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On May 10, Jinde Industrial Controls subsidiary Jinde Co., Ltd. opened its business in Shandong Plain, which indicates that Jinyi Industrial will redistribute the share of China's fastener market. It is understood that in 2007 Jinyi shares achieved sales of 1.277 billion yuan, net profit of 37.52 million yuan, accounting for less than 5% of the market. After Jinde Co., Ltd. is put into production, Jinyi Industry will achieve an annual production capacity of 400,000 tons in the country, and in 2008 it will achieve a sales income of 1.6 billion yuan, accounting for about 8% of the Chinese market share.
According to Mr. Tu Zhiqing, Deputy General Manager and Secretary of the Board of Directors of Jinyi Industry Co., Ltd., there are currently more than 7,000 fastener companies in mainland China with an annual output exceeding 5 million tons. The overall situation of the fastener manufacturing industry in mainland China can be summed up as "three more, three less". Namely: First, there are fewer ordinary products, fewer high-end products, and truly well-known international brands. Second, there are more labor-intensive companies, fewer technology-intensive companies, and fewer companies producing high value-added products; There are many enterprises with technology introduction and digestion, few with independent innovation, and fewer with independent intellectual property rights. Tu Zhiqing said: The world's fastener manufacturing industry is undergoing a profound strategic reorganization in the context of economic globalization. If we are not yet able to have our own world-renowned brand names, our own professional advantages, and our core competitiveness without independent innovation, we are very likely to fall behind in future market competition. As a fastener company in China, it is imperative to speed up the transformation and upgrade, including the concept of operation, product and enterprise transformation and upgrading. Only through the transformation and upgrading of concepts, products, and enterprises that include business operations, can we fully enhance the company's core competitiveness so as to ensure sustainable business operations in the future market competition.
Tu Zhiqing said that in order to meet the challenges of the world's fastener manufacturing industry, fastener companies in mainland China must grasp three important links. The first is to focus on international operations and build internationally renowned brands. Only by creating more brand names, especially famous brands in the international market can we be invincible in international competition. The second is to optimize the product structure and give full play to professional competitive advantages. Take Jinyi Industry as an example, although in the field of fastener manufacturing in mainland China, the scale of the company has reached the first place in the country, and an annual output of 400,000 tons or more has been established in the Jiashan Economic Development Zone in Zhejiang Province and the Plain Economic Development Zone in Shandong Province. The company specializes in the production of fasteners manufacturing bases. However, from the perspective of the overall level of competition in the industry, it is necessary to make efforts in the division of labor and integration. At present, Jinyi Industry Co., Ltd. is relying on the Dongfeng of the stock market, closely focusing on the “high, new, and special†three directions, and fully advancing the high-strength special-shaped fasteners and automobile special fasteners based on the high-speed railway fastener system. A fundraising investment project was made, and efforts were made to speed up the transformation and upgrading of this article, trying to continue to grow bigger, stronger and longer in the field of fasteners. The third is to cultivate core technologies and enhance the ability of independent innovation of enterprises. Most of the fastener manufacturers in the Chinese mainland are weak in their own infrastructure. The advanced technologies are mainly imported and digested. Therefore, the core competitiveness of enterprises is not strong. To improve the competitive advantage, we must realize the transition from "introduction and digestion" to "independent innovation." By nurturing core technologies to enhance the company's ability to independently innovate, the company will eventually form its own competitive advantage, complete the company's common development with the industry, common progress, and the constant pursuit of success goals and mission.