On November 15, the Beijing Stock Exchange opened, and the Business Daily paid attention to the "concentric transmission growth leading the Beijing Stock Exchange"
Chen Hongkai, chairman of Tongxin Transmission
Top News Henan Business Daily reporter Guo DingRan Ding Lianying / Wen reporter Song Yameng intern Chen Yu / Figure
On November 15, the Beijing Stock Exchange officially opened. According to Wind statistics, the average of the 10 new stocks rose by nearly 200% on the day. From the perspective of individual stocks, Concentric Transmission (833454) has earned enough market attention, and the intraday stock price once rose by more than 500%.
How did this Henan enterprise, which has not been widely known to the public, enter the capital market step by step? What kind of entrepreneurial and innovative process does its founders and enterprises have?
"Entrepreneurship is a marathon without an end." Chen Hongkai, chairman of Tongxin Transmission, said they never wanted to "eat a fat man in one bite."
The first day of listing gains led the North Stock Exchange, and it is usual to look at it
"This year is the 20th year of our company's founding, the 6th year of our listing on the New Third Board, and the year of my life." Chen Hongkai, chairman and general manager of Henan Tongxin Transmission Co., Ltd., said in an exclusive interview with the reporter of Henan Business Daily.
For the excellent performance of the stock price on the first day of listing, Chen Hongkai held a normal heart of "spoiling and not being shocked".
In Chen Hongkai's view, the successful listing of Tongxin Transmission on the Beijing Stock Exchange on the one hand sent a 20-year-old "birthday gift" to the enterprise, and on the other hand, it is also the result of the steady development of the enterprise step by step.
He said that since the listing on the New Third Board in 2015, they have never thought of "eating a fat man in one bite", but have regarded the New Third Board as a training camp for the standardized operation of enterprises, and carried out "practical exercises" towards the goal of listing.
"We are a company that has been doing little by little since we were a child." Chen Hongkai introduced that in the early days of the establishment of the enterprise, it was rented from other people's factories, starting from two or three machine tools.
Nowadays, Tongxin Transmission has become a specialized enterprise focusing on the research and development, production and sales of non-constant speed drive shafts and related parts, with the production capacity of trucks, buses, construction machinery and special vehicles and many other types of transmission shaft products, and has formed 20 product series, more than 1800 product specifications, suitable for the transmission system installation needs of major host manufacturers at home and abroad.
Most of the main customers of Tongxin Transmission are well-known brands in the industry, including Dongfeng Motor, Zoomlion, Yutong Bus, Yutong Heavy Industry and so on. According to the data released by the China Association of Automobile Manufacturers, Tongxin Transmission has become a first-class supporting supplier for 4 of China's top ten commercial vehicle brands in 2020, and has also signed long-term cooperation supporting agreements with foreign excellent car companies such as Russian Kamas and South Korea's Hyundai Heavy Industries, and the share of export products has successively accounted for more than 40% of the company's marketing.
Strong R & D capabilities, can better adapt to the diversified needs of enterprises, is a major advantage of Concentric Transmission.
"We supply more than 300 different types of drive shafts to Yutong alone." Chen Hongkai told the top news Henan Business Daily reporter.
Through the trough period, the first technology in the research and development industry
No success is "all effortless".
Concentric Transmission has also experienced a trough in the development process of 20 years.
In 2015, that is, the year when Tongxin Transmission was listed on the New Third Board, due to the pressure of market competition, Tongxin Transmission orders fell sharply.
"The output of 100,000 sets in a month fell to more than 3,000 sets." Chen Hongkai recalled.
This also made Chen Hongkai realize that the initial 15 years of entrepreneurship only followed the market and did not take the initiative.
Innovative research and development, to create their own technical barriers, in order to grasp the initiative of the market.
Steel, as a raw material in the field of drive shafts, accounts for 60% of its production costs. In order to develop a more advanced manufacturing process and achieve cost reduction and efficiency increase, Tongxin Transmission has invested nearly 30 million yuan in the research and development of forging technology, during which countless mistakes have been made.
"If one method doesn't work, it's a no-brainer, and it's been tried." Chen Hongkai said that at that time, the person in charge of project research and development was a young man in his 30s, and his blood pressure soared due to high pressure.
In the end, Tongxin Transmission successfully pioneered the "waste-free edge multi-directional hydraulic forging technology" in the industry.
In layman's terms, this technology can forge steel raw materials into the intended parts without waste. This technology can save one-third of the steel raw material and ensure better quality than its peers. On the one hand, it saves costs for Concentric Transmission; on the other hand, the stable quality wins the favor of customers.
After years of R&D innovation and experience accumulation, Concentric Transmission has formed its own unique R&D and technical system, and has formed unique technological achievements in the lightweight application and new material substitution in the development process of automotive drive shafts. As a result, it has also gained the initiative of the market and has been recognized by customers at home and abroad.
Tongxin Transmission is a special new "little giant" enterprise specialized in the Ministry of Industry and Information Technology, a national intellectual property advantage enterprise, a national high-tech enterprise, the company has a series of independent intellectual property rights in the field of drive shaft, and has built a provincial engineering technology research center, after years of continuous research and development and innovation, has mastered the key process of non-constant speed drive shaft.
Concentric transmission expands the "unique skill" to more application fields
Thanks to bold trial and error, innovative research and development products, Tongxin Transmission has maintained a stable growth trend in recent years.
Relevant announcements show that from 2018 to 2020, the net profit attributable to the shareholders of the parent company achieved by Tongxin Transmission was 15.2453 million yuan, 17.0668 million yuan and 29.6059 million yuan, respectively.
At the same time, Tongxin Transmission actively lays out the new energy market, and in 2020, it enters the supporting systems such as Geely New Energy Commercial Vehicle Group Co., Ltd. and Hyundai Commercial Vehicle (China) Co., Ltd., and becomes its supplier of all-round vehicle assembly.
In the field of drive shafts, in addition to covering trucks and buses, Tongxin Drive's products also have a rich product line in many fields such as ships, rolling mills, and high-speed rail construction and maintenance engineering vehicles.
In addition, Tongxin Transmission also plans to apply its advanced forging technology to more industries and realize technological innovations in multiple industry fields.
According to the prospectus of Tongxin Transmission, the funds raised by Tongxin Transmission will be used for three major construction projects: "300,000 sets of transmission shaft intelligent upgrading and expansion project", "annual output of 2 million pieces of new automotive drive shaft lightweight parts project" and "intelligent automotive drive shaft R & D center construction project". The construction of the above projects, in addition to greatly increasing production capacity, has a significant effect on the efficiency improvement of existing production lines.
"Entrepreneurship is a marathon with no end in sight, and our vision is to create a great company with a long-term foundation." Chen Hongkai told the top news Henan Business Daily reporter.
For him and Concentric Transmission, listing on the Beijing Stock Exchange is a new starting point.