The domestic small nitrogenous fertilizer companies that were born in the 1960s and 1970s were generally congenitally deficient. No matter which small nitrogen fertilizer manufacturer, if it wants to continue development, it must constantly find ways to lend to carry out technological transformation with the goal of expanding energy, saving energy, and improving product quality. In this process, a little inattentive, it will carry a heavy burden of debt, and even drag the company to the brink of death. The so-called technical reforms and other deaths are the reason why technical reform seeks death. However, there are also some companies that have not been dragged by loans during the technological reform process. Hebei Jinglong Fengli Chemical Co., Ltd. is such a small nitrogen fertilizer company. The reporter recently interviewed Liu Yingjiang, general manager of the company.
When talking about the usual debt experience of small nitrogen fertilizer companies, Liu Yingjiang made this description: In the era of planned economy, technological transformation funds for small nitrogen fertilizer companies with the same name as “National†are mostly allocated by the state. Since the money is national, it is also used in the state-owned enterprises. Manufacturers rarely have the consciousness of "repaying money." At that time, the plant manager of the small nitrogen fertilizer plant almost used his main energy to “run to Beijing†and raise funds. Whoever caught money and who developed it did not think about repaying the money. But in reality, any debt is to be repaid. With the gradual increase of debt, coupled with the corresponding supporting technology, management, etc., technical reform has not produced the expected benefits, or the resulting benefits are insufficient to repay the debt, so that the debt burden of the enterprise has been unprecedentedly increased. On the day when it was really unstoppable, it was only the production shutdown or even bankruptcy.
The former Ningjin County Fertilizer Plant of Hebei Jinglong Fengli Chemical Co., Ltd. has had such a painful experience. At the end of 1995, with the completion of the transformation of the 40,000 tons/year and 60,000 tons/year urea projects, Ninghua achieved a historic leap from low-concentration ammonium bicarbonate to high-concentration urea, but at the same time it was backed beyond the imagination of the company. The debt burden - the project invested 160 million yuan, total liabilities actually exceed 250 million yuan. In 2002, the company was finally forced to stop production under the high pressure of debt repayment.
Fortunately, the cadres and workers at Ninghua did not lose their confidence in their lives. They used a three-day period to tighten the belt and raised 1.5 million yuan, so that they could keep their brand. And relying on this 1.5 million yuan, after careful planning, the whole plant has been filled with recovery-type overhaul, and finally resumed production.
From then on, in order to avoid recurrence of the indebtedness in development, Ninghua established two ironclad principles: one is to do what it can to do it—to insist on how much money to do, and never to do anything more than repaying the ability. The asset-liability ratio of reforms has always been controlled within 80%. The second is the debt repayment of money - to maintain a high degree of integrity of creditors, on time and in full refund of the money, and when the first thought of money to repay the money. In the next few years, Ninghua introduced new technologies and new processes year after year, conducted energy saving and consumption reduction, expanded production scale, and developed new products. Even though the amount of capital investment each time was not large, it was a steady step. Achieved a small step run - the capacity of synthetic ammonia increased from 40,000 tons/year to 60,000 tons/year, urea increased from 60,000 tons/year to 130,000 tons/year, and 200,000 tons/year compound fertilizer was developed and Melamine, methanol and other items. The product structure of the company is reasonable, and the quality of technology, technology, and products has reached the advanced level among domestic counterparts. The consumption and cost have been significantly reduced, and the economic benefits have increased dramatically. In 2006, profits and taxes exceeded 40 million yuan. In this process, the company's asset-liability ratio has been controlled at around 70%, maintaining a virtuous circle.
Summarizing the development experience of Ninghua, Liu Yingjiang believes that enterprise development is not a “feverâ€, and it is not a self-respecting “going fastâ€. In the past, when companies had popularized the saying, "No change was to wait for death, but instead to seek death," the first half of this statement was right, and the latter part of the sentence was inaccurate. Instead, it should be changed to "determination for death." The so-called “discriminatory†is a matter of overheating, that is, relying too much on “using other people’s money to make a fortuneâ€, thinking that the debt can default, or overestimating its ability to repay debt, blindly investing regardless of conditions. The result of this falsification is naturally to find death. Therefore, small businesses must adhere to the principle of seeking development. Otherwise, because the company will develop too fast and have too much debt, the chain of operation will be broken and it will fall into the abyss of eternal loss.
When talking about the usual debt experience of small nitrogen fertilizer companies, Liu Yingjiang made this description: In the era of planned economy, technological transformation funds for small nitrogen fertilizer companies with the same name as “National†are mostly allocated by the state. Since the money is national, it is also used in the state-owned enterprises. Manufacturers rarely have the consciousness of "repaying money." At that time, the plant manager of the small nitrogen fertilizer plant almost used his main energy to “run to Beijing†and raise funds. Whoever caught money and who developed it did not think about repaying the money. But in reality, any debt is to be repaid. With the gradual increase of debt, coupled with the corresponding supporting technology, management, etc., technical reform has not produced the expected benefits, or the resulting benefits are insufficient to repay the debt, so that the debt burden of the enterprise has been unprecedentedly increased. On the day when it was really unstoppable, it was only the production shutdown or even bankruptcy.
The former Ningjin County Fertilizer Plant of Hebei Jinglong Fengli Chemical Co., Ltd. has had such a painful experience. At the end of 1995, with the completion of the transformation of the 40,000 tons/year and 60,000 tons/year urea projects, Ninghua achieved a historic leap from low-concentration ammonium bicarbonate to high-concentration urea, but at the same time it was backed beyond the imagination of the company. The debt burden - the project invested 160 million yuan, total liabilities actually exceed 250 million yuan. In 2002, the company was finally forced to stop production under the high pressure of debt repayment.
Fortunately, the cadres and workers at Ninghua did not lose their confidence in their lives. They used a three-day period to tighten the belt and raised 1.5 million yuan, so that they could keep their brand. And relying on this 1.5 million yuan, after careful planning, the whole plant has been filled with recovery-type overhaul, and finally resumed production.
From then on, in order to avoid recurrence of the indebtedness in development, Ninghua established two ironclad principles: one is to do what it can to do it—to insist on how much money to do, and never to do anything more than repaying the ability. The asset-liability ratio of reforms has always been controlled within 80%. The second is the debt repayment of money - to maintain a high degree of integrity of creditors, on time and in full refund of the money, and when the first thought of money to repay the money. In the next few years, Ninghua introduced new technologies and new processes year after year, conducted energy saving and consumption reduction, expanded production scale, and developed new products. Even though the amount of capital investment each time was not large, it was a steady step. Achieved a small step run - the capacity of synthetic ammonia increased from 40,000 tons/year to 60,000 tons/year, urea increased from 60,000 tons/year to 130,000 tons/year, and 200,000 tons/year compound fertilizer was developed and Melamine, methanol and other items. The product structure of the company is reasonable, and the quality of technology, technology, and products has reached the advanced level among domestic counterparts. The consumption and cost have been significantly reduced, and the economic benefits have increased dramatically. In 2006, profits and taxes exceeded 40 million yuan. In this process, the company's asset-liability ratio has been controlled at around 70%, maintaining a virtuous circle.
Summarizing the development experience of Ninghua, Liu Yingjiang believes that enterprise development is not a “feverâ€, and it is not a self-respecting “going fastâ€. In the past, when companies had popularized the saying, "No change was to wait for death, but instead to seek death," the first half of this statement was right, and the latter part of the sentence was inaccurate. Instead, it should be changed to "determination for death." The so-called “discriminatory†is a matter of overheating, that is, relying too much on “using other people’s money to make a fortuneâ€, thinking that the debt can default, or overestimating its ability to repay debt, blindly investing regardless of conditions. The result of this falsification is naturally to find death. Therefore, small businesses must adhere to the principle of seeking development. Otherwise, because the company will develop too fast and have too much debt, the chain of operation will be broken and it will fall into the abyss of eternal loss.
Haibo Machinery Co., Ltd. , http://www.embroiderymachine-manufacturer.com