Nan Cunhui: Legend of the King of Low Voltage Appliances

Recalling Chint's entrepreneurial journey, Nan Cunhui expressed with emotion that Zheng Ching's development is the first to listen to the Central Government, the second is to look at the international community, and the third is to do it. Nan Cunhui began to repair shoes from the age of 13 to 44 years old today, and he has completed the Chint Group with tens of thousands of employees. He has gone through 30 years of 'studying and fighting' to make a living - entrepreneurship - the road to development and growth, witnessed the process of reform and development, and tasted the sweetness of reform and opening up.

Now in Wenzhou, Nan Cunhui's name can be said to have a high probability of random checks. Not only Wenzhou citizens know Nan Cunhui, even central leaders to inspect private enterprises in Wenzhou and inspect Wenzhou's private economy, they have to look at private companies Chint Group. Look, listen to the positive founder and chairman Nan Chinghui of Zhengtai Group on behalf of the private enterprises in Wenzhou. In Wenzhou, it can be said that few people do not admire Nan Cunhui's entrepreneurial spirit, entrepreneurial thinking, entrepreneurial accomplishments, and his hard work and modesty. It can be said that he is a Wenzhouese who is rich in Wenzhou spirit. So how did he grow so healthy and have such achievements? Nan Cunhui frankly said frankly: 'Some people think that I am a legendary person who has grown from a shoemaker to a Chinese king of low-voltage electrical appliances. There is also a legendary story. But there is no legend for this shoemaker. In order to speak legend, it was accompanied by reform and opening up. It is not that I have achieved this legend, but that reform and opening up have brought about this legend. '

There was nothing wrong with getting rich in labor. In 1977, Nan Cunhui, who was born in the rural village of Yueqing County in Wenzhou and was only 13 years old, was studying in middle school. Because his father was accidentally injured in production and labor, his family was in difficulties and forced him to drop out of school at home. A cobbler was made, and then in the street, he repaired shoes with a relative who had a shoe stand.

Nan Cunhui recalled that when he wanted to repair leather shoes, he would be hit hard at that time, and he would often run into 'to fight' (that is, to crack down on speculative office at the time) and he would desperately escape. It will be confiscated, and some believe that these small business hawkers are also speculative, bring you back to lock up, and may not be closed for a few days or even longer to let you out. At that time, there were a number of 'powerful people' who were first to engage in the circulation of commodities (when they were called supply and sales personnel) who were caught in a lot of jail cells. The so-called 'Flying Horse' and 'Flying Pigeon' cards' and other 'brands' that were considered as speculative downturns were sold and sold. There are quite a few members who have been punished.

This was originally seen as a speculative downturn. In fact, it should be said that it is long-distance trafficking. Now, it is talking about businesses and entrepreneurs engaged in the circulation of goods. At that time, people from the bridgehead of Yongjia County in Wenzhou were hitting cotton all over the country to make a living. They found that a large number of state-owned garment enterprises had piled up a large number of surplus buttons and so on, so they fought for cheap goods. He made a sale in the poor mountain valley of his hometown, and became a well-known domestic and foreign button market in the East, known as the 'Oriental Brussels'; Yueqing's bee-keepers ran throughout the country, captured the information, and started buying and selling electrical appliances. Beekeeping raised a 'City of Electrical Appliances in China'; even the Longgang farmers, who were so poor that they traveled all over the country to make a living, were gaining market information and fearlessly cracking down on their family workshops. Since the family industry, the construction has become 'China's first peasant city'. Each of them has come out with a way to get rich. Because poor people change their thinking, they think that there is nothing wrong with getting rich. That is to say, whoever makes money, who can improve life, who is glorious, he is a hero.

With the deepening of reforms and opening up, it was generally considered in the minds of people that buying and selling were shameful. Some even thought that your family was buying and selling, and even your daughter did not marry you. The old-fashioned concept slowly changed. This slogan was put forward: Labor became rich and glorious, guiding labor to become rich.

Nan Cunhui, who repairs shoes, discovered that the small Yueqing Street in the Yueqing Old City, where he works everyday, has the facades on both sides slowly becoming electrical appliance shops and becoming more and more lively. People come and go every day, coming and going in a hurry. He feels that they are very profitable. At that time, he was 16 years old and found out that engaging in electrical appliances may be a little better than repairing shoes, so he decided to lay down his shoes and join the ranks of electrical appliances.

Nan Cunhui said that at the time he was doing an electrical appliance business, he could do it by finding a store. After registering with the Bureau of Industry and Commerce and obtaining a legal status, it then engraves the official seal and seals the contract and runs out of Wenzhou to pick up business, take orders, and find sales. At that time, I felt that the spring breeze of reform and opening up had blown us to us, liberated us from the land and from the countryside, and had the opportunity to travel north and south to find a way to get rich. '

Looking for entrepreneurial routes in difficult and tortuous ways is still exploring the path of reform, it is inevitable to take some detours and pay a certain price. In this process, a lot of things have appeared in the town of Liu City. During the 10 years from 1978 to 1988, Yueqing City had a group of affluent farmers who were driven by huge social changes. They stepped out of the land to start their own businesses. They successively witnessed the admiration of entrepreneurial talents, such as the emergence of a shuttle in Wenzhou. Between Shanghai and Shanghai, sales of screws, business is booming, known as 'Dawang' Liu Dayuan and 'Motor King' Hu Jinlin, 'Coil King' Zheng Xiangqing, 'Catalogue King' Ye Jianhua, 'Miner's Lamp King' Cheng Buqing, 'Contract King' Li Fangping,' Dawang 'Zheng Yuanzhong and Wang Dawei', such as Wang Maijun, used to be a group of 'kings' who became the first people in Wenzhou and even the country to taste the sweetness of the market economy. At the same time, people also have fierce debates over them, saying that they are engaged in capitalism. Later, this group of people suffered serious setbacks. In January 1982, the Central Government issued an emergency notice to crack down on criminal activities in the economic field. At that time, the Yueqing County Committee classified this “eight kings” commodity economic behavior as a major case to investigate and dealt with and was detained as an important target. 'Motor King' Hu Jinlin was also wanted by the Ministry of Public Security across the country on charges of 'speculative downsizing' and 'serious disruption of the economic order'.

After grabbing the 'eight kings', some entrepreneurs in the city of Liu and even Yueqing have hid themselves and some escaped. At that time, the whole street in the city of Liushi was closed. For some time, people did not dare to do business. At this time, they also scared Nan Cunhui.

The crackdown on this group of people also hit the entire Liuzhou economy, the Yueqing economy, and even Wenzhou's economic development. But what should the people do if they want to live? When he was the secretary of the Wenzhou Municipal Party Committee, he thought about these issues. Later, Wenzhou City resolutely rehabilitated the 'eight kings'. Released the 'eight kings', which has strengthened the courage of a large number of entrepreneurs and made them see the hope of starting a business.

In 1984, Nan Cunhui sprouted the idea of ​​a joint-stock enterprise. He and an old classmate invested 50,000 yuan in total and set up a 'Yueqing County Refinement Switch Factory'. At that time, there were electrical lines on both sides of the old street in the town of Liuzhou, Yueqing. In this environment, they felt that they would not lose money, so they dried up. It is 5 years. Nan Cunhui said that in the middle of this process, they are running products to buy sales, while doing products and exploring the company's development. During this period, not only were they exploring and exploring, but the government was also exploring and summarizing. They thought how to develop the enterprise and how to make this enterprise better. What the government thinks is how to make the people develop in the end. The government itself has no political pressure or political risk. Because of the process of reform, it is inevitable that there is an old concept of shackles.

Nan Cunhui recalls that during this period, they all went to see and learn experience. One thing that was deeply remembered was that at that time, in Liuzhou, there was a company that built a seven-story tall building on a very narrow piece of land. At that time, they thought it was amazing. They thought it was a hero at the time. They were envious of him. They all went. Look. There are also many foreign scholars, experts, including leaders, and the local government also took them there to visit. In his admiration, Nan Cunhui has produced a lot of ideas about how to create wealth and become rich. At the same time, he has realized some of the principles of his own development and learned a lot.

At this time, Liushi people felt that there was some relaxation in the policy and they came to an electric appliance. Nan Cunhui said that at that time, the streets of Liushi were full of electrical appliances, and everything was done from house to house. Rural women could do this appliance. At that time, because the entire people did electrical appliances, they naturally had no product standards, and there was no product quality requirement. , quality standards and product inspections. In the absence of technical conditions, everyone only knew that it would be a good thing to do something like that. At that time, although the government also set up a quality and technical supervision organization, because there were too many products, there was no way to manage it and there was no way to control it. Now. Even the quality of the low-voltage electrical products sold in the city of Liushi had serious quality problems, and the users were reprimanded and had a very bad influence in the country. In 1990, the State Council issued the No. 29 document of the National Office for the quality of low-voltage electrical appliances in Liuqing Town, Yueqing. Immediately after that, the six ministries and commissions of the country formed a joint working group to enter Liuzhou City, and the eight-character party that adopted the “strike, block, divert, and support” was used to rectify the electric appliance industry in Liushi. The initial reorganization had a great impact in the country.

The rectification should be said to have fundamentally changed the situation in the city of Liu, so that Liuzhou City's low-voltage electrical industry has been reborn. Everyone started to set up factories in accordance with the requirements of the state. Those who want to fake are also impossible. That is, from then on, they gradually removed the counterfeit hats of Wenzhou Low Voltage Appliances. Nam Cunhui’s original “pursuit of refinement” was changed from 1990 to two factories. One is the “China-US joint venture Wenzhou Zhengtai Electric Co., Ltd.” after Nam Cunhui’s independence, which is the “Chentai Group’s shareholding”. Limited'.

In 1992, after Deng Xiaoping's southern tour, he awakened the entrepreneurial awareness and entrepreneurial spirit of the entrepreneurs, gave birth to a large number of quality-profitable private enterprises on the scale, and promoted the healthy and rapid development of the low-voltage electrical industry in Liuzhou City. Appliance companies began to pay attention to their own image and reputation. Since 2002, Chint has implemented a mass one-vote veto system. Whoever does not have a good quality control has become a private company that has established an international quality management system in the city of Liuzhou.

In December 1993, Chint's batch of foreign single products was due to be shipped to Greece soon. The shipping schedule was set and most of the products were already packed. At this time, a quality inspector found that the cargo had a problem with the appearance of color and report Nan Cunhui. After Nan Cunhui knew it, he immediately rushed to the scene and the quality engineer believed that according to the usual practice and domestic standards, these products were fully qualified in China. However, Nan Cunhui believes that these products do have quality problems. They immediately decided that 'this batch of goods could not be sent, and all of them were unpacked, and there was no room for negotiation'. As we all know, if we re-examine it all in one way, the original schedule will certainly be delayed. If we cannot ship to Greece before the delivery date requested by the other party, the company will face compensation and the reputation of the company will be affected. However, Nan Cunhui believes that quality is the life of the brand-global brand network. He said that Chint can lose money, but he must not take his own sign. When the shipment was qualified for acceptance and was re-packed, the ship had already passed the time limit. In order not to lose credibility, Nan Cunhui decided to fly by air, but this measure cost 800,000 yuan. But after this 800,000 yuan, it became the priceless spirit of Chint - credibility. By 1993, Chint's annual sales revenue reached more than 50 million yuan, which was the best among private enterprises in Wenzhou at that time. Since 1995, Chint Group has designated May of each year as 'Quality Month'.

Establishing a joint-stock cooperative enterprise group to expand the company's scale and increase its production capacity for the development. In the early 1990s, Nan Cunhui took in his brother, brother-in-law, nephew and some relatives as shareholders of the company. enterprise. In the period of capital accumulation and small-scale expansion, family-owned enterprises have fully utilized the advantages of flexible mechanisms and rapid decision-making. At this time, Chint took advantage of the family-owned equity structure and quickly jumped to a new level.

However, everything has advantages and disadvantages. It solves capital accumulation and small-scale expansion. The congenital inadequacies and disadvantages of family-owned enterprises are gradually exposed. At that time, Nan Cunhui began to realize that to develop a family business, we must first break through the shackles of family-style management. If Chint wants to be stronger and bigger, it must undergo a revolutionary transformation. He begins to wonder how to make full use of this time. The "Chengtai" card that has already been fired has taken measures to weaken the absolute number of family-owned shares, absorb new non-family shareholder decision-making, and take the road of joint capital expansion. Along with this, he successively incorporated 38 local companies into Chint, and in February 1994 established the first enterprise group in the low-voltage electrical industry. Chint's shareholder also suddenly increased to dozens, while his personal equity was reduced to about 40%.

Despite this, Chint still has a strong family color, and the core power of the entire company is still very concentrated. By 1998, there had been some phenomena in which member companies had their own "hold hill as king" and "set as a group". Is it necessary to introduce new non-family shareholders and to break the existing property rights structure? This has become a key consideration for Nan Cunhui. He pondered that the removal of the word 'person' from the enterprise's 'enterprise' word becomes a 'stop' word. The development of a company is based on people, no one, or lack of people's confidence. It will certainly stagnate. Therefore, he believes that companies must attach importance to the introduction and cultivation of various types of talents, respect them, treat them well, and regard them as the company's most valuable asset, and provide them with a platform to show their talents.

Weakened the absolute number of family-owned shares and absorbed new non-family shareholders. The joint-stock reform of the main business of the low-voltage electrical appliances at the core of the family-controlled group company will be brought out. At the same time, the equity distribution system will be implemented within the group and the best capital will be distributed to the best talents in the company. Nan Cunhui lowered his stock to more than 20%. This is a major corporate change that requires great courage.

Through the most profound strategic changes in Chint's development process, Chint achieved the separation of corporate ownership and management rights. Among Chint’s senior management leadership, most of them are no longer family members. The heads of the subsidiaries’ subsidiaries are also almost It is a foreigner. Nan Cunhui deeply understood that the development of the enterprise to this day is inseparable from this change.

Recalling Chint's entrepreneurial journey, Nan Cunhui expressed with emotion that Zheng Ching's development is the first to listen to the Central Government, the second is to look at the international community, and the third is to do it.

Nan Cunhui began to repair shoes from the age of 13 to 44 years old today, and he has completed the Chint Group with tens of thousands of employees. He has gone through 30 years of 'studying and fighting' to make a living - entrepreneurship - the road to development and growth, witnessed the process of reform and development, and tasted the sweetness of reform and opening up. At the same time, he was elected as the chairman of the Ninth, Tenth and Eleventh National People's Congresses, the Standing Committee of the All-China Federation of Industry and Commerce, and the Chairman of the China Federation of Industrial Economics. Recently, he has also been crowned with achievements and awards for outstanding achievements, outstanding awards, contribution awards, and so on in many departments of the state and local governments.