Zhong Xincai: "A good business is never short of money!"


This year, no matter whether it is a large enterprise or a small and medium-sized enterprise, it is difficult to raise financing. Why do companies generally encounter financing difficulties? How should Foshan manufacturing companies respond? Foshan Lighting enjoys a reputation as a “cash cow” in the domestic capital market. Its chairman, Zhong Xincai, said in an interview that a good company has never lacked funds. Foshan manufacturing enterprises must break the financing bottleneck, and it is the right way to improve internal competitiveness. .
Good companies never lack funds

Why do companies generally encounter financing difficulties? Zhong Xincai believes that the entrepreneurs did not do well in the first place. First, the economic benefits of the company are not good. Where can the bank dare to lend you? For example, the current annual interest rate of a bank's one-year loan is about 8%, but the gross profit level of a company may only be 4 to 5%. How can such a corporate bank dare to lend money? Once the company can't afford the money, the bank goes where to fill the hole; second, the corporate reputation is poor. At present, the domestic economic growth rate has slowed down, and the country’s monetary contraction has also reduced the scale of bank loans. However, the bank’s money is ultimately to be loaned out. Then, the bank will first shrink the loan amount of the enterprise with poor reputation, and will not shrink the loan of the enterprise with high reputation.

“A good company has never lacked funds.” Zhong Xincai said that those small and medium-sized enterprises that do not have a dominant position in the industry and have low added value of products are not as good at closing the door in the current economic environment. “Good companies will continue. Do your own products, increase the added value of products and the profitability of enterprises, so that there are many opportunities for indirect financing through banks or direct financing of enterprises through listing."

Secondly, Foshan enterprises still have to do a good job of internal management. They can no longer follow the old-fashioned way. By introducing modern management systems, they must strengthen management, control costs, and increase product added value. Of course, bank loans or listing financing will naturally have." In addition, in the process of development, enterprises must be stable and steady, and do their best. They must not rush to make progress and make great progress. They must maintain sustained and steady development. At the same time, by continuously investing in the development of new products, increasing product diversity and increasing the added value of products, enterprises can be in a favorable competitive position in the industry.

Do the best thing with half the effort

In recent years, the municipal government has vigorously advocated supporting enterprises to go public in order to solve the problems encountered in regional economic development. But why does it seem that entrepreneurs do not form a spontaneous listing atmosphere?

Zhong Xincai analyzed that this requires enterprises to solve the following problems: First, the problem of starting a business. How did our company start? Many enterprises, especially small and medium-sized enterprises, have basically grown up under the policy environment that the government strongly encourages economic development and provides very loose taxation and fee reduction. In addition, at that time, the market grew very fast. Many companies developed in the form of husband-and-wife, brotherhood, and friend-style. Therefore, regardless of financial or cost control, internal management, etc. are very irregular. If you want to go public, these irregularities must be completely corrected. This is not in line with their usual style for entrepreneurs who are used to this model. Therefore, on the issue of listing, entrepreneurs are accustomed to ideological conflicts;




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