Revival Road

Chapter 183 Tang Yikun's Troubles II

The equity dispute that erupted within the family was very serious, but it was not what troubled Tang Yikun the most.What worries Tang Yikun the most is of course the business difficulties.One advantage of a large enterprise is that it has a strong ability to resist risks. Only a few people understand the business crisis that Donghu is facing. The tens of thousands of employees in Donghu cannot feel it. is not normal.

The conflict broke out from Donghu Machinery. Tang Yiwei submitted a comprehensive report to the board of directors as early as the beginning of March, pointing out again the difficulties faced by Donghu Machinery. Sixty percent of its subsidiaries are destined to lose money this year. The total loss More than 1.2 million.Among them, the clothing and mechanical processing enterprises suffered serious losses, and the chemical industry was better, barely able to keep the same level. The two pharmaceutical factories are the best, and the profit in the first half of the year is expected to reach 1300 million.

But the most important thing about running a business is not profit, but cash flow.Because there is still a hurdle to pass from profit to cash, and that is realization.The products sold cannot be paid back, and the accounts receivable are used to climb the books. This will not affect the profit, but it will definitely affect the operation.Not to mention losses, [-]% of enterprises have suffered losses, and Donghu Machinery has a big problem with cash outflow.

Sure enough, after entering the third quarter, Donghu Machinery’s cash flow was in a hurry. Employees’ wages could not be paid out, social security arrears became more and more serious, and raw materials could not be bought back, which affected the completion of orders in hand, which further affected follow-up orders and the debt crisis. Then it became serious, and more and more creditors went to the finance department of Donghu Machinery Headquarters in the development zone to ask for accounts. At most, four of them were stuck in the finance department or Tang Yiwei's office at the same time, making Tang Yiwei furious.

"Why are you looking for me? Whoever owes you the money is looking for it." Tang Yiwei yelled at the creditor very rudely.

"Mr. Tang, it's inappropriate for you to say that." Of course the creditors were not in a good mood, "Even if the debt was formed before the establishment of Donghu Machinery, but your Donghu Machinery has taken over all the debts and debts, who else can we turn to if we don't ask you? How about you give me some pointers..."

"Who are you looking for? Whoever owes you money is looking for it! Whoever signed the contract with you is looking for it..." Tang Yiwei felt almost suffocated.

In fact, what Tang Yiwei said is correct. Donghu Machinery has integrated Donghu Industrial’s businesses other than mining and real estate to become a diversified enterprise group. However, each of its subsidiaries is independently accounted for, and many of them retain their independent legal personality.In addition to the large investment, Donghu Machinery Headquarters only manages financial audit and personnel issues.The headquarters has a finance department, but it is more like an investment company, and does not care about the financial issues in the specific operations of each enterprise.

This mechanism was designed by Tang Yikun himself.

"Mr. Tang, it's even more wrong for you to say that. If your factory pays, why do we come to the headquarters? We have cooperated for many years, and we are not at the end of the mountain, and we will not be like this. Do you think..."

Creditors are more justified.If your company doesn't pay back the money, who will we look for if we don't look for you?

There is money in the account of the finance department, which is the development fund allocated by Tang Yikun when Donghu Machinery was established.All the enterprises under Donghu Machinery were acquired or established by Tang Yikun, which involved his countless efforts, just like his children in a sense.In fact, the rapid development of Donghu Real Estate is largely based on the companies that are now owned by Donghu Machinery.Because their land occupation is what East Lake Real Estate needs most.Well, the company bought it, moved it away (moved into the development zone, and co-produced it with the government), and vacated the land for East Lake real estate. After going through the procedures for changing the use at the Land and Resources Bureau, it became a commercial development land.Then he took the land certificate to mortgage the loan, so high-rise buildings were erected one after another, and communities were built one after another, and the profits flowed into the account of Donghu Real Estate...Since the stalls were getting bigger and bigger, Tang Yikun didn't have the energy to manage so many things. The company listened to the opinions of its assistants (including Tang Yiwei, who was eager to manage specific affairs at the time), made major business adjustments to Donghu Industrial, distinguished the main business from the auxiliary business, and sent his My younger brother became the president of Donghu Machinery, and also transferred a sum of money from Donghu Real Estate into the account of the Finance Department of Donghu Machinery Headquarters. He clearly told Tang Yiwei that the money should not be used indiscriminately. It was used to integrate and adjust the industrial structure of Donghu Machinery, so that The development of Donghu Machinery...

Great idea.However, the diversified operation of Donghu Machinery still cannot be maintained.Tang Yikun has been aware of this problem since the establishment of Donghu Machinery. It is impossible for him to turn dozens of companies under Donghu Machinery into cash cows.This is the case with companies, either making profits or losing money. Looking at the world, there are countless companies that go bankrupt due to various reasons every year.

Regarding the establishment of Donghu Machinery, Qi Zhen, the president of Donghu Real Estate, disagreed at that time.Qi Zhen believes that most of the companies under Donghu Machinery have no value after providing land. They all have various defects, otherwise the government would not sell them to us (most of the companies were reorganized and acquired by the government) ).If you want to save them, the amount of money invested is by no means a small amount. It may not be enough to invest all the money earned by Donghu Real Estate.Therefore, Qi Zhen suggested that a multi-pronged approach should be taken to solve the problem of Donghu Machinery. The main way out is to go bankrupt or give it to others.And the sooner the better.

Tang Yikun disagreed with Qi Zhen's plan.There are not only his ambitions or ideals, but also political considerations.In terms of personality, Tang Yikun likes possession, and abstract bank deposits are not as good as real factory buildings and equipment. He went to the development zone to inspect the enterprises under Donghu Machinery, and he really felt like a king inspecting the territory.In addition, he understands politics better than Qi Zhen. Donghu Industrial has received strong support from the Hiraizumi City Government in acquiring companies and changing the nature of the land. Yes, that would definitely offend the government, and it wouldn't pay off at all.

In April, conflicts began to erupt. At first, it was an inconspicuous steel pipe factory, but because it blocked the government gate, it attracted the attention of the city. The mayor of Shangguan called a special meeting to solve the problem of wage arrears. It is overwhelming, but fortunately, Hongxing has done Donghu a favor by taking over the small factory.Then Secretary Wang Yi was promoted, and the new boss Lu Yaozu came, but Donghu Machinery's difficulties intensified. In May, there was a big problem with cash flow, and the gap was as high as 4000 million. Tang Yiwei wanted to get rid of the so-called It is impossible to misappropriate development funds for emergency relief, because the money has already been taken away.

The huge sum of money was put into Donghu Machinery's account and only lay there for a month before it was withdrawn by Tang Yikun's order.Firstly, a large amount of funds is not allowed to be idle, and secondly, due to the sales problem of Jade Garden, Donghu Real Estate also experienced a shortage of funds.Over there is already the foundation of Donghu Industry, so the money must of course be used in key areas.

Tang Yiwei was very dissatisfied.That money gave him and his management team confidence and planned some plans, both in the near and long term, but now they have completely failed.Tang Yiwei was "instigated" by his subordinates and went to argue with Tang Yikun. The biggest reason was that Donghu Real Estate took advantage of Donghu Machinery in terms of land, and it was only natural to support or compensate Donghu Machinery.That money should be returned as soon as possible!Tang Yiwei warned that if the headquarters does not support it, I will not be responsible for another incident similar to the steel pipe factory.

Previously, Tang Yikun had clearly explained to Tang Yiwei that Secretary Lu had just arrived, and it was definitely a special period. It didn't matter if he lost a little, and there must be no stability problems.

This is the disadvantage of separation.Tang Yiwei regarded Donghu Machinery as his territory, and Wei Shegang regarded Donghu Mining as his confinement.The two factions representing the "Emperor and Empress" have begun to carve up East Lake.

The transfer of the steel pipe factory was a throwing stone.Tao Tang took the bait foolishly, as if he had picked up an ingot. This deal made Tang Yikun look down on Red Star, but soon he couldn't laugh anymore.Because the transfer of the steel pipe factory triggered a chain reaction of the enterprises under Donghu Machinery, more employees of the enterprises put forward similar demands.Enterprise employees who come from the whole people miss the unique sense of security in state-owned enterprises. When private enterprises are profitable and wages are high, they will not have ideas. When there are problems in operation, they will go to the opposite side.After the steel pipe factory was handed over, the city made continuous calls to the top management of Donghu Lake. The mayor Shangguan Hong called Tang Yikun, the deputy mayor in charge of industry Ma Desheng called Qi Zhen, and the Industry and Information Technology Commission called him. To Tang Yiwei, they all said the same thing: You must explain the policy to your employees. Mergers and acquisitions are irreversible. How can the city take back the sold company?

Tang Yikun felt as if he had lifted a rock and shot himself in the foot.Although he didn't hear the new secretary's voice on this matter, Tang Yikun knew that Lu Yaozu must have heard some rumors that were not good for Donghu.Back then when I dragged Tao Tang to meet Lu Yaozu, he asked this question, would it bring about a chain reaction?Do you regard the behavior of enterprises as the movement of the government?I made a promise in front of others, it seems that the consideration is too simple.

Helpless, Tang Yikun strictly ordered Qi Zhen to allocate 5000 million yuan to Tang Yiwei for emergency. He would never allow the government to be blocked again at this time, let alone rumors of Red Star's operating difficulties.Of course, the allocation of funds must go through procedures, because Donghu Machinery and Donghu Real Estate are two independently operating companies, not branches of the same company.Among them, 2100 million is regarded as the return of the payment in advance, and the remaining 2900 million is used as an advance payment after signing a cooperation agreement.Tang Yikun asked Tang Yiwei to guarantee the payment of wages first, and even if the work is suspended, he must be paid the minimum wage, and never mention layoffs.Secondly, we must ensure the completion of orders, especially pharmaceutical and chemical factories, and must not stop production.The third is to ensure that there will be no major lawsuits. The lawsuit involves the image of Donghu Industrial Group and should not be taken lightly.Tang Yiwei got 5000 million life-saving money, so he got over the difficulty temporarily.

5000 million funds cannot solve all the problems of Donghu Machinery.At the beginning of June, Tang Yikun convened two consecutive enlarged board meetings with the participation of Donghu Machinery executives to study the problem of Donghu Machinery's escape.The conclusions are quite consistent. Donghu Machinery must distinguish the nature of its subsidiaries and formulate measures by category. It must not use emergency measures anymore, otherwise Donghu Industry will be dragged to death.

There are two opinions on how to classify and solve.One, represented by Wei Shegang, proposes a strategy of breaking the dead and helping the living: For enterprises with bleak market prospects and zero technical reserves, such as textile and printing factories, they must resolutely go bankrupt.Otherwise, its operations cannot be reversed.For pharmaceutical factories and chemical factories that are basically well-run, we should expand investment in them so that they can become the new pillar of Donghu Group.

The other is represented by Qi Zhen, who still insists on his previous point of view. Donghu must compress its business scope and can no longer take the road of diversification. Looking at successful companies around the world, except for a very small number of companies such as GE, they are diversified. If the business is successful, the rest will fail.The implication is that except for real estate and mining (which is the old foundation of East Lake), the rest will be given up, and the sooner the better.Even if there is a loss, it is not hesitating.

Of course Tang Yiwei understood what Qi Zhen meant, and was naturally very dissatisfied, and quarreled with Qi Zhen at the meeting.

Tang Yikun knew very well that it was impossible to fundamentally reverse the situation of Donghu Machinery by relying on Tang Yiwei's ability.The youngest is still successful, but the ability to start a business is poor.

But what to do?How to solve the business dilemma of Donghu Machinery?You can't keep giving Tang Laosan blood transfusions, can you?
　I'm going on a business trip tomorrow, so I'll send out the only chapter I have saved.

　　
　
(End of this chapter)