This is an industry that uses "Feng Rui" as a selling point. However, only sharp, but often "the front is not forever, the sharp is easy to fold." "When a worker wants to do something good, he must first sharpen his tools." This manufacturing tool company seems to have realized the "machine" of the "machine" earlier, both its external needs and its inner drive. NANTONG DONOR COMPANY LTD , https://www.ntdonglan.com
On October 23, 2009, Boshen Tools disclosed in the third quarter financial report that various financial data were not expected by the shareholders, despite the financial crisis.
The adverse effects of the raging, still achieve a profit growth of 2.04% over the same period last year, especially in the third quarter, net profit increased by 24.84% over the same period last year.
This figure gives the chairman Chen Huai-rong a sigh of relief. In fact, through the busyness of the airport, he has already felt the information of recovery. On August 21, after a long period of five years of hard work in Boshen and finally became the first private enterprise in Shijiazhuang to land in the A-share market, Chen Huairong He has not stopped running, he frequently travels to Shanghai and the United States to find more development opportunities for companies that are on the new platform of capital.
In this issuance, Boshen Tools raised a total of 499 million yuan. This is undoubtedly enviable in the current financial crisis and the lack of funds that plague many companies.
growing up
In 1994, the five employees of the state-owned Shijiazhuang Coal Mine Machinery Plant, led by Chen Huairong, all spent 300,000 yuan on the road to entrepreneurship. The project they chose was not known at the time, let alone the production technology. And standard diamond tools.
The diamond mentioned here is synthetically made of carbon. It is the hardest substance in the world. It is added to the sharp parts of the metal tool, such as the sawtooth on the saw blade, by the process to increase the hardness into a diamond tool. Diamond tools are the only high-quality and efficient tool for processing hard and brittle materials such as stone, glass, ceramics and concrete pavement.
The difficulty of starting a business is inevitable. In fact, the performance of 6 million yuan in sales revenue in the first year, so that Boshen's entrepreneurs are always full of enthusiasm when recalling the past.
Afterwards, the development was equally strong. By 1999, as the technology was updated to the third generation of “laser weldingâ€, Boshen has jumped to become the domestic industry leader. After entering the international market after 2000, the products successfully entered Europe, America and Southeast Asia. Today, Boshen Tools has developed to more than 1,800 employees, covering more than 2,000 varieties of “cutâ€, “drill†and “grinding†products, with an annual sales income of nearly 400 million yuan.
When Boshen was just put into production, the market was basically occupied by Japanese brands. Although there are many companies producing similar products in China, most of them are mainly counterfeit Japanese goods, and the prices of products are low and bad. The real Japanese goods are very expensive. "For example, our first saw blade product, made to sell more than 40 yuan, the profit has been quite rich, but the same thing, Japan has more than 200 yuan." The person said.
Too many fakes are too bad, really too little and too expensive. This kind of chaos has allowed Boshen to find his own living space, which is to seriously build his own brand. When their carefully developed products were put on the market, they quickly won the "cut sharp, low price" reviews with excellent price/performance ratio, and gained a firm foothold in the market. More importantly, this field has for the first time the concept of “domestic goodsâ€.
With the sharp penetration of products into the market, Boshen has maintained a 30% annual growth for many years, of which new product revenues accounted for more than 35% of the year's operating income. Therefore, many of the titles it has received are related to this, such as “2007 China's Top 100 Growth Enterprises†and “2008 China's Most Growing Private Enterprisesâ€, such as “Forbes 2009 China Potential Enterpriseâ€.
Sharp weapon
In fact, the threshold of the diamond tool industry is not high, the degree of marketization has long been full or even excessive competition, and the low degree of integration has led to numerous companies, large and small, scattered, and Boshen’s position as the industry’s leader, and far from achieving monopoly market share. . In such an industry, Boshen created a "high threshold" for himself with many actions that were once considered to be mavericks and even risky.
In 1996, they officially registered the “Bo Shen†trademark and designed the corporate logo. At that time, their peers were mostly immersed in the “good days†when the market demand soared and they could easily sell things.
Around 2000, the domestic market was still under-supplied, and Boshen vacated funds and manpower to enter the international market. To this end, it did not hesitate to spend tens of millions of dollars to buy the world's most advanced equipment from Germany, research and development and production of low-end products that domestic enterprises are rarely involved at the time.
They not only took the lead in passing the ISO9001 quality system certification, in order to make the management norms transparent, and in 2003 introduced the world's advanced ORACLERP management system, all the latest data such as warehouses, financial information, and authorized management personnel can be read at any time.
The success of any enterprise can sum up many factors: the market environment during the rising economy, the development of independent brands, the emphasis on technological innovation, the active introduction of talents, the persistence of the main business to avoid blind diversity, and so on. Boshen is no different, but it seems that it is not enough "in the inner layer." What is it that allows Boshen to rise in the industry despite the same environment and starting point?
Some details are worth paying attention to. According to reports, at the beginning of the venture, the five founders of Boshen agreed to each other: never allow their relatives to enter the corporate management team. The purpose is to avoid familyization and to maintain a simple management and management relationship within the company.
One of the words that Chairman Chen Huairong often said was “simple and foreverâ€. The simple hope of employees is that “personal relationships are simple, and job promotion is entirely based on performance evaluationâ€. Summarizing the development history of Boshen for 15 years, the company also has its own simplicity, that is, it has no hesitation to adhere to the road of specialization, and is not moved by the "scenery" along the way.
During the development process, several original shareholders continued to give up their own equity to the newly introduced management personnel, gradually forming a shareholding structure in which the majority shareholder is controlled and the management is balanced.
In 2003, just as the international market was developing smoothly, Chairman Chen Huairong announced that he would no longer serve as the general manager. The other four founders also withdrew from the management level and became the “hands-on†directors, giving the company’s management rights to the profession. The team of managers has opened up an era of management by professional management teams.
As long as he is not on a business trip, Chen Huairong still goes to work on time, but he basically does not ask about specific business affairs. For his duties, he sums it up: lead the way, use the right people, and divide the money.
The unsatisfied development goal, the continuous innovation of business ideas, and the effective management system can be described as the real "tool" of Boshen tools. "If you want to do something good, you must first sharpen your tools." The manufacturing tool company seems to have realized the "machine" of the "machine" earlier, which is both its external demand and its internality. The driving force for growth.
future
Boshen went public, which lasted for 5 years and was full of twists and turns.
From the preparations started in 2004, there was originally a good time in a bear market: the CSRC was more inclined to the manufacturing and retail industries. However, from 2005 to 2006, new shares were suspended due to the share-trading reform. Later, in August 2008, the A-share market closed its IPO due to a bear market, which caused the listing process to stop twice and was delayed until August this year. 21st. A middle-level cadre who participated in the preparations for the listing, sighed, "It is really long and hard."
The funds raised by the issuance of the stock will be invested in three projects including high-performance laser welding professional diamond tool technology transformation. After the completion of the project, Boshen will further consolidate the lucrative mid-to-high-end product market, which will play an important role in adjusting the product structure and occupying the commanding heights of the industry in the future.
After the listing, Chen Huairong preached at the company's middle-level meeting. The next step will be to introduce a large number of talents, and strive to achieve "spurt-type" development, giving investors a perfect answer.
However, under the light, the hidden worry is still there.
The first is anti-dumping. On November 12, Boshen Tools officially disclosed the information. According to the US International Trade Court's ruling, the US Customs will impose a tariff deposit on the products involved in accordance with the anti-dumping tax order promulgated by the US Department of Commerce at a rate of 35.51%. From the 23rd of the month. As of September, the amount of products involved in the project was 17.89 million yuan, accounting for 6.75% of the company's operating income.
Second, manufacturing is directly related to the economic prosperity index, and the tool industry is the representative. In the past 15 years, one of the important reasons for Boshen's rapid growth was to catch up with the "blowout" of China's market economy. The second is to gain access to the international market after entering the 21st century, and it is also in line with the economic upswing cycle of the world, especially Europe and the United States. . However, today, when the global financial crisis and the resurgence call are still unclear, the slowdown in market demand will constitute an important external environment for enterprise development.
For Boshen, it is gratifying that China is one of the largest markets in the world, and the important “export†of 4 trillion state investment is infrastructure. Boshen is focusing on the product structure adjustment, extending the diamond tool to its downstream applications, such as electric tools represented by small construction machinery, and will have the opportunity to share this huge market.
In addition, any changes in the market environment from the outside often lead to the integration and restructuring of the industry. It seems that Boshen, who has insisted on internal development for many years, seems to be stronger than the industry in which it operates.
Annual income of nearly 400 million decoding Boss tool brand growth history
Abstract This is an industry that uses Feng Rui as a selling point. However, only sharp, but often "the front is not forever, the sharp is easy to fold." "If you want to do something good, you must first sharpen your tools."