Recently, an article entitled "China's most wealthy village debts 38.9 billion in the world Huaxi Village in the end experienced what?" The article fermented on the Internet, the article said that once the "best in the world" Huaxi Village now total debt of 38.9 billion , The traditional "home world" mode of operation in urgent need of restructuring.

In response, Huaxi Village Party Secretary and Director Huaxi Group Chairman Wu Xie'en (the son of Wu Renbao, former head of Huaxi Village) told Xinhua News Agency's WeChat public account ID (banglicai) interview that the article out of context, this year Huaxi The profitability of the Group's steel and chemical fiber segment increased significantly. The overall service industry remained stable. The Group's operating conditions were better than in previous years with steady and steady tax payments and good overall development.

Wu Xiene said that this year's steel and chemical fiber industry as a whole are hot and have been the best performing year in recent years. The increase in liabilities was mainly due to the layout of a lot of new businesses. The effect of the current investment is showing up and the investment income has reached several fold. In addition, the new layout of the financial, gaming and other businesses are also advancing, the profits will be gradually released. And the appropriate debt ratio, for the business is also good, you can improve the efficiency of resource allocation.

Wu Xie-en also said that some people think online Huaxi more closed, you can come and take a look at the field visit.

Huaxi Village @ visual China

According to Huaxi Group's financial data, in the first three quarters of this year, Huaxi Cun realized a profit of 162 million yuan with a revenue of 20.213 billion yuan, an increase of 2.0 billion yuan over the same period of last year while an increase of 6.96% in liabilities to 38.742 billion yuan. Assets and liabilities 69.4%.

Main steel industry revenue declined year by year

Huaxi Village, the overall effectiveness of the bulk of the undoubtedly the steel industry, but the steel industry's revenue is declining every year. Huaxi Village cites the report of Huaxi Village according to the financial management state. In the first quarter of 2013, 2014, 2015 and 2016, Huaxi Village accounted for 67.45%, 64.98%, 60.52% and 67.82% of the total revenue respectively. However, revenue declined significantly, reaching 17.905 billion yuan, 17.829 billion yuan, 12.98 billion yuan and 3.777 billion yuan respectively.

In contrast, Wu's new layout of the financial sector has now become the main source of profits in Huaxi Village. Beijing News reported that from 2013 to the first quarter of 2016, Huaxi Group's investment income was 378 million yuan, 503 million yuan, 2.769 billion yuan and 5.7575 million yuan respectively, accounting for 73.00%, 80.36% and 193.25% of the total profit, respectively % And 11.32%.

As for the other revenue point of "tourism", Huaxi Village's glory is not the same year. Huaxi Village Deputy Secretary of Party Committee and Huaxi Group Deputy General Manager Bao Lijun admitted at the beginning of the year that the current reception area is slightly less than 1.5 million person-times Up from 2.5 million in the past. However, Huaxi Village is now in transition and has signed contracts with more than 1,000 travel agencies in the country. It also receives a large number of individual tourists traveling by car. Overall, the tourism revenue can still be counted.

Wu Xiene @ visual China

Home world need to change?

In addition to revenue decline, Huaxi Village, another controversial aspect is "home world." Many of the West Group executives and James Wu family get married, or is a member of Huaxi Village Party committee.

According to the daily financial network statistics, day-to-day management by a board of seven people is responsible. The board list shows that all seven people come from Huaxi Village Party Committee and Chairman Wu Xie'en is the former Huashe Village Party Secretary Wu Renbao son. Currently, he is the secretary of the Party branch of Huaxi Village and the director of the village committee.

Bao Lijun (Wu Renbao's nephew-wife), who serves as a director in Huaxi Group, also serves as the chairman of 12 companies under the Huaxi Group and his position as deputy party secretary in Huaxi Village. He Jiannan, a deputy party secretary of Huaxi Village (predecessor Wu Renbao) and Qu Jianjun, also served as the chairman of Huaxi North Steel Group and Huaxi Dunong as director of Huaxi Group respectively.

Huaxi Group affiliated textile enterprises @ Visual China

Huaxi Village Party Committee member Yang Yongchang, Huaxi Group as a director outside, a person and China Southwest Steel 9 Huaxi Group affiliated company chairman; Huaxi Village Party committee, Huaxi Group director Tao Kui-jun (Wu Renbao's nephew-in-law) Sewage treatment chairman. The same as Huangjian Gang, in addition to Huaxi Village Party committee members, Huaxi Group, director positions, only as a new chairman of West China. The only exception, Huaxi Village Chairman Tang Wei-ching, is introduced by the Wu Xien-en external talent.

Financial help said Wu Renbao's eldest son Wu Xidong currently Huaxi Village Party Committee Deputy Secretary, but under a number of its companies have been canceled, but his youngest daughter Wu Fang, which is the granddaughter of Wu Renbao, currently served as Jiangyin Municipal Committee, deputy mayor.

Wu Xiede, the second son of Wu Renbao, died of illness and was once responsible for the tourism industry in Huaxi. His wife was once the general manager of Huaxi Tourism Service Corporation. However, the company has now canceled the business. Third son Wu Xieping is currently responsible for Huaxi Catering Industry, is a member of Huaxi Village Party Committee, Huaxi International Travel is the general manager of Huaxi Catering Tourism, general manager, is also Huaxi Village Food Nutrition Dean, China Cuisine Association chef Professional Committee Standing Committee , And set up a Huaxi food nutrition training center, held "Chinese cooking skill training class."

The last son of Wu Xiegen inherited Wu Renbao's career, and Wu Xiegen's son Sun Xianyao is not only the Huaxi Huamao Computer Technology Co., Ltd. General Manager, also entered the gaming industry. In the end, due to the winter shipping industry in the past two years, earnings reports showed that Polaris International, which is responsible for maritime transportation and marine engineering business, suffered losses in the first quarter of 2016 and its net profit in the first quarter of 2016 was negative. Respectively, loss of 59,497,100 yuan and 121,801,160 yuan.

China Youth Daily on December 20 had "China's most wealthy village debt 389 billion in the world Huaxi Village in the end what experience?" Commented that the relevant articles in the data as of the first quarter of 2016, apparently some old The credit rating of Dagong International on July 17, 2017, which the author found, shows that as of March 2017, Huaxi Group had total assets of 54.126 billion yuan, total profit of 0.55 billion yuan, asset-liability ratio of 67.83%, compared with 2016 The year has risen. It can be said that the text of the debt basically in line with the facts.

Assessing the value of a firm using only the debt-to-asset ratio is necessarily biased because the gearing ratios of different types of firms differ too much, not enough to assert that Huaxi Group has serious problems. However, judging from its core financial indicators such as the total net profit and the rate of return on assets, the article said that "we have reached a fork in the road that needs urgent transformation" and that the loss of steel in the main business is too much. We only rely on financial investment to maintain superficial profits. It is an indisputable fact.

Village-run enterprises and village collectives need to shift from "capable people" to modern corporate governance. The experience of Huaxi Village is of great value to and inspiration for those villages that get rich first. Some township and village collective enterprises that have completed the structure of modern corporate governance have enjoyed lasting vitality. However, some unfinished transitions may have dwindle from then on.