The success of Gree Electric is inseparable from the quality and technical advantages laid by Zhu Jianghong, but in recent years, Gree’s diversified business has become increasingly rare.
Editor’s note: This article is from WeChat public account “Stone Business Review” (ID :libusiness), author Zhang Junzhi, editor Jin Mei authorized to publish.
The 25 major investment institutions bid for Gree Electric’s shares, which finally came to a close on October 28. Gaochun Capital defeated a number of opponents and became the final winner.
Since the beginning of April, Gree Electric announced that its major shareholder Gree Group will transfer 15% stake in Gree Electric, including many investment institutions including Temasek, Baidu, Boyu Capital, Gaochun Capital and Houpu Investment. In this “toon”. The reason why Gree Electric’s shares can be so sought after by the capital market is very simple. As a representative enterprise of China’s manufacturing industry, Gree Electric Appliances is a “goose that will lay golden eggs”.
Gree’s electrical report in 2018 shows that its total revenue reached 20.024 billion yuan in 2018, an increase of 33.33% over the same period of last year. The net profit attributable to listed companies was 26.203 billion yuan, an increase of 16.97% year-on-year. Although its revenue is 60 billion lower than that of another home appliance giant, its net profit is 6 billion higher than the other side, and its growth rate is significantly ahead of its rivals.
Gree Electric has always been very generous to investors. From 2012 to 2018, Gree Electric has reached 40 billion with only dividends. If a person invests 500,000 yuan to buy Gree’s stock 10 years ago, and counts dividends, shares, and shares, today’s value will exceed 10 million.
In the highly competitive Chinese home appliance market, Gree has such eye-catching performance that it is inseparable from the market’s recognition of its products. “Buy air conditioners and buy Gree” “Geli’s products are of excellent quality”, which is already deeply rooted in many people. Awareness. Gree’s products are good, due to its reliable product quality and technical advantages. So, how is this advantage of Gree formed?
The character of a founder or a pioneer of a company affects the generation and effective operation of the company’s genes, and the founder of Gree, Zhu Jianghong, is the founder of Gree’s quality and technology genes.
01 Zhu Jianghong and his people
Zhu Jianghong was born in Zhuhai in 1945 and graduated from South China Institute of Technology (now South China University of Technology) in 1970. At the time of college, Zhu Jianghong was the squad leader. According to his achievements and conditions, he could stay in the big city. However, he was sent to a small factory in Guangxi as a worker because of his father’s “counter-revolutionary” component. However, Zhu Jianghong is not discouraged, but has a bit of happiness. After all, he has lived in the countryside since childhood, and he has experienced a lack of food.60 years and various shocks in the early days of the “Cultural Revolution”, now there are meals, clothes, and a life of tens of dollars a month, which has made him feel very happy.
*The 70th graduation photo of the heat treatment major of the Mechanical Engineering Department of South China Institute of Technology (the sixth in the middle row is Zhu Jianghong)
In the factory, Zhu Jianghong is very hardworking, and often works overtime overnight. Due to work hard, two years later he was promoted to the workshop quality inspector by the director of the factory revolutionary committee. Here, for the first time, he was exposed to what was the “quality inspection” work.
In the era of planned economy, the quality consciousness of the factory is very weak. There are chapters that do not follow the rules and there are no rules to follow. The unqualified parts that are out of tolerance are said by the leaders.
Zhu Jianghong is very difficult to accept such a status quo. As the only quality inspector in the workshop, he works during the day and starts to formulate various systems related to quality at night. He also writes the reasons for the quality impact and the measures and methods for rectification. Reported to the factory leader. After receiving the attention and support of the leaders, he began to work boldly and resolutely scrapped unqualified products.
Zhu Jianghong’s practice has led many people to have opinions on him. Some people ran to play his small report, but he resisted the pressure, on the one hand, strict requirements on product quality, on the other hand, carefully studied ways to improve quality, and then These methods are taught to young workers by hand.
Zhu Jianghong gradually gained prestige among the workers, and the workers gradually adapted to his strict requirements, and the quality of the factory products was significantly improved. After working for a year and a half in the position of quality inspector, Zhu Jianghong was promoted to the technician of the bearing workshop. In the 1970s, companies need to rely on planning indicators to buy equipment, but small mountain factories in Guangxi Baise are difficult to be included in the plan. As a technician, Zhu Jianghong did it himself. At that time, the equipment such as reamers and special grinders that were urgently needed by the factory were made by him and his workers.
In particular, Zhu Jianghong’s invention of the “centrifugal automatic elastic clamp” has greatly reduced the labor intensity of lathe workers. This innovation was reported by the National Machinery Department’s publication at that time, which produced great repercussions in the industry. Many companies across the country have gone to the small mountainous factories in Guangxi, Baise, to learn from them.
Excellent performance, Zhu Jianghong was successively promoted to the deputy director of the workshop, the deputy section chief of the production department, the deputy section chief of the quality inspection department, and the deputy section chief of the technical department. The reason why he was not a full-time job was because he was not a party member and a recovery soldier at the time, but the workers in the factory were very convinced of his skills and abilities.
In 1982, the spring breeze of reform blew through the Great ChinaIn the ground, Zhu Jianghong’s factory piloted the democratically elected factory director. After the employee voted, Zhu Jianghong, who was less than 37 years old, was almost elected as the director of the whole vote. This year, the factory was renamed Guangxi Baise Mining Machinery Factory, and Zhu Jianghong also became a county-level cadre.
The new official took up three fires, and the three fires that Zhu Jianghong took up were not only disciplined, but also sold, and a fire was burned in the reliability and research and development of the products.
In Zhu Jianghong’s view, product reliability is even more important than performance. Many products are not only bad quality, but also bring huge losses to the production enterprises, and the enterprises also need to send people to repair, which not only affects the reputation of the company, but also increases the cost.
Baiyun Mining Machinery Factory needs a wide variety of steel types, including low carbon steel, high carbon steel, various alloy steels, and the performance of different types varies greatly. However, the appearance of these types of steel is exactly the same, which is inevitably confused in the process of storage, transportation and production. In the past, Baiyuan Mining Machinery Factory had experienced premature wear and cracking of parts due to material confusion. In order to improve such a situation, Zhu Jianghong purchased a number of instruments and equipment and built a physical and chemical testing laboratory.
In the physical and chemical laboratory, each type of steel entering the factory has to undergo re-testing, re-numbering, and strict classification. Since then, the time for trouble-free operation of the products of Baiyuan Machinery Plant has increased significantly, which has greatly reduced the losses caused by customers due to maintenance and has been praised by users.
In addition to strengthening the reliability of the products, Baiyin Machinery Factory has also increased the research and development of products. The company has gradually developed bucket elevators and chain conveyors from only one screw conveyor and several specifications. Roller conveyors, belt conveyors, etc. more than 10 varieties, hundreds of specifications.
Under Zhu Jianghong’s leadership, the business management, technical management, quality management, and sales management of Baise Mining Machinery Factory have been solid and excellent. The sales of the company has also increased by 50% per year, and the benefits have been greatly improved. In 1985, Baise Mining Machinery Factory was rated as “Guangxi Advanced Enterprise” and “Guangxi Famous Brand Product”. When Zhu Xuefan, vice chairman of the National People’s Congress, visited, after listening to Zhu Jianghong’s introduction, he wrote a five-character “Bian Bian Yi Hua”.
Zhu Jianghong stood at the Baise Mining Machinery Factory and stood on the first peak of his life. The reason why he can have such achievements is inseparable from his concern for product quality and his love for technology development. Later, he brought the genes in this bone to Gree.