We go out and never pursue profit maximization. We didn't make any money in the first three years. As long as we protect our capital, we want our image and brand. We must have a strong sense of law and social responsibility, and fully respect local customs. If you are eager for quick success and seek to maximize profits, as long as the money is shameless, it will be over.
On July 8, 20 14, the Yan Jiehe family unexpectedly held a press conference in Ning, announcing that "Su Taihua Department" has entered the world's top 500, "ranking first among private enterprises in Chinese mainland and second among enterprises in China".
This reminds people of Yan Jiehe's sudden high-profile comeback in 20 1 12 10. He announced in Shanghai that he controlled more than 200 enterprises and had 300,000 employees. Pacific Construction Group has become "the largest private enterprise among domestic non-public enterprises with three first-class general contracting qualifications and a number of first-class professional qualifications for national highway, municipal and water conservancy projects".
From starting a business, making a fortune, falling down, making a comeback, to becoming one of the top 500 in the world, Yan Jiehe's life is enough to make a series.
1960, Yan Jiehe was born in an educational family in Huai 'an, Jiangsu. His first job was as a teacher in Pingqiao Middle School in Huai 'an. 1986, Yan Jiehe was not only fined 18000 yuan, but also lost his job because of his second son, Yan Hao.
At that time, the state-owned Huai 'an Cement Products Factory was recruiting the factory director, and Yan Jiehe rushed to compete for employment, and got the first total score. In the following ten years, Yan Jiehe successively took charge of seven enterprises including Huai 'an Cement Products Factory, Shuanggou Winery and Huai 'an River Diversion Construction Engineering Co., Ltd., all of which turned losses into profits.
From 65438 to 0995, Yan Jiehe started his maritime career and founded Pacific Architecture Group. The first project he took over was Suqian Municipal Government Avenue. Since 2002, Yan Jiehe began to buy state-owned enterprises on a large scale. It is said that 75 enterprises were bought by him that year. In 2004, he was listed on Hurun's China Rich List.
At the same time, the media questioned Yan Jiehe's empty gloves and white wolves, which led to the loss of state-owned assets. On June 26th, 2005, 10, Yan Jiehe Rubik's Cube, 2/kloc-0, a report in Century Business Herald, pushed him to the forefront. "At that time, our capital chain was really broken and the bank wouldn't give me a loan. I was the defendant for the first time. " Yan Jiehe admits that many of his houses have been sealed up and access to high-end entertainment venues has been restricted. In 2007, he was forced to resign as chairman of the board of directors.
Although it has now reached the world-class list, Yan Jiehe and his family business have not erased that mysterious color. How much wealth does Yan Jiehe have? How are its more than 200 enterprises distributed? This is still a mystery, because he said he couldn't figure it out. He doesn't want to disclose his property. "I am a private enterprise, so I must remain private." The company he controls does not go public because it is "transparent as soon as it goes public".
People don't know the source of his funds, because the information and data he provides will "fight". 20 12 12 in an exclusive interview with the reporter of 2 1 2 Century Business Herald, Yan Jiehe said that 25% of the Lanzhou city-building project that caused external doubts came from the government pension funds of Dubai and Tatar. In the 1990s, these two funds volunteered to cooperate with the Pacific Ocean.
"Now they lend me more money, but I am also bigger, so their proportion is smaller." In this interview, Yan Jiehe said, "Because of the turmoil in 2006, our international funds were less, and now the funds are basically on our own."
More than two years ago, Yan Jiehe handed over the position of Chairman of the Board of Directors of Pacific Construction Group to his son Yan Hao, and soon gave the position of Chairman of Sushang Group to his daughter. No matter in the enterprise or in front of the public, people like to be called "Dean Yan"-the dean of Pacific Business School, although it is still unknown when the school will start.
Yan Hao said that his father's most suitable title now is "Founder of the Pacific Ocean". However, regardless of the title, he is still the actual controller of Yan's family business. It is proved that the microphone has been in his hand for more than 40 minutes when answering reporters' questions at the press conference. After all, he is only 54 years old this year.
On July 7th, the day before the announcement that "Su Taihua" was selected into the world's top 500, Yan Jiehe accepted an exclusive interview with 2 1 Century Business Herald.
"From' Pacific Construction' to' Building the Pacific'"
In the past, the domestic market was the mainstay, and the international market will become the mainstay in the second half of this year.
265438+20th century:No. 166 in the Fortune List is clearly "Pacific Construction Group". Why did Yan Jia emphasize that "Su Taihua was selected as one of the top 500 in the world"? Your projects often last more than one year, and the settlement of BT mode (financing construction first, then handing over the money) is after the project ends. How does Fortune magazine evaluate your income?
Yan Jiehe: Shanghai Sushang Group and Beijing Huatuo Lunjian are wholly-owned subsidiaries of Pacific Company. If packaged together, it is called Sutaihua Department, just as the bosses of Changjiang Industry and Hutchison Whampoa are all Li Ka-shing, and it is a series. Pacific construction is Sutaihua Department, and Sutaihua Department is Pacific construction. Among the announced operating income of 360 billion yuan, Pacific Construction accounts for about half, and Su Shang and Hua Tuo each account for half.
Our operating income is the workload signed and approved by the supervisor and the owner's representative every year. The owner signs and approves according to the measurement every month, which means that I have realized the operating income.
Fortune's evaluation of us began in February this year. In the past few months, three American guests visited 1 1 provinces, including Lanzhou, Yunnan and Guiyang New District. The assessment of Fortune 500 companies is very rigorous. They not only have to go to the scene, but also have an authoritative accounting firm to issue a report.
2 1 century: what is the significance of Pacific construction entering the top 500 in the world for future development? Why do you want to hold such a high-profile press conference to announce? What is the next development goal of the Pacific Ocean?
Yan Jiehe: I don't think it matters. It doesn't mean much. We have made a reputation in this industry, and I don't care whether the top 500 companies are top 500. What the society thinks of me is not important. I care about my master very much, and his evaluation of me is the most important.
I'm not high-profile either. Publishing into the world's top 500 is just one of the activities.
In fact, as early as three years ago, Fortune approached us, hoping that the Pacific could run, but at that time we didn't think it was necessary. What we need now is that in the past, we focused on the domestic market, and in the second half of this year, the international market will turn into our main body, and my main force will all go international. "Pacific construction" should be changed to "building the Pacific". Entering the world's top 500 doesn't work at home, but it still plays a great role in my international development.
"As long as the money is shameless, it's over."
In the first three years, as long as the funds are guaranteed, what we want is image, not brand.
2 1 century: where is the first stop to go abroad?
Yan Jiehe: Our first stop is Europe with the highest global standards, and we strive to cover no less than 35 countries. We will start with 15 countries, one project for each country. In Africa, international brands are unconvincing and must challenge the highest peak. If Europe makes it, everyone agrees that you don't want to find a market, and the market will take the initiative to find you. Aren't Africa, Asia and Latin America all mine?
We go out and never pursue profit maximization. We didn't make any money in the first three years. As long as we protect our capital, we want our image and brand. We should have a strong sense of law and social responsibility, and fully respect local customs. If you are eager for quick success and seek to maximize profits, as long as the money is shameless, it will be over.
Presidents, prime ministers and transport ministers of some European countries have talked to us about infrastructure construction. Guests from Macedonia, Bosnia and Herzegovina and Poland have all been here, and we have received them in Nanjing, Beijing and Shanghai. This morning, we also received a group of Albanians here. They came to talk about a project in expressway, a trunk line with a length of about 140 km and a cost of about1200 million euros.
265438+20th century: Did the Pacific Ocean enter the international market because it encountered bottlenecks in its domestic development? What percentage of foreign market revenue do you expect?
Yan Jiehe: We are moving towards internationalization, which has attracted high-level and many departments' attention and needs the approval of the Ministry of Commerce.
The construction of the Pacific Ocean is vigorous in China, but any industry has a life cycle. Domestic infrastructure construction is still booming for ten years, but it will decline after twenty years. Who will support you in such a big Pacific Ocean?
So our domestic market will gradually shrink and the international market will expand. There are many underdeveloped places in the third world, and there is a lot of room for development. In this decade, 2 1 plus 5, by 2020, our international market will be larger than our domestic market. At present, most of China's enterprises in the world are central enterprises, but European governments like to deal with private enterprises, because we are market-oriented, with lower costs than central enterprises and zero decay.
2 1 century: how big is the European project you signed so far? Do you also use BT mode?
Yan Jiehe: At present, the amount of contracted projects is about 654.38+000 billion euros, all of which are in BT mode, that is, we will take money to do it first. We are moving towards internationalization, and the National Export-Import Bank is very willing to provide us with supporting facilities and encourage us to go abroad. Now the media always question the source of our funds, and suspect that we may have underground mint or rob banks. (Laughter)
"Now the funds are basically on their own."
One-third of the funds belong to the company and two-thirds belong to employee investment.
"265438+20th century": Everyone really cares about your source of funds, because you insist on not lending from banks, and many local governments are heavily in debt, which is difficult to repay. Where does your huge construction fund come from? Is there a government pension fund from the Middle East? Why did you set up Sushang Capital in Shanghai?
Yan Jiehe: The government's payment situation is OK. If it is delayed occasionally, it will not be a problem. If we have difficulties in raising funds, as people think, there will be no way out for the Pacific. At present, there are no bad debts, dormant accounts and bad debts in Pacific accounts receivable.
Because of the turmoil in 2006, our international capital is less, and now we are basically on our own-about one-third belongs to the company and two-thirds to the employees. We have hundreds of millions of rich people here, and all their money is invested here. For example, the independent legal person of Pacific Holdings, the chairman of the board of directors invests himself, and it is not at ease to vote for others. This is not illegal fund-raising, this is employee investment. The capital invested by employees accounts for about half of our total working capital, which should be hundreds of billions.
Sushang Capital is equivalent to an internal financial settlement center, also called an internal bank. The establishment of Sushang Capital is mainly to pool internal funds, turn dead money into living money, and play the role of internal dispatching. Otherwise, some sectors are short of money, and some sectors are not used up, but they also give each other a return on investment.
265438+20th century: Last March, you announced that Sushang Group would become one of the largest private enterprises in Shanghai within five years, and planned to invest10 billion yuan to build the tallest building in Shanghai. How is it going now?
Yan Jiehe: Basically, Soviet businessmen are undertaking projects with relatively great international influence and high technical content in Europe. Su Shang must achieve "flowers outside the wall and incense inside the wall". I did it in Europe, and I don't believe I can't get big projects in China in the future.
Su Shang has been in business for more than a year, and its operating income in the past year was about 50 billion yuan, with a growth rate of at least 50% this year. In the third year, it broke through 1000 billion yuan and became one of the largest private enterprises in Shanghai within three years.
The main battlefield of Soviet businessmen is Guangdong, and we have only entered the Guangdong market for one year. 2 1 prefecture-level city has been fully covered, and the cumulative engineering volume of these projects is about 60 billion yuan.
I want to build the tallest building in Shanghai, with a cost of 65.438+0.2 billion. There is no problem with funds, but will Shanghai let me build it? If it is a city with a high degree of marketization, it will definitely be willing. So I am still full of confidence in Shanghai.
2 1 century: two years ago, you proposed that the output value of the Pacific Ocean should exceed one trillion in 20 16, and the net profit for one year is the sum of Li Ka-shing's net assets. Do you still stick to this goal now?
Yan Jiehe: The profit rate of Li Ka-shing's output value is still relatively high among Chinese enterprises in the world. I mean his assets two years ago, which is static rather than dynamic data. By 20 16, the goal of one trillion will be achieved. But for us, it is of little significance to increase the operating income by hundreds of billions now. The period from 20 13 to 20 14 is our adjustment period. We are busy with internationalization and give up many domestic businesses that we can or cannot do.
"Private enterprises don't need transparency"
People used to say that they wanted three rabbit holes, but now I have nine rabbit holes.
2 1 Century: Why didn't Pacific Construction go public? Do you really have no idea how much wealth you have?
Yan Jiehe: At present, the A-share market is still immature. First-class enterprises will not go public, second-rate enterprises will go public, and third-rate enterprises will not go public. But in the future, our overseas sectors may be listed overseas and locally, which is also a way to achieve localization.
I have never counted my wealth, so I don't need to know it, because the property of private enterprises should be kept vague. Transparent as soon as it goes public, it is a public company. You can't blur if you want to. Private enterprises do not need to be transparent, and public ownership should be transparent. It is more convenient for me to innovate and create without listing, and listed companies should always follow its rules of the game.
Fuzzy funds are also safer, just like the storm I encountered in 2006. If it wasn't fuzzy, I would have fallen. People used to say that they wanted three rabbit holes, but now I have nine rabbit holes. (Laughter)
2 1 Century: Is there a full shareholding or equity incentive plan in the Pacific?
Yan Jiehe: I don't want all the shares. Full shareholding is a big pot of rice, including ordinary shareholding. I don't agree. We fully invest, and the elite holds shares. We have been engaged in joint-stock system for a long time, with 360,000 employees and about 3,000 shareholders now. 20,000 shareholders will be realized in 20 18 and 50,000 shareholders will be realized in 2025. Aren't they elites? All-staff investment means that internal rich people invest in this enterprise. I don't want any more money from outsiders. We give our employees a higher rate of return.
2 1 Century: Is there any plan to set up a bank or share a bank in Pacific Construction?
Yan Jiehe: No, I won't. I didn't participate. I would never do that. Now, whoever engages in banking is going to die. Because the proportion of state-owned banks is too large, can private banks hold on?
265438+20th century: As a private enterprise, why should the Pacific hold a forum with strong political color for several years in succession? "Chinese and foreign political and business cooperation arrow"? As long as you are willing to pay, can you invite big names such as Clinton?
Yan Jiehe: I mainly pave the way for the internationalization of the Pacific Ocean, otherwise I will spend money. Creating momentum is doing things, first step back and be pragmatic. People who have no long-term worries must have immediate worries. If you go abroad, you must have international influence. It doesn't matter, okay? What's the point of spending money on advertising in the new york Times? Clinton used to be able to pay him, but now important bosses can't move and don't come to chicken ribs. On July 25th, we will hold "Hua Tuo, a Chinese and foreign political and business leader, talks about arrows" in Guangzhou. Mr. and Mrs. Clintons, Mr. and Mrs. Blair, Mr. and Mrs. Lee Myung-bak and Mr. Rudd will all come. ;