Cao: Don't be blindly optimistic or pessimistic, be mentally prepared and face 202 1 rationally.

In 2020, the sudden epidemic changed the world. Looking back on 2020, how will enterprises be affected by the epidemic? What did the epidemic bring to China enterprises? How to treat the effect of the government's bailout policy? Around these problems, the Beijing News interviewed Cao, chairman of Fuyao Glass Group.

Cao said that Fuyao will not be affected by the epidemic in 2020. One of the reasons is that Fuyao insists on conservative management and the corporate debt is very low. "The procurement supply chain of manufacturing industry requires higher safety of enterprises, and will take the debt level and market performance of supplier enterprises as important reference conditions. Our report is very good-looking. Customers have reduced orders from other companies, but increased our orders. " Cao said that before the outbreak, many enterprises lived within their means and blindly borrowed money to expand. When confronted with external shocks such as epidemic, many enterprises are in trouble. Through this epidemic, we should remember that enterprises should do their best in business investment.

Protecting market players is an important part of the "six guarantees" in 2020, and the government has issued a series of policies to help enterprises. Cao believes that the government's rescue policy has really helped many enterprises and entrepreneurs. However, he also suggested that if different rescue methods can be adopted according to different situations, the effect may be better. For example, some enterprises are not suitable to take the form of deferred loans to help, so it will be better to let these enterprises with poor operating efficiency and insolvency go bankrupt and reorganize.

In 2020, driven by a proactive fiscal policy and a prudent monetary policy, investment recovered rapidly. However, investment in manufacturing industry is still relatively low. In Cao's view, one of the reasons for the sluggish investment in manufacturing industry may be the current overcapacity and lack of good investment fields or projects. Cao expressed concern about the investment enthusiasm of new energy vehicles. "The new energy automobile industry may have accumulated a certain bubble and may waste a lot of money in the end."

Looking forward to the external situation faced by enterprises in 20021year, Cao believes that we should neither be blindly optimistic nor blindly pessimistic about the economic situation in 20021year, but be prepared enough to face it bravely and rationally. "Especially when entrepreneurs make investments, they should make investments according to the real market demand. If it is not market-oriented, the things produced cannot be sold and piled up there. " Cao Xiangjian suggested.

"Adhere to conservative management and low debt. Fuyao will not be affected by the epidemic in 2020. "

Beijing News Shell Finance: Looking back now, will Fuyao be greatly affected by the epidemic in 2020?

Cao: Under the impact of the epidemic, many enterprises at home and abroad have been affected. However, in 2020, Fuyao's business situation was very good and it was not affected by the epidemic. Without the losses caused by RMB appreciation, Fuyao's profit in 2020 is expected to be better.

When the epidemic just happened in 2020, with the closure of Wuhan, China took strong measures to control the epidemic. In the first month or two, Fuyao's domestic production line was affected a little. However, Fuyao also has many overseas companies, and there was no loss in profits of overseas companies in the first quarter. When the epidemic spread overseas, we in China have started to take the lead in resuming production, and our domestic production lines have gradually begun to return to normal. Recently, our production line has almost reached the peak of previous years. At present, the overseas epidemic situation is still very serious, but Fuyao overseas factory has not stopped production, but the number of workers who go to work has decreased, mainly because their government subsidizes workers who don't go to work. Many of Fuyao's overseas factories are newly built, and some factories are in the climbing stage. Other overseas factories are not affected by the epidemic. In addition, the epidemic did affect the output of cars, but we have always been the first echelon supplier, unlike the latter suppliers.

Fuyao will not be affected by the epidemic in 2020 because of our long-term efforts. We insist on conservative management, there is no diversified investment, and the corporate debt is very low. Fuyao's report is very good, and customers have great confidence in us. During the epidemic, our customers reduced orders from other companies and increased our orders instead. This is because the purchasing supply chain of manufacturing industry requires higher safety of enterprises, and when purchasing enterprises choose suppliers, they will take the debt level and market performance of supplier enterprises as important reference conditions. If the supplier's debt ratio in the supply chain is high or it is considered that there is a liquidity crisis, the upstream enterprises will reduce the order quantity of suppliers and seek enterprises with more stable and safer operating conditions to reduce risks. Especially in the epidemic, suppliers with strong security capabilities are the first choice of customers.

"Enterprises should try their best to resist sudden external shocks."

Beijing News Shell Finance: What did the epidemic bring to China enterprises?

Cao: Now, under the epidemic situation, good enterprises have become better, and some bad enterprises have to close down because of the epidemic situation. In addition to catering and other service industries, some enterprises affected by the epidemic have several characteristics: First, high-debt enterprises, especially high-interest debt enterprises. Second, the asset structure is unreasonable, and short-term loans are given to long-term investment enterprises, crowding out other funds. On the balance sheet, accounts receivable are relatively large. Third, its products lack core competitiveness, and the invested enterprises are speculative. Fourth, low-end, repetitive, homogeneous and competitive enterprises, such as the real estate industry.

Reflect and summarize why many of our enterprises can't afford the epidemic in 2020. Because before the outbreak, many enterprises did not live within their means, were insatiable and blindly borrowed money to expand, thinking that everyone could borrow money to invest. Why can't I borrow money to invest? However, the borrowed money must always be paid back, and creditors can always ask your company for debts. When faced with external shocks such as epidemic situation, many enterprises can't persist. Through this epidemic, we should remember that enterprises should invest according to their abilities, not blindly borrow money to expand and invest in short-term loans, so as to resist sudden external shocks like an epidemic. It is a safe investment behavior for an enterprise to reinvest the cash generated from its own income. If an enterprise does not have the ability to repay its debts at any time, it is better to invest blindly without borrowing money. As an entrepreneur with responsibility and personality, we should treat every investment with caution and never be opportunistic.

Beijing News Shell Finance: China's exports will increase against the trend in 2020. What is Fuyao's export performance in 2020? What's your judgment on China's export performance in 20021year?

Cao: In 2020, our company's exports will not be affected by the epidemic, or those orders. However, the appreciation of RMB is so great that we hardly make any money on exports. But in order to maintain a long-term cooperative relationship with customers and protect orders, business still needs to be done. Because once the order is broken, there will be no customers in the future.

"It is necessary to allow bankrupt enterprises to go bankrupt and really help enterprises solve problems"

Beijing News Shell Finance: Under the impact of the epidemic, in order to protect enterprises, the government has issued a series of policies to help enterprises. What do you think of the effect of the rescue policy?

Cao: In 2020, the government made great efforts and introduced a series of policies to rescue the market. The government's rescue policy has really helped many enterprises and entrepreneurs. However, not all enterprises are suitable for direct financial assistance. If we can take different ways to help according to different situations, the effect may be better. Different rescue methods should be adopted according to different situations. Some enterprises are suitable for financial assistance, and some enterprises should be rescued by legal means-for example, letting zombie enterprises go bankrupt and reorganize.

Under the impact of the epidemic, the problem of security circle in some places has already appeared. In order to prevent the risks brought by the interlocking guarantee circle problems, individual governments let banks issue loans to enterprises. The government helps enterprises in this way with good intentions, but the effect is not always good.

Especially those zombie enterprises that should go through bankruptcy liquidation have brought a burden-some enterprises can hardly pay the interest on bank loans, or even can't repay the interest on loans. I think our rescue policy is appropriate and correct, because saving a large number of enterprises means saving a large number of entrepreneurs. Those zombie enterprises that should go bankrupt should not be rescued in the form of deferred loans, because such assistance cannot fundamentally solve the problems of these enterprises. Once the policy is withdrawn, these enterprises will still have problems. In my opinion, the reasonable way to help some enterprises is to let those enterprises with low profitability, insolvency and near bankruptcy go bankrupt. In other words, when an enterprise applies for bankruptcy, the government should accept the enterprise's bankruptcy application, freeze all the assets in the enterprise account, register the creditors' debts, and liquidate the assets of the bankrupt enterprise. And help debtors or enterprises solve problems through gradual bankruptcy procedures. This enterprise went bankrupt. Although "meat" is gone, the "bone" as an asset is still there. The court auctions the assets of the enterprise and pays off the debts with the proceeds from the auction, which greatly reduces the burden on the enterprise, and entrepreneurs will not be beaten for not owing debts. I think, just like a tree with many withered branches and leaves, after cutting off these messy burdens, the tree may germinate again. In the same way, don't let enterprises continue to bear a heavy burden. Only by allowing bankrupt enterprises to go bankrupt can we really help enterprises solve their problems.

For bankrupt enterprises, public opinion often calls them "Lao Lai", and we should not call bankrupt entrepreneurs "Lao Lai". Some entrepreneurs are "dependent", some entrepreneurs are not "dependent" and "dependent" entrepreneurs are a minority. Doing business is an adventurous undertaking. Entrepreneurs should be encouraged to make new efforts after bankruptcy and respect them in personality. Of course, their personal consumption can be restricted, which is an internationally accepted method to quell the public anger caused by the bankrupt's own mistakes.

"There is a certain bubble in the new energy automobile industry"

The Beijing News Shell Finance: According to the data released by the National Bureau of Statistics, the current investment in manufacturing industry is low, and in June1-1manufacturing investment decreased by 3.5% year-on-year. What are the possible reasons for the sluggish investment in manufacturing industry?

Cao: At present, many enterprises are not short of money or even have excess funds. One reason for the sluggish investment in manufacturing industry may be the current overcapacity and lack of good investment fields or projects. On the supply side, we in China have basically produced everything we can. In recent years, homogenization, redundant construction and overcapacity are very serious. Judging from the gap on the demand side, what we lack in the market are soybeans and corn crops. But these things are more cost-effective, enterprises are unwilling to invest, and even farmers are too lazy to plant them. I think our internal circulation should be to promote enterprises to really find areas where they can invest.

Beijing News Shell Finance: Now the global automobile industry is transforming into new energy vehicles. How to treat the growth opportunities of new energy vehicles? Is there a bubble in the current industry?

Cao: There are no particularly good investment opportunities at present. Many people regard new energy vehicles as a good investment opportunity or outlet, so many enterprises have to rush to invest in new energy batteries and cars. But I think new energy vehicles still need electricity, not water. The so-called new energy vehicles are essentially electric vehicles. Some enterprises call it a new energy vehicle just to get subsidies, but enterprises can't live long on subsidies. The new energy automobile industry may have accumulated a certain bubble, and may eventually waste a lot of money and have overcapacity.

For the impact of the new energy automobile industry, I am personally worried about two things: first, what about those who are transforming into new energy vehicles and producing traditional gasoline and diesel vehicles, and what about those car owners who have car loans? Just like after Apple's mobile phone came out, traditional mobile phones such as Nokia plummeted, and these traditional mobile phone manufacturers were wiped out. The same is true for new energy vehicles. New energy vehicles are cheap, beautiful and fun. As soon as a traditional car goes on the market, the price will drop sharply, but the owners of traditional models still have to repay the loan at the original price. The second problem is that in order to meet the demand of new energy vehicles, the supporting facilities in residential quarters should be transformed. There are no charging piles, not enough cables and wires embedded in the original community, no power supply network in the city, and insufficient transformer capacity. These problems must be solved. In addition, what is more serious is how to deal with the discarded batteries, which is a difficult problem.

"Be mentally prepared and face 202 1 rationally"

Beijing News Shell Finance: What do you think of the external environment faced by enterprises in 20021year? What are Fuyao's plans for 20021year?

Cao: 202 1, Fuyao Club will operate and develop with a more prudent attitude. First of all, the epidemic has not passed, and the world is still in a very tense state. It cannot be said that the epidemic is coming to an end, and it is still too early to enter the post-epidemic era. From a global perspective, the current epidemic situation has not been effectively alleviated, and there have been variations, and the domestic epidemic situation is also sporadic.

Second, even without this epidemic, our economy is facing the problem of transformation. In the past decades of reform and opening up, due to our lack of experience in transformation or other reasons, the stimulus policies we adopted promoted economic growth, accumulated some structural problems and produced some ineffective investments. Our investment in real estate and infrastructure is huge, which is not directly proportional to the output, so we should pay attention to the effectiveness of investment. Of course, these problems are caused by long-term accumulation, but we can't say that we don't care.

Beijing News Shell Finance: 202 1 What advice do you have for entrepreneurs?

Cao: We can neither be blindly optimistic nor blindly pessimistic about the economic situation in 20021year. But to be mentally prepared and face it bravely and rationally. What should I do if I get into trouble? Living is the last word. We in China should not shy away or be afraid. Fear of difficulties, escape from reality, and comfort yourself with good words are tantamount to stealing the bell. What is there to be afraid of? Haven't we crossed the most difficult 60 years in history? What kind of days can't we live? China is our own motherland in China. We should face the reality, face and analyze the situation we will face with an objective and scientific attitude, and then try to find out what kind of scientific means to solve the problem.

Doing business is a high-risk undertaking. As entrepreneurs, we should be cautious, be responsible for the country, the society and your personal behavior with a highly responsible attitude. Especially when entrepreneurs make investments, they should seriously discuss what to invest and what not to invest, and make investments based on real market demand. If it is not market-oriented, the products produced can't be sold and piled up there.