Nan Cunhui: &Nbsp; From Shoemaker To Forbes Rich.

Nan Cunhui, a small shoe repair worker who has worked hard in the old city of Wenzhou, has struggled to achieve more than $100 million in assets after several struggles.

Personal profile:

Chairman of Limited by Share Ltd group

Career:

The CHINT group led by Nan Cunhui and the Hu Chengzhong group, founded by Hu Chengzhong, all started with their joint venture in July 1984. Now CHINT group has 6 major professional companies, more than 50 shareholding enterprises and more than 800 professional collaboration factories, and more than 2000 sales companies and special distributors have been set up throughout the country, 5 branches and more than 30 sales agents have been set up abroad, and the products sell well in more than 70 countries and regions in the world.

The main production and operation of high and low voltage electrical appliances, pmission and distribution equipment, instrumentation, building electrical appliances, industrial automation, automotive electrical appliances and so on more than 100 series, more than 5000 varieties, more than 20000 specifications of products.

The group's comprehensive strength has been ranked among the top 500 private enterprises in China for many years, and is the largest production and marketing enterprise in China's low-voltage electrical appliance industry.

Nan Cunhui started his business hard, aiming at the international market and building a famous brand of low-voltage electrical appliances. He was the outstanding representative of Wenzhou's two pioneering work. The CHINT group, led by him, grew rapidly from a family workshop to a large modern enterprise group, and was known as "the epitome of the Wenzhou model".

In Nan Cunhui, it not only embodies the spirit of Liushi people's self-improvement, perseverance, and courage to innovate, but also shows a bold vision and strategic thinking of a modern entrepreneur.

He summed up the spirit of CHINT as "harmony, modesty, pragmatism and innovation", and put forward the concept of "striving to create world famous brand and realizing industry to serve the country".

Extraordinary experience and achievements made Nan Cunhui a positive explorer and outstanding representative of the "new Wenzhou model" recognized by the world. He was praised as "the spokesman of China's emerging private enterprises" and was selected by "China Youth magazine" as one of the "Chinese youth figures that may affect China in the twenty-first Century".

In 2007, he donated 10 million yuan to the Zhejiang Youth Innovation and entrepreneurship fund.

Entrepreneurial history:

Shoemaker comes from

Nan Cunhui recalled, "I was 13 years old when I was junior, and 15 days before graduation. My father broke his leg because of an accident."

The doctor said that he might have to rest for one or two years, and his mother was always weak. As the eldest son, the burden of caring for his sister-in-law and raising his family was on Nan Cunhui's shoulders.

After graduating from junior high school, Nan Cunhui became a shoemaker.

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Recalling the life of the little shoemaker in the past, Nan Cunhui said, "although three years of shoe repair did not make any money, it made me understand the truth of honesty and conduct, and there is a market for quality.

At the same time, it also makes me understand that if a person wants to do something, he must pay attention to starting from trivial matters, and it is not easy to do anything trivial.

In the shoe repair time, Nan Cunhui found that many of Liushi's sales and marketing staff took a lot of low-voltage electrical appliances business throughout the country, and opened a lot of front shop and back factories.

"I found that the industry was developing very fast, making money and exercising people, so I stopped my shoes and switched to electrical appliances."

Nan Cunhui said.

"Starting with dozens of dollars and hundreds of dollars, you don't have much money.

I set up a counter with my friends and 4 partners, earned 35 yuan in the first month, and I worked until 5 o'clock in the morning every day, but I am very happy that I succeeded in the first month without losing money.

Nan Cunhui said, "do not make a windfall for a career man, but rely on hard work and sweat."

Hard start

In 1984, Nan Cunhui found that the market prospect of low voltage electrical apparatus industry was very large, but it was not enough to rely on personal strength, but it was not enough to rely on a small and facade.

At this time, his primary school classmate Hu Chengzhong found him and wanted to work together with him to run the factory. So he invested 50 thousand yuan with Hu Cheng and set up a "precision switch factory".

This refinement switch factory is the predecessor of Zheng Taihe Deli electric.

Hu Chengzhong is now the chairman of Delhi group.

"It's hard to start a factory at first because you don't know anything.

Technology is not known, quality is not known, and where the market is unknown.

No equipment, no technology, no people, no money, everything is difficult at the beginning, and it is a great headache.

Nan Cunhui recalls.

When he first started an enterprise, Nan Cunhui made a big fuss about "borrowing", asking talents and borrowing brains, and using others' equipment to produce their own products.

At that time, the technology relies on Shanghai, so Nan went to invite several engineers to guide him.

The factory is developing slowly.

Now that we have developed, why is there a CHINT and a deli?

"Some people say that private enterprises are sad but they have to go through three points, namely, payment of money, arrangement of seats, and honor or disgrace.

At first, this problem is not obvious. But when the enterprise has gained popularity, the local government, in order to encourage the development of the economy, appraise the advanced leaders and give rewards to the leaders of the enterprises, and the enterprises are run by two people. To whom is it good? "Nan Cunhui said with a smile." so at first, we came up with the way of "director rotation". I am director of the factory this year. You are a legal representative. Next year you will be the director of the factory, and I will be a legal representative.

These problems are well solved.

Until 1990, the "refined switch factory" was divided into two workshops, with a total assets of around 2 million, and output value reached about 10000000. Both sides also had relatives and friends to enter the management level. Nan Cunhui and Hu Chengzhong began to dispute occasionally on some business decision-making issues.

So they separated.

"CHINT" came out

If Nan Cunhui and Hu Chengzhong did not separate, what would it look like? Nan Cunhui smiled and said, "it's hard to say."

But in fact, despite the separation, CHINT and Delhi are still irrelevant because they are the strongest competitors in the industry.

Now, the two giants have become the most competitive private enterprises in China.

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After breaking up, Nan Cunhui set up a family business with several relatives. In 1991, he took part of the joint venture with American businessmen and established a Sino foreign joint venture. The name "CHINT" came out.

On the origin of CHINT's name, Nan Cunhui said, "in 1991, when the factory was divided up, the disorderly competition of Liushi electrical appliance enterprises was serious.

With a license, no license, good quality and poor quality, some people do not play the cards properly, and the market is in a mess. "

At this point, Nan Cunhui thought, "to be an enterprise first."

By chance, Nan Cunhui found a receipt for the purchase of equipment from Hongkong. The name of the shop is Fengtai. This "Thai" word is very good. Nan Cunhui feels that "people should be upright and act in a calm way." the two words are called CHINT.

"At that time, there was no grand ideal, but just to be a positive person and to do things right, the enterprise will be as stable as Mount Tai."

Nan Cunhui said.

After the establishment of Sino US joint venture, Nan Cunhui took 4 brothers and sisters and other relatives into CHINT to become shareholders.

The joint venture and the introduction of shareholders, Nan Cunhui and CHINT, the strategic significance is far greater than the meaning of financing.

By 1993, CHINT's annual sales revenue reached about 50000000 yuan.

Nan Cunhui realized that if CHINT wanted to continue to grow big, it had to undergo a radical pformation.

So, Nan Cun Hui took full advantage of CHINT's card and took the road of joint capital expansion.

"Sharing is actually a wise thing."

Compared with the general family business of Wenzhou bosses, Nan Cunhui's most distinctive feature is that since the day of CHINT's establishment, he has persistently pursued the shareholding system in order to "share the right to release troops".

When his shareholdings fell from 100% to less than 20%, CHINT developed more and more in his "subtraction".

In 1991, after the breakup of the "refinement switch factory" founded by friends, Nan Cunhui absorbed his family members such as his brother and brother-in-law into shares, and set up a typical family business, Wenzhou CHINT Electric Co., Ltd., and Nan Cunhui accounted for more than 60% of his personal shares.

By 1993, CHINT's annual sales revenue reached about 50000000 yuan.

Nan Cunhui, who was a pioneer, realized that if CHINT wanted to continue to expand, it had to undergo a radical pformation.

So, Nan Cun Hui took full advantage of CHINT's card and took the road of joint capital expansion.

He successively incorporated 38 local enterprises into CHINT, and set up the first enterprise group of low voltage electrical apparatus industry in February 1994.

CHINT shareholders increased to dozens at once, while Nan Cunhui's personal equity was diluted to about 40%.

However, in his exploration, he gradually discovered that a fatal weakness of family businesses is that he can not absorb and utilize outstanding talents more effectively, and talent is the first resource of enterprise development.

By 1998, after thinking of Nan Cunhui's breakthrough resistance, he resolutely decided to weaken the absolute number of shares of the South's family, carry out shareholding system pformation to the core layer of the group controlled company, that is, the main business of low-voltage electrical appliances, and bring out the core interests of the family, and carry out the equity distribution system in the group, and distribute the best capital to the best talents in the enterprise.

In this way, CHINT's shareholders increased from 10 to more than 100 now, and Nan Cunhui's shares dropped to more than 20%.

Tens of millions of "know the money" millionaires were born.

Family color is gradually weakening, and enterprises are growing. CHINT has now become a large conglomerate with assets of 3 billion yuan, annual sales exceeding 10 billion yuan, and annual tax payment of more than 500 million yuan.

In this regard, Nan Cunhui frankly said: "sharing is not generous, for entrepreneurs, sharing is a wise."

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"Burn your own pot of water."

The problem of specialization and diversification has been discussed for many years in the industry.

In this regard, Nan Cunhui always insisted: not familiar with do not; the industry span is too large, do not have the advantage; diversification is also concentric diversification.

He told reporters: "in the stage of rapid development of enterprises, there are a lot of industries to let you choose, and all the industry partners coming to the door break the threshold.

This is very easy to lead to the randomness of decision making. It's like boiling water. You boil this pot of water to 99 degrees and only 1 degrees. It opens. Suddenly, you feel that the pot of water is better. Put it on the shelf and do not burn and run over there to make a fresh start. The new pot has not been boiled yet, so the pot is cold.

Nan Cunhui always believed that a man must first burn his own pot of water.

With many private enterprises heading for diversified development, CHINT's persistence and calm are so rare.

From low voltage electrical appliances, high and low voltage electrical appliances to industrial instruments, CHINT has been making professional electrical manufacturing enterprises.

Nan Cunhui said: "the most powerful competitor in the world is selling 9 billion euros annually to CHINT, which is 10 times that of us.

CHINT has great room for development in its own field. "

Quality and integrity are the foundation of development.

Thanks to innovation and change, CHINT has entered a track of healthy development. Overall sales revenue increased to 40% this year from 1 to May. The speed is still amazing.

"CHINT myth" attracted a group of media and economists to search for mystery in CHINT.

Nan Cunhui's explanation is that the foundation of the development of enterprises is quality and integrity, which is the principle that he insists on adhering to at the beginning of his business.

Nan Cunhui's admiration for quality is admirable.

He has a famous saying: it is better to make less than 100 million yuan output value, nor to let a defective product go out of the factory.

On one occasion, when a group of goods were exported, a cargo case was damaged during the pportation, and when it was reassembled, it was found that one product was unqualified.

When Nan Cunhui heard about it, he demanded to open the box.

In order not to affect delivery, the goods are changed from sea to air.

In this case alone, the freight cost of the enterprise is 800 thousand yuan.

Close the tax list and withdraw from the rich list

When the news of Forbes's richlist came, Nan Cunhui just laughed.

Life, how to continue to continue.

For 20 years, he has been frugal all day long. He has never changed because of his ranking in the rich list, as he described himself as "an ordinary and ordinary life".

He said, "money is a worldly possessions. Why do we need more?"

The quality of life is not equal to the weight of money. There are more important things to do in the future. "

As early as ten years ago, the money he earned was enough for him to spend for a few years. The meaning of wealth has long gone beyond the needs of his personal needs. These years have driven him to continue to work in his career. He is deeply aware that through his own efforts, he can create more social wealth and help more people to be rich.

The entrepreneur's sense of social responsibility, which constantly surpasses himself and realizes the greatest value of life, is revealed in him.

"We are desperately squeezed into the tax rankings, and we are desperate to quit the rich list."

Nan Cunhui said.

In 2003, CHINT turned over to the state tax revenue of more than 500 million, of which 3 hundred million was paid in the Wenzhou area.

This figure clearly indicates Nan Cunhui's value to society.

In 2002, he turned over to 2 million 760 thousand of the state's personal income tax and became an entrepreneur's model of paying taxes according to law.

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"Doing business is like climbing a mountain. When you start doing it, you think it is very simple. When you climb higher and higher, when the enterprise is getting bigger and bigger, when you are in trouble, you will feel more and more unable to get up."

So when you get on this stage, you don't have to stop. You have to go on climbing and crossing.

Quotations from Nan Cunhui:

"Twenty years like a day, we do fine, do specialized, do well, do strong, in the face of many temptations, resist loneliness, resist temptation, this is a fundamental reason for us."

"We allow mistakes, allowing you to commit a crime, or two times, or even three times, but you are not allowed to make the same mistake."

"One must remember that in the early stage of entrepreneurship, we must learn to choose. This choice is very important. If you choose the right one, you may have different effects if you develop it."

"I feel that there are many ways to be grateful. The most important thing is to learn to set up a correct mindset. You must never raise your expectations too high. There is no limit to your desires."

"A qualified enterprise leader is first of all a valuable enterprise culture founder.

The core guarantee for an enterprise to maintain sustained development is culture. "

"To be a human being, we should always be awed.

Personal ability is limited. If I feel that I am the biggest in the world, that may be the beginning of failure.