ISH China Heating Exhibition concluded successfully at the Beijing New International Expo Center. As one of the exhibitors, Chunhui Smart Control showcased its latest products, including the integrated zero-cold-water pump water control valve and the intelligent sterile fresh water heat exchange station, attracting a large number of professionals and companies for visits and consultations. It is understood that this exhibition attracted professionals and companies from all over the world, with exhibits covering multiple fields such as energy, water, and comfort, presenting the latest technologies and products.
Chunhui Smart Control's products, such as the integrated zero-cold-water pump water control valve and the intelligent sterile fresh water heat exchange station, received enthusiastic attention, demonstrating the company's leading technologies and solutions in intelligence and integration, and winning recognition and praise from many customers. This exhibition provided an excellent opportunity for the company to connect with global professionals and enterprises, understand market demands and trends, and also enhanced more people's understanding of the Chunhui Smart Control brand and products.
Looking to the future, Chunhui Smart Control will continue to focus on market demand, continuously innovate and improve product quality and performance, provide customers with more intelligent and integrated solutions, and jointly promote the development of the heating and air conditioning systems field.
Adhering to the concept of unlimited innovation, Chunhui Smart Control is committed to providing customers with the perfect crystallization of wisdom and hard work. The company's R&D journey never stops, and every showcase is a testament to continuous progress. Chunhui Smart Control will welcome every customer with full enthusiasm and professionalism, working together to create a better future!
Looking forward to better products, see you again in 2024!
On the afternoon of October 24, 2022, the company held the 13th meeting of the eighth Board of Directors, where the proposal on appointing the company's general manager was reviewed and approved. Mr. Liang Baisong, the former general manager, resigned from his position due to age reasons, but will continue to serve as the company's vice chairman, a member of the Board's Strategy and Development Committee, and a member of the Audit Committee; Mr. Yu Junbiao was appointed as the company's general manager.
Chairman Yang Guangyu first reviewed the company's operating conditions at various stages since its establishment, highly praised the achievements made under Liang Baisong's tenure as general manager, described in detail the future strategy, goals, and development path, and put forwardre-entrepreneurshipa firm determination, hoping that the management team, under the leadership of General Manager Yu Junbiao, will not fear challenges and achieve leapfrog development.
Subsequently, former General Manager Liang Baisong made a statement, summarizing the main business work of the past ten years, expressing hopes and requirements for the new management team, and looking forward to General Manager Yu Junbiao and the management team leading the company to create new milestones!
General Manager Yu Junbiao expressed his gratitude for the achievements made by former General Manager Liang Baisong in leading the company over the past ten years, and is also full of confidence in the company's future development. In the future, he will continue to uphold the corporate culture of “diligence as the foundation, sincerity in dealing with people,” adhere to the values of “value and sustainable development,” and focus on the management themes of “innovation and exploration, legal compliance, and systematic sustainability.” Through assessment and evaluation, he will self-correct and self-improve in cost optimization, innovation and exploration, legal compliance, and goal achievement, so as to achieve the entrepreneurial goal of each product line becoming “market leader, leading profitability, and unique competitive capability.” Realize the strategic transformation from “control valve expert” to “intelligent control & valve expert!”
Afterwards, Chairman Yang Guangyu held a brief and warm handover ceremony for Liang Baisong and Yu Junbiao.
This change of leadership not only completed a major personnel arrangement for the company's new era of development, promoted the company's talent ladder plan and the reform of the executive retirement system, but also marked a major strategic adjustment focused on the future and safeguarding the company's long-term development. The new leadership team should fully play its core role, inherit and promote the company's core values, carry forward the “Dongshan responsibility and craftsmanship spirit,” lead all employees to overcome difficulties and forge ahead, and strive to achieve the company's “re-entrepreneurship” strategic development goals with an “open, resilient, and enterprising” spirit, working hard to realize the dream of “a century of Chunhui”!
Dear colleagues, August 10 marks the half-year anniversary of Chunhui Intelligent Control's successful IPO on the Shenzhen Stock Exchange Growth Enterprise Market, and this year also marks the twentieth anniversary of the founding of the joint-stock company.
Twenty years of hard work and perseverance, it is precisely because all colleagues have always remembered our original mission, always practiced the “diligence and integrity” culture established by Chunhui's founder Mr. Yang Yanrong—“based on diligence, treat people with sincerity”—and the principle of courageous responsibility, always worked as a team to overcome obstacles and expand our territory, that we have come this far. For this, I sincerely thank everyone for your hard work on behalf of the board of directors! I also extend heartfelt thanks to all sectors of society for their attention and care!
Twenty years of flourishing growth, at this important moment, I would also like to address the post-listing operation principle of “harmony without uniformity”.Energy control, automotive electromechanical, heating technologyUnder the structure of three major industrial sectors, I would like to provide some explanation and clarification regarding the “re-entrepreneurship” strategy for the decade from 2021 to 2030!
Company culture:Based on diligence, treat people with sincerity! In work, be proactive; in conduct, be honest and respectful!
Vision and mission:Intelligent control & valve experts! Cooperate and share with employees, customers, and society through innovative and efficient management!
Centennial Chunhui:This dream means that the vision and breadth of managers determine the boundaries of our business growth! Establish a talent ladder program, cultivate team and organizational capabilities, aiming for high “efficiency” and strong “vitality”, to build a long-lasting enterprise that does not rely on individuals!
Values: Adhere to values of valuable and sustainable development, with professional subsidiaries (business units) under a flat organizational structure, aiming to achieve leadership in the industry; leading profitability among peers; three unique management goals with distinctive competitive capabilities! Based on a long-term business philosophy, we need to transform from traditional mechanical, processing and assembly diversified industries to intelligent control IoT and precision electromechanical related industries, and from traditional full production chain manufacturing to a flat, digital, flexible intelligent manufacturing management model!
We are already a publicly listed company, so please be sure to manage according to the spirit of the rule of law and the principle of respecting employee dignity. “The spirit of the rule of law” means managing with the awareness that “company systems and processes are more important than the boss or leaders!” and strictly implementing this at the middle and grassroots levels! A key distinction between rule of law and rule of man is that managers must strictly fulfill their duties and act under the guidance of systems and process norms. Rule of law means that every manager, regardless of authority, should first be responsible for their own duties, not just to their leaders. Managers must cultivate this spirit of rule of law and professional ethics, and be able to consciously perform supervisory and supervised functions under lawful governance, to effectively avoid company bureaucracy, inefficiency, small interest groups, and rigid stagnation.
Chunhui lean manufacturing management model(CPM, CHUNHUI Production Management, is a management model that draws on and learns from Japan's lean philosophy and the American innovation system, integrating them into management practices within the Chinese environment). Based on a long-term business perspective, we will continue to adopt the Chunhui lean manufacturing management model to achieve the strategic goal of improving management levels while also enabling technological upgrades and industrial transformation.
We should aim forHigh-qualityproducts and employees,High-efficiencyoperations and decision-making,Humanizedmanagement and environment as our goal, reducing costs, lowering inventory, decreasing accounts receivable, streamlining positions that do not create value, cutting unnecessary red tape and processes, and eliminating all unnecessary waste...
High-quality, we often say in public that Chunhui Smart Control produces two types of products: one is high-quality products for market customers, which is the foundation for the survival and development of the enterprise. The other is high-quality employees for society, which is the company's responsibility as a social organization. We firmly believe that as long as CPM is continuously implemented, high quality and low cost can be achieved.
High-efficiency, shareholders entrust funds, equipment, land, factories, etc. to the management team, but why do some enterprises thrive for generations while others are on the verge of collapse? The most critical reason lies in whether the management's operations and decisions are “efficient”! We believe that asset-light and fast turnover, lean and flexible manufacturing, being industry No.1, innovation and pioneering, teamwork, unique core competencies, growth in per capita output, return on investment, total asset turnover, delivery capability growth, and revenue growth... these are all open quantitative and qualitative indicators that reflect high efficiency!
Humanized, all employees of Chunhui Smart Control are the main body of CPM, and the goal of management is to bring outemployees'creativity and potential. Therefore, adopting humanized management and cultivating a humanized working environment can first enhance employees' work enthusiasm and initiative, and at the same time stimulate their creativity and willpower. In a humanized team, company, and society, personal goals are highly aligned with company goals, and personal interests are highly consistent with company interests and social responsibility! Therefore, humanization should be one of the purposes and goals of implementing CPM.
3x Speed Plan (X³) I believe that the two fastest ways for Chinese private enterprises to fail are: first, blindly and unrealistically pursuing large scale, thus creating a “false, big, and empty” management atmosphere; second, having too many management layers leading to bureaucracy and excessive diversification, resulting in inefficient management operations, scattered resources, slow response, and stagnation. Therefore, we will establish team spirit, self-renewal genes, and growth resilience to enhance the company'svitalitythrough a special management action plan that doubles the speed of response and improvement, doubles the intensity of collaborative innovation, and doubles the breadth of risk prevention, thereby proactively breaking the shackles of layer-by-layer innovation and various barriers to self-development! Compared with quantifiable “efficiency,” the most obvious impression of “vitality” is that it cannot be touched but can be truly felt, just like air is to humans and water is to fish. The vitality index, composed of teamwork, self-renewal, and growth resilience, in fact also belongs to the category of the company's business atmosphere, legal environment, and corporate culture background. With the accumulation of time and management experience, these will gradually evolve into the company's genes and have a positive impact on improving the company's operational efficiency and management capabilities!
Teamwork is the organizational spirit manifested by a positive and open humanized cooperative atmosphere such as team cohesion, smooth information flow, and honest communication. Teamwork first respects individual personality and specific division of labor, pays attention to and actively encourages the development of their potential and creativity; at the same time, as a team organization, it should further unify goals, integrate resources, and establish strategies and action plans through cooperation based on division of labor to form consensus. Although the spirit of teamwork in an organization cannot be quantified with specific numbers, we can indeed “see” it in three aspects of internal team cooperation: whether morale and cohesion are high, whether internal and external information flows freely, and whether communication among members is smooth!
Self-renewal It refers to the team organizational gene composed of management awareness or habits of innovation, continuous learning, and transformation and upgrading, which is the potential for team organizational development. From potential to actual capability, carrying excellent chromosomes of innovation and self-improvement means the vitality of this organizational life form is continuously enhanced, and thus the time and space of organizational life will also be constantly expanded and extended.
Growth under pressure refers to the company's management team improving profitability, growth and expansion, and optimizing personnel structure through its own growth, and more broadly, proactively preventing various risks to reduce the company's financial, legal, customer, supply chain, and social responsibility risk pressures. This self-growth ability mostly depends on the management experience of employees and teams; a fast-growing management team means enhanced management strength and the ability to resist internal and external risks.
We will continue to adhere toCPM和3Double speedAs a lever, we will proactively embrace the arrival of the irreversible new era of “digitalization, platformization, and IoT technology”!
Tiered Talent Program(Elite Team Project) is Chunhui Smart Control's self-renewal strategic system for planned, purposeful, organized, and systematic talent selection, cultivation, and appointment, aimed at the dream of “Centennial Chunhui.” We all know that employees are the most expensive resource in a company, and managers even more so, and they are also the fastest depreciating and most frequently needing replenishment. Achieving the “Centennial Chunhui” dream requires building a tiered management team, which takes years of accumulation and significant resource investment, but it may not take much effort to completely collapse it. Whether the company's goals can be achieved depends on the quality of management by managers, and also on how managers are managed. Moreover, how a company manages its employees and their work mainly depends on the management by managers and how managers are managed. The attitude of company employees primarily reflects the attitude of its management!
As managers“ character continuously improves, the company will keep developing. In other words: ”The operation of the company depends on the capacity of its managers.“ No matter how much you subjectively want to grow and improve the company, ”a crab only digs a hole according to the size of its shell," the level of enterprise development depends on the character of the operator, that is, the size of the operator's capacity! The greatest ability of a person is the ability to overcome oneself. To overcome oneself requires strong willpower. When evaluating the abilities of newcomers, the company should take willpower into account. Weak willpower, avoiding self-struggle, and always choosing comfort, such people's abilities are considered inferior. No matter how many good principles you have read or heard, it is meaningless without personal practice.
The tiered talent program is a strategy to build capabilities from individuals to teams and then to organizations. In the management cycle of rapid growth and expansion from 2021 to 2030, what restricts us from achieving our goals will not be capital, but high-quality, high-caliber managers and teams deeply versed in Chunhui's culture and strategy. It is they who build a dynamic organization, and this organizational capability will become our core unique competitive advantage. Therefore, the execution of the tiered talent program in implementation is extremely important!
As mentioned above, the breadth and vision of a leader determine the boundaries of career growth.。The elite team represented by tiered talents should become the main force to shoulder the dream of “Centennial Chunhui.” In the next decade, with innovation, expansion, acquisitions, and mergers as the main means of growth, these warriors and commanders will be the main force to conquer new territories and create greater value; they are a bridge to the other shore!
In order to continuously achieve performance growth, team development, and business expansion goals, we will next focus our management improvement efforts onCapability enhancement和Investment in innovationAbove. On one hand, we will focus onPeople and organization、Product and service、Vitality and innovationThree capabilities.
On the other hand, we will achievetechnological innovation、and investment integrationto achieve growth, development, and expansion. Although we have successfully gone public, our responsibilities and pressures have increased. We will face more shareholders and social responsibilities, and all decisions and actions must be legal, transparent, and open. Therefore, regarding how to use money, or in other words, invest, we should establish an open and cautious investment policy. Generally speaking, the targets and purposes of investment must comply with the following principles:
A.Enhanceour own competitive capabilities,These capabilities include R&D technology, manufacturing and production, sales development, and customer service. Therefore, we can invest in equipment and instruments, talent acquisition, market expansion, and lean management to improve these comparable advantages.
B.Consolidateour competitive advantages,In industries where we already have advantages, although we are leading, the gap is not large. Therefore, we will continue to make expansionary investments in R&D innovation, new markets, new regions, and new management in this field, to set higher standards and build moats, thereby widening the gap with competitors and maintaining our leading edge.
C.RelevantlyExtensionExpansion,As a function of the capital market, its greatest benefit is the ability to consolidate a leading position and expand advantageous industries through joint ventures, acquisitions, and mergers of upstream and downstream industries in the same sector. Therefore, we actively encourage extension and expansion in this manner.
D.TechnologyUpgradeExtension and expansion,Since our electromechanical industry is still relatively traditional, and the technical difficulty of control valves is also at a lower level, technological upgrading is one of our strategic priorities. We encourage investment in higher-end new technologies, new processes, and new trend areas within the industry, such as sensing IoT, control systems, and data software services.
E.Horizontal industryTransformation，When the original industry reaches a saturated state, we encourage seeking and investing in related, horizontal, emerging, sunrise, and blue ocean industries, such as environmental protection, utilities, and smart cities.
Everyone, although our strength has greatly increased after going public, we are still a small company. Please be sure to remain vigilant in times of peace, stay humble and low-key, be down-to-earth, and manage diligently with innovation and pioneering spirit. Because, in reality, there are still many shortcomings in our management. For example, our compensation system still lacks competitiveness in keeping up with the times; innovation and R&D resources of each product group remain scattered and inefficient; multi-location factories still need practical experience and accumulation; talent pipeline development and investment need a long-term perspective; local parochial thinking is still serious; we lack experience in the third type of acquisitions and mergers; our efforts in international expansion are still insufficient; the quality and vision of senior management need continuous improvement; and there is much room for improvement in information flow and execution from the top to the grassroots... These are all areas where we need to systematically improve our management in the near future.
Facing the unprecedented new challenges and new journey of 2021-2030, we should embrace an open mindset and tenacious will to strive and forge ahead for a “second entrepreneurship”! “Openness” means freedom, an infinite possibility and potential power, a state of readiness for growth; it means flexibility and inclusiveness, and the willingness to make changes for one's dreams and values! “Tenacity” is the courage to continue acting and persist in the face of pain, anxiety, fear, disappointment, and other costs for the sake of growth, while also being prepared to endure contempt, ridicule, and sarcasm from others, and having the determination and confidence to face loneliness. “Endeavor” is the faith to carry forward the pioneering spirit and corporate culture of our predecessors, to forge ahead for the dream of “a century of Chunhui,” and to advance with unyielding determination!
Twenty years have passed in the blink of an eye. Chunhui's yesterday has already been written in the history of the company's development; Chunhui's today is being created by all employees; Chunhui's tomorrow will surely be even better!
Finally, on behalf of the Board of Directors, I promise all employees that our management team is determined to firmly implement the 2021-2030 strategy and is willing to accept the supervision and suggestions of all Chunhui Smart Control employees! Once again, I would like to express my heartfelt thanks to all employees—you are our most trustworthy partners!
Chunhui has always adhered to the corporate culture of “diligence as the foundation, sincerity in dealing with people,” upholding the values of “value and sustainable development,” and working with partners to jointly tackle new opportunities and seek new development. Although the current social situation is ever-changing, under the general trend of global economic integration, “win-win cooperation” is the common understanding and pursuit of visionary people with great minds.
Therefore, on July 20, 2021, at Chunhui Smart Control, we were honored to witness, together with leading figures in China's gas industry, the strong alliance of two enterprises with shared understanding and pursuit, as well as the launch of Chunhui Smart Control's smart city gas strategy, namely the “Chunhui Smart Control & Honeywell Cooperation Signing Ceremony and Smart Gas Safety New Product Exchange Conference.”
The meeting was hosted by Mr. Xu Long, General Manager of the Gas Division of the Energy Products Group under Chunhui Smart Control. Mr. Xu first introduced the attending guests: Mr. Zhang Li, General Manager of Process Measurement and Control Asia Pacific at Honeywell (China) Co., Ltd.; Mr. Xie Qiang, General Manager of Gas Products Business Greater China; Ms. Liu Li; Mr. Zhu Wancheng, General Manager of China Natural Gas Channel; Ms. Du Yaohua, Key Account Manager of China Process Measurement and Control; Mr. Huang Dengqin, Deputy General Manager and Party Committee Member of Zhejiang Energy Group Urban Gas Co., Ltd.; Mr. Wang Luobiao, Deputy Chief Engineer; Mr. Yang Yuefeng, Chairman and Party Secretary of Tiantou Company, Shaoxing Public Utilities Group Co., Ltd.; Mr. Hu Jianbiao, General Manager of Tiantou Company; Mr. Nie Yongchao, Executive Deputy General Manager of ENN Gas Zhejiang Region; Mr. Ding Xiangzhong, Vice President of Zhejiang Coal and Power Design Institute and President of Oil and Gas Institute; Ms. Tang Shisi, Head of Supply Chain Management Center of Shenzhen Gas Investment Co., Ltd.; Mr. Xing Jianliang, General Manager of Zhuji Natural Gas Co., Ltd.; Mr. Zhang Yifeng, General Manager of Yuyao Urban Natural Gas Co., Ltd.; Mr. Wang Shizhong, General Manager of Shangyu District Natural Gas Co., Ltd., Shaoxing City; Mr. Yang Guangyu, Chairman of Chunhui Smart Control; Mr. Liang Baisong, General Manager; Mr. Xu Long, General Manager of Gas Division; Mr. Bei Zhenghai, Executive Deputy General Manager; Mr. Ge Jianqiao, Marketing Director; Mr. Wang Xiaobing, Deputy Director; Mr. Zhang Yong, Smart Connectivity Technology Manager of Chunhui Smart Control Research Institute; and Mr. Yang Mingtian, Chief Software Engineer, all attended. Then, Mr. Xu expressed his most sincere thanks and warmest welcome to all the leaders and experts present.
Mr. Yang Guangyu, Chairman of Chunhui Smart Control
The meeting began with a welcome speech by Mr. Yang Guangyu, Chairman of Chunhui Smart Control. Chairman Yang first welcomed and thanked the Honeywell team and all the leaders from the gas industry for their presence. He then emphasized that Chunhui Smart Control attaches great importance to the strategic cooperation with Honeywell and is full of confidence in this collaboration, hoping to achieve a win-win outcome through the joint and active efforts of both parties. Chairman Yang also explained Chunhui Smart Control's strategy for developing smart gas, stressing that Chunhui Smart Control will build on its more than 20 years of experience in the gas industry, with the care and support of a wide range of partners, and take advantage of the opportunity of listing on the Growth Enterprise Market to invest in creating a “leader in smart city gas integrated solutions” that belongs to Chunhui and serves society. Chairman Yang explained that this goal is based on natural gas transmission and distribution and gas pressure regulation and metering as important foundations, with the next-generation intelligent pressure regulating station @MRS, intelligent computing unit DARU, and cloud-native SCADA system DARULiNK as the core, to be gradually promoted and ultimately achieved.
Mr. Liang Baisong, General Manager of Chunhui Smart Control
Mr. Liang Baisong, General Manager of Chunhui Smart Control, first welcomed and thanked the Honeywell team and all the leaders from the gas industry for their presence. Mr. Liang then introduced the development history of Chunhui Smart Control to the guests, elaborated on the current “small pond, big fast fish” corporate strategy, as well as the product structure and development status of the current three major product groups, and used data to demonstrate that Chunhui Smart Control has always maintained a healthy business state of “light assets, low liabilities, and fast turnover.” Mr. Liang specifically introduced the main components of Chunhui's smart city gas integrated solution and emphasized the execution direction and determination of Chunhui Smart Control's strategic goal of being "the leader in smart city gas integrated solutions."
Mr. Xu Long, General Manager of the Gas Division of Chunhui Smart Control
Mr. Xu Long, General Manager of the Gas Division of Chunhui Smart Control, introduced the overview of the Gas Division and showcased our sound qualifications and complete equipment. He also reported to the guests that, with the support of a wide range of partners centered on the top ten customers, the Gas Division has maintained a stable growth trend and will continue to strive to become the leader in smart city gas integrated solutions.
Zhang Yong
Yang Mingtian
Mr. Yang Guangyu, Chairman of Chunhui Smart Control, personally introduced the brand-new intelligent pressure regulating cabinet solution @MRS and the design concepts of its core modules DARU and DARULiNK to the attending guests together with Zhang Yong, the designer of DARU, and Yang Mingtian, the designer of DARULiNK.
Chunhui Smart Control @MRS
The entire design concept is based on the @MRS gas pressure regulating and metering product. @MRS is equipped with corresponding measurement and detection devices to achieve data measurement. The highly integrated and stable DARU module realizes data collection and uploading functions, and then DARULiNK, which possesses core algorithms, performs data analysis and early warning functions in the cloud.
Cloud-native system architecture
At the same time, DARULiNK leverages cloud platforms such as Amazon Cloud, Alibaba Cloud, and Huawei Cloud to provide users with secure, convenient, and low-cost data storage, data analysis, and machine learning functions. The overall system design of @MRS is based on security, with flexibility as the core, serving the intelligent urban gas business in the mobile internet era, and aligns with the strategic essentials of the “Smart City Gas Overall Solution.”
Mr. Zhang Li, General Manager of Process Measurement and Control, Asia Pacific, Honeywell (China) Co., Ltd.
Mr. Zhang Li, General Manager of Process Measurement and Control, Asia Pacific, Honeywell (China) Co., Ltd., introduced the development of Honeywell. Honeywell has a wide and professional product line, providing customers with comprehensive products, solutions, and service cooperation. With a market value of $150 billion, Honeywell has become the world's largest industrial company. Mr. Zhang expressed his gratitude to Chunhui for this opportunity. Honeywell and Chunhui have known each other for ten years, with a deep foundation of understanding and trust. He hopes this cooperation will promote a better future for both Honeywell and Chunhui.
Leaders and experts during the exchange session
During the exchange session, leaders and experts from the gas industry congratulated and expressed their expectations for the “cooperation between Chunhui Smart Control and Honeywell,” hoping that the strong alliance between Chunhui Smart Control and Honeywell would provide strong support for urban gas construction. All leaders and experts agreed that the development of the gas industry is about to reach a bottleneck, and smart gas is one of the main directions for future urban gas development. The country has already selected Haining in Zhejiang and Wuhu in Anhui as pilot cities for “smart gas cities,” which also shows that Chunhui Smart Control's strategy of being “the leader in overall smart city gas solutions” is highly aligned with the national direction for urban gas development. At the same time, leaders and experts pointed out that the development of smart gas should achieve full-process and full-scenario monitoring, analysis, and early warning, should balance urban and rural development, should be highly integrated, should improve transmission and distribution efficiency, should cover from medium and low pressure to high pressure, should establish more cooperation with national research institutions, should meet the government's need to improve people's quality of life, and, above all, should be safe, reliable, intelligent, and controllable.
Mr. Liang Baisong (right), General Manager of Chunhui Smart Control, and Mr. Zhang Li (left), General Manager of Process Measurement and Control, Asia Pacific, Honeywell (China) Co., Ltd.
After the exchange session, witnessed by the guests, Mr. Liang Baisong, General Manager of Chunhui Smart Control, and Mr. Zhang Li, General Manager of Process Measurement and Control, Asia Pacific, Honeywell (China) Co., Ltd., jointly signed the “Chunhui Smart Control & Honeywell Cooperation Agreement.”
Group photo
At the end of the meeting, Mr. Yang Guangyu, Chairman of Chunhui Smart Control, once again expressed his gratitude to the guests for their attendance and thanked and agreed with the valuable suggestions put forward by the leaders and experts. He congratulated the strategic cooperation between Chunhui Smart Control and Honeywell.
Chunhui Intelligent Control successfully listed on the Shenzhen Stock Exchange on February 10, 2021, stock code: 300943.SZ. Although we have entered the capital market through the listing, we are still a small company, and our three product groups—heating technology, energy control, and automotive electromechanical—are all facing numerous challenges in technological innovation, market expansion, and sustained profitability. The company's board of directors has remained calm and clear-headed, and promptly proposed the “re-entrepreneurship” strategy to proactively face the new challenges of the next decade.
re-entrepreneurshipIt is both a process and a result or goal! As an overall objective, it takes the professional business unit as the basic accounting unit, and through diligent operation and management, aims to achieve three indicators:
First is to becomea leader in the professional market,which means being in a leading position in both technology and market share. In fact, this indicator is the purpose of our long-standing and persistent “big fish in a small pond” strategy;
Secondly, itsprofitabilityshould beleadingin the industry. Having profitability is the natural instinct of a business organization, and the true standard of excellent management is whether you can generate higher profitability than your competitors;
Finally, it must possessunique core competenciesfor sustained growth. In fact, there are quite a few companies with the above two advantages, however, we find that the life cycle of those companies is very short! That is because merely focusing on profitability and industry status is not enough; unless you have unique and inimitable core competencies, only then can you operate the company in a long-term and sustainable manner. The establishment of these three indicators is because we must uphold and adhere to Chunhui Intelligent Control's values: valuable growth and sustainable development!
These three goals mean that we must improve our capabilities in people and organization, product services, and growth innovation. The board of directors regards the elite class's tiered talent plan and the implementation of CPM (Chunhui Lean Management Model) as the bridge to a century-old Chunhui. Therefore, how to enable elite class members to use CPM practices, leveraging digitalization, platformization, and IoT technology tools to embed management concepts into factory technology, marketing, and management innovation, has become particularly urgent and important. Thus, “digitalization” is the first stop in the study tour!
What is the essence of an excellent digital factory? How should Chunhui Intelligent Control transform into a digital factory?
On June 15, all members of Chunhui Intelligent Control's fifth Elite Class, led by Chairman Mr. Yang Guangyu, embarked on a three-day study tour with the above questions, to explore the essence of an outstanding digital factory.
Before departure, the chairman required the students to: uphold 100% strong will, 100% scientific methods, and 100% strict execution, and to approach the digital factory transformation with a learning mindset.
Chairman Yang's expectations and encouragement for the students before departure
Society is currently in a period of rapid development of the information age and the intelligent age, making digitalization imperative for enterprises. To cultivate digital factory talents, the digital study tour of the fifth Elite Class is Chunhui Intelligent Control's journey of seeking innovation, truth, and survival.
The students visited the final assembly workshop of SAIC Volkswagen's third plant, learned about the German lean model of the Volkswagen factory, and gained insights into various approaches to lean improvement worldwide, broadening their horizons and gaining a new understanding of lean improvement.
First stop of the study tour: SAIC Volkswagen Anting Factory
Chunhui Intelligent Control will also start from these aspects, drawing on the strengths of others to make up for its own shortcomings. Compared with the existing CPM (Chunhui Lean Production Management System), Chunhui Intelligent Control still has a long way to go. If Toyota and Volkswagen are soaring eagles on the road of lean improvement, then Chunhui Intelligent Control is still a fledgling bird spreading its wings. As long as it persists on the CPM path, one day it will also gallop under the sky of lean improvement.
Students experiencing SAIC Volkswagen factory on site
On the second day, the students visited AUO's digital factory in Suzhou Industrial Park, listened to the introduction of AUO's digital transformation journey, and learned about the value of digital transformation in manufacturing enterprises. The application of digital technology has promoted innovation in production efficiency, management efficiency, and organizational efficiency, thus achieving lean factory operations and providing more and better solutions for lean production concepts.
Comprehensive understanding of AUO's intelligent manufacturing system
During the afternoon visit to Honeywell, students experienced the operation of the production line on site, learning how to empower the production line through lean tools and how to consolidate results through culture to achieve disciplined organizational behavior.
Students at the Honeywell factory
The students visited NIO's “Future” factory in Hefei. Innovation is the driving force of our society's development. The older generation of automotive professionals might not have imagined that today's new energy vehicle manufacturing centers have achieved over 90% automation. The factory adopts highly mechanized automated production, with almost no manual intervention throughout the process, making it a standard modern, automated, and integrated high-tech factory. The students witnessed the crystallization of modern technology, showcasing the direction of future digital factories through efficient automated assembly lines. Chunhui Intelligent Control should also move in this direction, as integrated and automated production methods can effectively reduce costs, lower error rates, and improve product quality, gradually transforming “Made in China” into "Intelligent Manufacturing in China."
In the exhibition hall of NIO Hefei factory
On-site visit to the vehicle manufacturing workshop of NIO Hefei factory
Only by running tirelessly can we see the direction of the future. As an example, the NIO factory showed the trainees what the “future” looks like. After the visit, the trainees were deeply inspired and came up with many different ideas. Through their enthusiastic discussions, each person also has their own “future” factory in mind. We believe that after the study tour, they will put their ideas into action, and through their own innovation and practice, create a new “future” for Chunhui Smart Control!
Group photo - NIO Automobile Hefei Factory
Grasping the pulse of the times, the journey of seeking innovation, truth, and survival in digital training will lay a solid foundation for a century-old Chunhui!
At the same time, we look forward to the elite class embarking on a new study tour themed on “platformization” and the “Internet of Things,” striving tirelessly to achieve the goal of “re-entrepreneurship”!
On June 9-10, dedicated to promoting the development of the future fully premixed condensing wall-hung boiler market, a supply chain kick-off meeting and seminar focusing on the overall solution for fully premixed condensing wall-hung boilers, initiated by the company's heating technology product group, was grandly held in the company's third-floor conference room. More than 20 participants, including representatives from over 10 well-known industry-leading fully premixed wall-hung boiler supply chain supporting enterprises, wall-hung boiler manufacturers, and relevant industry experts, attended the seminar. The company's Chairman Yang Guangyu, Vice President Yu Junbiao, Heating Division General Manager Chen Jiansong, and Deputy General Manager Luo Ronghai were present at the meeting.
The meeting first conducted a comprehensive analysis of the future market for fully premixed condensing wall-hung boilers, and provided a detailed analysis and introduction of the technical requirements for the main components of the fully premixed condensing wall-hung boiler supply chain; then, wall-hung boiler manufacturers explained the current technical requirements and quality standards for fully premixed condensing wall-hung boilers, and shared some major issues encountered in the current market. Over the two-day period, focusing on the topic of the overall solution for fully premixed condensing wall-hung boilers, component enterprises and wall-hung boiler manufacturers engaged in extensive and in-depth face-to-face exchanges and discussions, proposed many constructive suggestions, further deepened mutual understanding, enhanced consensus for cooperation, and laid a more solid foundation for deeper and broader cooperation in the future. The participants unanimously agreed to work together to promote the development of the industry.
Finally, the General Manager of the Heating Technology Product Group, Mr. Yu, announced: the supply chain kick-off meeting and seminar for the overall solution of fully premixed condensing wall-hung boilers is officially launched, and a group photo was taken to commemorate the event. This kick-off meeting and seminar achieved a complete success and will surely become an important milestone in the development process of fully premixed condensing wall-hung boilers.
Chunhui Lean Manufacturing Management Model (CPM, CHUNHUI Production Management). We draw on and learn from Japan's lean philosophy and America's innovation system, integrating them into management practices within the Chinese environment.High-qualityproducts and employees,High-efficiencyoperations and decision-making,Humanizedmanagement and environment as the goal, reducing costs, inventory, accounts receivable, non-value-added positions, unnecessary red tape and processes, and all unnecessary waste...
High-quality,We often say in public that Chunhui Smart Control produces two kinds of products: one is high-quality products for market customers, which is the foundation of the company's survival and development. The other is high-quality employees for society, which is the company's responsibility as part of a social organization. Only through continuous implementation of CPM can we believe that high quality does not necessarily mean high cost—it is achievable.
High-efficiencyShareholders entrust funds, equipment, land, factories, etc. to the management team, but why do some companies thrive while others barely survive? The most critical reason lies in whether the management's operations and decisions are “efficient.” We believe that asset-light fast turnover, lean flexible manufacturing, industry No.1, innovation and pioneering, teamwork, unique core competencies, per capita output growth, return on investment, total asset turnover, delivery capability growth, and revenue growth... these are all public quantitative and qualitative indicators reflecting high efficiency!
HumanizedAll employees of Chunhui Smart Control are the main body of CPM, and the goal of management is to unleash the creativity and potential of “people.” Therefore, adopting humanized management and cultivating a humanized working environment can first enhance employees' work enthusiasm and initiative, and also stimulate their creativity and willpower. In a humanized team, company, and society, besides one's own life, company goals and social responsibility are also the most important work, and the two are consistent! Therefore, humanization should be one of the purposes and goals of implementing CPM.
Secondly, by establishingTeamworkspirit,Self-renewalGenes andGrowth under pressureThe ability to enhance the vitality of company operations! In this regard, we will adopt the Triple-Speed Plan of the Golden Decade to invest in, cultivate, and enhance this vitality.
Compared to quantifiable efficiency, the most obvious feature of vitality is that it cannot be touched but can be felt, just like air is to humans and water is to fish. The vitality index, composed of teamwork, self-renewal, and growth under pressure, in fact, also falls within the scope of the company's operating atmosphere, legal environment, and corporate culture background. With the accumulation of time and management experience, these will gradually evolve into the company's genes. On one hand, this accumulation is the result of management efficiency, and on the other hand, it can also promote and enhance operational efficiency.
Compared to quantifiable efficiency, the most obvious feature of vitality is that it cannot be touched but can be felt, just like air is to humans and water is to fish. The vitality index, composed of teamwork, self-renewal, and growth under pressure, in fact, also falls within the scope of the company's operating atmosphere, legal environment, and corporate culture background. With the accumulation of time and management experience, these will gradually evolve into the company's genes. On one hand, this accumulation is the result of management efficiency, and on the other hand, it can also promote and enhance operational efficiency.
Teamwork It is the organizational spirit composed of a positive and open humanized cooperative atmosphere such as team cohesion, smooth information flow, and honest communication. Teamwork first respects individual personality and division of labor, pays attention to and actively encourages the development of potential and creativity; at the same time, as a team organization, it should further unify goals, integrate resources, and establish strategies and action plans through cooperation based on division of labor to form consensus. Although the spirit of teamwork in an organization cannot be quantified with specific numbers, we can indeed “see” it in three aspects of internal team cooperation: whether morale and cohesion are high, whether internal and external information flows freely, and whether communication among members is smooth!
Self-renewal It refers to the team organizational gene composed of management awareness or habits of innovation, continuous learning, and transformation and upgrading, which is the potential for team organizational development. From potential to actual capability, carrying excellent chromosomes of innovation and self-improvement means the vitality of this organizational life form is continuously enhanced, and thus the time and space of organizational life will also be constantly expanded and extended.
Growth under pressure It refers to the company's management team improving profitability, growth and expansion, and optimizing personnel structure through their own growth, thereby reducing the company's risk pressures in finance, legal affairs, customers, supply chain, and social responsibility. This self-growth ability mostly depends on the management experience of employees and teams; a fast-growing management team means enhanced management strength and the ability to resist internal and external risks.
In executing the CPM and Triple-Speed Plan centered on efficiency and vitality, we will interact, track, promote, and monitor the management process through the board of directors, board of supervisors, and evaluation committee, and strictly adhere to four principles:
Holistic—The scope of this management activity is company-wide and involves all employees. Therefore, through a holistic management scope, the CPM and Triple-Speed Plan are integrated into the company's culture and strategic execution.
Full-process—Only by running management through the entire process of each functional department and implementing it at all different levels can the CPM and Triple-Speed Plan demonstrate their breadth and depth.
Gradual—The CPM and Triple-Speed Plan break down tasks into several small tasks and implement them step by step according to their difficulty. The most effective approach is to start with the most important and urgent, proceeding from easy to difficult. We will not focus our attention on the 100 things to do in the future, but rather on the one thing that can be done here and now.
Continuity—Without continuous improvement and persistence, the effects of the CPM and Triple-Speed Plan are impossible to achieve. From a strategic perspective, I believe this cycle should not be less than 10 years.
Chapters 63 and 64 of the Tao Te Ching say: “Plan for the difficult while it is easy, do the great while it is small; the world's difficult things must be done while they are easy, the world's great things must be done while they are small. What is stable is easy to maintain, what has not yet emerged is easy to plan; what is fragile is easy to break, what is minute is easy to scatter. Act before it exists, govern before it is chaotic. A tree that fills the arms grows from a tiny shoot; a nine-story terrace begins with a pile of earth; a journey of a thousand miles begins with a single step.” In fact, the principle is the same for achieving success in anything!
