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I recently read an article titled “Key Focus Points in the Current State of the Industry” written by Vice President Fu Xiangsheng, and there was a passage in it that left a deep impression on me: “Thirdly, enterprises need to manage investment risks properly.” In today’s world, where the supply and demand of industrial products are generally in balance and consumption is growing steadily, especially given the situation of overcapacity in some products, we must abandon the traditional mindset that valued scale as the key factor for success. We must also change the conventional development model that relied on scale, investment, and resources. It is essential to fully understand and truly grasp the essence of high-quality development, using global competitiveness as a benchmark and efficiency as the goal for businesses, in order to properly manage investment risks. In this regard, there is also the issue of passive investment. Some companies continue to perform well; they not only serve as benchmarks for industry management but also make significant contributions to the local economy, finances, and employment. Sometimes, the local authorities demand that these companies increase their investments in order to accelerate growth. In order to meet these demands, the companies make investments – decisions that may be impulsive rather than well-thought-out – and set up new business operations. Some of these new operations deviate from the company’s original core business or even go far beyond its existing strengths. Additionally, there are cases where short-term loans are used for long-term investments, and such situations pose serious investment risks. It is recommended that businesses and entrepreneurs, when faced with passive investments, especially those that go beyond their core strengths and capabilities, seek out expert advice and make use of their expertise. They should not give promises under pressure, lest they regret it later when faced with difficulties. ” Who do you think these earnest words are directed at?
Are they those companies that are entering the petrochemical/coal chemical sector across different industries and expanding rapidly in a reckless manner?
Those in real estate, finance, insurance, and home appliances moving into the automotive industry, or into new energy?