Huaxi Village was once a miracle, and from the beginning of its establishment in 1961, the whole village was very poor. Today, decades later, Huaxi Village has become the world's number one village with an astonishing transformation, with families living in villas and driving luxury cars.
Miracles are not eternal, reversals come in reverse. Although Huaxi Village is now glamorous on the outside, it is actually mired in debt. This has aroused the curiosity of many people, wondering where exactly the funds in Huaxi Village are goingWhy are you saddled with such a huge amount of debt?
Sixty years ago, Huaxi Village was a village of extreme poverty. However, after a long period of poverty, this fortunate village finally welcomed their savior, Wu Renbao.
Wu Renbao set out to improve the backward and poor situation in Huaxi Village, mainly from two aspects: infrastructure construction, land and population distribution. He first solved the problem of agriculture, and then set about building roads and water conservancy projects to ensure the development of agriculture.
As the saying goes, build roads to enrich the people. Huaxi Village benefits from convenient transportation conditions, which has laid a solid foundation for future economic development. After obtaining a certain amount of resources, Wu Renbao decided to start expanding the industrial industry.
In the village, he first set up a hardware factory, which provided employment opportunities for many young people. Then, Huaxi Village was comprehensively upgraded, transforming from rural to urban. Under the leadership of Wu Renbao, all the villagers embarked on the road to common prosperity.
They invested heavily in the construction of the factory, and everyone became a shareholder in the factory. For a long time, the factory has made very considerable profits, and even successfully opened up foreign markets. Gradually, Huaxi Village was also awarded the title of "the first village in the world".
While Wu Renbao was thriving in Huaxi Village, he was also aware of the risks that came with it, and tried to implement a new reform plan. However, he failed to complete his plan and passed away, which was a huge loss for Huaxi Village.
With the loss of this powerful promoter, Huaxi Village is now in disarray, without a unified leadership. Failure to act when the transition should have been made, and even faced with the problem of overcapacity, these problems could not be solved.
Huaxi Village's economic performance continued to be sluggish, resulting in the village's accumulated debt exceeding 40 billion yuan. This news has hit the motivation of many villagers, and they have begun to pay more attention to protecting their immediate interests.
Huaxi Village's most pressing challenge is overcapacity, and it is extremely difficult to change this situation. According to the revenue data of 2017, the total revenue of Huaxi Village was 1717.5 billion, a direct decrease of half compared to the peak.
Huaxi Village has managed to maintain its current status very well, but it has fallen far behind the status it once famous, and it is now a debt-ridden village, which is sadly growing.
Huaxi Village, after experiencing weakness, is not without transformation. After Wu Renbao's death, his son Wu Xie'en took over the helm and became the second-generation leader of Huaxi Village. Since then, he has been trying to transform in order to grow.
After the transformation, the development situation does not look promising. At present, Huaxi Group's revenue structure is still dominated by steel, supplemented by textiles, building materials and commerce, while also increasing investment in finance and real estate.
The transformation of Huaxi Village does not seem to be satisfactory at the moment, and the sunset industry is still the backbone of its economy. Although the development has not been smooth in recent years, after all, the foundation is still there.
This has also aroused the curiosity of many people, to what extent is Huaxi Village's debt?
According to public data, nearly 40% of Huaxi Village's liabilities are mainly used for investment in steel, textile and other industries, while the remaining 60% is basically used in real estate and financial industries.
In 2011, Huaxi Group invested 3 billion yuan to build a landmark building, Longxi Hotel. The hotel's 60-story roof is also inlaid with a 300 million gold bull sculpture, a move that was dubbed extravagance by many at the time.
This kind of "throwing money" behavior has indeed brought certain benefits. However, since 2018, Huaxi Group has suffered serious losses due to investment. Some have commented that Huaxi Village, which had prospered for a long time in the last century, has now gradually decayed in this century, raising concerns about how long it will last.
Although the prosperity of Huaxi Village is a thing of the past, the villagers are striving for development in many ways. There will inevitably be some obstacles on the road to innovation, but we also believe that as long as Huaxi Village is determined to reinvent itself, the situation will be reversed.
After so many setbacks, we believe that Huaxi Village will rise again and accumulate more valuable experience. What do you think about the future development of Huaxi Village?Welcome to leave a message to discuss.
Huaxi Village