Ningbo Cixing Co., Ltd. mainly produces computerized flat knitting machines, seamless underwear machines, and high-speed stocking machines. Its predecessor was Taizhou Sun's Knitting Machinery Factory. The boss, Sun Zhonghua, has gone through three generations of transformation. The current boss, Sun Pingfan, although the company is very big, its management is very chaotic. It claims to be the third largest supplier of knitting equipment in the world, but it does not own most of the technologies itself. It imitates obsolete foreign technologies and basically supplies... Some small countries in Southeast Asia, and some small family workshops in China. Compared with foreign products, it is the price advantage. Every year, we receive a lot of so-called project funds from the government. But there is still no breakthrough in real technology. In the product, there has always been abnormal wear of parts, which has not been solved since the beginning of trial production.
These are all inseparable from its management. After rapid expansion from 2005 to 2008, the scale and production capacity have increased, and sales have increased. But profits don't seem to have changed, and employees' wages have been declining. This is all because the company's soft power has remained in the family-owned workshop model. Hence the emergence of the "Three Giants of Cixing": Sun, Hu and Xu. Their relatives and friends all hold real power, and using blood ties as the basis for management is the original management model of all private enterprises. However, they have already undergone the so-called joint-stock reform, but this is still the case.
There is no problem in the participation of relatives and friends in management, but blood relations override the system. As long as they are relatives and friends of the "Big Three", whether they are suppliers or internal managers, any system of the company No one will do anything to them. Even if they cannot take up their job, as long as they are related by blood, they will be entrusted with important responsibilities. And these people are not technical, but they are very jealous. The most obvious example of squeezing out others is that the technical department and initial R&D personnel of a certain branch were liquidated one after another almost after the product was mass-produced, and were forced to leave the company. The improvements in this technical department are all limited to changes in appearance and the replacement of some shoddy parts.
In addition, its debt ratio before listing was 130%, and its products were unsaleable due to the impact of the financial crisis. As a result, the production line was temporarily suspended, and significant layoffs were laid last summer. But there is no corresponding subsidy for the unemployed. Is this what a large company does? I don’t want to list too many. Through these, you can judge for yourself whether this enterprise has a future. You can go to Cixing to investigate this and ask their employees...