Prince Milk Li Huixing Three sides of life: entrepreneurs, gamblers, sad lovers

After 15 months in detention, Prince Milk founder Li Huixing was eventually acquitted. A few days ago, Hunan province Zhuzhou Tianyuan District People's Procuratorate issued a statement, http://www.aliyun.com/zixun/aggregation/30713.html "> Public Security Organs identified Li Huixing crime facts unclear, insufficient evidence, not in line with the conditions of prosecution, decided not to prosecute the Li Huixing.

"The Li Huixing case conclusion is very bright, the process is unbearable." "Li Huixing case attorney, Hunan Heaven and earth people law firm director Shang Yuhua said. Shang Yuhua revealed that the next step will be to uphold the law Li Huixing as the Prince of milk Group shareholder's legitimate rights and interests, and seek state compensation.

From scratch to create the milk of the prince's Milk Empire, to diversify the risk of losing a huge debt, and so on because of fund-raising and other reasons for the prisons chained, development to now be characterized as innocence finally get free body, Li Huixing and the prince's milk behind, experienced too many ups and downs. It is reported that Li Huixing is currently in Beijing treatment, recuperation.

Although Li Huixing is innocent, but Prince milk this once glorious milk industry brand has become a past. Li Huixing and Prince Milk ups and downs behind the fate of China's private enterprises facing the complex operating environment, let people sigh.

Entrepreneur Li Huixing: 1 million start to create the milk industry empire

As a well-known private entrepreneur, Li Huixing's entrepreneurial process and other concurrent entrepreneurs do not have much difference. In 1990, the 30-year-old Li Huixing resigned from the state-owned enterprises, holding the only 300 yuan, boarded the south to Shenzhen train, began their own business journey; 1993, Li Huixing from the bank loans 100,000 yuan, printed a batch commemorating Mao Zedong's birthday 100 anniversary of the calendar and all high prices sold, thus, He dug up the first bucket of gold in his life. Since then, Li Huixing has been involved in a number of commercial areas, and gradually began to contact the dairy industry. The Li Huixing of the sense of smell has found great business opportunities in the dairy industry.

1996, Li Huixing with 1 million start-up funds, in Hunan Zhuzhou set up the Prince Milk Factory. Li Huixing's Prince's milk business officially started. 1997, Li Huixing made a gamble, to 88.88 million yuan to obtain the CCTV gold advertising period of consumer goods standard, the use of advertising bombing launched the national market. This gamble, let Prince Milk in the year easy to get 800 million yuan order, Prince of milk began to take off.

2002 ~2004 years, Li Huixing has invested heavily in Hunan Zhuzhou and other locations at the same time to start five lactic acid bacteria production research and development base, thus forming a national strategic layout in east and west, Prince Milk sales also doubled for 6 consecutive years. By 2007, the prince's milk sales amounted to 3 billion yuan, with Yili, Mengniu, bright and other dairy giants keep abreast. Li Huixing also reached the peak period of his career.

Gambler Li Huixing: aggressive taste of the bitter fruit to the loss of funds to be arrested

The success of the prince's milk has made Li Huixing full of self-confidence. 2005 years later, like other successful private entrepreneurs, Li Huixing began trying to diversify its strategy, entering the children's clothing market, supermarket retailing, chili sauce business and real estate business. These diversified investments, in the end, ended in failure and made the Prince Milk group face a huge funding gap.

In order to add money to the Prince's Milk business, in 2007, Li Huixing again staged gamblers, the introduction of British union, Morgan Stanley, Goldman Sachs and other venture capital of 73 million U.S. dollars, while led by Citigroup, ABN Amro and other six foreign banks jointly to the Prince of Milk group to provide 500 million yuan comprehensive credit. In order to obtain the capital injection of these foreign investment banks, Li Huixing and the three big investment banks signed a gambling agreement: in 3 years after the injection, if Prince milk group performance growth of more than 50%, can reduce the stakes of the three major investment banks, otherwise, the Chairman of the Prince of Milk Group Li Huixing will lose control.

After the investment and the capital of foreign banks, Li Huixing increased the pace of expansion in clothing, supermarkets and other diversified development at the same time, expanding the dairy production base. However, unfortunately, in 2008, the global financial crisis, foreign banks in order to protect themselves to the Prince milk reminders, and the September 11, 2008 Sanlu melamine outbreak, but also to the Chinese dairy market to bring disaster, Prince milk sales have shrunk significantly, unable to achieve growth of more than 50% of the gambling Agreement, Prince of milk into an unprecedented crisis, Li Huixing also lost the prince's milk control. Since then, the high dairy industry hosted Prince of Milk, Li Huixing was marginalized.

Before the high dairy industry trusteeship, in order to deal with the financial difficulties, from 2008 onwards, Li Huixing for the public to absorb or disguised in disguise public deposits, by December 2009, the Prince Milk Group absorbed more than 130 million public deposits, most of which did not honour. The $130 million includes raising money to dealers in the name of "loan reserve", including borrowing $50 million to 60 million yuan in the form of "usury", and the remaining millions of yuan to raise funds for employees.

It was this "fundraising" act that pushed Li Huixing to the brink.