Recently, a delegation from Nottingham University Business School China (NUBS China) visited some of Ningbo’s individual champion enterprises and industrial communities, investigating their development and problem-solving experience post-COVID-19, to search for experiences and inspiration that turn crises into opportunities.
The delegation first visited Ningbo Kongfoong Materials International Co., Ltd. (KFMI) located in Yuyao’s economic development zone.
As soon as they entered the company’s lobby, they were drawn in by a spectacular wall filled with the company’s patents. Hundreds of shining patent certificates covered the entire wall, demonstrating KFMI’s world-class level of technology.
KFMI’s development of an ultra-fine metal sputtering target material closed a technology gap in China, ending years of dependence on imported products. KFMI is also world-leading in bulk use of 7nm FinFET (FF+) technology in large-scale integrated circuit production, helping China gain a competitive advantage in the global market for electronic materials.
KFMI’s products are used in many countries and regions by well-known semiconductor, panel display and other firms, such as Taiwan Semiconductor Manufacturing Company, a firm that ranks second globally in terms of market share.
Although affected by the COVID-19 crisis this year, KFMI, which relies on independent innovation to overcome challenges, has risen against the trend. The company has been especially busy with production orders, and they are expecting a year-on-year increase of 50% in net profit for the first half of 2020.
In Jiangbei District’s High Technology Industrial Park, Solartron Technology, a company which entered the Science and Technology Innovation Board last year, experienced a rapid growth period through independent innovation, technology research and development ability.
The company’s key products include reflective film, optical base films, backing base films and other special functional films. In particular, reflective film is the company’s star product, with the company’s market share in this area ranking first in the world, breaking a previous monopoly of foreign manufacturers in this field. Hence, Solartron has become the leading company in the global reflective film industry.
When the COVID-19 pandemic began, the industry’s level of caution increased, making some buyers reluctant to purchase from small and medium-sized enterprises. However, Solartron has mastered its core technology and possesses high brand recognition, thus, its factory has been maximising operations since reopening to fully meet their orders.
“This year, the company’s orders increased rather than decreased.” As a company official explained, a product’s core competitiveness lies in the ability to bear the impact of the epidemic. Through market transitions, products with a great competitive advantage will gain increased preference.
At Loctek Co., Ltd. Healthy Lifestyle Experience Hall, its chairman Xiang Lehong recently had a video conversation with Chinese Premier Li Keqiang, where he passionately presented his liftable office desk product and other popular web celebrity products in the company’s portfolio. This attracted the curiosity of the visiting researchers and many others who were extremely impressed by Loctek’s creativity.
At Loctek’s factory, highly automated production lines are busy, operating smoothly, producing popular ‘web celebrity’ products ready to be shipped to other cities in China and other countries. Extensive construction to expand factory space is underway to satisfy the demands of increasing orders.
Loctek‘s overseas warehouses are eye-catching. Establishing overseas warehouse facilities is becoming mandatory for e-commerce firms doing cross-border transactions, as more online consumers are becoming picky about delivery timings, according to a recent report. Overseas warehouses allow companies to store some goods in their target markets, a strategy that can significantly reduce delivery time, package damage rates and loss rates during transportation.
At Ningbo ZDM (Zhenzhi) Machinery & Mould Co., Ltd., Corporate Manager Liu Jin led the delegation on a tour of the factory plant, reflecting on the Chinese President Xi Jinping’s visit three months ago and his three stops around the factory.
Walking in the busy factory while also following the route previously taken by President Xi, the delegation was amazed by the company’s capabilities. ZDM is a representative of the “small but potent” companies in the Beilun Lingfeng Industrial Community. As the “National Casting Mould Standard Demonstration Base,” Lingfeng Industrial Community’s Daqi High-End Automobile Mould Park has 78 companies, 20,000+ employees, with an annual production value of over 20 billion RMB. It is truly the largest casting mould production area in China.
At the community’s café, the researchers asked many questions such as “As an industrial community, how do you manage the lifestyle services of corporate employees? Who would you turn to for social issues?” In response, the community’s manager expressed that lifestyle services have been aligned with government planning, such as schools for the community. Any conflicts are discussed and resolved in the café. When a company has new and higher needs which require provincial and municipal departments’ help, the community plays a leading role, explaining their needs to each department. Some leading companies also proactively participate and form subgroups to help small and medium-sized companies to solve similar problems. Furthermore, employees with special skills can also participate in building a better community.
“These companies provide valuable experience for other companies”, said Professor Martin Lockett, Dean of NUBS China, after the tour, “Their innovative spirit allows the companies to face crises with flexibility and adaptability. A focus on both technology and service means that small and medium-sized Ningbo companies can be ranked first or second globally in specialist markets”.