East Hope Group chairman Liu Yongxing Dialogue enterprise development ; document.write
in industrial development, East Hope Group chairman Liu Yongxing the Sichuan man is a synthesis of radical and conservative. After entering the heavy
, East Hope appeared to be very aggressive, often leaps and bounds, suddenly invested cement manufacturing, suddenly and investment in the oil industry, while in other places into the aluminum industry, industry span the large, industrial chain long raspberry; the same time, new entrants into the industry, East Hope is the first investment of their own funds, do not rely on loans ranging from listing, and therefore it was extremely conservative.
step in the radical and conservative Jumping, Liu Yongxing and his leadership of the enterprise, such as static depth of flow, and gradually establish their own private enterprises in China in the leadership. In the 2010
after in this metaphysical concept, is his insistence and execution. How he turned from the feed industry, heavy industry? He is how the monopoly of state-owned capital in heavy industry out of a whole industry chain and downstream? In this low-key enterprise, which established a unique management style and leadership style? Entrepreneurs in the hearts of the slightly mysterious, but also how to look at wealth, entrepreneurial spirit?
in Pudong East Hope Plaza, 15 floor, he sat in front of our reporter, these explain.
dream of heavy and chemical industries
Heavy industry and your fortune is not high feed industry association ah.
Liu Yongxing: In 1992, I visited with his brother Mr Liu in the United States for a month. We looked at Pittsburgh, where the United States after World War II has been the steel capital, but this time, most steel companies here in the evacuation. I first heard of the I thought, 10 years later these industries should be shifted to China, then I should also have the opportunity to enter these sectors. At this point, we are the first investment in the domestic construction only a few hundred million feed mill, there is no capital to do the heavy chemical industry. But this conceals the ideal.
Hope Group developed to a certain extent,UGG boots cheap, our brothers the idea began to diverge and brother never made to do high-tech, and I want to be heavy industry. So we parted in 1995. Choose a different industry is the main reason for the separation.
Liu Yongxing: feed companies, the most competitive opponent is a private enterprise. We have to build 100 plants by 2000. Separation in 1995, I quickly established their own patches in more than 70 feed mills. This led to sharp increase in demand for the company for lysine, but this time, most lysine monopoly by foreign companies. To solve the problem of long-term development feed industry, it must be able to produce their own.
However, if only for the annual output of 20 million tons of lysine factory support, thermal power plants can not be achieved economies of scale, so to build a large thermal power plants, but much of the power plant, the production of electricity is not way out. So we want to build a few hundred million tons of tons of steel or aluminum consume excess power, so both of aluminum and steel.
Liu Yongxing: heavy industry is capital intensive and technology-intensive industries. At that time, I feed business through the Group of 20 billion in capital accumulation. I have always been cautious, decided to use up the 20 billion in a heavy chemical industry in the fight. I thought well, if heavy industry is not successful, we must launch a war in the feed industry, to snatch the market. However, if the smooth entry into heavy industry, the feed industry can not grow too fast.
But this time, steel mill project in the last minute, I quit. This time out, or because of my disagreement with partners not met I feel steel, it is recommended to use their own capital entirely, not loans, built in the year 300 million tons of steel mills with an annual output, and then Scroll build the second phase. This cautious approach has not been endorsed by partners, so we chose to become a unique lysine thermal aluminum road.
whole industry chain
Liu Yongxing: In 2002, East Hope Baotou plans to build an annual output of 100 million tons of electrolytic aluminum factory, I continued to persist in using its own funds, the first is not a loan, the plant built in four phases. Alumina is the raw material for electrolytic aluminum, but aluminum is very scarce at that time, East Hope signed with foreign suppliers contract only through the brokers get a quota.
So, we plan to enter the aluminum industry. This is also forced out.
need to invest 200 billion alumina project, due to huge investment, this time with my family, company employees can be made on whether the project skeptical. At this point, I also considered the public financing, but at the time of the policy, only the main listing feed industry, in order to feed business to raise capital to invest in heavy industry, are illegal. Therefore, this road was blocked.
the meantime, talk about a number of international investment companies, and international investors for my idea is very appreciated, but more worried about the risks and ability, although the intention of signing the investment agreement, but finally gave up. I only do this their own way. It now appears,UGGs, this time forced to
Liu Yongxing: East Hope Group in Chongqing,UGG bailey button, a few very successful industry, gained trust in government. Cement industry in Chongqing, the process of integration, the local government to find me, I hope the East want to intervene.
our analysis that it is necessary to expand the industrial scale, to obtain economies of scale, and second, to cement companies can be built to the river shipping. I suggested to do to do 10 million tons, the plant should be built on the shore to pass Wandun Lun, this plant is not confined to the domestic market and raw materials but close to mine. According to the above principles, June 20, 2009, in Chongqing Fengdu 1,000 tons of cement investment and construction projects, the East once again want to extend heavy chemical industrial chain.
Liu Yongxing: 2008, East Hope's electrolytic aluminum and alumina project has become the scale, efficiency is not bad. We want to continue to expand aluminum, alumina production capacity, but so they could not get approval. Capital must find other way out.
At this point, the Chongqing municipal government of Chongqing asked if I would enter the PTA (PTA) project.
I thought 10 days, 10 days, I have intensive access to information, consult experts. I found, PTA is one of the oil industry of the two titles, China is one of the major importing countries in Asia in recent years, domestic self-sufficiency rate of PTA is always hovering at 6,070 percent. The petrochemical project in Chongqing in 2007 is also the development of national planning new construction west of the 10 key projects.
10 days later, I decided to enter the PTA industry. My reason is, this is a petrochemical industry, but also the textile industry, which will help the East wish to extend the industrial chain, and that this project is a national support, a full set of approvals to get the highest level of approval of a large-scale projects, this has been my dream.
a layman to challenge the technology-intensive projects, the difficulty is obvious. But we are not going back. State departments on the requirements of this project is the localization rate of 75%, while the East the hope of eventually reaching 90%, host all domestic. Oriental Holdings now want to invest in this project has been put into operation, annual output of 600,000 tons PTA, running well.
muddle broke into the petrochemical industry, I was suddenly discovered that the high profit margins in this industry, in the current market conditions the profit of the project nearly billion per month.
awe of nature to Evergreen
To achieve this goal, the most important thing is what?
Liu Yongxing: I am an atheist, but the fear of nature. I think as long as we do this can be achieved.
Liu Yongxing: still awe of nature. This is the highest law of respect for the laws of Nature.
the formation of comparative advantage. What events prompted you to have this perception? Today you can still continue to adhere to this principle?
Liu Yongxing: Because we are a latecomer, it is often the second. We asked companies not to do the most, but most must be done, especially in China, such an environment. Currently, the domestic feed industry, the new hope for the first, second East Hope; but the profitability of the first East Hope. East Hope's alumina industry, the scale is not the first, not even the third, fourth, but the efficiency may be the first. If the one-sided emphasis on the first scale may be too many enemies, and do not necessarily rational.
We never brought into the world top 500, we think, do business, it was very natural. Therefore, our values, there is a saying that goes, Of course, if the basis of the stronger, so the scale of the first, there is no good.
Why?
Liu Yongxing: whether external financing is based on enterprise development. In fact, the first day I wanted to start a bank loan of 1,000 yuan, but has not been approved. Then I figured out, when the policy does not allow to private loans, a self-employed can not obtain a bank trust.
to raise funds by listing the development of feed industry is difficult to have the core competitiveness. Do not feed the development of business loans. 3 year factory money, you can create a new plant. 100 plants a year can earn 30 new plants. Therefore, companies need only feed the market.
Currently, the East want the benefits of the heavy chemical industry is also very good, but if the industry to do more, for example, if we are doing in the international investment in a 500 billion or 100 billion investment in the domestic distribution of industrial chain, the company would not rule out the listing.
Liu Yongxing: At present, the positioning of East Hope is to do Industrial. New hope for the broader industry, finance, real estate, investment has,Bailey UGG boots, I feel even based on industry-based, emphasis on investment in investment companies. More and more obvious differences between the two. Yong-good type of entrepreneur and social activist, more suitable for investment; and I was industrial entrepreneurs.
In recent years focus is on what?
Liu Yongxing: concrete work before, and now broader, but the most important task is to learn. I read half the time each day, mainly to understand the political and economic developments at home and abroad, but not into the political circle. Why should I dare to heavy industry? Because I believe that China's reform and opening up the political structure conducive to enterprise development.
I like to think and learn economic theory, but regardless of genre, but a combination to analyze the development of enterprises, with their theories prove his ideas are correct. Great Books I rarely see, never on the MBA. (Zhang, general manager of Wheels of East Hope chipped in: Liu Dong of China Agricultural University MBA tutor). I subscribe to a large number of journals and magazines. I do not study the system, but according to the needs of the.
Especially in the corporate strategy and management?
Liu Yongxing: We entered into an industry, first of all self-taught, and then consult a consulting firm, but we must take the initiative to do the time. Enterprises should have a deep understanding of the consulting firms, consulting companies can help you not make a big mistake, but it is difficult to help you superior to excellent only on their own.
We did not invite consulting firms to help us to manage. Enterprise management to simplify the management of the East want is very simple, all philosophy is a card, the three principles, 155 words. According to this concept there is a do not, will fail, sooner or later only.
What role the major?
Liu Yongxing: In East Hope, leadership is the development of standards, including the inside of the industry standard, the standard operationalization of the company; staff is the implementation of standards, of course, employees are not mechanically implemented, although the standard leading the development, but allow research standards, to encourage employees to create new standards, once created, the employee can become cadres training targets. We require all managers to be implemented in standard management, the standard cycle on.
Why believe your own mistakes?
Liu Yongxing: (laughs) I often make mistakes, I am impatient personality, often criticizing the wrong person to give an apology. For example, we invested in a food company in Chengdu, Chengdu became the first meat brand. So we thought that this simple model can also be copied to the success of Shenyang. But we did not resolve this in Shenyang FMCG investment, and ultimately turned off, the loss of 1000 million. Another year, we more often than capital accumulation, please make a financial investment company, the results of a loss of 50 million yuan.
Fortunately, these losses are relatively small. Do you want to allow some small businesses fail. However, in leaps and bounds, he must be cautious. Therefore, we move into the idea of the heavy chemical industry in 10 years, began preparations for another 6 years of accumulated capital, dare to actually enter. Can not make a big mistake to do business, otherwise it will be put to death.
I carefully studied the ) The request to take the precautionary principle, fed and not go hunting, rabbit hunting if uncontrolled, will eventually lead to their demise.
can be seen from this case, the radical gene (to eat the rabbit) and the conservative gene (not all rabbits were killed) to be together. Reflected in the business, over access to land, bank loans, excessive over-investment is obtained on the nature, violated the
Do you think the current business environment and the current ratio is a better or worse?
Liu Yongxing: the entrepreneurial environment is now better than in the past I do not know how many. When I start the recruitment of employees are illegal, only four brothers and myself, and later allowed to move eight workers, but few people want to move more when they are no policy support, dedicated to the county government had asked the county government risked certain degree of risk was approved. Now a large state efforts to support entrepreneurship.
private enterprise is also true, the reality is not always reasonable, there is a gradual process of reform, will understand more from the overall point of view. Such as the East Hope, in some industrial policy of resistance encountered, we diversify, looking for a breakthrough in the field, rather than to complain.
complain about is the worst behavior, and evil compared to complain about can be described as the second. Complaint is that the biggest obstacle to the growth of talents one. Eastern hopes to promote not complain. Company can not be absolutely fair, but as long as the overall fairness like.
Liu Yongxing: advice can not be said, in which the conditions are different for each person. Entrepreneurs can not be too impatient, do not overestimate the capacity now, and do not be too low estimate their own through the efforts of three, five, ten years later the capacity, the key is now to survive, taking into account the development, but easier.
This selection before you know it? How do you see the 35 billion yuan of net worth?
Liu Yongxing: 35000000000 or how many assets are not important to do business must have a certain amount of assets, but a little less of assets, on my own life, had no effect. In our view, enhance the platform through our taxes to the state, to the staff welfare and the promotion of social development is the most important. We will train ordinary workers to become the industry leader, the leader, which requires a lot of assets, which is in the creation of greater social wealth. If the possession of many assets, but not the profits, then that is criminal, is a waste.
How will you use of personal wealth?
Liu Yongxing: wealth is a necessary tool for social development, with the wealth, we can promote employee growth, social progress, so the wealth is a platform and tools.
wealth from the society, should be giving back to society, to be able to maximize the use of nature, and promote social development.
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