In June 2012, Hougu Coffee, the largest domestic coffee manufacturer, broke with its PE investors. Hougu Coffee claimed that the PE institution was interested in seizing control of the company after taking the stake. The PE side stated that Hougu Chairman Xiong Xiangru might abscond with the money and that there was no hope of listing in 2012.

In early 2011, a Beijing-based fund company reached an investment agreement with Hougu Coffee. After the introduction of this equity investment company, Hongtian Group, the parent company of Hougu Coffee, remains the major shareholder, holding 59.74% of the shares. However, the contract signed by both parties earlier stated that the loan must be approved by two (or more) directors of the new investor before it is valid, and there are exactly two directors of the fund. This directly resulted in the bank's new loan credit approval being completed, but the fund refused to sign, leaving the company in a situation of "only repaying the loan", and Hougu Coffee's capital chain was in crisis.

The venture capital money came in in March 2011, but a dispute broke out between the two parties in October.

Originally, it was expected to use the power of venture capital to promote the company to the capital market. Unexpectedly, the dream turned into a nightmare, and the differences between enterprises and venture capital continued to expand, even on the verge of breaking the capital chain.

Hougu Coffee, which originally aimed to build "China's No. 1 Coffee Stock", not only failed to realize its established development strategy after introducing investors, but also failed to receive a new round of bank loans, and its assets Hougu, with a debt ratio of 70%, is almost bankrupt.

For private enterprises that lack modern management systems and capital operation experience, there are many cases of failure to introduce venture capital. The problems encountered by "Hougu Coffee" are exactly a lesson that most private enterprises urgently need to make up for in the process of shifting from production management to capital management.