"What are you afraid of when a wolf comes? You will be killed and eat meat! What are you afraid of when a crisis comes? If you have the opportunity, seize the opportunity to develop!"
Article: Sino-foreign Management Xin Guoqi
Source: Excerpted from "From 0 to the Fortune 500 in the World - The Growth Revelation of Jingye Group" (exclusively decrypted, 280,000 words in the book)
Since 2004, Jingye Group has entered a period of rapid development.
In order to increase the added value of the product, Jingye Group began to build a rolled steel rod wire production line in 2004. It has developed to date with eight continuous rolled bar production lines and one high-line production line. It is a global large-scale rebar production base.
In 2005, in order to continue to expand the types of steel and enhance product competitiveness, Jingye Group invested 1.4 billion yuan to build a medium-thickness plate project. The commissioning of this project is another important milestone in the development history of Jingye Group, and it has far-reaching significance for balancing steel production capacity and improving profit margins.
In 2008, with the successful start of two new blast furnaces, it marked that the steel production capacity of Jingye Group had reached 5 million tons. In the words of Li Ganpo (Chairman of Jingye Group), Jingye had become a "begotiable" at that time.
At this moment, a crisis came quietly again.
The huge impact and impact of the 2008 financial crisis is still fresh in memory. This crisis laid the groundwork as early as 2007. In April 2007, the bankruptcy of New Century Financial, the second largest subprime mortgage company in the United States exposed the risks of subprime mortgage bonds. Since August 2007, the Federal Reserve reacted, injecting liquidity into the financial system to increase market confidence, and the US stock market was also able to maintain it at a high level, and the situation did not seem very bad. However, in August 2008, the share prices of two major U.S. mortgage giants - Fanlimei and Freddie Mac plummeted, and financial institutions holding "two houses" bonds suffered large losses. The U.S. Treasury Department and the U.S. Federal Reserve System were forced to take over the "two houses" to show the government's determination to deal with the crisis.
But what followed was that the world's two top investment banks, with total assets of up to $1.5 trillion, had problems one after another. The former was forced to file for bankruptcy protection, while the latter was acquired by Bank of America . This series of sudden "changes" shocked all countries around the world by the crisis. Wall Street 's "abuse" of financial derivatives and the insufficient estimate of subprime mortgage crisis eventually resulted in bitter fruit.
The global steel industry has been severely impacted, and the domestic market is also in panic. The price decline of some steel varieties is even worse than "halving", and there is no market price, and it is in a depression.
Due to the severe shrinkage of international market demand, steel exports have dropped sharply, causing national steel inventory to soar by 10 times, which led to continued decline in steel prices and deteriorating the profit margin of the entire industry. Correspondingly, the prices of raw materials, semi-finished products and finished products in the company have all shrunk by more than half, and many companies have been overwhelmed and even stopped production.
Jingye Group's product price was also forced to fall rapidly, with the medium and thick plates falling from the original 6400 yuan/ton to 3000 yuan/ton, and the rebar fell from 6000 yuan/ton to 3200 yuan/ton. As the prices of iron ore and iron powder have fallen all the way, the inventory of 600,000 tons of iron powder in Jingye Group shrank by 600,000 yuan in the blink of an eye.
The crisis is coming again without realizing it. How will Jingye Group deal with it this time?
Grey moment: Multiple crises hit all sides
"After the financial crisis in 2008, domestic enterprises' perceptions were generally half a beat slow."Recalling the stage when the sky seemed a bit dark, Li Huiming, general manager of Jingye Group, said, "At that time, I was in charge of purchasing iron ore. The regular price was US$160 per ton. Suddenly one day, a sales boss of the three major iron ore exporters called me and said that there was a ship of iron ore that had friends who couldn't get it. Can you answer it? I said if the price is right, you can consider it. As a result, the other party quoted US$120 per ton, and the price dropped by 1/3. We were quite happy at that time and said we had never bought such cheap iron ore. Soon the price of iron ore plummeted, and at the lowest point it fell to US$50 per ton. "
In fact, the dominoes in the crisis at that time had already turned from Europe and the United States to China. However, Chinese companies had not experienced the economic cycle at that time, and their sense of smell of the crisis was not sensitive enough.
" After October 2008, I felt that the steel market was a bit weak. A vice sales manager of Jingye received almost ten customers every day, all of whom were asking for payment for the goods. "Li Huiming recalled.
The "payment" mentioned by Li Huiming actually has an extremely complex background.
Previously, the extremely prosperous real estate market, the strong demand for production and sales, mechanical equipment and home appliances, all supported the great development of China's steel industry. Especially after 2000, China's steel industry was developing more and more rapidly. From 2001 to 2008, the average annual growth rate of steel production reached 20%, and its proportion of global steel production increased from 17 .8% increased to 38.2%. In 2007, China's crude steel production ranked first in the world, even higher than the total of seven countries including Japan, the United States, and Russia, which ranked second to eighth. In 2008, although the country had previously introduced relevant industrial regulation policies, China's crude steel production capacity still climbed to an annual output of 660 million tons.
statistics show that in the past 30 years, China's steel consumption has grown simultaneously with the total amount of GDP, and has been significantly driven by investment. During this period, steel Iron trade became a profitable business. In the 1990s, a ton of steel could even make thousands of yuan. In the later stage, the profit of per ton of steel was stable at hundreds of yuan. However, steel trade requires a lot of financial support, and a business often requires several times the funding support of the goods before it can be successfully completed. Therefore, banks played a very critical role. At that time, banks and steel traders also gradually explored a set of seemingly mutually beneficial and win-win lending methods, which were called "redemption". Steel traders used this to greatly amplify the leverage of funds and pry open up a larger market. At the heyday of steel trade, this practice quickly became popular.
When the steel market is improving, whoever has the goods has the right to speak and pricing power. In order to lock in the source of goods in Jingye Group, many steel dealers need to pay in full before they can get the order. Therefore, at that time, Jingye Group often had a one-month prepayment for steel sales, about 2 billion yuan. Jingye Group also used this funds reasonably to increase the steel production capacity to 5 million tons.
" In 2005, Jingye rolled out rebar, which was almost entirely sold by traders. Sign a contract, make advance payment, and pick up the goods. The trader's payment for goods can be used for at least 15 days, greatly alleviating financial pressure. As the steel market continued to rise at that time, traders would make profits as long as they could get the goods, and these traders became one of the richest groups in China. This model has been used until the arrival of the 2008 financial crisis. "Li Ganpo recalled.
Indeed, after the financial crisis, the steel market was instantly paralyzed. On the contrary, the more goods in his hands, the greater the losses. Dealers who knew it later rushed forward and took away the payment for the goods that existed in Jingye Group. In less than half a month, they took out a total of more than one billion yuan - following the trend. Then rumors spread everywhere, amplifying the panic. The behavior of steel dealers was like adding fuel to the flames of the crisis. However, this was impossible for them, and there were no way to know how many banks were chasing debts behind them.
"I remember one day, nine customers from the south surrounded me in the office and asked us to give a solution. I felt that I couldn't make it, otherwise the loss would be too great. I did the work one by one, and later I did some compensation appropriately, and they slowly understood it." Li Huiming recalled the scene at that time and said. The funds suddenly "circuit breaks", and delivery has become a problem. "After the financial crisis, the biggest problem is that delivery becomes extremely difficult, and the price of steel is halved. It was originally 10,000 tons of goods, but in the end it had to deliver 20,000 tons, so the delivery pressure is very high."
This is just the beginning of a nightmare, and what is even more terrifying is that the bank's "blood draw and loan cut off". In order to protect themselves and reduce risks, more and more banks have joined the ranks of withdrawing loans and limiting loans for the steel industry, from steel traders to steel mills to mining companies, credit has been shrinking across the board.
At the same time, banks all over the world were worried that the money they had loaned to the company would not be collected back, and they asked to repay the loan in advance. A bank in Shijiazhuang took out 500 million yuan of loans from Jingye Group, making Jingye's capital chain worse. At the same time, the bank is preparing to go public as a whole, hoping to take the opportunity to reduce the burden so that the "reports" can be beautiful, and privately reported some benign loans as bad loans, including several loans from Jingye, which caused Jingye Group to be on the blacklist of the China Banking Regulatory Commission. Because it was a malicious operation in private, Jingye was of course unaware of it. It was not until he found that every bank "stayed away" from them that he felt something was wrong. Only by tracing the root cause of this matter can we know that Jingye Group has been on the blacklist of the financial system. Banks that "hold umbrellas on sunny days and collect umbrellas on rainy days" are merciless in the face of crisis and are never ruthless. Their "one-slash-break" loan withdrawal and interruption has become the last straw that crushes many companies. Jingye Group has always attached importance to credibility, and has never owed bank interest or extended loan repayment. At that time, the bank's malicious practices pushed Jingye Group to the edge of the cliff.
Some banks also played the usual trick of cheating, telling the company to repay the loan first, and then promised to issue more loans. As a result, the company paid back the loan in advance, and the banks that value credit the most will never mention the promises they made.
Jingye Group was "scamd" at that time. A bank promised to double the loan to Jingye from 50 million to 100 million, and urged him to go through the procedures as soon as possible. Because the two sides had a good cooperation, Jingye Group didn't think much about it. After completing the procedures, it returned the loan of 50 million, waiting for an additional loan of 100 million. The result is very good, 100 million is gone, and 50 million is also a muddy bull.
You should know that due to the financial crisis, Jingye Group had to pay a price of 100 million in order to repay the 50 million yuan in order to make sure it was creditworthy, which was equivalent to paying a price of 100 million.
"Without any preparation, this can really kill the company." In fact, Li Ganpo has always been disgusted with the bank's approach. He once said, "Banks make interest in the company when the market is good, and if the market is bad, they will desperately withdraw loans to protect their own interests. Many companies' bankruptcy is related to bank loan withdrawals, at least 60% of enterprises are connected. You can survive by transfusion. In fact, when companies are in trouble, banks should support them to overcome difficulties together, and should give them enough time to 'ventilate' and 'refresh'. After all, only when companies develop well can banks earn interest, which is to support the real economy. "
Therefore, Li Ganpo always maintains a certain distance between capital, both rationally making use of it and never being swayed by capital. After the 2008 financial crisis, Li Ganpo learned about the "reservoir" theory of Japanese companies. Since then, Jingye Group's capital operations have basically met this theory and are very stable.
Inamori Kazuo When he was young, he admired Konosuke Matsushita for a long time. Once he made a special trip to participate in the entrepreneur forum with Mr. Panasonic as a guest. At that time, many Japanese entrepreneurs came to see Mr. Panasonic's style and seek the business Bible.One of the most concerned issues for everyone at that time was how to do a good job in the company. Mr. Panasonic said that it was necessary to build a "reservoir" for the company, and that water could be guaranteed to be drunk no matter how the weather changed. The participants asked how to build a reservoir for the enterprise. Mr. Panasonic replied that he didn't know how to build it, but he just knew that he must build a "reservoir". Everyone was very disappointed with this answer, which was equivalent to saying nothing, but it was this answer, like a lightning bolt in the darkness that struck Kazuo Inamori.
In fact, corporate emergency funds, namely internal savings, are "reservoirs", which has always been a rule that outstanding Japanese companies adhere to. One of the important reasons why Japanese companies can continue to suffer from crises for thousands of years is that they have sufficient emergency funds for themselves and do not blindly expand their scale. During the crisis, some unsustainable companies will make loans from banks and other places to make ends meet, while excellent companies will withdraw internal retention funds accumulated in the profit period, thus saving the company from going bankrupt. In Japan, those truly powerful companies can basically hold 5 times the funds of all employees' salaries per year. With such an internal retention fund, even if sales are zero during the long crisis, the company can still protect the lives of its employees and continue to pay full salaries.
"We are almost the same now. The internal savings can reach 5 times the salary of employees. You must be stable in your business and not have high leverage or high debt." Li Ganpo told the author.
This is a steady approach after experiencing the ups and downs. In that gray moment in 2008, customers were drawing payments for goods and banks were drawing loans. The double pressure was heavily on Jingye Group. Businesses are most afraid of "blood loss". The situation at that time was equivalent to bleeding from the major artery and blood was still being drawn on the other end. The critical situation is conceivable.
At that time, Jingye Group's capital chain had been broken and the steel market was surrounded by enemies. Jingye had previously asked not to stockpile too much production raw materials, but they were unable to purchase production raw materials at that time, the material yard was empty and the blast furnace was in a semi-stop state.
"The purchasing staff look for relationships everywhere to pay the debt to buy coke and iron powder. In addition to going out to urge goods, the salesperson is waiting for life-saving raw materials to arrive at the material yard. When a truck of coke comes, the salesperson will hug the driver and cry! 'I have completed the task, and the blast furnace can finally stop production!' This is an excitement cry, a cry of gratitude. Thank God, the blast furnace did not stop production." Li Ganpo described the situation at that time. Every day he got up, the first thing he did was to open the curtains and see if several blast furnaces of Jingye Group were still smoking.
"At that time, the electricity bill was owed 100 million yuan." Kang Xueyuan recalled that the Electric Power Bureau, which had a happy cooperation in the past, could pay the electricity bill for several months before the financial crisis, but after the crisis came, people sent people to ask for the electricity bill for 100 million yuan every day, and said toughly that if they didn't give it, they would be powered off.
At that time, Jingye Group's working capital was really "calculated by day". "As a last resort, I also went to the relevant leaders of Pingshan County . After explaining the situation to the leaders, the county finance gave us an emergency subsidy of 50 million yuan, which is equivalent to replenishing working capital for two days." Li Huiming said.
In extreme panic, some dealers were worried that Jingye Group could not afford to pay back the money, and threatened that they would kidnap the salesperson's son if they did not pay it back, threatening Jingye by any means.
At that time, Li Ganpo's daughter happened to resign from the company to accompany her child to study in Singapore. The rumors were based on this and turned into negative discussions such as "the dedicated boss fled abroad with the money, and his daughter went to the front station first" and "Li Ganpo was so scared that he hid away by the person who asked for the account". The matter was even reported by a tabloid, which had a very bad impact. Jingye Group will not last long, and the rumors that Jingye Building will collapse will rise higher and higher.
Rumors are like sprinkling salt on the wound, aggravating the deterioration of the situation. More customers who don’t know the truth are flocking to us. Some are talking about compensation, some are owed money, and some are even more unreasonable.The pressure from all sides makes the production and operation of Jingye Group unsustainable. Jingye is like a dangerous building in the storm, and it seems that everything has become unsolvable...
Three tricks to solve internal and external troubles
"You can't continue like this, you must deal with it decisively! Faced with a panic situation, you must face it with your sword." Li Ganpo thought to himself, and he immediately convened all senior management meetings. The entire executive team has gone through 18 years of hardship and is full of confidence in overcoming difficulties. But after analyzing the seriousness of the problem, Li Ganpo pointed out: Dedication must be alive, not only to live, but also to develop!
"At that time, Jingye had already had a steel production capacity of 5 million tons, and the scale was already quite large. If such a large 'behemoth' was 'side down', it would be more difficult to get up again. So what we said should make him 'hold up' and not 'side down'. I always feel that market changes are not terrible. The weight of our constant response to changes is: always do better than others, and we can survive in the market." Li Ganpo told the author.
Li Ganpo realized at the time that this economic crisis is different from the Asian financial crisis in 1997. It has three outstanding characteristics: First, it has great harm. The collapse of the US economy has caused great harm to the world's economy. Second, it takes a long time. Domestic steel is closely related to the international market. Only when the world economy recovers can the steel market improve, so we must be prepared for a protracted war. Third, wide range. This crisis involves the whole world, not only the steel industry, but also all walks of life.
At the same time, Li Ganpo made some analysis and among his domestic peers, Jingye Group has the advantage of overcoming the crisis than any other company. For example, large steel enterprises with a steel scale of more than 5 million tons generally use the "protocol price" to import iron ore, that is, they are less affected by the fluctuations in price - according to the rules, this protocol price must be used for a long time. Affected by the crisis, the price of imported iron ore is far lower than the "protocol price". In addition, Jingye Group is closest to Shanxi and has more advantages in coke transportation. In the past, companies that focused on overseas markets can only sell domestically, and their advantages will disappear immediately. Therefore, whether it is raw materials or transportation, Jingye Group has convenient conditions than other companies, and the crisis is not scary at all.
After careful consideration, Li Ganpo felt that he had to start from three aspects in order to break through the dilemma at that time: first, solve the employee confidence problem; second, solve the customer trust problem; third, fundamentally solve the funding problem. "I must first give employees a firm confidence, first handle the internal work, and then do external work to break those rumors." Li Ganpo told the author.
First trick: unite employees and inspire fighting spirit
Since the fruitful results of "working hard for 1998", dedicated employees are no longer afraid of the crisis, but this crisis is even more aggressive, requiring high fighting spirit and unified thinking.
Li Ganpo feels that as the saying goes, "Those who are on the same level of desire win", all employees must be in a consistent pace and work together to create a higher acceleration in order to sail against the current. If you directly adopt the method of holding a conference, it will obviously only bring pressure and cannot stimulate motivation. Therefore, Li Ganpo had a sudden idea and decided to use a literary and artistic performance activity with all members to enhance morale, and named it the "Anti-Crisis and Maintain Dedication" literary and artistic performance.
"A variety of programs are performed one after another to convey positive energy. I also went up to play a set of self-taught Wudang Tai Chi Sword . First, it proved that I was still there, I didn't run away, and I was not sick. Second, it proved that I was still strong, even though I was sixty years old, I could still dance the sword. Finally, I looked back at the video and found that no move was right, but the effect of boosting confidence was achieved." Li Ganpo said with a smile that he gave the sword in his hand a name, which was called "Anti-Crisis Sword".
Li Huiming also led the sales team to perform a chorus. His heroic movements and loud singing filled the employees' inner world. After preheating
, the meeting will be held.On October 9, 2008, Jingye Group held a "Mobilization Conference on Anti-Crisis and Ensuring Jingye and Everyone Makes Contributions". Li Ganpo asked all employees to unify their thinking and actions to ensure that they work hard and safely survive the economic crisis.
"The crisis is coming, what should we do? There are two attitudes, one is a negative attitude, the company is closed and shut down production in full swing. This is not advisable, everyone still needs to have a meal, and the company still needs to develop. The second is a positive attitude, finding a way out. Raw material prices must continue to decline, products need to find varieties that make money or lose less money, and production process research continues to reduce costs. We must find good opportunities and find ways out in the crisis. The more chaotic the market, the more opportunities there are. We must ensure survival and development in the economic crisis. Production restrictions are also a positive attitude. Those who know the times are the heroes, and we must constantly adjust ourselves as market changes." Li Ganpo said at the time.
At this meeting, Jingye Group came up with specific measures to deal with the crisis: "1. Appropriately adjust production to ensure the best profits; 2. Sales must make breakthroughs to promote product orders with large profits or less loss of money. Although the market is sluggish and product prices continue to fall, there are still varieties that have profits or less loss of money. Increase the commission ratio of sales staff, encourage employees to find varieties with large profits and do everything possible. Make breakthroughs; 3. The procurement department should take the greatest measures to reduce prices and widely find low-priced goods; 4. All production lines actively cooperate with production restrictions, adjust varieties, and continue to reduce costs; 5. All departments should actively take measures to reduce costs and increase efficiency - advocate that everyone contribute to the enterprise to reduce costs."
At the same time, Li Ganpo asked every department and every employee to take anti-crisis measures and take action immediately. "The economic crisis is not terrible. As long as we have firm confidence, work together and respond actively, we will be able to survive the crisis safely. We firmly believe that even if only one of the steel industry survives, we must be dedicated!" Li Ganpo said confidently.
Chairman of Jingye Group Li Ganpo
Seeing that the previous art performance was effective, Li Ganpo raised the "standard" again and again proposed to hold the "anti-crisis, prosper and develop" art performance - not only to "protect" but also to "promote", but also to develop. "After the two activities, the group worked together and their morale was greatly boosted. Everyone believed that the difficulties encountered by Jingye were not terrible, and as long as they worked together, they would definitely overcome them. Thinking that we, the old Jianghu, have overcome difficulties in the first 18 years, everyone is in a clear mind."
But what is imminent is that Jingye Group's production raw materials "have eaten the first meal but not the next meal" every day, and are often on the verge of suspension of production. Faced with the problem of funding shortage, some cadres suggested not to receive wages for three months and use wages as working capital to purchase raw materials. Then, all dedicated staff responded. Li Ganpo was very moved after hearing this, and then the executive meeting decided: It is not enough not to receive a salary, and the daily expenses of employees still need to be guaranteed. So dedicated employees proposed to only receive 30% of their salary per month as living expenses, and the remaining 70% remain in the group to purchase raw materials. In this way, Jingye Group has increased 50 million yuan in raw material procurement funds every month.
Even so, the "shortness" caused by the breakdown of funds still did not recover. Jingye employees spontaneously raised 55 million yuan, and Jingye Group's production can finally operate normally - "They will always be the cutest people." Li Ganpo said so many years later.
On November 8, 2008, Jingye Group held another mobilization meeting, and the theme has changed from "anti-crisis protection and professionalism" to "anti-crisis promotion and professionalism".
It can be clearly felt that compared with the "mobilization meeting" a month ago, the dedicated tactic has changed from "setting up a bus" in the football penalty area to a defensive counterattack that pursues speed and surprises.
"The world's economic crisis roared like the sea under a typhoon, sweeping everyone in. Some were swept away by huge waves, while others became trendsetters, taking advantage of the momentum to swim to the other side."Li Ganpo vividly said, "When the flood roars, you should instinctively see how big the flood is and where it comes from; when typhoon attacks, you should immediately observe how strong the wind is and what direction it is, and then escape immediately, and then find a way to prevent it. This global economic crisis triggered by US subprime mortgage crisis is the worst economic crisis in 80 years since 1929. It is even more powerful than floods and hurricanes than typhoons. "
Because Jingye Group has seen where the floods and typhoons come from and how large are there, they have already made confidence and have developed a scientific response. "In view of the current harsh market situation, based on the various advantages of Jingye, we have formulated new measures to "anti-crisis and proactive professionalism" that suit our characteristics, that is, to increase market development, high output and low cost, and carry out this "anti-crisis and proactive professionalism" campaign with an extremely full spirit and an invincible situation. "Li Ganpo said at the time.
In fact, the medium-sized Jingye Group at that time did have the advantage of large enterprises not having it and small enterprises were amazed.
Compared with large enterprises, Jingye Group's advantage is that they all use low-priced imported ores, with a cost of about 200 yuan per ton; compared with small enterprises, Jingye Group has excellent equipment, and also has the most advanced rebar production line in China and the higher-level medium-board production line in the country. Small enterprises naturally lack the ability to resist risks, have high costs, few varieties, small room for maneuver, and have poor tolerance.
"Compared with large and small steel enterprises, we have obvious advantages, so what are we waiting for? Only by increasing market development and using high output and low cost to "anti-crisis and work hard" is the best choice. "Li Ganpo said. Obviously, in just one month, the situation has changed significantly, and the production restrictions mentioned in "maintaining professionalism" have become a thing of the past.
The thinking logic behind Li Ganpo's change of strategy is: "Producing 100,000 tons of steel per month is the same as producing 300,000 tons of steel. The market is so huge. It doesn't care about the more productive things in the industry, but what it cares about is that the cost of professionalism must be done lower than others. Starting at full capacity to achieve the highest output is the main measure to reduce costs, and at the same time, reducing various consumption in high yields. ”
In my opinion, the core part of Jingye Group responding to the crisis at that time was to strive to ensure production, which was to maintain its own hematopoietic ability until the qi and blood were unblocked. How did
increase market development? Li Ganpo mentioned five key points at the time: First, the market is not good at the moment, but there must be demand. As long as there is demand, you must use Jingye. Second, China has a large region and a large difference. There are always some places that are slightly better, so we need to broaden our thinking, expand our region, and find the market. Third, the market will only develop towards stability and good. The United States rescues the market and EU rescues the market. China has introduced many new policies to expand domestic demand for , and the market will definitely get better. Fourth, the current cruel market situation is a good opportunity for business personnel to make contributions. If the market is not good, it depends on business personnel to develop, and each salesperson must achieve results. Fifth, set a sales strategy and improve the sales system. The sales layout must be reasonable, and the variety development positioning must be reasonable.
Faced with the huge fluctuation of the raw material market, Jingye Group adopted a strategy of extensive inquiry and low-priced procurement. At the same time, it purchased and used it now, and absolutely did not suppress the inventory of raw materials to accelerate capital turnover.
Lu Zengyuan, who was responsible for procurement at the time, also negotiated with many suppliers, striving to delay payment of goods while ensuring supply. "The three main materials at that time were iron powder, coal, and coke, and they did their work one by one. Finally, it is basically to delay payment for one month, first use the raw materials for the previous month, and then pay for the next month, using the time difference to delay the pace. "Lu Zengyuan recalled. Most suppliers of
are still optimistic about the development prospects of Jingye Group, so they are confident and support Jingye Group's payment method. Jingye Group is equivalent to formulating a gear centered on ensuring production, and "joining" the gears upstream and downstream of in the industry chain to it until they can operate well.
Liu Junchuan, general manager of Gaopin Steel Company of Jingye Group, said, "At that time, it was to ensure production. The raw materials might be a little tight, but basically it still ensured continuous supply, and the production system did not worry about this problem. Chairman Li was under great pressure, but he did not pass the pressure on the production line, and everyone was still working hard." It can be said that Jingye Group was investing all its limited funds in production to ensure that production was not "stopped".
In Lu Zengyuan's view, Jingye Group made full use of the turnover gap of the entire market at that time, integrated all resources and used them to alleviate the pressure of cash flow and squeeze out a cash flow surplus. "It's not just between dedicated and customers, but customers also have to discuss with their customers and arrange production funds, which is equivalent to making the invisible turnover rhythm in the market. They are all used by me. They all revolve around dedicated production, make the time difference, and ensure dedicated production capacity."
"What are you afraid of when a wolf comes? You'll eat meat when you kill him! What are you afraid of when a crisis comes? If you have opportunities, seize the opportunity to develop!" At the end of the mobilization meeting, Li Ganpo said humorously, and at the same time he concluded: "Directory people have experienced many battles and have experienced difficulties that no company has ever experienced. From a white day Jingye Group, which started with 8.5 billion assets, has created Jingye Group. The current crisis and difficulties are common, and are the difficulties that everyone has. What are the fears of? Not only are they not afraid, they must respond actively and find opportunities to develop. After the crisis, it will only be a result. Jingye Group has developed greatly, and Jingye Group is stronger and more mature! "
The second trick: gather customers and break rumors
Next, Li Ganpo chose to gather customers' strength. There is a rumor in society that "the boss can't hold on anymore, and the boss will run away." This criticism is extremely harmful and directly aggravates the tension of dealers. The helmsman has no confidence in the company. Can a company still have a future?
So, Li Ganpo decided to hold a meeting of all dealers to calm the dealers' emotions, and at the same time let them clear the fog of rumors and see clearly the real situation of Jingye Group.
According to Li Ganpo's careful arrangement, more than 200 dealers first visited the busy production scene of Jingye Group. Seeing that Jingye's production and operation order was stable, the workers were full of energy, and the dealers were all surprised. They never expected that it was rumored that Jingye Group had stopped, but in the face of the tsunami-like financial crisis, Jingye could still organize production calmly and allow itself to continue to "make blood" and save itself - you should know that many large enterprises have limited production, and many small enterprises have closed down.
Facts are better than any eloquence. After the visit, the dealers were already in a little assurance, and half of the doubts that had been accumulated in their hearts were eliminated.
Afterwards, the symposium was held, and a room full of people were crowded in the conference room of the Wild Original Resort. The then secretary of the Pingshan County Party Committee and the deputy county magistrate of Pingshan County also attended the meeting to help Jingye Group.
Li Ganpo went on stage with his ID card, looked around the venue, and said, "Please verify your integrity. Is it Li Ganpo? If it is me, I will speak again." Laughs and discussions came from the audience, and the dealer's originally nervous mood suddenly relaxed.
Next, Li Ganpo delivered a "anti-crisis speech" with a reasonable and dialectical flavor - this process is because Li Ganpo told new employees many times and is very classic, so many dedicated employees can vividly restore it.
Li Ganpo said three points first: "Some time ago, someone said I went abroad. It's no wonder that the market is not good, and there are all things to say.First, I will not go abroad. Although the market is not good, I am dedicated to my own assets. I still have nearly 10 billion yuan. Am I willing to leave behind the companies that I have started my business for many years and are even as important as my life? Second, I love the motherland and the party. I am an old party member who chose one of the hundreds of people from Zhengding Normal University in 1972. I have been a party member for 36 years. Can I give up my motherland and give up my party organization to spend my old age abroad where I can’t speak and have no relatives? Third, I started from scratch and could build an enterprise with a scale of 5 million tons of steel without any money. Can I overcome this difficulty at present? "The audience started to applause from the audience. Li Ganpo heard everyone's trust in him from the applause of the dealer, so he began to tell his thoughts: "If everyone is currently collecting the payment for the goods, his dedication will inevitably collapse. He will die before he can finish the payment. What should you do if the remaining payment is collected? Don't want it? Therefore, what you want now is small money and throwing away big money. If everyone helps, don’t pay for anyone’s payment, and the company will produce as usual. Since the financial crisis is a crisis, it is not the norm. It will pass soon. Everyone will still operate and make money. When the market improves, Jingye will definitely return the principal and interest. "
Immediately afterwards, Li Ganpo said in a tempting manner: "Please think deeply. Does China need steel in the next step? China's per capita steel production is far lower than that of advanced countries' 50-100 tons. The central government has introduced many policies to rescue the market, and the steel market will improve soon, and everyone will have money to make money soon! ”
At the same time, Li Ganpo also revealed the next plan of Jingye Group: "The worse the market, the more development it needs. We have firm confidence and insist that development is the hard truth, and we must achieve a scale of 10 million tons. We are preparing two rebar production lines. After it is put into production, the rebar will reach 3.6 million tons, and two 50,000 kilowatts of gas power generation projects will be launched. The overall market demand is very large, and as long as we are a little better than others, there will be no problem. "
After hearing what Li Ganpo said, the dealers' confusion, doubts, confusion, worry and annoyance disappeared, and Li Ganpo's personal charm and courage to do things also deeply infected them. Therefore, almost all dealers chose to temporarily suspend withdrawal of payments, move forward side by side with Jingye Group, share joys and sorrows, understand and trust each other until they overcome difficulties.
works together, and it breaks the gold. This friendship is like a timely rain, moistening things in silence, extinguishing the flames, eliminating the barriers, and allowing Jingye Group to The relationship between dealers is more united than before.
3tml1third trick: keep bonds to extend, stabilize leverage
Employees are united, customers are united, Li Ganpo still needs to do the work of connecting to the bank - this is the top priority. No matter how energetic a person is, if he is hypoxia and ischemia, it will be useless.
Jingye Group The difficulties and future plans of the enterprises at that time were reported to the relevant departments of the Shijiazhuang Municipal Government, which attracted the high attention of the leaders in charge.
On December 8, 2008, Li Jinlu, then executive vice mayor of Shijiazhuang, held a special meeting in the municipal government to convene relevant departments to solve the difficulties encountered in the development of key enterprises, and clearly pointed out that in the current financial crisis, no bank is allowed to withdraw loans from enterprises, and should support them as much as possible.
Subsequently, Leaders of Shijiazhuang Municipal Financial Office and heads of major banks gathered at Jingye Group for a discussion. Seeing that Jingye Group was orderly performing in the crisis, banks felt that production had not stopped, so they had the ability to make money, and then there would be cash flow, and they expressed that they would continue to support Jingye's development. With the support of governments and financial departments at all levels, the phenomenon of loan withdrawal has been alleviated, and Jingye Group finally had a chance to "take a breath" in the crisis.
Although local banks have reduced the withdrawal of loans to enterprises, most of the loans of Jingye Group are still in other places.Because private enterprises have difficulty in obtaining loans, Jingye Group's loans are available from all over the world. Except for three or four banks in Shijiazhuang, the others are urban commercial banks scattered throughout the country.
In fact, Jingye Group is very smart in dealing with the bank's loan withdrawal. When the financial crisis broke out in 2008, Jingye's loan amount had reached 14 billion yuan, involving more than 20 banks. Equipment such as steel and ironmaking and some equity had been mortgaged. The debt-to-asset ratio was no longer low. If you were not careful, you might ignite the risk.
At a critical moment, Lu Zengyuan, vice chairman of Jingye Group, who is in charge of the financial sector, stood up and said to Li Ganpo: "I will solve the money, and I will have me in the bank."
"At that time, everyone was a bit stalemate, disagreement, and even had many differences. I said that I should do the bank's work and let them understand the difficulties of Jingye. We will overcome difficulties together." Lu Zengyuan recalled, "Some people think that if the loan is not returned on time, it will cause lawsuits and the company's reputation will be gone. But I think this is an extraordinary period. If it is returned on time, it will be preserved, but the company will collapse, and the skin will not be preserved, and where will the hair be attached. So we still have to do work for the bank. As long as we work hard to overcome the crisis, we will repay them twice as much, so the bank will naturally consider it."
最新下载 or short-term credibility? After visiting Jingye Group by banks, Lu Zengyuan decided to go to various places to communicate with banks.
north to Shenyang and south to Shenzhen. After Lu Zengyuan ran a lap, most banks agreed to extend the loan, but accordingly, the loan interest must be increased. "We went there to talk about three aspects: one is the current dilemma, two is the various measures being taken, and three is the future repayment plan. At the beginning, several banks disagreed, and we increased the interest accordingly, which also showed our confidence. If we were reluctant, we would continue to invite them to visit Jingye to see if they were producing in a busy manner. In the end, most banks still agreed with our approach. In this way, companies have the opportunity to wait until the day the market is good, and their primary task is to survive."
Finally, there was no lawsuit between Jingye Group and the bank. Through this method of exchanging time for space, Jingye Group ensured that the capital chain did not break, and the 14 billion "leverage" finally came into being smoothly implemented.
Later, Li Ganpo commented, "Lu Zengyuan is responsible for procurement and capital operations. From 1994 to 2014, in 20 years, Jingye has basically completed the tasks in a very shortage of funds. Jingye is often short of money due to development, but Jingye has never stopped production due to lack of money."
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