attentive to everything and used his skills as a part-time worker, and quickly won goodwill in the market.
The last shipping company that Yan Yicai worked for before starting his own business was Korea Hyundai Shipping. The previous five shipping companies included the Middle East Mediterranean line, some were on the Taiwan to West America route, and some were on bulk ships. He worked part-time. The fourth shipping company is a shipping company where the former first lady of the Philippines, Imelda, is the chairman. It is precisely because of this rich working experience that Yan Yicai knows everything about the entire shipping logistics operation system, from bulk shipping, container dispatching, general agent, port agent, to customs declaration, tally and other operations. Because of this, he later wanted to integrate the sea, air and rail multimodal transport layout through mergers and acquisitions.
By the way, before Yang Ming Shipping established its own shipping company in 2000, Taihua was Yang Ming's general freight agent in mainland China. Yang Ming Shipping's first container shipped from the United States to the mainland through transshipment was handled by Taihua.
Before setting up his first office in Xiamen in 1990, Yan Yicai obtained a Taiwan Compatriot Return Permit from Hong Kong Kowloon in 1987, went to Guangzhou to participate in the Canton Fair, and began to cooperate with a local first-class freight forwarder. Although he did not make any money from that freight forwarding company, Yan Yicai, with many years of experience in the industry, has keenly seen the unlimited business opportunities contained in the mainland market.
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