Transformation And Innovation, Seeking Wenzhou Listed Companies To Survive In Adversity

Beijing's Olympic cable equipment project, xingle group, which is worth about 180 million yuan (RMB, next to about 36 million yuan), is a family business like Wenzhou's big and small businesses.

However, after six or seven years ago, the company changed its new manager Yu Wen pin to usher in a new style of work. Its management rights and ownership fell on the two batches of different hands: the professional manager employed brought technology and new thinking, and was responsible for daily operation and management. Wages were the return of their ability; major problems were still decided by Directors' decisions or at shareholders' meetings, and the return of shareholders was the dividend of the company.

In other words, the shareholders of the company can be ordinary employees, and their executives are salaried people.

However, there is no problem in doing so. Yu Wen pin (38 years old) said that shareholders were aware of their actions by restricting their superiors by power, making management lack of "clean strength".

In order to make corporate governance more standardized (especially regulating shareholders' behavior), the Group Chairman and president is actively preparing for the listing of the company.

In his office in Liushi, the electrical capital of Wenzhou, Yu Wen pin said with earnestness: "there are many potential risks in irregularities, and non-standard companies go bankrupt faster."

In the early 90s of last century, Yu Wen pin's father Yu Jie joined three brothers to invest in building cables.

Yu Yijie thought wishfully that he would be able to speak as an elder brother.

To his surprise, there were serious disagreements within the enterprise within a few years.

In 1995, the cable factory was divided into two parts. Yu Yi Jie and one of his brothers went to Liushi to rebuild the xingle cable company. After a few years, the two brothers were in conflict again.

The two separation made Yu Yi Jie suddenly realize that he was not able to run an enterprise according to the economic laws, even if he was a brother, it would be very difficult for long-term cooperation.

Yu Wen pin clearly understood the reason. He pointed out that xingle sales last year reached 7 billion 100 million, but the rapid development brought about new problems.

"We are from small businesses, a good employee is not necessarily a good manager, we must make a large internal adjustment."

More than 10 employees have left since taking office. Yu Wen pin is not shy about this.

"Today, the company has left a senior executive. He has a high degree of technology, but he loves to play the role of power, and he is too poor to communicate with his colleagues and subordinates.

Employees can choose enterprises, and companies have the right to choose employees. I dare say: employees can enjoy three years' hardship with the company, and they will enjoy 30 years of happiness.

In view of his lack of talents, he is unwilling to rush to seek listing abroad, and he hopes to attract advanced and excellent talents through listing and achieve brand benefit.

"To be listed, the company has to undergo a large-scale review and audit to enhance credibility.

Moreover, through stock trading, the company can get a lot of publicity from the analysis of the rise and fall of the stock, and it is the promotion of the brand.

The last goal of the listing is financing. "

Enthusiasm for listing

In recent years, Chinese and foreign media have reported that many Wenzhou enterprises, which focus on foreign trade, are in a predicament for various reasons, including rising prices of raw materials and labor, reduced export tax rebates and RMB appreciation.

Zhou Dewen, President of Wenzhou SME Promotion Association, said that about 20% of the enterprises were in stoppage or semi stoppage.

For example, last year, there were more than 3000 fasteners (hardware) industries in Wenzhou, and only more than 1900 remained in this year's statistics, and at least 20% of the small and medium enterprises in the garment industry were in a stoppage or semi stoppage.

In addition, the Wenzhou shoe leather industry association report shows that in recent months, there are more than 70 shoe factories in Wenzhou.

Nevertheless, Yu Wen pin should not be afraid of having the same environment as his colleagues. He also points out that more problems can be solved through more analysis and research and joint efforts with relevant government departments.

In 2006, in the face of two or three times the rise in international copper prices, xingle group developed a copper clad aluminum cable, which produced at least half of its copper consumption and reduced its cost by two to 30%.

Zhou Dewen told this newspaper that listing and innovation are the two ways to reverse the evil trend of Wenzhou enterprises.

He said: "in fact, Wenzhou enterprises are making various attempts, including listing, so Wenzhou people are very cold on the stock market. Wenzhou people do not speculate in stocks.

In the past few years, few private enterprises in Wenzhou have been listed, and now four private enterprises are listed, including overseas listing or domestic backdoor listing.

He explained that Wenzhou people have been engaged in manufacturing, and they like to do things that are visible and touching.

"For example, buying a house, no matter how the housing market changes, the key is very comfortable in its pocket, but the stock market is just a piece of paper."

However, in the face of national macroeconomic regulation and control, coupled with the awareness that listing can get a lot of capital from the capital market, it can make the industry bigger and stronger and introduce new technologies. The enthusiasm of Wenzhou listed companies is soaring.

Zhou Dewen disclosed that 10 Wenzhou enterprises are going to be listed at home and abroad this year. Two of them will be listed on the Singapore stock market.

In the next four or five years, there will be 50 companies ready to go public, and 200 enterprises will be on the market in the next 10 years.

He believes that Wenzhou and Singapore are "tiny places" (Wenzhou's land area is 17 thousand square kilometers), and land resources are also very scarce, and more cooperation can be carried out.

He said: "I think Singapore has much to learn from Wenzhou, one of which is that Singapore has developed many enclaves", that is, not to put manufacturing in Singapore, but to cooperate with Suzhou and other places with technology and capital.

This idea is worth learning from Wenzhou.

He hoped that Singapore's capital and advanced technology could be grafted with private enterprises in Wenzhou: "now the stock market in Singapore may not be very large. If we can aim at the Wenzhou market, it is also very good, because it is very difficult for Wenzhou to have so many enterprises listed in China. So far, more than 200 SME boards have been queuing up in the China Securities Regulatory Commission.

He said: "many people say that Wenzhou's hair is hollow, because he pays great attention to changes in the external environment, capture some business opportunities for making money, and get the chance to catch it in time."

There is a way out.

Due to the lack of land resources, the smart Wenzhou people are moving faster and faster.

Zhou Dewen pointed out that Wenzhou's industrial land per mu is between 500 thousand yuan and 2 million yuan. Even if the land of Suzhou Industrial Park, which is in the rush for business, is "as long as hundreds of thousands of yuan per mu", this situation is very unfavorable to the development of Wenzhou's private enterprises, which leads many enterprises to go abroad.

According to the official statistics of Wenzhou, he said, 500 thousand people were abroad, and he estimated that 800 thousand people were doing business or running a factory abroad.

"Out of Wenzhou, to some places where resources are relatively concentrated, strategic positions are relatively high, or where labor resources are cheaper, or less developed areas, it is a way for enterprises to go abroad."

For example, some enterprises in Wenzhou set up factories outside the labor force that are lower than China, including Vietnam and Kampuchea in Southeast Asia and India, and industrial parks in Russia, where the land is cheap.

There have been media reports that many Wenzhou businessmen are walking to the Middle East.

In this regard, Zhou Dewen believes that in places such as Saudi Arabia to set up factories and restrictions too much, manufacturing enterprises in Wenzhou do not have the advantage.

In addition, some enterprises have to move to the western part of China based on their inability to upgrade their industries, drawing on their abundant and low labor resources.

Some of the easily polluting and labor-intensive industries have also been pferred to internal areas, such as the leather industry has been pferred to Shandong, Chongqing and Sichuan also have Wenzhou shoes capital.

However, Zhou Dewen did not forget to emphasize that the industries that migrate to the inner areas will shift the pollution problem to other places through more advanced technologies.

Had to go to "enclave" production.

The expensive land has made many Wenzhou enterprises have to go to the "enclave" production in Zhou Dewen's mouth, and the Wenzhou Wenzhou children's products Co., Ltd., which was only put into operation the year before last, is one of them.

Chen Songru, general manager of the company, said that at present, the production of baby products, children's clothing, toys and gifts are all carried out around Shanghai, such as Kunshan.

He said that the company also produced in Zhongshan, Guangzhou, but in August last year, when the product quality was poor, the product recovered and lost hundreds of thousands of dollars, it decided not to cooperate with Guangzhou manufacturers.

Chen Songru, 42, had done a lot of business. At first, he failed to work and worked in Denmark, where he got a patent for making Andersen's children's products.

He said that the current "virtual operation" not only attracted the management of chain store sales partners, but also for high-quality manufacturers to open the door of cooperation.

Chen Songru described this cooperation mode as the embodiment of the spirit of Wenzhou's "embracing" spirit.

It is well known that Wenzhou people do business as a group. As long as there is profit, "Wen Shang" always appears in that place. But the original active resource sharing is regarded as speculation by many people.

"Made in Wenzhou" is the epitome of "made in China".

Zhou Dewen said that the state invested less in Wenzhou (from 1949 to 1980, only invested 650 million yuan), and the traffic conditions in Wenzhou were very poor. However, China was a large agricultural country, and land was the most basic element of survival. Wenzhou people who had no land had to start their own businesses.

It is understood that this small town in Zhejiang Province has produced 1 of China's clothing, 2 of shoes, 60% of shavers, 65% of locks, 80% of glasses, 90% of metal casing lighters and 9 of watercolor pens. Its low-voltage electrical appliances, hardware products, automobile and motorcycle accessories play an important role in China. Therefore, it is said that the rise of Wenzhou is a microcosm of China's manufacturing development.

Although Wenzhou is also facing difficulties in manufacturing in other parts of China, Zhou Dewen still feels that its situation is far less than that of Dongguan in the Pearl River Delta.

"The private enterprises in Dongguan are more extroverted, and Wenzhou is a native land. Because it is wild, the vitality is relatively strong.

Second, most of the private enterprises in Wenzhou are their own capital. They will not watch their money flow into the water, let it collapse, just like their own children, and die to save him.

Many of Dongguan are Sino foreign joint ventures. Joint ventures do not see the right momentum. Just like the Korean enterprises withdrew, they went to Vietnam to invest in Indonesia and even to India for joint ventures.

Zhou Dewen also believes that the mechanism of private enterprises in Wenzhou is relatively flexible, that is, "boats are small and good to turn around". But he still hopes that Chinese governments at all levels can attach importance to the problems faced by Wenzhou enterprises and make some policy adjustments to help a small boat against wind and waves and risks.