High-quality Development Facilitates New Rise
By Yuan Zhimin
January 1st, 2019
The past year 2018 marks the 40th anniversary of China's reform and opening up. During the past 40 years, while the world was stunned by the these remarkable achievements, China had made great strides in keeping up with the times, witnessed historic changes, and realized the great rejuvenation of the nation.
The year of 2018 is also Kingfa’s 25th anniversary. Over the past 25 years, to boost the development in national economy, Kingfa has broken the bottlenecks in advanced material industry, made unremitting efforts to break the long-term monopoly of technology and product by multinational corporations. Over the past 25 years, the Kingfa people has always remembered their initial dreams, and worked hard to fulfill the responsibility of revitalizing China’s advanced material industry.
Thanks to China's reform and opening up, the rapid growth of China's economy, the continuous upgrading and growth of consumer market, Kingfa started with a 20,000 yuan capital and gradually developed into an advanced polymer material giant with annual sales of nearly 30 billion yuan. Looking back on Kingfa’s development, it can be divided into three stages: the first stage is from Kingfa’s foundation to 2000, when the material market was in short supply, so we achieved an upsurge in sales; the second stage is from 2000 to 2010, then we had maintained rapid growth due to the balance of supply and demand; the third stage is from 2010 till now, at which, faced with market oversupply, we have achieved a small increase despite plenty of difficulties.
However, after Kingfa expanded, the operation quality did not reach the expected goal, and many problems were revealed: the organization structure became bloated while the per capita efficiency declined, our operating costs were climbing while the competitiveness was weakening. Although our operation scale has increased, the rapid development over the past 25 years has also brought about many potential dangers.
Over the past 25 years, Kingfa’s market share has increased significantly, and we have become the leading giant in the domestic advanced polymer material industry, but it has brought about many potential dangers such as weak payment control system and weak price control system.
Over the past 25 years, we have continuously developed “new” products and become the supplier with the most complete advanced polymer material products in the world, but potential dangers such as low technical content and small scale of single gradename have arisen.
Over the past 25 years, we have transformed from a workshop relying on processing by Guangzhou Lithopone Plant into a large company with 412 production lines that has achieved globalized supply, but it has contributed to potential dangers such as rising costs and declining supply quality.
Over the past 25 years, we have grown up from one base at Science and Technology East Street to an advanced material enterprise with global layout, but it has caused potential dangers such as low per capita efficiency and bloated organization structure.
It’s time for Kingfa to adjust the development strategy. If we don’t change, others will change us. The year 2018 may be the most difficult year since Kingfa’s establishment. This partly resulted from the downward pressure of the national economy, but I think the most important reason is that our business strategy and business awareness have not kept up with external changes, which induced our failure in achieving the expected quality and growth rate.
Today, the socialism with Chinese characteristics has entered a new era, and China's economic development has shifted from a high-speed growth stage to a high-quality development stage. In the high-quality development stage, China is pursuing a growth featuring higher efficiency, more effective supply, high-end structure, more sustainable and more harmonious pattern rather than high-speed economic development. To pursue high-quality development, even economic growth rate can be partially abandoned.
The success of an enterprise all attributes to the great era. If the 25-year-old Kingfa wants to ride the waves of our days, we must grasp the pulse of the times and take our own road of high-quality development, a road that will accelerate innovation, inject more vitality and creativity, that will encourage technological and institutional progress, that will share value, serve the society and lead to a happy life.
New era, new road, new stride. From 2019, Kingfa will pay more attention to operation quality rather than pursue scale expansion. We will launch the strategic transformation of high-quality development, and facilitate Kingfa’s new rise.
High-quality development requires us to seek for high-quality clients. From 2019, the Marketing Center will sort out Kingfa's high-quality clients, create more value for them with innovative products and fast service, thereby enhancing our operating efficiency. At the same time, it is necessary to strengthen the management of accounts receivable and establish a robust client credit management system to ensure operation safety.
High-quality development requires us to manufacture high-quality products. From 2019, the Technology Center will develop more high-quality products, strengthen technology leadership, enhance product competitiveness, and develop more cost-effective material solutions for clients.
High-quality development requires us to build high-quality supply chains. From 2019, the Supply Chain Center will greatly intensify cooperation with high-quality suppliers. In particular, the Center will share more business opportunities and a larger business portion with suppliers that boast strong research and development advantage, stable product quality, preferential price, and have constantly supported and helped Kingfa.
High-quality development requires us to carry out high-quality operation. From 2019, the Operation Center will optimize our organization structure, establish an efficient and pragmatic operation service team, create industry-leading delivery competitiveness, and implement the client-first service concept with fast respond and perfect arrangement as its core.
High-quality development requires us to cultivate high-quality employees. From 2019, we will continue to firmly implement the target responsibility system and the last elimination system, improve per capita efficiency, revitalize human resources, completely abolish equalitarianism in income distribution system, and establish an efficient and high-quality team.
2019 has arrived, Kingfa has also taken the strategic step of high-quality development. I hope that all staff can deeply understand and implement the new characteristics and new requirements of Kingfa’s high-quality development, facilitate new rise, strive towards the 100-Billion Dream and the vision to be the best and the most respected advanced material company in the world.