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HOdo ranks the 64th place among the top 500 private Chinese enterprises Zhou Haijiang delivers a speech to share HOdo’s experience

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On August 25, news conference on the top 500 private Chinese enterprises of 2016 was held in Beijing. During the conference, Wang Qinmin, vice chairman of the CPPCC and chairman of the All-China Federation of Industry and Commerce announced the list on the top 500 private Chinese enterprises of 2016, the top 500 private manufacturing enterprises of China, and the top 100 private Chinese service enterprises. With a total revenue of 50.3 billion Yuan, HOdo ranks the 64th place among the top 500 private Chinese enterprises. Besides, Zhou Haijiang, president of HOdo Group and Pan Gang, chairman of Inner Mongolia Yili,amongmang others, made a speech as representatives of private enterprises.     

Founded in 1957, HOdo Group has developed for nearly 60 years. It is one of the 120 pilot enterprises for deepening reform as designated by the State Council, and is the only trademark strategic demonstration enterprise in China’s garment industry as approved by the State Administration for Industry & Commerce of the PRC. Presently HOdo boasts such three famous Chinese trademarks as Ormosia, Swift Horse and HOdo and has obtained the ISO9001:2008quality management system certification and several Chinese name brands. Our pillar industries include textile and garment, rubber tire, bio-pharmaceuticals, Park development, etc. While strengthening real economy, HOdo has involved itself actively in asset securitization. So far three companies have been listed on the stock market, including the “HOdo Stock” transacted at Shanghai Stock Exchange in January 2001. In January 2014, the TaxusChinensis listed at the New Three Board and Jiangsu General Science & Technology Co., Ltd. that had just received reply on IPO are taking shape gradually and developing rapidly as an industry-finance group that features “integration of industry and finance and integrating IT application with industrialization” and adopts a development pattern totally different from that of the traditional one.

2016 is the first year of China’s 13th Five-Year Plan period. Currently there are many uncertainties in the present international economy and China’s economic development is experiencing the new normal. Against such backdrop, the innovation, transformation and upgrading for traditional private enterprises is a must. Faced with the risk of transformation, what will private enterprises do to fortify confidence and achieve a sustained sound development in the process of transformation and upgrading? Zhou Haijiang shared HOdo’s experience in exploration based on what has been done by HOdo.  

At present, a large number of private enterprises are confronted with such bottlenecks as diminishing laborer dividend, shortage of natural resources, low industrial competitiveness and excess production capacity. To address these issues, it is necessary for private enterprises to speed up transformation and upgrading, which is both the intrinsic need for corporate development and the need of economy and society when they have developed to a certain stage. Since 2007, HOdo Group has made elaborate effort in making three major changes, that is, to shift from the focus of production and operation to creation and management, from a traditional enterprise to an intelligent enterprise and from a domestic enterprise to a transnational corporation.

It is not horrible for enterprises to meet with difficulties in the course of development. What is most terrible is that these enterprises are uncertain of their development orientation in the future and lack of confidence for development. With the competition in a globalized economy, Zhou believed that private enterprises shall make the best of China’s new policy of encouraging economic transformation and upgrading and increasing supply to  lateral structural reforms and at the same time, speed up transforming “three-independent enterprises” and win out in the globalized market competition through “three-independent enterprise”.  

“Three-independent enterprise” is a new course of development being implemented by HOdo Group. For the development layout in recent years, HOdo, pursuant to the national policy and requirements for the supply to lateral reform, sticks to the development concept of “innovation, coordination, green, open and sharing” and has made elaborate effort in transforming and upgrading itself into an enterprise featuring independent innovation, independent brand and independent capital. Therefore, factor market depends on capital, product market relies on brand and innovation relies on self-development. As China’s economic development is experiencing the new normal, the “three independents” will give a new push to corporate growth.

Meanwhile, under the backdrop of regional economic cooperation and economic globalization, Zhou Haijiang suggested that enterprises must persist in the concept of win-win outcome from eight sides if they ever intend to achieve great progress. 

Zhu also made the following analysis. At first, competitions between enterprises concentrated on the competition of products and industry, and later expanded to the competitions of industrial chain. By now, competitions have extended to the ecosphere for the operation of the entire enterprise. Only more outstanding ecosphere can win out in competitions. This ecosphere aims at benefiting such eights sides as shareholders, employees, customers, suppliers, partners, government, environment and the society (community) through  development dividend.     

HOdo’s fulfillment of the concept of “win-win outcome for eight sides” gives a vivid expression to the development and construction of SSEZ. During project construction, the Group has been paying attention to achieving win-win outcome with all sides and to ensuring the interests of all sides. In particular, HOdo has made earnest effort in developing programs for public good for the local people and putting into place an ecosphere of harmonious growth. Up to now, SSEZ has become both a key project for the “one belt one road” efforts and a project winning popular support of the locality. Therefore, it has won great support and approval from leaders of China and Cambodia.  

General secretary Xi Jinping once said, “Plan, move and action according to the current situation”. Presently, China’s economy basically remains unchanged and is still in the period with chances of development. This has brought private enterprises with chances of development of all aspects. A growing number of fields that used to be monopolized by state-owned businesses will be available to private enterprises, so that the chances of fair competition are poured in. As a consequence, what private enterprises need to do right now is to accelerate transformation and upgrading by taking advantage of this opportunity and lose no time in standing out among other businesses during China’s reform and opening up. 

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