Long's Hidden Pain -- Enterprise Difficulties Under the Coverage of Huge Accounts Receivable

Author: Xu Mingtian
Publisher:
Publish Date: 2005-07-01
Features: I broke the news about Changhong's massive accounts receivable, but accounts receivable were just the fuse, not the fundamental reason for Changhong's decline; Changhong had its own inevitable fate. —Author
Changhong's biggest enemy is itself, and only itself can defeat Changhong. — Ni Wangfeng
Large-scale production must be based on large-scale sales. If the manufacturer cannot effectively control the sales process, then its production line will not be effectively protected, and its production capacity will not be fully unleashed. — Masaharu Konosuke
Market competition will lead to survival of the fittest, but this process is carried out by the "winners" who advance faster to eliminate the "losers" who advance slower. — Li Dongsheng.
Changhong's history is like a business version of Dream of the Red Chamber. As the former leader of China's color TV industry, it once achieved a net profit of 2.59 billion yuan but also set a stock market record of a massive loss of 3.681 billion yuan. The author of this book is a financial journalist who exposed Changhong's massive 4 billion yuan accounts receivable. This "major discovery" led to a lawsuit against Changhong for 30 million yuan, which also marked the beginning of the author's comprehensive research on Changhong. The book starts with the massive accounts receivable case and analyzes six aspects of Changhong: its key account channels, price wars, internationalization missteps, stalled restructuring, strategic development choices, and Ni Runfeng's leadership, revealing the fundamental reasons for Changhong's current decline.
Starting from the accounts receivable case, the book examines the failures in six corporate management issues—key account channels, price wars, internationalization, restructuring, strategy, and leadership—to seek the root causes of Changhong's decline. With a unique perspective, it explores Changhong's internationalization missteps; tracing the origins, it reveals the mysteries and inevitabilities of Changhong's path to scale; using comparative and extended methods, it showcases the lesser-known side of the distinctive Ni Runfeng.
The Hidden Pain of Changhong will be a blockbuster in the 2005 financial and economic book industry. Li Dongsheng, Chairman and CEO of TCL Group, and Ding Ningning, a senior researcher at the Development Research Center of the State Council, have jointly written the preface for the book.