On the banks of the Hutuo River, remarkable achievements have been forged—let me share the story of our dedication. In the previous installment, we recounted how, in 1998, as the financial crisis struck, Jingye Group leveraged low prices, low interest rates, and an ample labor force to launch ten new projects within a single year, striving to double its annual output value.

However, of the ten construction projects, just the three core ones require an investment of 29 million yuan. Even after the group exhausted every possible effort to raise funds, it managed to secure only 14 million yuan—leaving a funding gap of more than half that amount, a mountainous burden that leaves one gasping for breath. With insufficient capital, too many projects, and a tight timeline, can this battle be won?

Work Hard in 1998 One of the ten major projects—the pharmaceutical and chemical workshop

Li Ganpo refused to back down and introduced a groundbreaking concept: “two‑no” management. At the time, many companies were struggling with mounting inventory and unpaid receivables, and Jingye was no exception. Although its pig iron had been sold, collecting payments proved as difficult as squeezing toothpaste from a tube, leaving the company’s cash flow stagnant and devoid of vitality.

Li Ganpo saw through the crux of the matter: a company may not go under from losses, but inventory and outstanding receivables can bring it to its knees. “Cash flow is more important than profit,” he asserted firmly, advocating for a business model with “zero inventory and zero accounts receivable.” Even if it means selling at low prices, the priority is to accelerate cash turnover and prevent capital from becoming “dead money.”

This idea was nothing short of bold at the time—when the industry standard was “ship first, pay later,” switching abruptly to “pay first, ship later” proved hard for customers to accept and met with significant resistance in implementation. Yet Li Ganpo remained resolute, instructing the sales team: “Rather than let inventory pile up or incur outstanding receivables, we’d rather cut prices.” While other companies were pricing pig iron at 1,000 yuan per ton, Jingye offered it at 950 yuan, prioritizing trade partners who could settle the full amount upfront.

Sales representatives spared no effort, leveraging the product’s excellent cost‑performance ratio to win over numerous customers, and gradually turned the “two‑no” business model into a viable operation. Though it may seem like they’re earning 50 yuan less per ton, the cash they’ve collected has proven invaluable: during the crisis, raw‑material suppliers were in urgent need of funds, and Jingye was able to secure supplies by paying just 30% upfront—enabling them to take delivery of 100% of the materials.

In contrast, many of its peers continue to cling to outdated practices—hoarding inventory in anticipation of price hikes and shipping goods before collecting payments—adopting a passive, reactive stance that ultimately leaves them vulnerable to cash‑flow disruptions and financial collapse. By contrast, Jingye has maintained a virtuous cycle of “no inventory, no debt,” enabling rapid capital turnover. This not only ensures the smooth progress of ten major projects but also allows the company to ramp up production, further bolstering its cash flow.

Relying on his keen insight, Li Ganpo employed the “two‑no” management approach—a powerful catalyst—to restore the company’s financial vitality amid crisis. Not only did this enable Jingye to prevail in a life‑and‑death struggle, but it also laid a solid foundation for the enterprise’s future growth.

“Operating with neither assets nor liabilities” helped Jingye overcome its financial challenges in times of crisis, enabling steady progress on the construction of ten major projects. Yet the dedication of Jingye’s team is far from over—what bold vision and down-to-earth pragmatism will they bring to surmount the challenges ahead? We’ll continue sharing more inspiring stories of Jingye in our next installment!