Entering the 4th station of Shenzhen listed company? Foshan Lighting?
I only do light bulbs--Interview with Zhong Xincai, Chairman and General Manager of Foshan Lighting Company
Why have you been on the market for so many years? I think this has something to do with my origins. I came out from the countryside. When I was reading, I still had to sell fried dough sticks. I think the money is not easy. As a general shareholder, their money is not easy. If he does not buy your stock and has a interest income in the bank, how can you give no dividends to others? For me, deduct the money from others. I always have a bad feeling.
In the 11 years since its listing, the company has insisted on cash dividends every year. It has distributed a cash dividend of 1.301 billion yuan to investors, which is 15 million yuan more than the raised funds of 1.286 billion yuan. This listed company is Foshan Electric Lighting Co., Ltd., which is known as the Chinese lamp king. The soul of the company is Zhong Xincai. When the company's board of directors changed in 2003, the news that Zhong Xincai was too old and passed away was once the most concerned topic for Foshan Lighting's domestic and foreign shareholders. Many people even insisted that whether Zhong Xincai is in place would directly affect Foshan Lighting's investment. value.
Zhong Xincai is famous for his stubbornness, wealthkeeping and conservativeness. His distinctive personality has laid a deep sakura on the daily operation and operation of the company.
Tuen Mun and generous entrepreneurs
Reporter: Just now we saw some baskets filled with approval documents in your office. I heard that such baskets have three or four boxes every day. Every time the company spends even one notebook, you have to personally approve it. Now Foshan Lighting has developed into a company with more than 8,000 employees. Will you put too much unnecessary energy into doing this? The office building we are in is also very simple. Your office is compared with many bosses' offices. Even some rude, some people say that you are a trick entrepreneur, what do you think of this evaluation?
Zhong Xincai: It is a must for me to work diligently. I told my finances that I don't want to approve the money. I have to pay for even a penny. Why do I have to approve? First, I understand the fluctuation of raw material prices and the market; second, supervise the procurement process; third, control the company's funds in and out. In the past, we must talk about the spirit of saving one cent. I talked to employees at the company. We are going to talk about saving a dollar now.
Our conference room has not been moved for many years. Why is the office building so luxurious, no need? This is not your private company, it is a listed company.
Reporter: But in the dividend, Foshan Lighting has always been known for its stock market. Why insist on cash dividends, and one point is 11 years?
Zhong Xincai: Why have I been insisting on high-profile distribution for so many years? I think this has something to do with my origins. I came out from the countryside. When I was reading, I still had to sell fried dough sticks. I think the money is not easy. As a general shareholder, their money is not easy. If he does not buy your stock and has a interest income in the bank, how can you give no dividends to others? For me, deduct the money from others. I always feel very bad. I insist that 70% of my net profit is divided every year. That is to say, my own funds are still very good. I have 10 billion in cash in the bank. past.
I remember that at the first general meeting of shareholders after our listing, I talked about two promises. One is to make Foshan Lighting a real listed company. You can’t sell dog meat, you can’t sneak up on stocks, you have to give them a Good return; secondly, I want to develop Foshan Lighting into the largest lighting company in Southeast Asia. These two promises now seem to have basically been realized.
Will not operate capital, refuse to diversify
Reporter: The cash on the Foshan lighting account has remained at 8?D?D1 billion for a long time. Some people think that this is also a waste of resources. Especially in the case that listed companies entrusted with wealth management and the investment real estate market is very common, Foshan Lighting has resisted the temptation in recent years. What do you think of your financial management?
Zhong Xincai: In 1995, how many people told me to invest in real estate; in 1999, many brokerage agencies asked me to do fund custody, promised to give me a 20% return rate, I did not go. Looking back, it is these two markets that have planted a group of companies and even a large number of investors. In addition, when the mergers and acquisitions in the same industry are very popular, I have not blindly went to mergers and acquisitions. If talents and management cannot keep up with all aspects, the more mergers and acquisitions, the more bad assets can be formed. If I say that there is no difference between Foshan Lighting and I, I think because of my personality, I can resist the temptation. This may be a more obvious difference.
Some people say that my capital operation is very poor and does not work. I don't care about him. I just want to do a good job in the main business. I am optimistic about the main project. I will invest a lot. I don't have a good project. I am 60 years old, and it is better to lie in bed than to count the banknotes.
Reporter: Foshan Lighting has now invested in two areas outside the lighting sector - the spark plug project and the video doorbell project. Does this mean that you are beginning to try to diversify?
Zhong Xincai: We are investing in these two projects -- spark plugs and video doorbells. Why do you want to do it? I said that this is two projects that are easy to handle. These two products are the same as our existing sales network, so the cost is very high. low. The two projects plan to invest 60 million, but now only invest a few million, we must have a full market reaction feasibility report for any new project, step by step.
Speaking of diversity, I can say that as long as I am in Foshan, we will not be able to diversify and expand. At present, the sales value of Foshan Lighting is 1 billion yuan, and the global sales value of international brands like Osram and Philips can reach tens of billions of dollars. I am a fraction of the number of people, and there are billions of people around the world. It is a low-value consumables, and our market space is still very big. Besides, the profit is also very good now, so Foshan Lighting is to be a light bulb with one heart and one mind. Why do I have to turn? I think that many of the listed companies that have transferred their main business are some companies that have to be played. Because the main business has not earned, they have to turn.
I often say that the 72 winners are the top picks. I can do a great job in the bulb industry. I have to be the second and third champions. Foshan Lighting must have its own positioning, according to their own ideas.
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