Eagle tells the story of Business 2 Prince Milk
The business case that Eagles want to talk about today is:
The Story of Prince Milk (2)
Lactic acid bacteria drink for prince milk
Previous We finished talking about the rural boy Li Tuchun started from scratch to a value of 2 billion yuan, leading the brand he founded, Prince Milk, to soar to the sky.
From a common sense point of view, the next development of prince milk should be smooth sailing better and better;
But the reason why historical cases are interesting is that there will be drama, and drama will make history more exciting!
If Prince Milk can develop well so far, Yili and Mengniu will really have a strong opponent.
But the peak of princely milk really became his peak, and next, it was all downhill!
Soaring to the point of being in debt
In 2007, the sales of Prince Milk reached 2 billion, officially becoming the industry leader, with a market share of 70%.
Li Tuchun himself has also become a star entrepreneur, wherever the media reports, wherever he appears, he will become a guest of the local government.
When Li Tuchun achieved the results at that time, he would publicize a slogan to the outside world: "I want to be a thousand-year-old enterprise that will never fade!" ”
But he himself did not know that the disaster of the prince's milk was coming, and this disaster was also caused by his own hands!
The previous article said that Li Tuchun, who earned the first bucket of gold in his life by selling the wall calendar, began to diversify his investment, and the loss owed a huge debt.
After making money this time, Prince Milk also began the road of diversified investment;
Since 2005, Prince Milk has been involved in many industries - Prince Milk Clothing, Prince Milk Supermarket, Prince Milk Tourism, Prince Milk Real Estate, etc.;
How diverse you are, how diverse you are!
The ending is exactly the same as investing after selling the wall calendar to make money, and the prince's milk is full of debts!
Two bigger disasters
In 2007, the debt-ridden prince milk developed very difficultly because of the problem of the capital chain, the salary could not be paid, the supplier's payment could not be settled, and even sometimes even the company's office supplies needed credit;
At this time, Li Tuchun was very decisive, did not linger on the aura of the outside world, and returned to the enterprise to start his self-help road to the enterprise.
Banks are always the icing on the cake, certainly will not send charcoal in the snow, looking for bank loans has not been able to borrow, then seeking financing and listing has become the only choice for princely milk.
The power of one person is limited, Li Tuchun announced in the company that all employees can go out to raise financing for the company, as long as they pull financing, there will be major rewards;
More than a month later, the financing has been harvested, and three major international capitals, AB Capital, Morgan Stanley and Goldman Sachs, have invested in Prince Milk with an investment amount of 70 million yuan;
Another month later, Citibank, together with six banks including DBS Bank of Singapore and ABN AMRO Bank, provided Prince Milk with an unsecured low-interest loan of US$500 million.
Finally found the money, it should be said that the life of the prince's milk will be better,
But two greater catastrophes came;
Disaster one: in 2008, there was a major event in the dairy industry, the melamine incident;
As a result, sales in the entire dairy industry declined, and sales of prince milk were also dismal.
Disaster two: the financial crisis of 2008;
Most of the foreign banks went bankrupt, and Citibank, which lent prince milk, lost nearly $10 billion.
In order to protect itself, Huaqi Bank began to demand that the prince repay in advance, and the helpless prince's milk could only repay in advance;
At this time, prince milk has become very fragile, and the three investment banks of the British Union, Morgan Stanley and Goldman Sachs, which invested in prince milk, have shown the terrible side of capital - requiring prince milk to sign a VAM agreement, and if it cannot find someone to take over the investment within three months, it will swallow Li Tuchun's shares.
A company created by one hand, it is going to be handed over to others? Li Tuchun was not reconciled and had to find new investors.
Sent to prison by bigger ambitionists
Li Tuchun was sent to prison with two protagonists, the protagonist one: the Zhuzhou Municipal Government in Hunan Province, and the protagonist two: Wen Dibo (personal name).
Zhuzhou, Hunan
Please remember the protagonist of Wen Dibo, who let Li Tuchun lose everything and go to prison.
Since Prince Milk used to be a large taxpayer in Zhuzhou, Hunan Province, and would pay more than 100 million yuan in taxes every year, so the new investor Li Tuchun found was the Hunan Zhuzhou Government, in order to facilitate control and management, the condition proposed by the Hunan Zhuzhou Government was to arrange for Wen Dibo to become an executive of Prince Milk.
In the face of the imminent bankruptcy, Li Tuchun agreed to the conditions of the Zhuzhou government in order to save the prince's milk.
But things are completely different from what Li Tuchun thought, Wen Dibo used 4 sets of combination punches against Li Tuchun, making Li Tuchun lose everything;
Combination punch one: Wen Dibo and the three major investment banks expelled Li Tuchun from the round and got the control of the prince's milk himself;
Combination of punch two: Wen Dibo privately became two advertising agencies, undertook the advertising contract of about 12 million yuan of Prince Milk, but did not run a penny of advertising.
Combination punch three: Wen Dibo privatized the shares of the state-owned enterprise where he used to be, and then bought the trademark of Prince Milk at a low price, in other words, the brand of Prince Milk belongs to Wen DiBo!
Wen Dibo is the current ambitionist, and Li Tuchun is completely out!
Li Tuchun was stupid, but there was nothing he could do!
The lonely Li Tuchun does not want to be defeated like this, he has been planning his revenge plan;
It wasn't long before Li Tuchun's opportunity came!
Due to the very dismal performance of Wendibo's operation, dealers have lost confidence in Wendibo and especially hope that Li Tuchun can continue to operate.
Li Tuchun found this opportunity, borrowed nearly 60 million usurious loans, re-established the company "Xianshan Dairy" with the original team, and obtained the support of the original prince to the dealer, together with Li Tuchun prepared a "reserve for goods" of 50 million yuan, and employees also raised millions of shares, and a counterattack war is about to begin!
Above I said that Wen Dibo had four sets of combination punches, only three punches, and the last punch came, and this punch sent Li Tuchun to prison.
Wen Dibo looked at Li Tuchun and wanted to fight back, thinking: If he continues like this, his plan will be ruined!
Next, Wen Dibo took advantage of his position in the past government to use all power relations to use Li Tuchun's fundraising as a breakthrough point to send Li Tuchun to prison!
On June 21, 2010, Li Tuchun was arrested.
Freedom regained
Li Tuchun, who was in prison, wanted to cry without tears and refused to confess his guilt! He had a conviction in his heart that he must bring down Wendipo.
He constantly wrote letters to the Hunan Discipline Inspection Commission through his lawyer to report Wen Dibo's corruption, and soon after Wen Dibo was "shuanggui" and sentenced to 9 years in prison for accepting bribes and dereliction of duty!
In about a month, Xinlianhua and Sanyuan Dairy jointly acquired the bankrupt and restructured Prince Milk, and the once billion-dollar star halo enterprise completely disappeared from people's sight.
On January 20, 2012, Li Tuchun, who spent 15 months in prison, was released! Freedom again!
Everything is like a dream!
China in the absence of prince milk,
At this time, Li Tuchun had nothing!
End
Please indicate the source of the original article and reprint
We're done with the story of The Prince's Milk!
The next business case story we talk about a familiar company: Tencent