On the afternoon of Aug. 2, 2008, members from China Entrepreneurs Club (CEC) sat around the conference room of the HQ of Mengniu Group and talked freely on the industrial heroes under the background of high-developing economy. They made summery of the winning method of excellent Chinese enterprises, the importance of the construction of corporate culture and the developing bottle neck and its solutions for the enterprises to enter the world market.

　　CEC was founded in Dec., 2006 and sponsored by 31 commercial leaders, economists and diplomats with most influential force. They are the most vital representatives for the new economy in China and also the pioneers to take on the responsibility of global corporate citizenship. As the most influential commercial leaders club, CEC aims to be one of the most successful organizations of non-profit in the world. Its current honorary members includes the top Chinese economists such as Mr. Wu Jinglian, Mr. Zhang Weiying and Mr. Zhou Qiren, Mr. Wu Jianmin, the outstanding diploma in China, Mr. Long Yongtu, the representative for China globalization and well-known commercial leaders such as Mr. Liu Chuanzhi, CEO of Lenovo, Mr. Zhang Ruimin, CEO of Haier, Mr. Ning Gaoning, Chairman of BOD of COFCO, Mr. Ma Weihua, Chairman of BOD of China Merchants Bank and Mr. Wang Shi, Chairman of BOD of Vanke etc.

　　The meeting was one part of the activity of the exchange visit to Mengniu Group by the members from CEC. As its Chairman, Mr. Niu Gensheng, Chairman of BOD of Mengniu, performed his duty of the host.

　　Various as the topics were, it was the main theme for the visitors to comment on Mengniu Group as it was the host company.

Mr. Liu Chuanzhi, BOD Chairman of Lenovo and the honored Forefather of Chinese Enterprises, took his wife to participate in all activities held by CEC here at Mengniu Dairy Group.

　　During the meeting, Mr. Liu Chunazhi commented on Mr. Niu Gensheng, “The grass won’t shoot up without seed; while a person won’t prosper without ambition. The motto ‘This is a world not for the rich, but for the ambitious’ brought forward by Mr. Niu Gensheng highly sums up the importance and the necessity of continuously improvement of the capability of cognition and ethnic consciousness. Modesty and determination are two indispensable principles for Mr. Niu Gensheng to improve himself. Mengniu has been developing with sun rising momentum from poor condition, which reminds me of the transitional history of the poverty and deserted Daqiu village. If any laxation occurs in the mind of Lenovo’s management team, I think it is necessary for them to come and learn something from Mengniu. Development of a small company depends on the ability of boss, but the improvement of a large one relies on culture construction. Chinese companies have to rely on a group of outstanding entrepreneurs to enter the global market. The success of Mengniu depends on the implementation of brilliant corporate culture and the deep research in strategy and tactics.”

　　Visitors presented applauses for the precise words put by Mr. Liu Chuanzhi. Director of China Entrepreneur Magazine took over the topic and continued to talk with fervor and assurance, “Life styles and habits may differ from region to region; and Mengniu’s employees come from different places and areas of China. However, they can unite together and put their strength to the same direction, which should be attributed to the power of corporate culture. At first glance you might consider that Mr. Niu is always boosting himself and exaggerating all what he says, however, the more you know him, the more you will find that he is telling the truth. Especially when you come to Mengniu and look around yourself, you will have a general view of his personality charm. Many people can not jump out of the strange law of Boss Determines All when his company develops. A book named Imperial Ideology, the Mother of Chinese Entrepreneurs impressed me a lot and I totally agree with many of the ideas it brought forth, for example, “I am the boss, and the rules will not take effect on me, but on my employees.” It is known that Mr. Niu is never the one among those entrepreneurs; however, he is always appealing that the boss should set up an example for his employees to obey the company regulations, which is, of course, an incentive to the staff. So if any of you lacks morale, please talk to Mr. Niu.”

　　Laughter arose here and there on the site; everyone put special comments on the feeling of this trip with perspicacious views and penetrating insights flashing out frequently.

　　Mr. Zhang Weiying, Dean of Guanghua Management Academy of Peking University, showed his manner of a real learned scholar, “Methodology is implied in the tangible world, and insight develops from the ever-changing circumstances. A person will never succeed if he only knows to follow the others; only those who’s able to foresee the opportunities and potential risks can win in the fierce competition.”

　　Mr. Niu Gensheng went on with deep feeling,” Change is the only theory in this world. I might not have time to read thousands of books in my lifetime, but it is very important for me to travel thousands of kilometers to learn and study. A person has to improve himself by learning from others to keep a clear mind and make continuous innovation on technology and products. Just as to go on a pilgrimage to the West for Buddhist scriptures, I often organize my top managers to visit some world leading companies to learn their advanced experiences. Setting the strategy is very much like shooting target, because you will shoot much higher if you target at the stars rather than at the treetop…” The plain truth put by Mr. Niu touched his audiences.

　　“Seeing is believing. This is really a worthy trip for me to witness such a company with a large scale and a fine and sophisticated management at the same time.”

　　“I have visited many world leading companies, but I’ve amazingly found that Mengniu is never inferior to those multinational corporations in certain areas.”

“I am a person who loves to find faults, however, I’m disappointed for not be able to pick any holes here! “

……

　　“After visiting the 6^th plant of Mengniu, an experienced foreign engineer appeals to those companies of developed countries in his blog with strong sense of crisis that they should pay close attention to these fast-developing Chinese enterprises. I have a deep feeling that enthusiasm forges a great future and power creates the great value! The way to success is full of hazards and unexpected hurdles, so how will the excellent Chinese enterprises take challenges both from inside and outside world?”

　　During the meeting, visitors expressed their views and contributed their advice freely and frankly. Mr. Niu Gensheng, Chairman of BOD, Mr. Yang Wenjun, CEO of the Group, and Mr. Sun Yubin, the Secretary of Party Committee attended the meeting as host, relied questions and listened to the suggestions with an open attitude and humble manner. The meeting lasted for over 3 hours though, it seems that everybody still hasn’t fully fulfilled his desire to talk.

　　Leading by the Chairman of Mengniu Group, club members have visited the 6^th plant in full automation, High-Tech Dairy Research Institution, nursery construction and green project of barren hills, Austasia International Dairy Farm named Farm UN, biogas electricity generation and sewage treatment project. They showed strong interest on the world-class equipments and technology adopted by the plants and farm and thought highly of the environmental protection methods contributed by the Group.  

　　Visitors came to the 6^th plant along the penetrated corridor. Robots were seen working delicately in the spirit of Labor Model. Production lines were running regularly and orderly. “Few people are working here in this large plant; it seems the main labors are robots.” One nodded while watching.  

　　In the High-Tech Dairy Research Institution, visitors paid a close watch and praised before leaving, “The technology, equipments and talents here are all No. 1.”

　　Knowing the welfare provided to the dairy cows in Austasia International Farm, visitors could not help admiring. There are most advanced milking equipments and technology in the world with the best forage grass transplanted from different countries; it is just right to be called the UN of Dairy Farms.

 　　“Food security is the lifeline for our enterprise. We cannot lose any attention on the supervision of both the teats of cows and the mouths of the consumers. ” Talking about the quality, Mr. Niu showed a firm face.

Stepping out of the plants and farms, the entrepreneurs indicated one after another that they would take their teams and family members here next time for an ocular experience of high-tech.  

　　In order to reach Zero Discharge, Mengniu have made 3 big projects in the aim to turn the mountain greener, rivers purer and sky bluer. In addition to the construction of modern industry, the Group also expects to build on a vigorous image of new countryside.

　　Water supply is the 1^st problem.

　　Mengniu has spent over RMB 400 million to set up sewage treatment plants all around China in all efforts to recycle the waster water. For example, the water for greening has come no longer from the tap water or underground water, but of 2^nd hand water treated from the plants. In this way, the Group saves 2,000 to 3,000 tons of water every day. In summer, the rest 2^nd hand water is used by farmers for irrigation; while in winter, when planting stops and rivers freeze, what shall they do with the rest 2^nd hand water for mountain greening? Water cannot be stored in winter, so the Group changes to store ice. So long as there is water on the mountain, it will turn green. Moreover, the Group also collects rain water with 10,000 tons saved annually by its headquarter.   

　　Biogas is the 2^nd problem.

　　If the cows’ feces are not treated, they will produce biogas, which is not only one of the greenhouse gases, but also does harm to the ozone layer.

　　Mengniu thinks highly of the reduction of CO2 discharge. One of its important projects is the electricity generation from biogas. The project turns the feces and urine produced by 10,000 cows into biogas and slurry. The reduction equivalent of its discharge of CO2 is approximately 25,000 tons every year; and its annual generation of electricity is 10 million degrees, which joins into the national power grid directly. The fertilizer made of biogas slurry can kill bacteria and the fruits fertilized by it can be eaten without peeling. After on-site inspection by UNDP, GEF and CDRC, the project has been granted the name of the Project to Fasten the Commercialization Ability of the Renewable Energy in China • Big-scaled Promotion Model Project of Biogas Electricity Generation.

　　Mengniu has set up 5 farms like this one and will establish 20 in the near future. Such farms not only play an important role to reduce CO2 discharge, but also set up a model for the farmers to realize Green Breeding. 

　　In addition, the Group has also built biogas electricity generation projects in small scale for all sewage treating plants at the production bases all around the nation. These projects have provided assistant power for the plants and realized the domestic standard of first-class discharge. 

　　Mountain is the 3rd problem.

　　The HQ of Mengniu Group was built on a desert. In order to change the plant appearance, the former employees used to plant trees every year. After 9 years of construction, the whole plant looks so lush that it seemed as embedded in green carpet.

　　However, surrounding it, there are still large areas covered by barren hills lack of water and plants. Therefore, in appeal of the government, the top managers of Mengniu Group are working on a greening project of 18,000 mu (1,200 ha.). Each of the top managers will invested on some barren hills according to his/her own ability and name the hills under his/her name for greening. The north China is very cold in winter and grows few plants, so pines and cypress are the best choices for evergreen. Currently, the nursery garden grows quite well after several months’ cultivation. Wells have been pumped by motors with pipes set specially for the purpose of irrigation; mid-treated water has been driven onto the hills from the HQ. On the top of each hill, horizontal channels have been made to collect rain water in summer for natural irrigation. Soon after, all kinds of evergreen trees in the nursery garden will be transferred on the top of each barren hill lack of water.  

　　Among these hills, there are 1,600 mu (100 ha.) arable lands in so poor condition that farmers used to harvest little through hard work. According to the official regulation of returning farmland to forest, Mengniu Group has made enough compensation to the farmers and promised that both the ownership of the land and the trees planted by the top managers will belong to the farmers.       

　　In line with these 3 events, Mengniu has implemented the idea to Save Energy and Reduce Discharge into all respects in daily life. For instance, in terms of the construction of plant buildings, all the new plants have made advantages of solar energy to the most extend and realized natural lightening, which aims to stop lighting in the workshops at daytime.

　　Biogas electricity generation, sewage treatment and recycled economy… These projects planned 5 years ago in the tireless words of Mr. Niu seem like his own kids, which touched the whole visitors on the car deeply.……

　　The current industrial zone have been covered by colorful trees and flowers though, Mr. Niu has drawn another blueprint, which is to green the surrounding barren hills within the next few years. If the condition blocks, let’s create availability!

　　Looking at the tree pits dig in standard, the nursery base in its early appearance and the pine trees in prosperous growth, the visitors expressed sincere praise.

　　On Aug. 3, the exchange visit of CEC to Mengniu Group ended in success. On departure, members expressed their willing to gather here again in the future.