Huacheng Group: "One Body and Two Wings" Strategy Supports "Take off Dream"

Newspaper content: In January today, Huacheng Group achieved sales of 111 million yuan, a year-on-year increase of 95%, profits and taxes of 7.963 million yuan, a year-on-year increase of 102.6%, and achieved a good start in the first month of the Year of the Goat - Huacheng Group: "One Body and Two Wings" strategy to support the "Dream of Ascension"

A few days ago, when the reporter walked into the production workshop of Jiangsu Huacheng Group Co., Ltd. located in Tangqiao Town, he saw a spacious and bright workshop, where bright large diameter thick wall seamless steel pipes were passing through various automatic equipment production lines, sparks were flying, and the scene was in full swing... Jiangsu Huacheng Group still maintained a good momentum of development under the continuous downturn of the steel market. In January this year, Huacheng Group achieved sales of 111 million yuan, a year-on-year increase of 95%, profits and taxes of 7.963 million yuan, a year-on-year increase of 102.6%, and achieved a good start in the first month of the Year of the Goat.

Huacheng Group was founded in 1997. After 18 years of hard work, it has grown from a professional steel pipe manufacturer when it was founded to a comprehensive group company with businesses involving steel pipes, rare metals, building materials, aviation ground handling equipment and other fields. Its main business is to produce seamless steel pipes of various specifications, high, medium and low pressure boiler pipes, alloy pipes, etc. The group company has maintained long-term and stable cooperation with well-known automobile manufacturers such as Changchun FAW, Shanghai Volkswagen, American (Shanghai) General Motors, and chemical industries such as Lanhua and Landian. The products are exported to Europe, America, Australia, Southeast Asia and other places, becoming a high-quality material supply base designated by customers in more than 20 countries and regions such as the United States, Britain, Belgium, etc.

Science and technology are the primary productive forces. Huacheng Group has established Jiangsu Research Center, Suzhou Enterprise Technology Center and other scientific research carriers, as well as a post doctoral innovation practice base in Jiangsu Province. While relying on its own R&D, the Group has accelerated the promotion of R&D process with the help of social resources with technological advantages. It has established long-term and stable scientific research cooperation with Nanjing University of Aeronautics and Astronautics, Shanghai Power Generation Equipment Complete Design and Research Institute, Anhui University of Technology and other scientific research institutions, comprehensively leading technological innovation and industrial progress. In the past three years, through continuous research and development, we have obtained 12 invention patents, more than 40 utility model patents, and more than 20 high-tech products. We have also participated in the drafting of national standards and industrial standards for many times. In 2015, we took the lead in drafting the national standard of Cold drawn or Cold rolled Seamless Steel Tubes for Automobile Stabilizers, filling the national gap.

Industrial product structure transformation, seeking new breakthroughs in high-end market expansion. In the second half of 2014, Huacheng Group supplied two batches of samples of Japanese Bueyue Nazhi Bearing, which were all qualified through the data inspection of the other party, and are ready to enter into the next stage of substantive cooperation; At the same time, the on-site evaluation of SKF in Sweden has been started, and new progress has also been made.

Salon Company effectively revised the production process of Shanghai Zhongxing and other important customers, and the operation effect was good after the improvement, which well guaranteed the physical quality of products and various index requirements of key customers. The product KY590 developed by Salon passed the evaluation of the headquarters of KOSCO in February 2014 and obtained the time production permit; At the same time, the technical problem of high production disqualification rate has been solved. Rely on basic management to enhance the competitiveness of enterprises. Heterogeneous companies are enterprises that rely on management. Last year, the per capita efficiency was close to 300000, and the tax paid was more than 10 million yuan.

Whether an enterprise can successfully transform and upgrade and occupy the commanding heights of the industry is related to the future and destiny of the enterprise. In October 2014, Huacheng put forward new ideas for new layout and secondary entrepreneurship in special periods. In 2015, the board of directors of the joint-stock company made a decision on implementing the strategic adjustment of "One Body, Two Wings, Second Entrepreneurship" to break through the bottleneck of development and accelerate the development of the enterprise in view of the severe international and domestic situation.

Yan Jiabin, Chairman and President of Huacheng Group, vividly compares Huacheng's development strategy to that of "aircraft type". He said that manufacturing and marketing are the two wheels supporting the aircraft (the main body), and finance and administration are the balance bar and booster of the aircraft. Imagine: If there are no wings, the plane can only run underground, and only with wings can it fly in the sky.

Yan Jiabin explained that the "one body" in the "one body and two wings" refers to the main business of the joint-stock company with the existing seven wholly-owned and holding subsidiaries under the joint-stock company, namely, industry, salon, special-shaped, locomotive, Haina, Hanhua, import and export, and steel pipe manufacturing as the leading business; The "two wings" are the new carriers focused on expanding the future development space of the joint-stock company. Among them, the "left wing" is the two holding subsidiaries of investment holding and commercial factoring. Its development direction is to focus on non bank financial products and bulk commodity trade, and its development goal is to create new blood for the healthy development of joint-stock companies; "Right wing" is the business of Huazunbao Company and overseas investment. Its development direction is to introduce high-end projects and talents to research, develop and produce high-end products. Its development goal is to become an incubator and accelerator to promote the sustainable development of the main business of the joint-stock company.

"The 'second venture' refers to the new ideas and new requirements put forward by the company to increase the development stamina and break through the development bottleneck after three years of hard work, nine years of rapid development and five years of stagnation." Yan Jiabin said that under the guidance of the new model of "One Body and Two Wings", the joint-stock company will change the past thinking of pursuing low-cost expansion and large-scale development of its main business; On the basis of taking steel pipe manufacturing as the main business, we should focus on financial trade and R&D innovation at the same time. We should quickly go forward to enhance the hematopoietic function, enhance innovation ability, and quickly go forward to a new situation of enhancing the hematopoietic function, enhancing innovation ability, and achieving connotative development, so as to achieve a new take-off of the economic development of stock companies. In the past five years, sales, profits and taxes and other major economic indicators have doubled, with an average annual growth of 15%.

Adhering to the corporate philosophy of "pursuing value and committing to win-win cooperation", Huacheng is embracing the challenges of the global economy with high morale, holding high the banner of "innovation and climbing the peak". Yan Jiabin said that in the near future, Huacheng will be built into a small seamless steel pipe boutique base in China, and become one of the world's top steel pipe enterprises as a first-class brand in the industry.