ZHUHAI Hansheng: Independent Innovation, Leading the Trend
2008-12-17
Despite the global financial tsunami, Zhuhai Hansheng Science and Technology Co., Ltd. still achieved over 36% year-on-year growth in exports this year, meeting its goal of steady development. As the largest professional manufacturer of radio frequency coaxial cables in China and the Far East, the company's core competitiveness of "innovation" has enabled it to achieve sustainable development in market competition.
In an era of prevalent "OEM", the company advocated science and technology to promote enterprise development; in the face of foreign technological blockade, it insisted on independent innovation. It regards "revitalizing China's national industry and surpassing world-class standards" as its goals, ideals, and responsibilities.
Hansheng has become a model for the healthy rise of private enterprises.
In the face of the global financial crisis, Zhuhai Hansheng Science and Technology Co., Ltd., relying on its strong independent innovation capabilities and independent brand, still achieved over 36% year-on-year growth in exports this year, achieving its goal of stable development.
Zhuhai Hansheng: Independent Innovation Leading the Way
At the recently concluded provincial SME work conference, our province solemnly commended the top 100 private enterprises in Guangdong Province in 2006-2007, and Zhuhai Hansheng Science and Technology Co., Ltd. was honorably listed.
Not long ago, a delegation led by the vice governor and relevant provincial department heads visited Zhuhai to hold a face-to-face meeting with representatives of 10 export-oriented enterprises to investigate the operating conditions of Zhuhai's export-oriented enterprises under the financial crisis. When Shou Weichun, chairman of Zhuhai Hansheng Science and Technology Co., Ltd., introduced that the company, relying on its strong independent innovation capabilities and independent brand, had achieved over 36% year-on-year growth in exports this year, the audience applauded warmly.
Against the backdrop of the global financial crisis, Zhuhai Hansheng Science and Technology Co., Ltd., as the largest professional manufacturer of radio frequency coaxial cables in China and the Far East, has once again attracted worldwide attention for successfully weathering the crisis.
Preparedness, Effective Response, Counter-cyclical Export Growth
On November 26, when reporters visited the modern production base of Zhuhai Hansheng Science and Technology Co., Ltd. in Doumen District, the scene was as busy as ever. All production lines were operating at full capacity, and the loading and unloading area was bustling with activity, with large trucks coming and going in a steady stream, and cable reels neatly stacked on both sides of the road ready for export.
Shou Weichun told reporters that they currently ship products to Southeast Asian countries such as India every day, with 100 containers exported to India in November alone. The company exported US$80 million in the first half of the year and is expected to export US$60 million in the second half, with a total export volume of US$140 million for the year, a 36% increase compared to last year.
In fact, in the face of the sudden global financial crisis, the company also encountered many new situations and problems, facing a huge adjustment in the international market. The company's leadership and management team promptly adjusted its development strategy and carefully formulated and implemented effective countermeasures, enabling the company to successfully withstand the crisis and achieve its goal of stable development.
In response to the significant decline in demand from the European and American markets, Hansheng has stepped up efforts to develop new markets in the Middle East and Southeast Asia, which have been less affected by the financial crisis, achieving a win-win situation. At the same time, through the company's long-term market accumulation and continuous technological upgrades, quality improvements, and services, the company continues to develop new markets and high-end customers internationally, increasing its order share.
Hansheng also actively responded to the central government's call to expand domestic demand, and timely changed its sales strategy, increasing efforts to develop the domestic market. The company has become a major supplier to mobile communication operators such as China Mobile, China Telecom, and China Unicom, and first-class telecommunications equipment integrators such as Huawei and ZTE in Shenzhen, achieving a balanced approach.
In response to the decline in product gross profit margin, Hansheng has focused on internal improvements, strengthened internal management, improved efficiency, and strived to control and reduce costs; increased R&D investment, developed new products with independent intellectual property rights, and improved the company's profitability.
Shou Weichun said confidently that under the leadership of all levels of government, Hansheng will continue to emancipate its mind, strive for excellence, use an international perspective to promote innovation, and with an enthusiastic and upward spirit, strive to be a pioneer in reform and opening up, and make new contributions to China's economic and social development.
Technology Innovation as a Pioneer, Building a Strong Independent Brand
Hansheng's ability to stand out during the financial crisis is not a matter of overnight success. The company, with the mission of "revitalizing China's national industry and surpassing advanced world levels," has accumulated more than 20 years of experience and has been forged through the storms of the market, becoming the largest radio frequency coaxial cable manufacturing base and technologically leading enterprise in China and the Far East.
In 1985, Shou Weichun, a technology professional, left his post as deputy factory director of a Shanghai plastics factory, bid farewell to the bustling Shanghai, and set foot on the fertile soil of the Zhuhai Special Economic Zone, establishing Hansheng.
At that time, there were already more than 30 transmission cable factories in China with abundant capital and advanced equipment. How could Hansheng survive and thrive in the fierce competition?
"Only by relying on scientific and technological talents and developing high-tech flagship products!" Shou Weichun clearly understood this point. The development direction of the company, guided by technological innovation, has not deviated in the past 20 years, directly leading to the rise of Hansheng.
The coaxial cables produced by Hansheng are mainly used in the communications field. In terms of technical solutions, they have gone through solid polyethylene insulation, chemically foamed polyethylene insulation, lotus root core polyethylene insulation, and physically foamed polyethylene insulation. By the end of 1995, after nearly two years of efforts, Hansheng became the first domestic manufacturer to successfully use nitrogen to achieve physical high foaming, and applied this technology to the manufacture of high-quality cables required for cable television network construction. Once launched, the product was warmly welcomed by domestic and foreign users for its higher transmission rate, lower attenuation, and better performance.
When Hansheng set its sights on the research and development and manufacturing of physically high-foamed, large-section coaxial cables for use in mobile communication base stations, it encountered technological barriers. This technology was only mastered by a few companies in Europe and America, and Hansheng could not introduce or seek cooperation. Hansheng once went to the United States to find cooperation partners, but was refused entry.
The patriotism and national sentiment of Hansheng people were ignited! Management decided to independently research and develop this series of products. To this end, Hansheng's technical team had no weekends or holidays, working late into the night. Some engineers worked with equipment manufacturers abroad for long periods to research molds, and finally produced qualified products with independent intellectual property rights in 2000. In particular, in the technology of large-section physical foaming, Hansheng's unique process filled a gap in the domestic market and reached the internationally advanced level.
“Revitalizing China's national industry and catching up with the world's advanced level.” Shou Weichun said that Hansheng people regard this as the enterprise development goal, and this ideal and commitment will never change.
Currently, Hansheng's four major categories of communication coaxial cables and new aluminum-plastic composite pipe materials dominate the domestic market, with communication coaxial cables accounting for more than 30% of the domestic market share, and its international market position has also been successfully established. At present, the company's four major product categories have been rated as "National Key New Products," and two major projects have been included in the "National Torch Plan." Among them, the 50-ohm antenna cable project was also included in the 2001 "Key National Torch Plan." In 2005, all four major product categories obtained certificates for adopting international standard product logos. To date, Hansheng has applied for more than 20 national patents.
In the past, due to the lack of an independent brand, the company mainly engaged in OEM, resulting in meager profits. In recent years, Hansheng has focused on the construction and promotion of its own brand. After years of hard work, in 2008, the export volume of its own brand accounted for nearly 50% of the total export volume.
At the time of Hansheng's birth, there were more than 30 cable companies in the market, many of which have now been eliminated. After the elimination of the unfit, Hansheng has become a major brand in China's national industry.
Riding the East Wind of System Reform to Promote the Rapid Development of Enterprises
In 1998, in accordance with the central government's policy of focusing on large enterprises and releasing small ones, and the withdrawal of state-owned capital from fully competitive fields, Zhuhai City launched a large-scale reform of state-owned enterprises. As one of the pilot enterprises for state-owned enterprise reform, Hansheng Company, under the specific guidance of the former Zhuhai Municipal Reform Commission, successfully implemented the conversion to a shareholding system dominated by private capital in strict accordance with the Party's guidelines and policies. The successful reform of the operating system effectively solved the systemic problems in development and greatly promoted the development of the enterprise.
Hansheng's sales revenue increased from 120 million yuan in 1997 to 1.49 billion yuan in 2007, an increase of 1140%, and it has grown from an ordinary coaxial cable production factory ten years ago into an internationally renowned enterprise with the highest ranking in Asia and third in the world, integrating the research, development, production, and sales of coaxial cables.
From 1998 to the present, it has paid approximately 200 million yuan in taxes to the state and local governments. In 2008, it was rated as one of the "Top Ten Taxpayers" and "Top 100 Tax Contributors" in Zhuhai by the Zhuhai Municipal Taxation Bureau. At the same time, the company was awarded the title of "National Enterprise with Good Contract and Credit Reputation" and was rated as an enterprise with "Twenty-One Years of Consistent Good Contract and Credit Reputation" by the Guangdong Provincial Administration for Industry and Commerce.
For more than 20 years, Hansheng has always adhered to the principle of grasping both material and spiritual civilization, striving to create an advanced corporate culture, and effectively promoting the development of the enterprise. In 2006, Hansheng was named a "National Advanced Grassroots Party Organization" by the Organization Department of the CPC Central Committee. In 2007, it was awarded the title of "National Model Enterprise with Harmonious Labor Relations" by the Ministry of Human Resources and Social Security, the All-China Federation of Trade Unions, and other units. Since 2004, Hansheng has been awarded the honor of "Advanced Unit in China's Corporate Culture Construction" three times.
“Every step has been difficult, but we have been moving forward.” Shou Weichun said.
He clearly remembers the footprints of Hansheng's development: the earliest Nanshan factory area was less than 2,000 square meters. In 2000, it moved to the Lanpu factory area, adding 12,000 square meters. In 2001, the Qianshan factory building was expanded, and the company had a total area of more than 60,000 square meters.
In 2005, Hansheng finally found its ideal factory location in Doumen. "Since moving to Doumen in 2005, our total sales have increased significantly year by year, from 610 million, 900 million, to over 1.4 billion last year, and this year is expected to reach 2 billion." Shou Weichun said.
Reform is surging, heroes are emerging, looking back at the tide, Hansheng is the only one!
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This ESG report is the 2024 Corporate Social Responsibility Report of Zhuhai Hansen Science & Technology Co., Ltd., guided by China Certification & Accreditation Administration (CNCA).
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