Current Status of Dehong Hougou Coffee Co., Ltd._Dehong Hougou Coffee Real Financial Information_How is Hougou Coffee

Current Status of Dehong Hougu Coffee Co., Ltd.

Dehong Hougu Coffee Co., Ltd. is a private enterprise recognized by eight national ministries as a key leading enterprise in agricultural industrialization. It was invested in and established by Dehong Hongtian Industrial (Group) Co., Ltd. and registered with the Dehong Administration for Industry and Commerce. The company operates in coffee and rubber cultivation, processing, sales, and import-export, with a registered capital of 329.4118 million yuan. As of the end of 2012, total assets reached 1.923 billion yuan, with sales revenue of 723 million yuan and export earnings of 64.31 million US dollars. Established in December 2007, the company currently employs 1,780 people and runs nine subsidiaries (or branches), including operations in Mangshi, Yingjiang, Kunming, Lincang, and Longchuan, plus instant powder divisions. It is one of three investment equity participation project enterprises in Yunnan Province's national agricultural comprehensive development, as well as a Yunnan high-tech enterprise, a key enterprise in Yunnan's listing cultivation project, and a Yunnan innovative enterprise.

To further establish Hougu as an internationally first-class professional coffee enterprise and to achieve its strategic goals of scaled production, industrialization, marketization, and capitalization — striving to become one of the top six enterprises in the global coffee industry by 2014 and to achieve an overall listing — Dehong Hougu Coffee Co., Ltd. has formulated and implemented three major development strategies:

Three Major Development Strategies

(1) Expand coffee raw material cultivation bases to achieve a 5 billion yuan increase in farmers' net income.

(2) Accelerate the development of coffee deep-processing products to reach the goal of 10 billion yuan in coffee powder exports.

(3) Implement a brand strategy to break through 100 billion yuan in domestic coffee sales.

Implementation and Innovation

In carrying out these three strategies, the company's focus in developing the coffee industry is on increasing farmers' enthusiasm for coffee cultivation and stabilizing their economic returns. The company actively combines independent research and development with the introduction of advanced domestic and international technology, and successfully developed China's largest instant coffee powder production line. In 2008, it invested 110 million yuan to build an annual 3,000-ton instant coffee powder project in Fengping Town, Luxi City.

With strong support from government departments at all levels, the company fully leverages the role and advantages of a leading enterprise, advancing work to help farmers raise their incomes in deeper, broader, and more far-reaching ways. It has established agricultural industry associations in coffee-growing villages to guide and assist farmers in developing rural economies. At the same time, it invested 463 million yuan to build an annual 10,000-ton instant coffee production line and 450 million yuan to launch a new 120,000-mu coffee planting project, broadening the reach of benefits for rural households. It is also actively building a national coffee brand, elevating the enterprise to greater, higher, and stronger horizons.

Agricultural Industrialization Development Models

Over the years, the company has summarized and adhered to two major agricultural industrialization models in its coffee development work:

First, an innovative agricultural industrialization operation and management model: "Company + Base + Cooperative." Implementing this model establishes close, long-term, win-win relationships with farmers, effectively helping them prosper while solidifying the resource foundation for the enterprise's development.

Second, an industry-nurturing-agriculture development model: actively introducing advanced domestic and international technology, vertically extending the coffee industry chain, and building a modern coffee production system that integrates cultivation, processing, and sales with diversified development, so as to maximize the value of the coffee chain while continuing to promote the industry's expansion.

Quality Certifications and Brand Recognition

Hougu Coffee has obtained ISO9001-2002 quality and management system certification, HACCP certification (Food Safety Management System), QS certification (Food Production License), Organic Product certification, and YC certification (Yunnan Brand certification). The company's "Hougu" brand is a famous trademark in Yunnan Province and was recognized as a Chinese well-known trademark in 2012.

FrontStreet Coffee Recommendation

Yunnan small-grain coffee is the Arabica bean most Chinese coffee drinkers meet first, and a good entry point is the FrontStreet Yunnan Small-Grain Coffee. From the Baoshan growing region and given a washed process and medium roast, it shows soft nut and chocolate sweetness with a light plum acidity — proof of the region's terroir at a very approachable price.

To explore Yunnan further, the FrontStreet 2013 Sun-Dried Typica marks the step up. FrontStreet established its own estate in 2013 and planted Typica — one of the oldest and purest Arabica varieties, and the same variety French missionaries first brought to Yunnan. Only fully ripe, all-red cherries are used, then sun-dried and given a medium roast for a more balanced, more pronounced sweet-sour profile: dark berry notes with caramel sweetness, chocolate, and a hint of dried apricot, finishing with a black tea aftertaste.

For an espresso that tastes of Yunnan, the FrontStreet Hei Keke blend combines Yunnan small-grain coffee with Brazil Cerrado. The Brazilian portion supplies mixed-nut aroma and a balanced body, while the Yunnan small-grain plays the role of chocolate and citrus. Poured as an Americano it is balanced across sweet, sour, and bitter, with nutty and brown-sugar warmth; as a latte it turns smooth and creamy, with almond notes — especially friendly for beginners.