BEIJING, Jan. 18, 2017 /PRNewswire/ -- Recently Ye Jianming, Chairman of CEFC China Energy Company Limited (CEFC China) was awarded Global Top 40 Young Business Leader by the Fortune Magazine. The media quickly focused on the private company which is listed 229th in the Fortune Global 500. The public paid close attention to the development path of CEFC China, and seemed to be at a loss for why CEFC China has been making huge investments along the Silk Road.
A few days ago, Contemporary Think Tank Forum, along with China's most well-known consulting company, the Hujun Entrepreneurship Consulting Group, hosted a forum entitled CEFC China: A Private enterprise giant in Silk Road rejuvenation. Li Su, founder of Hujun, delivered a key note speech, which answered three questions concerning CEFC China.
Firstly, does China need more CEFC China during its course of economic rejuvenation?
Li Su thinks that year 2016 marked a turning point in Xi Jinping's new deal. Super domestic political stability, enormous international changes and Silk Road economic rejuvenation, these three factors were interacting with each other. "We roll up our sleeves and work with added energy" is the main theme of CEFC CHINA's strategy meeting, and is also the main theme of China's development in 2017. CEFC CHINA is a big company which closely follows the national strategy, integrates people's diplomacy with strategic investment and leads the economic interaction in Silk Road rejuvenation. Therefore, CEFC CHINA's experience and model are of strategic significance to China's development and the world economy as well. In this important historic era, Silk Road economic interaction needs more companies like CEFC CHINA, who will roam across the globe and bridge China and the world.
Secondly, how should the private companies take opportunities in Silk Road development?
Li Su thinks that CEFC CHINA's success is not accidental, nor speculative, not to mention corruptive. CEFC CHINA drew on experiences from China's reform and opening up, and stood on the shoulders of Great United Petroleum Holding Co., LTD, (GUPC), D'Long International Strategic Investment Company, China Worldbest Group Co., Ltd (CWGC), and the three oil giants of China.
CEFC CHINA path differs from others in that it opened up the industrial chain of oil reserve. CEFC CHINA obtained from upper stream oil and gas resource rich areas, including from Kazakhstan, Abu Dhabi, Chad and other areas. CEFC CHINA worked hard in exploring overseas resources and overcame difficulties in trade channel, oil selling channel, oil storage and transportation, infrastructure, and financial operation. That is why it stood out in China's as well as the world's petroleum industry.
Let's look at the cash flow of CEFC CHINA's investment. CEFC CHINA, though has a very long service chain, started from oil trade, has big oil trade volume and enjoys a good cash flow. Big scale of oil reserves requires a big initial capital investment. Yet CEFC CHINA seized a good timing in building oil tanks and oil reserves.
With accurate calculation of cash flow and profit, and self-controlled financial resources, CEFC CHINA can balance investment returns and financing support.
CEFC CHINA, which has rich industrial and financial experience, has established an effective domestic control system, strengthened stable financial channel, avoided short-term speculation, and perfectly matched capital and business operation circle, so as to manage risks.
On human resource structure, Ye Jianming, Chairman of CEFC CHINA, values management talents from state-owned enterprises. 95% of CEFC CHINA's introduced talents, especially those for overseas business, are from state-owned enterprises. CEFC CHINA keeps improving its management standards.
CEFC CHINA shares the same goal with the three big oil companies, that is to have global layout and develop the Silk Road region. Meanwhile, CEFC CHINA transcended the three bigs in mastering good timing, using flexibility and integrating resources with capital. CEFC CHINA, therefore, has fulfilled the tasks that are hard for the three bigs due to their limitation.
According to the financial statistics released by CEFC CHINA, CEFC CHINA's total asset accounts for nearly a trillion RMB, total income reaches 300 billion RMB, and its profits reached several billion RMB. The group maintains a debt of several billion RMB. A virtuous circle of development has been established.
Thirdly, how should the private companies under Silk Road initiative make their strategic focus?
Li Su says that the Belt Road Initiative along the Silk Road is a strategic plan in China's global development course. Chinese companies have gone through three stages in overseas investment: from individual businessmen building overseas ties, to private company owners buying resources, then to big investment made by state-owned enterprises. Currently we are in the Silk Road Initiative layout stage when private business and financial capital work side by side. Chinese traditional philosophy can be used to lead business development. CEFC CHINA, with its experience gained and lessons learned in Silk Road development, establishes a unique theory that combines the essence of the five ancient Chinese philosophies: Taoism, Confucianism, Legalism, Mohism and School of Diplomacy. CEFC CHINA practiced these ancient wisdoms in adjusting its strategic plan, grasping business opportunities, and marching forward in the Silk Road Initiative for the great Chinese rejuvenation.
CEFC CHINA's oil trade is just a starting page. After its primitive accumulation stage, the biggest strategy of CEFC CHINA is to focus on the Belt Road Initiative and turn the macro opportunity of the state to the big development strategy of the company.
Under the backdrop of globalization, Chinese companies need a broader way of thinking that integrates and interacts with cultures from all over the world. Ye Jianming, Chairman of CEFC CHINA, believes that "Cultural confidence is a more fundamental, broader and deeper confidence". He integrates traditional and modern ideas, and boosts the positive energy of accomplish others before accomplishing oneself. Ye Jianming, as the spiritual leader of CEFC CHINA, sticks to the principle of mutual benefit of investment host country, and is committed to building a community of common destiny for all mankind. Such Chinese entrepreneurs are needed in China's Silk Road rejuvenation course.
Contact:
Ms. Danfeng Zhang
E-mail: contactus@iricn.com
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