Liu Yongxing's Personality Achievement

Shandong attaches great importance to the development of private economy. Private economy has a good investment environment, a vast market, abundant resources and friendly people in Shandong, which has become an important reason for Liu Yongxing to increase its investment in Shandong.

From 65438 to 0994, Liu Yongxing, together with nine other private entrepreneurs, launched the "Glorious Cause" initiative aimed at developing poverty alleviation projects. Since Shandong 12, Liu Yongxing's brilliant career projects have illuminated nine cities in Shandong.

During the period of 12, Liu Yongxing invested in 10 feed factory and an electrolytic aluminum factory in Shandong, and a carbon project was under construction, which made great contributions to the economic development of underdeveloped areas in Shandong.

Liu Yongxing continuously invested in Shandong on 12, which is closely related to Liu Zhimin, former chairman of Shandong Federation of Industry and Commerce.

When Liu Yongxing entered Shandong to expand his feed field, Liu Zhimin, the old chairman, accompanied him all over Shandong. Even, many projects were told to Liu Yongxing by Liu Zhimin after his inspection, and Liu Yongxing said, "That's settled".

Their deep relationship can be traced back to 12 years ago.

Liu Zhimin recalled: 1995, the All-China Federation of Industry and Commerce held a meeting in Mayang Island, Yantai City, Shandong Province. He met Liu Yongxing's younger brother Liu Yonghao and Liu Yonghao was also in the meeting. He invited Liu Yonghao to have a look around Shandong, and Liu Yonghao told Liu Yongxing about it when he got back. Later, I hope that the property rights of the group will be clear and divided into four parts. This part of Shandong belongs to Liu Yongxing.

Soon, Liu Yongxing, who had a good impression on Shandong, sent two comrades from the investment department to Shandong to inspect the project, accompanied by Liu Zhimin, then chairman of Shandong Federation of Industry and Commerce. After receiving the telephone report from the staff, Liu Yongxing was deeply moved. He told the staff, "Don't come back if you can't decide the project".

As a result, east hope Group signed two projects in Shandong at the same time, namely Qingdao Hope Feed Co., Ltd. in Pingdu, Qingdao and Jinan Hope Feed Co., Ltd. in Zhangqiu, Jinan.

After the project was officially launched, two projects were completed in only 100 days. This also left a deep impression on Liu Zhimin: Although east hope Group was already quite strong at that time, they still worked very hard. The staff live in temporary sheds, and the wind is still strong, but their construction period is still very short. From here, we can see the management and pioneering ability of a well-known private enterprise group.

Due to the improvement of the feed market, the products of Dong Hope Group are highly competitive, and all the investment was basically recovered in the second year, with a profit of more than 6,543,800 yuan in that year.

This is another joke. Liu Yongxing later recalled that once, Liu Zhimin accompanied him to Qufu after running the project, and they went to the Confucius Temple to have a look together, when a bee stung him. Liu Zhimin and Liu Yongxing joked, "What is Confucius enlightening you?" Liu Yongxing has been saying since then that Confucius is pointing out that he will get a good return if he invests more in Shandong.

After the success of two feed projects in Shandong, Liu Zhimin suggested to Liu Yongxing that if you set up factories in poor areas of Shandong, can you go to Linyi? Liu Yongxing readily agreed.

Entrusted by Liu Yongxing, Liu Zhimin personally went to Linyi to inspect and build a feed project. Soon, Shandong Yimeng Hope Feed Co., Ltd. was born.

Since then, Liu Yongxing has successively set up factories in Liaocheng guanxian, Heze Dingtao, Decheng District of Dezhou City and Qingyun County. These places are located in the west and south of Shandong Province, and their economic level is relatively poor. Most of the investment places are in towns and villages in some underdeveloped counties.

Liu Zhimin recalled that Jinan had to walk to guanxian for one morning because the road to Liaocheng guanxian was not easy at that time. But even so, despite the difficulties, the project was completed in a short time.

The successful commissioning of this project in guanxian has a great impact, which has become a major driving force for local development, supporting and driving some enterprises to invest locally.

Hu Deping, deputy director of the United Front Work Department of the CPC Central Committee and the first vice chairman of the All-China Federation of Industry and Commerce, said: "Liu Yongxing is the first launch, which has driven the local economy."

"With the rapid economic development of Liaocheng City, Shandong Province, Liu Yongxing has played a great influence and promotion role." Liu Zhimin said.

Liu Zhimin added that the subsequent investment in electrolytic aluminum projects with an annual output of 6.5438+0.6 million tons reached 65.438+0.5 billion yuan, which was the first in China at that time.

Liaocheng's electrolytic aluminum project is Shandong Xinfa Hope Aluminum Co., Ltd., which is a modern large-scale enterprise integrating thermoelectric and electrolytic aluminum invested and built by east hope Group and Shandong Liaocheng chiping Xinfa Power Group. The company is located in Xinfa Hope Industrial Park, chiping, Shandong Province, with a total investment of 654.38+0.5 billion yuan and an annual output of 654.38+0.6 million tons of electrolytic aluminum. At the same time, it is equipped with a 3 10MW thermoelectric unit. This project is the first step for East Hope Group to develop its second main business.

At present, Liu Yongxing has built a 10 feed factory and an electrolytic aluminum factory in Shandong. Shandong has the largest number of feed factories in the first main business of East Hope Group. Up to now, Liu Yongxing has invested billions of yuan in Shandong, with projects in Jinan, Qingdao, Dezhou, Linyi, Liaocheng, Heze, Dongying, Yantai and other places, which has become a booster for local economic development.

Liu Yongxing has a business philosophy of "three concessions": to make farmers rich, to satisfy citizens and to reassure the government. These "three concessions" have been well implemented in its investment projects.

Liu Zhimin said that farmers are rich because the feed he produces is of good quality and low cost, which provides local farmers with good raw materials for livestock production. Moreover, farmers' agricultural and sideline products such as corn, bran and soybean meal are the main raw materials for feed production, and the feed factory is open to farmers to buy, creating benefits for farmers; Satisfy the public because he strictly demands the quality of production, and the public can rest assured to eat meat and meat products without feed pollution; Let the government rest assured, because he never steals a penny of tax. In Shandong alone, Liu Yongxing turned over more than 500 million yuan a year, which shows that the government can rest assured.

"I don't take any money earned in Shandong and develop on the spot." Liu Yongxing said, "If there is a good big project suitable for me in Shandong, I am willing to continue investing at any time." Liu Yongxing

The feed industry has always been the foundation of Liu Yongxing's family, and he has never stopped expanding in this industry.

Two years ago, the ten-year contract between Dong Hope and Xin Hope expired, and the two sides began to enter each other's territory. Liu Yongxing invested 1 100 million yuan to build a feed factory in Chengdu, Sichuan. The production capacity of this factory is close to 15% of the total feed output in Sichuan. In the future, Dong Hope's feed factory construction will focus on the south of the Yangtze River. It is planned to invest in the development of 50 feed mills, including 5 to 8 in Sichuan.

Like Liu Yonghao, the fourth brother, Dong Hope's overseas investment started at 200 1. Liu Yongxing soon owned six feed companies overseas: five in Vietnam, each with an investment of about $3 million; There are 1 companies in Singapore with a total investment of $9.8 million. At present, the total overseas investment is about $25 million. Dong Hope will continue to expand its investment in Southeast Asia, and plans to invest in 50 feed mills in Southeast Asia.

The overseas expansion of the Liu brothers is related to the gradual decline of the domestic feed industry. Since1990s, the whole feed industry in China is facing the situation of excessive competition, and the profit rate of tens of thousands of feed enterprises is declining year by year. Average profit rate of domestic feed mills 1% to 3%. Dong Hope's profit rate is no exception, which has been decreasing marginally for more than ten years: at first it was as high as 30%,120% in 995,18% in 998, and the lowest point was 5%.

Liu Yongxing's explanation is that the threshold of the whole industry is too low, resulting in a serious overcapacity. However, Liu Yongxing is satisfied with Dongdong's feed sales in 2007: "It is estimated that the annual sales growth rate will reach about 40%." Through the improvement of management level, the profit rate of Dong Hope can also be increased to 5%~8%.

Starting from 200 1, the whole hope group shifted its research and development focus to the high-end feed-premixed feed composed of various amino acids, vitamins and trace elements according to different formulas, and competed with more than 300 foreign feed enterprises in China for the high-end market of 1% feed market. At the same time, East Hope Group began to research and develop lysine with high technical content in feed on 1996, and mastered the production technology, and established a large-scale industrial production factory in Baotou.

In fact, Liu Yongxing saw the unfavorable prospect of feed industry as early as 1996. He has been looking for a second main business related to it. There are also diversified investments, such as Minsheng Bank, China Everbright Bank and Shanghai Bright Dairy, but they all belong to the "investment sector" of the new hope of the East. In the industrial division of Liu Yongxing, three industry has been added in the east: feed industry, secondary industry and investment plate.

Liu Yongxing believes that the secondary industry must echo the feed industry of the primary industry and form an industrial cluster. At this point, Taiwanese businessman Wang Yongqing is the best example.

His inspiration comes from the investigation of an aluminum factory in Shanxi. At first, he heard that using cheap Shanxi coal to generate electricity to produce electrolytic aluminum was very low in cost. However, when he saw the white steam emitted from thermal power generation, he suddenly realized that he could use the energy of the investment place to generate electricity to produce electrolytic aluminum. The steam generated in the process of power generation can produce lysine, an important additive in feed, and the waste generated by lysine can produce feed and compound fertilizer, thus forming an industrial chain of "aluminum-electricity composite-electrothermal cogeneration-lysine-feed", and this production mode is exactly the circular economy advocated today.

In 2002, Liu Yongxing began to enter the aluminum industry, and now has three aluminum enterprises, including an alumina enterprise. Among them, east hope Baotou Rare Earth Aluminum Co., Ltd. as a benchmark project, the total investment will reach 10 billion yuan, and the first phase of the project will be put into production in 2003. Compared with the fourth brother Liu Yonghao, Liu Yongxing's investment field is much smaller. The former has made great achievements in finance, real estate and feed industry. He even entered the downstream pig industry of feed industry. Beijing Qianxihe Food Co., Ltd. is the exclusive supplier of chilled pork and pork products for the 2008 Beijing Olympic Games, and owns 60% of the shares of New Hope.

In fact, the problem of diversification or specialization has been puzzling many domestic enterprises. On the one hand, entrepreneurs nodded frequently and agreed with the "specialization" proposal put forward by Michael Porter, the father of international competitiveness, on the other hand, they involuntarily implemented irrelevant diversification strategies, and there were countless failure cases.

But Liu Yongxing has always believed in a prudent investment strategy. When the real estate was booming, he was advised to invest in real estate, but he refused to do so. His explanation is that real estate is too easy to make money and not challenging. In the book Road to Hope, which introduces the family history of the Liu brothers, it is said that 1995, Dong Hope also invested in real estate, but it fell into an investment trap. As a result, Liu Yongxing realized that his weakness was that he was not good at dealing with officialdom. Under the background of opaque land information at that time, many real estate transactions were opaque, too dangerous and not suitable for themselves.

In the capital market, when the 1999 stock market was booming, Dong hoped to use idle funds to enter the primary market to make new shares, but Liu Yongxing never agreed to enter the secondary market. He once told the media: "If I get billions from the secondary market, I will be very scared."

He even refused to go public. Why doesn't Dong Hope go public? Basically, every reporter who has interviewed Liu Yongxing will ask this question. Liu Yongxing explained that when I was in the feed industry before, I didn't need financing because I was not short of money. "Too loose funds are easy to make people's minds swell, and we hope to use money more tightly." He said.

Now entering the heavy industry, the aluminum and electricity industry is a high-input industry, which undoubtedly needs a lot of money. However, Liu Yongxing's explanation is: "Because of the large investment, large span and high risk of heavy industry, despite full preparations, we don't want to take risks with investors' money, or even with banks' money."

Indeed, from 1996, Liu Yongxing began to accumulate funds for the second main business, which was not clear at that time. By the time he started to invest in the aluminum industry, he had accumulated billions of dollars in six years. In the previous investment in the aluminum industry, Dong Hope basically used its own funds.

Liu Yongxing also applied his highly respected Toyota management experience to enterprise management. The standard time for building a new factory in feed industry is about one year, while East Hope is three months. "It has been saved for nine months, and there are depreciation expenses, financial expenses, wages, etc. Has been saved in these nine months. In this way, we shortened the time of loss and accelerated the speed of cash flow, "he said. "In fact, it is also disguised financing." Saving half the investment is equivalent to financing 50%.

During the construction of the first phase of Baotou Aluminum Power Plant, Dong Hope spent one year and invested 2.5 billion yuan to build a production scale of 250,000 tons of primary aluminum and put it into production. The investment and construction period is one third of the international standard.

But it was prudent investment strategy that saved Dong Hope at the critical moment. In 2004, when Dong Hope Aluminum was just put into production, it happened to be the time when the national macro-control policy was introduced. It is precisely because all the investment is made with its own funds that Dong Hope has avoided the danger of capital chain breakage.

"We seem to be very conservative, but this conservatism has helped us." Liu Yongxing told Southern Weekend reporter.

But in the eyes of some observers, Liu Yongxing's massive entry into heavy industry is actually extremely radical. Because entering an industry that requires both high investment and policy constraints and monopolists means unpredictable risks in the future.

But Liu Yongxing believes that doing business now is not just the accumulation of wealth. "Only through large-scale industry can we give full play to our potential," he said. "Helping the team grow is also one of corporate social responsibilities."

He is enterprise-centered most of the time and has been in a state of despair. At the beginning of the business, in order to sell chickens, Liu Yongxing once peddled along the street to help the whole family tide over the difficulties. However, when he was a child, his injured right leg lost the possibility of radical treatment because of overuse, and even he had auditory hallucinations for a while, and his ears were always buzzing with chickens.

The billionaire's obsession with business once made his wife very dissatisfied. In the diary collection of "Yongxing and I", my wife complained, "When I heard that the factory products are in short supply, I felt very uncomfortable and couldn't wait for the products to be sold. I don't want my husband to work so hard. " But then she changed her mind. In another article, she said, "A husband who really pursues his career deserves his wife's respect."