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Interview with Mr. Zhong Xincai, Chairman and General Manager of Foshan Lighting, Mr. Luo Xiuming, a reporter from Foshan
The old man is squatting, and his ambition is a thousand miles; On December 22, 2008, Foshan Lighting Chairman Zhong Xincai served as the general manager again, and once again came back to the mountain to focus on Foshan Lighting. His behavior, which stood up in a macroeconomically unoptimistic environment, showed the bloodiness of a warrior and showed an entrepreneurial spirit. As a veteran of Foshan Lighting, who has gone through countless spring and autumn, Zhong Xincai’s tenacity, this brave and fearless spirit is worthy of our respect.
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Zhong Xincai has a firm vision and sees the bright future of Foshan Lighting from the crisis.
The financial tsunami in 2008 has blown down many small enterprises that cannot withstand the wind and waves. However, Foshan Lighting still adheres to its steady pace, keeps up with the trend of the times, grasps the market opportunity, and embarks on the road of reform. As the helm of Foshan Lighting, the wise old man Zhong Xincai took the insight into the eyes of the world, and braved the momentum of the forward, driving the ship of Foshan lighting and breaking the waves.
I hope that the financial turmoil will come even longer and longer.
Reporter: In the face of this year's industry environment, how do you view the impact of the financial tsunami on the lighting industry?
Chairman Zhong Xincai (hereinafter referred to as Zhong Dong): This financial turmoil has taught consumers around the world how to cherish money and use good money. Why the US market is so weak now is that the financial turmoil has fueled the weakness of the US market, but the most important thing is to reshape the American concept of consumption. In the past, Americans were spending ahead of time, and everyone swiped their cards without paying cash. Buying a fluorescent tube is a box, a box of 25; buy a light bulb and buy a small pack of 10, put it home in the car, because they used to make money easily, in the future. But this financial turmoil has caused many banks to close down, the government is also saving banks, and banks are not issuing credit cards. Now, the American people go to the supermarket, such as Wal-Mart, to buy fluorescent lamps, which are bought in two places. The light bulbs are bought in two places, and they are no longer bought in the same box as before. So the total demand has decreased, and I estimate that it will take 2-3 years to pick up. We have a customer in Europe, even if a product is not purchased now, the inventory has to be sold for 12 months to sell, it is conceivable, what is his previous inventory.
Reporter: What did the financial tsunami bring to Foshan Lighting?
Zhong Dong: China has also been greatly affected by the financial crisis that swept the world. Therefore, we have opened a "factory bankruptcy" column in all the dining halls of the factory, on the wall newspapers of the workshops, and in the company's internal magazines. All the employees of the education company must have a sense of crisis, cherish the work, and cherish the work. At the same time, in order to cope with this financial turmoil, in the face of this situation, as the chairman of the board should start from me, take the lead in reducing the annual salary, take the lead in doing their own work. Some investors said: Your Foshan lighting profits are also very good, the market is also good, why do you reduce your annual salary? I think this is an attitude.
Foshan Lighting has come to the present day through everyone's support and its own efforts. We have been developing step by step. This financial turmoil is also the best development opportunity for us in Foshan Lighting. We hope that this financial turmoil will be blown up for a longer period of time, so that the people of the world will let the world’s leaders take a cold shower to clear their minds and how to do a good job in a country. Foshan Lighting is a listed company. When the market situation was good in the early stage and there were business opportunities everywhere, Foshan Lighting did not go with this big trend, did not invest across industries, or immersed in the light source. Therefore, investors are very touched, saying that Foshan lighting is more conservative. The company's shareholder meeting, news media, and investors all asked me: Why is the situation so good that you don't expand? You have 10 billion in cash in the bank, why not desperately expand? I answer investors, and enterprises must expand. The premise is that after the expansion of the enterprise, management must keep up and the technical forces must keep up. If we expand desperately, but the quality and management can't keep up, the cost will not come down. Even if we have the market, we will not be able to grasp it. In the end, investors will suffer losses. We don't want to do this. Therefore, when many people engaged in real estate and financial constraints in 1996 and 1997, we did not engage in real estate. I lent the money to the bank at an annual interest rate of 20%. Finally, the China Securities Regulatory Commission came to investigate and said that this would not work, and finally returned at an annual interest rate of 8%.
Practice has proved that the stable operation of Foshan Lighting has been successful for so many years. The financial turmoil also proved that the stable operation of Foshan Lighting was successful. We still have nearly one billion in cash in the bank. We have a market to have cash, so why do I hope that the financial turmoil will be more intense and the time will be longer, because this is a good development opportunity for us. Many companies now have no market and no money, and they can't live anymore, so they have closed down and fled, but Foshan Lighting just took advantage of this opportunity to develop.
Buddha Photo 2009 Plan
Lamp light source is two-pronged
Reporter: Foshan Lighting has set up 35 lighting operation centers in the country. What plans does the company have for lighting projects?
Zhong Dong: In 2009, the development of lamps was an important part of Foshan Lighting. We have set up 35 lighting operation centers across the country, and we must promote the marketing of lamps. Of course, the field of light sources will also develop at the same time.
The current situation is very beneficial to the development of Foshan Lighting. Because some small businesses have closed down, and some export companies have been blocked from exporting to domestic sales, but no brand two has no network, and the manufacturing cost is also high, so this is the best time for Foshan lighting expansion. We want to expand the luminaires and light sources, and the two will be carried out simultaneously and comprehensively. The sales plan for 2009 will increase by more than 20%. In the aspect of lighting manufacturing, we will cooperate with professional lighting manufacturers to develop lamps. We also don't want to go to the lighting manufacturers in Guzhen, Shunde and Nanhai to buy goods. We must rely on ourselves and cooperate with manufacturers and distributors to engage in marketing and share.
Lighting sales, but also with large distributors to invest in the establishment of a joint-stock company to jointly establish a sales network of lamps. We hope to bring the light source and lamps of Foshan Lighting to the market together with dealers and lighting operators, especially in the vast rural areas.
Depreciate the purchase of raw materials
Reporter: Foshan Lighting has always enhanced its competitive advantage with good cost control. What measures will Foshan Lighting take in this regard in the next few years?
Zhong Dong: In the future market, we will adopt stability and consolidate costs to increase our competitiveness. In the past, the cost of a lamp made of aluminum was one thousand and eight percent. Now the price of aluminum material is about 10,000 yuan or so. According to this price, the cost of the lamp head after the price reduction is about 8.5 percent. It used to reduce nearly four cents. In order to stabilize this cost price, we will purchase one thousand tons of aluminum materials at one time. One thousand aluminum materials need more than 10 million yuan in cash, and more than 10 million yuan in cash is not a problem for Foshan Lighting. Even if the price of aluminum materials increases in the future, our products will not follow the price increase due to the price increase of aluminum materials.
In addition, we will take advantage of the current decline in raw material prices, purchase more raw materials, and scale up to reduce costs. In 2009, Foshan Lighting will invest more than 90 million yuan to introduce 4 T8 and T5 automatic production lines, and purchase related equipment, which can create more profits and is completely worthy of Foshan Lighting. For us, it is a big investment and a big output. As our cost is reduced, the development opportunity will be even greater.
Consolidate Jiangshan's external expansion
Reporter: What are the development strategies of Foshan Lighting in the next few years?
Zhong Dong: Foshan Lighting currently has 35 T8 fluorescent lamp production lines and 5 T5 production lines. In 2009, it will invest more than 90 million yuan to introduce 4 T8 and T5 automatic production lines. The goal is to develop the production scale of T5 to an annual output. More than 100 million. Competition in the domestic market is not really a real skill. After the cost is reduced, we will increase our product exports. The focus of sales will not only be on the domestic market, but also increase sales in foreign markets. It will be internationally associated with Osram, Philips and other international companies. Brand competition, I believe there will be such a day, because we have the lowest cost and the cheapest price.
In mid-December 2008, I led a team to South Korea and South Korea's Samsung to discuss the joint investment in LED projects, and jointly invested with domestic lighting companies to set up an LED lighting company; in addition, we are also negotiating cooperation with Osram and US companies. , production of LED chips. However, all of the things we have done are steadily and steadily, and we are working hard to make quality, cost and efficiency work well to form our core competitiveness.
Reporter: In the face of increasingly fierce industry competition in the future, what expectations do you have for the development of Foshan Lighting?
Zhong Dong: The strength of Foshan Lighting will become stronger and stronger. For enterprises, when the situation is good, don't develop blindly. When the situation is not good, you should calmly deal with it, so that the company can withstand the wind and rain and can withstand the financial crisis. The facts also prove that the development of Foshan Lighting in the past few years has been successful. We must make Foshan Lighting a century-old enterprise.
Reporter: Thanks to Zhong Dong for accepting this newspaper's interview, I wish Foshan Lighting's tomorrow is even better!
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The old man is squatting, and his ambition is a thousand miles; On December 22, 2008, Foshan Lighting Chairman Zhong Xincai served as the general manager again, and once again came back to the mountain to focus on Foshan Lighting. His behavior, which stood up in a macroeconomically unoptimistic environment, showed the bloodiness of a warrior and showed an entrepreneurial spirit. As a veteran of Foshan Lighting, who has gone through countless spring and autumn, Zhong Xincai’s tenacity, this brave and fearless spirit is worthy of our respect.
Zhong Xincai has a firm vision and sees the bright future of Foshan Lighting from the crisis.
The financial tsunami in 2008 has blown down many small enterprises that cannot withstand the wind and waves. However, Foshan Lighting still adheres to its steady pace, keeps up with the trend of the times, grasps the market opportunity, and embarks on the road of reform. As the helm of Foshan Lighting, the wise old man Zhong Xincai took the insight into the eyes of the world, and braved the momentum of the forward, driving the ship of Foshan lighting and breaking the waves.
I hope that the financial turmoil will come even longer and longer.
Reporter: In the face of this year's industry environment, how do you view the impact of the financial tsunami on the lighting industry?
Chairman Zhong Xincai (hereinafter referred to as Zhong Dong): This financial turmoil has taught consumers around the world how to cherish money and use good money. Why the US market is so weak now is that the financial turmoil has fueled the weakness of the US market, but the most important thing is to reshape the American concept of consumption. In the past, Americans were spending ahead of time, and everyone swiped their cards without paying cash. Buying a fluorescent tube is a box, a box of 25; buy a light bulb and buy a small pack of 10, put it home in the car, because they used to make money easily, in the future. But this financial turmoil has caused many banks to close down, the government is also saving banks, and banks are not issuing credit cards. Now, the American people go to the supermarket, such as Wal-Mart, to buy fluorescent lamps, which are bought in two places. The light bulbs are bought in two places, and they are no longer bought in the same box as before. So the total demand has decreased, and I estimate that it will take 2-3 years to pick up. We have a customer in Europe, even if a product is not purchased now, the inventory has to be sold for 12 months to sell, it is conceivable, what is his previous inventory.
Reporter: What did the financial tsunami bring to Foshan Lighting?
Zhong Dong: China has also been greatly affected by the financial crisis that swept the world. Therefore, we have opened a "factory bankruptcy" column in all the dining halls of the factory, on the wall newspapers of the workshops, and in the company's internal magazines. All the employees of the education company must have a sense of crisis, cherish the work, and cherish the work. At the same time, in order to cope with this financial turmoil, in the face of this situation, as the chairman of the board should start from me, take the lead in reducing the annual salary, take the lead in doing their own work. Some investors said: Your Foshan lighting profits are also very good, the market is also good, why do you reduce your annual salary? I think this is an attitude.
Foshan Lighting has come to the present day through everyone's support and its own efforts. We have been developing step by step. This financial turmoil is also the best development opportunity for us in Foshan Lighting. We hope that this financial turmoil will be blown up for a longer period of time, so that the people of the world will let the world’s leaders take a cold shower to clear their minds and how to do a good job in a country. Foshan Lighting is a listed company. When the market situation was good in the early stage and there were business opportunities everywhere, Foshan Lighting did not go with this big trend, did not invest across industries, or immersed in the light source. Therefore, investors are very touched, saying that Foshan lighting is more conservative. The company's shareholder meeting, news media, and investors all asked me: Why is the situation so good that you don't expand? You have 10 billion in cash in the bank, why not desperately expand? I answer investors, and enterprises must expand. The premise is that after the expansion of the enterprise, management must keep up and the technical forces must keep up. If we expand desperately, but the quality and management can't keep up, the cost will not come down. Even if we have the market, we will not be able to grasp it. In the end, investors will suffer losses. We don't want to do this. Therefore, when many people engaged in real estate and financial constraints in 1996 and 1997, we did not engage in real estate. I lent the money to the bank at an annual interest rate of 20%. Finally, the China Securities Regulatory Commission came to investigate and said that this would not work, and finally returned at an annual interest rate of 8%.
Practice has proved that the stable operation of Foshan Lighting has been successful for so many years. The financial turmoil also proved that the stable operation of Foshan Lighting was successful. We still have nearly one billion in cash in the bank. We have a market to have cash, so why do I hope that the financial turmoil will be more intense and the time will be longer, because this is a good development opportunity for us. Many companies now have no market and no money, and they can't live anymore, so they have closed down and fled, but Foshan Lighting just took advantage of this opportunity to develop.
Buddha Photo 2009 Plan
Lamp light source is two-pronged
Reporter: Foshan Lighting has set up 35 lighting operation centers in the country. What plans does the company have for lighting projects?
Zhong Dong: In 2009, the development of lamps was an important part of Foshan Lighting. We have set up 35 lighting operation centers across the country, and we must promote the marketing of lamps. Of course, the field of light sources will also develop at the same time.
The current situation is very beneficial to the development of Foshan Lighting. Because some small businesses have closed down, and some export companies have been blocked from exporting to domestic sales, but no brand two has no network, and the manufacturing cost is also high, so this is the best time for Foshan lighting expansion. We want to expand the luminaires and light sources, and the two will be carried out simultaneously and comprehensively. The sales plan for 2009 will increase by more than 20%. In the aspect of lighting manufacturing, we will cooperate with professional lighting manufacturers to develop lamps. We also don't want to go to the lighting manufacturers in Guzhen, Shunde and Nanhai to buy goods. We must rely on ourselves and cooperate with manufacturers and distributors to engage in marketing and share.
Lighting sales, but also with large distributors to invest in the establishment of a joint-stock company to jointly establish a sales network of lamps. We hope to bring the light source and lamps of Foshan Lighting to the market together with dealers and lighting operators, especially in the vast rural areas.
Depreciate the purchase of raw materials
Reporter: Foshan Lighting has always enhanced its competitive advantage with good cost control. What measures will Foshan Lighting take in this regard in the next few years?
Zhong Dong: In the future market, we will adopt stability and consolidate costs to increase our competitiveness. In the past, the cost of a lamp made of aluminum was one thousand and eight percent. Now the price of aluminum material is about 10,000 yuan or so. According to this price, the cost of the lamp head after the price reduction is about 8.5 percent. It used to reduce nearly four cents. In order to stabilize this cost price, we will purchase one thousand tons of aluminum materials at one time. One thousand aluminum materials need more than 10 million yuan in cash, and more than 10 million yuan in cash is not a problem for Foshan Lighting. Even if the price of aluminum materials increases in the future, our products will not follow the price increase due to the price increase of aluminum materials.
In addition, we will take advantage of the current decline in raw material prices, purchase more raw materials, and scale up to reduce costs. In 2009, Foshan Lighting will invest more than 90 million yuan to introduce 4 T8 and T5 automatic production lines, and purchase related equipment, which can create more profits and is completely worthy of Foshan Lighting. For us, it is a big investment and a big output. As our cost is reduced, the development opportunity will be even greater.
Consolidate Jiangshan's external expansion
Reporter: What are the development strategies of Foshan Lighting in the next few years?
Zhong Dong: Foshan Lighting currently has 35 T8 fluorescent lamp production lines and 5 T5 production lines. In 2009, it will invest more than 90 million yuan to introduce 4 T8 and T5 automatic production lines. The goal is to develop the production scale of T5 to an annual output. More than 100 million. Competition in the domestic market is not really a real skill. After the cost is reduced, we will increase our product exports. The focus of sales will not only be on the domestic market, but also increase sales in foreign markets. It will be internationally associated with Osram, Philips and other international companies. Brand competition, I believe there will be such a day, because we have the lowest cost and the cheapest price.
In mid-December 2008, I led a team to South Korea and South Korea's Samsung to discuss the joint investment in LED projects, and jointly invested with domestic lighting companies to set up an LED lighting company; in addition, we are also negotiating cooperation with Osram and US companies. , production of LED chips. However, all of the things we have done are steadily and steadily, and we are working hard to make quality, cost and efficiency work well to form our core competitiveness.
Reporter: In the face of increasingly fierce industry competition in the future, what expectations do you have for the development of Foshan Lighting?
Zhong Dong: The strength of Foshan Lighting will become stronger and stronger. For enterprises, when the situation is good, don't develop blindly. When the situation is not good, you should calmly deal with it, so that the company can withstand the wind and rain and can withstand the financial crisis. The facts also prove that the development of Foshan Lighting in the past few years has been successful. We must make Foshan Lighting a century-old enterprise.
Reporter: Thanks to Zhong Dong for accepting this newspaper's interview, I wish Foshan Lighting's tomorrow is even better!
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