In 2011, New Hope Group's sales amounted to nearly 80 billion yuan, and the whole group wanted to break through 100 billion yuan as soon as possible, but the result was that three years had passed and there was still no breakthrough, so why was it?

After research, analysis, and finally found the answer, is that our innovation is not enough, we must change, we must innovate. So, we formed the "five new" innovation concept.

01

New Mechanism

We all say that the mechanism of private enterprises is good, state-owned enterprises must be innovative, in fact, private enterprises, state-owned enterprises should be innovative.

When an enterprise is small, you can see its borders, count your employees, manage your team, the boss dictates nothing wrong, do not use the computer is not a big problem, because you can see;

When a little bit more people, you can not remember, you have to use the computer;

When the people under the more time, for example, at that time, we have more than 600 Domestic and overseas companies, two thirds of which I have never been, these 600 general managers I can not recognize all, so still use the previous method certainly not.

So, using a new mechanism to mobilize enthusiasm is particularly important. A few years down the road, we now have about a hundred partnerships, more than 400 partners, and these enterprises *** build, *** burden, *** create, *** enjoy, this is the new mechanism.

The biggest difference between entrepreneurs and professional managers is that professional managers only do what they should do when they get paid, while entrepreneurs have no boundaries and are determined to do what they think they should do, and these partners are entrepreneurs.

02

New Youth

In the past few years, we have properly installed the old colleagues who started the business together, and let the young and energetic people to take the main positions in the company. For example, my daughter, Liu Chang, has led the company's growth step by step, in which a group of young people are playing a bigger role, and Liu Chang is just one of them.

This year, we are going to recruit 30,000 employees, the vast majority of whom are college students, and we have formulated a number of plans, including business plans, training programs, and so on, and made a lot of arrangements, in the hope that young people can play a greater role in the future.

03

New Technology

We are doing agri-food, bio-technology, digital technology is very important, so we are in the bio-technology, digital technology management efforts in a few years has made considerable achievements, won seven national scientific and technological progress of the second prize. We have won seven second prizes for national technological progress. The progress of science and technology has led to the continuous improvement of the Group.

04

New Tracks

The agri-food sector is characterized by a proliferation of new upstream and downstream tracks.

For example, we formed "Grassroots Capital", which is an industrial investment platform as well as a platform for innovation and entrepreneurship, and several enterprises have been incubated underneath, such as cold chain logistics. After three years of hard work, our cold chain logistics is likely to be the first in the country.

Now catering is very hot, catering inside the Sichuan hot pot is the most hot, Sichuan cuisine is the most important seasoning, so we have 70 years of history in Chengdu soy sauce, PI County bean paste integration, the whole into the "Sichuan Wazi" brand, now supplying 100,000 restaurants and hotels, domestic market Very big.

We found that "Hui Ji Food" company in Sichuan is doing very well in instant food, and has developed "There's a side of you" instant food, which adopts a new process -- sunshine, fermentation, handmade, and is made by hand. It uses a new process - sunlight, fermentation, handmade, and packed with seasonings, which is strong, tasty and nutritious, and is in short supply, so it is expanding its production to meet new markets. We support it to unite *** with the development, now become its controlling shareholder.

Now the pet economy is developing rapidly, we layout at home and abroad, such as the acquisition of Australia's largest pet food company, which is not yet listed, I think once listed the results will be very good. There are a lot of tracks like that.

We realized that healthcare was going to be big, so we looked for entrepreneurs and entrepreneurial managers in that area, and we found someone in Shanghai who had a good company system, so we invested in him decisively.

We are doing very well in healthcare, and some people say that Liu Yonghao, you are a pig farmer, how do you know about human diseases? I really do not understand, but there are other ways. Alibaba is doing well, but Ma Yun all day long said he did not understand the Internet. There is a saying that you don't understand can be used to understand the people, you know too much on the limitations, from the point of view of business managers may be so.

05

New Responsibility

First of all, we do food and agriculture, food safety, environmental hygiene, prevention and treatment of disease, etc., which are social responsibility, is the first.

Secondly, to participate in social activities, we require that middle-level cadres must each help a poor household, we participate in the national poverty alleviation of the glorious cause, inside and outside the formation of a sense of social responsibility.

What is the pattern brought about by the new mechanism, the new youth, the new technology, the new track, and the new responsibility?

I handed over the group's largest listed company, New Hope VI, to my daughter to manage six or seven years ago, when it had a market capitalization of 27 billion yuan, and looking at it today, the average market capitalization of 150 billion yuan in the last month has gone from 27 billion yuan to 150 billion yuan, which is obviously much better than what I had at that time.

This is a real investor to take the money to invest, which shows that the enterprise has progressed and grown. Not only has our main business progressed and grown, but we have also incubated so many industries. Because of the rapid development, many investors want to invest in me.

Mr. Xigang, the head of our Grassroots Capital, has this story to tell.

Six years ago, we wanted to innovate, so we set up financial "test beds", one for Houshang Capital and the other for Grassroots Capital. The company selected two people to be responsible for, give money, give tasks, give pressure, give direction, let them as partners **** with to do.

The first year, Xigang was very happy; the second year, he was crying because he lost 30 million yuan.

At this time, I asked him the right direction? Are you working hard enough? He said these are no problem. I said that if the direction, execution are not a problem, but also efforts, only a loss of 30 million dollars is nothing. He said give me five more years, "Grassroots Capital" give you a new hope. This is the real thing to do, this is called innovation.

On the other hand, we need to incubate information technology and digital technology.

I am the vice chairman of Minsheng Bank, the main shareholder, Minsheng Bank has made great achievements in the past 20 years, with 7 trillion yuan of assets. It has done a lot of technological innovation, but it is difficult to turn around.

So we set up a small bank - Xinnet Bank - armed with intelligence and digitalization, an idea that was endorsed by regulators in Sichuan province.

I found Lei Jun, found the Red Flag chain, etc., *** with the launch of the establishment of the new network bank, which is the third Internet bank in the country.

Three years have passed, and in 2019 we have realized an online management scale exceeding 100 billion yuan and 1.12 billion yuan net profit after tax, and have become a national high-tech enterprise, such a bank there are only two in the country.

What is the success of Xinnet Bank? By big data, by intelligence, by young people, by innovation, by change.

The new network bank has no network, no cash, all on the Internet and cell phone operation, "second application, second to do"; in addition, it has no threshold, do not need three years of financial statements, do not guarantee, we provide a full range of financial services to enterprises and even rural areas.

In 2019, the U.S. Ambassador to China took several U.S. financial executives to visit Xinnet Bank, and they commented that Xinnet Bank is the best in the world.

In the past few years, we have not only made progress in financial technology, but also made great strides in smart manufacturing and industrial internet.

We require every department of the Group to carry out the construction of informationization, intelligence and digitalization, and must be at the forefront of the industry. This forefront is the first place or tied for first place.

New Hope Six and information technology has done very well, but not enough, information technology is the first step, with information technology centralized, and then realize the digitalization, and finally realize the intelligent, which is called the traditional industry intelligent reengineering. We can do this for all pig enterprises, and all enterprises should do this.

Some people say that intelligence is high, is Ma Yun, Ma Huateng, they do things, we do not consider. Today not to consider these no problem, tomorrow it will be difficult.

In fact, now the intelligent re-engineering and industrial Internet has just begun, we did not catch up with the 3G, 4G era, in the era of 5G industrial intelligence, do not miss the train, I am using the "five new" innovation concept to promote intelligence.

The Hou Sheng Industrial Capital, mentioned earlier, has now issued the fourth phase of the fund. No one recognized it at the time, so the first phase of the fundraising plan is far from complete. The fourth issue raised a dollar fund, all $850 million in three months, and the investors are Temasek, IFC, and some big companies in China, including Jingdong.

Why? Because the proceeds from our second and third fundraisers were $3 billion, with a return of over 30% a year. More importantly, we have created a Houshang Club, which allows 300 portfolio companies to combine, and we invest in those companies, and then those companies become investors, because we are practicing the concept of proper health.

We incubated the consumer sector, the healthcare sector is promising, and we incubated the healthcare industry fund next, and now we are working with local governments, and we are making a lot of investments in healthcare.

We have also set up funds to support investments in industrial internet and technology. We worked with the government to set up a "smart city and countryside" investment fund, using it as a trailblazer and a "scout" to identify opportunities, collect talent and make investments. Once a good opportunity is found, the group will follow up with investment.

In this way, we have invested in many enterprises, and the biggest advantage of doing so is that there are teams and talents.

In fact, it doesn't matter if you know the profession or not, there are a lot of things I don't know and I don't need to know. A person and understand, age and experience but are outdated experience, which is not much help to entrepreneurship and innovation.

You'd better use a young man in his twenties or thirties who has worked in an industry and is very dedicated and entrepreneurial. Use him, trust him, support him, help him, and recognize him.

A lot of enterprises are changing from external to internal circulation, no matter how the wind and clouds change outside, how big the difficulties are, we have to be down-to-earth to do our own thing, the most important is three:

First, the mechanism is good or not; second, with or without the use of young people; third, is not in the scientific and technological innovation.

If these three things are done, what are you afraid of.