How do small and medium-sized market capitalization enterprises grow? These entrepreneurs say so

Listed companies with a market value of more than 50 billion yuan have always been the main battlefield of active equity funds, but as institutional positions continue to concentrate on the head companies, the difficulty of obtaining excess returns from them is also increasing. Institutions that want to reap excess returns must open up new battlefields, and one of the ways to break the game is to find small and medium-sized market capitalization companies with greater growth potential.

So for listed companies, how to build and show their growth power? What are the growth momentum of small and medium-sized market capitalization enterprises?

At the "Innovation Growth, Economic Growth" CBN Little Lion 100 Index Press Conference held on December 30, 2021, the "Observation on the Growth Of Small and Medium-sized Market Capitalization Enterprises" roundtable dialogue discussed these topics, and Jiang Yuan, chairman and general manager of Pure Technology, Fei Zhi, president of GCL Energy, Xue Lixin, president of Jingrui Electric Materials, and Su Bin, general manager of Feikai Materials, participated in the discussion, and Xu Biao, executive director of Sullivan China, was the moderator of the roundtable.

What are the most concerned about business development?

Jiang Yuan said that the most important thing about pure science and technology along the way is the construction of strategic management and innovation capabilities. She said that financial resources, core technologies and the ability to obtain high-end talents are the three core capabilities that are most concerned in addition to strategic management capabilities. "The acquisition of the latter two core competencies is very dependent on resources, and going public allows us to get more resources."

Compared with pure technology, which comes from about 70% of its revenue in the field of semiconductor equipment, Jingrui Electric Materials and Feikai Materials focus on the field of electronic materials. The former focuses on semiconductor materials and lithium battery materials, while the latter covers the fields of semiconductors, LEDs and optical communications.

Xue Lixin believes that the development of Jingrui Electric Materials needs four elements. The first is the market capacity with high-speed development and scale; the second is the product with core competitiveness; the third is the team with wolf characteristics; and the fourth is the capital. "In addition, the policy dividend is a pair of invisible wings for enterprises."

Su Bin said that the long-term growth of listed companies needs two major elements, one is the diversification from the downstream industry, and the diversification of products in the same industry. As an advanced materials enterprise, this is a direction for future growth. Second, for a materials company, independent research and development and external combination should go hand in hand.

GCL Energy is a platform specializing in the development of mobile energy and clean energy under GCL Group, which belongs to the new energy track. Fei Zhi said that enterprises to achieve higher speed of development must have several characteristics: first of all, to find a good track, the track is not small to do; secondly, to innovate. Now the degree of homogenization is also very high, and it is necessary to have a good business model and scientific and technological competitiveness; again, the team and mechanism. Talent is the first resource, and mechanism is the fundamental guarantee for giving play to the role of talent.

What kind of innovation is effective innovation?

Innovation is an eternal topic of enterprise development, and technological progress comes from continuous innovation. So, what kind of innovation is effective innovation?

Jiang Yuan said that within zhi pure technology, innovation and research and development are managed as investments, and there are two main types: one is based on the research and development of existing product lines, and the other is the research and development of predictions, which supports the extension of the strategy. "Based on the investment point of view, the resource investment in research and development will be very cautious, and the market will be very effective."

"Jingrui Electric's approach is: first of all, to establish a clear benchmark product; second, to be absolutely close to the customer, any new product development and innovation is close to the customer; the third is personalization, such research and development is sustainable and scalable." Xue Lixin said.

Su Bin said that innovation requires a lot of investment, but this does not mean that innovation will necessarily have positive results. First of all, product innovation comes more from the needs and requirements of existing customer groups. In addition, we will allocate some fees every year to encourage R&D personnel to do something interesting according to their own ideas, and maybe come up with something we can't think of, of course, this also takes time to verify.

Meeting customer needs is also the first priority of GCL Energy's innovation. Fei Zhi believes that the effective innovation of enterprises is mainly reflected in three aspects, first of all, there is innovation in demand; second, it is necessary to have organized innovation; third, innovation also needs to have a foundation and support. "We can't rub hot spots, we must give full play to the advantages of the team and the existing business, so that we can take fewer detours and spend less costs."

and competitive strategies of overseas companies

Whether it is the semiconductor cleaning equipment that pure technology focuses on, or the photoresist focused on Jingrui Electric, it is facing competition with overseas enterprise incentives.

How can domestic enterprises compete with overseas companies that occupy an active position in the world? Jiang Yuan believes that China's semiconductor field equipment is good, the system is good, we must let users use domestic equipment, really can achieve yield, efficiency and overseas 1:1, in order to have a future.

"There are some areas that are already very solid now, and there are some areas where it will take some time. As long as the industrial chain is moved, the future of the industry will be full of hope. Just like downstream users give equipment companies a lot of opportunities, our equipment companies also give upstream parts companies a lot of opportunities to try, and slowly see the chain movement. ”

For Jingrui Electric Materials, first of all, we must increase investment, second, we must increase efforts to cultivate talents, and third, expand production volume and expand production capacity. Xue Lixin said, "Only with funds, talents and production capacity can we ensure that Jingrui can meet the rapid development of semiconductors in a series of aspects such as photoresist, and can it keep up with the international advanced head enterprises." ”

The existing material products, which account for about 70% to 80% of the revenue of Feikai Materials, are currently incentivized and competitive with large foreign companies. In this regard, Su Bin revealed that Feikai Materials has been committed to creating an open platform. "If you want to continue to accumulate and grow, you certainly can't close your own door, and you must closely integrate with overseas."

Su Bin said that this platform is a hardware platform, whether it is in the research and development of hardware investment, or production capacity supporting, is very conducive to the rapid landing and transformation of our cooperation with overseas material large enterprises.

GCL Energy has extensive experience in the competition of Chinese enterprises going overseas. The main experience of Fei Zhi is in three aspects, one is technology, the other is cost, and the third is service.