Shandong Hongye Textile: Innovation is the magic weapon for corporate survival
Facing the unprecedented financial crisis, Qilu Hongye moved forward steadily with its strong internal strength.
It’s hard to believe that the office of Hongye Textile Group is still in a low-rise bungalow without visiting the factory in Shanghe.
It’s hard to believe when you enter the factory area. The textile workshop is still a bustling production scene, and the rapid and ferocious financial tsunami has left almost no trace here. “There hasn’t been a bonus in the past eight years, and a lot of money has been spent on technological innovation, transformation and equipment.” Li Handian, chairman of Qilu Hongye Textile Group Co., Ltd., told reporters, “At any time, innovation is The magic weapon for enterprise survival.”
When the door to export is closed, the door to domestic sales is opened
Under the impact of this financial crisis, the textile industry has borne the brunt. Relevant data show that my country’s textile industry is an industry with a high degree of export dependence. Export earnings account for 15% of the country’s export earnings, the trade surplus accounts for 60% of the national trade surplus, and the international trade volume accounts for 30% of the textile trade volume.
Under the financial crisis, the production of many domestic textile companies that relied on exports dropped sharply, and their profits plummeted. Hongye Textile was not immune. “In 2007, the company’s export volume was about 15 million U.S. dollars, and its profit was more than 10 million yuan. Last year, the export volume was also more than 10 million U.S. dollars. After the calculation, the profit was only more than 1.3 million yuan. Compared with other companies in the same industry Compared with enterprises, it’s good if you don’t lose money.” Since last year, Li Handian had a premonition of the risks of international trade. At the same time, as foreign orders have become more and more expensive, competition in the international market has become increasingly fierce. “It’s not that there are no international orders now, but the prices are too low, and you lose money if you take them, so some orders are rejected directly.” Seeing the international market shrinking, Li Handian decided to adjust his marketing focus to domestic sales in a timely manner. , targeting domestic, especially high-end customers in the province, as well as independent joint ventures that require higher-grade products from foreign-funded enterprises, and take the initiative to do a good job in promotions. “The quality of our products was quickly recognized by customers. After adjusting our strategy, domestic orders came in one after another, and the products were very popular.” Li Handian said, “After the Spring Festival, I heard that many colleagues in the industry have simply stopped working because they have no work to do. Although it is not open, all our machines are operating at full capacity, and orders have been queued until the end of March.”
Reluctant to build buildings, but technological transformation is unambiguous
As international demand shrinks, export-oriented Large-scale textile companies have all set their sights on the country, and competition is extremely fierce. How can Hongye Textile receive a large number of orders? Regarding this issue, Li Handian said with a smile, “The crisis does not come in a day or two, and the competitiveness of enterprises does not improve just by improving. While others are making money and busy paying dividends, we use the money to engage in It’s time to innovate and engage in technological transformation. If we had waited until now, I would have been hungry a long time ago.”
Li Handian said that since the company was restructured in 2000, the company has not paid a dividend. “Not to mention dividends, we are not even willing to build an office building.” Although his office is still in a “shabby” small bungalow, Li Handian is quite generous when it comes to buying equipment.
The best cotton spinning spindles in China only cost more than 30 yuan each. He was cruel and imported 250,000 cotton spindles from abroad at 136 yuan each. This alone cost the company more than 20 million yuan. But what Li Handian was thinking about was: Only when the equipment is better can the product quality be improved and the added value be higher. “Some products can be sold for thousands of yuan more per ton.” “From 2005 to now, we have invested nearly 90 million yuan in technological transformation and industrial upgrading. When the crisis comes, the effect of these investments will be even greater. It’s obvious. For example, the ‘irregular slub yarn’ project we are implementing has only two or three competitors in the country. No, we have just received an order of 2,500 tons from a company in Fujian, and the net profit after tax can reach 10 % or more.”
At the beginning of this year, Hongye Textile also jointly developed soft yarn with a Japanese company. This product has an extremely delicate feel and is specially used for knitting high-end underwear. It is the first of its kind in China. Currently, samples of this soft yarn have been produced in Japan and will be launched on the market soon. Li Handian revealed that the pricing power of this product lies with China, and the added value of the product is much higher than that of ordinary products, and Hongye has signed a 10-year contract with Japan…
Li Handian is “spending money.” A master of it, he is also an expert in saving money. As a large consumer of electricity, Hongye Textile consumes about 4,000 kilowatt-hours of electricity per ton of yarn produced on average. In one year, it uses more than 90 million kilowatt-hours of electricity. “Originally, a Taiwanese company offered a price of 16 million to carry out energy-saving renovation of the company’s internal water and electricity system. As a result, we took care of the matter ourselves and spent more than 8 million.” Li Handian said that the electricity bill alone can last for one year. Save more than 14 million kilowatt hours of electricity and save more than 8 million yuan in costs.
Stable workforce is the prerequisite for making good products
Regarding the situation faced by textile enterprises, Li Handian believes that 2009 will be a difficult year. With the introduction and implementation of the details of the national textile industry revitalization plan, the textile industry will get a chance to breathe, and the market will slowly recover. “But for now, the most important thing for companies is to survive and think…How much profit can be realized is unrealistic. “Li Handian said that during the special period of financial crisis, we should do everything possible to ensure the normal operation of enterprises. The company has orders and work to ensure that employees are not laid off or unemployed. If the enterprise can operate, the workers will have food. This is basic. , is also urgent. “So far, we have been producing at full capacity without laying off a single employee, and with the increase in orders, we have also increased some production capacity and recruited more than 120 new employees. “Li Handian said that although the company’s profits have declined compared with before the crisis, the company not only did not cut workers’ wages, but also increased their wages by 100 yuan per person per month last year. Not only that, but also for the hundreds of selected technical workers. Models and technical experts can also receive technical subsidies of 200 yuan and 100 yuan per month respectively. “For textile enterprises, it is very important to have skilled workers, especially skilled technical workers. At this time, the more companies need cohesion and the confidence that everyone needs to overcome difficulties together. “Li Handian said.
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