Reborn Entrepreneurial Giant.

Chapter 413 Qiancheng Auto Readjustments

Qiancheng Automobile announced its financial report, selling 7.2 cars and generating sales of 86 billion, which was nearly double the growth rate in 2009. Such results are not bad by any means, but it is a rare loss-making enterprise.

In 2010, the automobile industry's annual growth rate was 32.37%. In 2010, when the entire industry exploded and profits were generally made, Qiancheng Motor's losses were rare and eye-catching.But Quli still gave generous rewards to the marketing department at Qiancheng Motor.

Xia Mingfei from the marketing department received a million-level cash reward, and He Qicheng also received a reward of hundreds of thousands. The production and manufacturing department he was responsible for did everything they could do last year, and did not lose points in quality control.

Only the design department receives high wages and low rewards. This is to encourage them to do their jobs well and not to test the market too much.In the forward automobile research and development process, the market positioning, cost and demand of a car are thought out before development. What the design department has to do is to "make the dream a reality."

However, Qiancheng Motor suffered a huge loss of 3 million, and the company's rewards exceeded [-] million, which still attracted many reports from financial media. "Are there any companies as irresponsible as you? This is not a scam for investors."

There is another negative impact of losing money for two consecutive years. Listed companies will add the letters ST before the A-share code, which means special treatment. The stock price will only increase by 5% every day. From now on, they will have to submit audited financial reports every six months, which will increase the company's Audit costs.

"Is there still such a thing?" Qu Li woke up from a dream, "Is there no way?"

"If you don't let the company make false accounts, it must follow international standards."

"Well, you did the right thing. It takes a long time for a person or a company to build credit, but it takes an instant to destroy credit. We have no way to reduce losses..."

"Qiancheng Auto has too much debt. You borrowed 10 billion in one go. The company's debt ratio has remained high for a long time, and the annual interest expense exceeds [-] million..."

"Made, you were so careless. How come Jumei is fine?"

"You're listed on Nasdaq."

"Is it difficult for listed companies to make profits?" Qu Li still takes chances

"If there is no change, it will be very difficult to make a profit this year..." Financial Director

"Hey! We can only wait for the success or failure of Honor's listing..." Qu Li sighed.

"Is it not affected by the failure of listing?"

"We have just raised US$35 billion, so we are not short of money."

"Then why go public?"

"This is a strategic need to enrich the shareholder structure of the board of directors." Qu Li will fly to Beijin in a few days to form the Honor board of directors, which is another game.

The stocks were treated specially and the decision-making was questioned. Qu Li was very unhappy and fired on Weibo: "A-shares of a bunch of rubbish companies can't accommodate serious companies. What's the matter with two consecutive years of losses? If Jumei hadn't acquired Google Zhongguo, I don’t know how many years we will continue to lose money. We have chosen strategic losses for the sake of corporate development. Who do we feel sorry for?”

"A-shares should severely crack down on listed companies that falsify information disclosure, increase corporate transparency, and leave the rest to investors to choose, rather than in the name of protection..."

Qu Li's bold and fierce speech on Weibo soon aroused widespread discussion, pointing the finger at a certain A-share supervisory committee. Why is Qu Li said to be bold? Because everyone knows that the court is always right. If you see anything wrong Yes, it must be that your structure is not high enough.

There are also people who take the opportunity to fish in troubled waters, stir up trouble and deflect conflicts, which is very depressing.I originally wanted to scold those glamorous products that took advantage of the popularity. Continuous losses are nothing, and positive free cash flow is the last word. However, after looking at Qiancheng Auto, it is typical to make money at a loss and not make ends meet.I had to pretend to be deaf and dumb and pretend nothing happened.

Now that we know that Qiancheng Auto has a problem, we naturally have to find a way to solve it. The term cost reduction and efficiency improvement is suitable for most scenarios, including Qiancheng Auto at this time.

Qu Li is used to being lavish. The salary given to the design department is at the same level as that of SAIC and GAC, but the overall quality of the employees is not necessarily good, which means the money is beyond their capabilities. This does not include the Automotive Research Institute in Beijin, where there is glory. company subsidies.

"The salary must not be reduced." Although Qu Li is unreliable, he is not stupid. Basically, the salary can only be increased but not reduced. In order to make money, 996 can be tolerated, but if you reduce the salary, haha, I will not wait for you anymore.

"How about reducing engine R&D investment?" Financial Director

"The impact of the European debt crisis is getting bigger and bigger. They can't make a fuss over it. Not only can they not surrender, but they can also send more elite soldiers and generals to help us train more people..."

"Then we need to increase investment." The financial director said with a frown.

"In the past, one dollar could buy one bun, but now one dollar can buy two buns. When we are growing, we can eat four. Do you want to eat it or not?"

"..." The financial director wanted to say that he might not have the money to buy buns after eating them now, but people all over the country knew that Honor was a rich man and the most profitable private enterprise in the country.

We continue to discuss where we can and cannot save. It is necessary to reduce management costs. Qiancheng Motors has become a private enterprise, and many idle people have been assigned to Cheetah Motors, so the costs will naturally be reduced a lot.

"We still have to find solutions from the supply chain, including the procurement of advanced equipment..."

Another disadvantage of Qu Li is that he always thinks about "leading" in everything. He wants to build the best automobile factory in the world without considering whether it is suitable or cost-effective.

Lu Tao, He Qicheng and the financial director all objected to him only buying the expensive ones and not the right ones, so let's change it. Qu Li is still very talkative. He believes in numbers. Real financial reports can reflect many problems.

Seeing that the cost of nearly 6 million was reduced, the financial director breathed a sigh of relief and continued to optimize. Qiancheng CS[-] sold well and production capacity increased. As the purchase volume increased, the cost will inevitably decrease. However, if it cannot meet his requirements, there will definitely be consequences for the suppliers. Make some adjustments, including but not limited to using non-Qiancheng and Changfeng supporting companies.

Qu Li also doesn't like companies that produce everything themselves. They say they can control quality and reduce costs, but Toyota has learned from the past. After the next change occurs, it is still unable to transform and falls into the innovator's dilemma. It has nothing to do with supporting companies. , who believes it?

Continuing to use BYD as an example, well, you won’t be criticized.I don’t care, Biyadi sold 21 vehicles in 73 and 22 million vehicles in 186. In the context of the explosion of production capacity, should the number of employees in the entire supply chain be increased by half? Is training urgent?

In fact, BYD will only have 2021 employees in 26, and will exceed 2022 by 50. It is said that it will exceed 65 by the end of the year. With so many newcomers, can they really strictly control quality?With this capability, their manufacturing capabilities and management level definitely reach or even exceed Toyota's level.

He Qicheng has something to say. Qu Li's request is too outrageous. He must ensure quality while lowering the price. How can this be done?

Qu Li was dissatisfied. I didn't ask you to have speed, so why can't you do it? Do you think I learned supply chain management in vain? How do you think Apple and Honor control costs? If it doesn't work, just change people and companies. It's not okay. Then spend money to help supply chain companies improve their competitiveness, including but not limited to information transformation and technology upgrades, assisting them in improving supply chains and purchasing raw materials...

I once again praise the CEO of Apple. Although they are definitely not doing good things, Cook's high requirements and strict standards have improved the comprehensive capabilities of the fruit chain company in an all-round way.