After trading suspension for nearly 3 years, Huiyuan Juice has finally come to a forced delisting step.
On January 13, Huiyuan Juice issued an announcement stating that the Stock Exchange’s Listing Review Committee will A review hearing was held on December 9, 2016 to review the delisting decision. On January 5, 2021, the Listing Review Committee notified the company that it had decided to maintain the delisting decision.
Huiyuan Juice The board of directors stated that it was disappointed with the decision of the Listing Review Committee and did not agree with the decision. It is believed that the company has tried its best and has used all available resources to try to meet the conditions for trading resumption.
On January 6, 2021, the Stock Exchange informed Huiyuan Juice that the company’s listed company status will be It will be officially cancelled from 9 a.m. on January 18, 2021.
01 Zhu Xinli’s entrepreneurial road
Huiyuan Juice founder Zhu Xinli is a well-known farmer entrepreneur. In the 1990s, he resigned from public office and took over a loss-making fruit cannery in Yiyuan County, Shandong Province, which was the predecessor of Huiyuan.
After starting a business, Zhu Xinli focused on the field of concentrated juice. His idea is to use the rich fruit resources in Yimeng Mountain to transform the canning factory into a juice factory and export it abroad.
At that time, only Germany had modern equipment for producing concentrated juice. In order to import equipment, Zhu Xinli went to the Munich Food Fair alone and brought back an advanced concentrated juice production equipment.
In order to get better development, Zhu Xinli also moved the company to Beijing and started advertising on CCTV. The phrase”Huiyuan is called New Year” has allowed Huiyuan Juice to enter countless families and become a smash hit”national juice”.
In 2007, Huiyuan set a record for the largest IPO on the Hong Kong Stock Exchange, with an increase of 66%on the day of listing, and its market value once exceeded HK$31.3 billion.
In 2008, Zhu Xinli was 56 years old and has been operating Huiyuan Group for 16 years. The start-up on thin ice gave him the idea of ”retirement”. He complained in front of the media,”It is indeed hard work to do Huiyuan. There is nothing harder than it. For 16 years, I have not taken a Sunday or a day off. During the Spring Festival, I have never had a good rest.”
At this time, Coca-Cola asked Huiyuan Juice reaches out an olive branch and wants to buy Huiyuan Juice. In this regard, Zhu Xinli is also very happy. His idea at the time was:Coca-Cola to make juice, and to make his own fruit industry. Huiyuan’s concentrated juice and jam will be the only global supplier of Coca-Cola.
Zhu Xinli feels,”If the acquisition is successful, I will follow it to more than 100 countries in the world. It is very difficult to do it on my own. I will not be able to make it in 10 years or even a lifetime. There are more than 170 countries in the world.”
Unfortunately, this seemingly win-win merger, due to monopoly issues, was business Department is prohibited. Since then, Huiyuan Juice has been in a slump, with its stock price plummeting and losing money for years.
02 Accumulated hard to return
From 2009 to 2016, Huiyuan Juice revenue scale It rose from 2.85 billion yuan to 5.76 billion yuan, but the net profit was only about 300 million yuan at the peak. In 2014 and 2015, the net profit lost 130 million yuan and 230 million yuan respectively.
What’s worse, Huiyuan Juice’s profits come from government subsidies and asset sales. .
From 2011 to 2016, Huiyuan Juice“other income” was 260 million, 280 million, 340 million yuan, 110 million yuan, 220 million yuan, and 145 million yuan. In the annual report, the company stated that other income is mainly government subsidies.
Taking 2013 as an example, the net profit of Huiyuan Juice was 230 million yuan, which included other income 340 million yuan, disposing of 430 million yuan of revenue from the Chengdu and Shanghai factories.
So, the company’s non-net profit deduction is ugly. From 2009 to 2016, in the 7 years, Huiyuan Juice only made a profit of 24.5 million yuan in 2010, and all other years were at a loss. Among them, the largest loss in 2014 was 580 million yuan.
In April 2018, Huiyuan Juice illegally provided nearly 4.3 billion yuan in illegal loans to affiliated companies. Was ordered to suspend trading. Two months later, the Hong Kong Stock Exchange listed the resumption conditions and required Huiyuan Juice to conduct a strict self-examination to prove the management’s integrity. Announce the lack of financial performance and explain audit revisions, etc.
However, Huiyuan Juice has not yet been able to announce its performance, and it has not been able to provide loans for illegal loans. The public explained. Therefore, the company has also embarked on the road of delisting and delisting.
In April 2019, Huiyuan Juice once issued an announcement stating that it will cooperate with Tiandi One cooperation, if the cooperation is successful, Huiyuan Juice can also Temporarily alleviate the debt crisis, but this cooperation eventually”aborted.”
Missing the opportunity to sell Coca-Cola is the external cause of Huiyuan’s fall. In addition, the internal management of Huiyuan Juice is often criticized.
The most talked about outside is his family management and Zhu Xinli’s absolute authority in Huiyuan. A former employee of Huiyuan Juice once told the city circles that the most difficult thing for him to bear is the arbitrariness of the company system.
This can be seen from the personnel turbulence in Huiyuan Juice.
From 2011 to 2017, the number of employees in Huiyuan Juice dropped from more than 10,000 to 7,000 within two years. More than, from 2013 to 2014 alone, the number of employees soared from more than 7,000 to more than 10,000 in one year.
The 2016 annual report shows that Huiyuan Juice has a total of 4,266 employees, which is 13,470 less than in 2014.
Under the superimposed influence of many factors, such as missed opportunities and poor management, the former fruit juice king is no longer in its former glory and can only embark on the road of suspension and delisting.
(Author | City Circle Qi Minqian, Editor | Liu Xiaoying)