Dasheng Cotton Mill: China'S First Joint-Stock Enterprise

Zhang Jianzhong was 42 years old when he was number one scholar.

Since 1868, he has been in and out of the science field more than 20 times in the past 26 years.

God may not have given Zhang Jian too much chance to be an official. Soon after his father died, Zhang Jian could only be in Shou Xiaosan.

After that, officials Zhang Jian was "put to sea".

Facts have proved that the eight strands of prose cultivate a strong scholar, and his ability of imitation and innovation is also very strong. Zhang Jian started a huge textile empire from scratch, and his annual profit was up to ten million and two silver.

Constructing the embryonic form of joint-stock enterprises

In the summer of 1895, in the tide of Westernization Movement in late Qing Dynasty, Zhang Jian pointed out that "the foundation of enriching people and strengthening our country is really work".

In December of this year, Zhang Zhidong appointed Zhang Jian "prime minister Tonghai business" and instructed Zhang Jian to organize a cotton mill in Nantong.

At that time, the western countries were busy with the first World War, leaving a huge space for the textile market.

Textile, a human resource intensive industry, is China's strong point.

Zhang Jian placed the Dasheng cotton mill at the natural gate wharf, and the Tong Yang canal passed by, only 6 kilometers away from Nantong.

Nantong, Haimen and Chongming were rich in cotton, and the surrounding farmers had a tradition of spinning and weaving.

Tang gate after more than 20 years fully reflects the wisdom of Zhang Jian's location.

In the world map issued on that year, many big cities in China were not marked, but "Tang Jia gate" was three impressively listed.

Before starting the plant, Zhang Jian wrote the statute on the factory contract, and made specific provisions on personal duties, reward and punishment measures, and profit distribution methods.

In addition to the "factory appointment", there are 25 statutes and 195 rules, which is the highest standard of the articles of association.

The success of a cotton mill is not only a matter of time, but also of institutional innovation and vision.

"If a person manages a county, he must have a vision of a province; he must have a vision of a country if he manages everything; he must have a vision of the world if he manages a state affairs."

Zhang Jian's vision is very broad. The modern term of "joint-stock enterprise" has been playing very well in Zhang Jian's hands.

When Dasheng first factory established its first year, it made a profit. When the two factory of Dasheng was in preparation, it began to raise funds through the form of raising shares, and easily received 80 or two capital stock.

"Dasheng textile Limited by Share Ltd" registered in the Ministry of Commerce, and has obtained the patent right of "twenty years in a hundred miles not to set up other factories".

In the 1920~1921 year, the big stock market is an important news that Shanghai newspapers will have every day. Big student stock is one of the most popular stocks in the market at that time.

Without conscience, I can't satisfy greed.

The real economy is most afraid of the economic crisis, Zhang Jian also encountered.

Zhang Jian's business failure stems from the cotton spinning crisis in 1922 and the factory suffered losses for many years.

Today, in the early years of the Republic of China, when there was no government support, two without financial support, and before the diversification of the venture, the capital chain of Dashan cotton mill was soon broken, forcing Zhang Jian to go abroad to borrow money.

Far from being thirsty, he did not see his business turning around until he died.

According to historical records, some of the business mistakes made by Zhang Jian are very low-level nowadays, but others are often committed by modern people.

Dasheng cotton mill has never depreciated the cost into account. It only accounts for depreciation and provident fund and enters the working capital. The enterprise has no insurance and depreciation.

In this way, the profits of enterprises will naturally increase a lot. The Dasheng cotton mill has always made full profits. Even during the period of preparation, the shares will be paid dividends every year.

This causes the corresponding provident fund, depreciation and so on.

For a long time, Dasheng plant and two plant provident fund totaled 120 or two thousand silver.

These practices seem almost inconceivable today, so the capital chain of enterprises will be very tight, and the ability to resist risks will not be mentioned.

But at the time when the joint-stock enterprises were just emerging, the experience of the whole business community was so inadequate.

Zhang Jian's pluralism and rashness are also common mistakes made by modern businessmen.

Zhang Xiao's investment expansion is too large, and the two factories, three factories and eight factories of Dasheng are hurrying to the ground under the unstable foundation of capital. With the burden of enterprises running the society, the big raw cotton mill has been seriously dragged down.

Some people in Dasheng saw the great benefits of Tonghai reclamation and animal husbandry company, and set up a salt reclamation company, with an investment of more than 20 million yuan.

All these companies are Zhang Jian's questioning, Zhang Jian's improper use of people, eager to make progress, these salt reclamation companies almost all failed.

But Zhang Jian felt his conscience and felt that he could afford to be a shareholder, and he had been a shareholder for 30 years.

The capital stock of the first plant and the two plant of Dasheng is only 369 million, while the market value of the spindle is 900 or more.

Over the past 27 years, the government has paid more than 1348 million yuan, and shareholders' income has been several times higher than that of investment.

But shareholders will never be satisfied. Zhang Jian is worthy of conscience but can not satisfy the greed of shareholders.

This is also the pain of most listed companies.

Good heart, good deeds, good words, good friends.

Wu Bing, a merchant of Shexian in Qing Dynasty

Comment:

Zhang Jian was a businessman who was a half way out of business. He played with great care.

It may be that the industry saves the nation. Zhang Jian is very aggressive in the use of funds. After success, he failed to prepare for the rainy day.

I do not know what is the new joint-stock enterprise of the economic crisis. It is a pity that its fragile ability to resist risks is not overwhelming in the face of cruel reality.