New Hope Liu and Chairman Liu Chang: Raising pigs is the cause of people's livelihood.

He has run a fashion store, has opened a restaurant, has invested in a cafe, and founded an advertising company. However, Liu Chang, who was "raising pigs", proved that he was a qualified entrepreneur. She firmly stepped into the pig farming industry and led Xinxiu Liuhe Co., Ltd. (hereinafter referred to as Xinxin) to become a farmer and animal husbandry giant. In the previous few years of pig prices, the new hopes of pigs have risen, and the company's market value is also. It once exceeded 180 billion yuan.

But pig farming is an industry that "eat by the sky". Under the changes in the cycle, the pig farming fell into a losing mud, and the market value of the new hoped stocks was also "cut". At this time, did Liu Chang regret the decision of raising pigs at the beginning. Where will the company's pig career career go?

Recently, Liu Chang, the chairman of the new hope, accepted an exclusive interview with the reporter of the Daily Economic News at the headquarters of Chengdu. Under the black clothes, Liu Chang, as always, showed the image of a capable image. She is always gentle and polite. She responds to some sharp problems with her logic, and she is in line with her father Liu Yonghao's style.

Compared to the reporter's interview with Liu Chang in 2020, she "more calm in the company's strategy"; she talked about the performance pressure of new hope, the adjustment of management, and the adjustment of organizational structure, etc. "Being scolded", "don't think of huge profits", "let the ability return to the front line" ... The "golden sentence" between the talks shows her rational thinking about the pig industry.

Liu Chang admits that the new hope is also suffering from the trough of the pig cycle, but he has always believed that he is doing difficult and correct people's livelihoods, and believes that he can spend difficult times. The foundation of her and new hope is, "We understand the industry of agriculture and animal husbandry, and the cycle is overwhelming.

Do not use financial data for one or two years, measure corporate value

In mid -June, the pig raising giant Zhengbang Science and Technology announced that it had not been paid overdue due to the tension of mobile funds. In addition, Zhengbang Technology had a huge losses of 18.819 billion yuan in 2021, and large losses have hollowed out the company's family.

Under the decline of pig prices, Muyuan, Wen's shares, and new hopes have also fallen into a huge loss. New hopes of last year's loss is also nearly 10 billion yuan.

"The peers are miserable, and we are also torment at the trough of the cycle." Liu Chang did not say it. She said that this super pig cycle is unprecedented and full of uncertainty. New hopes, like many practitioners, are also victims of cyclical fluctuations.

In the process of turning on the loss, the stock price of the new hope also fell sharply from a high level. Investors have been arguing on when the stock price rebounds, and some will even post and scold them when they lose.

"Don't you see stocks? Do you know that some investors are scolding the company?" The reporter asked.

"The performance is not good, and you have to suffer." Liu Chang replied that he was also concerned about the trend of the stock price, but not only because of his own shareholding, "the new hope is a listed company. Many executives and backbones of equity incentives are concerned about the performance of the company. "

Although there is anxiety, Liu Chang still expresses his firm belief in his enterprise. "Whether it is chicken or pigs, or in the past, or now, it is a cyclical industry, so we cannot use one or two years of financial data to measure the value of the enterprise. The value of the company should stretch the time to see the time. After the downturn and peaks of the cycle complement each other, the company actually walked steadily, "she said.

"Because we understand this industry, we must adhere to long -termism to do agriculture." She specially emphasized. In fact, almost every time she appears, she will mention "long -termism", which is already engraved in the new hope DNA.

"Is this an excuse when the company's performance is not dazzling?" The reporter asked. "Of course not." Liu Chang's tone suddenly became serious. "In fact, the new hopes have experienced four ups and downs since the" pig cycle 'when making feed, and the poultry industry also has a cycle, which is shorter than the pig cycle. , Pressing the decision -making time more pressure ... "

As a witness who grew up with the new hope, she knows that "long -termism" is the value of the internalization of enterprises, and it is the core driving force for the new hope after 40 years.

Raising pigs must do a good job of autumn harvest and winter collection, so as to make up for the preparation

In the past two years, the pig breeding industry has blown the cold wind. When the industry can get out of the trough is the most concerned topic for investors.

"The cycle changes, coupled with the company's new strategic deployment, the losses that have been affected are staged." Liu Chang believes that agriculture is always a cause of people's livelihood. Do this industry, don't think of huge profits. In the future, the autumn harvest winter collection, make a good preparation for "replenishing with the rich".

At the same time, in her opinion, when any night road will reach dawn, the current pig price will rise steadily, and the storage column of the sow is relatively decreasing, which may be the beginning of the cycle rising. "Breeding companies must go through the darkness before dawn. Even if this cycle is particularly difficult, I still have confidence."

Liu Chang's remarks are similar to the previous statements of the new hope management.

At the shareholders meeting of 2021, Zhang Minggui, president of the new hope, said that the overall price of pigs may show the trend of "the second half of this year will be better than the first half of the year, and next year's pig price is better than this year."

The company's Director Lan Jia revealed that each pig should be able to earn about 150 yuan for each pig next year (2023). Lan Jia was still a account at the time: based on the company's pig industry 18.5 million heads, the pig farming business could achieve a profit of 2.7 billion yuan; the profit of the feed sector was superimposed. Realize net profit of more than 4 billion yuan. To this day, even if the price of pigs has risen more than 10 weeks before, the market seems controversial whether the pig cycle has been at an inflection point. The peculiar person believes that the industry's serious excess supply still exists, and the price of pigs will once again bottom out to promote a new round of production capacity. Optimists are determined that the losses for more than a year have been greatly removed from inefficient production capacity. Many farmers have no money to raise pigs and no money to make up the column.

In the interview, the pig market came out, and the stock price of pig companies soared.

Liu Chang is relatively indifferent to this: "The cycle is repeated, and the company only needs to do his job." She emphasized that no matter how the pig cycle changes, the new hope will adhere to this industry. It is not a short -term profit, but a social responsibility. "

Liu Chang said that the new hope is a people's livelihood enterprise that protects the supply; from the beginning of the entrepreneurial "pig breeding hopes to be rich, hope to help", to "benefit the farmers and benefit the food", the company has always acted as rural and cities. The axis connects the fields and dining tables, grows with farmers and consumers, synchronizes the development of the country and society, and always serves the most basic living needs of the public.

The company's cash turnover capacity is strong, and the business structure is determined

The big waves of sand, the winner is king!

After the 4 rounds of pig cycles, some companies have exited sadly, and some companies fall into the quagmire. What are the secrets of new hope for standing?

"How can there be any secret." Liu Chang believes that the new hope to have the comprehensive ability of balanced balance sheets. First of all, the company has absolute control of the profit conditions of the product, and has the core capabilities of continuously reducing costs. Enhance market risk defense. "

"For a agricultural and animal husbandry enterprise, it is critical to have enough funds to spend the winter." Liu Chang analyzed.

"Bar debt" and "pigs starved to death", because of the fund chain problem, such a scene occurred in the pig industry. In the past two years, some pig companies have tightened the capital chain due to the fast -drying period.

The pressure on the new hopes cannot be ignored. The first quarter report of this year shows that the company's short -term loan at the end of the company and the non -current liabilities expired within one year were about 23.977 billion yuan.

"Our first main business is feed, and the high -turnover feed industry has a strong ability to generate cash flow. From upstream feed, to midstream pigs and poultry breeding, and then downstream slaughter processing industrial chain integrated layout, it can also help the company Diversifying operating pressure and hedging risk. "Liu Chang said.

And the company's ability to spend winter is from the partners for many years. "Even at the most difficult time, the new hope has still gained firm support from upstream and downstream; in the combination of our historical performance, financial institutions have given new hopes to fully trust." She said.

Earlier, the new hope announced that the total credit limit for applying for the total application of financial institutions in 2022 was not more than 120 billion yuan. In March of this year, Yang Lingben, the new hope subsidiary, received a huge investment in the agricultural banking industry of the Agricultural Bank of China; at the end of June, the Agricultural Bank of China Financial had 500 million yuan in Sichuan Sichuan Sichuan Sichuan Sichuan Sichuan.

"The big shareholders' support for us is quite great, and it has given us a lot of confidence." Liu Chang said further.

In the fixed increase in 2020, Liu Yonghao's Southern Hope and New Hope Group co -invested about 4 billion yuan in new hope. In the issuance of convertible bonds implemented in November last year, the Southern Hope and New Hope Group spent about 4.518 billion yuan to participate in the subscription. At present, the new hopes are implementing a fixed increase, and the south hopes to injected 4.5 billion yuan in capital. Within two years, the new hope group may not injection of more than 13 billion yuan in new hope.

There is no hesitation in personnel adjustment.

"African swine fever has brought unprecedented blows to China's pig farming industry, and also brought unprecedented opportunities. When you see such historical opportunities, you must seize it, otherwise it will be eliminated. After pulling up, the management ability was diluted. "In August last year, Liu Chang explained the reasons for the loss of new hope to the outside world.

At the same time, Liu Chang also reflected on the previous scale. "At that time, he pursued the scale to a certain extent, but when the price of the pig fell from 40 to 20 yuan, the scale became a drag."

"We thought at the time that on the one hand, we had to stop loss, on the other hand, we had to practice internal skills and reshape corporate management capabilities." Liu Chang told reporters.

In the past few years, the new hopes of the new and annual general manager work conference have experienced "adhere to the problem -oriented to ensure mission landing", "unity and consistent persistence is victory", "clarify the industrial value chain", "build the core capabilities system to do it The theme changes of real -termism, which also reflects from the side. The company has adjusted a series of adjustments to pig raising strategy, operating orientation, management system, and organizational system.

"Practicing internal skills, focusing on operating costs and efficiency" has become the core demand for new hope operations.

"From the stage of scale expansion to a stable stage, we have stopped the purchase of pigs and sows in the exterior; through measures and other measures of the integration, the pig farm is full load." Liu Chang said that the company further binds the interests of core employees at the same time. For example, the launch of equity incentives and employee shareholding plans. On the question of personnel adjustment, her answer was not hesitant. Since the second half of 2020, represented by Zhang Minggui as the president, the management of new hope has been greatly adjusted. At the time, Liu Chang proposed: "With the new leadership team as the core, it cultivates a group of excellent youth managers. At the same time, focusing on costs, improving the management capabilities of the industry, and achieving the full control of operating decisions."

The cadre team must not only be younger, but also professional. "The average age of new hopes is 45 years old, and the average age of senior management is 40 years old. I am also one of them." Liu Chang said, "Don't look at Zhang Minggui's younger than his predecessor. In fact, he is also a veteran of the new hope. After graduating from college, I have been working in new hope, and I have been working for more than ten years. "Between the conversations, she indirectly refuted the company's statement that she would not leave the" old man ".

"We have also made a adjustment in the past two years, that is, letting people return to the front line." Liu Chang said that many employees who have done well in the past may soon become the supervisor of the production line, the director of the pig farm, and the general manager of the area. As the general manager of the district and then promotes, should "capable people" be promoted? should! But along the management sequence, it gradually stayed away from the front line of production. In addition to production management, he will undertake many administrative, finance, and infrastructure management. Now, the company emphasizes that professional people do professional things. As long as they are well raised, they should return to the front line and control the breeding.

At the end of this topic, Liu Chang told reporters that the company will make basic management more solid and detailed this year, continue to improve the efficiency indicators of all aspects, reduce the cost of breeding, and realize the recovery and improvement of production management capabilities.

Production management The entire process digitalization, realize the number of karma

Under the vigorous development of the pig farming industry, the revenue of the new hopes of listed companies has been on hundreds of billions of steps, over 120 billion yuan last year.

At the press conference of the New Hope Social Responsibility Report in June this year, Liu Chang said that when the enterprise developed to 100 billion yuan, it was necessary to rely on comprehensive digitalization to lead the longer development. And one of the focus of the layout in recent years. In fact, New Hope has planned the company's digital transformation since 2018.

Why does a agricultural and animal husbandry enterprise attach so much attention to digitalization? Many people are puzzled by this.

Liu Chang is very interested in this topic. "Digital reserves are not your simple digital technology capabilities, or simply technology and technology capabilities for any industry. The integration of technology in the same industry. We can choose the more applicable technology to bless the industry. This is the significance of new hope to advocate digital change. "

In Liu Chang's view, the digital targets of new hope are divided into three stages: the organization of digitalization, management digitization, and digitalization of breeding.

She revealed that in terms of digitalization of management, new hope has realized the feed formula, selection of pig breeding, and the independent intellectual propertyization of the two major software, established a full -chain traceability system for logistics and food safety. Digitalization, that is, "integrity in the industry".

"The most difficult is the digitalization of smart breeding." Liu Chang believes that the difference between agricultural enterprises and other Internet companies is that the objects managed by employees are livestock and poultry animals. The management of these creatures is "non -standard". "It is not a computer The production line, the steel plastic on the side, there (through the assembly line), the computer and parts come out. "

Speaking of which, she raised her hand and scratched a "production line" from left to right to analyze the reporter when the animals should feed, how much feed, and what kind of temperature, humidity, and ventilation environment. Information needs to form big data, categorized by the collection of intelligent devices, and the system judges what the situation is, transmitted to the administrator to make decisions, and then convey the information to the Internet of Things and robots to perform the next management operation. model.

"If the management of digitalization and the digitalization of breeding, it will achieve efficient management of biological assets, which is a huge progress in the industry, and it is also an important value for digital transformation to agriculture." Liu Chang is looking forward to this.

Let people who need help to help the company also be fed back

Since 2008, New Hope has launched social responsibility reports for 14 consecutive years. Even in 2021 with a loss of nearly 10 billion yuan, New Hope is still insisting on social welfare and responsibility. The recognized person praised, and those who did not recognize thought that the company was just showing a show.

The saying "Show" did not arouse Liu Chang's emotions: "For people's livelihood companies, this is the responsibility you should bear."

In Liu Chang's view, as a farm and animal husbandry food company, at different stages, social responsibility has different focus. The company's production occurs in rural areas and needs to deal with the majority of farmers and practitioners in the industrial chain. It can be more aware of the difficulty of these people.

"The agricultural and animal husbandry industry is relatively labor -intensive industries, so this industry still needs people. We especially hope to recruit more students from different programs. We also call on more graduates to pay attention to the agricultural industry. "Liu Chang said that before the rural areas, it was because the agriculture was still backward. Now more people return to the countryside, because industrialization has given the countryside a new look and new opportunity. "It can be expected that new rural people no longer appear in the image of farmers. Like the city with gold collar and blue -collar workers, there may be 'green collar' in the countryside. They will appear as professional managers with professional knowledge. The family will have a good income. "This is Liu Chang's understanding of new rural people.

She shared the story of "New Farmers" with "Daily Economic News" reporter. Some time ago, a college student came to the company to apply. The student was born in Daliangshan. When he was a child, he had no money to buy a schoolbag. He went to school with the feed bags with new hope and went out to work. Efforts to admit to Sichuan Agricultural University, and when he graduated, he chose his name on the "schoolbag" when he was a child -Lai Xin hope to be a modern pig farmer. And such young new farmers occupy a large proportion in the company.

"Let those who need help get help, and the company has also been nurtured. This is an immeasurable thing. We are happy to do such a thing." She said happily.

At the end of the interview, some people asked Liu Chang to record a message video, which will be used at the new employee training meeting in July. She read the lecture prepared in advance and chose the draft.

At the end of the message, she said to the reporter of "Daily Economic News": "Our products are animals, pigs, chicks, and ducklings. This is different from other industries, so we are not a cold industrial enterprise We have life, emotional, have been paid, and we use our efforts to give birth to this beautiful industry! "

Daily Economic News

- END -