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Yili Group:

Creating a Sample of "Two Mountains Economy" for Desertification Control

Author: reporter Zhang Yuxin Source: China Financial and Economic News Published: 2019-08-15

Under the influence of the concept of "green water, green mountains and golden mountains and silver mountains", China's ecological and environmental protection industry is quietly undergoing changes. A new development model of ecological and environmental protection industries has attracted more and more attention from the capital market. Industrial Service Model (hereinafter referred to as the "Kubuki Model"). "

The core of the "Kubuch Model" lies in "political promotion of the party committee and government, large-scale industrialization of enterprises for desertification control, social and peasant and herdsmen marketization participation, continuous innovation of technology and mechanisms, and sharing of development results across the society." This is a brand new PPP model.

Private enterprises increase the layout of ecological and environmental protection

Since the 18th National Congress of the Communist Party of China, private enterprises have been actively participating in ecological environmental protection governance in a variety of modes. According to the data of the national PPP center platform, in the waste treatment and sewage treatment fields where the market was developed earlier and cash flow returns were stable, the participation rate of private capital has reached 82%.

In recent years, more successful models of social capital participation have emerged in the field of desertification control, and the most representative of them is Kubuqi desertification control.

The Kubuqi Desert is the seventh largest desert in China and was once called the "Sea of Death" and the "Source of Poverty." According to satellite monitoring published by the United States NASA, in the past 20 years, China has contributed nearly a quarter of the green area to the earth, and Kubuqi has contributed nearly 1 ‰ to the greening of the earth. According to the Kubuqi Ecological Wealth Report released by the United Nations in September 2017, Kubuqi's desertification and greening area is more than 9 million mu, creating more than 500 billion yuan in ecological wealth. In September 2017, the Ministry of Environmental Protection named the first batch of 46 national-level ecological civilization construction demonstration cities and counties; in December 2018, it renamed 13 theoretical and innovative bases of “green water, green mountains and golden mountains and silver mountains”. The "Eric Kubuchi Ecological Demonstration Zone" located in the Kubuqi Desert has become the country's only "two mountains" theoretical, practical and innovative base implemented by private enterprises.

The main body that completed such a huge project is a private enterprise named Yili Group. Since 1988, Elion has been controlling sand in Kubuchi for more than 30 years, and created the industrial Kubuqi model of desertification. It has transformed the desert from the "wind and sand, the birds are overwhelming, and the poor are surrounded by the poor." The green mountains are always there, the green water is long, and the air is always new. "

Introduce PPP mode to control desert

"Speaking of Kubuqi's reference to the environmental protection industry in the eco-economic model, it is innovating a business model that balances desertification, ecology, economy, and people's livelihoods and drives sustainable development; it innovates government policy support, corporate commercialization investment, agriculture A 'PPP +' cooperation mechanism with herdsmen participating in marketization; constructing a desert ecological industry chain interlocking with sand prevention and control, ecological restoration, land remediation, and desert ecological industry development; realizing investment returns, products with markets, and farmers There is income, the government has taxation, and the ecological environment is guaranteed for sustainable development. "Wang Wenbiao, leader of Yikubuqi Sand Control and Chairman of Yili Group, frankly stated in an interview that it is Kubuqi who actively introduced the PPP model to control sand. One of the keys to the success of the model.

Using the PPP model to combat desertification, that is, to take full advantage of the government's advantages in terms of policies and combine the advantages of enterprises in terms of funds and technology to achieve the purpose of efficient restoration of the ecosystem. Of course, it is still difficult to implement such a large desert oasis project only with the cooperation between the government and enterprises. In the past 30 years of sand control and ecological restoration, without the international ecological restoration experience to learn from, the Yili Group has continuously tried and explored innovative business models, and created a special cooperation model. The partnership between enterprises, farmers and herdsmen and international institutions has formed an ecological restoration Kubuqi “PPP +” model, which guarantees the successful implementation of large-scale ecological restoration projects and creates huge economic wealth. This mode of cooperation has achieved a win-win situation for ecological protection, livelihood protection and economic development in the region.

In addition to cooperation model innovation, Yili Group has gradually explored the business model of "ecology + business", reaching a virtuous cycle of "sand control-eating sand-control"; forming ecological restoration, ecological animal husbandry, and ecological health "Eco-economy" industrial network based on eco-tourism, eco-light energy, and eco-industry; it has realized the coordinated development of ecology, people's livelihood and economy, and explored a sustainable and reproducible "Kubuki model".

Many experts admit that after visiting Kubuqi, 30 years ago, Kubuqi desert had no grass, and was eroded by wind and sand. Now, this "Sea of Death" has attracted tourists from all corners with a magical new look. Huang Chengcheng's sand turned into Huang Cancan's "gold", which is the best example of government and social capital using the PPP model to turn sand into gold.

Market-oriented Sand Control Concept

From July 27th to 28th, the 7th Kubuqi International Desert Forum was successfully held. During the forum, Wang Wenbiao introduced the "Kubuki Model." "In popular terms, it is to realize the value-added of agricultural land, industrial land, and urban land through large-scale ecological restoration, and to introduce green industries including clean energy environmental protection industry, cultural tourism industry, ecological wellness industry, and agricultural and pastoral experience industry to achieve multiple Eco-industry benefits. This is also the blueprint and hematopoietic model of 'eco-industrial services.' We profit in the process of ecological restoration, profit in land appreciation, and profit in the introduction and operation of green industries. "

First of all, Yili carried out large-scale, systematic, and scientific ecological restoration of sandy areas, and obtained short-term project benefits.

Secondly, the national forestry department has issued a policy of “who grows and who has”. Yili has obtained long-term land use rights in the process of ecological restoration, and the restored land has realized value-added.

In the end, Yili introduced green industries such as ecological cultural tourism, ecological health, ecological agriculture and animal husbandry, ecological photovoltaic, and ecological industry into the sandy area after the restoration to obtain long-term sustainable income.

At present, Kubuqi's most representative source of profit is the two major circular economic parks. Elion gradually introduced state-owned, private and foreign-owned enterprises such as Shenhua, Huayi, Wanda, Oceanwide, Chint, Air France and other companies in the sand area after the restoration, and jointly built the Kubuqi Desert Ecological Industrial Park and the Dalat Energy Cycle. Economic parks have achieved long-term "blood production." Checking the financial reports of Yili Jeneng in the past ten years found that the revenue of the two parks was less than 1.6 billion yuan a decade ago, and by 2018 the revenue was nearly 8.8 billion yuan. The park revenue has become an important source of profit for listed companies. In addition, the green industry is undergoing diversified development, and non-listed companies including Yili Greenland Technology ’s Mongolian medicine and licorice tablets have entered a variety of national pharmacies such as Tongrentang. On the land restored by the desert, the green industry was introduced according to local conditions, and Yili Group embarked on a new path of sustainable development.

Reproducible future

In addition to the Kubuqi desertification control, the Kubuchi Model, which uses the “three-tier cake” as the main profit model, is gradually moving from the desert to the city. At present, the Yili Group's ecological industry services range from assisting Beijing-Zhangjiakou Shendong Olympics to serving the country's first batch of “Landscape, Forest, and Lake” trials in the Qilian Mountains of Qinghai, from the major scientific and technological research on planting trees at an altitude of 4,600 meters to the treatment and construction of saline areas in Tianjin Binhai New Area New comprehensive experience ecological parks, etc., provide solutions for the integrated development of ecological restoration and green ecological industries in many places across the country.

In Zhangjiakou, Hebei, Yili conducts overall greening and landscape construction of waste mines. Based on ecological restoration, it will be built into a charming landscape corridor. This must-go road to the Winter Olympic venues, the Beijing-Zhangjiang Olympic Corridor, has been built by Yili into an "ecological +" photovoltaic project that integrates ecological restoration, ecological landscape, and clean energy.

In the Sino-Singapore Eco-City of Tianjin Binhai New Area, the local land is added to land for real estate, commerce, tourism, and tourism through ecological restoration and greening, and it is equipped with green industries such as ecological habitats and ecological parks.

At present, Yili Group is trying to promote this model globally. Wang Wenbiao said that currently there are more than 36 million square kilometers of desertified land worldwide, covering a quarter of the global land area, and more than one billion people in more than 60 countries along the “Belt and Road” have been suffering from sandstorms for a long time. Yili Group has planned to send a team of experts to conduct on-site inspections in countries along the “Belt and Road” to gradually promote ecological governance cooperation as a technology service provider.

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