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Controversy on Venture Capital of Hougu Coffee
On June 20 12, Hougu Coffee, the largest coffee producer in China, broke with PE investors. Hougu Coffee said that PE institutions are tempted to swallow shares and want to seize control of the company. According to PE, Xiong Xiangjin, chairman of Hougu, may abscond with money, and the listing of 20 12 is hopeless.

20 1 1 At the beginning of the year, a fund company in Beijing reached an investment agreement with Hougu Coffee. After the introduction of this equity investment company, Hongtian Group, the parent company of Hougu Coffee, is still the major shareholder, holding 59.74%. However, the contract signed by the two parties earlier stated that the loan must be approved by two (or more) directors of the new investor, and the fund directors happen to be two. This directly led to the completion of the bank's new loan credit approval, but the fund refused to sign it, which made the enterprise fall into a situation of "only repaying the loan but not repaying it", and the capital chain of Hougu Coffee was in a hurry.

The venture capital entered in March 201/kloc-0, but there was a dispute between the two sides in June 10.

Originally, I expected to push the enterprise to the capital market with the help of venture capital. Unexpectedly, the dream turned into a nightmare, and the differences between enterprises and venture capitalists continued to expand, even on the verge of the crisis of broken capital chain.

Hougu Coffee, which was originally designed to be the "first coffee stock in China", not only failed to achieve the established development strategy after introducing investors, but also failed to put in place a new round of bank loans, and Hougu Coffee, with an asset-liability ratio as high as 70%, almost went bankrupt.

For private enterprises lacking modern management system and capital operation experience, there are not a few cases of failure in introducing venture capital. The problems encountered by "Hougu Coffee" are a lesson that most private enterprises need to make up urgently in the process of transforming from production and operation to capital operation.