Luo Bing: Fuhai Does What He Is Best At

The nine winding Yellow River flows ceaselessly. It has created the magnificent Yellow River Delta with its natural strength. Here, the scenery is beautiful and the people are outstanding. In this young land, a modern enterprise - Fuhai Group Co., Ltd. came into being. In just a few years, she has sailed into the sea of market economy like a big ship with full sails. Over the years, the Chairman of the Group has led the "Fuhai Team" to implement the diversified business strategy with the business philosophy of "transcending oneself every day and pursuing excellence at all times", achieving leapfrog development, and writing the demeanor of the proud son of the Yellow River with his unwavering pursuit. He is an iron willed Shandong man, honest, simple, resolute and confident; He is also different from ordinary Shandong men. He is mature, wise, steady and advanced. From the start-up capital of 10 million yuan five years ago to the total assets of 286 million yuan now; From simple transportation operation to today's large-scale limited company integrating construction and installation, real estate development, catering and entertainment, property management, cargo transportation and petrochemical industries; From the three subsidiaries at the beginning of its establishment, it has developed into six subsidiaries: petrochemical company, transportation company, construction and installation company, real estate development company, Fuhai catering company, property company, and two joint-stock companies: Shengli Oilfield International Petroleum Development and Investment Co., Ltd. and Dongying Chang'an Hotel Co., Ltd. He is the creator of miracles and a trendsetter in the business world. He is Luo Bing, member of the CPPCC Dongying Municipal Committee and chairman of Dongying Fuhai Industrial Co., Ltd. I never flinched Economic Herald: Hello, Chairman Luo! Not long ago, the company just celebrated its 6th birthday. Looking back on the six years of entrepreneurship, what do you feel most about it? Luo Bing: March 18 this year is the sixth anniversary of Fuhai Company. Looking back on the road the company has gone through in the past 6 years, it is full of passion for entrepreneurship and joy of harvest despite twists and turns. In the past six years, I am most pleased to have a united, hardworking and enterprising team, and a team of hardworking and dedicated employees who dare to fight hard. At the 6th anniversary meeting, I said to all the staff: We can't forget the past! To forget the past is to forget history. The reason why Fuhai Group has developed to today, and why it has today's achievements and scale, is the result of the joint efforts of all operators and all employees. Without the efforts of yesterday, there would be no gains of today; Without the hardships of entrepreneurship in the past, there would be no joy of initial success now. It can be said that every step we have taken, all the setbacks we have experienced and every bit of achievements we have achieved, are the result of everyone's hard work and sweat. All of these will not only be forgotten by ourselves forever, but also become an inexhaustible spiritual source for us to further strive for strength and create the future, and will also become an important resource for us to educate future generations, guide them to work hard and make progress. The cause we created with our own hands has been closely linked with our own future, family happiness and the growth of future generations. Economic Herald: I heard that you were only 25 years old at that time, and you were the youngest middle-level cadre in the district government. It should be said that you had a promising future in politics. How did you consider quitting your job and going to the sea? Luo Bing: At that time, I worked in the government office of Hekou District, holding many positions, such as duty director, car captain, deputy director of the district government guest house, etc. Many people did not expect that I would "go to sea". In the spring of 1992, after Comrade Deng Xiaoping made a speech on his southern tour, I fell into the thinking and choice of whether to start a business in the society or continue to work in the organs. If you go into business, you have neither capital nor technology. If you do it well, you will choke a lot of water; However, if we continue to work in the organ, we will have no problem in raising an official position in the future, and our future life will certainly be smooth and comfortable. However, after repeated weighing, on December 30, 1992, I finally made up my mind to resolutely resign from all positions and join the business despite the strong opposition of my family and the good will of my friends. At that time, my monthly salary was only more than 100 yuan, and there was a child who was just two years old. When I resigned and went to the sea, I had a total of more than 700 yuan of salary and travel expenses saved by my thrift. When I completed registration, paid all kinds of fees, and reached the business license with both hands, I had no money. I really had no room, no land, or even a foothold. Finally, with the care of leaders and the help of friends, I borrowed a room as an office and shared a telephone with others online. In this way, I started my 12 year entrepreneurial journey. In order to raise the funds necessary for business development, when there was no way to borrow money and loan, I bought fertilizer on credit from a township supply and marketing cooperative at a high price, and then sold it to farmers at a low cost. In this way, I raised my first large amount of working capital, and then used my business income to repay the credit of the supply and marketing cooperative. The ups, downs, bitters, and vicissitudes of life that I have experienced during this period cannot be explained in one sentence or two. I used to drive a large truck for nearly 20 hours, and I only had a few dozen yuan for ten days. But I have a beautiful dream in my heart, and I never retreat. After six years of hard work, the company's business has gradually improved. Advance and retreat in order to achieve great success Economic Herald: I noticed in your resume that after going overseas, you also served as the deputy director of Hualian Petrochemical Plant for a period of time. Luo Bing: The situation is like this. In 1997, when I was about to enter Dongying Development Zone to seek new development, the district leaders came to me and asked me to serve as the deputy director of Hualian Petrochemical Plant, mainly responsible for the purchase of raw materials. After thinking about it, I think that one should not only think about making money by oneself, but also solve problems for leaders who have always cared about themselves, and make contributions to the district within their ability. In this way, I found Secretary Tian Zhiying, who was then the Secretary of the Communist Youth League and the former Deputy Director of the Administrative Committee of Dongying Economic Development Zone, and withdrew a piece of land obtained at 50000 yuan per mu in the golden area of Dongcheng and came to work in Hualian Petrochemical Plant. Economic Herald: If you didn't retire at that time, you would be a fortune now. Luo Bing: Now, that piece of land can't be bought for 1 million yuan per mu! Although I said I had suffered a great loss in economy, I have no regrets. After arriving at the chemical plant, I made some contributions to the development of the enterprise. When the chemical plant was short of funds and the raw material funds could not be paid in time, I coordinated to purchase more than 300000 tons of crude oil, which to some extent alleviated the contradiction of insufficient supply of raw materials. In addition, I got a lot of things in this industry that money can't buy, laying the foundation for future entrepreneurship. Economic Herald: In a word, Fuhai Company should have been established at this time. Luo Bing: Yes. On March 18, 1998, as the main sponsor, I registered and established Fuhai Company. At that time, my main purpose was to provide pre production and post production services for chemical plants. Economic Herald: How much was the registered capital at that time? Luo Bing: At the beginning, the company name was Dongying Hekou District Fuhai Co., Ltd., with a registered capital of 10 million yuan; Later, with the need of business development, it was renamed Dongying Fuhai Industrial Co., Ltd., and its registered capital increased to 21 million yuan. At the beginning, we mainly served Hekou Petrochemical Plant. The company's transportation companies, crude oil supply companies and product oil sales companies supported the production and operation of the chemical plant from different aspects. In January 2000, when the product oil market was depressed, the municipal petroleum company withdrew from the operation of the chemical plant. I realized that Fuhai Company was facing a good development opportunity, and finally decided to start the operation of the chemical plant with self raised funds. However, everything is difficult to predict. Just when our business was booming and profitable, the situation of the chemical plant changed significantly, and we were forced to withdraw from the operation of the chemical plant. Economic Herald: The forced withdrawal from the chemical plant is painful for the company, and it is also a big test for you. Luo Bing: In the process of entrepreneurship, some setbacks are inevitable. The key is whether you have perseverance and can survive. Now, on the other hand, it is not necessarily a bad thing to suffer a setback. If there had not been this setback, perhaps the company would not have developed to such a scale! I think the ancients said that "a blessing in disguise is a blessing in disguise". After withdrawing from the chemical plant, we have done a lot of work to strive for survival space. After active efforts, on January 21, 2001, we invested 18 million yuan to participate in the petrochemical plant of Jijun Base, restructured and established a limited liability company, and began to move towards a broader business scope. In 2002, the district government, together with Fuhai Company, actively promoted the integration and reorganization of Hualian Petrochemical Plant and Jijun Base Chemical Company in order to start the production of the chemical plant. After a long period of negotiation, the integration of the two plants could not be completed due to military policies and other factors. Economic Herald: What are the differences between the two sides in the process of integration and reorganization? You finally chose to withdraw from the chemical company in Jijun Base. It's said that it was the peak of returns at that time. It really required some courage and boldness to make such a choice. Luo Bing: At the beginning, according to the opinion of the board of directors, the eastern and western plants were operated separately in April 2003, but separate operation was not the goal of Fuhai Company. Our ultimate goal was the integration of the two plants. After the two plants were operated separately, the atmospheric and vacuum distillation unit and catalytic cracking unit of East Plant were not matched, while the West Plant did not carry out deep processing, which brought huge economic losses to the two plants. When communicating with shareholders of Dongchang, we believe that the advantages of integration outweigh the disadvantages: first, it can realize the matching of Phase I and Phase II devices; The second is the corresponding increase of resource allocation after integration; Third, the integration can resist a certain degree of policy risk. However, the military area command base disagreed with the integration, and instead put forward a new set of 500000 ton atmospheric and vacuum distillation equipment. The new installation of this unit on the existing basis requires an investment of 20 million yuan. If the capital is not expanded, it will inevitably increase the company's liabilities. In addition, raw materials are also a problem. At the same time, because of the national and provincial policies on oil refining enterprises, it also brings huge risks to enterprises. The advantage of the integration of the two plants is the disadvantage of the new 500000 ton atmospheric and vacuum distillation equipment in East Plant. Therefore, we do not agree with the new installation, while the military region base does not agree with the integration of the two plants. If the two parties hold their own opinions, it will undoubtedly bring huge economic losses to many shareholders of East Factory. The military region insists that its capital will not increase or decrease, and the only way is to transfer our equity. We should not influence Fuhai's brand for the sake of an industry, be a sinner of the enterprise for the sake of immediate interests, or infringe upon the interests of East Factory employees for the sake of immediate interests. Finally, after repeated research, the Board of Directors of the Company decided to transfer shares and withdraw from operation to activate our own chemical plant, and to expand our way of existence and development space together with our brothers and sisters who worked together and fought for Hualian Chemical Plant, when the chemical company in Jijun Base has entered the fast lane of development and is in the critical period of making profits. Our idea was strongly supported by the main leaders of the District Party Committee and the District Government, including the Deputy District Chief Zhang Zhaoming, who is in charge of the industry of the whole district. Although we withdrew from East Factory at that time, we still developed from the petrochemical industry and further clarified the leading direction of the petrochemical industry. Economic Herald: We have noticed that in the company's diversified operation pattern, two industrial chains have been formed focusing on chemical industry and real estate development. These two industries are unrelated. Will there be any contradiction between them? Luo Bing: Our company has a principle that we do what we are best at. The short payback period and high return rate of petrochemical and real estate can drive the development of enterprises and realize capital accumulation. At the same time, they are also two industries that we are most familiar with. Real estate development is the second leading industry of the company at present, which drives the construction and installation company and property company to form an industrial chain. In addition, for the future development of the company, we are actively investigating alternative projects. At present, we have preliminarily determined two high-tech projects of Academician Peng of the Chinese Academy of Sciences, which will be packaged and listed for direct financing, which is the next target and direction of our company. Enterprises win by talents and culture Economic Herald: Welch, the former CEO of GE, believes that culture is a competitive factor that can never be replaced. Enterprises rely on talent and culture to win. What do you think of this statement? Luo Bing: I agree with this view. The 21st century should be said to be an era of cultural management and cultural wealth creation. Corporate culture will become the core competitiveness of enterprises and the most important content of enterprise management. Corporate culture is a kind of