The global leader in power cord components - Weihai Honglin Power Technology Co., Ltd. (hereinafter referred to as "Honglin Power") is about to land on the GEM. According to the issuance announcement, the issuance ** is 1999 yuan shares, compared with the lower value of the four values of offline investors** 2238 yuan shares, down 1068%。
Judging from the shortlisted situation, after eliminating the invalid ** and the highest**,A total of 7,748 placement objects managed by 310 investors were valid**, and the final issue price was 1999 yuan shares, corresponding to a total of 7,568 shortlisted placement objects, the shortlisting rate is as high as 9768%。
Why is the company gaining the attention of investors? Where is the future development strategy headed? On the eve of the listing, Chi Shaolin, a representative of the National People's Congress and chairman of Honglin Power, answered the above questions.
As a single champion enterprise, HongLin Power has been accelerating its development in recent years, with a compound growth rate of more than 20% in revenue and net profit in the past three years, which is significantly higher than the average of the same industry. Looking back on the entrepreneurial process, accurate industrial prediction and strategic choice undoubtedly play a key role. At present, Chi Shaolin locks the growth momentum in cross-field development and international industrial layout: cutting into new energy and laying out Southeast Asia, Honglin Power is the first to step on the rhythm of the industry's butterfly change.
The history of a single champion
The performance growth rate is ahead of its peers
In 1997, Honglin Power was established in Weihai, Shandong. At that time, it was an era when countless gold diggers were rushing, and business opportunities were gushing like springs, and Chi Shaolin was also a member of this era express. After working in an electronic processing company for 6 years, the 26-year-old noticed the development opportunities of the domestic electronic processing and manufacturing industry, which opened the entrepreneurial curtain of Honglin Power.
In the early stage of the business, Honglin Power's business model was mainly the "processing with supplied materials" model, and the scale of operating income and profit was small. However, soon, the company's business model was transformed to "self-procurement-self-production-self-sales", and quickly became a qualified supplier for LG and other brand customers, and the company's performance growth entered the fast lane.
Today, HongLin Power has firmly established itself as a leader in the global power cord component industry, leading in both R&D capabilities and operating efficiency. According to the prospectus,In 2022, Honglin Power's operating income will reach 22900 million yuan, net profit of nearly 1800 million yuan, the compound growth rate of revenue and net profit in the past three years exceeded 20%, higher than the average level of the same industry.
Looking back on this entrepreneurial past, it once again confirms the importance of business vision. From the beginning as a contract processing manufacturer to become the leading domestic merchant of LG, Honglin Power has served international customers from the beginning and has the gene of an international vision. Then, the company established its own brand in 2000, set out to establish a vertically integrated industrial chain in 2004, entered the field of new energy in 2015, and laid out overseas production bases in Thailand in 2019.
The company's continuous enrichment of industrial context and development logic is mainly based on the international vision and industrial prediction formed by years of accumulation. From the establishment of its own brand, the launch of the vertical integration of the industrial chain layout, the entry into the field of new energy electric vehicles to the global layout, Honglin Power is the earliest domestic counterparts to carry out the relevant layout. Chi Shaolin, chairman of Honglin Power, said.
At present, HongLin Power's main business includes the R&D, production and sales of power cord components, special cables, and new energy electric vehicle charging connection products, and has accumulated high-quality customers such as Dell, Haier, Hisense, Samsung, LG, TPV, Delta, HP, Xiaomi, Wal-Mart and other high-quality customers in the fields of computers and household appliances, and has become its core businessIn 2018, it was awarded the title of "Manufacturing Single Champion Cultivation Enterprise" issued by the Ministry of Industry and Information Technology。At present, the company is realizing the cross-border from the field of consumer electronics such as computers and home appliances to the field of retail terminals and new energy electric vehicle charging, relying on the long-term accumulation of cost advantages, global safety certification advantages, research and development advantages in the fields of insulation materials and charging technology, as well as the ability to guarantee supply under the support of a huge production scale and a complete industrial chain. In the future, with the blessing of international industrial layout, the company will quickly achieve high-quality growth.
Deeply bind the top customer
We have the most complete safety certifications in the industry
Strong key customer relationships are an important guarantee for the sustainable growth of enterprises. It is not difficult to see that Honglin Power has outstanding advantages in this regard. In addition to the high quality and large number of customers, these customers are basically the leading enterprises in their fields. This is not only the embodiment of the company's operating strength, but also the result of strategic planning.
The idea of our business is that when we enter a field, we must bind the head customer, because it represents the development direction of the entire industry. Binding head customers, on the one hand, the profitability of the product is good, on the other hand, in the process of cooperating with head customers, you can also continue to learn. At the same time, the company adheres to the principle of customer-centricity and down-to-earth style, and achieves common growth with customers in the process of long-term cooperation and service to customers. Chi Shaolin explained.
However, although the head customer is the "sweet and sweet" in the industry, whether or not to retain customers still depends on their ability. From the characteristics of the company's products, although the value of the product in the customer's machine accounts for a small proportion, but because it involves personal and equipment safety, it is very important, and the sales around the world must pass the mandatory safety certification of the corresponding countries and regions, which is also one of the barriers to entry in the power cord component industry, and the reason why the gross profit of the product remains stable.
HongLin Power is one of the few enterprises in the industry with complete safety regulations, and can cooperate with leading customers for global sales. At the same time, the safety certification standards are strict, the cost is high, the certification cycle is long, and the maintenance cost is high, so the customer will not easily change the best business, and the complete and complete safety certification makes Honglin Power obtain continuous growth orders.
In addition, Honglin Power also has advantages in terms of cost and R&D. According to Chi Shaolin, Honglin Power has a complete industrial chain, "simply put, our raw materials are 8 mm copper rods, chemical raw materials, and then the output is finished products, the intermediate process is our own production and processing, and the company has the ability to automate the whole process, and the cost leadership is significant." ”
In terms of R&D, Chi Shaolin said that the R&D of Honglin Power is accompanied by the R&D of large customer needs and product upgrades, and more is the improvement of raw material formula, process, product performance, practicability, green environmental protection, etc., which can quickly give back to the needs of large customers, solve the pain points of large customers, and better serve large customers.
Honglin Power is also the earliest enterprise in the domestic industry to carry out overseas production layout in Southeast Asia. The establishment of dual production bases in China and Thailand can ensure global supply capacity and avoid external risks such as emergencies. "Based on the above factors, we are deeply bound to our customers. Chi Shaolin said.
Green and intelligent integration seizes the opportunity
Realize the green and intelligent manufacturing of the whole industry chain
From the perspective of industry trends, whether it is the downstream terminal appliances or the power cord components themselves, they are developing in the direction of green environmental protection. This is not only a new growth opportunity, but also a new challenge for manufacturers, and the degree of green transformation of enterprise production and operation will largely determine the market competitiveness of power cord component manufacturers.
As far as Honglin Power is concerned, the company has taken the lead in the market in the context of the green development of the whole industry. According to Chi Shaolin,With years of industry accumulation, Honglin Power is one of the earliest enterprises in the industry to realize the control of harmful substances, and its products are 100% environmentally friendly and harmless. At the same time, HongLin Power has established an environmental management system in line with world-class customers, and is one of the few power cord components and cable manufacturers in the industry that meets the green manufacturing and green certification of developed economies such as the European Union.
In addition, with years of technical precipitation, Honglin Power has also focused on building a green intelligent manufacturing system for the whole industry chain from green design, green procurement, green manufacturing, and then to green technology, and presided over the drafting of the industry standard "Green Design Specification for Power Cord Components", and formulated green and low-carbon specifications for the whole life cycle of products. While guiding the green and low-carbon development of the industry, Honglin Power has been recognized as a "National Manufacturing Green Factory" by the Ministry of Industry and Information Technology.
As a senior doer and observer in the industry, Chi Shaolin has a new identity this year - a deputy to the National People's Congress. This year is his first time performing his duties, combined with the precipitation and thinking in the development of Honglin Power for many years, he will focus on a more long-term direction:Adhere to the concept of green and low-carbon development, reduce resource consumption, improve the renewable utilization rate of products, and realize green manufacturing of the whole industry chain. Behind the realization of green manufacturing in the whole industry chain reflects the ability and level of enterprises to carry out ESG practices (environmental protection, social responsibility and corporate governance), which can not only give rich social responsibility connotations to corporate brands, but also effectively enhance the company's reputation and social influence. "Enterprises should actively practice the concept of ESG, and actively participate in the formulation of international standards and rules in combination with China's national conditions, so as to better achieve sustainable development and independent high-quality development of enterprises. Chi Shaolin said.
Returning to the production and operation of the enterprise, the green transformation of Honglin Power continues. Chi Shaolin said that in terms of green manufacturing, the company will accelerate the upgrading of energy management capabilities in the production process, formulate green industry standards, obtain energy management system certification, increase the occupation of the new energy market, and promote the application and promotion of energy-saving and emission reduction technologies; In terms of green procurement, the company will strengthen the control of hazardous substances, and promise to the society to give priority to the purchase of products with environmental protection performance or the use of recycled materials under the same or similar performance conditions; In terms of green development, the company will actively assume the environmental responsibility for the reuse of auxiliary materials in the whole life cycle of products, be a pioneer in green and low-carbon protection of the earth's resources, and require the use of materials that can be used in packaging materials to protect the environment and achieve sustainable development.
The strategic expansion has begun to bear fruit
The pattern of "one body, two wings" has been formed
Looking to the future, Chi Shaolin is ambitious, and strives to make Honglin Power the fastest growing enterprise in the industry in terms of revenue and net profit, continuously consolidate and enhance its position in the industry, and become a global leader in power connection systems. "The development strategy and realization path can be summed up as 'one body, two wings'. ”
Chi Shaolin further explained that "one" is the foundation, that is, to continue to consolidate the company's dominant position in the computer and home appliance market, with the continuous improvement of income levels and the change of consumption concepts, computers, household appliances sales are strong, or will drive the demand for power cord components to rise steadily; The "two wings" are the development of new energy and the implementation of internationalization.
In recent years, there has been an explosion in electric vehicle sales. At present, there are five main categories of products used in new energy electric vehicles, including charging guns, charging cables, and on-board charging piles used outside the car, and high-voltage wires and charging bases in the car. With long-term accumulated cost advantages, global safety certification advantages, and R&D advantages in the fields of insulation materials and charging technology, Honglin Power has realized the crossover from the field of consumer electronics such as computers and home appliances to the field of new energy electric vehicles, and has developed customers such as SAIC-GM-Wuling, Geely Automobile, and Deli New Energy Vehicles. In the future, with the support of international industrial layout and retail channels, Honglin Power's competitiveness in the field of new energy electric vehicles will continue to improve.
Chi Shaolin said that the company will achieve rapid growth in the field of new energy with the joint efforts of dual production bases at home and abroad. In China, the company will continue to expand the supply proportion of existing customers, and take advantage of the whole industry chain and multi-product portfolio to continue to develop new customers in the fields of vehicles and charging piles; The Thailand base actively sells the company's electric vehicle charging and discharging products in the terminal retail market by utilizing the existing international retail channels. On the other hand, the company will seize the time window and actively serve the overseas bases of domestic automakers in Southeast Asia. The company's revenue from the field of new energy electric vehicles will be the fastest growing area in the next 3 to 5 years, and the proportion of revenue will increase significantly.
"Going out" is another big growth opportunity that Chi Shaolin sees. "Based on the transfer of industry and the needs of serving customers, I decided to follow the customer and choose to set up a factory in Thailand. As a result, Honglin Power has become the first company in the domestic industry to carry out overseas production layout in Southeast Asia, and this strategic plan has achieved initial results. Overcoming many difficulties such as the impact of the epidemic, Honglin Power's Thailand base achieved mass production in 2020, with a revenue of more than 200 million yuan that year and more than 600 million yuan in 2021. Through the layout of the whole industry chain in Thailand, HongLin Power has successfully developed customers such as Wal-Mart, Lloyd's Register, Home Depot, etc., and quickly entered the international terminal sales market. Honglin Power's development strategy for the Thai base is to make full use of the opportunities of industrial transfer and market redistribution to further increase the market share of the company's products in the field of computers and home appliances, and at the same time, with the Thai base, actively develop customers in the fields of European and American home appliances, kitchen appliances and power tools.
The public fundraising project is closely related to the development of Honglin Power, and the raised funds will be used for the intelligent manufacturing and capacity improvement project of power cord components, the technical transformation project of special cables and the replenishment of working capital. With the gradual completion and commissioning of the raised funds investment projects, the company's production capacity will be steadily increased, and the company's technology and brand advantages will also be fully utilized, which is conducive to further enhancing the company's sustainable profitability and market competitiveness.
Chi Shaolin said that Honglin Power will take this landing on the GEM as an opportunity to achieve rapid and high-quality development in the development pattern of "one body and two wings", and become a global leader in power connection systems.
Disclaimer: This article is ** content and does not represent the position of Red Weekly, nor does it constitute investment advice.