The phrase "The sea is still open, but the promise will never change" in "Appreciating Cui Wulang" is the best interpretation of honesty. It makes the world honest and trustworthy, and at the same time lets people know the tenacity of honest people, which is worth learning in this world.
Throughout the ages, many people have made great achievements based on honesty. Of course, some people keep their promises for the sake of their words, which leads to bad results and career collapse. Li, chairman of Xinyi Group, is such an example. A long time ago, Xinyi Group claimed that it would never go bankrupt, but in the end it fell into a debt quagmire and filed for bankruptcy. What happened?
1. Development of Xinyi Group
In fact, the final collapse of Xinyi Group was not because of internal problems, but because the chairman insisted on keeping his promise and dragged down the thriving Xinyi Group. In 1980s, China's economic development just started. In order to stimulate economic vitality, the state has promulgated many laws and regulations conducive to economic development to help small and medium-sized companies in the country start, and Xinyi Group was established at this time.
Xinyi Group has developed into one of the top 100 enterprises in China in just over ten years by controlling the market direction, and has occupied its own place in the market with various auto parts. With the high-tech research and the strong support of the state, Xinyi Group quickly became a leading enterprise and began to lead the development of the whole industry. Through years of efforts, Xinyi Group has more than 70 production lines and can produce more than 50 kinds of parts, covering almost all aspects of auto parts.
The high quality and low price of auto parts not only make Xinyi Group earn a lot of money, but also help Xinyi Group earn a good reputation. All this is due to Li, the chairman of Xinyi Group.
2. "Xinyi Group will never fail"
As the chairman of the top 100 enterprises in China at that time, Li's ability was far superior. He not only has a unique vision, but also has a long-term vision. He is not attracted by the small profits in front of him, but pays attention to more interests in the future. In dealing with affairs, the decision-making is resolute, decisive and clean, and the advantages and disadvantages are well done. It is also because of Li's efforts for many years that Xinyi Group can grow into a towering tree now.
After the success of Xinyi Group, Li proudly said in public: Xinyi Group will never go bankrupt! It is such a sentence that laid the groundwork for his future failure.
At the beginning of the 20th century, the real estate industry suddenly swept the country and became the new favorite of many investors. Li, who always likes to stabilize the status quo, is also attracted by huge interests.
The steady development of Xinyi Group gave Li great confidence and made his wish to by going up one flight of stairs. After Li put forward the idea of entering the real estate field to the top management, although everyone didn't know what the purpose was and what the consequences would be, because of Li's strong self-confidence, everyone agreed to the proposal without hesitation. With the unanimous approval of the company's top management, Li quickly turned his decision to move to the real estate field into practical action.
3. Fall into debt quagmire due to commitment.
At the end of 2000, Huaxin Real Estate Company was formally established. Huaxin Real Estate, a small company, quickly attracted the attention of many bosses in the industry by the name of Xinyi Group, and a large number of investors flocked to join Li and share a piece of the real estate field. At first, due to the reputation of Xinyi Group for many years, the sales of Huaxin Real Estate were extremely high. Everyone believes that this powerful and reputable big company can gain a foothold in the muddy water of real estate, and so does Li.
Although it has just come out, Huaxin Real Estate has made a lot of money for Li, but despite the glory of Xinyi Group, Huaxin Real Estate is still a new company and a newcomer in the real estate field. Huaxin real estate, which has never known many details of the industry, quickly calmed down after making a big March and began to slowly explore the details of the industry. The slow development speed gradually disappointed many investors who followed suit.
Because it was too hasty to enter the real estate field, many things began to improve after the company was established. Therefore, Huaxin's listing for five years not only failed to help Li make a profit, but also owed about 300 million foreign debts. At that time, the debt of 300 million was enough to crush a big company. If you let go in time, you can rely on the income of Xinyi Group to stop the loss for him, but Li refused.
Li always remembers what he said before, "Xinyi Group will never go bankrupt". He feels that if Huaxin Real Estate goes bankrupt, the reputation he has accumulated for many years will be gone, and then he will become a "person who has no trust and doesn't know what he can do" in The Analects of Confucius.
Although Li has been trying to support Huaxin Group with the funds of Xinyi Group, the loss is like a leaking rice bag, and rice grains spill out, no matter how blocked. After only a few short years, Xinyi Group also shouldered a total debt of 800 million yuan for Huaxin's capital flow. At this time, in the face of the decline of Xinyi Group and Huaxin Real Estate, Li could never return to heaven.
On 20 19, Li finally failed under the pressure of debt and applied to the bank for bankruptcy. He, the once brilliant chairman, also paid the due price for his persistence. From the success of the auto parts industry, to the loss in the real estate sector, and then to the failure of going its own way, this change of mentality may only be known to Li himself. The story ends here, so what do you want to say about Xinyi Group, which once declared that it would never go bankrupt, but ended up in a debt quagmire and filed for bankruptcy? Welcome to leave a message for discussion!