4 The acquisition was rejected, is the reason for Zhu Xinli's fall?

In 2008, the sensational Coca-Cola merger of Huiyuan was launched. After Huiyuan threw out the "to be married" information, Coca-Cola opened a high price of 17.9 billion Hong Kong dollars to "marry" Huiyuan. This is a transaction that both parties are very eager. Coca-Cola as a beverage giant, the carbonated business is weak need for new business growth, Huiyuan as a domestic leader almost half of the territory, Coca-Cola certainly not want. And the shareholders of Huiyuan, such as Danone, also need to capitalize on it.

Although Zhu Xinli is trying his best to publicize his indifference to acquisitions, he is actually waiting for the rice to fall out of the pot for this deal. I don't know if it was the guidance of Delong's majestic plantations that got him hooked on upstream agriculture in the first place, but in any case, he needed this big money to do the eco-agriculture that he had always wanted to do.

From the Yili gold ranch, COFCO gold farms, Shuanghui into the farming point of view, to the upper reaches of the industrial chain to obtain market dominance, and even raw material pricing power, no excuse. But with Nongfushanquan "small" to find a place to grow oranges is not the same, Huiyuan's ecological agriculture is very ambitious. Including fruits, vegetables, tea and other very many categories, sprinkled with more than half of the map of the country, but also one, two or three industries combined together. Any one of these single point to take out may be crushed a company, but Zhu Xinli to take all of them.

Zhu Xinli's calculations played very "clear", hold these origins, he is China's largest supply chain front, behind all the business can only be his downstream, the acquisition of his Coca-Cola is no exception. For this reason, he also put the supply agreement into the contract with Coca-Cola. Sell Huiyuan, he can take the 10 billion to pry that looks more ambitious than Delong Huiyuan big agricultural dream.

Let Zhu Xinli can not wait for the reason is that, at that time, Huiyuan "not married to the old". On the one hand, Zhu Xinli has been 60, for Huiyuan bowed to exhaust him y tired, but the son and daughter of no one willing to take over. In addition, Huiyuan's business has been going downhill, do not hurry to get rid of the boom bubble burst, may be smashed in the hands. Also, Huiyuan has long been for this merger and acquisition of two big slimming, sales representatives from 3926 reduced to 2520, and was compressed to 700 people. There is no room for maneuver is that Zhu Xinli has begun for their own ambitious blueprint for the gold, will be billions of real money ahead of the spread out.

But never thought that in 2008, the Olympic Games, the Wenchuan earthquake, 30 years of reform and opening up, the people's patriotic mood is exceptionally high. In addition, the country from the introduction of foreign investment ideas, began to change to enhance the national brand ideas. In that year, the country enacted the Anti-Monopoly Law, and Coca-Cola's acquisition of Huiyuan was the first case to violate this new law. At that time, almost all of the top five companies in every industry in China were foreign-owned, and the government couldn't just sit back and do nothing. Not to mention that Coca-Cola was so arrogant as to challenge the law by acquiring 100% of Huiyuan. And from the past history of behavior, Coca-Cola is not friendly to national brands, the national brand acquisition tragedy may still happen in Huiyuan. In the unprecedented wave of opposition from the public, this acquisition, which both sides aspired to, was rejected!

Zhu Xinli stupid! The enterprise is to "when the son of raising, when the pig to sell", "why foreigners can sell the company I can not?" Zhu Xinli can not figure out. Indeed, China's policy environment for business operations adds a great deal of uncertainty, but Zhu Xinli is not without problems. Under the original intent of selling pigs, a breeder is not going to seek to train pigs to be athletic and smart (scientific and lean in management), and to pursue their longevity (base in the spirit of business). Raise and sell at a good price, is a priority, otherwise too old, raised to death are losing money.

In the face of the blow, Zhu Xinli, as always, to boost everyone's morale, he wrote an internal letter to employees. But the words for the beverage industry itself dislike, clearly revealed. In his head loaded with grandiose blueprints, Zhu Xinli, has not seen a can of beverage production drudgery, this work is too "low-end" and too slow.

Cooked duck flew, but promised to go out of the project how to do it? The more tragic thing is that the financial crisis came in 2008. And then there are some buyers, such as COFCO and Huiyuan communication, but the price of three billion, Zhu Xinli impossible to consider. What about the money that has been spread out? The project continues to support the project, can withdraw all the projects to withdraw. Many local leaders are dumbfounded, farmers planted plants to produce how to do in the coming year? Said good for the welfare of farmers Zhu Xinli, but accidentally dug a pit for farmers. These projects that have begun are also a hungry wolf, so that Zhu Xinli has no time for him.

5 The cliff did not strangle the horse

Since we still have to sell drinks bottle by bottle, the laid-off workers have to be re-recruited up. Zhu Xinli brought in a large number of veterans to rebuild the ranks he had cut. The damage this bloodshed did to the company cannot be overstated, and Huiyuan's business continued to go down, but the company's debt continued to go up.

During 2008-2016, Huiyuan Juice's return on net assets never exceeded 5%, and capacity utilization was only 30%. But Huiyuan is "not lack of money", they not only a large number of bank loans, but also the use of assets sold for Huiyuan life, in addition to a large amount of government subsidies. 2012, Huiyuan first loss, but got 251 million government subsidies. Since then, the loss of Huiyuan gradually expand, Huiyuan demolition of the wall to make up for the practice of more and more frequent.

Every year, Huiyuan has a sale action, in 2015, the sale of Beijing Huiyuan, Jiangxi Huiyuan and other 9 companies, a total of 1.812 billion yuan. Needless to say, selling assets can achieve the purpose of reducing losses. More importantly, these sales of company profits and high government subsidies, for Huiyuan to bring "revenue, gross profit, net profit steadily increased, outperforming the market" prosperity. 2016, the company "earned" 13.28 million yuan, but excluding 145 million yuan of other Net income and 38.493 million yuan of additional gains from the sale of subsidiaries, Huiyuan actual loss of 303 million yuan.

Money is tight, capacity utilization rate of only 30%, but Zhu Xinli built a factory action did not stop. "Factory built up is no order, but they still built, the reason for this is that in the process of building a factory there is a logic that can free up funds." Senior investor Fang Lie analyzed. Although the way the funds to vacate can not be verified, but Huiyuan spend a lot of money is an indisputable fact.

Around 2010, in order to rebuild the sales system, Huiyuan's sales staff had once surged to 17,000 people. 2014, Huiyuan Juice started the construction of the company's sales office, after six months in the country built more than a thousand sales offices, and the traditional dealers to compete with the sale of goods. Let Huiyuan's already chaotic sales system has become more confusing.

In 2014, Zhu Xinli also threw 3 billion (the original plan 5 billion), the use of Deyuan capital to participate in the restructuring and reform of Sinopec sales business. The new company 3 years late promised listing did not materialize, the shares were not redeemed, Zhu Xinli's capital chain became more nervous. Since then, Zhu Xinli was subjected to a $4.1 billion asset freeze due to Deyuan Capital's pledge of its shares. In addition to these big cooperation, Zhu Xinli diversification attempts never stopped, but few successes. In addition, Huiyuan also cooperated with the dumpling company, build e-commerce channels, participate in O2O, and even made a mobile application belonging to Huiyuan "Huiyuan around".

The 2017 interim report shows that Huiyuan's total liabilities of more than 11 billion yuan, and nearly 10 billion of these total liabilities through banks, financial leasing, corporate bonds, etc., the interest burden is very large. Huiyuan a year to banks and other channels of interest less than about 500 million. Huiyuan juice business is dismal, in fact, does not need so much money. And in order to reduce expenses, Huiyuan juice in 2017 to cut the staff to 3965 people. But Zhu Xinli's "big agriculture" dream, is a bottomless pit of burning money, and there is Zhu Xinli's high hopes. It was inevitable that Zhu Xinli would divert some funds from the listed company to fulfill the second growth curve of his life.

It was soon confirmed, and Huiyuan was suspended for it, that from August 2017-March 2018, Huiyuan had provided a short-term loan of 4.275 billion yuan to another of Zhu Xinli's affiliates. This loan had exceeded 8% of Huiyuan's assets, but Huiyuan did not disclose it, and on April 3, 2018 Huiyuan was suspended. Not only was this loan undisclosed, there was no agreement in place and it was not approved by the board of directors, so it was a quiet transfer of money from a listed company to an unlisted company. The Hong Kong Stock Exchange stipulates that cut if the conditions for resumption cannot be met by January 31, 2020, Huiyuan will be removed from the listing status.

Obviously Zhu Xinli lack of money, so Huiyuan once again burst out of the new "buyer". 2019 April, the world's first had proposed to invest 3.6 billion yuan, accounting for 60% of the shares, Huiyuan with assets to contribute 2.4 billion yuan, including Huiyuan juice trademarks, the establishment of a new company. But three months later, the program died. "Huiyuan, because of debt problems, will be divided into many companies, the world's first want to get Huiyuan's trademark, you need to all hold the trademark of the enterprise agreed, but it is too difficult."

Zhu Xinli in 2018 is still on the Hurun list of billionaires with 3.5 billion yuan, but in 2019 he has been reduced to a number of restrictions on consumption of the "old lai". September 20, 2019, due to the aforementioned equity pledge, China Merchants Bank applied to the court for pre-litigation property preservation, freezing the 4.103 billion yuan of assets, Zhu Xinli into the loss of his assets, Zhu Xinli. billion yuan of assets, and Zhu Xinli entered the list of defaulters. And the tricky problem is not only these.

Stranded projects across the country, large and small debtors, has become a reality that Zhu Xinli had to face. Sapling vendors and other suppliers of all shapes and sizes are also surprised that Huiyuan will actually use 50,000, 100,000 "toothpaste type" of debt repayment.In September 2019, the Pioneer Group's P2P platform of a paper announcement, ripped open Huiyuan's huge debt chain. Four companies under Zhu Xinli's name, due to the inability to repay the 4.185 million yuan in arrears, intends to use Huiyuan juice series products to offset the debt, and the borrowing guarantee are all Huiyuan Group.

Zhu Xinli once said, "If you can follow the original plan, Huiyuan estimated to have become a 100 billion company, will not fall into today's situation." But if Huiyuan sold, take 10 billion in cash, Zhu Xinli will turn out 100 billion in cash, or 100 billion in the deficit, we do not know. But it is certain that 10 billion can not support Zhu Xinli's "big agriculture" dream.

6 One man's Huiyuan

In the disintegration of Huiyuan's empire, Huiyuan ushered in the biggest personnel change in its 28-year history of development. on February 12, 2020, Zhu Xinli and his daughter both withdrew from Huiyuan. on February 14, Huiyuan was removed from the listing status. The company has always been Zhu Xinli's Huiyuan, and without him, where does Huiyuan go from here?

From the start of the establishment of Huiyuan, said Zhu Xinli Huiyuan as a son to raise indeed not false. In order to be able to get the best out of your life, you need to be able to get the best out of your life, and you need to be able to get the best out of your life, and you need to be able to get the best out of your life. In order to catch up with him from the office of the glass door through the broken out, walking in broad daylight fell into the more than one meter of sewers, and the early days of the business and employees unloading trucks, loading goods together. He did not look for "working employees", he hoped that the staff to Huiyuan for home, and therefore he became Huiyuan's eldest.

Along the way, many of Zhu Xinli's decisions were not understood by those around him. From the early days as a village director, to the back of a huge amount of money to take down the CCTV advertising, and finally Zhu Xinli are successful. In 2001, the country introduced the Three Gorges immigration policy, Zhu Xinli decided to invest heavily in the establishment of citrus production bases, but the sapling growth period takes at least three years, the production line is idle is a huge waste of funds. Zhu Xinli, who is a conscientious account and political account, is willing to plant trees only when the local people see the hope. In this way, the project was successfully implemented.

Family management in the early development of the enterprise, indeed, there will be a lot of advantages. But as the company grows, if it still does not update the organization and management mechanism, the drawbacks will soon appear. 2008 July, a titled "to Zhu Xinli a letter to the boss" post, appeared in the Tianya Forum. The letter complained about the complexity of nepotism within Huiyuan, nepotism, exclusion of dissenters, and chaotic management.

For a long time, Zhu Xinli's son, daughter, brother, brother-in-law, son-in-law and many other relatives, are in Huiyuan as a key position. Some villagers have complained that more of Huiyuan's employees are brought by Zhu Xinli from his hometown in Shandong Province, and there is no pull for local employment. Inside the company, it is also easy to non-Shandong "outsiders" to form a sidelined.

Since 2007, from Huiyuan left the vice president of the level of managers, there are more than ten, and each professional manager to leave, will take a group of people, so Huiyuan serious brain drain. 2008, from Danone stationed in Huiyuan vice president of Mao Tianchi had mocked, "I'm Huiyuan's chief model." The company those Zhu Xinli's relatives, hometown, comrades in arms, professional managers simply can not manage.

In September 2014, Zhu Xinli dug up Su Yingfu, who used to "kill all the bureaucrats". The outside world is eagerly awaiting the reform of the membership. But led the core team into the Huiyuan Su Yingfu left a year later, Huiyuan "to the family" failed again. Su Yingfu revealed: "the company discusses what decision-making, family members as long as the Sunday home to eat a meal together, basically can form a **** knowledge."

In addition to professional managers do not have the space to perform, Zhu Xinli also did not give enough talent incentives. Unlike entrepreneurs such as Jack Ma and Niu Gensheng, who created a number of billion and multi-millionaires in the course of the group's listing. From Huiyuan's shareholding structure is not difficult to see, Huiyuan's growth, after the listing, the real benefits or Zhu Xinli family. Zhu Xinli has been firmly in the hands of the equity, while Jack Ma's stake in Alibaba is only 5%. The famous saying that "people get together and disperse, wealth gets together and disperses" also explains part of the reason for the loss of Huiyuan talent.

Many people say that Huiyuan's products are too single and not diversified enough, but in fact the fate of Huiyuan's product line is a true reflection of Huiyuan. In the early years, Zhu Xinli relied on his quick way to hit the Huiyuan brand. But since then, Zhu Xinli is busy expanding, there is no competent internal talent, so since then, Huiyuan almost no innovative products. The so-called new products are just imitations that follow others. Huiyuan product categories up to 80, but many on the shelves are just a flash in the pan.

Behind the new products, showing the weakness of Huiyuan and its organization. Zhu Xinli 60 years old, production, supply and sales he all carry down, has been unlikely. But Huiyuan no second Zhu Xinli. Running wild on the capital road, no one can limit him to constantly empty the listed companies, to their own "big agriculture" blood transfusion. The power not in the cage is terrible, but also let Zhu Xinli to the abyss.

Zhu Xinli himself felt that if Huiyuan sold, he would be a different story. Undoubtedly, there is indeed such a possibility. But the need to be vigilant is that China has long since passed the stage of rough development, under the guidance of the wrong thinking, have greater resources, may invite greater trouble. Zhu Xinli unknowingly followed the path of Delong. Even if it becomes a 100 billion dollar company, what can it do? Delong still fell.