By Shi Chunxia

Haiying Engineering Equipment Co Ltd Transformation Story

Haiying Engineering Equipment Co has another name -- Equipment Power Branch. In the past decade, under the leadership and support of Haiying Co Ltd,Equipment Power Branch has blazed a trail of reform and development. Under the condition of resources remaining unchanged, the Branch has successfully transformed from a tertiary company to a main business operator, from traditional patch-up subsidiary business to main business as one of the four major civilian goods sectors. With products spread over national big cities, universities and research institutes and exported to the Middle East and Southeast Asian countries, its economic scale and benefits have redoubled, contributing to the development of Haiying Co Ltd and staff income increase.

In first step, sales income tops RMB500

To make economic scale big,Engineering Equipment Co conducted the first major adjustment to its product mix in 2002, shifting from equipment maintenance to non-standard equipment manufacturing, from Jilin pump and Daqing pump in 2002; composting machine in 2003; slotting machine and stacker crane in 2004; to lifting and turning equipment involved in 2005, it successfully built Haiying non-standard manufacturing brand. By shifting growth mode, building comparative advantages and implementing differential competition,obtaining good results, economic scale has increased year by year, sales income of Engineering Equipment Co increased by 400% in 2004 from 2001, for the first time hitting RMB5 million, profit broke RMB1 million. The growth of Engineering Equipment Co contributed to the corporate growth, the biggest significance lies in, however, retaining and stabilizing a technical backbone team, paving the way for follow-up sound development.

In second step, sales income breaks RMB10 million mark

In 2006, Engineering Equipment Co once again encountered bottleneck in its development as the product mix had major troubles: No fixed client base and relatively difficult market development;hard to strike balance in production, poor resource utilization rate and fairly high opportunity cost; long forming process of products, high requirements for employee skills, employee team construction difficulty and most importantly, it is very difficult to make economic scale big. It certainly requires a new round of adjustments to the product mix if economic scale is to be made big and economic benefits are to be improved.

In 2007, Engineering Equipment Co developed the strategic thinking of“Re-transforming the growth mode and performing second adjustment to the product mix”, that is, transforming from based on non-standard equipment manufacturing to based on product manufacturing. Centering on the transformation, three main business sectors gradually took shape.

The first major business: Railway and railway transport equipment. Product line: Head car overhaul device, training moving platform, car lifting jack, bogie static load test rig, vehicle threetier operation platform, etc. Business scope: Electromechanical products,steel structure products. Target market:Including all railway administrations,subway of all big cities across China and track construction of the Middle East,Southeast Asia and Africa.

The second major business: Water related testing and test equipment.Product line: Hoisting and turning test equipment, wave maker, flow generator,wave canceller, towing system, etc.Business scope: Extension and expansion from water underwater acoustic sector to environmental simulation, cable manufacture, space flight and aviation,education and scientific research sectors,land and marine advance at the same time. Target market: Research institutes and universities.

The third major business: Marine equipment products. Product line:Development on the basis of hydraulic operating valve bank, pump source valve bank, oil tank and valve box towards whole system (hydraulic system and control system), further whole coverage of main installation varieties on board. Business scope: Mainly applied in hatch cover,anchor and mooring equipment and other deck machinery of bulk carrier, ro-ro ship and container vessel as well as hydraulic systems of mass flow, compact volume and high integration. Target market: Mainly applied in the shipbuilding industry,with simultaneous exploration towards engineering machinery industry.

In 2008, Engineering Equipment Co sales revenue for the first time broke RMB10 million mark, and in 2010 both economic scale and economic benefits improved substantially.

In third step, strive to achieve the goal of RMB30 million

Starting 2011, centering on the goal of further making big economic scale and especially railway transport equipment manufacturing business, the Branch actively explored and strove to break bottlenecks of development mode, qualification, resources, brand,specialization level and financing platform, innovated business model,sought more appropriate development approach, and the Branch performed another major adjustment to its growth mode and product mix.

Core content of the adjustment is:Product mix especially railway transport business shifted from previous product type to engineering type, growth mode conversed from simplistic product operation to design and manufacture,system integration, agency trading, i.e.,general contracting model. Strategic positioning is: Building the company into a railway transport production,repair and test equipment integrator engaged in technology, industry and trade, providing various equipment and facilities for manufacture, overhaul,maintenance and testing process of rolling stock of railway, subway, light rail; well-known manufacturer of design and manufacture of water related testing and detection equipment and sea environment simulation equipment for research institutions and universities;manufacturer, integrator and service provider of domestic first-class marine deck machinery and equipment and hydraulic system of engineering machinery. Key professional directions are electromechanical integration, large steel structure and hydraulic system integration.

Beijing Metro Line 9 Integrated Package Project in 2011, Wuxi Metro Line 2 Integrated Package Project in 2012, Taiyuan Railway Three-Tier Platform and Track Bridge Project in 2013, Hohhot Bullet Train Station Three-Tier Operation Platform and Track Bridge Project in 2014 are all typical engineering type or integrated package projects and these projects are basically all large projects with costs exceeding RMB10 million. Through fostering in a matter of a few years, marine equipment business it set foot in 2012 has developed rapidly,and they realized revenue exceeding RMB10 million in 2015; the wave maker project undertaken for a particular institute was a typical engineering type reservoir testing equipment project.These large engineering type or integrated package projects played a powerful bracing role in making big economic scale of Engineering Equipment Co.

AI and Internet technology application are in the ascendant. In 2017, Engineering Equipment Co in collaboration with other entities successfully developed “Internet+”intelligent product -- orange fruit intelligent terminal. The intelligent commercial terminal was an all intelligent orange juice marketing terminal, in the models of “Orange fruit intelligent commercial terminal network+mobile Internet” and “Orange fruit cloud butler”, it can provide customized health drinks, individualized information service and flexible commodity retail service.★