Private Economy Lets Me Taste the Sweetness of Development-Zhu Jianhua's Sense of Gainings from a Restructured Enterprise

Here is the title one h1 placeholder text


Opening remarks: in July 2003, Xi Jinping, then secretary of the Zhejiang Provincial CPC Committee, personally drew up the "August 8 Strategy" for Zhejiang -- putting forward a strategy to further give full play to Zhejiang's eight advantages and promote measures in eight aspects. it presents dialectical thinking and strategic coordination between the past and the present, mountains and seas, cities and townships, advantages and shortcomings, provinces and the overall situation. Over the past 15 years, Tongxiang has always followed the path guided by the "August 8 Strategy", drawing a blueprint to the end, one term after another, and the city's economic and social development has made historic achievements. Behind these historic achievements is the interpretation of people-centered thinking and practice.
 
This year coincides with the 40th anniversary of reform and opening up and the 15th anniversary of the implementation of the "August 8 Strategy". In order to continue to write the big article of the "August 8 Strategy", this newspaper has launched a series of reports on "doing in practice, never ending, walking in the forefront, bravely standing at the forefront, and showing the sense of gain brought to the masses by the" August 8 Strategy "from the perspective of witnesses, encourage the people of the city to solidly advance the" August 8 Strategy "to deepen, reform and opening up again, be the vanguard of high-quality development, and welcome the centenary of the founding of the party with outstanding results.
 
[August 8 strategy] "further give full play to the advantages of Zhejiang's system and mechanism, vigorously promote the common development of various ownership economies with public ownership as the main body, and constantly improve the socialist market economic system."
 
[business card] Zhu Jianhua: president of Minglong Holding Group, one of the first batch of private entrepreneurs among the large-scale enterprises in Tongxiang City. Under his leadership, Minglong Holding Group has grown from a township enterprise with assets of less than one million yuan to a group with 7 holding companies, involving textiles, building materials, trade, investment, finance and other fields, with assets of 0.36 billion yuan. Private enterprise. The company's output value in 2017 broke the 1 billion yuan mark for the first time.
 
On August 3, this year's No. 12 typhoon "Skylark" brought heavy rainfall. Due to the low terrain of the warehouse of Minglong Holding Group Company, there was irrigation. Zhu Jianhua and the company's party members and cadres fought on the front line of the anti-Taiwan war early in the morning. For more than 20 years, he has devoted all his efforts to the development and growth of Minglong Holding Group with his enterprising spirit of daring to work, daring to be the first and perseverance of never giving up. He is an outstanding representative of private entrepreneurs in Tongxiang. Let's listen to the road of private enterprises in Tongxiang that he has personally experienced.
 
[My Story] In 1984, the spring breeze of reform and opening up blew green across the river, and township enterprises began to rise in Tongxiang. With cement factories and brick and tile factories everywhere, Tudian purchased several 113 circular machines eliminated by state-owned enterprises and established Tongxiang County Weft Knitting Factory, the first light industrial township enterprise in Tongxiang. This is the predecessor of Minglong Holding Group.
 
Backward equipment and technology, coupled with the backward marketing model of only a few salesmen carrying leather bags, the weft knitting factory has not improved, and in 1988, it was even on the verge of bankruptcy.
 
At this time, the government of Tudian Township learned that there had just been an upsurge of electrostatic flocking in China. The raw material of the base cloth of its products was the products produced by the weft knitting factory at that time. If the original products could be technically transformed, the factory might be able to bring the dead back to life. Out of this consideration, the township government at that time invested 1.25 million yuan to carry out technological transformation and reorganization of the original factory, and at the same time recruited factory directors from the whole society.
 
The public election for factory director was still a new thing at that time. At that time, I was a workshop director of Tudian cement factory. Because I was young, I wanted to have a try. For this reason, I stayed up late to write a competition speech material with the title of "how to be a workshop director". I started from my own work and told the story of how I tried to be a workshop director, I can't believe this speech touched a lot of people.
 
In 1989, the trend of market economy surged. In order to encourage foreign investment, the policy of tax exemption for foreign-invested enterprises could be granted for three years. Taking advantage of this preferential policy, the original county weft knitting factory introduced foreign capital after technological transformation and reorganization, and established Tongxiang joint venture flocking factory. I was formally employed as the deputy director in charge of operation on August 20 of that year, and became the factory director a year later.
 
New equipment and new technology have greatly increased the output, but at the same time it has also brought a problem to the enterprise-how to do a good job of marketing? At that time, there was no network, even if you had to wait in line to make a phone call, but the cloth in the factory could not wait, and the funds could not be returned if they could not be sold. In 1990, I learned that there was a textile exhibition in China at that time. Once a year, dealers from all over the country would attend it. So, a salesman and I, with several samples and contracts, got on the train to Tai'an, Shandong Province.
 
I didn't know until I went there that a new company like ours, which is not well-known in a township enterprise, could not enter the venue at all, let alone the booth. What should I do? I bought a few boards in the local area, rented a table, put samples and contracts on it, and "set up a stall" outside the venue ". To everyone's surprise, our new product was so popular that customers lined up at our table to sign contracts with us.
 
In this way, the market was quickly opened, but new problems came again. Because it is a new equipment, the technology is not mature, and the product quality is unstable. In order to ensure the quality, we insist on production during the day and technological transformation at night, and devote ourselves to production day and night.
 
In order to maintain the customers developed in the early stage, I boldly proposed to set up a marketing team and openly recruit 20 salesmen. In order to avoid eating from the same big pot, I divided them into five departments. Each department competed openly. I also created a competition mechanism. I hung up bar charts of their sales and payment in conspicuous places in the factory. Their salaries and bonuses were all linked to performance.
 
I remember very clearly that in the first month at that time, according to my performance appraisal method, a salesman could get a bonus of up to 3000 yuan, which was an astronomical figure, because at that time, the bonus of ordinary employees was only about 100 yuan a month. After reading the report to be issued with bonus, the leaders in the town have some ideas. They think that such a big gap is inappropriate. Other employees in the factory also have ideas. They think that my performance appraisal system will not work, but I insist very much. I said that if an enterprise wants to develop, first of all, leaders must have faith in their words, and secondly, there must be gaps in order to motivate employees. In this way, when the first month's bonus was paid, the enthusiasm of all salesmen was completely stimulated, and the company's production and sales continued to rise. Since 1990, the company has not only turned losses into profits, but also has a net profit of over one million and an output value of over ten million for three consecutive years.
At that time, most of the salesmen in the factory bought houses in a short time, and because of my outstanding work, I won many honors, including the excellent factory director of Jiaxing City, and became the first batch of people in Tongxiang to obtain the qualification of "agricultural to non-agricultural" at that time.
 
In 1993, flocking technology began to decline. I felt that the market situation had changed and there must be new products to support the development of the company. Fortunately, the factory had a lot of savings at that time. I imported warp knitting machines from Germany, purchased 4 warp knitting machines in China, and went to the warp knitting project. The company was rejuvenated.
 
However, the market is like this. To set up a company, one must keep investing. At that time, because the planned economy was still dominant, as a township enterprise, one must make a report to invest. At that time, it was during the upsurge of large-scale industry. The town leaders proposed to set up a factory in the factory and invest money in a new brick and tile factory. However, there were already more than 100 brick and tile factories in Tongxiang at that time. When our factory was completed, there, there was overcapacity, product prices plummeted, serious losses.
 
In 1996, the warp knitting market rose again. Under my repeated insistence, the town agreed to continue to increase investment in the industry. I borrowed more than 100 million yuan from the bank and ordered a batch of equipment. The company's output expanded by two or three times., Realized profitability.
 
In 1997, when the enterprise was restructured, many people had ideas. They felt that the township enterprises were heavily in debt and had a large number of personnel, and they had a burden on individuals. However, I insisted that the rise of the country must rely on industry. In addition, I have worked for so many years and have feelings for the company and the industry. As a result, I became the first to apply for conversion in Tudian.
 
It went smoothly. On April 25, 1998, the company was officially transformed into a private enterprise. From then on, I also let go of my hands and feet, made drastic reforms in management, and invested heavily in technology. I pay special attention to talents. I have broken the shackles of cronyism in traditional private enterprises and introduced a "competitive employment system" in the company ". In a competition, my niece also signed up, but in the end, it was a more capable girl from other places. The girl has no background, but works hard and has solid professional knowledge. This is the talent that the enterprise needs.
 
Since 1999, I have invested more than 3000 million yuan to build a new factory area and purchase equipment for technological transformation. In 2004, I became the first enterprise to move into Tudian Town Industrial Park. In that year, I realized an output value of over 100 million yuan, becoming the first 100 million yuan enterprise in the town. In the 15 years since 2003, the company can be said to have ushered in tremendous development, and has established 5 subsidiaries, involved in building materials, trade, investment, finance and other fields. Since then, the company has maintained a steady growth rate of about 30% per year. In 2017, the company's output value exceeded the 1 billion yuan mark for the first time.
 
In 2001, China's accession to the WTO ushered in a new situation of "going out" for Chinese enterprises. I realized that the world is very big and we should strive to open up new markets. Beginning in 2008, the company set up a trading company to increase exports. In 9 years, the company's foreign trade started from "zero" and is expected to exceed 50 million US dollars this year.
 
I have always believed that the growth of the company is inseparable from the efforts of employees, and the sense of gain of employees must be improved. I try my best to create a comfortable working environment-build an employee apartment according to the three-star standard, with two old employees and a husband and wife room with all kinds of equipment in the room. Employees are free of three meals a day and order their own recipes. Every year, staff also organize long-term and short-term tours, staff sports meetings and staff spring festival gala activities. Over the years, Minglong's turnover rate of senior employees is "0", and the annual rework rate of ordinary employees is about 94%.
 
I pay special attention to party building, because I think that grasping party building can bring positive energy to the enterprise invisibly, and the party building work can obtain the productivity that the enterprise needs. In the year of system transformation, I put forward a request to the superior organization to retain the party organization of the enterprise, and turned the full-time deputy secretary into a secretary. The division of labor and cooperation: the secretary focused on party building and ideology, and the factory director focused on economy and development. In that era, the development mode of "one hand grasping party building and the other hand grasping economy" was formed. Now, among the senior managers in Minglong, the party members have reached more than 95%, more than 90 per cent of the trade unions, the Communist Youth League and women's committees are party members.
 
I think real entrepreneurs should stand at a high level, not only to make money, but also to contribute to society. Over the years, I have successively supported the construction of new rural areas, the construction of village-level roads, the installation of street lamps, the construction of river banks, the construction of bridges, the construction of sluices, the construction of living squares, and the earthquake relief. I have donated more than 1.75 million yuan to support the charity of villages, towns and cities, and set up a special fund of 1 million yuan for the care of party members. He also donated money to primary and secondary schools in Tudian to support dozens of poor college students.
 
The private economy has allowed me to taste the benefits of development, and it has also made me more and more energetic. I have set myself a new goal. By 2020, the company will achieve an output value of more than 2 billion yuan through zero-land technological transformation.
 
[Reporter's narration] As early as the beginning of reform and opening up, Tongxiang vigorously developed township enterprises and established a leading position in development.
 
In the 1990 s, Tongxiang took the lead in promoting the reform of the enterprise system, encouraging the development of the private economy, and forming a first-mover advantage in the system and mechanism. Since the beginning of this century, Tongxiang has taken transformation and upgrading as the main theme, vigorously rectifying the silk reeling, cement, and brick and tile industries, upgrading traditional advantageous industries, and introducing strategic emerging industries. From small-scale township enterprises, to innovative scale enterprises, to national and even world "singles champions" in their respective sub-sectors, Tongxiang private enterprises have a clear and powerful pace of development.
 
Practice has proved that the height, foresight and overall nature of the "August 8 strategy" has created the best environment for the development of private economy, and is the biggest driving force for Zhejiang's private economy to continue to be in the forefront. As long as we give full play to the role of the system and mechanism, every Tongxiang person will act one after another and will continue to innovate. In the past 40 years of reform and opening up and 15 years of the "August 8 Strategy", the development of Tongxiang shows that "system and mechanism advantages" are the source of all vitality. The specific soil and environment created sunshine and rain for the seed of Tongxiang private economy. "As soon as there is sunshine, it will be brilliant, and as soon as there is rain and dew, it will sprout." This is a vivid portrayal of the development of Tongxiang's private economy after the implementation of the "August 8 Strategy.