The hottest Taiwan funded enterprise Jinyi industr

2022-08-15
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Taiwan funded enterprises Jinyi industry: small screws "rivet" Daniel City

Taiwan funded enterprises Jinyi industry: small screws "rivet" Daniel City

China Construction machinery information

Guide: fasteners, commonly known as screws, this humble screw, is now made into a big industry by Cai Yonglong. Jinyi Industrial Co., Ltd., the largest fastener manufacturer in China, will land on the Shanghai Stock Exchange on January 26. The kingdom of screws transfers to the mainland. Cai Yong, 52, this year

fasteners, commonly known as screws, are now made into a big industry by caiyonglong. Jinyi Industrial Co., Ltd., the largest fastener manufacturer in China, will land on the Shanghai Stock Exchange on January 26

"screw kingdom" transfers to the mainland

Cai Yonglong, 52, is the founder and leader of this "screw kingdom". More than 20 years ago, he and his two younger brothers started a business in Taiwan, specializing in the research and production of fasteners, and founded the first company: Jinhe enterprise. With the rapid expansion of business, the three Chua brothers turned their attention to Malaysia and established Jinwei holdings. The prototype of "screw kingdom" is emerging

the booming economy in the mainland soon attracted Cai Yonglong's attention. In 1985, Cai Yonglong came to the mainland of the motherland for the first time. In 1995, caiyonglong decided to move his "screw kingdom" hub to the mainland to build a world-class fastener enterprise

he went a lot of places, and finally set the new plant site in Jiashan County, Zhejiang Province, at the junction of Shanghai, Zhejiang and Jiangsu. In November, 1995, Jinyi industry, with a total investment of 2996 and a distance of 20mm, started construction in Jiashan economic development zone

although Jiashan County is not an important economic town in the Yangtze River Delta, it has unique advantages, which is what attracts Cai Yonglong. Caiyonglong said that this is not the time to make money by making screws, but by making money by logistics. Jiashan is located at the intersection of Shanghai Hangzhou railway, national highway 302 and the Grand Canal. The most important thing is that the raw material warehouse of Jinyi company is directly connected with the Bank of the Grand Canal. More than 80% of the raw materials arrive at the factory by water, which greatly reduces the logistics expenditure of Jinyi

the two "brother" enterprises of Jinyi, Taiwan Jinhe enterprise and Malaysia Jinwei holding, are controlled by Cai Yonglong's two brothers respectively. Because they all produce fasteners and have the same industrial structure, it is bound to cause conflicts in the global market

to this end, Cai Yonglong and his two younger brothers signed a market segmentation agreement. The markets of Jinhe are Taiwan and Japan, while Jinwei holdings focuses on Southeast Asian markets such as Vietnam, Thailand, Indonesia, Singapore and the Philippines, while the newly established Jinyi aims at the mainland, the United States and Canada

"brothers, clear accounts, if their products want to enter the mainland market, they must also operate through Jinyi." Caiyonglong told the morning post

conclusion

the cost is low, and it shares the mainland, the United States and Canada markets, with huge development space

"super inventory" shocked peers

when global manufacturers tried to reduce production costs with "zero inventory", Jinyi went the opposite way and adopted "super inventory". In the factory of Jinyi, which covers an area of more than 2000 mu, in addition to the manufacturing workshop, there are two "abrupt" buildings, an 18 meter building and a 30 meter high warehouse. There are also six or seven such warehouses around the world. Tu Zhiqing, the Secretary of Jinyi industry, told the morning post, "there are more than 20000 kinds of screws in the warehouse at any time, each of which has a consumption of three months to one year, and can be supplied to the market at any time."

the "super inventory" of Jin billion showed its strength after the "Hurricane Katrina incident" in New Orleans in 2005. After the hurricane, it is urgent to restore the power supply system in New Orleans. Each required power screw weighs 1 kg. Buyers send orders to screw factories around the world at the same time, but all factories respond that it takes 45 days from production to delivery. However, after Jinyi received the order, there were 600 tons of power screws in the warehouse. The remaining 600 tons were produced at the speed of 1000 screws per minute with the factory machine at full power. Five days later, 1200 tons of screws were loaded into containers, and from Jinyi's factory, they directly took the train to Shanghai, loaded on freighters and arrived in the United States. The completion of huge orders in such a short time has amazed the industry

but there is no doubt that inventory is bound to occupy a lot of working capital. But in CAI Yonglong's view, it is not so. "If you are in a hurry to buy, I can deliver goods immediately here. Even if the price is a little higher, you can accept it." In addition, because there are a large number of raw materials in Jinyi's warehouse, it has strong pricing power. In the past, when prices rose, many competitors had insufficient supply of raw materials, but Jinyi's supply was stable. In 2004, the price of raw materials rose, but the net profit of Jinyi rose to 190million yuan

conclusion

unique vision, reverse operation, and benefit a lot

winning the high-speed rail "service" car

at present, there are more than 6000 fastener manufacturers in China, with extremely scattered production, annual output value of 30billion yuan, and steady growth. Although Jinyi is the industry leader, it accounts for less than 5% of the market, and there is still a lot of room for development in the future. Jinyi fasteners won the high-speed rail construction project, which is an important opportunity for enterprise development. Last year, Jinyi won the bid of 750million yuan for the high-speed rail fastening system, with 714million yuan for the signed contract. With the bidding of several high-speed railways such as the Beijing Shanghai high-speed railway in 2007, Jinyi is expected to win the bid of 600-700 million yuan

in addition, Jinyi company also entered the automotive high-end fastener industry. The listing plans to raise 818.1 million yuan. The investment projects are high-strength special-shaped and automotive fasteners. This project has been approved in 2005. At present, more than 200million yuan has been invested. Construction is under way and is scheduled to be completed in 2008

Caiyonglong, chairman of Jinyi industry, told that more than 80% of the high-end fasteners used in Chinese cars rely on imports, and less than 20% are made in China. The automotive industry has become a pillar industry of the national economy. It is estimated that the demand for automotive fasteners will be about 500000 tons by 2010

conclusion

the leading position of the industry is stable, and the future earnings will continue to be rich

risk tips

family enterprises turn to the mainland

whether winning the high-speed railway or entering the automotive fastener industry, Jinyi has put the future growth point on the domestic market, which is different from the twin-screw extruder previously committed to overseas markets, because it has less heat generated by friction, more uniform shearing of materials, larger screw conveying capacity It is obviously a change that the extrusion volume is relatively stable and the material stays in the barrel for a long time

the quiet transformation of Jinyi first comes from the pressure of RMB appreciation. At present, nearly half of Jinyi's income is overseas. In the first six months of last year alone, Jinyi's income was reduced by 10million Yuan due to RMB appreciation; In addition, the anti-dumping of Chinese fasteners by Canada and other western countries also made Jinyi see the great uncertainty of future overseas performance

but for Jinyi, the unfavorable factors obviously go beyond this. In terms of the market, the raw material of fasteners is steel, and the steel price has fluctuated greatly in the past two years, and has been rising steadily. Although Jinyi has a large inventory, it is not easy to control whether it can absorb the room for steel to rise. In addition, the state lowered the tax rate of export tax rebate at the end of last year and will further reduce or even cancel it in the future, which also affected the company's performance

in management, like many Taiwan funded enterprises, the Cai family controls Jinyi. Caiyonglong is the chairman of Jinyi, and his wife is a director of the company. He once served as the chief financial officer of Jinyi. Although his son caijinzhang is under the age of 30, he is already the general manager of Jinyi

conclusion

market risk is difficult to eliminate, and the nature of family business is difficult to change

related link

Jinyi industry -- it operated as a listed company 20 years ago

interviewee: caiyonglong, chairman of Jinyi industry

Shanghai Oriental Morning Post: the lottery result came out. The winning rate of Jinyi industry is 0.26%, and the frozen capital is 275.3 billion yuan. Institutions and shareholders are very enthusiastic about Jinyi. Is this result expected

caiyonglong: beyond my expectation, I thought there was 30billion yuan of subscription, but I didn't expect there was nearly 300billion yuan

Shanghai Oriental Morning Post: Jinyi is growing very fast. What do you think is its biggest advantage

caiyonglong: first of all, it has a large scale. When it first started, it did a very good job in export sales. This market has been developed by me in the past 20 or 30 years. Whether it is the American market, the European market, or the current domestic market, its share is quite large; Secondly, Jinyi has good quality and reputation, and fasteners are shipped quickly; Besides, Jinyi has no burden. It is a newly established factory. It starts from scratch. This is also its advantage

Shanghai Oriental Morning Post: do more Taiwanese enterprises investing in the mainland want to be listed on a shares

caiyonglong: there are many Taiwanese enterprises in the mainland, but related party transactions will be involved if they want to be listed, because Taiwan funded enterprises are generally invested by Taiwan's parent company, and the two sides are related party transactions, which is its biggest bottleneck

during this period, many Taiwan funded enterprises have asked me about my listing. Maybe in the future, many Taiwan enterprises will be listed in the mainland

Shanghai Oriental Morning Post: Why did you choose to list on the Shanghai Stock Exchange

caiyonglong: This is my dream to invest in the mainland of the motherland. My factory is in the Yangtze River Delta, so I don't want to list on the small and medium-sized board in Hong Kong and Shenzhen. Jinyi from the beginning is to be bigger and stronger, to be a brand. A few years ago, the stock market was not very standardized, but I knew it would be fine one day, so when I met the stock reform, I wanted to go up

my listing is not for lack of funds, but to expand the market, let the public know us, and make the company's image better. Although the company is listed, I still have to concentrate on running my business. The most important purpose of the factory is to make money. Listing is even bigger for me. In the past, no one supervised me. Now all shareholders can supervise me

Shanghai Oriental Morning Post: Jinyi is a family business. Will it adapt after listing

caiyonglong: all the management of Jinyi was operated by the standards of listed companies 20 years ago. The management of listing and unlisted is the same. If I leave today, the company will operate as usual and will not be affected

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