Harmony Industry: growth through the ceiling, clear development goals

In the next few years, Zhejiang Tiantai Xianghe Industrial Co., LTD. (hereinafter referred to as "Xianghe Industrial", 603500.SH) will continue to focus on rail transportation business, electronic business and new material business, expand the product line, consolidate the main business, expand the business scale of the company, and enhance the market competitiveness of the company through new investment, extension mergers and acquisitions, etc. Break through the growth ceiling, and continue to advance to the goal of "one hundred years of peace" and "world peace".

Continue to consolidate the main business

Xianghe Industry in consolidating the main business at the same time, actively expand to other fields, and strive to expand the scale of business.

The year 2021 marks the beginning of a new journey to fully build a modern socialist country, the first year of the 14th Five-Year Plan, and the centennial anniversary of the Communist Party of China. According to the "New Era transportation power railway advance Planning Outline", "Notice on Promoting the urban area (suburban) railway to accelerate the development of opinions", "Basic electronic components Industry Development Action Plan (2021-2023)", Tang Xiao, general manager of Zhejiang Tiantai Xianghe Industrial Co., LTD., said, The company will focus on seizing the opportunities of the vigorous development of the two business sectors of railway and electronic components, accelerate the pace of strategic landing, and further consolidate the main business.

At present, the company will further expand its railway business by building metal parts production lines such as bullet bars, transforming from non-metal parts suppliers to integrated suppliers, and forming a complete supply capacity of track fastener systems. Strive for the "track fastener production base" project to put into operation as soon as possible to improve the company's production capacity. Overcome the impact of the epidemic, actively layout overseas business, enhance sales capacity, and strive for stable growth of high-speed rail business, and rapid growth of domestic and foreign urban rail market business.

Luanfu Finance learned that the "track fasteners production base construction project" of Harmony Industry has obtained the real estate title certificate, the project production acceptance has been promoted as planned, and it is expected to reach the pre-scheduled use state before the end of June 2021, and the production capacity of non-metallic parts of track fasteners has been further expanded.

With the acceleration of the pace of domestic high-speed railway and urban rail transit construction and the release of railway track renovation demand, the market space of the company's rail fastener products is increasing. The "Track fastener production base construction project" can comply with the growing market demand for track fastener products and improve the market share of the company's track fastener products.

In the electronics business sector, intelligent and digital transformation and capacity expansion of production lines are carried out to improve production efficiency and expand output. In the business to further consolidate quality customers, develop new customers, improve market share.

In addition, Xianghe Industry entered the field of new materials, invested in the establishment of Xiangfeng new materials, focused on the development of raw material technology, reduce the cost of main raw materials, and improve product competitiveness.

Expand overseas market

Actively explore overseas markets to open up future growth space.

Xianghe Industry said that the company invested in the establishment of a wholly-owned subsidiary in Singapore, research and development, production and sales of railway products, and strive to explore overseas markets, relying on the "Belt and Road" to accelerate the pace of going out. It is understood that the company has successfully developed a variety of rail fastening systems that can be applied to different scenarios and different line requirements such as high-speed rail, ordinary rail, urban rail transit, and provide a complete set of solutions including sleepers. Soon after its establishment, it successfully won the Kuala Lumpur Light Rail Line 3 project, laying a good foundation for the company's overseas layout, and opening up new development space for the company to go overseas.

The research institution believes that this means that Xianghe Industrial has changed from a non-metal fittings supplier of high-speed rail fasteners to a fastener system integrator, and has expanded its sleeper business to become a solution provider for track infrastructure construction. At the same time, it can enter the field of overseas and urban rail transit (municipal railway, intercity railway, subway, tram), heavy haul railway, ordinary railway and other fields, and the growth ceiling is broken.

Enhance one's own advantages

It takes a good blacksmith to make steel. After years of technology accumulation, Xianghe industry has obvious competitive advantages and its position in the industry has been further consolidated.

It is understood that Xianghe industry in the field of track fasteners, the company has a long history and excellent qualifications. Since the 1990s, it began to use the technical drawings of the former Ministry of Railways to produce non-metallic parts of ordinary railway track fasteners. In 2005, it began to participate in the joint research and development of China passenger special Line fasteners System of the former Ministry of Railways, and undertook the research and development task of the sub-project of "rubber and nylon fasteners system of passenger special line, trial production, process research and standard formulation", and has been deeply engaged in the forefront of the industry. Now undertake the research task of optimizing elastic cushion and nylon plastic parts. Actively cooperate with scientific research institutes such as the Academy of Iron Sciences and Zhejiang University of Science and Technology, and carry out research and development of track fasteners in the high-end direction of extreme cold resistance, high strength and heavy load. At the same time, the company participated in the drafting of the national standard GB/T 21527-2008 "Elastic plate of rail transit fastening system".

In the field of electronic components, the company as early as 1987 by the provincial identification and stereotyped production of rubber plug products. The company undertook the drafting of the industry standard SJ/T10242-91 "Technical Conditions for rubber sealing plugs for aluminum electrolytic capacitors". At the same time, the company has also developed the base for surface-mounted aluminum electrolytic capacitors, the electronic base for air conditioning compressor overcurrent protection, the vibration resistant base for automotive chip capacitors, and the terminal (horn) cover plate for capacitors. The company took the lead in drafting the CLP Association group standard "Base for Surface Mount aluminum electrolytic capacitors", which further consolidated the company's position in the industry.

In addition, Xianghe Industry has qualification certification barriers and first-mover advantages. High-speed rail infrastructure has high product quality requirements for suppliers, a long CRCC certification cycle, and a high capital investment to complete the certification. Up to now, the company has passed the CRCC certification of 102 series of products in 15 major categories of high-speed rail fasteners, common rail fasteners, passenger and cargo lines, heavy haul railways, and urban rail transit, and is one of the suppliers with the most complete certification of non-metallic parts and the strongest comprehensive supply ability in the industry. Non-metal parts of the track fastener are complete, with a long production history and advanced technology. It has passed the CRCC certification of nylon parts, rubber parts, WJ8 iron cushion plate and plastic parts earlier in the industry. At the same time, the advantage of Xianghe industry compared with competitors is that it has completed the supporting certification and supply of all 6 fastener integrators in the domestic high-speed rail industry, and the market share has risen steadily.

The quality of non-metallic parts of the company's track fasteners enjoys a high reputation in the industry. The products have been used in more than 40 national key railway projects such as YongTai-Wenzhou passenger line, Harbin-Dalian Passenger line, Dashixi Passenger line, Zheng-Xu Passenger line, Menghua Heavy haul Railway, Mujia Railway, Zheng-Xu City area, Zheng-Ji Railway, Lian-Xu Railway, Shang-He-Hangzhou Railway, Yumo Railway, Lixiang Railway, Dalin heavy haul Railway. The products first supplied to Yongtaiwen passenger dedicated line have been used for more than ten years, and are in good condition at present, meeting the requirements of safety, comfort and reliability of train operation.

The company's electronic components and accessories product quality has been highly recognized by customers, including aluminum electrolytic capacitors with rubber sealing plug products to form 12 series of products, 22 formula solutions, formula product structure is reasonable, complete variety, to meet the market mainstream customer application requirements. The company has established long-term and stable cooperative relations with well-known capacitor manufacturers such as Japan Guimigong, Nijikang, Qingdao Sanying, Tianjin Sanhe, Suzhou Lilong, Huizhou Lilong, Jianghai Shares, Fenghua Hi-tech, Aihua Group, Sanshui Riming and so on, which has brought lasting reputation advantages to the company.

Through technological innovation, master the core technology, and promote Xianghe industry to continue to become the industry leader in the future.

Clear development goals

For the future development goals, Xianghe Industry has a clear understanding of the chest, and strive to move towards the goal.

Tang Xiao said that the company combines "to seek progress with stability, cast Hongji; To treat people sincerely, create a hundred years of prosperity "development purpose, to create a" hundred years of peace and peace in the world "as the development goal, to track fasteners and electronic components and accessories as the main business, and strive to create two major markets at home and abroad, seize the opportunity of rapid development of the industry, to create the company's core competitiveness.

The company has determined the development path, and will seek development around the three major areas of electronic components, rail transit equipment and new material industry, give full play to the advantages of the capital market, and strive to quickly implement the layout, bringing new profit growth points for the company.

First of all, in the field of electronic components, explore the plate with the original product/customer synergy, through research and development, foreign investment and other ways, to expand to the field of chip components, power capacitors, new energy capacitors, semiconductor devices, electronic sealing products.

Secondly, in the field of rail transit equipment, first, the domestic urban rail transit field is developing in the direction of depth; Second, continued active deployment of overseas business; The third is to transform from non-metal parts suppliers to integrated suppliers, and enter the field of complete supply of urban rail fastener systems such as railway, city and subway. The fourth is to further expand and enrich the product categories, and enter the field of high-speed, heavy-duty and urban rail switches.

Third, with the foundation of the company's research and grasp of rubber and plastic materials for many years, through foreign investment, cooperation and other ways to enter the field of engineering plastics and synthetic resins, high-performance fibers and composite materials, thermoplastic elastomers and other new materials.

In order to maintain orderly development, Harmony Industry has also made full preparations, Tang Xiao stressed that it insists on continuing to build enterprises with culture. He said that since its inception, the company has always taken corporate culture as the cornerstone of corporate development. Since 1997, it has changed its name to Xianghe Industry. At present, it has formed a corporate culture system with "Xianghe" culture as the core and "century-old harmony, world harmony" as the vision, constantly leading all "Xianghe people" to struggle for it.