Chundu's original Chundu Group

Chundu Group, formerly known as Luoyang Meat Joint Factory, mainly engaged in pig purchase and slaughter. Under the decisive decision of Gao Lai, the person in charge of the enterprise,1August, 987, the first ham sausage named "Chundu" in China was born here, and it was quickly favored by the market. Sales soared from the initial 200 million yuan to more than 2 billion yuan, with an annual profit of more than 200 million yuan. Sturm und drang, the capital of spring, promoted the rapid rise of the whole sausage industry in China, and quickly formed a strong industrial group advantage.

Perhaps success came too easily, and the operators of Chundu began to have a fever. Local leaders also asked Chundu to be "bigger and stronger" as soon as possible, which played a role in fueling the situation. As a result, many local tanneries, beverage factories, pharmaceutical factories, timber factories and other loss-making enterprises that are heavily in debt and have nothing to do with meat processing are all under the name of Chundu. Since 1988, Chundu Group has successively merged 1 1 Luoyang Food Company and other enterprises, and wholly acquired six Zhengzhou Qunkang pharmaceutical factories. At the same time, it has successively participated in or controlled 24 enterprises including Henan Sida Science and Technology Group, so that the number of employees in the group quickly broke through 1000. With the full support of financial institutions, hundreds of millions of yuan of funds were dispersed to these enterprises by Chundu like pepper noodles.

Through several years of expansion, Chundu's assets have increased nearly six times every year, from 39.5 million yuan in 1987 to 2.969 billion yuan. However, the expansion not only did not bring much benefit to Chundu, but also brought a heavy burden to enterprises. Due to the long front line, more than half of the 17 enterprises acquired by Chundu lost money, and nearly half closed down and stopped production; The huge investment of more than 20 companies holding shares also went.

Simple and extensive management, "fortune teller" acts as a "think tank"

In spring, I made my fortune by sausage, but under the diversified strategy, this housekeeping skill has been neglected. The advantages of talents, technology and equipment are obvious, and the slaughter link, which is vital to the enterprise, was eliminated by Chundu to raw material suppliers, and its main business shrank sharply. In order to win the price competition, Chundu actually reduced the production cost by lowering the product quality, and the meat content once dropped from 85% to 15%, so that Chundu employees nicknamed their ham sausage "noodle stick". Chundu soon paid a heavy price for this, with its sales plummeting and its market share plummeting from 70% at its peak to less than 10%.

The huge capital black hole and the pendulum of the rich in Chundu are even more surprising. The company spent 30 million yuan to buy the Revolving Palace Hotel, which is far away from the production area. As an office space, it also equipped special cars for various departments and middle-level cadres. Chundu cooperated with a New Zealand company in a tourism project, and a white note smashed $70,000. As a result, the project was not completed and the money was gone. Invested more than 2 million yuan in foreign pharmaceutical factories, but the other party did not forget, but Chundu's account could not be found.

Chundu operators once strongly realized the importance of talents, and once issued a call to the society: "As long as they are college students, no matter what they study, they should!" Some college students attracted by the cause of Chundu have come to defected. At one time, there were more than 2,000 college students and graduate students. But these graduate students and college students, as well as temporary workers in Dachuan, were assigned to the workshop to pull carts, do rough work, kill pigs and sell meat.

What is particularly absurd is that, in order to make up for the defects in management ability, the decision-makers in Chundu, under the introduction of some consultants, have found a group of "fortune tellers" from all over the country as think tanks to "make suggestions" and give directions. According to reports, in Chundu Group, from personnel appointment and dismissal, investment decision-making, to the direction of leaders' business trips and the direction of office doors, "masters" will see good or bad. A "fortune teller" visited Chundu factory and said that one gate of Chundu was easy to block the financial road, so another one should be built. A new gate will be built in the factory soon, and hundreds of thousands more will be given to the doorman every year. There is also a "master" who confuses Chundu leaders with lies such as "the country is moving its capital" in order to make Chundu support its business somewhere. 1997, after the momentum of Chundu landslide was revealed, even all middle-level and above cadres were arranged to listen to the "ideas" of the masters collectively. "reorganization" fancy decoration "investment hunger" is difficult to fill

Chundu tried from directional fund-raising to joint-stock reform to Sino-foreign joint venture, from establishing enterprise groups to establishing parent-subsidiary system, from asset reorganization to selecting some assets of group companies for reorganization and listing, but it still failed to prevent them from entering difficulties.

A leader of Luoyang Economic and Trade Commission hit the nail on the head: Chundu invested and expanded indiscriminately, and fancy decoration was reformed in the final analysis to satisfy its "investment thirst". According to estimates, in recent years, Chundu has raised more than 2 billion yuan through various channels, and the loans in five local state-owned commercial banks alone exceeded 654.38+0 billion yuan.

1In August, 1993, Chundu established Chundu Group Co., Ltd. on the basis of the original Luoyang Meat Complex, and raised 654.38 billion legal person shares from 432 shareholders, raising nearly 200 million yuan. Chundu used the money for diversified development. At first, it invested 65.438+million yuan to hold 8 enterprises, and later invested 65.438+05 billion yuan to hold 65.438+06 enterprises. As a result, it became a burden, and Chundu missed this great opportunity for development.

1In September, 1994, Chundu established a joint venture with five foreign investors, including Baoxing Investment Company of the United States, attracting foreign investment equivalent to RMB 290 million. However, after the joint venture, the foreign party found the problem of Chundu and found a reason to withdraw capital in 1997. According to the agreement, plus principal and interest plus dividends, Chundu lost more than 654.38 billion yuan at a time.

From 65438 to 0996, Chundu carried out new restructuring and asset reorganization on the basis of the original shareholding system. Chundu Co., Ltd., a wholly state-owned company, was separated from the joint-stock company as the parent company, and then 14 subsidiary was established. Tired of restructuring, it takes up a lot of manpower and material resources, and the technological transformation and new projects that bloom everywhere either stagnate or die. From the "Seventh Five-Year Plan" to the "Ninth Five-Year Plan", the investment in technological transformation of Chundu reached 728 million yuan, and there was basically no income.

1998 12, Chundu Group, which was already suffering from heavy losses, decided to select some assets of the group company for reorganization and listing, raising 424 million yuan. Chundu Group, a major shareholder, and Chundu Food Co., Ltd., a listed company, are actually a set of people and two brands, with no separation of personnel, assets and finance. In the third month after listing, Chundu Group took 654.38+0.9 billion yuan from listed companies to repay other debts. Since then, the listed companies have successively paid for several funds, totaling 330 million yuan, accounting for 80% of the total funds raised by listed companies, which led to the 654.38+0 investment projects promised by listed companies to the public becoming empty talk.

In May, 2000, Zhengzhou Special Office of China Securities Regulatory Commission put forward rectification requirements for Chundu shares, limiting it to solve the problem of capital occupation of major shareholders before the end of 2000. At the same time, the relevant leading bodies were informed of the problems existing in Chundu's mechanism transformation, the use of raised funds, poor asset quality and insufficient disclosure of major information. At this point, Chundu has been in trouble.

The lesson that the spring capital declines from prosperity is painful and thought-provoking. Chundu Company is actively preparing for the Chundu Food Industrial Park project while resuming its growth. Through the high starting point and high standard food industrial park project, the company will develop by leaps and bounds. The Chundu Food Industrial Park project will build a world-advanced modern slaughter workshop, segmentation workshop, cold storage, by-product intensive processing workshop, high and low temperature meat processing workshop, frozen prepared food and nutritious convenience food workshop, biochemical medicine intermediate workshop and other supporting facilities. The total investment of the project is 600 million yuan, which is divided into three phases: 20 10. The first phase of Luoyang Chundu Food Industrial Park started construction (i.e. pig slaughtering, split production line, deep processing of cold meat, frozen conditioning food processing and other projects). The first phase of the project has a total investment of more than 250 million yuan, and the construction is being stepped up to ensure that it will be put into production before the end of 20 10.