From 100 yuan to 38 billion yuan, what kind of wealth creation legend is behind this fission growth?
Thirty-five years ago, he used his wife's accumulated 100 yuan to set up a "two red furnaces and four hammers" ironwood processing factory, and built a "city in the countryside" on a land that did not have the conditions for the development of industrial enterprises at all, which led to the employment of 80% villagers; Today, this small factory has developed into a group company with total assets of 38 billion yuan and subsidiaries 10.
He is ambitious and has the feeling of saving the world, giving up billions of personal assets and insisting on collective ownership, just for the original ideal-"benefit society and common prosperity." A "rural city" has been built on the land where rivers and lakes intersect and traffic is blocked, which simply does not have the conditions for developing industrial enterprises.
He is romantic and practical, persistent and sensitive. He can always turn his ideas into reality, always grasp the pulse of the times, seize the opportunity of industrial change, and promote the continuous growth and progress of enterprises. With the concept of "establishing people", he led the company to walk on the road of "lasting success" and let the people live a happy life.
He has been elected as a deputy to the Fifth National People's Congress, and has always made suggestions and suggestions around the three rural issues to promote economic development and improve people's well-being.
He is Tan, chairman of Fuxing Group. From 100 yuan to 38 billion yuan, what is the legendary entrepreneurial story behind this fission growth?
"It would be great to run a business and let the villagers attend classes."
Simple entrepreneurial feelings of rural teachers
Fuxing Village, formerly known as Duanjia Village, is located in Heze Marsh in the southwest corner of shen hu zhen, Hanchuan City, Hubei Province. The traffic is blocked and there is no foundation for the development of industrial enterprises. Today, many villages here are still not out of poverty. However, Tan built Fuxing Village into a "city in the countryside". Fuxing Village was rated as "Top Ten Famous Villages with Characteristics in China", which is just as famous as Huaxi Village and Nanjie Village.
1979 began to change greatly.
That year, the spring breeze of reform and opening up blew, and Tan, who taught in the countryside, thought, "If only I could run an enterprise in my hometown, so that all the villagers could have classes and a fixed income!" Feng Youying, his wife, was aware of her husband's thoughts, so in the summer of 1980, she took out more than RMB 100 accumulated from selling small dishes to help Tan and other eight partners set up the first township enterprise in her hometown-Hubei Hanchuan Tiemu Processing Factory. This 100 yuan is almost all the registered capital of this workshop-style factory.
After all, farm tools are a regional market with limited market demand. It is difficult for enterprises to develop greatly only by producing these products. Tan has been considering finding a better project.
1One day in March, 982, several business managers of Tiemu Processing Factory went to Wuhan Wire Rope Factory to buy thick steel wire. They found that several foreign buyers bought thin steel wire instead of thick steel wire, so they followed them curiously to Nantong. There, they found the answer-the local people processed fine steel wires into wire ropes for sale, and the market demand was strong. Tan keenly seized this business opportunity and officially launched the wire rope project on 1984.
In the era of shortage economy, hand-made wire ropes sell well. However, two years later, Tan felt that it was not enough to rely solely on manual and small-scale work. It is necessary to introduce equipment and take the road of mechanized large factories. From 1985 to 1995, the enterprise doubled its output value, profits and taxes in six years, and increased by more than 50% in five years, and was upgraded to the ranks of large and medium-sized enterprises in China in one fell swoop.
If 1984 is the starting point of Tan's transformation and development, then 1996 is the turning point for Tan to realize the ideal of * * * enriching the people by "leading the village with enterprises".
This year, Fuxing Company's annual output value is close to 400 million yuan, profits and taxes are more than 80 million yuan, and employees' monthly income is more than10 million yuan. However, in Fuxing Village, which is close to enterprises, the per capita annual income of farmers is less than that of 700 yuan. Tan decided to explore the development model of "taking the village with enterprises". At that time, shen hu zhen and Fuxing Group established the Management Committee of shen hu zhen Fuxing Development Zone. Fuxing Group focuses on economic construction, urban construction and welfare employment, while shen hu zhen focuses on administrative management and social services.
Through "taking enterprises to lead villages", villagers have enjoyed the benefits of enterprise development. At the same time, Fuxing Group can also optimize the allocation of production factors such as land, capital and labor in a larger space. A few years later, the nearby Lihua Village and Chen Yuan Village were merged into the Management Committee of Fuxing Development Zone, and the development model of "one enterprise, three villages" was formally formed.
Nowadays, the location of Fuxing Group has become a "depression" to attract various factors of production, and more than 4,000 farmers nearby have moved on the spot, of which more than 3,000 are working in the company and more than 0,000 are engaged in the tertiary industry, accounting for more than 85% of the total labor force in the three villages. In 20 13 years, the annual per capita net income of farmers in Fuxing village exceeded18,000 yuan, much higher than the provincial average.
"The road is still very long and I can't get in."
Courage and responsibility to uphold collective ownership.
Enterprises, especially collective enterprises and partnership enterprises, often split or even dissolve in the process of development.
Tan also encountered this situation. After five years of operation, Tiemu Processing Factory has accumulated more than 400,000 yuan. At that time, several entrepreneurial companions proposed that each person should be divided into 10,000 yuan as a "10,000-yuan household" and the rest should be returned to the Tan couple. "Going it alone violates our original intention of starting a business and changes the development direction of the company." Tan strongly disagreed. "This enterprise is still in the stage of simple business, which can't drive a village, let alone a Shenhu commune. The road is still very long, you can't score! " Tan decided to take out the money, introduce machinery and equipment, and produce wire ropes.
It is Tan's persistence that has made today's Fuxing Group.
In 2004, enterprise restructuring surged. In June of the following year, relevant leaders solicited Tan's opinions on the reorganization of Fuxing Group. Some leaders have proposed to give Tan more than 70% of the major shareholders' equity according to the original investment of the enterprise, which is worth several billion yuan.
However, Tan has his own unique understanding of enterprise restructuring. "After many enterprises have developed to a certain scale, stakeholders have diversified interests because of equity diversification, and people are not happy. If the equity is clear to the individual, I personally benefit, but it is difficult to unify the knowledge and realize the ideal when the enterprise was first established. According to the actual situation, which ownership can promote the growth of enterprises and common prosperity will be adhered to. As far as our practice is concerned, collective ownership is conducive to the development of productive forces. "
However, under the background of economic marketization, this insistence cannot be understood by too many people, and some even accuse Fuxing of being a "red hat" enterprise, unable to contribute to economic development and seek welfare for the people.
The explanation of an expert born at the same time with Tan is quite pertinent: "For more than 30 years, Tan's insistence on collective ownership requires not only great courage, but also firm ideals and beliefs. This is the heroic complex of an era: through the development and growth of enterprises, enterprises drive the countryside, achieve common prosperity, and practice simple feelings. "
"Either don't do it or don't let go."
Enterprises should learn to "take root" like bamboo
"Either don't do it or don't let go if you want to do it." Tan has a tenacity.
This tenacity is like bamboo. It takes four years for Phyllostachys pubescens to take root, and it is only 3 cm long. But in the fifth year, it grew at a rate of 30 cm per day, and it grew to 15 m in just six weeks. "Enterprises should learn to take root like bamboo." Tan said to him:
From 1985 to 1995, Tan devoted all his energy to "rooting". He used two "accidents" and two "enhancements" to describe his work at that time, "constantly developing new products and opening up markets; Strengthen product quality and strengthen cost management. "
In terms of market positioning, Tan always insists on "high quality and low price". For this reason, the company has created management methods such as "two-way quality tracking file" and "optimal cost management method", which have been extended to the national metallurgical industry. Fuxing has become the largest metal products base in China.
Tan did not relax and began to think about "how to develop for a long time". In the next five years, Tan began to implement the three strategies of "series products, high-quality brands and high technology". By expanding the production capacity of new projects and existing projects, we will expand the variety and output of products. By integrating resources and gathering strength, we will cultivate five leading products, such as tire steel wire and wire rope, as boutique brands. According to the direction of national industrial policy and the trend of industrial change, the steel cord of automobile radial tire was developed.
The implementation of the three strategies gave Fuxing greater development momentum, and successfully listed on the Shenzhen Stock Exchange on June 0999 18, 65438, turning a new page in history.
Firmly believing in the simple truth that "the people are in poverty, they can't eat without food and clothes", from 200/kloc-0 to 2005, Tan put forward the strategy of "two major adjustments" in industrial structure and product structure, and implemented the major development decision of industrial diversification and high-tech productization: metal products were adjusted from conventional products to crown products, and industrial categories were adjusted from metal products to real estate, biopharmaceuticals and electronics industries.
Compared with the previous decision that almost no one opposed, this major strategic adjustment is not understood by many people. "At that time, the steel cord in the metal products industry, the land reserve and engineering construction in the real estate industry needed to invest more than 2 billion yuan, and our net assets were only 800 million yuan, so we could only rely on huge financing. As a result, the company's asset-liability ratio has risen sharply from zero debt ratio after listing to 70%. " Xiong Songhua, director of the Fuxing Group Office, said.
At that time, there was a dispute about whether "one industry was dominant" or "multiple industries were simultaneously developed" in China. Tan didn't avoid the controversy, and he didn't want the enterprise to take great risks because of the wrong decision, so he invited experts and scholars to discuss and demonstrate repeatedly. Later facts proved that Tan's decision was correct. After the adjustment of product structure, the profit rate of steel cord accounts for 80% of all metal products. Since 2003, the operating performance of listed companies has increased by more than 30% for three consecutive years. Metal products industry has become a national industry leader, real estate industry has become a national famous brand, and biological companies have become the top five similar enterprises in China. All industries under the Group have entered a period of rich profits and rapid development.
Now, the revival has entered the sixth stage of "innovation and development, giving priority to benefits". In order to turn Fuxing into a century-old enterprise, strengthening the construction of learning organization and corporate culture has become an important content of Tan's daily thinking.
Tan profile:
Tan is currently the chairman and party secretary of Hubei Fuxing Group Corporation, and has been elected as a deputy to the National People's Congress for four times. In more than ten years, Fuxing Group has grown from a village-run workshop to a top 500 enterprise in China, which has made great contributions to Hubei's economy and is one of the best entrepreneurs and business managers in China.
Tan, male, born in 1948, from Hanchuan, Hubei, party member, with a university education, is a senior economist and was elected as a deputy to the 8th, 9th, 10th and 11th National People's Congress. 1995 was awarded the honorary titles of "National Model Worker", "May 1st Labor Medal", "National Excellent Manager" and "National Excellent Private Entrepreneur" by the state. In 2004, he was awarded the honorary title of "Excellent Socialism with Chinese characteristics Career Builder" by Hubei Provincial People's Government. In 2004 and 2005, he was awarded "Person of the Year of Hubei Economy" for two consecutive years, and in 2006, he was awarded the Special Contribution Award of Hubei Economy. In 2007, he was awarded the title of "National Top 100 Leading Figures for Prospering Villages and Enriching the People"; In 2009, he was elected as "Hubei 100 Contributors in the 60 Years Since the Founding of New China" and was hired as "Honorary President of Hubei Charity Federation". Vice Chairman of Hubei Federation of Industry and Commerce.
As a new generation of business wizards, Tan Shaoqun, the son of Tan, as the chairman of Fuxing Fitch Real Estate Co., Ltd., has a broad vision and is rigorous and wise, leading Fuxing Fitch to give full play to its own advantages, foster strengths and avoid weaknesses, and not blindly follow the trend. Facing the changes in the real estate market at home and abroad, Tan Shaoqun vigorously promoted the diversification strategy, deepened the structural adjustment, took the initiative to meet the challenges of the market, gradually developed from a single residential product to residential and commercial real estate, and took a step of transformation from residential real estate to commercial real estate. At the same time, it has accumulated a lot in various varieties of commercial real estate and achieved good results. In just 12 years, Fuxing Fitch has steadily grown into a "leading" enterprise in Hubei real estate industry.
Tan Shaoqun is also a developer with a sense of social responsibility, and has hosted a series of large-scale public welfare activities such as "Miss Wuhan Competition" and "Cheer for the Olympics". He has donated more than 60 million yuan to Hubei Charity Federation, and was awarded as a "charitable and caring enterprise" by the provincial government. And Mr. Tan Shaoqun has always adhered to the business philosophy of "being a man first, then doing things". With such entrepreneurs, I believe that the revival of Fitch will definitely reach a new level and get better and better on the road of differentiated, themed and characteristic commercial real estate.
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