Tan Gongyan's entrepreneurial story: from $100 to $38 billion wealth legend

Tan Gongyan's entrepreneurial story: from 100 yuan to 38 billion yuan of wealth legend

From 100 yuan to 38 billion yuan, this fissile growth behind the interpretation of what the legend of wealth creation?

He, 35 years ago, with his wife selling vegetables accumulated more than 100 yuan, relying on the "two red stove, four hammers" to start the ironwood processing plant, in the land does not have the conditions for the development of industrial enterprises, built the "countryside in the city!

He, ambitious and with a sense of salvation, give up billions of personal assets, adhere to the collective ownership system, only for the original ideal - "benefit society, *** with the rich". In the river and lake crossings, transportation is closed, does not have the conditions for the development of industrial enterprises on the land, built a "city in the countryside.

He, both romantic and practical, both persistent and sensitive, always able to turn the vision into reality, always grasp the pulse of the times, seize the opportunity of industrial change, and promote the continuous growth and progress of enterprises. He is a "tree people" concept, leading the company to walk in the "evergreen" road, so that a side of the people to live a happy life.

He was elected to five consecutive sessions of the National People's Congress, always focusing on the "three rural" issues to suggest and contribute to the promotion of economic development and improve people's well-being.

He is Tan Gongyan, chairman of Fortune Group. From 100 yuan to 38 billion yuan, this fissile growth behind the interpretation of what the legend of wealth creation entrepreneurial story?

"Run a business so that folks have classes, how good it is"

Village teacher's simple entrepreneurial feelings

Fuxing Village, formerly known as "Duanjiao Village", is located in the southwest of Shenhu Town, Hanchuan City, Hubei Province. The village is located in the southwestern corner of Sinking Lake Township, Hanchuan City, Hubei Province, in the river mire area, the transportation is closed, and does not have the basis for the development of industrial enterprises. To this day, many villages here have not been able to lift themselves out of poverty. However, Tan Gongyan has built Fuxing Village into a "city in the countryside". Fuxing Village was named one of the "Ten Famous Characteristic Villages of China", along with Huaxi Village and Nanjie Village.

The dramatic change began in 1979.

That year, the spring breeze of reform and opening up blew, teaching in the countryside Tan Gongyan secretly thought: "If you can run a business in your hometown, so that folks have a class to go to work, have a fixed income, how good it would be!" Wife Feng Youying perceived her husband's 'mind, so she took more than 100 yuan in the summer of 1980 to sell vegetables saved up to support Tan Gongyan and eight other partners in their hometowns set up the first township enterprises - Hubei Hanchuan Iron and Wood Processing Factory. The 100 yuan is almost the entire registered capital of this workshop-style factory.

After all, agricultural equipment is a regional market, the market demand is limited, only by the production of these products, the enterprise is difficult to have a big development. Tan Gongyan has been looking for a better project.

One day in March 1982, iron and wood processing plant business managers to Wuhan Wire Rope Factory to buy coarse steel wire, they found a few foreign buyers do not buy coarse steel wire and specializing in buying fine steel wire, and then curiously tailed those buyers to Nantong. There, they found the answer - it turns out that the local people with fine steel wire processing into wire rope for sale, the market demand is strong. Tan Gongyan keen to seize this business opportunity, in 1984, the wire rope project was officially launched.

In the era of economic shortages, the handmade wire rope sells well. But two years later, Tan Gongyan think only by hand, small business can not, must introduce equipment, take the road of mechanized large factories. From 1985 to 1995, the enterprise has six years of output value, profit and tax doubled, there are five years of growth of more than 50%, in one fell swoop upgraded into the ranks of the national medium-sized and large enterprises.

If 1984 is the starting point of Tan Gongyan's transformation and development, then 1996 is Tan Gongyan through the "enterprise with the village" to realize the turning point of the ideal of **** with the rich.

This year, Fuxing's annual output value has been close to 400 million yuan, profits and taxes of more than 80 million yuan, the staff monthly income of more than 1,000 yuan. But next to the enterprise Fuxing village, the average annual income of farmers is less than 700 yuan. Tan Gongyan decided to explore the "enterprise with village" development model. That year, Shenhu Town and Fuxing Group *** with the establishment of Shenhu Town Fuxing Development Zone Management Committee. Fosun Group focuses on economic construction, town construction, welfare and employment, and Sinking Lake Town focuses on administration and social services.

Through "enterprise to village", villagers enjoy the benefits of enterprise development. At the same time, Foxing Group can also optimize the allocation of production factors such as land, capital and labor in a larger space. In a few years, the nearby Lihua Village and Chenyuan Village were incorporated into the Fuxing Development Zone Management Committee, and the development model of "one enterprise with three villages" was formally formed.

Today, the location of Fuxing Group has become a "depression" that attracts all kinds of factors of production to converge, and more than 4,000 farmers in the vicinity have realized the local transfer, of which more than 3,000 work in the company and more than 1,000 engaged in the tertiary industry, accounting for more than 85% of the total labor force of the three villages. 2013, the annual per capita net income of the farmers in the village of Fuxing broke the record. In 2013, the annual per capita net income of farmers in the village exceeded 18,000 yuan, much higher than the provincial average.

"The road is still very long, can not be divided"

Courage and commitment to adhere to the collective ownership system

Enterprises, especially collective enterprises and partnerships, in the process of development, there are often separation of families or even dissolution of the partnership.

Tan Gongyan also encountered this situation. After five years of business, the ironwood processing plant had an accumulation of more than 400,000 yuan. At that time, a few fellow entrepreneurs put forward the idea of sharing 10,000 yuan each as a "ten thousand yuan household", the rest of the Mr. and Mrs. Tan Gongyan. "Splitting the money and going it alone goes against our original intention of starting the business and changes the direction of the business." Tan Gongyan strongly disagreed, "This enterprise is still at a stage of doing simple business, can not drive a village, not to mention driving a sinkhole commune. The road is still very long, can not be divided!" Tan Gongyan decided to take out the money, the introduction of machinery and equipment, the production of steel wire rope.

It is Tan Gongyan's persistence that has led to today's Fuxing Group.

In 2004, the enterprise restructuring winds. In June of the following year, the relevant leaders sought Tan Gongyan's views on the restructuring of Foxing Group. Some leaders proposed to give Tan Gongyan more than 70% of his personal majority shareholding, worth billions of dollars, based on the original investment in the enterprise.

Tan Gongyan, however, has his own unique understanding of enterprise restructuring, "Many enterprises have developed to a certain size, because of the diversification of equity leads to the diversification of the main body of interests, the hearts of the people are not unanimous. If the shareholding is clear to the individual, I am personally benefited, but it is difficult to cohesion **** knowledge, to realize the ideals of the enterprise when it was founded. According to the actual situation, which ownership system can better promote the growth of the enterprise and *** with the rich, will adhere to which ownership system. As far as our practice here is concerned, collective ownership is conducive to the development of productive forces."

However, in the context of economic marketization, this insistence is not understood by many people, and some people even accuse Fuxing of being a "red hat" enterprise, which is impossible to contribute to economic development and work for the benefit of the people.

An expert born at the same time as Tan Gongyan's explanation is quite pertinent: "Over the past 30 years, Tan Gongyan insisted on collective ownership, not only requires great courage, but also requires a firm ideal and faith. This is a heroic sentiment of the times: through the development and growth of enterprises, to enterprises to bring the village, to realize *** with the rich, to practice the simple sentiment."

"Either you don't do it, or you don't let go"

Enterprises should learn to "take root" like moso bamboo

"Either you don't do it, or you don't let go." Tan Gongyan's body has a toughness.

This tenacity is like a moso bamboo, moso bamboo with four years to take root, only 3 centimeters long, but the fifth year of 30 centimeters per day at a rate of 30 centimeters of crazy growth, just six weeks to 15 meters. "Enterprises need to learn to 'take root' like the moso bamboo." Tan Gongyan said.

From 1985 to 1995, Tan Gongyan put all his energy into "rooting". He used two "constantly" and two "strengthen" to describe his work at that time, "constantly develop new products, constantly explore the market; strengthen product quality, strengthen cost management.

In the market positioning, Tan Gongyan always adhere to the "high quality and good price", for which the company created its own "two-way quality tracking file", "the best cost management method" and other management methods, which have been promoted to the national metallurgical industry. management methods, which were popularized in the national metallurgical industry. Fuxing has become the largest metal products base in China.

Tan Gongyan did not let up, and began to think about "how to develop for a long time". The next five years, Tan Gongyan began to implement the "series of products, high-quality brands, high-tech" three major strategies. Through new projects and expansion of existing projects, the company expanded its product categories and output. Through the integration of resources, gather strength, cultivate tire steel wire, steel wire rope and other five leading products for high-quality brands. According to the direction of national industrial policy and industry trends, the development of automotive radial tire steel cord.

The implementation of the three strategies, so that Fuxing has a greater momentum of development, and the day of June 18, 1999 in the Shenzhen Stock Exchange successfully listed, opening a new historic page.

Firmly believe that "people have three meals are not hungry, three pieces of clothing are not broken," the simple truth, from 2001 to 2005, Tan Gongyan launched the industrial structure and product structure of the "two major adjustments" strategy, the implementation of industrial diversification, product diversification, high-tech major development decisions. Development decisions: metal products from conventional products to the crown product steel cord adjustment, industrial sectors from the metal products industry to real estate, biopharmaceuticals, electronics industry adjustment.

Compared with the previous almost no objection to the decision, this major strategic adjustment is not understood by too many people. "At that time, the metal products industry on the steel cord, real estate industry reserves of land, engineering and construction, the total **** need more than 2 billion yuan of investment, while our net assets of only 800 million yuan, we must rely on huge financing. In this way, the company's assets and liabilities from the listing after the zero debt ratio rose sharply to 70%." Fuxing Group office director Xiong Songhua said.

At that time, there was a controversy in the country about whether to "specialize in one industry" or "concentrate on many industries". Tan Gongyan did not avoid the controversy, he did not want to put the enterprise in a huge risk because of decision-making errors, so he invited experts and scholars to repeat the discussion, argumentation. Later facts proved that Tan Gongyan's decision was correct. After the product structure adjustment, the profit margin of steel cord accounted for 80% of the profit margin of all metal products, listed companies from 2003 onwards, the operating results for three consecutive years of more than 30% increase, metal products industry has become the national industry leader, real estate industry has become a national brand, biological companies to become a national similar enterprises in the top five, the group belongs to the various industries to enter the full period of abundant profitability and rapid development period.

Now, Fosun has entered the sixth stage of "innovation and development, efficiency first". In order to build Fosun into a century-old enterprise, strengthening the learning organization and corporate culture construction has become an important part of Tan Gongyan's daily thinking.

Tan Gongyan's Profile:

Tan Gongyan is the Chairman of the Board of Directors and Secretary of the Party Committee of Hubei Fuxing Group Company, and has been elected as a deputy to the National People's Congress for four times. In more than ten years, he has cultivated Foxing Group from a village-run workshop into one of China's top 500 enterprises, and made great contributions to Hubei's economy, and is one of the most outstanding entrepreneurs and business managers in China.

Tan Gongyan, male, born in 1948, Hubei Hanchuan people, Chinese *** party members, university culture, senior business administration (EMBA) master's degree is in the process of study, senior economist was elected to the eighth, ninth, tenth and eleventh consecutively as a deputy to the National People's Congress. 1995 by the state awarded the "national model worker", national "May 1", "May 3", "May 4", "May 5", "May 5", and so on. In 1995, he was awarded the honorable title of "National Model Worker", "May Day" Labor Medal, "National Outstanding Business Manager", "National Outstanding Private Entrepreneur", etc. In 2004, he was awarded the title of "Outstanding Chinese Characteristic Socialist Cause" by the People's Government of Hubei Province. In 2004, he was awarded the honorable title of "Outstanding Constructor for Socialist Cause with Chinese Characteristics" by Hubei Provincial People's Government. In 2004 and 2005, he was awarded "People of Hubei Economy" for two consecutive years, and in 2006, he was awarded the Special Contribution Prize of Hubei Economy; in 2007, he was awarded the title of "National Village Richer People's Development Award". In 2007, he was honored as one of the "Top 100 Leaders of National Village Development and Richer People"; in 2009, he was elected as one of the "100 Meritorious People of Hubei in 60 Years of the Founding of New China", and appointed as the "Honorary President of Hubei Charity Federation". Vice Chairman of Hubei Federation of Industry and Commerce.

And Tan Gongyan's son Tan Shaoqun as a new generation of business wizards, as the current chairman of Fosun Fitch Real Estate Co., Ltd, broad vision, rigorous and wise, and leading Fosun Fitch give full play to their own strengths, to build on their strengths and avoid their weaknesses, do not blindly follow the wind in the face of the changes in the domestic and international real estate market, Tan Shaoqun in the company to vigorously promote the strategy of diversification, deepen the structural adjustment, and take the initiative to meet market challenges, and gradually from a single residential product to a single residential product. Challenges, gradually from a single residential products to residential and commercial real estate development, take steps from residential real estate to commercial real estate transition, become a national benchmark for commercial real estate. At the same time in the field of commercial real estate in all kinds of aspects have a lot of precipitation, has achieved remarkable results, just 12 years, so that Fuxing Huiyue steady growth as Hubei real estate industry "leading" enterprises.

Tan Shaoqun is also a developer with a sense of social responsibility, and has hosted the "Miss Wuhan Competition", "Cheers for the Olympic Games" and other large-scale public welfare activities; has donated more than 60 million yuan to the Hubei Provincial Charity Federation, was awarded the provincial government "charity" by Fortune Group. Mr. Tan Shaoqun has been awarded as a "Charity Enterprise" by the provincial government. Mr. Tan Shaoqun always adheres to the business philosophy of "Be a person first, do things later". With such entrepreneurs, I believe that Fortune Fortune will cross a new stage, and will go better and better on the road of differentiated, themed and featured commercial real estate.　

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