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

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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—invested and established by Dehong Hongtian Industrial (Group) Co., Ltd. and registered with the Dehong Administration for Industry and Commerce. The company holds businesses in coffee and rubber cultivation, processing, sales, and import-export operations, with a registered capital of 329.4118 million yuan. As of the end of 2012, the company's 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 operates nine subsidiaries (branches) including Mangshi, Yingjiang, Kunming, Lincang, Longchuan, and 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, key enterprise in Yunnan's listing cultivation project, and Yunnan innovative enterprise.

To further establish Hougu Company as an internationally first-class professional coffee enterprise and achieve the 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 achieve the company's 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 an increase of 5 billion yuan in farmers' net income.

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

(3) Implement brand strategy to achieve the goal of breaking through 100 billion yuan in domestic coffee sales.

Implementation and Innovation

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

While responding to calls from Party committees and governments at all levels, the company fully leverages the role and advantages of a leading enterprise, actively advancing the work of helping farmers increase income and prosper in deeper, broader, and more distant fields. It has established agricultural industry associations in coffee-growing villages to guide and assist farmers in developing rural economies. Simultaneously, the company 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, expanding the scope of benefits for rural households. It also actively builds a national coffee brand, elevating the coffee enterprise to greater, higher, and stronger horizons.

Agricultural Industrialization Development Models

Over the years, with strong support from Party committees, governments, and various departments at all levels, the company has summarized and adhered to two major agricultural industrialization development models in its coffee industry development journey:

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

Second, the development model of industry nurturing agriculture: Actively introducing advanced domestic and international technologies, vertically extending the coffee industry chain, and building a modern coffee production system integrating cultivation, processing, and sales with diversified development to maximize the value of the coffee industry chain, while continuing to promote the expansion and development of the coffee industry.

Quality Certifications and Brand Recognition

Hougu Coffee Company has obtained ISO9001-2002 quality and management system certification, HACCP certification (Food Safety Management System Certification), QS certification (Food Production License Certification), 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.

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