Chapter 68

Chapter 7: Reflections and Discussions on the Red Spinning Mill's Future

This year, Yang Zixuan did not receive any news from the capital, no phone calls asking him to return for the New Year. So far, not a single call from the capital had come through.

Yang Zixuan could only sigh lightly, perhaps those people in the capital had truly forgotten about him!

On the first day of the New Year, Lin Ruoshui also returned to Jiangnan Province with Lin Pei. The Lin family's base was in Jiangnan Province, and the current rising star, Lin Zhengqiang, had just been appointed as the Secretary of the Jiangnan Provincial Committee. Jiangnan Province has always been a good stepping stone for promotion to a vice-national position, so Lin Zhengqiang's rise was still very rapid.

As the most prominent political star in Hongshui County, many people came to pay their respects to Yang Zixuan, partly to build relationships and partly to make a good impression on him.

However, Yang Zixuan was not at the county committee family building most of the time. He was busy with activities to prepare for the new year's work.

...

"Su Ming, how is the situation at the Red Spinning Mill recently?" Yang Zixuan took a puff of his cigarette and looked at Su Ming, who had become noticeably thinner since taking on the role of deputy factory manager in charge of production.

This was at Su Chen's house. Su Mama and Su Baba were busy in the kitchen, and Su Chen was helping her parents wash vegetables. In the living room, only Yang Zixuan and Su Ming were present.

"County Chief, the situation is not very good. Apart from the issue of Tian Li's large-scale misappropriation of factory funds to set up other petty cash subsidiaries, the competitiveness of state-owned textile enterprises in the country has also significantly declined!" Su Ming frowned and answered cautiously. However, having been Yang Zixuan's secretary, he spoke frankly about the situation at the Red Spinning Mill.

"In that case, I will give you a verbal target now. After you return to work, you can pass it on to the leadership of the Red Spinning Mill—this year, the Red Spinning Mill must turn a profit! In a while, I will ask the county government to draft a document to set some targets for the Red Spinning Mill. The leadership of the Red Spinning Mill must work together to achieve these targets. Otherwise, you will have to be prepared to be transferred from the Red Spinning Mill! Even though you are my secretary, you are not an exception!"

Su Ming was stunned, not expecting to encounter such a situation on the second day of the New Year. He looked distressed and said, "County Chief, this is a bit too much to ask!"

"I know. Since the reform and opening up, the southern coastal areas have reaped the benefits first, and the textile industry has sprung up like mushrooms after the rain. These southern coastal private textile factories have modern management concepts, flexible operating mechanisms, and relatively low labor costs, making them very adaptable to market economic laws. They have already occupied half of the domestic textile market, and this industrial ratio will continue to rise, squeezing and compressing the survival space of non-coastal textile factories and northern state-owned textile enterprises. Moreover, most state-owned textile enterprises, including the once prominent Red Spinning Mill in our Daming region, grew up under the planned economy. These state-owned enterprises lag behind the market in management concepts, operating mechanisms, and labor costs, and they also carry many historical burdens, such as debts and redundant staff."

"But this cannot be an excuse for the Red Spinning Mill's backwardness!" Yang Zixuan, holding a cigarette between his fingers, took a sip of tea from the table, his tone firm and resolute!

Su Ming had initially thought that Yang Zixuan's hard requirement for the Red Spinning Mill to turn a profit indicated that he did not understand the broader context of the textile industry, hence the forced assignment of such a task.

However, he did not expect County Chief Yang to immediately provide such a profound analysis. Even the senior leaders in the Red Spinning Mill, who had been in the textile industry for over a decade, might only have a superficial understanding of the industry, without such a comprehensive perspective...

"The Red Spinning Mill was once a star enterprise in Hongshui, and even in our entire Daming region. So at least during my term in Hongshui County, you must find a way to revitalize the Red Spinning Mill and make the textile industry one of the key pillars of our Hongshui economy, rather than relying on the bank and county finances as it does now." Yang Zixuan sighed.

"Su Ming, it's not that I am deliberately making things difficult for the Red Spinning Mill. The focus of our county government this year will definitely be on the Honghe Economic Development Zone. Developing this zone will already consume a significant portion of the county's budget! It will be impossible to provide the same level of subsidies to the Red Spinning Mill as in previous years. In fact, we may even need the Red Spinning Mill to turn a profit promptly and contribute to the county's finances!"

Su Ming was taken aback and asked, "Has the Honghe Economic Development Zone been approved by the city government?" Although Su Ming had been in charge of production at the Red Spinning Mill, he had always kept an eye on the dynamics of the county committee and government. Having worked in the county committee and government for some time, he had built some connections, so any significant developments would quickly reach his ears.

He had also heard at the Red Spinning Mill that the Honghe Economic Development Zone had been severely criticized by Mayor Tang at the municipal government, and that Yang Zixuan had repeatedly put the second-in-command of the county government, Fang Ling, in a difficult position at the county government's standing committee meetings due to the Honghe Economic Development Zone.

"You don't need to worry about that. The Honghe Economic Development Zone is the county government's responsibility. Focus on running the Red Spinning Mill well!" Yang Zixuan waved his hand.

Su Ming wisely did not press the issue further and instead asked, "County Chief, in your opinion, what are the key points for the Red Spinning Mill to turn a profit? Or are there any specific and effective measures?"

He had been very impressed by Yang Zixuan since he had taken down Xu and Li, and he believed that Yang Zixuan's insistence on the Red Spinning Mill turning a profit was not without reason.

"First, you need to change the management philosophy of your leadership. With the leader's Southern Tour, the market economy will gradually be implemented in policy. Therefore, the Red Spinning Mill must shift from the old 'production-centered' approach to a 'market-centered' approach! One of the biggest management issues in state-owned enterprises is the emphasis on production over market sales. Producing products is only half the battle; the other half is the market terminal sales and gross profit. Without sales or with low gross profit, the enterprise cannot survive."

"Therefore, the Red Spinning Mill must establish an effective and efficient sales team to fully connect with the market, implement zero-distance management, study market trends, capture timely information, and determine marketing strategies. Only then can you accurately grasp the pulse of the market and produce popular textile products that meet market demand!"

"For example, you can try the order-based production and supplementary production methods commonly used by many private enterprises in the coastal regions. This can continuously meet market and customer needs!"