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Address by the Chairman

 

 

董事长高光凡The path of survival for the terrified

 

"Only the fearful can survive," a prominent banner was prominently displayed in Gao Guangfan's office. Thirty-two years ago, when he was entrusted to handle the "mess" of the Chuan Dong Chemical Factory, which was widely regarded as a disaster in the industry, Gao Guangfan described himself as if he were administering medicine to a critically ill patient, always fearing that an additional dose might make the patient worse and a reduction might make them better, feeling as if he were walking on thin ice. Even today, as the head of Chuan Dong Chemical Group, which has risen to the top three among domestic counterparts, spanning three regions of Chongqing, Guizhou and Guangxi, and possessing assets worth hundreds of millions of yuan, Gao Guangfan still shows no sign of complacency after achieving success. "We face too many crises, and all our achievements were forced upon us."


The enterprise has never ceased its efforts in technological transformation, product development, and expansion. Over the past decade, our phosphate products have undergone a process of growth from small to large, from few to many, and from single to diverse. Just as Mr. Gao mentioned in his report, the development of the enterprise over the past fifteen years can be summarized as small steps but rapid progress, with small steps but no stopping. There are technological improvement projects every year, product development is ongoing, and the output value has increased year by year, by 10% to 15% each year. The output value has increased fivefold. This is the concrete manifestation of the spirit of never being satisfied by Choudong. "Only the anxious can survive" means never being satisfied. Today is just today; yesterday is gone. Who knows what tomorrow will bring? Tomorrow is unpredictable, and anything can happen tomorrow.


The enterprise did not content itself with the current situation. It seized the opportunities and grew and strengthened itself. In June 1997, it merged with the Nan'an Chemical Factory. In April 1998, it merged with the Auto Repair Factory. In September, it merged with the Yangtze River Factory and formed a group company. This resulted in an output value of 165 million yuan and a profit of over 4 million yuan. The enterprise reached a new level. It was pragmatic and innovative, and boldly carried out capital operations. In order to promote the development of Guizhou, in 1992, the enterprise contracted and leased the Linshan Yellow Phosphorus Factory in Guiyang. This bold move found a glimmer of hope for the survival of the enterprise that year and also opened up a path for the enterprise's development in Guizhou. In 1993, the enterprise set up a factory in Huishui. Up to now, it has controlled three factories in Huishui, held shares in one factory, and purchased another factory outright. This has provided a way out for the enterprise's development in the field of phosphorus chemicals. Especially now, when the enterprise is facing environmental protection issues in yellow phosphorus production, it has taken forward-looking measures and made bold innovations.


A good product and brand are an intangible asset. Gao Guangfan, following the principles of fruit tree cultivation, transformed the single-product structure of Chuan Dong Chemicals over the years into a multi-product structure. This enabled the previous product not only to be the raw material for the next product, but also to be sold in segments.


The products of Chuan Dong Chemical Company are like a dancing dragon, with the head, body and tail all having their own roles. The brand name is like the dragon's eyes. It can create the greatest benefits for the company's development. Regarding products and brands, Gao Guangfan sometimes seems very stingy and even domineering. For instance, he stipulated that the main product "Qingsheng Brand" sodium tripolyphosphate of the company that received the "China Famous Brand Product" title could only be produced at the Guizhou branch factory. Originally, "Qingsheng Brand" was mainly targeted at the ceramic market, and specifying the branch factory for production was to prevent the products from being counterfeited. For different users, using different product formulas has become an unwritten rule at Chuan Dong Chemical. At its peak, the same product even had as many as 20 different standards.


"The environment has changed. The only way to survive is to adapt to it. Just like when the temperature rises, we need to find ways to cool down; when the temperature drops, we need to find ways to keep warm and enhance our adaptability." Gao Guangfan said. Focusing on "phosphorus", the company in western Sichuan has now developed more than a dozen varieties of "phosphorus" products. The enterprise's profits have been improving year by year. People can see that the growth process of Chuan Dong Chemical is the process of product development, which is like laying one layer of soil, consolidating it, then laying another layer of soil, and consolidating it again... A process of persistent upward growth.


In 1998, the sales revenue of Chuan Dong Chemical Company was only 80 million yuan. By 2007, the company's sales revenue had reached 800 million yuan, among which the foreign exchange income from self-exporting accounted for one-sixth of the total sales revenue. Without even having time to catch her breath, Gao Guangfan's gaze once again turned towards new heights. The road ahead not only requires hard work but also demands wisdom.


"Zhuang'er" Gao Guangfan had no choice. Gao Guangfan's "zhuang" actually represents a sense of concern and worry.


One suffers in adversity and perishes in comfort. The market economy does not tolerate any trace of sentimentality. Only by forging ahead bravely, overcoming obstacles, can one become the dominant and outstanding force. From expanding to other regions, mergers, consolidations to the distribution of employee benefits, Gao Guangfan has overcome one hurdle after another that others thought impossible to overcome. Why? Because he knows that no matter how great the difficulty is, one must confront it head-on. Today we may not have an answer, but tomorrow we will think and there will always be new ideas. Only through technological innovation, management innovation, and never being complacent can an enterprise have inexhaustible motivation.


The door to the success of Chuandong Chemical was thus opened again and again by Gao Guangfan! The future of Chuandong will surely be even more glorious!

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