Deciphering the whole process of Huiyuan's defeat (2)

Rejection of takeover was the reason for Zhu Xinli's downfall?

In 2008, the sensational Coca-Cola initiated the acquisition of Huiyuan. After Huiyuan threw out the news of "pending marriage", Coca-Cola offered a high price of HK$ 654.38+0.79 billion to "marry" back to Huiyuan. This is a deal that both sides are eager for. As a beverage giant, Coca-Cola's carbonic acid business is tired and needs new business growth points. Huiyuan, as a domestic leader, occupies almost half of the country, and Coca-Cola certainly welcomes it. Shareholders such as Danone of Huiyuan also need to realize capital.

Although Zhu Xinli tried to publicize his indifference to the acquisition, in fact, Zhu Xinli was already waiting for the rice to be cooked. I don't know if it was the guidance of Delong's magnificent plantation that made him fascinated by upstream agriculture. In short, he needs this huge sum of money to do the ecological agriculture he has always wanted to do.

From the perspective of Yili Heavy Gold Ranch, COFCO Heavy Gold Farm and Shuanghui's entry into aquaculture, it is understandable to extend to the upstream of the industrial chain to gain market dominance and even raw material pricing power. However, unlike Nongfu Spring's "tinkering" to find a place to grow oranges, Huiyuan's ecological agriculture is very grand. Including fruits, vegetables, tea and other very diverse categories, all over the territory of more than half of the country, and it is a combination of primary, secondary and tertiary industries. Any one of them can destroy a company, but Zhu Xinli wants to win everyone.

Zhu Xinli's abacus is clear. With these backgrounds, he is the biggest front end of China's supply chain, and all the business behind him can only be his downstream, including the acquisition of his Coca-Cola. To this end, he also wrote the supply agreement into the contract with Coca-Cola. By selling Huiyuan, he can use this 654.38+0 billion to incite Huiyuan's agricultural dream that looks more magnificent than Delong.

The reason why Zhu Xinli can't wait is that Huiyuan "will get old if you don't get married". On the one hand, Zhu Xinli is 60 years old, and he is deeply tired of doing his best for Huiyuan, but none of his children are willing to take over. In addition, Huiyuan's business has been going downhill. If it doesn't get rid of it quickly, the prosperity bubble will burst, and it may be in its hands. Also, Huiyuan has lost weight twice for this merger. The number of sales representatives has been reduced from 3,926 to 2,520, and now it has been reduced to 700. In addition, Zhu Xinli has begun to spend money on its grand blueprint, throwing billions of real money ahead of schedule.

Unexpectedly, in 2008, the Olympic Games, the Wenchuan earthquake and the 30 years of reform and opening up, the people's patriotic enthusiasm was particularly high. In addition, the country began to change from the idea of introducing foreign capital to the idea of promoting national brands. This year, the state promulgated the Anti-Monopoly Law, and the case of Coca-Cola's acquisition of Huiyuan was the first violation of this new law. At that time, almost all the top five companies in every industry in China were foreign investors, and the government could not sit idly by. What's more, Coca-Cola was so arrogant that it bought a 0/00% stake in Huiyuan/KLOC, which was a gesture of challenging legal authority. Moreover, judging from the past historical behavior, Coca-Cola is not friendly to national brands, and the tragedy of national brands being acquired may still happen to Huiyuan. In the unprecedented wave of public opposition, this acquisition, which both sides are determined to win, was rejected!

Zhu Xinli is stupid! The enterprise is to "be a son and sell as a pig". "Why can foreigners sell the company, but I can't?" Zhu Xinli think impassability. Indeed, China's policy environment has added great uncertainty to business operations, but Zhu Xinli is not without problems. Under the initial intention of selling pigs, breeders will not pursue the agility, sensitivity and cleverness of training pigs (scientific and lean management), but the immortality of pigs (evergreen business spirit). I am anxious to raise a child and sell it at a good price, otherwise I will be too old and lose money if I die.

Faced with this blow, Zhu Xinli, as always, encouraged everyone's morale. He wrote an internal letter to the staff. But the aversion to the beverage industry itself is obvious. Zhu Xinli, who has a grand blueprint in mind, disdains the drudgery of producing canned drinks, which is too "low-end" and too slow.

The cooked duck flew, but what about the promised project? To make matters worse, the financial crisis came in 2008. Later, some buyers such as COFCO communicated with Huiyuan, but Zhu Xinli could not consider the price of 3 billion yuan. What about the spilled money? Projects that have been launched will continue to be supported, and all projects that can be withdrawn will be withdrawn. Many local leaders are dumbfounded. What is the annual output of the plants planted by farmers? Zhu Xinli, who promised to benefit farmers, accidentally dug a hole for farmers. These projects that have already started are also hungry wolves, leaving Zhu Xinli too busy to take care of him.

The cliff is out of control.

Since we want to sell drinks bottle by bottle, laid-off workers have to recruit again. Zhu Xinli found a large number of veterans and rebuilt the team he cut down. The significance of this exchange of blood to the company is self-evident. Huiyuan's business continued to decline, but the company's liabilities continued to rise.

During the period from 2008 to 20 16, the return on equity of Huiyuan Juice never exceeded 5%, and the capacity utilization rate was only 30%. However, Huiyuan is "not short of money". They not only borrowed a lot from banks, but also sold assets to keep Huiyuan alive, in addition to a lot of government subsidies. In 20 12, Huiyuan suffered a loss for the first time, but received a government subsidy of 25 10/00000. Since then, Huiyuan's losses have gradually expanded, and Huiyuan's practice of robbing Peter to pay Paul has become more and more frequent.

Huiyuan has sales every year. 20 15 sold 9 companies including Beijing Huiyuan and Jiangxi Huiyuan, totaling181200 million yuan. Undoubtedly, selling assets can achieve the purpose of impairment. More importantly, the profits of these selling companies and high government subsidies have brought Huiyuan a prosperity of "steady growth in revenue, gross profit and net profit, outperforming the broader market". In 20 16, the company "earned" RMB 6,543,800+032,800, but excluding other net income of RMB 6,543,800+045,000 and additional income from the sale of subsidiaries of RMB 38,493,000, Huiyuan actually lost RMB 303 million.

Money is tight, and the capacity utilization rate is only 30%, but the action of building a factory in Zhu Xinli has not stopped. "The factories were not built in order, but they were built anyway. The reason is that there is logic in the process of building a factory and funds can be moved. " Fang Lie, a senior investor, analyzed. Although there is no textual research on the mode of capital flow, it is an indisputable fact that Huiyuan spends a lot of money.

Around 20 10, in order to rebuild the sales system, Huiyuan's sales staff once soared to 17000. In 20 14, Huiyuan Juice started the construction of the company's business hall, and after half a year, more than a thousand business halls were built all over the country to compete with traditional distributors to sell goods. Let Huiyuan's already chaotic sales system become more chaotic.

In 20 14, Zhu Xinli also spent 3 billion yuan (originally planned to be 5 billion yuan) to use An Deyu capital to participate in the restructuring and reform of Sinopec's sales business. Three years later, the expected listing of the new company has not been realized, and the stock has not been redeemed, so Zhu Xinli's capital chain is even more tense. Since then, Zhu Xinli's assets have been frozen by 4 1 100 million due to the pledge of equity by An Deyu Capital. Apart from these large-scale cooperation, Zhu Xinli's attempts to diversify have never stopped, but few have succeeded. In addition, Huiyuan also cooperated with Jiao subsidiary to build e-commerce channels, participated in O2O, and even made Huiyuan, a mobile application under Huiyuan.

The 20 17 interim report shows that Huiyuan's total liabilities exceed 1 10 billion yuan, and nearly 10 billion of these total liabilities are obtained through banks, financial leasing and corporate bonds. And the interest burden is great. Huiyuan pays about 500 million yuan in interest to banks and other channels every year. Huiyuan juice business is bleak, but it doesn't need that much money. And in order to reduce expenses, Huiyuan Juice laid off 3965 people in 2065, 438+07. But Zhu Xinli's dream of "big agriculture" is a bottomless pit that burns money, and Zhu Xinli's high hopes are pinned there. It is inevitable to transfer some funds from listed companies to complete the second growth curve of his life.

Soon things were confirmed and Huiyuan was suspended. From August 20 17 to March 20 18, Huiyuan provided a short-term loan of 4.275 billion yuan to another affiliated company in Zhu Xinli. The loan has exceeded 8% of Huiyuan's assets, but Huiyuan did not disclose it. Huiyuan suspended trading on April 3, 2008+2065438. Not only was the loan not made public, no agreement was signed, and it was not approved by the board of directors, so the money of the listed company was quietly transferred to the unlisted company. According to the regulations of HKEx, Huiyuan will be disqualified from listing if it fails to meet the conditions for resumption of trading before 65438+3 1 in 2020.

Obviously, Zhu Xinli was short of money, so Huiyuan found a new "buyer" again. 2065438+April 2009, Tiandi 1 plans to invest 3.6 billion yuan, accounting for 60% of the shares, and Huiyuan invested 2.4 billion yuan in assets, including the trademark of Huiyuan Juice, to establish a new company. But three months later, the project died. "Huiyuan has distributed trademarks to many enterprises because of debt problems. If Tiandi No.1 wants to obtain the trademark of Huiyuan, it needs the consent of all enterprises holding the trademark, but it is too difficult. "

In 20 18, Zhu Xinli was still the richest man with a net worth of 3.5 billion yuan on the Hurun Report. In 20 19, he became an "old lai" whose consumption was restricted many times. 2065438+On September 20th, 2009, due to the above-mentioned equity pledge, China Merchants Bank applied to the court for pre-litigation property preservation, freezing Zhu Xinli's assets by 41030,000 yuan, and Zhu Xinli entered the list of untrustworthy people. The thorny problem doesn't stop there.

Stranded projects and large and small creditors all over the country have become a reality that Zhu Xinli has to face. Various suppliers such as sapling merchants are also surprised that Huiyuan will use 50,000 yuan and 654.38+10,000 yuan to pay off debts. 2065438+September 2009, a paper announcement on the P2P platform of Pioneer Group tore Huiyuan's huge debt chain. Zhu Xinli No.4 Company is unable to repay the debt of 465,438+085,000 yuan, and plans to pay off the debt with Huiyuan Juice series products, and the loan guarantee is Huiyuan Group.

Zhu Xinli once said, "If we can follow the original plan, Huiyuan is estimated to have become a billion-dollar company, and it will not fall to the end today." However, if Huiyuan is sold and holds billions of dollars in cash, we don't know whether Zhu Xinli will generate billions of dollars in cash or billions of dollars in deficit. But what is certain is that 654.38+00 billion can't support Zhu Xinli's dream of "big agriculture".

6 One's Huiyuan

In the sound of the disintegration of Huiyuan Empire, Huiyuan ushered in the biggest personnel change in its 28-year history. On February 12, 2020, Zhu Xinli and her daughter both withdrew from Huiyuan. On February 14, Huiyuan was disqualified from listing. Huiyuan has always been the Huiyuan of Zhu Xinli. Without him, where would Huiyuan go?

It is true that Zhu Xinli raised Huiyuan as his son. For Huiyuan, Zhu Xinli gave up almost all his hobbies, not singing and dancing, not playing cards and mahjong. In order to catch up with the time, he broke through the glass door of the office, walked into the sewer more than one meter in broad daylight, and loaded and unloaded with the employees at the beginning of his business. He doesn't look for "part-time employees". He wanted employees to call Huiyuan their home, so he became Huiyuan's parent.

Along the way, many of Zhu Xinli's decisions could not be understood by the people around him. From the early village director to the huge sum of money behind winning CCTV advertisements, Zhu Xinli finally succeeded. After more than ten years of success, it is hard for Zhu Xinli not to stick to his point of view. In 200 1 year, the state issued the Three Gorges resettlement policy, and Zhu Xinli decided to invest heavily to establish a citrus production base. However, the seedling growth period needs at least three years, and the idle production line is a huge waste of funds. Zhu Xinli pushed his way through the crowd. He calculated the conscience account and the political account, because the local people were only willing to plant trees when they saw hope. In this way, the project was successfully implemented.

Family management does have many advantages in the early stage of enterprise development. However, with the growth of enterprises, if the organization and management mechanism are still not updated, the disadvantages will soon appear. In July 2008, a post named "A Letter to Mr. Zhu Xinli" appeared on Tianya Forum. The letter accused Huiyuan of complicated nepotism, cronyism, exclusion of dissidents and chaotic management.

For a long time, Zhu Xinli's sons, daughters, brothers, younger brothers, son-in-law and many other relatives have held important positions in Huiyuan. Some villagers complained that most of Huiyuan's employees were brought from their hometown in Shandong by Zhu Xinli, which didn't boost local employment. Within the enterprise, it is also easy to crowd out non-Shandong "outsiders".

Since 2007, more than 10 deputy general managers have left Huiyuan, and every professional manager will take a group of people with him when he leaves, which makes the brain drain in Huiyuan serious. In 2008, Mao Tianci, the vice president stationed in Huiyuan from Danone, once laughed at himself, "I am the chief model of Huiyuan." Zhu Xinli's relatives, fellow villagers and comrades-in-arms in the company are beyond the control of professional managers.

In September of 20 14, Su, who killed all the bureaucrats, was dug up. The outside world is eagerly looking forward to membership reform. However, Su, who led the core team into Huiyuan, left after one year, and Huiyuan's "de-familyization" failed again. Su revealed: "As long as the family members go home for dinner on Sunday, they can basically form a * * * knowledge."

In addition to not giving professional managers room to display their fists and feet, Zhu Xinli has not given enough talents enough incentives. Unlike Ma Yun, Niu Gensheng and other entrepreneurs, they have created a number of billionaires and multimillionaires in the process of listing. It is not difficult to see from Huiyuan's shareholding structure that it is the Zhu Xinli family that really benefits from Huiyuan's growth and listing. Zhu Xinli has always held his stake firmly in his hand, while Ma Yun's stake in Alibaba is only 5%. The famous saying that "people gather and disperse, but wealth gathers and disperse" also explains the reason for Huiyuan's brain drain.

Many people say that Huiyuan's products are too single and not diversified, but in fact, the fate of Huiyuan's product line is a true portrayal of Huiyuan. In the early years, Zhu Xinli established Huiyuan brand by one-step method. However, since then, Zhu Xinli has been busy with expansion, and there is no competent talent inside, so Huiyuan has almost no innovative products since then. The so-called new products are just imitations learned from others. Huiyuan has as many as 80 product categories, but many of them are just a flash in the pan on the shelf.

The backward new products show the fatigue of Huiyuan and its organization. Zhu Xinli is 60 years old. He can't do all the production, supply and sales. But Huiyuan has no second Zhu Xinli. When running wildly on the capital road, no one can stop him from constantly hollowing out listed companies and giving blood transfusion to his "big agriculture". The power not in the cage is terrible, and it also leads Zhu Xinli to the abyss.

Zhu Xinli himself felt that if he sold Huiyuan, the situation would be different. There is no doubt that there is such a possibility. However, we need to be alert that China has passed the stage of extensive development. Under the guidance of wrong ideas, having more resources may bring more disasters. Zhu Xinli unconsciously embarked on the road of Delong. Even if it becomes a 100 billion company, what can it do? Delong still fell.