Hansheng Technology: Decisive Battle 2010
2010-08-08
In 2010, for Hansheng Technology, a domestic communication cable manufacturer, becoming the world's leading company like Andrew was just one step away. Who says persistence isn't a virtue? Who says ideals can't become reality? After 25 years of perseverance, Hansheng has reached its final moment of victory.
Hansheng Technology: Decisive Battle 2010
Currently, all employees of Zhuhai Hansheng Technology Co., Ltd. are promoting, emphasizing, and implementing a slogan, a belief, a goal: "Maintain the current development speed, and this year, we should surpass Andrew and become the global industry leader." From management to workshop employees, surpassing seems to have become a fact.
This fact is not far off.
In the first half of this year, Hansheng Technology's sales increased by more than 20% year-on-year. In the post-financial crisis period, with a severe external environment and a significant reduction in orders for many companies, Hansheng's production orders in 2009 continued to increase against the trend month by month, based on the record high in December 2008. As the largest RF coaxial cable manufacturer in Asia and the second largest in the world, Hansheng is engaging in dialogue with the global industry leader—Andrew Corporation of the United States.
One Step Away
With the wind at its back, Hansheng is soaring. The "east wind" for Hansheng is the promotion and application of 3G. In the first half of this year, 3G-related cable sales contributed 70% to the 38% sales growth and doubled production.
Opportunities are always given to those who are prepared. Five years ago, when the development of 3G had not yet been officially put on the agenda, Hansheng had already realized that the world and China would inevitably enter the 3G era. Therefore, it immediately invested heavily and devoted all its efforts to researching 3G-related cables.
In January 2009, the three major operators, Mobile, Telecom, and Unicom, which had just obtained 3G licenses, placed orders with Hansheng. Due to the large number of orders, to meet customer production needs in a timely manner, Hansheng decided to maintain production during the Spring Festival holiday. On the fourth day of the Lunar New Year, Hansheng's workshop began operating at full capacity.
CITIC Securities experts predict that the three major domestic operators' 3G investments in 2009-2011 will reach 130 billion yuan, 100 billion yuan, and 70 billion yuan, respectively, with a total 3G investment of 300 billion yuan over three years. As the leading enterprise in China's communication cable industry, Hansheng, which is ahead of the market, has also ushered in a huge growth opportunity.
"This year will be Hansheng's decisive year. Surpassing Andrew has become a consensus among all the company's personnel."
The "Andrew" mentioned by Hansheng's chairman, Shou Weichun, is currently the world's leading company in the communication cable industry. To recount the competition between Hansheng and Andrew, we must go back 10 years. At that time, the feeder system coaxial cable technology used in the domestic communication field was completely monopolized by foreign companies, with Andrew occupying 95% of the Chinese market share.
In 1998, Shou Weichun realized the market prospects in this field and decided to learn from Andrew Corporation, but was refused entry and told, "It's impossible for you (China) to make this product; just buy ours." Hearing this, Shou Weichun, with his stubborn nature, decided to challenge Andrew.
Back in China, Hansheng started its own business. In 2000, Hansheng successfully developed large-section physical foam coaxial cable technology with independent intellectual property rights, reaching the world's advanced level. However, the product was initially difficult to gain recognition in the market. As a result, Hansheng chose to do OEM for Andrew, with products directly sold to the United States.
This "dependent" period lasted only one year. In the summer of 2001, Hansheng started from the domestic market: providing free feeder systems to Inner Mongolia Mobile, and negotiating contracts after they were satisfied with the trial use. Inner Mongolia Mobile finally agreed to conduct pilot tests in 10 of the most remote areas. After successfully deploying the Hailar base station in the high-altitude area, "Hansheng Manufacturing" finally passed the test.
Subsequently, Hansheng began to expand rapidly in the domestic market, winning over Hunan Unicom, Guangxi Unicom, Guizhou Mobile, etc. Within a short year, Hansheng's sales began to grow exponentially.
In 2008, Hansheng repeatedly won cable bids from China Telecom, China Mobile, China Unicom, Huawei, ZTE, and other companies, successfully securing the number one market share in China, far surpassing Andrew. In the international market, Hansheng has become a supplier to Vodafone in the UK, Spina in Germany, and other top international operators and major equipment manufacturers such as Motorola, Nokia, and Siemens, entering the international supply chain.
"In the past, we always looked up to multinational giants, but now we can stand on the same level and talk on equal terms." Shou Weichun felt deeply.
None Shall Replace Me
“Hansheng's progress will not stop at 3G.” In fact, Hansheng's Three-Year New Product Development Goals and Plan shows various special cables used for national economic development and urgently needed by the national defense industry…Shou Weichun painted a bright future for Hansheng's development: In 2008, based on the needs of the communication market, Hansheng's research and development of leakage cable technology mainly used in subways and tunnels has entered the market, solving the problem of communication signal coverage in underground tunnels, and providing a strong guarantee for the company to expand its market.
“We are still in the exploration stage, and this exploration process will be a long one,” Shou Weichun said earnestly.
From its initial production in 1986 to 2009, from 3.65 million yuan to 2.4 billion yuan, in 25 years, Hansheng's fixed assets have increased 100-fold, sales have increased 400-fold, and profits and taxes have increased 500-fold. This 160,000-square-meter modern factory area is hinting at an answer to the reporter.
“Technological innovation.” Shou Weichun, chairman of the board, who has been associated with technology for decades, answered: “We at Hansheng have a saying, 'Never stop,' and this is particularly prominent in technological innovation.” From the research and development of lotus-shaped cables in the late 1980s to the physical high-foam coaxial cables in 1999, from 50-ohm coaxial cables to today's world-leading 3G feeder cables, Hansheng has overcome one technological hurdle after another and won market acclaim for its superior technology. Today, Hansheng products in the domestic market all use independent brands, and over 50% of the products exported to the international market use independent brands.
Among them, the reporter vaguely saw traces of "Made in China." Shou Weichun told a story from his childhood about a scene he saw in the countryside: a villager catching fish with a trained fish eagle. He used straw to tie a live loop around the fish eagle's neck to prevent it from swallowing the fish after catching it. Then he picked up a bamboo pole and rhythmically tapped the sides of the wooden boat and whipped the water's surface. As the tapping sound became louder and louder, the fish eagles scrambled to dive into the water. After a few minutes, the fish eagles' beaks were filled with fish as they swam to the side of the boat. The villager grabbed the fish eagle by the neck, lifted it onto the boat, and let it spit the fish into a basket that had already been prepared, while also throwing a small fish to the fish eagle as a reward. The fish eagle always quickly swallowed the small fish and then turned to dive into the water…
“Without independent intellectual property rights, we cannot control our own destiny.” The "embarrassment" of Barbie dolls constantly reminds and inspires Hansheng people: We must take technological innovation and independent brands as the strategic core of the company's international competitiveness.
More than ten years ago, Hansheng had no brand.
Shou Weichun will not forget that in 1998, Hansheng signed a contract with European and American equipment manufacturers for the purchase of 50-ohm antenna cable production equipment. Hansheng sent two engineering teams to stay in Austria and the United States to carry out key technological research. During that time, although the members of the research team were in the tourist destination of Austria, they had almost no time to go sightseeing and instead spent all day in the production workshop. Due to the intense work abroad, one engineer's hair, which was originally black, had almost completely fallen out when he returned to China.
“What others don't have, we have; what others have, we have better; what others have better, we have newer; what others have new, we have special.” Based on this philosophy, many high-tech projects undertaken by Shou Weichun have been included in the national and provincial Torch Plan and have achieved import substitution and filled domestic gaps.
25 years of dedication, 25 years of perseverance. Chairman Shou Weichun said: “True key technologies and core technologies cannot be bought or cooperated on. Only through independent innovation can we win a leading international advantage and have the right to equal dialogue on the international stage.
Reporter: Li Haoyu
——Excerpt from August 6, 2010, People's Political Consultative Conference Daily
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