First, the current state of the industry: people in the industry know that new materials, new energy, information is now our three major pillars of high-tech industries, and new materials, this industry is often the basic platform for related industries. With the platform of new materials, then our related industries, whether IT or genetics, or the group's manufacturing industry in order to have innovative breakthroughs, in order to have significant development. But new materials are also many difficulties, a variety of very complex, it is difficult to summarize all the business points in one sentence. The second new materials industry entry threshold is relatively high, to have a high level of knowledge, experience and accumulation, in order to get in. Thirdly, the investment is large. Uncertainty is also very strong. Although its profitability and product life cycle is relatively long, the risk is not low. Various countries have done a very good job of investing in and keeping secret the core technology of new materials.
We said that China and other developed countries have invested heavily in the field of new materials. Let's take a look. The United States, there is a 0271E materials and electronics technology, as a fundamental industry to focus on the cultivation and development. Germany, a cross-century materials research program. Japan is to new materials as the lifeline of scientific and technological development. Our country's government also has a lot of input and many projects including "863" Natural Science Foundation, and 963 Torch Program, but our face a little broader, less concentrated than the United States, Germany and Japan, the intensity of the natural than them.
In these years, under the support of the national program, our enterprises have made a lot of efforts to form a number of results with independent intellectual property rights. Including nanomaterials, superconducting materials, etc., in some areas have reached or close to the advanced level. In the transformation of the results, not only become the results, but also into commodities, products, electronic components, aluminum electronics, etc., and already have a very high industry.
From the steel industry, rare earth materials, I contact these two industries, many people say China is a big steel country, not yet a strong country, but this word may have some water, in fact, China's equipment in the iron and steel industry, technology, technology has been at the forefront of the world, not only is it the volume is the world's first, which is the so-called continuous casting, continuous rolling, and so on, as well as the strength of the super steel Has a very important position in the world. China is a rare earth country, its rare earth materials have also been the world's first.
What is shown here is that from basic equipment to products to computer hard disk of nuclear magnetic **** vibration, completely Chinese people do it by themselves, do all the process by themselves. Software materials are also the same, especially in some sensitive materials, high precision, like Shenzhou series, etc., are relying on the development of soft magnetic materials.
This amorphous technology, which is both a materials revolution and an industrial revolution, is now fully within 15 meters of us. The shortest process from smelting to casting, to automatic charging per second is 25 meters of line speed, 1 million degrees per second cooling speed, this is an industrial revolution.
Second, because of the cooling speed of 1 million degrees per second, so the metal is too late to crystallize, so the formation of amorphous. So completely different from the unusual metal materials, we can use this material to do a lot of articles, mainly in two categories, the first is the power system distribution transformer energy saving. It replaces the transformer made of silicon steel sheet can make the loss reduction of 75%. Small mechanization is also very widely used. Wang Xiaolan, president of the Association of Private Enterprises, uses it for their welding machines. In the past, it was the world of GE and foreign companies, but now we can also do.
The second environment has also changed significantly. In the past, the Chinese government, including our countrymen on environmental protection, energy awareness is not particularly strong, always think China is a vast area, always think we have endless energy and resources, but the fact is not so, over the years, the rapid development of China's economy, is indeed at the expense of the environment and resource overconsumption as the price, both the government and our people, have begun to realize that these problems, especially the The Chinese government has put forward a scientific concept of development and a medium- and long-term plan for scientific and technological development, which has become a national **** knowledge from the leadership's consciousness.
We advocate the circular economy of the 21st century, the output of total energy and resources to the final waste, the output of products, and the gradual need for recycling. This new change in China, our processing procedures, our processes, the middle of the logistics consumption, energy consumption greatly reduced.
For example, I come from the steel industry, I give you another example, Shougang is a large enterprise in Beijing, Shougang is now and Tangshan Steel is ready to build a new first-class steel plant in Gaobeidian, Hebei is so, this itself is already very advanced. Continuous casting, continuous rolling and finally directly out of the product, but now now under the concept of circular economy is not enough, the first he has to eat 14-18 million waste plastics. The second it can eat 1.2 million tons of scrap steel. At the same time it uses its coke ovens and blast furnace gas to generate electricity, can send 1.2 million kilowatts, and its by-products can also provide 3 million tons of cement plant, so in accordance with the concept of circular economy, both business and society are trying to implement, and indeed fruitful.
The international environment in addition to its monopoly on energy, resources and technology, in fact, this non-tariff barriers to our Chinese enterprises, especially the oil export prospects of Chinese enterprises is also a relatively large threat. On our entire from product development to production to the final sales and packaging have made strict regulations, you can not meet the standards, you can not enter Europe, North America. So we, as enterprises, may have to be based on changes in the environment, based on changes in government guidance to plan our strategy. We are so considered, although we have 50 years of research history, but today's research and the past research is very different, yesterday's research is in the government system, according to the instructions of the state, according to the form of planned economy, now we want to enter the market, so we have to correctly understand the relationship between science and technology, although there is a relationship, but it is not exactly the same, but also can not be rushed, but also Respect for the laws of science and technology, especially in the combination of human resources, we used to clear the master's degree, PhD, but we have to do today's innovation, especially valuable independent innovation, there must be a certain combination of human resources, there should be experts in business management, engineering and technology experts, high-quality skilled workers, coupled with scientists, in order to complete the enterprise's innovation.
Especially over the years, we appear a high frequency word is technological innovation, technological innovation in our past concept always think it is a new idea, on the realization of this technology, in fact, is not so. There are many meanings. It is actually from the concept, should be from the laboratory technology to intermediate experiments to large industrial production and finally become a product, in turn, to support the progress of scientific research, which is a whole cycle of technological innovation.
From the research institute into this kind of enterprise, we put forward so many ideas, our concept of technological innovation and research and development can not run after the lamb, can not become samples, exhibits and gifts, you have to have the requirements of innovation, you must have something new, you have to be innovative to get the recognition of the community, and finally realize the creation.
Secondly, we have a large number of projects on the subject of the project, about 5% of sales revenue to be used for independent innovation projects. This topic must be the project market-oriented, internationalization of the goal, the results must be commercialized. Management mode, like our past units, that are self-sustaining and strong, big and small things are my own work, and now take the new pattern and mode of openness and cooperation, mobility and competition, free and orderly.
The strategy is also to open up. Reflect this openness and flow in order to have the value of innovative products out, here I show a few products, the first is the IC furnace, in the past only the Japanese can do, and now we are through the integrated innovation, completely take. The second is the welding wire, in the past it was also controlled by the Japanese, now we can realize it completely through independent innovation, the whole process of design and production. High-temperature aluminum alloy, mainly for aerospace, aerospace technology development, based on the level of high-temperature aluminum alloy.
Especially in the past, we are from the inward-looking major and minor things by ourselves, and now signed a strategic cooperative relationship with the relevant colleges and universities.
From a research institute into an enterprise, the national task not only did not reduce but increased, because our goal and the government's goal is the same, the government's goal through its investment to attract more investment, and through the development of high technology to achieve industrialization. Our research and development is to launch a steady stream of technical achievements, a steady stream of new products and the government's goal is completely consistent. Therefore, we have received more support, which we did not expect in the past.
Especially at the beginning of this year, by the Ministry of Science and Technology and other five ministries and commissions jointly recognized as China's first batch of state-level enterprise technology centers, which provides us with a broader outlook. Through these efforts, also formed some social status, the key is to bring the improvement of economic benefits, in the past I was in the Iron and Steel Research Institute is always that a little bit of subject matter and income hovering, there are one hundred million, two hundred million of inputs feel that it has been very good, because it did not want to make it bigger, unlike the enterprise has a creative impulse, and now it is precisely because of us in the Iron and Steel Research Institute of the promotion of sustained scientific and technological inputs and independent innovation Its performance has also had some improvement, of course, and other industries can not be compared, but with my own as a research institute, a group of students to compare, the development is still relatively fast. From two or so, this year certainly to more than 2 billion, profits and total is also synchronized growth.
Can there be a return on the research organization? I think it is certainly. Iron and steel research institute as our controlling shareholder, the original investment is 110 million, and now it is held in the economic output of Antai technology is 600 million. At the same time these years the dividend cash has been 1.7 billion.
Fourth some thoughts and suggestions. Of course, our enterprises have the characteristics of each enterprise, but also each enterprise's unique way of thinking and response mode, I do not speak specifically here. I just want to say one thing, although now is a market economy, although our enterprises have become the main body of independent innovation, but the road of innovation is very long, sometimes very difficult, just now Mr. He said, I agree, the need for the government to continue to pay attention to, continue to promote, and even play a certain role in guiding, so in this talk, I hope that all levels of government can be in the process of the market economy, and also to reflect the needs of the enterprises, do not determine the enterprise For the core of independent innovation and the main body you want to do it yourself, I'm afraid it can not be so, because the creation of the environment, the orientation of the grasp are needed. Now the various ministries and commissions name a lot, but the coordination between the name and the ultimate goal of consistency, I think there may be debatable, so the ministries and commissions of science and technology, industrial programs should be strengthened articulation.
The second industry has the government to step in and establish an effective mechanism for enterprise-led, higher education and research institutes to collaborate. Now each has a high degree of awareness, but the operation is often not so. Especially enterprises and colleges and universities, enterprises and pure research institutes between the division of labor and interaction, as well as coordination needs the government to step in. In addition to build a certain software platform. Our products to the United States, to the European Union, not only to the tax barrier, and non-tariff barriers are really very strong, including anti-dumping, including a variety of certifications, we are very restrictive, in turn, their products into China, we feel that the government's role in this regard seems to be not particularly enough. We hope to strengthen the role of industry associations to deal with foreign anti-dumping lawsuits, break through the "green barriers", if necessary, China should be based on our environment, our resources, our market characteristics, the design of non-tariff barriers and industry standards.
Another hope is to strengthen the cultivation and support of science and technology-based small and medium-sized enterprises (SMEs), and to establish a long-term mechanism for the cultivation of SMEs.