Liu Yonghang: industrial integration and competitiveness promotion

Introduction: host: Thank you, Mr Liu Changle I think I was impressed by at least three of the codes that Mr Liu Changle just contributed One is the ambition of the sky, the wings of the program, and the long wind of the mechanism Next, let's invite Mr Liu Yongxing, chairman of Oriental hope group, to make a keynote speech Liu Yongxing: Hello! Starting from 82, Oriental hope is 22 years old In the process of our development, we have many thoughts, some of which determine the future and hope of our enterprise In 1993, we just started to establish a group company At that time, I seriously thought about the future development of our enterprise We always thought that the future competition is very fierce If we can't prepare for the future competition, we will It will fail In 1993, when we were relatively easy to succeed, because we were leading in private enterprises, because at that time, foreign-funded enterprises were outstanding, state-owned enterprises were blooming everywhere, private enterprises were very rare, and our competition was incomplete In this kind of incomplete competition, but in the future, China will certainly be privatized So at that time, it was analyzed that we could easily succeed I initially set this time in 2001, while the foreign-funded enterprises were in high-level operation, so I think the competition will be very cruel after 2000, and we must be prepared for this After a long period of thinking, I proposed in 1994 that we should complete all the buildings in China by 2002 How to complete these projects? At that time, there were only seven of them At the end of 1993, we proposed to separate them for development and for faster development In 1994, we put forward this proposal again In May 1995, the board of directors agreed to my proposal In 1998, we completed the construction of 100 factories When the market is easy to succeed, we completed the construction of 100 factories But in 1995, we expected that we would complete all the projects in 2000 But I really don't know how to develop in the future It's easier to build 100 factories, but I don't know how to maintain the construction of these 100 factories and keep them growing On the other hand, if these 100 factories are completed, what should we do next? To develop overseas, to continue to build more factories at home, to diversify the way, or to continue to develop in the industry It was not clear at the time Next, I analyzed it carefully By 1996, I probably knew a truth When we finished 100 factories in 2000, we would have a half time development stagnation period At this time, how can we continue to develop in the domestic market? We need to absorb experience and adopt methods We cannot develop overseas blindly We must Be prepared in advance At this time, our capital will be idle, and our talents will have no new space for them to do bigger things on a larger platform So we are thinking about how to extend our group industry This is what I want to think about At last, I feel very confused and don't know how to do it Next, I will analyze the characteristics of our industry If we want our factories to develop continuously after 2000, it will take a long time for each factory to develop continuously Our industrial chain also extends down We know that the farming industry has the highest benefit for farmers We should do a good job in this market We think we should leave the market for farmers Nevertheless, we have made one or two pilot projects and rebuilt a small farm, often for more than a year, and I think my choice is right Even on the basis of Chengdu's friendly cooperation, we have done thermal power plant projects in other provinces After two or three years, I don't think this industry is suitable, because my industry is a means of production enterprise I think I should still play in the field of production, especially in the industry with high efficiency and low cost, so I continue to make feed bigger I was wondering if I could go up? In face, our development has stagnated It is closely related to the feed industry, which is characterized by purchasing materials from overseas, that is, a factory presses 10000 tons or tens of millions of tons of oil every day I expect to start oil extraction in 2007 and 2008 At this time, we will build several large-scale oil extraction plants to supply soybean oil demand downstream of feed In addition, what else can we do? During the 1997 Korean economic crisis, we bought 90000 tons of new Korean varieties It is a technology intensive and capital intensive enterprise At that time, we had no capital, technology and talent But I think if we want to do it, we have plenty of time If we spend five or six years on research, then we may accumulate funds We can do it when we have funds, technology and talents So in 1996, I set up a laboratory in Chengdu and carried out three years of development and research Then we bought a closed factory and transformed it into a product factory In this exploration process, we learned that neon ammonia products must achieve several points First, our investment cost must be increased, because foreigners spend 500 million yuan to build a 10000 constant If so, their direct expenses and financial expenses account for a high proportion If foreigners use 500 million yuan, we use 100 million yuan, which is the cost saved Use is our competitiveness, so we work hard in this direction Second, we must make this industry more competitive from the beginning of raw materials and resources, and we will choose the corn industry On the other hand, if we use corn to produce, we can save transportation cost, packaging cost and drying cost, so that our products can increase competitiveness by 5% Third, this kind of product is a high energy consuming product For example, the national electricity purchase is 60 cents If we can reduce these costs, our competitiveness is very strong in the production of such products in the corn production area I budgeted at that time If we don't do this and do this, there is a 30% cost difference Therefore, this is a direction we have set When we continue to mature, and have funds in the future, we will cultivate talents, and then we will generate electricity and produce neon ammonia feed in corn producing areas in northern China and each producing area, so as to integrate the industrial chain But at this time, there is another problem If we build a thermal power plant for neon ammonia plant, the thermal power plant is small-scale, and the benefits of small thermal power plant are very low, and the investment is also very low, so I wonder if we can build a large thermal power plant, and use the electricity to produce a high energy consumption product, and at the same time, use the steam of generator to support our feed industry 。 In this way, our feed industry has stronger competitiveness Another way of thinking, we hope that the success of the group in the development of 20 years, each industry is small In 1992, I learned that a small feed factory in the United States only needs 7 people, and we hope that the group needs more than 100 people, and the state-owned enterprises need more than 400 people I carefully analyzed the differences in the middle I found that the most important difference is not autonomy, not intensification, but our legal system is not perfect We The system of our society is not perfect, and the labor efficiency of such small enterprises is extremely low I visited a lot of feed factories in the United States All feed factories are smaller than us All our feed factories don't have gatekeepers What to prevent? Steal The organization of American feed factory is very strict, there are not so many people, no laboratory, no consignee, because their integrity mechanism is very sound, the director of American feed factory burns the boiler, the doctoral student burns the boiler, which is very cheap, but none of our general manager is willing to burn the boiler The general manager and director of the American factory have many jobs They are not only accountants, but also part-time cashiers, computer operators, goods receivers and doorkeepers, which China can't do The most important reason is not that Chinese people can't do it, but that China's legal system is not sound, and people's legal concepts and integrity mechanism are not established, which greatly increases our cost Our small feed factory and any of our small factories need a lot of problems, such as guard, security, patrol, and of course, some public products of equipment are not suitable Set So, despite our great efforts, our labor efficiency can be improved every year in such industries and small industrial projects, but we can't catch up with the 20 tons per day of labor production per capita in the United States It will take 20 years to catch up Through ten years of efforts, our per capita labor productivity has increased by 1.5%, and we still have a tenfold gap In such small projects, we can improve labor productivity through our own efforts and organization Our role will not be fully reflected, and our management mechanism, system and advantages will not be fully exerted On the contrary, through 20 years of efforts, we believe that we have some capital savings after 2000, we have 20 years of enterprise management experience, we have the experience of building factories on our own, we can greatly reduce the investment cost, and we can quickly build factories But if we can use our advantages to enter large-scale industrial projects, we can make our per capita labor productivity catch up with and approach the world's advanced level For example, American enterprises can use 10000 years, I can use 7000 years, because such large enterprises, gatekeepers, security guards, do not need these things, we need them, but they have been diluted by the output, and their proportion is very small Based on this analysis, I think that after 2000, we should enter heavy industry and large industry, but such projects It also requires a lot of money and technology, which is very difficult for us In 1996, we conducted a serious visit and investigation from all over the country, and investigated hundreds of medium and large-scale enterprises, focusing on medium and large-scale enterprises, including steel, oil, automobile, paper and tire In some industries like this, I find that these industries will contribute to the private enterprises in China, but it is also very difficult After six years of thinking, the two lines get a intersection point from the feed industry itself and the two lines we need to do large industrial projects We need to build large-scale power plants, and how large-scale power plants digest their own power consumption, we focus on High energy consuming products are the electric industry So since 1996, our electric industry project has been on trial Very coincidentally, our factory