Shenghong Technology Modern Workshop.
Chen Tao, Chairman of Shenghong Technology.
At the end of March, Shenghong Technology (Huizhou) Co., Ltd. (hereinafter referred to as "Shenghong Technology") released the 2018 annual report on the official website of the Shenzhen Stock Exchange: In 2018, Shenghong Technology's operating income was 3.3 billion Yuan, a year-on-year increase of 35.29; net profit attributable to shareholders of listed companies was 380 million yuan, a year-on-year increase of 35.01. This is the third consecutive year that Shenghong Technology has achieved a compound growth rate (growth rate of revenue and net profit) of more than 35.
"This solid performance is enough to prove that Shenghong Technology has always insisted on using technological innovation to lead development and attract high-quality talents, which is scientific and correct." Chen Tao, chairman of Shenghong Technology, said, After entering 2019, despite the impact of uncertain factors such as Sino-US economic and trade frictions and slowdown in industry development, as the company's new projects reach production and its technological innovation-driven development capabilities are increasingly enhanced, Shenghong Technology is confident in achieving full-year revenue Growth targets are confident.
Rapid and stable growth stems from scientific and advanced strategic layout
As PCB (abbreviation for Printed Circuit Board, the Chinese name is printed circuit board, also known as printed circuit board, it is an electronic component Among the top 36 companies in the world and the top 5 domestic companies in the device support industry, Shenghong Technology undoubtedly has a decisive influence in the field of circuit boards. Walking into the Shenghong Technology factory, the drilling, electroplating, dry film, molding, testing and other workshops are all busy. A person in charge of the production line in the factory told reporters that since the beginning of this year, the company has received a steady stream of orders, and the workshop's production capacity is also very sufficient.
"In today's technological era, circuit boards are indispensable electronic components. They are called the 'mother of electronic products'. They are like the bones, meridians, and blood vessels of electronic products. Regardless of whether they are in the trade field No matter how big the differences are, they will not have much impact on the global demand for circuit boards." Chen Tao told reporters that after years of accumulation, the quality of Shenghong Technology's circuit boards has been recognized by many big-name companies at home and abroad, and after the smart factory is put into production, it has a cost-effective advantage. Further improvement, sales volume has been rising steadily in recent years. From 2016 to 2018, Shenghong Technology's compound growth rate has exceeded 35 for three consecutive years.
"The key to maintaining rapid and stable growth is that we have a scientific strategic layout, namely production layout, customer layout, talent layout and corporate culture layout." Chen Tao said that in terms of production, Shenghong With a forward-looking strategic vision, Science and Technology has laid out and built a modern park with a production capacity of tens of billions of output values. At the same time, we actively promote technological innovation, equipment upgrades, and machine substitutions to continuously upgrade the company's production and innovation capabilities. "For example, we took the lead in building China's first industrial 4.0 PCB smart factory, which greatly increased production capacity and output."
At the same time, in recent years, Shenghong Technology has taken the initiative and actively implemented its globalization strategy. Offices and sales teams have been set up in many countries and regions around the world. At present, Shenghong Technology has established solid relationships with more than 150 well-known enterprises at home and abroad, including TCL, Hisense, Skyworth, Midea, OPPO, Hikvision, Foxconn, Asus, Delta, Quanta, Cisco, Samsung, Google, and Amazon. partnership. In terms of talent layout, Shenghong Technology adheres to the "two-legged" approach of external introduction and self-cultivation, and proactively established the Shenghong Management College to actively absorb and cultivate advanced talents to provide strong intellectual support for the company's take-off.
Creating an excellent corporate culture is also an important part. Shenghong Technology continues to improve the cohesion and combat effectiveness of employees through a series of measures such as system construction, welfare improvement, and value guidance; through colorful cultural activities, heart-warming humanistic management, and attractive welfare benefits, it continuously improves employee The sense of identification and loyalty to the enterprise has cultivated a high-quality team that dares to fight, knows how to fight, and can win. At the same time, we should pay attention to party building, give full play to the political leadership role of party organizations, unite and unite enterprise employees, and promote enterprise innovation and development.
The HDI circuit boards to be produced will mainly be used in 5G mobile phones
On the basis of stabilizing the existing structure and production capacity, Shenghong Technology is also actively moving into new fields such as 5G. At present, Shenghong Technology has reserved multiple 5G customers, and some of them have begun to take orders for production. Its PCB products, mainly multi-layer boards, can be used in notebook computers, 5G network communications, automotive equipment, consumer electronics and other fields.
According to Chen Tao, in order to better plan for future development, Shenghong Technology has established two divisions: multilayer board and HDI according to different products. Among them, the HDI division, which was established recently, will have a future output value of It is expected to account for about 40% of the entire group. It is reported that HDI is the abbreviation of High Density Interconnector. It is a circuit board with a relatively high line distribution density using micro-blind buried via technology and is specially designed for small-capacity users. This product adopts full digital signal processing (DSP) technology and multiple patented technologies, and has a full range of adaptable load capabilities and strong short-term overload capabilities. It is currently mainly used in smart phones and is known as the PCB in mobile phones. Chen Tao said that the HDI circuit boards to be produced by Shenghong Technology will be mainly used in 5G mobile phones in the future.
According to reports, Shenghong Technology’s HDI circuit board production workshop is basically ready and is expected to be put into production in mid-June this year, striving to reach full production by the end of this year.
Dialogue with Entrepreneurs
Confidence helps companies cope with all challenges
Huizhou Daily: Shenghong Technology released a report stating that compared with the same period last year, operating income in the first quarter of this year was Revenue has dropped slightly. What are the main reasons for the drop?
Chen Tao: A company's revenue performance cannot always rise. Occasionally some fluctuations are normal, and this slight month-on-month decline is completely within our control and will not be affected. Businesses are impacted. To talk about the reasons, I think there are three points: First, it is affected by factors such as the macroeconomic situation and Sino-US economic and trade frictions; second, the overall growth rate of the PCB industry has slowed down; third, the revenue performance of Shenghong Technology in the first quarter of last year was the highest in recent years. The best performance was when the revenue was 828 million yuan, an increase of 8.526% compared to the 447 million yuan in the first quarter of 2017. Therefore, if we compare it this way, it is understandable that such a slight decline occurred under such a large base last year.
In fact, judging from the performance of the same period in the past four years, Shenghong Technology's performance in the first quarter of this year still has many bright spots. Take net profit as an example. In the first quarter of this year, Shenghong Technology’s net profit attributable to shareholders of listed companies reached 96.91 million yuan. Even compared to last year’s high base (88.13 million yuan), there was still an increase of 9.96%. This is a Highlights.
Huizhou Daily: You just mentioned that the fluctuations in revenue performance in the first quarter were objectively affected by factors such as Sino-US economic and trade frictions and the overall slowdown in the growth rate of the PCB industry. In the current relatively complex market environment, how does Shenghong Technology respond? How do you boost corporate morale and confidence?
Chen Tao: Confidence is something I have always emphasized. As I said just now, Shenghong Technology’s confidence is not empty talk. I am a soldier, and I have the unique strength and tenacity of a soldier. This spirit has also been instilled in me into the corporate culture of Shenghong Technology, helping us to concentrate on facing all challenges and difficulties. Moreover, after the establishment of Shenghong Technology, we have already experienced the impact of the global financial crisis in 2008. The company not only survived, but also got better and better. It was listed on the Shenzhen Stock Exchange in 2015, so this is difficult at the moment. It's nothing.
At the same time, we have a clear understanding of the PCB industry and its development prospects and market potential, because PCB products are essential accessories in the electronic field. Our products are not only high-quality, but also cost-effective. There is no reason not to be favored by partners.
In addition, many years ago, we have made scientific strategic planning for corporate development, and have made advanced layouts in multiple aspects such as technology, production capacity, customers, talents, corporate culture, and funds, laying a good foundation. In recent years, these foundations have been continuously consolidated. Therefore, when we have multiple advantages such as advanced factories, high-quality products, leading technology, and customer trust, we believe that all difficulties can be easily solved.
Huizhou Daily: Currently, Huizhou is accelerating the construction of a first-class city in the country. As the helm of a large listed company, what suggestions do you have for our city's urban construction, technological innovation, real economy development, capital market development and utilization, etc.?
Chen Tao: I believe that to build a first-class city, we must achieve "three good things": good planning, good design, and good construction. A first-class city must have first-class urban planning, including urban layout, basic supporting facilities, and transportation facilities. I suggest that Huizhou cooperates with world-class planning and design institutions to develop the development framework for the next 30 years in advance with forward thinking. good. Good design and construction can only be achieved based on good planning. For example, if a five-star hotel is planned and designed, it should be constructed by a first-class builder.
In terms of technological innovation and enterprise development, I think there are three points that deserve the attention of government departments: First, we should pay more attention to the pain points of the majority of enterprises, help them find the sticking points and solve them quickly, so I suggest Establish a large database of enterprise survival dynamics to fully understand what enterprises are doing, what they need, and what difficulties they have; secondly, we must pay more attention to large enterprises such as listed companies. After all, they have advantages in technological innovation, enterprise management, etc., and There is no shortage of money, so we must pay more attention to their needs, provide good services, let them develop in Huizhou with peace of mind, invest more in new projects in Huizhou, make more contributions, and prevent "rich water from flowing to outsiders"; third, we must seize The historical opportunity of the construction of the Guangdong-Hong Kong-Macao Greater Bay Area is to proactively embrace advanced cities such as Hong Kong and Shenzhen, and strive to attract more innovative elements and industries to Huizhou.
Reporter Observation
A high-quality business environment inspires enterprise development confidence
Huizhou, home to many well-known PCB companies such as Shenghong Technology, is known as a PCB production center called. It is no accident that Huizhou can attract so many PCB companies to take root and develop. The words of Chen Tao, chairman of Shenghong Technology, are very representative. He said that at present, in the entire Pearl River Delta, Huizhou has outstanding advantages in land, space, transportation and other aspects, which is conducive to the long-term development of large enterprises. At the same time, in recent years, Huizhou has paid increasing attention to the creation of a high-quality business environment, and the government's support and service capabilities for enterprises have continued to improve, allowing many enterprises to feel at home in Huizhou. For example, he said that in recent years, through the implementation of the chief service officer system, especially since the launch of the "through-train" activity to solve corporate difficulties, the communication channels between enterprises and the government have been unobstructed, and many development problems reported by enterprises have been effectively solved. Quick resolution.
“Carrying out technical research and producing high-quality products is definitely the business of the enterprise itself, but when it comes to land, water, electricity, supporting services, financing and other needs, it is inseparable from the support of local governments. So I often say that confidence comes not only from the company’s own technology and products, but also from the development environment of the city and industry where the company is located.” Chen Tao said that looking into the future, Shenghong Technology’s strategy of taking root in Huizhou will not change. "I believe that by 2022, Shenghong Technology will work with Huizhou to witness the company's 10 billion dream."
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